Why Everyone Should Keep Their Savings in Bitcoin or Gold
In anticipation of her new role as President of the ECB, Christine Lagarde has shared her thoughts on the policies of her predecessor Mario Draghi, and his decision to implement negative interest rates in Europe.
And what she has to say is extremely bad news for savers.
In this video, we'll be taking a look at these comments, and I'll be explaining why I believe that every rational person should keep a large portion of their savings in either gold or Bitcoin in order to mitigate the actions of central bankers around the world.
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▶️ 3Speak
Negative interest rates are the last dice roll of failed monetary policy.
Absolutely!
I will add one more thing, Keyneysian thought is not completely wrong. There are situations where a liquidity trap could stop growth. I guess no school of thought is completely wrong. Where I disagree with the Keynesians is that the sluggish growth in the West now results more from fundamentals than any monetary market condition requiring any Keynesian methods to fix. Western populations are aging and the work forces in Western countries are shrinking. Rapid technological advancement is causing a mismatch between existing skills and skills in demand. That results in high structural unemployment.
Besides, there is little in the Keynesian toolbox that is able to boost the economy now. Open market operations, that is, central banks purchasing financial assets with money they create from thin air only transfers wealth to the already wealthy without increasing the purchasing power of anyone occupying the bottom rungs of the economic ladder.
For decades, the financial system has been digging its own grave and many an economist from both the left and the right has criticized it. Because of the mess the financial system is, there is ample reason to believe in the potential of the crypto space and HODL. :)
Love your analysis!
Diversification of assets is critical to preserving them. Risk is the enemy, yet it is also the bringer of reward. Each person approaches their assets differently depending on their personal situation. If you invest, as your investments grow, it is usually a good idea to invest in a varied tranche of assets, from PM's, like gold, to real property, stocks and bonds, derivatives, to crypto and other vehicles as relevant.
The reason for diversification is that particular risks affect particular vehicles differently. If someone starts mining asteroids and there's suddenly a glut of gold on the market, it's unlikely to as radically deflate the value of your Starbucks stock as it is your holdings of gold. I read the title of this post and noted that folks will conflate BTC and gold due to the mention of them in the same breath, despite that extraordinarily different risks and rewards are potential to these extremely different vehicles.
BTC could hardly be more different than gold as an asset class. For all your BTC to lose all it's value, all you have to do is not be able to access it, and a very wide variety of events, from forgetting your key, to a solar flare EMP'ing the internet, could make that happen, few of which are within the control of investors. Gold has a history as an asset stretching back millenia, and the events which could make your physical holdings valueless are completely different than with BTC, ranging from thugs going door to door and searching homes and seizing it, to the aforementioned asteroid (or other mining) strike.
Gold is considered a highly secure investment class, and has proven to be so since before recorded history, while BTC is ten years old, and most reasonable folks would consider it the highest risk class investment just because of that alone. The price of gold, inversely, is highly unlikely to increase by orders of magnitude, while BTC has done so repeatedly in it's short history, and some folks think it will do so again.
I am glad you noted the difference in risk the assets mentioned present, and unrustled my jimmies.
Thanks!
I prefer bitcoin and i will hodl a reasonable quantity
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Same!
That’s the devil 😂
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Silver is easier to accumulate for my savings bank. Gold and bitcoin will become a portfolio tool when i can afford larger savings allotments.
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Agreed, I'm hodling as much BTC (and ETH+BCH) as possible as a student haha
That's because bitcoin and gold will become the most popular currencies used in the future and are free of inflation.
I’ve thought about what percentage it good for me. Personally I am only comfortable with allocation approx. 1% at this point.
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That's 1% more than most people :)
Great video. I agree. Buy gold before the election season. It will be nuts.