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Hi, Can you elaborate on this.I am new to crypto

Joel_Mckay 2y ago
Crypto is a dollar backed fiat currency substitute, or outright scrip. https://en.wikipedia.org/wiki/Scrip https://en.wikipedia.org/wiki/Scrip Precious metals like gold are also a terrible investment, but do offer liquidity when currencies fail. For a single person, no more than 1.7% of your portfolio should contain such leaky holdings. In terms of investment, wait till the market crashes and buy freehold residential real-estate in larger growth cities with cash. This is the safest investment for amateurs. =3
- TeaBrain 2y ago
  >Precious metals like gold are also a terrible investment Both gold and silver have appreciated more in value than the S&P 500 since the start of this millennium.
  - Joel_Mckay 2y ago
    Typically, it tracks around inflation... but some people have cultural traditions around bullionism. Keep in mind I heavily invested in ubiquiti at $12/share after their early legal trouble, so am probably not the type of investor you'd want to study. lol =)
  - Aloisius 2y ago
    Uh. Gold and silver were near 20 year lows at the start of the millennium.
    - Joel_Mckay 2y ago
      Indeed, met a few bears from the silver futures market over the years too. I would lol... but some people lost everything, and that's never funny =3
    - TeaBrain 2y ago
      Yes, this is an example of different asset classes performing differently over different periods. The S&P 500 performed extremely well in the 1990s, and while the S&P 500 has performed very well since, it has not kept up the same level of returns as were seen in the 1990s, nor did it usually perform as well before the 1990s. I similarly didn't say that gold and silver always outperformed the S&P 500, nor that the performance of gold and silver vs the S&P 500 over the last 25 years is predictive of future periods. All that I referenced was that over the mentioned stretch of the last 25 years, gold and silver have been a sound investment. The story is obviously a little different since the start of post-GFC quantitative easing.
      - Joel_Mckay 2y ago
        Most index funds tend to have relatively stable growth... it is kind of the point. Personally not bullish on bullion, but good luck =3

Crypto is a dollar backed fiat currency substitute, or outright scrip. https://en.wikipedia.org/wiki/Scrip https://en.wikipedia.org/wiki/Scrip Precious metals like gold are also a terrible investment, but do offer liquidity when currencies fail. For a single person, no more than 1.7% of your portfolio should contain such leaky holdings. In terms of investment, wait till the market crashes and buy freehold residential real-estate in larger growth cities with cash. This is the safest investment for amateurs. =3

TeaBrain 2y ago
>Precious metals like gold are also a terrible investment Both gold and silver have appreciated more in value than the S&P 500 since the start of this millennium.
- Joel_Mckay 2y ago
  Typically, it tracks around inflation... but some people have cultural traditions around bullionism. Keep in mind I heavily invested in ubiquiti at $12/share after their early legal trouble, so am probably not the type of investor you'd want to study. lol =)
- Aloisius 2y ago
  Uh. Gold and silver were near 20 year lows at the start of the millennium.
  - Joel_Mckay 2y ago
    Indeed, met a few bears from the silver futures market over the years too. I would lol... but some people lost everything, and that's never funny =3
  - TeaBrain 2y ago
    Yes, this is an example of different asset classes performing differently over different periods. The S&P 500 performed extremely well in the 1990s, and while the S&P 500 has performed very well since, it has not kept up the same level of returns as were seen in the 1990s, nor did it usually perform as well before the 1990s. I similarly didn't say that gold and silver always outperformed the S&P 500, nor that the performance of gold and silver vs the S&P 500 over the last 25 years is predictive of future periods. All that I referenced was that over the mentioned stretch of the last 25 years, gold and silver have been a sound investment. The story is obviously a little different since the start of post-GFC quantitative easing.
    - Joel_Mckay 2y ago
      Most index funds tend to have relatively stable growth... it is kind of the point. Personally not bullish on bullion, but good luck =3