Why Bitcoin Has Fallen Behind Gold & What Could Come Next

What It Covers

Vinny Lingham and Eric Fine explain why gold outperforms Bitcoin as reserve asset, detailing gold-backed stablecoin mechanics, central bank leverage ratios, and how fiscal dominance drives $34,000-$189,000 gold price scenarios.

Key Questions Answered

• •Bitcoin liquidity constraints: Building a $200 billion stablecoin backed by Bitcoin creates unhedgeable counterparty risk at 10% of Bitcoin's market cap, while gold's $34 trillion market enables institutional-scale hedging with government and bank counterparties.
• •Gold equalizing price methodology: VanEck calculates gold would reach $34,000 per ounce backing M0 money supply or $189,000 backing M2, weighting central banks by FX turnover with US at 50%, revealing UK and Japan as most overleveraged.
• •Emerging market positioning advantage: Countries hit by 1997 Asia crisis now maintain high real rates, independent central banks, and gold-backed reserves after experiencing 50% GDP declines, while developed markets increased central bank leverage through repeated forbearance.
• •Stablecoin reward mechanism: Zash uses patented system where gold price appreciation of 25% on $10 billion deposits generates $2.5 billion distributed to users via points, with downside hedged through puts converting gold to treasuries during crashes.