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>I bought some crypto early on as a hedge against global politics going to shit (US, Russia or China going into proxy wars) or economics taking a dive (and gove
by BoxOfRain 5y ago
>I bought some crypto early on as a hedge against global politics going to shit (US, Russia or China going into proxy wars) or economics taking a dive (and governments/central banks deciding to devaluate, ...).
Genuinely asking as a newbie to this kind of thing, what's the advantage of using crypto over assets more traditionally used for this purpose such as gold?
- stavros 5y agoMuch easier to buy, transfer, secure, etc. I don't think it has much use other than speculation either, but it does have advantages over gold.
- HPsquared 5y agoCrypto is something you can "physically control" like gold (through being the only person who knows the key). Unlike gold it can't be physically stolen or confiscated. It can be easily authenticated (no counterfeiting). Unlike land or shares, or other paper assets it can't be transferred without the owner's consent. You can be 100% sure you actually do hold the asset. In a stable, law-abiding society these advantages are a bit pointless, but enough people either see the future as unstable and lawless, or currently live in unstable and lawless places, that there is market demand for crypto as a store of value.
- kamanjak 5y agoI guess as long as some guys with guns don't show up at your house and threaten to kill you, unless you open your binance app and send them all your crypto before killing you, you're fine.
- andruby 5y agoI think gold is also a reasonable hedge against certain instabilities. I don't own any gold because I'd be worried about securing it. While I do have some valuables in my house, most of it is easily replaceable.