This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!Is gold one step away from Bitcoin?Bitcoiners often say that gold bugs are only one step away from becoming Bitcoin adopters. But is investing in gold really that similar to Bitcoin?When it comes to owning gold, investors only have a few options on how they can gain exposure to the asset. The truest form of ownership, bullion, comes at the cost of paying a premium, potentially 5% or more over the spot price. Because of the premium, bullion investors are required to wait for a rise in price just to break even. Physical gold owners also have to consider proper storage and IRS approval if they want the gold they own to be a part of a tax-advantaged investment account. These inefficiencies leave investors with a dilemma - invest in paper gold and give up true ownership, or truly own your gold and manage premiums and security.With the passage of time, investors willingly forgave ownership and opted into paper gold alternatives such as certificates, stocks, funds, fractional reserve bank accounts, and futures contracts. If you think the gold trading market isn't that big, you are mistaken. Yes, half of the world’s gold is in jewelry, but about 30% is used for investment purposes. Furthermore, the new distribution of demand for incoming gold in 2020 has more than doubled on the investment side compared to demand in 2019. The onset of COVID had profound impacts on gold investors. Investors were once again reminded why owning gold matters - it stores your value in times of uncertainty. The irony is that gold investors once again faced the dilemma of pseudo ownership for a deal or physical ownership at “sky-high premiums.” Gold did appreciate in value, but COVID revealed that the common practices of investing in the asset are squarely at odds with the desire to actually own the asset. This is why Bitcoin matters.If gold investors are willing to step into the world of paper gold and forgive ownership in its truest form, wait until they realize they can have their cake and eat it too with Bitcoin. Bitcoin offers investors the ability to choose true ownership without having to buy into rising premiums or pay for physical storage - once again limiting ownership. Furthermore, Bitcoin offers far better liquidity than paper gold at the same level of ownership as physical gold. Gold will never simultaneously offer true ownership, simple storage, high-level liquidity, and low premiums. Stating that Bitcoin is just one step away from gold is an oversimplification that does not do this emerging asset class justice. Bitcoin is an evolution of gold, a 2.0 version, retaining the same narrative and value proposition in a 21st-century style. In just 12 years’ time, both early adopters and legacy investors are finally realizing the better option - the one that's on a path to improve and re-envision global finance.Reminder: Friday emails are slightly more focused on education, and less on trades and setups. The altcoin market continues to look a bit difficult to navigate - hoping that it will look better next week!I am considering a few changes to make each day more focused on something specific, like education, new project reviews etc., so I will keep you updated. I am always looking to improve the newsletter!In This Issue:Is Gold One Step Away From Bitcoin?Bitcoin Thoughts And AnalysisBonds And Yields 101An NFT Sold For $69mEthereum May Scale By 100x SoonGerber Kawasaki Purchasing Digital Assets For ClientsMy Recommended Platforms And Tools
The Wolf Den #197 - Gold
The Wolf Den #197 - Gold
The Wolf Den #197 - Gold
This newsletter is sponsored by PHEMEX, the only exchange that I use to trade crypto with leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out - you know that I never endorse a product that I do not use!Is gold one step away from Bitcoin?Bitcoiners often say that gold bugs are only one step away from becoming Bitcoin adopters. But is investing in gold really that similar to Bitcoin?When it comes to owning gold, investors only have a few options on how they can gain exposure to the asset. The truest form of ownership, bullion, comes at the cost of paying a premium, potentially 5% or more over the spot price. Because of the premium, bullion investors are required to wait for a rise in price just to break even. Physical gold owners also have to consider proper storage and IRS approval if they want the gold they own to be a part of a tax-advantaged investment account. These inefficiencies leave investors with a dilemma - invest in paper gold and give up true ownership, or truly own your gold and manage premiums and security.With the passage of time, investors willingly forgave ownership and opted into paper gold alternatives such as certificates, stocks, funds, fractional reserve bank accounts, and futures contracts. If you think the gold trading market isn't that big, you are mistaken. Yes, half of the world’s gold is in jewelry, but about 30% is used for investment purposes. Furthermore, the new distribution of demand for incoming gold in 2020 has more than doubled on the investment side compared to demand in 2019. The onset of COVID had profound impacts on gold investors. Investors were once again reminded why owning gold matters - it stores your value in times of uncertainty. The irony is that gold investors once again faced the dilemma of pseudo ownership for a deal or physical ownership at “sky-high premiums.” Gold did appreciate in value, but COVID revealed that the common practices of investing in the asset are squarely at odds with the desire to actually own the asset. This is why Bitcoin matters.If gold investors are willing to step into the world of paper gold and forgive ownership in its truest form, wait until they realize they can have their cake and eat it too with Bitcoin. Bitcoin offers investors the ability to choose true ownership without having to buy into rising premiums or pay for physical storage - once again limiting ownership. Furthermore, Bitcoin offers far better liquidity than paper gold at the same level of ownership as physical gold. Gold will never simultaneously offer true ownership, simple storage, high-level liquidity, and low premiums. Stating that Bitcoin is just one step away from gold is an oversimplification that does not do this emerging asset class justice. Bitcoin is an evolution of gold, a 2.0 version, retaining the same narrative and value proposition in a 21st-century style. In just 12 years’ time, both early adopters and legacy investors are finally realizing the better option - the one that's on a path to improve and re-envision global finance.Reminder: Friday emails are slightly more focused on education, and less on trades and setups. The altcoin market continues to look a bit difficult to navigate - hoping that it will look better next week!I am considering a few changes to make each day more focused on something specific, like education, new project reviews etc., so I will keep you updated. I am always looking to improve the newsletter!In This Issue:Is Gold One Step Away From Bitcoin?Bitcoin Thoughts And AnalysisBonds And Yields 101An NFT Sold For $69mEthereum May Scale By 100x SoonGerber Kawasaki Purchasing Digital Assets For ClientsMy Recommended Platforms And Tools