Bitcoin and Gold Are Monuments to Irrationality Lionel Laurent

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But don’t mistake the recent market moves as expressing some kind of proof of the “sound money” status of gold or crypto. By Lionel Laurent | Bloomberg August 9 at 4:25 AM With worries about a currency war growing and bond yields collapsing, investors have reached for their usual haven of gold. The creed of “sound money” as a safe haven paints commodities that have a fixed supply as good, and sovereign currencies with a potentially unlimited supply as bad. With Bitcoin, of course, it’s easy to laugh off any claims to stability given its wild west status and mad gyrations in value over the past few years. Only this time it has a friend (as my colleague Tim Culpan wrote this week): Bitcoin.

Article PreviewBy Lionel Laurent | Bloomberg August 9 at 4:25 AM

With worries about a currency war growing and bond yields collapsing, investors have reached for their usual haven of gold. Only this time it has a friend (as my colleague Tim Culpan wrote this week): Bitcoin. 

Gold’s dollar price has risen 7% this month, Bitcoin’s by 18%. This apparent use of the two commodities as companion ports in a storm will be music to the ears of cryptocurrency boosters like Mike Novogratz, who has argued that “Bitcoin will be digital gold.” The self-justification of gold bugs and crypto fanboys are indeed starting to sound remarkably similar: That they both offer the prospect of sound and stable repositories of your cash at a time when central bankers are printing money like it’s going out of fashion.

With Bitcoin, of course, it’s easy to laugh off any claims to stability given its wild west status and mad gyrations in value over the past few years. But gold, the “barbarous...

Read the full article @ The Washington Post