Saw a pretty surreal scene today:

The head of the US SEC publicly stated that in the coming years, the entire financial system will shift towards Bitcoin and cryptocurrencies—he said it with absolute certainty.

Almost at the same time, our central bank released the latest data for November: gold reserves have risen to 2,305.39 tons, and this marks the 13th consecutive month of buying gold.

On one side, there's a rush into the digital currency track, and on the other, quietly stockpiling physical gold. The contrast in these scripts is quite interesting.

You might ask: why are there two completely different paths?

Actually, when standing at a crossroads, the most important thing isn't to rush to pick a side, but to first understand the logic behind each choice. No one is absolutely right or wrong, it's just different choices, which means different risks and rewards.

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01 | History Always Repeats Itself

Looking back to 1944, when the Bretton Woods system was established, gold was pegged to the US dollar, and the dollar was pegged to the world—that was the era when physical assets reigned supreme.

The rules were straightforward: you could exchange $35 for 1 ounce of gold, and the dollar's backing was entirely based on the gold bars in the vault.

By 1971, Nixon decisively cut the link between the dollar and gold, and fiat currency officially took over while the precious metals standard exited the stage of history.

From then on, the dollar no longer needed gold for support; its credibility came from America's military power, technological dominance, and financial control. Global trade was settled in dollars, and the central banks of various countries used US Treasury bonds as their reserves.