Gold vs Cryptocurrency

Cryptocurrency is NOT a reliable alternative investment for hedging against inflation, a declining stock market, or economic downturns. Here’s why:

• Leading cryptocurrency experts and advocates advise individuals to invest no more than they can afford to lose completely. No one in the gold and silver investment community has ever had cause to make a similar statement.

• Bitcoin has crashed 70% no less than seven times since its launch in 2009. There are no parallels to this in precious metals markets.

• Cryptocurrency recently lost around 25-30% in total value in a single day, following a simple announcement. Again, nothing similar has ever happened in gold and silver markets.

• Cryptocurrency can go to zero under certain circumstances. The United States government could ban it, as China has, or heavily regulate it as many other governments have. When and if the U.S. government issues digital currency, it might not allow competition. Another massive selloff could simply end the era of cryptocurrency - if it can fall by 70% it’s not hard to imagine a complete collapse. Gold can and will never be worthless, and has been the most reliable form of currency known to man for thousands of years.

• All digital currencies have complete reliance on computer systems, and without electricity and computer access, assets are inaccessible and functionally cease to exist. Gold and silver do not rely on any of these things, and remain safe, tangible assets in any adverse circumstance.

• Crypto is best seen as money to play and take extravagant risks with, much like casino chips. It is NOT a proven, reliable haven during a crisis or inflationary period. Gold and silver are renowned for their safe haven role in these circumstances.

• New cryptocurrencies continue to emerge one after the other, each with its own arbitrary (and thereby artificial) scarcity. You can rest assured that gold will not get lost among a host of newly-discovered precious metals. The market for gold has been well-established for literally thousands of years.

• Crypto may have a place in your portfolio in a limited fashion, but it IS NOT a substitute or replacement for safe assets like gold, which are what one should seek during inflationary periods. Now is the time to add precious metals to your savings and investment portfolio.

• Cryptocurrencies have enabled an explosion of global ransomware attacks, many based in Russia, China, and Iran. These attacks have targeted hospitals and critical infrastructure entities such as the Colonial Pipeline and JBS Foods incidents. While these may not directly affect crypto holdings, they do influence the likelihood of government intervention and may destabilize investor sentiments at any time.

• The amounts of electricity needed to mine Bitcoin alone rivals the consumption of a medium-sized European nation. With growing global pressure to reduce energy consumption this puts it at odds with values it needs to align with to gain wider acceptance as the “future” of money, calling into question its longterm viability and potential.