The Real Reason to Hold Gold And Bitcoin

[centralbanksequalsbombs]

The world is run by the state-bank alliance.  The top politicians and bankers jointly profit from inflating the values of money and debt with state power -- this system couldn't survive without either side.

See Dissecting the Parasitocracy.

The interesting thing is, if you buy and hold gold and Bitcoin for the long term, you can benefit.  (Just make sure you don't buy when the global empire is rising, like the 1950s or early 1990s.)  The reason is also due to the nature of the state-bank alliance.

Note that, in this alliance, the top politicians contribute state power, while the top bankers contribute financial know-how.  The politicians, being totally ignorant in this high-stakes and specialized game, are basically led around like children.  They just go along because they benefit from issuing huge amounts of public debt without being punished by the 'markets.'

So here's the problem with this alliance.  When financial asset values collapse (and this day will come, due to the incentives faced by the elites) and everyday people suffer, the politicians will put all the blame on the bankers.  The reasons are obvious (and there is no loyalty in that game,) and the politicians are going to win that argument.  The biggest such events in history include the Spanish Inquisition and the Nazi Holocaust.  In our day, politicians like Bernie Sanders and Elizabeth Warren have already gone after the bankers.

Knowing that, the bankers and central bankers must prepare a last-ditch rescue for a worst-case scenario, when all trust in the system is gone.  That rescue will be some non-state-issued asset, like gold, silver, and Bitcoin, that the elites can peg their money to (at a high price for the non-state asset,) stabilize their system, and ease the suffering.  Even if the bankers think there's only a small chance for such an occurrence, it will be so devastating to the bankers that they must prepare for it.

So, the elites will try to suppress non-state assets, but won't kill them, even when given a chance.  In the long run, this presents something like a one-way bet for these assets, at current prices.

OP, nice one.
Bitcoin is king of asset classes and store of value.
No other savings vehicle can touch it, not Stocks not Gold not Real Estate.
But diversification is good, so to diversify into each would help limit drawdowns.

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[DoublerHunter]

The world is run by the state-bank alliance.  The top politicians and bankers jointly profit from inflating the values of money and debt with state power -- this system couldn't survive without either side.

See Dissecting the Parasitocracy.

The interesting thing is, if you buy and hold gold and Bitcoin for the long term, you can benefit.  (Just make sure you don't buy when the global empire is rising, like the 1950s or early 1990s.)  The reason is also due to the nature of the state-bank alliance.

Note that, in this alliance, the top politicians contribute state power, while the top bankers contribute financial know-how.  The politicians, being totally ignorant in this high-stakes and specialized game, are basically led around like children.  They just go along because they benefit from issuing huge amounts of public debt without being punished by the 'markets.'

So here's the problem with this alliance.  When financial asset values collapse (and this day will come, due to the incentives faced by the elites) and everyday people suffer, the politicians will put all the blame on the bankers.  The reasons are obvious (and there is no loyalty in that game,) and the politicians are going to win that argument.  The biggest such events in history include the Spanish Inquisition and the Nazi Holocaust.  In our day, politicians like Bernie Sanders and Elizabeth Warren have already gone after the bankers.

Knowing that, the bankers and central bankers must prepare a last-ditch rescue for a worst-case scenario, when all trust in the system is gone.  That rescue will be some non-state-issued asset, like gold, silver, and Bitcoin, that the elites can peg their money to (at a high price for the non-state asset,) stabilize their system, and ease the suffering.  Even if the bankers think there's only a small chance for such an occurrence, it will be so devastating to the bankers that they must prepare for it.

So, the elites will try to suppress non-state assets, but won't kill them, even when given a chance.  In the long run, this presents something like a one-way bet for these assets, at current prices.

OP, nice one.
Bitcoin is king of asset classes and store of value.
No other savings vehicle can touch it, not Stocks not Gold not Real Estate.
But diversification is good, so to diversify into each would help limit drawdowns.

I don't agree that bitcoin is the king of the asset classes because there is still a lot of kind of investment that is better than bitcoin like the real estate investment where you can earn money consistently every month without going out to your house and just waiting for the renter to pay you. Bitcoin can be in the top lists but not on the peak of the list because there's still a lot way better, In my opinion.

[radjie]

It is very interesting both very good for us to save the gold to invest our savings even bitcoin as well as it is, the longer we save the greater the benefit and when we want to sell bitcoin at prices that are rising then we gain more.
Bitcoin both have gold and precious value.

