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Vinny Lingham, a well-known entrepreneur and investor, brings attention to the rising global M2 money supply as the dollar weakens. In such a landscape, he states that foreign governments are actively printing more money to keep their exports to the U.S. competitive.
With this increase in liquidity, central banks are choosing to buy gold rather than exploring digital currencies like Bitcoin. According to Lingham, this situation showcases reflexivity, where the actions of governments are influencing and being influenced by economic conditions in a loop-like behavior.
Lingham’s perspective on central banks favoring gold over digital assets aligns with his previous examination of gold's enduring appeal, particularly after a comprehensive analysis of Bitcoin. His views further coincide with earlier commentary on gold’s status as the least correlated asset during periods of crypto market pause, reinforcing the metal’s unique position in uncertain financial climates.