Precious Metals vs Cryptos

[silversearcher]

It's interesting watching the surge of Cryptocurrencies in recent years. Although Silver Stackers is mainly a precious metals site - it's interesting watching some trading out their precious metals wanting to buy cryptos in place. According to net sources there were more than 900 crypto currencies available over the internet as of 11 July 2017 and growing. Many have alluring names that sound more like a new found element or drug, rather than a new found currency. One begins to wonder how far all this will go? Or how legal it is? There are numerous websites pumping this new formed currency within a inch of it's life, claiming it to be the next best thing since sliced bread. Almost reminiscent of the days of Chris Duane or Mike Maloney pumping silver at the peak of $50 in 2011 as they continued to pump it all the way down to $15 ( US ). Even with a current investigation over bitcoin involving around $4 Billion in possible fraud, that's right $4 Billion (a pretty amazing amount), regardless cryptos for many have become the new age monetary heroin seemingly hitting many highs in lieu of traditional currencies or precious metals. What concerns me is the consequences of owning a currency that virtually bypasses both national and traditional global currencies. Even more disconcerting is the lack of interest of world Governments to recognise this conflict. Typically in Australia it is illegal to set apart land owned within it's borders and claim it as a independent Kingdom/Principality or Country. Some have tried and have failed miserably. Even several small community's have tried bartering, and local councils have knocked it on it's head. It is also illegal to print your own currency and trade with it within the confines of Australia. Yet, with cryptos it appears to be open season! As for me, I'm not advising anyone to buy or sell Cyptos or precious metals, this is entirely up to the individual what they do with their own money. Personally, I get a bad feeling about the world of The Cryptocurrency. I see a vague similarity to the days of Chris Duane and Co, when the majority ran with the pack and chose the wrong time investing their entire life's savings for a precious metals jab. Let's just leave it at that.

 

[Skyrocket]

I do not think the powers that be are just going to keep allowing crypto's to go over their heads and outshine their paper fiat money. I reckon they must have something in the works to deal with crypto's whether making them illegal or hacking into them to make them worthless or whatever.

Having said that I just bought 10 Litecoins worth around $500 because many say Litecoin will go 10X in about a year because that block chain is much quicker and easier to process then bulky Bitcoin. If it does then I will sell it and buy more silver. That's the only crypto I got and doubt I will get any others. I see crypto's as a big risk (back by nothing) and I only bought $500 worth because that is the figure I was prepared to completely lose.

 

[Altima]

FYI, I've never sold any of my precious metals to fund my purchases of cryptos (only sold PMs to pay the bills). Cryptos has made me money and I'm happy riding this wave. As a stock trader once told me, you have to be quick to adapt to market rotation, which is what people with money tend to do (ergo, the rich get richer, the poor get poorer). I foresee blockchain technology becoming more and more mainstream, and this will obviously spillover to cryptos.

And with any form of investment/diversification, only invest what you can afford to lose, and this applies to real estate/PMs/stocks/cryptos.

 

[MakeMyDay]

Could cryptocurrencies be a mechanism for soaking up excess fiat money?

I've read a couple of good analyses of the 1973 oil crisis that concluded it was fabricated in order to soak up excess petrodollars. Too many US dollars were in circulation, and oil at the time was bought almost exclusively with dollars, so the central banking cartel simply doubled the price of oil. That doubling took the excess dollars out of circulation.

So could the cryptos be a way to take fiat money out of circulation? Lots of governments are printing lots of fiat money right now.