In this video I discuss the benefits to using some cryptocurrency profits to purchase gold & silver to diversify.
Welcome back to CraveThatCoin
I’d like to discuss why I am using some cryptocurrency profits to purchase physical gold and silver. The coins you see in this video have all been purchased using Bitcoin.
Both the crypto and metals communities are full of very passionate people which is great but many appearing to be picking one side. Personally I feel most comfortable owning both crypto and metals as they have different pros and cons. To me both are alternative investments with a lot of potential as we continue to experience higher levels of inflation and get closer to a cashless society.
Bitcoin and other alt coins are on a upwards trend and while it’s impossible to know which coin will come out on top it’s almost guaranteed that blockchain technology is here to stay. I think the world will shift away from fiat to cryptocurrencies eventually but it’s impossible to know which coins will be at the forefront of that shift and those that will become worthless. As this market plays out we will continue to see major corrections, if you’re new to investing it can be very hard to stomach common 30% drops overnight. That’s why I personally take some of my profits out and put them into physical metals which are much less volatile and something that you can hold in your hand which isn’t inflated currency. I especially try and time my buys as Bitcoin reaches a new high as it tends to crash shortly after allowing the option to buy back into Bitcoin at a lower price.
The reason I like gold is it’s real money and was used as such throughout history, it’s stored energy in a metal that is both desirable and expensive to mine. As gold can’t be printed, is limited and is expensive to produce it’s a good asset to own as inflation rises. It also has some use in industry and is used vastly in jewellery. As a investment it’s highly liquid and stores a significant amount of wealth in a small space making storage very easy. I like to own gold as I have full control of it and it’s a insurance against a economic catastrophe and a hedge against inflation.
I also believe in silver for the long term. It’s used vastly in industry as it’s the most reflective metal known to man and is also the best conductor of electricity. This is just some of the reasons why it’s used in thousands of products including computers, solar panels, phones, wiring and medical instruments. While silver is relatively cheap now it’s expected to become more expensive as it is becoming more more difficult to mine while its demand is always increasing.
In summary I sleep much easier owning all 3. My portfolio now benefits from the proven track record of gold, the ever increasing demand of silver and cryptocurrencies potential to be the future of money with its blockchain technology. Owning all 3 also reduces the overall risk you’d get with investing fully into one or the other. For example a negative of owning cryptocurrencies is that more are being created every day and only some will reach widespread adoption, meaning there is a risk of a crypto portfolio becoming worthless. On the other hand this doesn’t effect silver as it has unique properties that can’t be replaced by any other metal. A risk of gold is that it has little use other than a store of value. This isn’t the case with many of the top cryptocurrencies which have specific uses.