How to Protect Against (Steemmonster) Inflation? Buy Gold (Steemmonsters)!

First let me say as way of disclaimer, I love @steemmonsters and am bullish on the game and the value of the cards.

This is a genius project and the founders have worked day and night to make a booming success for all of us. This is GREAT for every person on Steemit.

If you are an investor like me, you always want to protect your downside risk first.

I have little doubt steemmonsters will be a huge hit and be beneficial to the whole platform.

But how would I protect my investment?

To me the risk of investing in steemmonsters (and there are risks in every investment, note that this has not stopped me from buying the cards!) is dilution and inflation.

As investors knows it is very common during a growth phase of a company for capital raises by way of issuing additional shares, diluting current shareholders in an effort to make some sort of accretive acquisition to further the growth of the company.

If the growth company pulls it off correctly, this is GOOD dilution because in theory the dilution should be less than the growth the new acquisition should “buy.”

If you can dilute shareholders 10% and achieve 50% growth from a new acquisition, most long term investors will be happy.

Inflation (in this context) is occurring in the amount of cards being created. Again I am not saying this is a bad thing, in fact it is neccesary to grow the game.

The more people that are able to play the game the more demand for the cards, which will push prices up. It is my assumption that the growth projections for the game more than justify the amount of cards that are being printed.

In addition, the game is not designed as an investment specifically, but as fun for all! And it’s A LOT of fun already. Even just opening the packs has been a thrill, especially when this happens:

https://steemit.com/steemmonsters/@goldmatters/goldmatters-strikes-gold-steemmonster-adventure-mene

To protect my investment portfolio IRL I buy gold in various forms including through Goldmoney: https://www.goldmoney.com/w/goldmatters

And Mene:
http://mene.com/invite/JrT26p

Gold is scarce and cannot be printed. There for there is a very limited supply. This is part of what makes it such a good inflation hedge.

Most advisors that are smart enough to know about gold reccomend 5% - 10% in gold as part of your portfolio.

I believe that in the context of your Steemmonsters portfolio, gold foil cards MIGHT also act as a hedge for some of the same reasons.

Gold Foils are scarcer and more difficult to find, so naturally there is less supply on the market and thus they are more valuable.

So how am I doing in my own Steemmonster “portfolio?”

I am actually severely under protected!

I only have 29 gold foil cards, which is under 5% of my over all cards.

BUT

A couple of my gold cards are legendaries, so they are definitely more powerful of a hedge than commons, rares or epics due to their extreme scarcity.

Nonetheless, I am going to want to buy some more gold cards!!

Since there is a lot of subjectivity to the game, dynamics and rules can and will change dramatically over time. So in reality if you are buying the cards for investment purposes and not gaming purposes, this really should be classified as a speculation and not an investment.

Having said all that, I can’t wait to buy more packs, acquire more gold foil cards, and play the game!

I will be buying more gold cards to help protect my speculative investment in Steemmonster cards to protect against inflation.

What will you do?

To protect yourself from inflation IRL....

Earn $5 in Mene credit for signing up for Mene with this invite link:

http://mene.com/invite/JrT26p

Menē crafts 24 karat gold and platinum investment jewelry™ that is transparently sold by gram weight. By combining innovative technology with timeless design, Menē restores the ancient tradition of jewelry as a store of enduring value.

To find out more about what Menē 24 karat gold and platinum investment jewelry is from your fellow Steemians :
https://steemit.com/steemit/@goldmatters/what-in-the-world-is-mene24k-35-well-researched-blog-style-essays-contest-winners
Or
https://steemit.com/mene24k/@goldmatters/what-is-mene-24-karat-platinum-and-gold-jewelry-valentine-s-day-gift-winner

To find out more about what Goldmoney is from your fellow Steemians : https://steemit.com/contest/@goldmatters/what-in-the-world-s-goldmoney-winners

To sign up for a Goldmoney Holding start here: https://www.goldmoney.com/w/goldmatters

For Menē 24k investment jewelry here: http://Mene.com/invite/JrT26p

I am on a personal mission to spread the word about Goldmoney and Menē through any means necessary. Goldmoney allows individuals to empower themselves by protecting their savings by owning small or large amounts gold previously inaccessible to regular people like you and me.

All images sourced from Menē and Goldmoney.

Read more about Goldmoney: https://steemit.com/@goldmatters

See Steemians unbox Mene: