I try to signal the importance of dispassionately evaluating the benefits of different asset classes. We all have our biases and I'm the first to admit that I love the precious metal, despite the horror bear market they've been subjected to in recent years. That said, both gold and silver have just last week risen above their 200 day moving average.
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I'm also the first to admit that I'm happily watching my holdings of BTC, LTC, EOS etc . rise against the fiat junk that they're denomination in. I also love the utility, even considering the delays and high transaction fees now a feature of BTC.
The truth is that both the metals and the cryptos, the oldest and the newest forms of real money respectively, exhibit similar properties. I happened upon a great article today that highlights this observation. The following quote refers to the price of bitcoin...
But if you think US$8000 is impressive, consider that in Zimbabwe it traded at nearly US$13,500 as locals piled in trying to preserve their money in the troubled nation. Bitcoin gives them the double benefit of being impossible to confiscate and easy to move offshore.Throughout history gold and silver have played the role of real money as fiat currencies collapse, just as we are witnessing right now in Venezuela and Zimbabwe. Bitcoin is now joining those ranks, adding fuel to an already hot market.
Of course a natural reaction to any mention of Venezuela and Zimbabwe or other similar examples invite comments such as
...But we are in ‘the lucky country’ right? Such currency craziness could never happen here….
Well if you have the time, I really recommend that you make a coffee and digest this lengthy but excellent discection of the Australian economy. It should cast some doubts on the "that could never happen here" argument. Certainly people have said that in the past and they'll say it again. True money, in both its oldest and newest form are well positioned to protect assets as they always have.