- Joined
- 22 May 2020
- Posts
- 1,276
- Reactions
- 681
It is this point that I struggle with most and I don't have an answer to that.
But also, he only currency that is backed by gold, is gold itself. Hence why I have already acquired as much as I think is prudent... Perhaps even a little overweight.
But, I have listened to some pretty compelling arguments for it.
At the the end of the day, what's the upside, what's the downside... And what is a prudent allocation?
The downside is easy, as with almost any unleveraged instrument, particularly equities, it is 100% loss (assuming you don't exit beforehand).
But what is the upside?
This is a question that I am struggling to answer, despite the bullishness from some of the macro folks.
Complicating matters is the current macroeconomic situation, I don't think there is very much time to learn about and implement strategies to protect ones meagre cache of Pacific Pesos.
0kay... Well my personal view is that we will have a deflationary episode, before a strongly inflationary one. But that could be wrong we may just leave straight into inflation.
I'm just thinking that I should have a bet each way on that outcome. Yes, Gold and Silver.... But could there be more upside in the cryptocurrencies?
that's what I'm trying to figure out that's where I am trying to come to some sort of a half intelligent decision.
You can try to change a millennia of established thinking if you like.
Aside from the obvious monetary value of gold, it is used in highly advanced technologies; ask NASA where gold is used
So the industrial and jewellery applications of gold do not account for its current inflated value. 80% of the gold price is speculation due to its scarcity. Food for thought.
Mate; I don't care what Crypto does. Make a market backed by a hard asset, or don't. The Crypto market is just a penny in a pond; compared to the gold market.
Could gold go to $100,000 in the next 5 years ago. I stress that I like gold for all the reasons you probably like it, but short of some sort of super hyperinflation I can't see it.
Could bitcoin do that?
I really have no idea at all, honestly I just don't know. But there are a lot of macro economists who think that some sort of move like that is possible.
I struggle to understand why it should, but I definitely think that it could.
With great fear, I've waded into the crypto space... more than I'm really comfortable with, roughly split between bitcoin and ether, so nice to see some movement.Finally a breakout!
View attachment 106358
With great fear, I've waded into the crypto space... more than I'm really comfortable with, roughly split between bitcoin and ether, so nice to see some movement.
I've been trying get my head around all the defi projects as well (unsuccessfully so far), but there have been moonshots there too. Probably a young bloke's caper who can figure that **** out lol.
That's a point I struggled with Duc and why I have stuck to these, especially BTC. There are a fair few vids on Realvision on this topic from some pretty credible players, but agree with your point in general.You cannot compare crypto to gold/silver. No-one (to date) can create gold/silver. Anyone can create a new crypto currency. That makes crypto analogous to fiat. The trouble with creating a crypto 'backed' by gold/silver is that like Nixon in '71, you can simply de-couple.
jog on
duc
Agree on the fiat analogy, except that the amount is limited in a given one like BTC;That's a point I struggled with Duc and why I have stuck to these, especially BTC. There are a fair few vids on Realvision on this topic from some pretty credible players, but agree with your point in general.
Just showing what it is worth, nothing but if people believe in it, short term it has some value, long term, no value at all. 50% devaluation in less than a month and you think it will bounce back, lol.
How's bitcoin handling this coronavirus crisis? Not well I see, -40% and still falling.
View attachment 101269
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?