[Catswold]

It is very interesting both very good for us to save the gold to invest our savings even bitcoin as well as it is, the longer we save the greater the benefit and when we want to sell bitcoin at prices that are rising then we gain more.
Bitcoin both have gold and precious value.

Holding bitcoin too long can be risky as we cannot have the same level of confidence that we can have by holding gold as gold exist since long time and in long run its price will be surely go higher but the price of bitcoin can even crash in coming years.

[BitcoinPC]

The real reason is that they have limited supply, and people want them. (people may not want bitcoin in the future btw) People always want gold and they want to gather as much as possible in their lifetime. It is the only solid asset which holds its true value through the centuries.

I agree with your opinion, gold and bitcoin both have limited supply, and their demand is high. People know about them, and also know if they hold bitcoin or gold than they could earn from it. When we start to holding them, than automatically they demand will be high. So price depend on supply and demand and we start to profit from them. If we gain profit from them, than doesn't matter, what is wrong with it.     

[jtipt]

The real reason is that they have limited supply, and people want them. (people may not want bitcoin in the future btw) People always want gold and they want to gather as much as possible in their lifetime. It is the only solid asset which holds its true value through the centuries.

Yup, anything that's rare or limited in supply people want them because it will be worth a lot in future if it already isn't. Gold and Bitcoin are a bit different though, gold has been around for centuries and since then it has been worth a lot and its demand just keeps increasing. While bitcoin has been around for only 8 years and though its popularity is increasing, BTC can be replaced while gold cannot be.

[Pettuh4]

It is very interesting both very good for us to save the gold to invest our savings even bitcoin as well as it is, the longer we save the greater the benefit and when we want to sell bitcoin at prices that are rising then we gain more.
Bitcoin both have gold and precious value.

I believe they both have a great future ahead as him has been tried and tested over time. Bitcoin on the other hand is gaining grounds in our hearts and it's been a thrilling year for it and we hope to earn more with it so considering holding some Bitcoin too is laudable.

[buharikx31]

It is very interesting both very good for us to save the gold to invest our savings even bitcoin as well as it is, the longer we save the greater the benefit and when we want to sell bitcoin at prices that are rising then we gain more.
Bitcoin both have gold and precious value.

I believe they both have a great future ahead as him has been tried and tested over time. Bitcoin on the other hand is gaining grounds in our hearts and it's been a thrilling year for it and we hope to earn more with it so considering holding some Bitcoin too is laudable.

I think on this point when the price goes down we need a faster method to sell your funds, bitcoin winnng on this position, because if the price crashes the selling process should easy and fast. As a currency to hold i will choose bitcoin right now, because it still a good investment gold can rise that fast only once in a long time and it's really difficult to compare bitcoin and gold because they are too different kind of investment

[BobK71]

With gold... what if huge mines are found? or some asteroid once we have advanced technology? that makes me a bit worried for the long term.

Another issue is that it is now possible to make gold.  (Alchemy has succeeded!)  The costs of the radioactive reactions are currently too high, but that cost is effectively the upper bound of the price of gold.

[BobK71]

The real reason is that they have limited supply, and people want them. (people may not want bitcoin in the future btw) People always want gold and they want to gather as much as possible in their lifetime. It is the only solid asset which holds its true value through the centuries.

It is true that the ultimate reason is limited supply, as you say.  That will become the ultimate support for confidence, if that is needed.  However, investors are generally scared away from gold by the continuous downward movement of its price, most of the time, due to market manipulation by the elites.  They need to understand that the elites themselves don't want to kill gold, for their own reasons.

[BobK71]

For your savings, you should definitely hold gold and/or Bitcoin.  This post is unreasonable though because not everyone can expect to gain from an asset.  If everyone in the world held gold and continued to do so, the price would not rise (because the price increase would not be from an increase in adoption so it would have to be due to progression of the economy, which cannot happen all of the time).  Even if progression of the economy did happen all the time, the continued introduction of new gold would result in falls until all of the gold was introduced.  So by nature, gold's inflation rate is neutral or positive - only its current state results in deflation.

Very interesting.  For the purpose of social good, we can't hope for some group or even for everyone to get rich from holding some asset.  Money and financial assets should be systems to keep track of real wealth, not generators of wealth by themselves.

However, there is a social good to be had, if everyone started holding gold and/or Bitcoin.  There may be a short-term period of pain, but over the long term it would reduce or eliminate the ability of the elites to distort and destabilize economies (not to mention reduce human happiness in general) by manipulating money and other financial assets.

