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Yeah exactly, Both Gold and crypto are hedge against inflation. An insurance policy that you buy once. Gold has its problems like getting physical gold. But if you have gold and it loses all of its value you can still use it as a paper weigh.DavAdmin wrote: ↑Thu Jan 06, 2022 6:17 pmI have invested in both physical gold and crypto. There used to be a gold-backed digital asset called DigixDAO but it went south some time ago, shame as it was a good concept.
They are essentially viewed as a hedge against inflation and the debasement of fiat currency which is rampant at the moment (Turkey is a good example, but it is happening everywhere on different scales).
The reason I am bring it up is I know of an example from the late 1800's. There was speculation in two Railroad stocks. The stocks climbed to 10 times what they were previously. then the bottom fell out, and almost took the US stock markets with them. That is because everyone was buying the Rail Road stocks on credit. people had to make their margin calls. Anyone that was interested in investing in the stock markets was already invested. so their was no more money available to come into the markets with the only exceptions being JP Morgan and David Rockefeller Which did do to save the markets and their own positions in the markets. The same thing happened in 1929 Speculation drove the rise of the markets people's greed convince everyone that would invest in the stock markets to borrow to invest That is when it crashed. Which it nearly always happens, as there is no money available to drive it higher.
People are not buying Crypto and gold on margin as far as I can tell.
“"I fancied myself as some kind of god....It is a sort of disease when you consider yourself some kind of god, the creator of everything, but I feel comfortable about it now since I began to live it out.” -- George Soros
People are buying a lot of crypto on margin. These massive dumps are caused by over-leveraged positions being flushed out resulting in a cascade in liquidations.
https://finance.yahoo.com/news/crypto-t ... 54827.html
https://www.nasdaq.com/articles/leverag ... dbox-today
Some exchanges offer up to 100x which is a quick way to get wrecked. These are just speculators, not investors though. Most who believe in the asset(s) will hold on to it, only taking profit now and then and riding out these volatile periods. The margin traders cause the 30% market crashes (though the Fed may have something to do with the current slump).
Edit: I moved all the crypto posts out of the HNY thread and into this one.