Decentralized Assets Like Gold And Bitcoin Are Looking More And More Attractive

As I see it, decentralized assets have never looked more attractive than they do now. That includes gold, silver and Bitcoin, and you could also make the case for collectibles like art.

By “decentralized,” I mean that these assets are not issued by a central authority. They are no one’s liability. No central banker makes the decision to mint more gold or silver. No finance minister decrees that Bitcoin production be slowed or accelerated.

Investors have been diversifying with gold and silver for decades to limit their exposure to poorly executed monetary and fiscal policies. As I shared with you last month, investors bought more American Eagle and American Buffalo gold coins between January and September of this year than in any other such period going back to 1999.

I believe this is largely a reflection of Americans’ souring opinion of the state of the economy and the imbalance they see in monetary and fiscal policies.

U.S. Mint Gold Coin Sales at a 22 year high

For the same reasons, more and more investors are also diversifying with Bitcoin, an asset whose payment system is based on “cryptographic proof instead of trust.” That’s from Satoshi Nakamoto’s Bitcoin whitepaper, released 14 years ago.

Satoshi’s point about trust is key to the idea of decentralization. As users of government-issued fiat currency, we have little choice but to trust policymakers’ economic and financial decisions, which may significantly impact the value of our money.

U.S. Spends More On Interest Than On Its Military

Take a look at where monetary and fiscal mismanagement has gotten us. Total U.S. debt now stands at an unfathomable $31 trillion, or around a quarter of a million dollars per U.S. taxpayer. Debt accounts for over 121% of the entire U.S. economy. That means for every dollar the U.S. has, it owes a buck and a quarter (almost).