Gold/bitcoin ratio might become the single most important financial metric on earth.
Comparing the price of bitcoin to dollars when determining its value today is as pointless as comparing the price of bitcoin to a kilo of gold now, it tells you absolutely nothing.. yet..
In these early days those comparisons are irrelevant. Volatility and violent free market price discovery make them irrelevant. Bitcoin is like the earth back when it was still forming with meteorites raining down and volcanos everywhere constantly erupting creating an insanely volatile environment that couldn't harbour life, just like bitcoin can't yet harbour stable commerce.
Once speculation and store of value use cases have driven prices up to highs that represent the amount of wealth needed to facilitate global commerce life will emerge. Stability will form, skies will clear, the meteorites will stop, volcanoes will turn dormant, and the first signs of life will form. Commerce will emerge and evolve faster than you can imagine.
Then and only then will a ratio like the gold/bitcoin ratio tell us anything comprehensible.
However, over time it is possible that in a few decades from now the gold/bitcoin ratio becomes the single most important financial metric on earth, maybe even as important as fed monetary policy is today, because we sure as hell won't be measuring bitcoin against fiat anymore.
There will be no fiat, no fed speak, no target CPI rate, no interest rate manipulation, no repo injections, no fed minutes. There will be just bitcoin with its known supply and gold. The only value comparison that will tell us anything about the value of bitcoin over periods of hundreds of years in length will be the gold/bitcoin ratio.
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