Why Bitcoin? Because we were always talking about Bitcoin, but we do have an important question to ask: is Bitcoin actually a safe place to be put in your money and what I mean by safe places is if their worst case scenario was to happen in your life and in The government, or with whatever, is going on politically or coronavirus all this sort of stuff. Where is the best place to put your money to keep it safe, and how does it compare to gold, and the reason I bring this up is because we obviously have the price of Bitcoin break below the 200 day and 50 day moving average. Despite having that Golden Cross, the price has pulled back quite substantially and there's a lot of speculation that it is, in fact Wales trying to actually trap us. Alors, bien sûr, the question naturally is is: is our money actually safe in Bitcoin or would gold actually make a better alternative when it comes to finding that safe place to store our cash? bien, the first thing that we have to ask is well: why would you need to actually protect your money? Why put it somewhere and have it in what we call a safe haven at the end of the day, governments control the banks, they control the production of money and we've, seen quantitative easing we've seen all sorts of dodgy things that governments have done with their monetary Policies that have actually led to a decrease in the real value of the dollar and other currencies as well.
A single dollar doesn't, buy you nearly as much as it would have done say sixty years ago now, stocks have been doing very, very well. En réalité, they've had pretty much a great time over the last ten years, but that bull run that they're going through can't last forever. There is, bien sûr, the risk that we will see. Stocks enter a period of decline that pullback is effectively inevitable. We also have to consider the political turmoil. I know it sounds weird to say it when we're talking about you know modern times, but we actually do have a lot of issues politically across the globe and when you think about what's going on in America, you've got Trump. This is what will probably be Bernie Sanders and Trump is a capitalist and then Bernie Sanders is a self proclaimed Democratic Socialist, but a lot of his policies are very, very left wing and monetary wise much more in line with full on socialism, we've seen the problems That they've had in Venezuela and believe me it's a lot more complicated than just the fact that they were socialists and that's. Why it's not working there, but it was a factor and even if there was outside forces, actually making things go wrong inside of Venezuela. The idea that if America was to go socialist people are afraid that the same thing could happen there. If Bernie Sanders was to win, most capitalists would actually be very worried about the threat that socialism poses against their money and they'll be looking for places to actually save their money and keep it away from the government.
On a, bien sûr, had the ongoing trade wars with China, and while they have reached their phase one deal, there is obviously gon na be a Phase two. Who knows how much turmoil will be caused by that. So we could even see further worries in the market with regards to the next stage of that deal. During the last time we saw the price of Bitcoin actually go up, because people were starting to read. The trade war was gon na have a big impact on the economy. There might be natural disasters that occur, or perhaps the corona virus is something that would actually be a reason for you to try and find somewhere safe. To put your money. Coronavirus has already had a massive impact on the world's economy, despite the fact that it is actually very well maintained and controlled at the moment. So if you imagine there being a real, proper break out of coronavirus, how much worse things could get, I mean we're already seeing stories about schools being closed about businesses having to shut down. There'S worries that factories in China aren't producing the technology and products that they were making for us over here in the UK and in America, and that this is gon na have a corn effect on our economies. So there is a real big threat there from this coronavirus to the last reason why you might want to look for somewhere to save our money is because of memories of what the 2008 crash looked like now, back in 2008, we didn't have Bitcoin.
It was that crash that gave birth to Bitcoin back. Then people were pouring their money into gold and those who had gold. They don't, if you guys, remember – or saw this a lot, but there was loads of gold. Pawn shops popping up and people were selling anything with a tiny fraction of gold in it to try and make money to get by, and that was a big issue here in the UK it was big business and lots of people were going around trying to find, As much gold as they could so there is definitely demand for gold during those times of crisis. toutefois, if we were to experience something like that again soon, the difference will be that we have Bitcoin now and we didn't have that in 2008. So what are the actual advantages of gold? I'Ll be up front of you guys. I don't invest in gold it's, not something I've looked at personally and it's, mainly because I go into crypto and I've been pretty happy in this space. But but there are definitely some actual positive reasons why you might want to invest in gold. First of all is to point out that there is lower volatility when it comes to gold price. There are not the massive wild swings that we see with Bitcoin and other cryptocurrencies as a long term hold. That would make gold more attractive to somebody who is actually just looking for something stable to put their money into.
