We recently received a question from a reader asking for my thoughts on crypto.
He said we’ve been talking about gold a lot lately, the gold price, and how the price could go a lot higher. Shouldn’t we hold the same views on crypto, given everything that has happened with Bitcoin over the last year or so?
We ended up doing a whole podcast about this today,
We talk a lot about gold, and a lot about crypto.
To clarify, I’m not anti-crypto. In fact, I brought Bitcoin to our audience’s attention back in 2013, when the price was under $100.
But there are some differences to gold.
Right now, I think there are some major catalysts that could drive the price of gold much higher. It’s a matter of arithmetic, and we walk you through the math on it.
The other important thing is that while gold is at an all time high, gold related businesses have been in the dumps for a long time. And that’s a bizarre anomaly that is simply not going to last.
Conversely, that same dynamic doesn’t seem to exist with crypto related businesses.
And we talk about, in today’s podcast, Microstrategy, as perhaps the best example.
This is essentially now a Bitcoin holding company, with 478,000 Bitcoin, valued at around $45 billion. Yet Microstrategy’s market cap is almost double that.
So if the point is to buy Microstrategy stock as a proxy for Bitcoin, you’re actually paying double the price.
Versus with gold, we have the opportunity to pay less than two times forward earnings for gold companies that have an all in production cost of $1,500 per ounce— roughly half the price of gold.
So it’s a completely different dynamic, and we explore all this and more in today’s podcast.
We even talk about the Microstrategy convertible notes, and why it’s frankly wildly inappropriate at this point to even compare “crypto” and gold.
You can listen to the full podcast below.
