From the history of gold development #BTC

Explore the future development of BTC in the history of gold development, first share the data comparison of gold and BTC:

Market value when spot ETF passes

Gold in November 2004, about 2 trillion US dollars, global GDP 25 trillion US dollars.#BTCin January 2024, about 900 billion US dollars, global GDP 101 trillion US dollars.

Now the market value of gold has experienced nearly 20 years of ups and downs, and the market value exceeds 15 trillion US dollars.

And BTC, it is just beginning now. And everyone has witnessed the monetary QE and major events of the world's major sovereign countries in the past 20 years.

Now the liquidity is not comparable to 2004.

If it is just a simple calculation, if BTC reaches the current market value of gold in the future, then one BTC will reach 750,000 US dollars.

But the disadvantage is that the issuance of currency in each country is subject to its own gold reserves. As the global economy heats up, the limited amount of currency is difficult to meet the demand for commodity circulation. At the same time, gold is mostly concentrated in the hands of a few powerful countries. Coupled with the outbreak of the S1 season in 1914, countries have issued paper money due to armament needs, and at the same time restricted gold exports to protect their own gold reserves, which eventually led to the temporary collapse of the gold standard.

In 1922 after S1, the International Monetary and Financial Conference held in Genoa, Italy determined a limited version of the gold standard - the "gold exchange standard", which retains the basic currency status and final settlement function of gold, but replaces it with "paper money of various countries linked to gold" to perform the circulation, settlement and payment functions of currency, that is, allowing countries to issue paper money anchored by gold.

After the outbreak of the Great Depression from 1929 to 1933, countries announced the abolition of the gold standard. The main reasons for the collapse of the gold standard are: the growth rate of gold production is far lower than the growth rate of commodity production, and gold cannot meet the growing needs of commodity circulation, which greatly weakens the basis for the circulation of gold coins; the distribution of gold stocks among countries is unbalanced, and most of the gold stocks are controlled by a few powerful countries, which will inevitably lead to the destruction of the free minting and free circulation of gold coins, and weaken the basis for the circulation of gold coins in other countries; the S1 season broke out, and gold was concentrated by the belligerents to purchase arms, and stopped free export and banknote redemption, which ultimately led to the collapse of the gold standard.