Bien sûr, if you're somebody who's looking to trade, then that's what makes Bitcoin and crypto so exciting and lucrative to look at with gold. There is plenty of liquidity in the market and there are established exchanges and companies that will actually provide gold hold goats securely. For you and even send the gold out you physically, we have to remember that gold is a much more traditional form of hedging your money and has been used to facilitate trade for thousands of years. The other advantages of gold is the really understandable you can understand. What gold is we all see, we've all seen how it's used we've all seen it and know why it's valuable, or at least we think we know why it's valuable and so understanding why you would invest in gold is easy to do and it's not that difficult To convince people that gold is something good to invest their money in the fact that you can physically hold it and use it and it's used to make things like jewelry and it's used in computer electronic parts. And things like that means that there is actually another value aside from the one that we bestow on it now. An interesting thing that I found out while doing this video was the reason why we see so many rappers and apparently drug dealers who wear large chunky, gold and diamond encrusted jewelry. Now a lot of us will look at that and think that it's, a style thing it's a cultural thing, perhaps and that's why they're wearing all of it, but actually it has a much more practical use, and this article here actually explains it quite nicely.
So this article actually explains it really really well, and you can see here why drug dealers, rappers and pimps wear their wealth and it's so it's. It is partly a cultural thing, but the actual real reason is down to the fact that most of the time at least culturally, the idea is that these people have been doing things that might be illegal, so selling drugs or being involved in gang and some crime And a lot of the rap is kind of about that, whether those rappers actually put a partake in any of those things is another another issue, but for those people that are actually committing crimes, there's, not a lot of options when it comes to storing your wealth. Firstly, a lot of rappers and gangsters and stuff like that: won't trust banks with their money. Mais, bien sûr, the other side to that as well is that they know if they're arrested, then a lot of their stuff could actually be seized by the government and then sold off auction, and the government can actually take their wealth away from them. The interesting thing that I found from this article, toutefois, is that when a person is arrested in America, anything that you're wearing at the time isn't actually confiscated and sold it's actually put in a lock up box and is returned to you when you leave prison. So the idea here is that if you gets arrested, you'll be wearing a lot of your wealth on you and that wealth will actually be put into a box and kept at the prison until you've been released.
And then you actually still have a good amount of. bien, fun yeah, I mean I remember seeing some videos a long time ago, where some of these chains and stuff will wear 50000 and more so there's, definitely actually really kind of a clever idea that they're doing there know that I recommend anybody commits crimes, and does This as a way to avoid losing their money, but it is an interesting idea and in some ways so in some ways you can kind of see the practical uses of gold as a storage of welfare. Now Bitcoin does actually have some advantage now. Bitcoin does actually have quite a few advantages over gold in many ways and it's worth pointing out that both of them have their prices based off of supply and demand. Tout d'abord, gold can't be used as a currency. You can't just walk into a shop and use gold to buy stuff people. Won'T accept it as an example. I want to show you this funny video I found online, where this guy tries to other people, chocolate bars or a bar of silver, and literally people are just like it's your lucky day today, you win a free 10 ounce, silver bar pure silver bullion, or a Free Hershey's, King sized chocolate bar you'll take the chocolate bar who needs a 10 ounce bar of silver. I have a good day. They take the chocolate check that video out now you can't use Bitcoin, bien sûr, to buy everything and anything in every store, but there are places where you can, of course use Bitcoin and you could even use it in star now.
So you can even if you're crazy enough waste your Bitcoin on a coffee. So there is that option. Unlike gold. Bitcoin is very easy to store and it's very easy to actually transfer to other people. If you want to convert it into other currencies at the moment, that too is pretty easy. If you store your Bitcoin on a hardware wallet, then that too is incredibly secure as well. Bien sûr, if you leave it on in exchange than it is at risk of being hacked, it does seem like it's a lot more easy to actually hack an exchange than it would be to actually physically break into a vault and steal a load of gold. The other thing as well is the blockchain technology is gaining momentum and Bitcoin acceptance is going up. Bitcoin awareness is going up. This is new to our culture and it's new to our financial institutions, so it could be that we see things change over time. So now, if we take a look at the actual charts I'm, not going to do a deep analysis of Bitcoin versus gold on the charts but it's worth just taking a look at them to just see the similarities here now so we've gold I've got here from 2009 way up until now, that 2009, bien sûr, the bethe year of Bitcoin, and so I thought it'd be good to compare it across that timeframe. You see the gold did reach its all time high in September of 2011, and at the moment the price of gold is struggling to get through a very strong resistance level.
