Precious Metals and Cryptocurrency: Where The digital World Meets History
In the past decade, the total cryptocurrency markets have seen a meteoric rise in US dollar value. Currently, the total cryptocurrency markets are valued at 285 billion dollar and numbers are rising steadily in 2019.
Although the total cryptocurrency markets have risen fast in value, they still suffer from very volatile price swings. This in contrary to for example the gold market which has a very stable value over time. Cryptocurrency are designed to be deflationary which is the opposite of fiat currency. Similar to precious metals, this deflationary property can be used as a hedge against inflation.
Precious Metals vs Cryptocurrency
Just like fiat currency, cryptocurrencies do not have a physical backing. It's a total digital solution. As a matter of fact, cryptocurrency is backed by computer code and miners or nodes. On the other hand, there is precious metals, which are natural. There is a fixed amount of silver on planet earth.
As a result, precious metals and cryptocurrency are more alike because they both have a limited supply.
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