Many erroneously think that since there are thousands of cryptocurrencies, “crypto” is just another asset class like bonds or stocks, and they need diversification within that asset class. That would be like adding pyrite to your portfolio to diversify your gold holdings. https://financialunderground.com/articles/the-case-against-altcoins-3-reasons-to-stick-to-bitcoin-only/
The Race for Strategic Commodities in World War 3
Financial Underground
The Race for Strategic Commodities in World War 3
World War 3 is already well underway, even though most don’t recognize it.
Savers face the daunting task of outpacing inflation AND the capital gains tax just to maintain their purchasing power. That’s made saving an impossible task for many people. Previously, people could simply save in money, which was either gold or a derivative of it. There was no need for a dentist, a construction worker, or a taxi driver to also become a hedge fund manager to try to keep their heads above water.
How will you save for the future—or retirement—when the US dollar loses 50% of its value every nine years, in the best-case scenario? In reality, you probably have much less than nine years before the US dollar loses half of its purchasing power again. That’s a big problem EVERYONE will have to address soon.
Let me put it into the simplest and most concise terms. 1. Central banks create fake money out of thin air and loan it to governments at interest. 2. Governments use violence and threats of violence to extract taxes from average citizens to pay the interest on the fake money the central banks created out of thin air. 3. Like the mafia, they can deploy violence to ensure there is no competition to their privileged racket. That’s the unvarnished truth about central banking. In short, it’s the business of usury and tax farming.
The central bank’s real mandate is to transfer as much wealth as possible via currency debasement to the political class without causing alarm among the plebs.
Financial Underground
The “Business” of Central Banking—Usury and Tax Farming
“The road to serfdom consists of working exponentially harder in order to earn a currency growing exponentially weaker.”
The “Business” of Central Banking—Usury and Tax Farming
Financial Underground
The “Business” of Central Banking—Usury and Tax Farming
“The road to serfdom consists of working exponentially harder in order to earn a currency growing exponentially weaker.”
In a recent article, I analyzed the ten most decisive monetary attributes and examined whether gold or Bitcoin has an advantage. The table below summarizes the results. Bitcoin wins in 6 out of the 10 categories, including hardness (resistance to debasement), which I believe will be the most decisive factor. While gold has an advantage over Bitcoin in durability, that advantage will only be relevant in the case of an inescapable, global return to the Stone Age that lasts into eternity. Such an unlikely outcome is not relevant to investment decisions today. Gold also has a fleeting advantage in liquidity, fungibility and privacy, and recognition. However, Bitcoin is eroding those advantages every day. If current trends continue, I believe Bitcoin will overtake gold in these categories in the years ahead. Putting it all together, gold’s advantages over Bitcoin are either irrelevant or melting away. The inescapable conclusion is that Bitcoin has superior fundamental characteristics that make it a better tool for sending value through time and space. Digital gold is better than analog gold. In short, Bitcoin is likely to win the ultimate competition and become the world’s dominant money. image
In a recent article, I analyzed the ten most decisive monetary attributes and examined whether gold or Bitcoin has an advantage. The table below summarizes the results. image https://financialunderground.com/articles/gold-vs-bitcoin-comparing-the-top-10-monetary-characteristics/
Most likely, gold will be remonetized as the fiat currency system collapses, only to be demonetized by Bitcoin in the following years. https://financialunderground.com/articles/gold-vs-bitcoin-the-winner-is/