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RE: Gold's 'just not acting that well' as Wells Fargo Strategist Turns To Bitcoin

in #bitcoin5 years ago

Regards, dear friend, @tysler.

I did not understand your approach well.
You tell us that the price of gold has always remained on the rise although the interest rates applied have always been low. That is, can we consider gold as a market stabilizer?
If so, then we could argue that gold prices also influence the volatility or stability of the crypto market.

Please excuse me if I'm speculating.

Although I find this topic very interesting, especially because there have been STO's releases that are backed by gold.

Thanks for sharing.

All best, Piotr.

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we could argue that gold prices also influence the volatility or stability of the crypto market

Indeed. Financial analysts compared Bitcoin to Gold a few months ago. They called attention to it being more stable over 6 months. This is when BTC was between 4 and 5k

Gold prices has been believed to drop when interest rates go up.

However when gold prices continue to rise during the 2008 financial crisis, the federal funds rate continued to grow.

This shows us that gold may no longer be a hedge for the market. Gold as an asset class, is also affected by its actual demand by manufacturers in electrical components.

Any stock backed by gold in my opinion is quite risky. We do not know the actual supply of gold in this world, whether they were kept in hiding, not found underground or simply too much scattered across. Who really controls the gold prices?

Gold as an asset class, is also affected by its actual demand by manufacturers in electrical components.

Would you mind telling me what do you mean @tysler?

Yours
Piotr

Dear @tysler

I didn't hear from you in a very long time. I really hope you're fine and just got bored with Steemit.

If you would ever decide to come back and would post anything, then please send me link via memo and I will gladly check it out.

Take care of yourself,
Piotr

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