Ever since the dawn of time, humans—at least a select few—have been on a quest to accumulate what some call hard money. Throughout history, as you can read in the book from the pic above, money has taken many forms, and at some point, some folks decided seashells were a solid means of exchange.
The human race has seen periods of financial stability and a few rough years when currencies flat-out failed. Take the Deutsche Mark after World War II, for example—it was literally worth less than toilet paper, and starving people turned back to bartering.
In 1913, the Federal Reserve System was created in America, and since then, the U.S. has lost control over issuing its own currency. A privately owned entity handles that now, and this model has spread across continents. Ever since, the U.S. dollar has steadily lost its value.
Pretty much every currency globally is following suit, which is why real estate and gold have been killer inflation hedges. Gold’s been on a tear over the past couple of years, literally doubling in price.
Plenty of cryptocurrencies haven’t matched that kind of performance in such a short time. Guess we’ve been rugged... Jokes aside, though, it seems the four-year cycles we’re used to are shifting—or at least the timing of the bull runs is.
Gold’s currently trading at around $4,200 an ounce, hitting as high as $4,380 in the past 24 hours. I don’t know if you’ve noticed, but lately, people—especially in the U.S.—have been lining up to buy physical gold and silver. Why, you ask?
Well, because they saw it on the news, not because they’re fed up with holding cash that keeps losing value, no matter the currency. To me, these are topping-out signals. It’s the same deal in crypto at every bull market peak—plebs rush to chase parabolic charts.
Smart money piles in during fearful times and extreme panic, like what we’ve seen in the crypto market over the past week or so. The masses, though? They’re not smart. Never will be.
Bitcoin’s been embraced by Wall Street and even at the state level, like in El Salvador and a few other countries. Bitcoin’s poised to soak up some capital once gold’s market cap takes a nosedive toward that $3,000-per-ounce target.
The same folks buying gold now will jump into Bitcoin and shitcoins once capital starts flowing—’cause capital always flows. It’s simple math. These types will buy the top in crypto over the next few months, thinking it’s the new money.
While Bitcoin holds legit value as a hard asset, most of the shitcoins we bet on are just vaporware. Time to stay sharp and not get greedy. Have a great day, everyone!