Why gold and silver are better than cryptocurrency.

in cryptocurrency •  8 years ago 

Why gold and silver are better than cryptocurrency.

My personal opinion about the whole debate of which is better precious metals or crytocurrency is that everyone should own both with a larger portion in precious metals. The way I see it is you should be your own central bank, a central bank has a currency that they control and a certain amount of reserve assets. Their currency flows around the economy were ever they need it to work for them, which is crypto in our case which is under our control. For your bedrock reserve it should be a tangible asset like gold and silver lock away in storage for when it is needed, just like insurance. Just like insurance it is a good idea to buy before it is needed, otherwise when you need it, it won't be there at your convenience just like a insurance policy. The reason I like gold and silver better than crypto is when the next crisis hits it's going to be massive. Where will you get your hands on physical cash if they close all the banks as they did in 1930. Even if you can get your hands on your cryptocurrency it still won't be readily accepted by the majority of vendors during a financial crises which could be just over the horizon, we are just not ready to move to a crypto economy.

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Got some bullion?

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I've listened to so many arguments. You are correct. a person should own both. But silver is probably the best because it is more divisible and lighter weight than gold.

hi if you were in venezuela now and had just 1 ounce of silver you could feed your family for a month.

Well, it used to be like that a couple of years ago. Currently is not like that. The salaries are very low but the prices are very high compared with the wages. Food prices are almost like international prices.

really? in about to invest my tax return into PM and crypto.. first time.. maybe about 5g AUD. how would you spend it? bulk 1oz?

Me personally, I would buy 10 oz or 1kg silver bullion bars, they have some of the lowest premiums, no taxes and has the greater potential returns over the long term. Cheers

Digital currency in my opinion is not as safe an investment as gold or silver. I do see that the crypto currency is a viable alternative, but safety to me is "in my possession."

I understand that bitcoin can be removed from the system and stored in a paper wallet. I just have a difficult time seeing it being used if we have any long term power outages, cyber attack or other unforseen issues.

hi i think if there is someone between you and your assets you have more risk of losing it.

Agreed! I am open minded and have been tempted by this crypto currency stuff enough to dip my toe in the crypto market with steem. Best luck to you my friend!

You are so right, I love Crypto currencies, but at the end of the day Silver/Gold are real Physical/Material elements, Crypto currencies are not, if I had to choose between Silver/Gold or a Crypto Currency - it would be Silver/Gold, again because it is REAL, but I choose to get both, my advice would be make sure you have some physical Silver or Gold before you buy any Crypto Currency.
Great Post

Like Neoxian said, get all 3. Gold and silver currently act more as a reserve. There's a lot of money to be made with cryptocurrencies for the next few years. I think you just need to be smart and move profits from crypto into real assets as you can.

Is it just me? with everything going on with crypto currencies, I get the feeling, Silver is getting ready to make a jump? If your wise enough to hold Silver, then your smart enough to have some Crypto's.

HI, Thanks for your response. Yes for me silver is my preferred long term storage asset.

That's why i think steemit is awesome, you get your exposure to crypto for free and pour your spare toilet paper into metal. what could be better. cheers

God Bless you silverbug - I couldn't agree with you more, we will certainly speak again.

Couldn't agree more.

Thanks for your response. cheers

I love gold, silver, and crypto-currencies. They all have a place in the future.

I don't disagree with your comment just make sure your reserves are stored for the future and don't worry about the paper price.

I regard gold/silver as the the ultimate form of money. However, when it comes to transferring money across borders, cryptos are pretty tough to beat.

Hi there, I agree with you on the crypto, there is definitely a place for them in the future, I'm just not sure what form they will take . Have you hear of a company called goldmoney, they turn your gold into digital form so you can move overseas and take your gold with you.

I've got a good position in silver and just starting to put some funds into the crypto currencies...a very diversified portfolio is important in these interesting times

Hi don't forget to diversify a little into gold. Or platinum might be a better choice at being about $300 dollars cheaper. But i do agree silver by far will be the star performer in the future. IMHO
Thanks for the comment

Hi , thanks for the thought on platinum, i would not really have thought about it..i do have a little gold, it's just not as economic for me to buy over silver..i will look at platinum this week.

hi, just a quick note on platinum, if you think silver is volatile you should see platinum. It is a tiny market and has been pounded, but i think there is very little downside risk. The long term though looks spectacular.

Interesting article. Thank you for posting!

Hi, Thanks for the interest, Keep an eye out for me, I'm just getting started. Cheers mate

oh yea, got me some bullion, Silver, silver, silver. Dont forget about mineshares!

hi Shares are good but always remember there is someone between you and your gold and silver.

Totally agree. The way I see it is, at some point there will be a major rush into Gold/Silver causing a massive physical shortage. Once people realize they cant get their hands on bullion i think there will be a window were mine shares explode way beyond their real value. This is only possible of course if mines aren't nationalized. But hey why not throw a few hundred US worthless paper dollars at some penny stocks that could see massive gains.

spot on, only bet what you can afford to lose when playing in the casino but you might just hit the jackpot.

At the bottom of it all, money is what people believe to be valuable. That goes for Bitcoin as well as for gold or paper money.
The good thing with metals is, they cannot get declared invalid. Paper currency is depending on the backing by a government - which is the quickest way to doom, as history has shown. Crypto currency gets its credibility by being independent from politics plus the fact that it cannot be multiplied. The later, however, is endangered if there are more and more different crypto currencies created, as it happens at the moment. I see a risk in that development.
Precious metals however simply stay what they are, and in the amount that exists. Regardless if it is mined already or not. And nothing can really destroy it. The big problem with PMs is, that the prices for it are completely under control of the ruling powers.

i see the merit of crypto but i just don't trust gruberments and filthy banks.

Great Post - we will get the information out there.

I'm getting tired of endlessly hearing that silver and gold are finally going to take off in price. What makes you guys think that price suppression and manipulation (which has been ongoing for many decades) will finally come to an end. My precious metals holding are barely beating inflation while my crypto holding have massively outperformed my precious metals holdings. I'm considering selling the remainder of my silver and gold and entering a market with far better prospects.

I feel your pain my friend, but how many major financial crises has cryptocurrencies gone through and come out the other side better off? Precious metal investing is NOT a get rich quick scheme, it's about building a core asset that will grow over the decades and will always be there no matter what happens in the world. That's why it's been the core of any dynasties portfolio for over 5000 years. Cheers.