Why Precious Metals & Bitcoin May Not Save You

in LeoFinance •  2 months ago 

Hey J sovereign individuals

I often speak about it myself and to those who are in the space about the benefits of investing in something that cannot be easily debased. Precious metals and of course Bitcoin are the obvious two that come to mind, and while Bitcoin has absolute scarcity, precious metals have a relative scarcity as new supply is pulled out of the ground each year.

We know the cap on Bitcoin is 21 million, we don't know what the verifiable cap on gold or silver is, and therefore you're always subject to some dilution each year.

Saving yourself by saving for yourself

Saving in one or both of these assets in the current economic environment looks to be the smart move as everyone is looking to get onto the defence instead of being aggressive and investing in more risk-on assets.

Yes, we can debate the risk of Bitcoin, but the idea of investing in any of these assets is about wealth protection and growth as fiat is misused. So if we're sucking purchasing power out of fiat and into these asset classes, we effectively reduce the ability of governments to grow as their money losses its effective buying power.

Once it reaches a point where it seriously starts to affect governments takings, they may think about trying to attack it first. The best option would naturally to get on board and purchase Bitcoin and gold, but fiat systems have been notorious for trying to confiscate the good money and leave us with the bad.

If governments start to feel threatened by precious metals and Bitcoin, what could they do to us? It's a question I've heard a lot lately.

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Confiscation

They could declare them both illegal for commercial use and in the case of gold could either confiscate it with compensation at a pegged rate or without compensation depending on how shit your government is or how badly they need the good money.

Gold has had a history of confiscation, and while not all forms were confiscated, only bullion, where jewellery and collectable remained, it could be taken further if needed.

Bitcoin is unconfiscatable, as soon as it's in a wallet where you own the keys you cannot have your Bitcoin taken from you. Governments can naturally block your accounts with exchanges, but that's about it.

If it gets to a point like this in your country, you'd either need to get out physically or trust someone outside your country with your keys and get them to bring you somewhere else.

As for gold you sure could leave a country with a lot of jewellery and coins, but it would hardly be the most practical move as well as putting yourself at risk of being robbed.

Liquidity and acceptance

If regulations are tightened on these assets, it won't be as liquid to sell; you won't have many open markets and exchanges and stores that accept it. What's the use of having $1 million worth of gold or Bitcoin if you cannot get any food or accommodation? It is rendered effectively useless, so while you're wealth in buying power terms, you cannot buy anything due to governments enforcing regulation on a local or national level.

In cases like these, you may need to exchange your Bitcoin or gold for a foreign currency first, say US Dollars and then sell that for your local currency before you can buy anything.

So there are ways and means around it, but it doesn't mean it's going to be smooth sailing for you.

Regulation & governments

We don't know how far governments are willing to go to retain their power and what regulations they'll put into play. We've seen china try to ban bitcoin, and block off the Western internet, we've seen India try to ban Bitcoin, we've seen Egypt try to stop internet connections in their country, governments are not above extreme measures.

I personally don't trust governments, they're made up of people, and I don't trust people either. While Bitcoin does give us an escape hatch for our money, it doesn't mean its an escape hatch from your government.

Having a second passport, having cash to leave a place that becomes growingly desperate to force you into their currency may become very important in the coming years. I don't put it past any country, and it's something I hope does not happen, but its something I am preparing for in any case.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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I actually believe that the idea of Bitcoin and other cryptos needing to be exchanged for fiat to make them useful will not be necessary in the future. Isn't that the biggest advantage of crypto at the end of the day. Being able to transfer from one to the other with no middle man?

I agree with you there, it's not about exchanging it for fiat its about how much goods and services it can produce, that's what makes it worthwhile, like with HIVE each day the new HIVE created generates new content for the site, that's what crypto needs to do, to get people do exchange goods and services not only speculate on purchasing power

Hopefully we get there when its a big enough market cap

Gold, silver and Crypto are not my only Preps.
I've been a busy girl with other long termed essentials and more than one plan.

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You sure have been preparing for just about anything I am sure nothing will phase you :P fair enough, I am not that prepared

the funny thing is that many banks have invested in crypto like ripple, other smaller ones are accepted cryptos and even governments bought and stored a couple of cryptos!!

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Yeah but smaller cryptos can be controlled it doesn't take that much to force ripple labs to do what you want or 51% attack most of these smaller chains, BTC is the only chain that's reached a point where I think it cannot be taken down without a considerable amount of spending and collusion and each year it gets even harder.

a couple of years ago i remember some people on steemit that played with unknown altcoins. They bought large stakes, made them increase in prices a bit, sold everything and enjoyed some profits. They could manipulate the price easily

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LOL I was one of them bought a tonne of shit coins and I’m still sitting with them today waiting to dump

haha write them on your future will :P it could be a good joke.... or bad one :P

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Yes, of course. In Myanmar, the central bank also bans the use of cryptocurrencies such as Bitcoin.
Their reason is fear of money laundering.
But, we are looking for and collecting Crypto for the future. Crypto is being converted into Myanmar currency only through the exchange of friends who are working abroad.
This is not an easy task.
We will have to wait and see until our government allows it.

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But then it's surly more expensive to buy and sell crypto since peer to peer networks can set whatever price they want and not deal with order books with a lot of liquidity, so it only hurts your countries currency even further.

At least you can still collect HIVE and other cryptos and store it away from government control. I am sure they will have to give in eventually but governments can be pretty stubborn when it comes to giving up power

You are right, once crypto reaches a point, it becomes a trait to the government, and of course what is the usefulness of something when it can't be exchanged for something valuable and necessary needs of someone. We just hope it does not get to this extent because so many people lose a lot. Although government can't be trusted because they are group of hungry thieves but we pray it doesn't get to that point.

"I am a Jessie."

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If it gets to that point, I think people will have to either fight for their right to private property or move to a country that still respects private property rights.

Yeah, that's what will happen at the end of the day.

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governments are a bunch of maggots, but whatever they try to do they cause the opposite - censorship leads to more spread of information - i've never seen all the oppressed information spread so fast as it is right now - i'm sure they can balls up bullion and cryptos too

Lol oh I am sure if they tried it would push the prices up even higher as its now a premium to own these things and it would hurt that country as more capital flows into countries and currencies that do support it. So lets say my country blocks it, cash would flow into dollars and euros and then into gold and crypto and still weakening their currency.

They can surly try but they will fail, may look like a success in the short term but long term they kill the currency faster

It does suck for the individual, however, imagine being told you can't own your own stuff, in South Africa, we have a history of land repossession without compensation and they want to do it again or rather calls for it to do it again.

So I trust no one, I have my ledger and my seed phrases and I am off no ones stopping me

Jessie with coronawife. No worry But boooooooring be in house

Your wife got corona? Oh no I am sorry to hear that, maybe some smelly swedish fish will help her feel better 😝, I thought swedes don't do lockdowns?

we dont do lockdown. But if you have corona - you are suppose to stay home until you are well. And family members too.
I need to try the fish and see if I can soon go back to office. not easy to work here....

I hope your wife gets well soon so that she can go out and work and be away from her nagging husband 😋

Government's are the X factor in all this.

Hopefully, we can make them less of a factor in our lives in the future, or at least try to! There's only so much taxing and providing nothing for it, that people can take

Why you are so pessimistic ? If precious metals can not save, then what will ???

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I am not pessimistic I am saying precious metals and Bitcoin are not some panacea and while it can protect your purchasing power, it can't protect you from your government should they have ill intent towards citizens. A second passport and ties to other countries can come in handy in these situations

I think that your perspective is a very sensible one to have, matey.