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A lot of these exchanges have suddenly died because they printed more currency than could be reasonably liquidated on short notice. And borrowed heavily against
by dpbriggs 4y ago
A lot of these exchanges have suddenly died because they printed more currency than could be reasonably liquidated on short notice. And borrowed heavily against these tokens.
When the bank goes bust there's insurance on your deposits. If the amount stored is greater than that insurance you may want to invest the difference.
And gold is practically hard to work with and barely functions as an inflation hedge (point 1) over reasonable time periods (your lifetime).
- codedokode 4y ago> When the bank goes bust there's insurance on your deposits Usually it covers only limited amount, not full deposit. In US it seems to be generous $250 000 but in other countries it is much lower (e.g. just about $20 000 here). > gold is practically hard to work with and barely functions as an inflation hedge And deposit interest rates are often below inflation in developed countries.
- awinder 4y agoAnd gold costs money to store, i.e there’s an interest rate charged to you. Its value does change though — in positive & negative directions that don’t correlate to inflation or an underlying monetary fundamental. Because it’s not money or a money equivalent.