Bitcoin evangelist Samson Mow has opined that Bitcoin will eventually start “melting faces” once it regains its mojo. For now, however, gold bugs can have their relatively short moment in the sun.
“Let them have their moment”
Samson Mow’s comment lands at a time when gold is enjoying a historic breakout.
After years of grinding sideways or slowly trending up, gold has shattered major psychological resistance levels and hit new record highs.
For gold bugs, this validation has been a long, painful time coming.
Mow is referring to the period since 1971, when President Nixon ended the convertibility of the US Dollar into gold. This turned gold from a fixed currency peg into a free-floating asset.
In January 1980, driven by extreme inflation and geopolitical fear, gold parabolically spiked to $850/oz.
While $850 sounds low today, adjusted for inflation, that peak was massive (equivalent to roughly $3,400–$3,600 in mid-2020s dollars).
For nearly four decades, anyone who bought the top in 1980 lost purchasing power. Even when Gold hit new nominal highs in 2011 ($1,920/oz), it was still arguably below the 1980 peak in real terms.
Gold bugs had to wait until the massive inflation waves of the 2020s for gold to convincingly shatter those 1980 inflation-adjusted levels.
After the 1980 blow-off top, gold entered a brutal 20-year bear market. It fell from $850 to under $300.
For twenty years, stocks (S&P 500) ripped higher while Gold was “dead money.” This is the era that traumatized many precious metals investors and tested their conviction.
Central bank buying and global debt concerns finally pushed Gold into true price discovery mode, breaking $2,500, $3,000, and beyond. The yellow metal keeps hitting new record highs.
However, it remains to be seen whether BTC will be able to catch up with the yellow metal.
Source: https://u.today/waited-50-years-mow-brushes-off-gold-rally-predicts-btc-explosion
