Cryptocurrency analyst Fred Krueger has made a bold statement, claiming that gold is on its way to becoming obsolete in the face of Bitcoin’s growing dominance.
In his speech, Krueger argued that Bitcoin will emerge as the ultimate form of sound money, despite gold enthusiasts and Bitcoin supporters sharing a common disdain for fiat currencies.
Krueger outlined a historical timeline to illustrate the failures of gold as a reliable monetary standard:
The Coinage Act of 1792 defined the U.S. dollar against gold and silver.
By 1862, the issuance of unbacked “Greenbacks” during the Civil War marked a departure from gold-backed currency.
The Gold Standard Act of 1900 was implemented in the United States, but its global usage fluctuated:
Britain abandoned the gold standard in 1914, reintroduced it in 1925, and abandoned it permanently in 1931.
In 1933, President Franklin D. Roosevelt officially ended the gold standard with Executive Order 6102, requiring Americans to sell their gold to the government.
The Bretton Woods Agreement of 1944 pegged gold at $44 per ounce, but collapsed in 1971 when President Nixon ended the gold standard entirely.
Krueger concluded: “The idea of backing your currency with gold makes no sense. Gold certificates cannot be trusted, gold does not travel, and is a vastly inferior form of money compared to Bitcoin.”
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Krueger noted Bitcoin’s advantages over gold, calling it a superior monetary system. Unlike gold, Bitcoin can be easily traded, stored securely, and transferred across borders with minimal friction.
“Gold can’t travel. It decays to a power law of 5.0 almost as fast as fiat. Nobody uses gold as a medium of exchange. That makes Bitcoin Lightning look good,” he said.
Krueger suggested that the United States sell its gold reserves and invest in Bitcoin instead. Echoing Bitcoin advocate Samson Mow, Krueger argued that such a move would initially strengthen the dollar but would eventually pave the way for Bitcoin to replace fiat currencies.
*This is not investment advice.
