Gold vs Bitcoin's Intrinsic Value- Special Report
Part 1: Bitcoin Cannot Be Confiscated
“Andrew Bailey, Donald Trump and Charlie Munger are wrong. Bitcoin does have intrinsic value.”-
“The Intrinsic Value Of Bitcoin And Gold, Finally Explained”
Background
A relatively unknown (in the mainstream) but well respected research firm at GoldFix and other reputable places1 released a controversial report yesterday comparing Gold’s utility to Bitcoin’s. We were lucky enough to see a copy. That report is the topic for discussion in this piece. First a sample of their previous work
From the excellent Decoupling from Gold Killed the USD in the '70s.:
The real culprit of the 1970s stagflation was not the oil shock, but the shock that came from the August 1971 collapse of the Bretton Woods monetary order – the dismantling of the peg between money and gold, and the massive inflationary impulse that it unleashed.
In the above analysis BCA debunks the ‘energy crisis’ as reason for 1970’s inflation and offers Gold standard abandonment as the true culprit then.
We’ve read several other pieces by BCA recently (a second example footnoted2). While not agreeing with some of their conclusions it is difficult to find fault with their overall logic.
This very current Special Report is broken into three main sections.
The Intrinsic Value Of Bitcoin Is That It Cannot Be Confiscated
Gold’s Value Also Comes From Its ‘Non-Confiscatability’
Bitcoin vs. Gold Down The Road
Those sections will be presented here accordingly in 3 or 4 parts. No opinions or meta-analysis will be given on these next few posts. Please read this footnote3.
Here is Part 1.
Part 1: The Intrinsic Value Of Bitcoin Is That It Cannot Be Confiscated
BCA Research Special Report excerpt (All Emphasis ours)
Executive Summary
The intrinsic value of bitcoin is that it cannot be confiscated by the state, either through monetary inflation, or through bank failure, or through outright expropriation.