NOT Selling Gold & Silver for Crypto
There is not one person on Steemit that hasn't had this thought........
Source: Dr. Emmett L. Brown, Ph.D.
"If only I had a time machine, I'd go back 6 months, 1 year, 3 years, 5 years...and buy the crap out of Bitcoin"
In my opinion, this kind of thinking, while fun to dream about, is extremely counter-productive and will only lead to frustration and cloud your judgement going forward.
There is much talk going around about selling at least a portion of your Gold/Silver and moving it into Cryptos. Whether it be the ever-climbing Bitcoin or an undervalued alt like Litecoin, Etherium, or even a long-shot like Ripple, EOS, IOTA (and the list goes on and on and on).
Well, I can state categorically....THAT IS NOT ME.
I will not part with one ounce of either Gold or Silver or even one single piece of fiat toilet paper to put into Cryptos at these levels.
I managed to mine a few BTC from Mid 2014 through 2016, so any dabbling I do in the crypto space is with "House Money". I'll even admit that I sold a few of my BTC back in May 2017 when BTC hit the all time high of $3,000. I thought I was being clever and taking a little bit of winnings off the table and putting it into Silver. I too can play the 20/20 vision game and beat myself up for not holding it longer, but as I stated earlier that will only lead to frustration and cloud my judgement going forward
There are TWO main reasons why I will not consider swapping Metal for Crypto at this point.
#1 - This Is The Ultimate Sell Low/Buy High Scenario
Gold is stuck in the $1200s and Silver is below $16. BTC is very near it's most recent all-time high. This is a recipe for disaster on the Gold/Bitcoin trade.
Source: https://www.americanbullion.com/gold-vs-bitcoins/
#2 - Vesuvius Style Blow-Off???
I believe there is a massive correction in the very near future for all Cryptos. Nothing goes up forever. Didn't we learn our lesson during the Housing Crisis in 2008 or the Dot-Com run-up in the 90's? Whether you feel the same way I do or not, the chart that follows HAS to at least give you a momentary pause.....
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*Source: http://www.ftense.com/2013/11/bitcoin-pushes-to-1240-taking-ride-out.html *
Some will look at this chart and immediately tune it out as FUD, but anyone who has followed the markets for any period of time knows this is not a healthy move up. For years, people claimed "this time, it's different" and we're always proven wrong.
In Closing...
I am not against Cryptos, I just believe that it is not the right move, especially now, to move out of Metals and into Cryptos.
I usually end all of my posts with the following phrase.....but this time I really mean it:
STACK ON!
Just got another shipment in today! More cryptos moving into silver!
I'm not selling gold for crypto, I'm selling crypto for gold!
Not buying metals at these prices is missing out on the next big thing imho. But too, with cryptos, not getting some exposure i think is misguided. On any metric for judging bubbles, bitcoin is at nosebleed levels, and if it were a stock now would be the time to sell it all. HOWEVER, bitcoin is a brand new form of money and presently there is a price discovery that is a long way from the top. It will buck and roll and shimmy and shake but it is going Waaaay higher.
I’m not selling any oz’s to buy more though! And i agree with you on that point. But i will tell you this: as of last night at a btc ATM, i have bought bitcoin for under $100 and i have bought in when it was north of $21,000 cad.
Each to there own, and many luck, with much wow!
🧞♀️🧞♀️🧞♀️
I feel where you're coming from, as far as buying into Cryptos with fiat. Perhaps I should have said that I would not be buying Bitcoin at these levels. I have been buying some smaller/cheaper alts hoping to catch the next move up, it's just spending $1,600 USD for a 10th of a BTC kinda feels wrong to me.
Also, I am a notorious black-cat when it comes to investing. Back in December 2016, I started hearing about this thing called Etherium, which was supposed to be the next big thing. I said OK, WTF, I'll give it a whirl and bought 20 ETH on Coinbase at $13.00 per coin. The price immediately to fell back to $7.00 and I felt like I once again screwed the pooch. If the price had just maintained, I probably would have bought 100 or even 200, but because of that little hiccup, I got soured on the coin when I could have purchased cheap.
I tell that story to illustrate that I have no idea what I'm talking about.
I just know I'm holding onto my metals with both hands.
I am going to stay neutral as Switzerland.............
I understand. It's not my intention to ruffle feathers or crap all over cryptos, it's just the topic is on everyone's mind and I throwing in my 2 BTC Cents (which today is worth well over $280.00....WTF?!?!?)
Boy oh Boy am I glad I didn't trade my gold and silver for crypto!
Nice post. I’m not selling either. It’s tough to go against human emotions right now and be a buyer of PM. But buy low sell high. This is not advice but how i’m feeling.
I've made many bad decisions in the past acting on emotion. I'd like to think that they were preparations for the biggest decisions yet to come!
Good stuff, gotta remember silver - the most undervalued underloved commodity on the planet
Big money is pulling out all the stops to hold down gold and silver. I believe that when it get's away from them, it will be unstoppable. I am truly at a loss to explain Bitcoin's move up other than mania (and I'm not bashing BTC, I just think investing at these levels is a bad idea).
you always gotta watch your back when it comes to things like these .I totally agree with you. Only the assets you can touch and smell will last - those are much safer leverage. thank you for pointing out something that most of us are ignoring to notice
It's not that I'm against Cryptos, it's just something (anything) that rises this high this fast gets my Spidey-Sense tingling. That still doesn't make it bad, just risky. Then, to turn around and cash out of a position that is at a recent historical low (e.g. Silver) to move into something that's at an all time high is a double whammy.
It's a trade I would not make.
It is one I made in the past, regretfully.
Learning lessons from the past is one of the smartest thing to do 🙂
It's always prudent to diversify. I think silver has got to have an upside and can't possibly have much of a downside. Of course, this IMHO and not investment advice.
I am not against diversification, I just don't like selling low to buy high.
No, I understand what you're saying. I think it's a dangerous to buy in a panic as to sell in a panic.
Great post. Bitcoin through its success has become a major failure and indeed a huge correction waiting to happen. Basically it stopped being a competitive currency when the transaction costs became a full order of magnitude bigger than that of more traditional payment solutions. It stopped being a good alternative payment option for special cases when it failed to keep up in the fields of smart contracts and anonymity. It can seem stupid now if like me you got out of bitcoins to early for maximum ROI, but in the end getting out to late is always worse than getting out to early.
Currently SBD is in what I feel is a struggle between short time profits and its own demise as a viable stable price fiat money alternative. It had all things going for it. Low threshold usability. Possibility of micro payments and most importantly a stable prize at close to 1 USD. But now as it seems with internal market prices of about 0.15 SBD per STEEM, instead of something well above 1.0, and no correction in sight, seems we might need to admit that SBD is failing as an attempt at a reliable stable prize fiat currency alternative.
And as you stated, crypto currencies aren't precious metals either. Crypto currencies should be money like, not just gold like for them to flourish long term. Or, like zcash or ethereum, they should offer something special such as true anonymity or Turing complete smart contracts.
I really hope the Steemit people will learn from the current SBD pump and will find a way to bring price stability back to the currency. Many people seem happy with the high SBD, but truly if it isn't corrected it means SBD will have lost one of its prime strengths for use as actual currency: price stability.
I did not even realize that SBD was on such a tear. I've been watching the price of Steem so closely that I totally forgot to pay attention to the Steem Dollar. Thanks!