Listen, friend, you've probably noticed that both bitcoin and gold have been back in value lately. And it's not just a fashion wave or a hype. In fact, there are quite serious processes in the global financial system behind this, although they are not particularly trumpeted in the news.
What's happening? In fact, governments and central banks are once again starting to "inject" money into the economy — but they are not doing it directly, as during the pandemic, but as if "bypassing" it. Banks buy short—term government debt, and thus create the very liquidity - that is, cash in circulation. And when there is more money in the system, assets like gold and bitcoin usually start to get more expensive.
An example? Take the 1970s. Then there was a similar situation: there was a lot of new money supply, high inflation, and people were looking for protection in gold. Today, about the same thing is happening — only now bitcoin has been added to gold.
In the US, the government is actively spending money, but it mainly sells short-term debt securities that banks can easily buy. This allows you to quickly transfer money into the system. China, by the way, does the same thing: it pours in more yuan, but it doesn't hold its course, and its currency weakens relative to gold. That is, they also rely on real assets, and not on "paper" money.
The conclusion? Money in the system is gradually depreciating — so far it is not so noticeable on the price tags in stores, but it is already visible in the markets. Investors feel this and are shifting to gold and bitcoin because they are independent of central banks and government debt.
So, the question is: if even governments and large banks are looking for protection in hard assets, maybe we should also think about where it will be safer to keep our savings in the coming years?
