Case Closed: Bitcoin Is Digital Gold

Bitcoin and Gold have been trading pretty much hand-in-hand for the past few years, if you properly zoom out:

One thing to notice is that in order to get to this view, you need to be on a log scale (where a $10,000 move from 60k to 70k is easier than a $10,000 move from 20k to 30k).

Note that Gold's recent run has been from 2000 to 2300 (13%) while Bitcoin's have been from 40,000 to 70,000 (75%)

Why would these to trade together?

Here's a clue:

Government debt (and more concerning, the interest payments on that debt) is skyrocketing. That means more money printing and further debasement of the dollar relative to "hard" assets like Bitcoin and Gold.

Essentially, you can properly think of Bitcoin as the "digital gold" -- but with far more volatility and explosive upside potential. We think Bitcoin is superior to gold in nearly every way.

As ZeroHedge noted today, "Gold and bitcoin are conceptually joined at the hip because the value of both comes from their non-confiscatability by inflation, by bank failure, and – in the case of bitcoin – by state expropriation"

We are extremely bullish on both.