Gold vs. Bitcoin: Which is the Real Currency? Analyst Fred Krueger Weighs In
Renowned cryptocurrency analyst Fred Krueger has made a provocative claim: gold is becoming obsolete, giving way to Bitcoin as the ultimate form of sound money. His argument underscores Bitcoin’s growing dominance over traditional stores of value in the global monetary system.
The Decline of Gold as a Monetary Standard
Krueger presented a compelling historical timeline to highlight gold’s diminishing role in monetary systems:
The Coinage Act of 1792 tied the U.S. dollar to gold and silver.
By 1862, the issuance of unbacked “Greenbacks” during the Civil War marked a shift away from gold-backed currency.
The 1900 Gold Standard Act attempted to stabilize gold’s role in the U.S. economy but faced global challenges:
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- Britain abandoned the gold standard in 1914, reintroduced it in 1925, and permanently abandoned it in 1931.
- In 1933, President Franklin D. Roosevelt’s Executive Order 6102 required Americans to sell their gold to the government, officially ending gold’s role as a monetary standard.
- The Bretton Woods Agreement of 1944 pegged gold at $44 per ounce but collapsed in 1971 when President Nixon completely untied the dollar from gold.
“The idea of backing your currency with gold makes no sense,” Krueger declared. “Gold certificates can’t be trusted, gold doesn’t travel, and it’s vastly inferior compared to Bitcoin.”
Bitcoin: The Future of Money?
Krueger detailed several advantages of Bitcoin over gold:
- Ease of trade: Bitcoin can be seamlessly traded across borders with minimal transaction costs.
- Secure storage: Digital wallets offer unmatched security compared to physical gold.
- Borderless transfers: Unlike gold, Bitcoin is easily transferable without logistical or regulatory hurdles.
“Gold can’t travel,” Krueger emphasized. “Nobody uses gold as a medium of exchange. That makes Bitcoin Lightning look good.”
A Bold Proposal: Ditch Gold for Bitcoin
Krueger even suggested that the United States should sell its gold reserves and invest in Bitcoin. Echoing Bitcoin advocate Samson Mow, he argued this would initially strengthen the U.S. dollar but eventually pave the way for Bitcoin to replace fiat currencies.
“Bitcoin is not just a better monetary system; it’s a necessity in the evolution of sound money,” Krueger asserted.
While his ideas remain controversial, they echo a growing sentiment in the financial world that Bitcoin could become a dominant global currency, leaving gold behind as a relic of the past.
This article does not constitute financial advice.