Here band of resistance, I should say between 1500 et 1800 in order for it to actually try again at its all time, high there of 1900. I want you to keep in mind this pattern here for gold. We'Ve got this very nice bullish trend here and then we've got some accumulation before we saw pullback and a bearish trend and now it's curved back up and trying to break through that resistance. So now let's take a look at the chart for Bitcoin and what do we see? bien, d'accord, it's, not the same timeframe, because we didn't see this parabolic curve really kick in until the start of it, which was about September 2016. But look at that pattern. We had the price of Bitcoin had up to its all time: high of 20000, we saw some accumulation, a bearish trend and then an attempt up again and this time hitting resistance. So if we go by the charts and look at the price action of both of these assets, bien, actually gold isn't, that much better when it comes to price performance, despite the fact that it is in fact, more established than Bitcoin. So something else, bien que, that we really do take into consideration when we're talking about Bitcoin versus gold is saying called the stock to flow ratio now stock to flow is basically, and I try to explain it the quickest way. I know how to you. It is not the scarcity of a commodity, so stock would be.
How much of that commodity is already available and flow would be. How much is actually produced in the case of gold stock is how much gold there is already in the market and flow will be. How much gold could be mined per year? The same applies to big grain. How many bitcoins are out there and available and how many bitcoins are likely to be mined to get the stock flow ratio. What you do is you just divide the stock by the actual flow number, so let's, par exemple, just say that there's, only a hundred thousand units of gold available in existence and the actual flow is a thousand units per year. bien, that would give it a stock flow ratio of 100, so it's the hundred thousand divided by 1000, same of course for Bitcoin. Maintenant, stock flow ratio is a way to tell how scarce and how valuable an asset actually is. If we actually take a look at this website here, which gives you the stock flow ratio for Bitcoin, you can actually see you can't see with my head's in the way and if I move the right way, I'll frame, I go. You see here as a annual stock flow of 25.4 gold, I believe currently has a ratio of 67, which means that it is far more scarce than Bitcoin at the current time. One thing to consider, bien que, is that we don't know how much gold there actually is in the world.
You know there could be that new technology is developed. That makes it easier to find gold, par exemple, and you might find that the ratio goes down because of that with Bitcoin, though we know exactly how many bitcoins there will ever be. So in that respect, finalement, bitcoin should overtake gold when it comes to scarcity. It'S. Également, really worth pointing out that, like on this article from Queen base digital gold scarcity in Bitcoin having's, it does say here that after the next having, we will see Bitcoin move much closer to the same stock to flow ratio, as there is of gold that very Soon, we could actually see Bitcoin become more scarce than gold, and another really interesting point here, bien que, is that silver has a stock flow ratio of just 22, so Bitcoin has already overtaken silver when it comes to scarcity, perhaps that's, why? All of those idiots from that video decided to take the Hershey's bar instead of silver baby. So in conclusion, Oui, d'accord, maintenant, gold is more scarce than Bitcoin and, bien sûr, people understand gold more than they do blockchain and Bitcoin as well. We are seeing a change in that day and obviously financial institutions are starting to get into crypto currencies and Bitcoin being the biggest of those as a Bitcoin maximalist. I would love to say that the older Bitcoin gets the more of a correlation we're going to see between bitcoins price and people wanting to protect their finances.
I do believe that right now regulatory reasons are actually holding back Bitcoin, but I do think that as it gets older and as it matures even further, we are going to see people use Bitcoin as instead of gold, especially for the fact that it is more convenient And quicker, and and obviously you can send it to different places and store it on a little tiny wallet. You couldn't do that with your gold right now, bien sûr, gold wins out, but I don't think it's gon na be the case forever and at the same time I think there is actually room for both. I think that you know if you want to invest in something that you can edge your money. You should never really put it into one asset anyway, so perhaps having a little bit of gold and a bit of Bitcoin wouldn't, be such a terrible idea anyway. Finalement, bien que, I do believe that Bitcoin will become the better option, and I think, if you put it this way, the generations that come after us well they're going to be more aware of Bitcoin anyway, and we'll probably see it a lot more differently than most people. Do right now, donc, Oui, in the fight between Bitcoin and gold, gold does win right now, but it is a waiting game. Finalement, bitcoin is going to be the winner and we'll be glad that we put our money into Bitcoin won't. We guys now. I hope you found this video helpful and, bien sûr, if you did please make sure you like and subscribe to the channel.
Comme toujours, this is not financial device.