If only you could have a time machine for five minutes, what would you use it for? If you’re like most people, you would go back to see the winning lottery numbers and then buy the ticket. Or you could invest in companies like Google, Facebook, and Microsoft at the time when they were first forming.
Another thing you could use it for is to buy Bitcoin when it was just 39 cents. Now, when we realize how little money would have made us extremely wealthy, it’s easy to look at every opportunity with new eyes. We’re not all lucky, and unfortunately, we can’t turn back the clock when time has already passed. Now, we’re looking for the next big thing. Click here to read more.
That could be a new brand of sports shoes, a new piece of tech, or the newest smartphone. But, the chances of striking a fortune from a single investment are slim. The newest thing at the moment is the crypto-mania. Everyone you know is talking about it.
This is the topic of every single conversation ever since Bitcoin crossed the 64 000 marks. Even banks are talking about it, and governments are looking for ways to regulate it. Blockchain technology has gotten so big that it can’t be ignored. Then, what should investors do?
Diversification
Investors are always looking for new assets that could bring them money. That could be a new piece of real estate, a new startup, or a new dividend stock. Almost all of them don’t keep their money locked in a safe, nor do they keep it as cash.
That’s because the dollar itself is a depreciating asset. Its value decreases every year. The average inflation rate starts at 2 percent. However, this past year has been so destructive for the economy that it’s definitely higher than that.
As an investor, you need to find something that’s going to serve as a hedge against this rising rate. The answer to that comes in two forms. Individually, they might be risky. But, when you combine them together, it would be like having control over both sides of the same coin.
Either way, it falls, you win. That’s what you get when you combine a Bitcoin and precious metals IRA. Both of these options together create a powerful portfolio that’s going to be future-proof. Follow this link for more info https://www.ig.com/uk/trading-strategies/how-to-trade-and-invest-in-a-bear-market–top-5-strategies-210728.
Defining the characteristics
We can all agree that there’s a limited amount of gold on the planet. At the moment, there are around 200 000 tons of gold that are above the surface. In a couple of years or decades, the rest is going to be mined. After that, there’s no more.
Based on the simple law of supply and demand, the prices are going to skyrocket. Now, let’s look at Bitcoin. There are only going to be 21 million Bitcoins in existence. After the number gets reached, there’s no way in which the network can generate a new one.
This means that it’s immune to inflation. At the moment, 18.4 million Bitcoins have been mined. As time goes by, the rewards miners get are going to be lower, and the prices are going to be higher. The best way to get into crypto was in 2009, when it first started.
The second-best time is now. It’s the same as planting trees. The best time to plant a tree is twenty years ago, and the second-best time is today. Both of these assets are the same. You can read this metals investment guide for gold, silver and even bitcoin for more info. Gold doesn’t need a lot of explaining, but the latter is a virtual representation of it.
The blockchain technology behind it is revolutionary, and new projects are coming up every day. Now, more than 9000 cryptocurrencies exist. All of them are trying to improve upon the imperfections on the first one. However, the first company that dominates the market always gets too big to fail.
Most investors are still skeptical, so this means that it’s the perfect time to enter. The 2008 crisis showed that even real estate could be a bubble. However, throughout history, there has never been a gold bubble. This just proves how stable these assets really are. You’re essentially getting the best of both worlds and getting their long-term worth combined.
