Post
Topic
Board Speculation
Re: Bitcoin cycles, this is the cyclical minimum
by
afbitcoins
on 04/12/2022, 14:10:01 UTC
Quote
gold, and silver are three of the better investment

I dont consider commodities as investment without any yield there is no deployment of capital in a working business or a return on revenue from that involvement.   Buying commodities is usually speculation and it has a cost to it usually with some decay factor, its an old trade done for centuries as farmers sell their crops ahead of harvest and other ideas to raise cash.    Its a natural thing to trade but I separate speculation from investment, the reason gold is not higher is this lack of yield I think and probably it will adjust for inflation but only over many years maybe a decade.
   BTC is far more liquid but also imo a commodity, global security commodity perhaps but there is no natural yield on that so thas why I come to that conclusion, and it also matches the volatility we see as holding is less favored then other investments.   I only state this so we can better understand the nature of what we trade and these cycles or season to BTC price action.

You sound like a devotee of Warren Buffet.  I view gold as money which might not really be a commodity, I don't know, maybe it depends who makes the definitions. Buying gold may not be investing. Gold is gold. Buying gold is like saving or protecting your wealth. This would all be good except the banksters long ago figured out how to manipulate the gold market via derivatives. This era may be coming to an end however, or may not. It seems the BRICS countries may be keen on moving away from fiat control by the west.  I viewed bitcoin in a similar way to gold except there were no derivative markets and the banksters didn't yet own the market. I think this is still largely true (there are some bitcoin ETFs now). For me physical gold, physical silver and bitcoin are about stating your sovereignty. Taking your wealth outside the system and protecting it. In this era of global monetary 'easing' or printing you may well do better than just protecting wealth.