According to Canaccord Genuity Group Inc.’s Digital Assets Quarterly – Q2 2020 report, BTC’s correlation with the S&P 500 spiked amid COVID-19 related uncertainty. Canaccord’s correlation research is interesting, because BTC is said to be “digital gold.” Being tied to equities and being “gold” at the same time is a contradiction though.
How is BTC correlated to the S&P 500 if it is ‘digital gold’?
BTC’s main narrative is to be “digital gold.” We already have exposed why BTC is not “digital gold”: while gold has had use cases in the past and still has them, BTC, with its lack of scalability among other reasons, has no utility whatsoever. If an asset has no utility, is it even an asset? However, gold is an asset for sure.
So BTC is not “digital gold”—that is crystal clear.
Canaccord Genuity Group’s Q2 report adds to our point though: if BTC was in fact “digital gold,” how could it be correlated to the S&P 500? Real gold is not correlated in such a way as described in Canaccord’s digital assets roundup.
It makes sense that real gold is not correlated to the S&P 500, it rather serves as a hedge. How comes BTC does seem to correlate with equities then?
Simple: BTC is neither real gold, nor digital gold and has absolutely nothing in common with gold. The whole BTC narrative about being “digital gold” and a “store of value“ is a lie to lure in more buyers. Typical Ponzi scheme.
What we can learn from Canaccord’s research is that BTC correlates to the S&P 500, but therefore cannot be “digital gold” or anything like that at the same time.
If BTC is not ‘digital gold,’ what is it?
BTC is a speculative vehicle. Nothing more, nothing less. Behind BTC, there is kind of a cartel busy luring in more buyers. That is the main reason why BTC adoption never really took off—nobody in the BTC camp is actually working to get BTC adopted in any real world use case. They are just trying to “pump the price” and that is it.
Most of the “BTC investors” would have never bought into BTC if they were told “BTC is pure speculation, come and buy!” From the cartel’s point of view, it was necessary to implement the “digital gold” and “store or value” narrative to deceive the ill-informed masses.
Furthermore, BTC has tons of problems right now and more are soon to come. The recent halving event of Bitcoin SV, BTC and BCH clearly shows why only Bitcoin SV will not be damaged long term by the block reward subsidy halving.
Look how the publicly traded, BTC dedicated block reward miners commit financial suicide. Those block reward miners do not understand the long term Satoshi Vision for high transactional volume in Bitcoin—it is about creating a Bitcoin economy, not about speculating on the dollar price of BTC.
While block rewards were just cut in half and will get another cut of this kind in four years, Bitcoin SV transaction processors will get subsidized by transaction fees and not depend on block rewards anymore. Halvings kill BTC and cannot harm Bitcoin SV.
I’ll repeat that real quick: BTC miners rely on block reward subsidies, which decreases over time, while Bitcoin SV transaction processors rely on transaction fees, which will increase over time.
Now choose your fighter! From an investor’s point of view, it seems way safer to be involved in Bitcoin SV rather than BTC long term.
It all comes down to the fact that BTC is not made for businesses and customers, but for the Ponzi scheme cartel behind BTC and Tether.
Unlike BTC, Bitcoin SV is made for enterprise usage at great scale, hence why businesses use Bitcoin SV and not any other digital asset. With its set in stone protocol, Bitcoin SV offers a stable platform to build onto and a reliable source of information for customers and merchants alike. A stable protocol and high transactional volume allow for an informational capitalistic Bitcoin economy to thrive.
Canaccord should pay attention to Bitcoin SV
BTC is basically, theoretically and practically a scam. Nobody uses it for anything else besides gambling and speculation, it therefore cannot last and serves no function in the economy.
To understand Bitcoin, you need to research trustworthy sources for information. We have laid out the truth concerning Bitcoin SV so many times already for free—whoever takes our information into consideration will profit and enjoy competitive advantages that may last decades. Listen to the signals or get left behind.
Bitcoin Suisse AG seems to get it, Unbounded Capital too. Others like CoinShares have it all wrong though.
If I were Canaccord Genuity Group Inc., I’d hire someone right now to research the economic concept behind Bitcoin SV instead of BTC, dive deep into the recent growth of Bitcoin SV, understand the transaction processing model behind Bitcoin SV and then I would serve my clients a cutting edge financial analysis on what Bitcoin really is about.
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