I have been trying to get my head around cryptocurrency for some time. I just can't get used to something that I can't see, feel or touch being called money. There are other things that share these traits that people use all the time without thinking about it. People have no problems buying stocks. It has been a part of our economy from near the beginning. Cryptocurrency also shares the same kind of risk and volatility as stocks. To me, cryptocurrency is just another vehicle used to build assets that will eventually be converted back to real money.
So what is real money? Certainly not fiat currencies. Yes I can hold these currencies. I can even put them in my pocket. That being said, fiat currencies rise and fall. They are not much better than cryptocurrency. For me, real money is silver and gold. No matter what the latest fad is, the world always, always goes back to silver and gold.
I do intend to invest in cryptocurrencies. But it will just be treated as a vehicle I use to grow assets that I will eventually convert to silver and gold.
Cryptocurrency is the future. Not as we know it now perhaps, but as the fiat currencies fail I can see countries starting over with a cryptocurrency based system. It seems to be the perfect way for governments to exert even greater control over their population.
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I am also so confused with all the emotions that is associated with cryptos. I have cryptos but by no means I am treating it as store of wealth. It is a speculative stock at best in its current form.
I write on a daily basis about real money - gold and silver.
Upvoted and following you now.
I share the same feelings as you ajain but have watched the value of these things become much better investments than most other things. I've decided to dabble a bit and see where it takes me. I too treat them as a stock and not something tangible. If I can turn them into something tangible so be it.
My basic principle of trading is that can I get out when my targets are reached. In cryptos, I don't know what the target should be and since most of the exchanges are not regulated, I can't be sure to get out when I want to. So, in short, I am playing for the thrill of it just like when I go to casino. Have a good time and prepare to let the house win :-)
Yep! Makes sense but the way I figure it is if I get in today with $ I don't need and just forget about em' maybe I can retire on em' down the line? Hahaha wishful thinking I know but it came true for some already. Why not.
Good for you. Net-net, I am currently down about 3% on my crypto portfolio.
That's really not bad in the scheme of things. I'd say you're doing well. I was a late bloomer but feel I'm earlier than most. I like your stuff. Following.
Excellent my friend. I will follow you right back. Look forward to reading your work.
Great post.
I agree, gold and silver always the safest choice, South Arica just recently launched its Silver Kruger Coin. It's around $50 for one. I looking into that at the moment.
I will bet my hard earned money on the hard money that's survived for 5000 years. I will go with those odds thanks, good read @olmech cheers.
Crypto is certainly fiat, insofar as it has no tangible backing. You're right in asserting that it isn't money; it's not. However, as far as fiat goes, it is far and away superior to central bank fiat, and this is true for a number of reasons. Primarily, it's because cryptos like BTC and ETH have a strict limit on inflation, unlike central bank notes which can be continuously printed on the whim of the bank. Ultimately, though, gold and silver are the only reliable monies.
Great post.