Cryptocurrencies Vs Silver And Gold: No Contest

– by Zoltan Erdey

Is it unfair to amalgamate Bitcoin and the other band of crypto-brothers with historical ‘investment’ frenzies, like the tulip mania (17th century Europe, Dutch Republic), the South Sea Bubble (early 18th century England), or the ostrich feather bubble in the late 19th early 20th century? Perhaps. But, without a doubt, the cryptocurrency mania that is starting to gain mainstream recognisability certainly shares a number of similar traits and characteristics with other historical investment fads. In fact, I don’t think that an honest investor (who takes the time to study history) will be oblivious to the fad-status of some of the more popular cryptocurrencies available on the market today.

The cryptocurrency risks
Here is the caveat: ‘if you don’t hold it, you don’t own it’. I am convinced that silver and gold are superior long-term assets to hold to any cryptocurrency. In fact, I think that the most recent parabolic price movement of some of the more popular cryptocurrencies is a prelude to the future price movement of silver and gold, once the price manipulation and suppression comes to an end. Once this takes place, I believe that there will be a massive number of people flooding into physical precious metals. After all, silver and gold still remain on top of the food-chain in terms of safe haven assets given that they have no counter party risk. Bitcoin, and all other cryptocurrencies, do indeed have numerous counter party risks associated with them.

Invest in precious metals 
I would caution discerning Christian investors from sacrificing physical silver and gold on the altar of cryptocurrencies. And to those who were lucky enough to enter the Bitcoin trade early and make large profits over the past couple of years, perhaps there is wisdom in taking the original capital invested, convert it to physical silver and gold, and then use those profits only to continue riding the cryptocurrency wave. If indeed the bubble does pop, not all is lost. Only the profits, which is palatable given that purchasing the cryptocurrency was a speculative trade in the first place.

What would Jesus do?
Jesus develops the theme of stewardship with parables about property and money (Mat 25:14-30; Luke 12:42-7, 16:1-12; 19:11-27). These are all things one can hold, or stand on. I wonder if Jesus walked the earth today, would He teach positive lessons about managing wealth with cryptocurrency parables?

JOY! Magazine (September 2017)

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