Evaluating the Purpose of Gold and Cryptocurrency in 2023 and 2024

Eric Balchunas, senior ETF Analyst at Bloomberg Intelligence, posted on X. He raised a discussion about the relevance of gold and cryptocurrency in 2023 and 2024. Balchunas questioned whether these assets served a purpose during this period, suggesting that if they did, it might imply that gold lacked significance due to its underwhelming performance. He emphasized the importance of acknowledging two key issues: monetary debasement and censorship, particularly in emerging markets. Balchunas pointed out that the monetary supply has doubled to $22 trillion over the past decade, highlighting the potential impact of debasement on the value of traditional currencies. Furthermore, he noted that without recognizing these challenges, it becomes difficult to understand the role of cryptocurrency as a solution. The discussion underscores the need to consider these factors when evaluating the purpose and effectiveness of gold and cryptocurrency in addressing economic issues.