WHY GOLD? WHY CRYPTO? HERE’S A SIMPLE ANSWER

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WHY GOLD? WHY CRYPTO? HERE’S A SIMPLE ANSWER

Gold is historically one of the best performing assets during inflationary periods. Most investors view gold and crypto as substitutes for one another in a portfolio, but could crypto prove to be an even more attractive asset than gold when inflation hits?

The current macroeconomic environment is highly conducive to rising inflation. The Federal Reserve is actively seeking to achieve 2% inflation and is currently purchasing $120 billion worth of treasury bonds and mortgage-backed securities per month in an effort to achieve this goal. This policy will continue until at least the end of 2023, according to Fed Chair Jerome Powell.

As a result, the U.S. monetary base has skyrocketed from $1 trillion to over $6 trillion in just a decade. The correlation between the monetary base and CPI indicates that inflation may begin rising rapidly in the next few years as this money starts flowing into the economy (see chart below).

Why Gold?

The answer in one word: inflation.

Inflation is the steady increase in prices, and the corresponding decrease in purchasing power of a nation’s currency. It’s a phenomenon that happens to every fiat (paper) currency over time, and it’s happening now. As the supply of paper money increases, each individual unit of paper money loses value.

In other words, it takes more dollars today to purchase something than it did last year or the year before. And it will take even more dollars next year to purchase it. That’s why we experience the phenomenon known as “cost of living increases”. The reason we experience that phenomenon is because our government keeps printing more and more paper money…

For generations, investors have looked to gold as a hedge against inflation and financial uncertainty. In an age where national currencies are backed by nothing tangible, gold becomes an increasingly attractive investment alternative. As a store of value, gold has no match…

Why Crypto?

Cryptocurrencies are digital or virtual currencies that use cryptography for security and are not controlled by any central authority such as a bank or government…

Many cryptocurrencies offer advantages over traditional fiat currencies…

Cryptocurrencies can be used for peer-

The idea of investing in gold has always been enticing. After all, it is the one precious metal that has maintained its value through the ages. Investing in physical gold can be a hassle, as you have to keep it safe and secure. Moreover, you have to pay for insurance and storage costs. However, there are easier ways to invest in gold today. One of them is by buying gold ETFs (exchange-traded funds). These are investment funds that track the price of gold and allow investors to buy or sell units in the fund. The biggest advantage of gold ETFs is that they offer liquidity, i.e., investors can easily redeem their investment whenever required. Also, since these are traded on stock exchanges, they don’t attract wealth tax unlike physical gold investments.

However, investing in cryptocurrencies offers an even better option! This is because crypto is an alternative asset class that combines the limited supply of gold with the speed and utility of digital currencies. And you can invest in cryptos with just a smartphone or a laptop!

Cryptocurrencies like Bitcoin (BTC) work as a store of value as well as a medium of exchange like cash or credit cards for payments. Cryptocurrencies are based on distributed ledger technology (DLT),

In the past, a person could buy some stock in a company and expect to receive dividends from their shares of the company. They would also expect that their shares would increase in value over time. There was a good chance that both of these assumptions were correct.

The reason for this is because the economy used to be based on hard assets, not paper money. In other words, companies used to have real value. If you owned shares of a company that produced oil, it was very likely that your investment would grow in value over time.

In today’s world, things are different. The economy is no longer based on real assets; it is based on paper money. It doesn’t matter how much money is printed; the value of the currency will always go down. This means that any investment based on paper money is doomed to fail.

This is why gold and crypto are such attractive investments: they are based on hard assets. Gold can’t be created out of thin air like paper money can; it must be mined out of the ground. Crypto also has intrinsic value because it takes energy to produce it (mining).

I write a lot about investing in precious metals and crypto currencies. To some people, this seems like a strange combination. After all, I can’t eat gold or silver, and I can’t pay for anything with Bitcoin.

But the reason I’m so focused on these two investment categories is the same reason why I have almost no money in stocks. It’s also the reason why I have almost no money in bonds, bank deposits or real estate.

Simply put: I don’t trust counter-parties to uphold their end of the bargain. If you take away nothing else from this web site, please understand that this is what drives me as an investor and saver of capital.

The world of Cryptocurrency is now at the point where you can’t ignore it anymore.

The main advantages of cryptocurrencies are the decentralized value, anonymity and security.

In the following blog we will have a short look into the history, the current situation and what to expect in the near future.

Cryptocurrencies are based on blockchain technology—distributed ledgers that are secured by cryptography, which is why they are also called crypto currencies. They allow people to make transactions without relying on a central authority or third party, like a bank or payment service provider. Bitcoin was the first cryptocurrency, but there are now more than 1,000 different kinds of cryptocurrencies—and new ones are created all the time.

Blockchain technology has multiple uses beyond cryptocurrency. It could be used to create decentralized databases for financial transactions, health records, supply chains and many other data management applications.

The two most common types of cryptocurrencies are Bitcoin and Ethereum (Ether), but there are countless others, including Ripple (XRP), Tether (USDT), Litecoin (LTC), Stellar (XLM) and EOS (EOS). Each has its own strengths and weaknesses. For example, Bitcoin is designed to be a store of value, whereas Ether is

The best cryptocurrency to invest in today is Bitcoin, followed by Ethereum. But of the 1,300+ cryptocurrencies, these are the 10 best cryptocurrencies to invest in for you in 2020:

Bitcoin (BTC)

Bitcoin Cash (BCH)

Litecoin (LTC)

Ethereum (ETH)

Binance Coin (BNB)

Tron (TRX)

Chainlink (LINK)

Stellar (XLM)

Cardano (ADA)

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