Bitcoin: Not Gold, Just…Water? 💧

by

Markets

  • So, they called Bitcoin “digital gold,” eh? Turns out, it’s more like gilded…fool’s gold. 🤣
  • Old reliable Gold isn’t doing so hot against the rising costs either. A bit of a shock, wouldn’t you say?
  • Real interest rates and money supply are the true puppeteers. Bitcoin’s just learning to dance to their tune.

They whisper tales of Bitcoin as “digital gold,” a bulwark against the ravenous beast of inflation. Like some shiny trinket to ward off hardship. But these fine gentlemen at NYDIG, they’ve poked and prodded the beast…and found the shiny trinket is mostly air.

Their learned researcher, Cipolaro, spills the tea in his weekly missive: inflation? A fickle friend to Bitcoin’s price, at best. A phantom limb, really. The numbers don’t lie – the connection is weaker than a starving man’s handshake.

“We know the community likes to peddle this inflation hedge narrative,” writes Cipolaro, with a hint of weary amusement. “But alas, the data simply doesn’t support such romantic notions.” It’s a chorus of disappointment, a quiet sigh from the market’s intelligentsia.

And Gold? Don’t even ask. The venerable Gold, the historical champion of value preservation…it’s floundering too! Its correlation with inflation is negative, a twisted joke played by the market gods. Imagine – prices soar, and Gold sulks. The indignity! 🙄

Cipolaro observes this with a sort of grim satisfaction; it’s surprising that Gold behaves this way. As if centuries of tradition were merely a misunderstanding. Honestly, the audacity!

What does stir these metals into action? Real interest rates, naturally. And the flow of money…the lifeblood of the system. Gold has always been sensitive to these currents. Bitcoin, the eager student, is catching on quickly.

This new integration into the financial system has made Bitcoin’s relationship to real rates even stronger. It’s a lesson learned, a transformation witnessed. From a revolutionary ideal to…a slightly more sophisticated instrument. 🤷

NYDIG’s decree is clear: abandon the illusion! Stop clinging to the idea of Bitcoin as a shield against rising prices. It’s time for a reckoning, a sobering dose of reality.

No, Bitcoin isn’t protecting you from the cost of bread and petrol. It’s merely a gauge, a barometer of global liquidity. It rises and falls with the current, not with your grocery bill. A fancy weathervane, if you will.

“Gold hedges against real rates. Bitcoin…it measures the flow,” concludes Cipolaro, with the finality of a judge’s gavel. It’s not the revolution we were promised, is it? Just another reflection of the same old forces, dressed in digital clothes. A shrug, a sigh, and back to the grind. 💸

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2025-10-26 15:12