≈ Rocket Fuel or Tradition? ≈
Traders,
When it comes to storing value there is the old guard mentality and the new way. The old guard mentality for storing wealth used to come down to holding either bonds or precious metals, specifically gold. Traditionally gold have been very gold at storing wealth and fighting inflation. I once read that the value of a gold coin in the late 1800’s was enough to buy an entire men’s suit including the top hat and tails. With today’s price of gold I would surmise that one could do the same and therefore gold has proven to be a reasonable hedge against inflation. Gold and bonds may not be the only way to store value. Today we have another contender for the title of best value holder and that would be our friend bitcoin. Lots of folks believe that bitcoin is the new way of storing value and even though it doesn’t have the history of gold it maybe the next big thing for fighting inflation.
This is a tale of two different beliefs and also a tale of two different directions. Bitcoin has been rocketing to the moon from a price perspective and our friend gold has been trending in the opposite direction. This comes down to the beliefs of the participants and by looking at the price of the bitcoin futures the belief is strong that bitcoin is the way to go when it comes to storing value. There are those who still believe that gold is the ultimate store for wealth. It remains to be seen which becomes the better of the two but in reality it could be a little of both and ultimately it is up to what you what you believe.
Whichever way one chooses to participate in the fight against inflation it is prudent to pick the appropriate spots to add the position. This means using sounds technical analysis to pick the right levels to enter a position whether that be in gold or bitcoin.
#TeamTackle
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Bitcoin Futures
Bitcoin Futures (Ticker: /BTC) Bitcoin is skyrocketing right now as it seems that institutional investors are jumping on the bitcoin trend.
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