hey everyone welcome to my channel and welcome back to my subscribers this is bald guy money i am bald guy and today we are going to talk about gold and bitcoin's very special relationship and once and for all put to bed at least in my opinion which one of these two gurus peter schiff who is a gold maximalist or robert kiyosaki who is for a mixture of gold in bitcoin which one of these two gurus is right just remember none of this is financial advice and i would appreciate if you take a moment


right now take a moment right now to hit the like button really hitting the like right now helps keep me on youtube and get my material out to more people please take a moment now to do that okay so let's get started 2021 was a really crazy year with lots of inflation a booming stock market and two really awesome learnings when it comes to gold and bitcoin which performed like this during the course of the year and in my opinion these two charts prove a strengthening relationship between gold


and bitcoin that is developing that gives us key insights into which one of these two men is peddling fact and which one is peddling fiction and that is why this video is especially important because there are a lot of people who really can't make heads or tails of what's going on in the market right now but this simple analysis let's bring up the first chart shows the story of the relationship i've mentioned before that is getting stronger and it has major implications on how i will personally invest in 2022.


so i know this looks very complicated but let me just break it down in january 2021 tesla adds 1.5 billion dollars in bitcoin to their treasury which triggered a spike in bitcoin's price it also increased the status of bitcoin as a store of wealth and coincided with a sharp drop seen here in the price of gold as the price of bitcoin ran up to an all-time high elon musk even said himself during the b word event put on by arkhanvest that depreciation in the value of dollars being held by tesla was a driver to put


bitcoin on tesla's books confirming what the market thought back when he did it in the first quarter then after the first black line you see there is a curiosity i noticed in the summer when china cracked down on miners the price of bitcoin plummeted about 50 percent while again the price of gold climbed by 13 adding roughly 1.3 trillion dollars to the market cap of gold according to my estimates assuming that the total market cap of gold is around 10 trillion dollars what's funny is although bitcoin's


market cap dropped by about 500 billion dollars the entire crypto market cap dropped by 1.2 trillion dollars at this time eerily close to what gold added and is visible right here on this chart from trading view now coming back to our bitcoin and gold comparison to finish the year we see a big rally for bitcoin again triggering a drop in the price of gold until october where that trend reversed for a short period of time as both grew in tandem and i suspect that is because we finally broke the six


percent inflation level at least according to official numbers and investors were able to confirm at that moment that the temporary nature of inflation which was really the narrative of the federal reserve that that whole narrative was basically bull and that they should probably seek some more inflation hedging and since then you can see that while gold continues its modest trend upwards bitcoin is again on the downtrend and there are plenty of reasons for that from people taking profits at the end of


the year to lock in bonuses related to investing or to people realizing losses to offset gains on other investments but whatever the reasons are the fact remains let's bring up the next chart that bitcoin and gold only behaved the same way for this very short six week period of time meaning that their moves for the basically entirety of the year were inversely correlated which means that they behaved oppositely 88 of 2021. so as i said it's not a perfect correlation but a very strong one which


becomes even more evident when we do this okay so when we flip the bitcoin chart above the goal chart and see how they really slot into each other and this i believe clearly shows that between the two gurus robert kiyosaki who has advocated for some time that you should stack both gold and bitcoin versus peter schiff who says bitcoin is rubbish buy only gold that out of the two it's likely robert kiyosaki that's going to come out of this long term looking better than peter schiff so for my investing strategy this means


two very important things and let's bring those up on the screen right now number one it means in 2022 i will allocate more of my money into bitcoin as i see it offering the better return on investment in 2022. the second point is that i will hold my gold position as i believe it is probably the best asset to hedge against risk associated with bitcoin so if you're only a bitcoin person or if you're only a gold person i highly recommend you take a second look at this video take a look at the numbers i've


presented it and highly consider getting a little bit of the other asset for bitcoin holders this is to have an inversely correlated asset that can protect you in case of what is called a black swan event which is an unknown event that could crash the price of bitcoin in the future however unlikely we think that may be and the message to gold bugs would basically be to consider entering the digital era we are moving into and hedge the value of your gold in an asset that has yielded the best return of any major


asset since 2009 that said don't forget right now if you haven't done it yet drop me a like leave me a comment below tell me if you think peter schiff is right tell me if you think robert kiyosaki is right tell me if you think neither of them are right remember i am super active in the comments section i will reply to your comment with that i'm wishing you all a very happy new year filled with success filled with health and happiness take care of yourselves everyone ciao