Why Central Banks buy Gold and Wall Street buys Bitcoin and Ethereum.

Not living in the United States.

Although I'm no US citizen, I think the world is shaped by what the United States decides, and during the 2024 Presidential Elections, the most important decision will be made. I have seen a sharp divide in the United States, and Donald Trump did his part. He leads by an old strategy: divide and conquer. Enough about Trump. Biden stands for the continuation of American policy, both domestically and abroad. His predictability is a haven of stability compared to the alternative, chaos. Complete chaos.

What is really at stake? Leading the 21st century.

1944.

We need to travel back in time to 1944. This moment in time was incremental in shaping our future, as world leaders decided to embrace the US Dollar as the new global reserve currency. It needs to be stated: European leaders wanted a US Dollar fully backed by gold because they feared the printing press and the inevitable inflation it would create, were the United States ever to abuse this power.

Overspending and Inflation.

And it didn't take very long: the US Military Complex was financed by the printing press to kill people in Vietnam. The European leaders started demanding gold for their US Dollar trade surplusses and the United States saw its gold reserves dwindle. Henry Kissinger, traveled to the Saudi Kingdom after President Nixon temporarily halted the convertibility from US Dollars into gold to stop the speculators. He was on an important mission: to stop the US Dollar from completely collapsing. With the guarantee that the Saudis would only sell oil for US Dollars, he succeeded in creating a stable and global demand for US Dollars. This deal, brokered by Henry Kissinger, now deceased, is called the Petro-Dollar.

US-China Deal.

Great During the same period, the 1970s, the United States and China made a mutually beneficial deal: the United States would use its deep liquid US Dollar markets and capitalism to build up China: what followed was an exodus of American jobs and technical know-how towards Beijing. Beijing flourished, on behalf of the American worker, as the country was flooded with US Dollars, jobs, and free Western technology.
To meet its part of the deal, China would give its USD trade surplusses back to the American Government by investing them in US Treasuries. Now there was a trade balance between the two nations. This ended when Xi Jinping became the new Chinese Leader. He decided to turn his back on the United States and invested China's USD trade surplusses in the One Belt One Road: a Chinese Infrastructure Project reuniting the old Silk Road.
This has slowly been eroding the status of the United States as the world's single hegemon as China used the United States for access to US Dollars and then invested it in its progress. All came to an unraveling when President Donald Trump went on a tirade and trade war with China. What we're experiencing now is extremely dangerous. As the United States, under President Trump, turned inwards, no longer interested in being on top of its game internationally, the vacuums left behind were quickly filled by the world's most dangerous types.

The Take-over.

The Taliban took Afghanistan, Putin took parts of Ukraine, and the Middle East is on fire as several factions are coming together to fight the United States' strongest ally in the region: Israel. These conflicts are typical given the backdrop of deglobalization and the rebound of confrontation. With nations like China and Russia openly fighting to dollarize our world, every country needs to rethink its financial architecture and figure out how to protect itself against a possible collapse of the world's financial system, still based upon the US Dollar. And positions are being taken.

Central Banks are buying Gold.

Central Banks have therefore started a gold-buying frenzy to fill their vaults with the shiny metal. After all, all they know is that in human history gold was always needed to start a new financial system and credit cycle in the event the previous one collapsed. But what are they missing?

Wall Street is buying Bitcoin and Ethereum.

Wall Street, and its most important asset managers, like Larry Fink, have openly started to support the Bitcoin revolution, as they believe the old way of doing things did its job, with a strike of about 90 years of successfully leveraging US Treasuries. This has led to an internal confrontation between the regulator, the SEC, which supports the central bank, and the cryptocurrency generation, which has had it with centralized power.
Who will win? I believe strongly that not the politicians but the smart money will win, as they typically own the politicians. Central Banks in itself aren't innovative, they solely rely on the private industry for innovation. Blockchain and AI are surely going to fulfill an essential part in the upgrade of the Western financial architecture and Bitcoin will be the backbone, the anchor.
Besides Bitcoin, Ethereum will be the predominant blockchain protocol, used to tokenize real-world assets. And maybe Solana can be used as a currency, given its recent spike in popularity, its user-friendliness, and high transaction throughput. For those who don't yet understand it: I'm sorry, I can't give it to you any more clearly, can I?
To understand the alternative to a gold-backed financial system and the Bitcoin-cryptocurrency alternative, read my article: