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Metals vs Crypto: Trends, Potential and Priority

Crypto vs PMs  

11 members have voted

  1. 1. Which has the strongest potential in terms of future gains and utility?

    • Bitcoin
      8
    • Gold
      3
    • Silver
      0


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Bitcoin took some hard knocks, its shown resilience through a trough and has now risen 124% in the last three months, with gold down 2% and silver down 7% over the same period.

Corporate and institutional adoption of BTC is also gaining traction.

Where does this leave the metals in terms of comparative investment potential and priority, for people and business alike?

Is a crypto 'stack' of equal clout becoming a necessary diversification for all conscientious PM stackers?

Is crypto an even better anti-central bank investment than physical gold and silver?

If the global trend continues to favour crypto over PMs the metals market could get smoked in terms of gains and utility in the short to mid-term.

What are the forums thoughts?

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I don't think this is a question of one or the other since I think you need to factor time in to the equation. In the short term I think there is money to be made riding the waves of crypto currencies. Long term I wouldn't want to be involved with them. I think the current crypto currencies are on borrowed time. I think it will only be a matter of time before governments and the powers that be step in, force through regulations and potentially create their own crypto currencies. I don't see value long term in any of what is currently available.

So short term - sure, ride the waves. Long term I'll stick with the shiny metals I can hold in my hand.

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25 minutes ago, AppleZippoandMetronome said:

 I think it will only be a matter of time before governments and the powers that be step in, force through regulations and potentially create their own crypto currencies.

Bitcoin is anti-establishment.   I can't see why anybody would use a government created crypto.

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1 minute ago, HelpingHands said:

Bitcoin is anti-establishment.   I can't see why anybody would use a government created crypto.

I agree which is exactly why I think the powers that be will eventually move against it. They can't have that.

The vast majority of the population will use whatever is quick and convenient.

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Bitcoin has a use for transfers but i'm not convinced on its long term use (despite spending a lot of time watching the markets).  Most of the benefits are isolated for small groups, particular scenarios.  There is no fundamental benefit for Bitcoin over cash or cards, for the vast majority of people, and the infrastructure gets in the way.  However cypto tech is going to have influence in the future. The emerging STO class (security tokens) is interesting, opening up investment to a wider audience.  More common will be use in online games for trading, proof of rarity for valuable items. 

One thing that always gets me thinking is the basic economics.  Currently value is being driven by speculation, if you actually use the currency there is an immediate selling pressure from people liquidating to local currency.  Unless there are entire supply chains, business, workers, shops and services, making a transition to Bitcoin/other crypto, it doesn't gain real use. I dont see how it does that, chicken and egg situation. One day everyone will wake up to the false premise of bitcoin having any store of value, the limited supply and deflation are contradicted by they many thousands of other cyprocurrencies.  May as well use leafs. 

But until that realisation, ride the train hopefully theres one more big pump ;)

Edited by Martlet

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We have seen that the banking cabal will do everything in their power to keep gold and silver suppressed and it's only going to stop in the event of a massive banking crisis.  Bitcoin on the other hand is being financialised to be traded as a commodity by the banking cabal and they can so so with relatively safely so it does look to have a future, they can pump and dump and fleece us mugs in a semi sandbox environment.  The only thing I am wary of is the energy used to create cryptos argument especially in todays "carbon responsible" narrative as it does seem massively excessive the more it goes forward.

If you had bought Bitcoin instead of gold at any time when it's price was below or level with gold you could have cashed out for 20oz of gold if you sold at the top, if crazy amounts of insitutional money does come in as is being touted it might just get there again.  I'd feel safer getting in then getting out though rather than hodling forever as the day always comes when they flip the narrative.

Edited by Scuzzle

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Bitcoin and all the others , over a 1000, are fiat. You have the promise that its worth something the same as fiat currency. and how much did it drop last year. I am old school so when bitcoin has been around as long as gold and silver has been used as money only then it will be money. If you do not hold it you do not truly own it.

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6 hours ago, HelpingHands said:

It's not fiat, that's the benefit.

That's meaningless to the average person, who gets paid on 30th, pays some bills, goes the shops, pub, day out, etc, and spends most their income within a month.  Cash/card comes out their pocket, their balance is altered, the technical back end is irrelevant to them. 

Besides it is fiat, without intrinsic value and created from nothing by a program.  Want more money, just fork a coin, see Bitcoin Cash, Bitcoin SV, and so on. 

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I suppose it depends on your definition of fiat.

 

Fiat money is government-issued currency that isn't backed by a commodity such as gold. Fiat money gives governments' central banks greater control over the economy because they control how much currency is printed. 

Bitcoin isn't government issued and the supply is fixed.

 

I've said it before that the debate shouldn't be gold versus bitcoin.   It should be everything versus the scam that it private bank issued currency.

