Is Real Currency Gold or Bitcoin? Expert Analyst Explains

Cryptocurrency analyst Fred Krueger made a bold statement claiming that gold is becoming outdated in the face of Bitcoin’s increasing dominance.

In his speech, Krueger argued that despite the shared disdain of gold enthusiasts and Bitcoin advocates towards fiat currencies, Bitcoin will emerge as the ultimate solid form of money.

Krueger summarized a historical timeline to demonstrate the failures of gold as a reliable monetary standard:

• The Coinage Act of 1792 defined the US dollar in terms of gold and silver. By 1862, the issuance of unsupported ‘Greenbacks’ during the Civil War signaled a departure from the gold-backed currency.
• The Gold Standard Act of 1900 was implemented in the United States, but its global usage followed a fluctuating course:

• Britain abandoned the gold standard in 1914, reinstated it in 1925, and permanently abandoned it in 1931.

• In 1933, President Franklin D. Roosevelt officially ended the gold standard with Executive Order 6102, requiring Americans to sell their gold to the government. The Bretton Woods Agreement of 1944 fixed gold at $44 per ounce, but collapsed in 1971 when President Nixon completely ended the gold standard.

Krueger came to this conclusion: “The idea of backing your currency with gold makes no sense. Gold certificates are not reliable, gold does not travel, and it is a much less liquid form of money compared to Bitcoin.”

Krueger, describing the advantages of Bitcoin compared to gold, characterized it as a superior monetary system. Unlike gold, Bitcoin can be easily exchanged, securely stored, and transferred across borders with minimal friction.

“Gold cannot travel. It is plummeting at nearly the speed of fiat currency to the power of 5.0. No one is using gold as a medium of exchange. This makes Bitcoin Lightning look good.”

Krueger suggested that the United States sell its gold reserves and invest in Bitcoin instead. Echoing the words of Bitcoin advocate Samson Mow, Krueger argued that such a move would initially strengthen the dollar but ultimately pave the way for Bitcoin to replace fiat currencies.