Are government, central banks, and fiat money the three biggest bubbles in the history of the world? I would suggest they are. 

The rise of private money (bitcoin) combined with the rise of China and India as economic empires is popping these bubbles. Against bitcoin, fiat is now burning like an out of control wildfire.

Within a year or two, it could begin disintegrating against gold in a somewhat similar manner. Whether that happens or not depends on whether a blockchain currency backed with gold gets widely accepted in the blockchain community.I predict that it likely happens.

Simply put, fiat is a barbaric relic and the younger generation isn’t interested in relics. There are almost three billion citizens in China and India.Many of them are obsessed with gold, and almost all of them respect it as the ultimate asset.

There are about 600 million Indian citizens under the age of 35. They are now getting a taste of private money with bitcoin, and they like it! Blockchain is newer than fiat.It’s technologically superior. Fiat is like a rotary phone, and millennials want to trade up for the newest iPhone. In the currency world, that’s blockchain!

Many analysts have noted the strong seasonal tendency for gold to rise from late December or early January until mid-February.

About 65% of all gold demand comes from China and India, and that demand increases exponentially with income growth.Incomes are growing, so Chinese New Year gold price rallies are intensifying.

The rally begins as Chinese New Year buying begins.It ends when that buying ends, which is in mid-February for 2018.

Note that China’s businesses (including gold shops) close for a week as the celebrations end.Commercial traders on the COMEX tend to buy long positions in gold ahead of Chinese New Year (now), and then short it as the demand begins to peak.

A huge number of savvy Indian investors will also buy gold ahead of Chinese New Year to get in on the action. The price premium in India tends to rise as that happens.