Opinion and reaction on matters in the crypto currency world.

It’s About The Denominator Stupid!

Whilst a picture can be worth a thousand words, this one is not.

Between 2012 and 2020 many more dollars became available: actually more than 4x as many. So, in equivalent dollars gold is worth a quarter of what it was, US$425, and Bitcoin is worth US$2,225.

This is the difference between a real asset based on scarcity and a real asset that has quantitative tightening (QT) hardwired in. The difference between 2013 and 2020, so far, has been worth 40% per annum.



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