With the risk of offending bitcoin or silver investors, I think this is a question worth asking. I have been investigating and tracking these assets for some time. In my opinion, it's not a problem at all. You must own both.
I believe that silver and bitcoin remain underestimated and that the market bases for both of these assets look very strong. The point is, like bitcoin, silver passes through conventions. Participating in them can be of great benefit.
So let’s review the concept of bitcoin, and draw a parallel to better understand the potential for silver.
The Bitcoin case:
Born of its noble origins of 2009 after the financial crisis of 2008-2009, a long distance has come, rising sharply in value since its earliest days. Today, its influence is not limited to nature, it is inevitable.
Consider that US Fed Chairman Jerome Powell recently told the IMF-led digital payments panel that 80% of the world's largest banks are monitoring central bank digital transactions (CBDC). He added, “We think it is more important to get it right than to get it right and to get it right means that we are not only looking at the potential benefits of CBDC, but also the potential risks, and we are also aware of important trade-offs. ”
As for being the first, Powell may have been responding to the head start for China, where they are already exploring in selected cities, and plan to launch their digital currency later in the year.
European Central Bank president Christine Lagarde also said the ECB was seriously reviewing the euro's digitalization.
The traditional forms of traditional currency not only mean that it will be easier to create more, but also more self-regulatory. It definitely borrows more loyalty from bitcoin. As investors find that it cannot be tampered with or controlled, and has the total number of units (21 million) to be mined, they will draw the other way too high
That is why bitcoin is seen as a safe haven. It has become readily available in a growing number of digital currency exchanges, and has been widely distributed by payment processors such as Square (recently bought $ 50 million Bitcoin and Paypal. It is being accepted by big name retailers Microsoft, Starbucks, and Whole Foods, as the list continues to grow.
And bitcoin ownership is growing exponentially. The number of bitcoin addresses with a balance of $ 1,000 or more has just hit the top. JPMorgan recently said it expects that over time bitcoin will grow in popularity for thousands of years, and Kanye West has simply reiterated his support for other currencies such as Bitcoin.
Bitcoin-Silver Similarity
Much of what I have said about bitcoin is also true with silver.
It is not easily produced, there is a limited supply, it is seen by many as money, and it is a safe place. And it can't be sprayed.
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But a few things are different between silver and bitcoin.
In particular, the "elite" ignores silver. There it is, cheaper, and a smaller market.
And unlike bitcoin, the silver supply does not end there. And as I said before, only 28.7% of the new silver supply comes from major silver mines. 71% of freshly ground silver is produced only as a by-product of other metals such as gold, copper, lead and zinc. So much of the freshly squeezed silver is not driven by its price. If silver prices rise sharply, that does not mean more production.
Here are probably some of the most interesting comparisons. According to Steve St. Angelo's RRSrocco Report ($ 1,300 gold and $ 20 silver), total global investment gold worth $ 2.93 trillion, all mines to date cost $ 240 billion, and total silver market investment invested in $ 52 billion.
My main take is obviously not to throw silver against bitcoin. Instead, point out their similarities, and the opportunities they offer going forward.
Investors should not view these options as one option. Instead, they should simply have silver and bitcoin.
Yes, they can be flexible. But they both have wild cattle markets ahead of them.
And thus it is more important than any diversity.
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