Gold has now fallen sharply below $4,500, marking its biggest weekly fall since 1983 to around $4,420, described as the lowest price this year.
This is a dip by over 20% from its all-time high, which some market watchers are already calling a bear market move .
A few weeks ago, I argued that gold-backed stablecoins are being misframed in crypto.
The core issue was never whether gold is valuable.
The issue is that gold is not a stable unit of account, and when the underlying commodity sells off, the “stablecoin” sells off with it.
That risk is no longer theoretical.
