Quote:
Originally Posted by baygo
Yes… in times of uncertainties (of which there are many now) equities will struggle.
The fact that money continues to move into gold (where it has always gone through times of uncertainty and inflation) tells me that Bitcoin is not replacing it as forecasted by the BTC exuberant.
|
Because the term ''fiat'' is misunderstood. Technically the USD was fiat when on the Gold Standard. The Congress decreed that an ounce of gold was worth X amount of USD and could change that ratio at will. Once the US left the Gold Standard the USD trades at market value based on what those selling/purchasing the USD value it at... so it is now market-based like BTC.
The difference argued by the BTC crowd was that BTC had a known limited amount that could be brought to market. But because it is digital... each ''coin'' can be infinitely deluted... not much different than dilution of the USD.
I think the best inflation hedge would likely be the I-Bond. Strength of the USD, but with the inflationary hedge built in.