- Being impossible to transact in bitcoin in China will certainly make it less attractive and may pressure bitcoin prices quite a bit further, compared to where they settled last week.
- If inflation spikes further than nominal interest rates rise, that pushes “real” interest rates further into negative territory, which is now helping gold bullion.
- I think a hypothetical short bitcoin/long gold bullion pair trade would produce superior returns over the summer, as I am not convinced that either bitcoin has bottomed or gold has reached its intermediate-term return potential.
For further details see:
Sun Tzu Strikes Again, Blockchain-Style