We are not suggesting the dollar loses reserve status. But we do want you to consider that some countries now have more incentive to seek an alternative payments source to the dollar. Gold is not the only solution but a currency that has worked for millennia and is helping Russia today

Bitcoin presents an option to gold reserves and traditional currencies. However, with Bitcoin come other problems.

First and foremost, it appears bitcoin might be subject to seizure. Per law firm DLA Piper: On February 8, 2022, the United States Department of Justice (DOJ) announced a landmark seizure of 94,000 Bitcoin valued at over US$3.6 billion, the DOJ’s largest seizure of cryptocurrency ever and the largest single financial seizure in the department’s history.

Second, cryptocurrency prices or exchanges rates to other currencies are extreme. As we show in the SimpleVisor graph below, the price of Bitcoin has been cut in half twice in the last year. It has also doubled. Lastly, Bitcoin does not pay interest. That may not be a problem in the current low-interest-rate environment, but it will be in a higher rate situation.