When spotting a trend in Finance, it's best to own the Fastest Horse
When retail started moving to the internet, did it pay you to own the mom and pop stores or large retail stores that eventually started selling some of their products online, or did it pay to buy the company that sold EVERYTHING online?
The answer to that one is simple, buying AMZN was the way to go as it was clearly the fastest horse in the race.
With the dollar being weak and looking like it's going to continue being weak for the foreseeable future, store of value investments are likely to be en vogue.
While just about everything priced in dollars will "go up" as the dollar loses value, two of the more popular store of value hedges are bitcoin and gold.
Gold has held this title for centuries, long before the US dollar was even a thing.
However, bitcoin has recently emerged on the scene and emulated just about everything that gold does, only better.
For this reason there is a very real chance that bitcoin eventually replaces gold over the coming years as the favorite store of value allocation in portfolios.
We can see the early evidence of that playing out in just about any way you slice the last 8 years...
Bitcoin returns vs. Gold returns:
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If you had held gold for the last 8 years, you made roughly 13% on your money. Not ideal, but it ALMOST kept up with inflation.
To make sure we aren't just cherry-picking the data, we can also can look at the 4 year and 1 year returns...
Which show gold investors making 64% and 24% respectively, now that's more like it during a time period when the dollar has been significantly weak.
However, during that same time period, bitcoin returned 2,675% and 270% respectively, while also returning 202,328% over the last 8 years.
As you can see, it's really not even comparable. I will admit though, bitcoin is not likely to see these types of returns over the long run as bitcoin is very new compared with bitcoin.
However, given the fact that not only is bitcoin likely to do well against the dollar on its own merits, it's also likely to pull some of the money sitting in gold or that would be going to gold.
For that reason bitcoin is likely to continue to be the fastest horse over the next several years, and possibly decades.
It's one of the few assets I have ever seen that has store of value properties but has returns like a high flying tech stock.
In fact, it's the only investment I have ever seen like this.
The fuse has been lit...
What do you think happens when we break this line?
I have a guess...
Now we just have to make sure we don't do anything silly like sell too early and miss out on the really large moves during these bull market cycles.
Gold is old, cash is trash, and bitcoin is king.
Stay informed my friends.
-Doc
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Now you are flogging a dead horse..and I dont mean gold!
Just some more evidence to support my thesis. :)
With btc dropping under 30k again the gold I bought when I sold it at 40k is supporting my thesis 🤗
Looking at a chart of gold right now, there is a decent chance you would have done better putting that in USD or tether.
I don't use tether because its a scam so is likely to be investigated which will drop the price
But I do use dia and tusd as stable coins, as well as pax gold
Profits from cryptos go half into gold and half into stable coins ready for a buy back
The gold is not for making gains, it's insurance against losses
Longer term the US dollar is screwed, but stable coins linked to it can work for trading in the short term
Tether is already under investigation and has been since basically late 2018.
And sure I agree about the dollar, hence why bitcoin. The point being if you are just selling to a holding vehicle, maybe holding in one that can't lose value is the way to go. You seem to have a plan that you are comfortable with though.
For people that have a relatively small btc holding, just holding is fair enough, but when a drop from 40k to 30k is a serious loss, then I would rather lock in gains than live in fear.
Right now my hope is that Etherium will fall like a stone...hoping for sub 500 hundred!
PS - typing on my tablet, the auto-correct for DIA is diaper and the auto-correct for TUSD is turd!
So when I just said:
"I do use diaper and turd"
That is not what I was trying to say :)
Haha, I just thought maybe you were a lot older (or younger) than I originally thought. ;)
Btw, how's your "civil war in the US by the end of January" coming? As well as those massively negative GDP prints coming? Last I saw, they are already revising those growthy numbers higher.
I'm guessing you still think bidet is legally the president?
Why do you think all those internet and power outages are happening?
Who is posting those revisions?...would that be the mainstream media?
It doesn't matter what I think, it matters what the laws say. And regarding the revisions, the same ones that ultimately will post the numbers when the first two quarters end.
Agreeing on the validity of the sources is going to be a rabbit hole isn't it?
But I like rabbit holes...
very interesting this comparison between Bitcoin and Gold
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Yeah but they are all parabolic, so that means they all gonna damp! Whay goes up, must come crashing don don son Fibonaccio! $20k btc getting closer and closer every day, and I have a huge order sitting there waiting to be filled! I didn't do all this analyzing and predicting for nothing! I get paid at 20k!
Your english is parabolic, but i am in the same camp as you!
And if $20k doesn't hit?
Oh it’s hittin alright! If it doesn’t touch then I guess you’re getting upvotes until it does! 😳😂
Haha, well that doesn't sound so bad to me!
I get the point of what you are saying here, but to be fair, when Amazon first came out it was just books. I was buying stuff online from places like Buy.com (which isn't around anymore I don't think), while Amazon was still just selling books. If I would have been in the place to invest back then, I probably would have picked a company like Buy.com over Amazon. How wrong I would have been! Again, that is beside the point and like I said, I totally get where you are going with this.
Posted Using LeoFinance Beta
Good point. Though I am talking more about after AMZN had established itself as the place to go for online shopping. It's been the one of the best performing large cap tech stocks for years and years now.
Gotcha! No doubt about that. I think my brother in law owns some that he bought very early on.
The struggle for the world economy starts from the mastery of gold. You will know sir, that gold will be replaced with crypto, but technical problems will arise when bitcoin controls all gold and hoard gold personally
Amazing to click link and things just appear instead of that few seconds of waiting.
Makes such a difference.
Bitcoin is likely to surpass or take over gold with time. It's already showing evidence of that happening anytime sooner.
Bitcoin is king indeed!
Cheers! :)
Posted Using LeoFinance Beta