Gold and Bitcoin the real money | Everything else is Credit
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Since ancient times, Gold has been a form of money with intrinsic value in itself, so many nickname it as the True money of recent times, also, we can not forget the Bitcoin, which, since the last crisis of 2008, Its anonymous creator under the pseudonym of "Satoshi Nakamoto" gave birth in 2009 to Bitcoin, created to be a quick payment currency and also with an intrinsic value, since it is finite, that is, there are only 21 million of it so it is a deflationary asset.
In this sense, Bank of America comments that "Gold will reach $3,000, 50% above its record", a price level that, due to current monetary policies, is not far from happening.
What is happening?
I have commented in my previous publications, the more money central banks print, the more value gold will have, so it would be wrong to say that gold will rise in price. The correct thing to say is that all currencies will fall in price due to the loss of confidence caused by banks and governments printing money to keep the system on its feet.
- The Dutch Central Bank made a surprising statement recently: "If the world monetary system collapses, we will need gold to start from scratch.
- J.P. Morgan said more than a century ago something that people seem to have forgotten today: "Gold is money. Everything else is credit.
What people believe
People think they have money, but they don't. By definition, so-called "Trust Money" is not really money. They are just currencies whose value depends on the trust of others, that is, that trust supports their value. To put an example not too far away and what is currently happening is the following:
When everyone lost confidence in Venezuela, the currency lost all its value and those who were "rich" because they had millions in the bank ended up losing everything and discovering the bad guys that what they saved was simple printed paper.
The true value
The truly rich have tangible things that cannot be easily printed or removed, to be a little clearer, these people possess: Real estate, gold, silver and museum quality artwork. Few people understand that gold is not just a commodity or an investment, gold is money. Gold is not supposed to give you a return, simply because it is money, pure money. Investments give you a return because you take a risk in making them, but with gold the risk is zero. This is a real way to own and conserve wealth over time, without having to worry about the effects of inflation and bank policies. Banks cannot print gold, so it cannot be devalued.
The same thing happens with Bitcoin, the so-called digital gold, this is due to many features that make Bitcoin pure money as well, essentially this is decentralized, so no government entity can control, it is in the hands of its community and the many nodes that compose it, thanks to the Distributed Logging Technology (DLT), which results in Bitcoin not being able to print more than 21 million, a feature very similar to gold, so this is another deflationary asset as I already mentioned.
The functioning of the market
Technically, gold doesn't go down or up, despite what people think and what the media says. When they say that gold goes down in relation to the dollar, what really happens is that the dollar gets stronger, when they say that gold goes up in relation to the dollar, what really happens is that the dollar gets weaker, that is, the dollar always stays constant.
Fiduciary currencies come and go, but gold and Bitcoin always remain, despite the volatility that Bitcoin, for example, has, the truth is that its state will always be deflationary and it will always have a tendency to rise, and in time its tendency will always be upward. In the case of gold it has always been here before all of us and will be here long after we all leave. Gold is the barometer with which everything in the economy should be measured, especially currencies, on the other hand, Bitcoin, is being a reference of exchange in countries like Venezuela.
When someone asks you what money is, mention gold and Bitcoin. When someone asks you what debt is, tell them about the fiduciary currencies that exist today, such as the dollar, the euro, the yen, the yuan, the pound and the peso.
Great powers acquiring tons of gold
The United States, China, Russia and the Eurozone have quietly acquired thousands of tons of gold over the years and stored them in their reserves guarded by their armies and the highest technology. Do they know something that you and I do not know? Of course they do. They know that this financial experiment of "quantitative expansion", "stimuli" and "debt monetization" cannot last forever. The game will come to an end at some point, and when it does, people will lose confidence in all that printed paper and desperately search for something of tangible value that cannot be corrupted, like gold. It has always happened throughout history and this time will be no exception.
No fiat currency, not a single one, in all history has managed to survive. All of them always end up returning to their original value: zero.
Finally, if you want to know more about these financial issues you can contact me, I will gladly help and educate you, so you can manage your capital in an optimal way and minimize the risk, I want you to leave your opinion in the comments about what you think about gold and Bitcoin as a real money.
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Gold is the real asset that will last forever. The inflation rates is very low or may be zero. Before people use printed money they used gold to exchange products and services.
Right friend @lebah, first of all I apologize for responding so late and also thank you for commenting.
With respect to the gold I think the same, as I commented in the post. "Gold and Bitcoin is money, everything else is credit."
The existence of gold has actually been one of the great source of income to top gold miners and gold is really an important commodity we can't do without when it comes to production of some aesthetic items like jewelry, watches, chains and many other things. This is one of the reasons some great billionaires tend to set up gold refinery to earn more money.
On the second hand, I think Bitcoin has actually attracted the attention of people due to the great increase in it's worth back then in the previous year. This has actually made people developed interest in Bitcoin mining, trading, earning and investing.
There is really no doubt that both gold and Bitcoin are really the top assets or commodities to watch our for this coming year.
This is already happening in recent time. We now have lot of investors buying more BTC due to the halving process happening at the moment just to earn cool profit after the halving process is over. We are now in a digital world where people now make money though cryptocurrency and gold investment.
Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead 💕💕❤️💕💕❤️💕💕❤️💕
Firstly I thank you for sharing such a valuable comment, I am very grateful, and I apologize for responding a little late friend @hardaeborla
With respect to what you say, I totally agree, Gold and Bitcoin has been in everyone's eyes at the moment and more so because of the current situation that we all seek to obtain profitability or protection of our capital.
Thank you very much for commenting, I really like the interaction and that everyone receives the information and what I want to transmit.
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That tells us that we are going in the right direction.
Interesting article. There is no wonder that after a few years from now the cryptocurrencies will start gaining popularity and will be considered as the prime currency. There are still countries where it has already been accepted as an official currency. Just a few more years to go for it to gain even more popularity. This is a crypto era and this era will last for at least another 50 years.
Hello friend @bala41288 thank you very much for commenting and I apologize for the late response.
You are absolutely right, for me the Blockchain technology is also the future and there is still a lot to explore of this, as well as Bitcoin and many other very good projects.
Hi @lenonmc21
this is so true and I completely agree with you. I have seen my parents buying gold with their saving because they find it safe and have full control over it. Its traditional way of investment thats pretty safe and it has given nice returns over the last 10-15 years.
I also invest in gold on annual basis and if you talk about tenure then I would say its very long which is probably more than 10 years.
Such a nice post. Thanks.
Hello @reeta0119
First of all, thank you very much for commenting, I am very grateful and I apologize for the delay in responding.
It's good to know that your parents, get gold to protect value and get returns, as I said is the real money, the same opinion of the Bitcoin, although it still lacks path to adoption, but we are on the right track.
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Greetings friend @creativeblue
Thank you very much for the support.
Gold is a solid commodity and cryptocurrency is for the digital world. They are both real currencies.
Hello friend @ojerinde, many to comment and a thousand apologies for the delay.
I agree, both are very good investments and for me the most important capital reserves at the moment, besides of course generating profitability.