Bitcoin and Gold: Currency System Reform in the Post-Pandemic Era

Since 2022, the correlation between Bitcoin and gold prices has significantly increased, coinciding with the emergence of the "post-pandemic" new era. This article will explore why Bitcoin has the potential to participate in the major transformation of the international monetary system in the "post-pandemic" era. The core argument is that the current transformation of the international monetary system will unprecedentedly accelerate the deepening of Bitcoin's "gold" attributes, and the value of Bitcoin as a reserve currency will rapidly enter the mainstream view.

Looking back at the history of currency and the development of the international monetary system, precious metals, especially gold, have become the forerunners of human consensus—money—due to their scarcity, divisibility, and ease of storage. The monetary system of the modern world has evolved from the gold standard, through the Bretton Woods system, to the Jamaica system. Each system has faced its own dilemmas, such as the "Triffin Dilemma" and the problems arising from the hegemony of the US dollar.

The current international monetary system faces numerous challenges. The relative decline of the US economic strength, coupled with the continuous expansion of trade and fiscal deficits, has accelerated this problem during the pandemic. Geopolitical factors have also intensified the trend of differentiation in the currency domain. Although the international monetary status of the US dollar is difficult to replace in the short term, "de-dollarization" has become a consensus; it is merely a matter of time before quantitative changes lead to qualitative changes.

The future international monetary system may exhibit a trend towards diversification. The most likely formation is a multi-currency reserve system dominated by the US dollar, euro, and renminbi, with the British pound, Japanese yen, and Special Drawing Rights ( SDR ) serving as supplements. There are also viewpoints suggesting that a "external currency" system may emerge in the future, based on gold and other commodities as support, emphasizing the commodity value of real resources (especially energy) as the monetary backing.

In this context, the financial market shows two trending trading directions: first, gold has deviated from the traditional real interest rate pricing logic, with prices continuing to rise; second, Bitcoin has broken away from the traditional risk asset pricing logic, demonstrating a strong upward momentum.

These changes reflect that the global monetary system is undergoing profound transformation. Bitcoin, as an emerging digital asset, is gradually demonstrating its characteristics as a potential reserve currency. Its scarcity, decentralized nature, and ease of global circulation may enable it to play an important role in the new international monetary system.

Overall, the international monetary system in the post-pandemic era is undergoing significant changes. In this process, Bitcoin and gold may receive more attention and importance, and their positions in the future monetary system deserve our continued focus and in-depth research.