As we know these private companies can create new money when issuing credit and charge interest on it.

 

If you believed a company was behaving immorally I assume that you would boycott their product.

I'm happy to have options that allow me to boycott the product of the banks.

 

As for the wild swings in bitcoin, well that can be a gift for moving between anti-fiat options.

Dec 2017    1 BTC  could get you 15 oz of gold.

Dec 2018     15 oz gold could get you  6 BTC

As of now     6 BTC  could get you 34 oz of gold

 

 

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Fiat is any form of money, govt or private that is only back by the confidence that individuals have that it is worth something. Script, gaming chips, currency and crypto's are all fiat. Roll the dice and buy bitcoin, you could make money but don't forget the truth in what you are buying. You might win. Good luck! Jim

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13 minutes ago, blindguy said:

Fiat is any form of money, govt or private that is only back by the confidence that individuals have that it is worth something. Script, gaming chips, currency and crypto's are all fiat. Roll the dice and buy bitcoin, you could make money but don't forget the truth in what you are buying. You might win. Good luck! Jim

In fairness fiat currencies are backed by more than just people's belief in them, they are explicitly tied to the states that use them, which means things like having shops etc legally required to accept them, having them as a recognised way of settling debts with the government through things like taxes and the courts. Cryptocurrencies have no such backing and are basically more like a commodity.

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39 minutes ago, blindguy said:

 you could make money but don't forget the truth in what you are buying

For myself it's not whether you can make money, it's whether it is money.

With a bitcoin debit card I can pay at the shops like all those paying with banker-currency.

I can decide and adjust my risk level whether I hold 90% Gold 10% Bitcoin, vice versa or somewhere in between.

 

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just like everything else there is a place for cryptos.

 

people need to look past the marketing and decide

for themselves what it means for them.

 

3 hours ago, HelpingHands said:

It should be everything versus the scam that it private bank issued currency.

this is far from the truth.

there's a lot more to it than the one sided opinions

of all those that are selling pm's, cryptos for their

own personal gains.

 

(notice how it's ok for one set of scammers to benefit

from selling you pm's cryptos etc. but it's unquestionably

evil for another set of scammers to sell you government

backed currency?)

 

HH

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the scam is that a crypto companies can take currency

from you(steal in broad daylight your hard earned currency)

in return for a token that's worth nothing.

the way mike maloney etc claims that banks charge

interest on currency created out of thin air is far from the

whole truth.

it's like saying the government is stealing from it's

citizens in the form of taxes? really? where do you think

the government gets the currency to pay for projects for

the community, day to day running of the country etc?

 

there is always two sides to every coin.

cryptos is no saint. the government ponzi scheme is a

ponzi scheme, but the crypto ponzi scheme is not?

 

HH

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19 minutes ago, HelpingHands said:

The scam is that a private company can lend you money they don't have and keep the interest as you repay it.

Imagine if a private company that wasn't a bank was allowed to do that  eg. Sports Direct.

Why give banks deposits? Buy shares in them instead 😈

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35 minutes ago, HawkHybrid said:

the scam is that a crypto companies can take currency

from you(steal in broad daylight your hard earned currency)

in return for a token that's worth nothing.

That's the creation of a new token which might be a scam.  That's not the creation of new bitcoin.

When banks create new currency as they issue credit they aren't creating Natwestmoney Barclayscoin HSBCtokens they are creating GBP.

 

35 minutes ago, HawkHybrid said:

the government ponzi scheme is a

ponzi scheme, but the crypto ponzi scheme is not?

Of course there are scams and ponzi scheme in the altcoin markets.

Im talking about Bitcoin with a fixed supply.

 

35 minutes ago, HawkHybrid said:

 

the way mike maloney etc claims that banks charge

interest on currency created out of thin air is far from the

whole truth.

 

 

https://www.bankofengland.co.uk/knowledgebank/how-is-money-created

Therefore, if you borrow £100 from the bank, and it credits your account with the amount, ‘new money’ has been created. It didn’t exist until it was credited to your account.

This also means as you pay off the loan, the electronic money your bank created is “deleted” – it no longer exists. You haven’t got richer or poorer. You might have less money in your bank account but your debts have gone down too.  So essentially, banks create money, not wealth.

Banks create around 80% of money in the economy as electronic deposits in this way.

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22 minutes ago, HelpingHands said:

Banks create around 80% of money in the economy as electronic deposits in this way.

 

banks might create 80% of 'currency' this way.

it's not money. currency is created to facilitate

trade. currency is designed to be able to flow.

money is very different from currency. an

increase in the flow of currency means nothing.

an increase in the flow of goods and services

would mean something. how you count the

numbers means little as long as you come to

the right answer.

 

HH

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