Gold or Cryptocurrencies?

markus.nay (25)in #bitcoin • 7 years ago

Monday, May 22, 2017
Gold or Cryptocurrencies?
Bitcoin at the time of this writing is trading at $2,283 and Ether is at $181. Gold is at $1260. Some people are now saying to invest in Bitcoin instead of gold for 3 reasons. One is because they belive if the internet/powergrid goes down, Bitcoin will be OK. Two is because Bitcoin isn’t giong to inflate their currency like a fiat currency can (USD, Euro, etc). Three is because they belive Bitcoin will continue to skyrocket. I think all these reason are potentially false. Here is why.
If the powergrid goes down, some people have said just use your paperwallet. Well, first of all if the power goes down, how are you going to use your computer? “I use a paper wallet! It’ll be fine!” Even if it is, I don’t really imagine people would trade food for bitcoin. This is debatable, though, of course.
To address the second argument “Bitcoin isn’t giong to inflate their currency like a fiat currency can”, who says they can’t? Bitcoin? If they wanted to inflate it, they could. I can see a scenero in which a government forces them to inflate it. Or during an economic downturn, if they decide it’s profitible, they may do it. Would it be smart? Probably not. But you’d be screwed either way, wouldn’t you?
Ah, argument number three “Bitcoin will continue to skyrocket”. While unless you are a visionary, no one can truly predict this. And even if it is, I believe the market is overvalued at the moment. Anyone remember the DotCom bubble? Yeah, I think we may be in a similar scenaro.
As I see it, gold doesn’t have these issues. While you may not get rich fast from gold, it’s also a hell of a lot less risk. And it’s accepted world wide. The only bad scenero I could see is if the government took it all (they did in the 1930s).
But, ya know, I don’t lie to my readers. I could be honestly dead wrong about any/all of this. It’s truly up to you, but this is my personal take. I feel like a lot of people on Steemit will disagree, but that is OK. Please let me know why below.