As far as economic growth, under honest finance growth would only come from real demand for new goods and services, and real innovation.  Sometimes, there just wouldn't be any growth.  But honest growth wold also mean the economy wouldnt be addicted to growth, as it is today, where even the news of zero growth would send asset values and livelihoods crashing.

[sportis]

Gold is a precious scarce medal and bitcoin is a valuable because is the digital scarce one, if we compare both of them as commodities. But these assets has a fundamental difference each other. That is, bitcoin till now is volatile. Moreover we know for investments and especially if we care to invest for long time investor is better to diversify his portfolio so as to mitigate the risks. This is a good reason for someone to keep his wealth to gold and bitcoin at the same time.   

[manselr]

With gold... what if huge mines are found? or some asteroid once we have advanced technology? that makes me a bit worried for the long term.

Another issue is that it is now possible to make gold.  (Alchemy has succeeded!)  The costs of the radioactive reactions are currently too high, but that cost is effectively the upper bound of the price of gold.

I don't believe in those so called scientific research on creating gold.

In any case, it's a matter of time science can create gold, if we ever reach a point were gold creation is rather cheap, gold will be insta dumped, and that day BTC will go to several million dollars per coin.

[deadpoolx]

Although gold has some use cases, most of the value of it is consequence of a large number of speculators that drive the price. I think the future of gold is uncertain, even as a way of storing value. If, in the long run, Bitcoin proves to be a stable and safe currency, many people using gold to store value are likely to start using Bitcoin.

[Forbiddenone]

Although gold has some use cases, most of the value of it is consequence of a large number of speculators that drive the price. I think the future of gold is uncertain, even as a way of storing value. If, in the long run, Bitcoin proves to be a stable and safe currency, many people using gold to store value are likely to start using Bitcoin.

It will not happen that for sure,even in future ,gold will still remain unbeatable.bitcoin is the beginning but it will soon replaced by others as transaction time is huge and cryptocurrency can not be stable if it become stable that it will be similar as paypal or any other digitalcurrency.

[g83]

Although gold has some use cases, most of the value of it is consequence of a large number of speculators that drive the price. I think the future of gold is uncertain, even as a way of storing value. If, in the long run, Bitcoin proves to be a stable and safe currency, many people using gold to store value are likely to start using Bitcoin.

It will not happen that for sure,even in future ,gold will still remain unbeatable.bitcoin is the beginning but it will soon replaced by others as transaction time is huge and cryptocurrency can not be stable if it become stable that it will be similar as paypal or any other digitalcurrency.

Yes gold will always be stable and bitcoin can never be stable so its good to hold gold for a long term so that  you can make good profits in future when price reaches to your desired price and keep on making quick profits from bitcoin in short term.

[bravehearth0319]

For me I would rather to choose to hold bitcoin, Though I'm not saying that I don't like Gold. But my priority is to hold and keep some bitcoin in my storage wallet due to I know it will become 5000$ to 10,000$ in the near future.

[DrGuns4Hands]

both are good interms of investing because they both making money i mean gold is raising price eventually every year and bitcoin raising price right now like no ones capable of stopping it hahaha just kidding but really trust me they are both good at making/investing. my gold its been 5 years already withme its not prue gold bar but i have many jewelries.

[BobK71]

Rarity is the real reason why to hold Gold.  And the deflationary feature why to hold Bitcoin.  Both of these feature gives each items an increasing value overtime.  This is enough reason to hold Bitcoin and gold specially to those who is not familiar with day trading.  This will serve as an investment that will give us profit in the long run.

This is an interesting angle, but we have to remember that deflationary forces are only a feature of times like these.

To maintain faith in their money, right now the central banks are forced to tighten money supplies, as long as the tightening doesn't threaten financial stability.  This tightening, as usual, is having a terrible effect on the lower half of workers, who produce commodities and commodity-like services.  The inequality statistics and political turmoil we see are just a reflection of the unsavory choices faced by the authorities, at this stage of their system.

[BobK71]

The real reason to hold Gold and Bitcoin is human tendency to secure future or to fulfill security needs compromising present.
Due to sky-rocketing inflation, mere savings won't gonna help developing capital for person. Certain contingencies like accident, etc can shake the entire budget of individual. Hence, to stabilize one's financial position and to give catalyst impact to savings, person goes for investment in gold and bitcoin.

This is true, and most mainstream economists won't say that saving is a good thing socially too, under the right system.

It's only under today's system of theft and deception that saving becomes a 'problem' for the economy (called the 'paradox of thrift' by certain economists.)