Diversify Or Go For The Whole Pie?
In this devastating global economy people are looking for relief. Some people find hope in gold, silver and other traditional assets used for store of value. I remember helping a gentleman acquire vintage automobiles and at the time he had expressed to me that he felt they were a more secure asset than real estate.
Others are putting their confidence in cryptocurrencies and cryptoassets such as Bitcoin, Ethereum and some lessor known coins or tokens. So, what do you believe is a good store of value?
Gold and silver have a legacy value that cannot be denied. Even with the exciting potential of cryptoassets such as Bitcoin and Ethereum, I still see no good reason not to hold gold and silver. However, it seems many are very focused on only one asset. They are either a "gold gal" or a "Bitcoin guy" and don't have any interested in diversifying.
I don't like to put all my eggs in one basket. If Bitcoin is going to $10,000,00 a coin as many claim, why not just make it a part of your portfolio? If it is true, you don't need a lot of them. Others argue the same for gold, that it could hit rather large numbers as well. In that case, I'd rather have a little of both than a lot of one. A game of heads or tails where you win either way sounds fun to me.
Still, all cryptoassets are highly speculative high risk assets. Its the pioneer days for the blockchain industry and what will and will not hold value in the digital asset space is rather debatable. But I'd like to share some of my thoughts about good tokenomics.
Why I Like Ethereum
Bitcoin, the network, was designed for the purpose of securing and transmitting the digital coins that were intended to serve as a currency separate of any nation. It can be said that the rules governing Bitcoin match Austrian economic principles. Its value comes from general social consensus of its value.
Ethereum is a network that was not designed for its coin Ether, actually, it is the other way around. Ether was designed to be like a fuel that powers the network, providing incentives to miners and keeping network activity efficient. This then allows Ethereum to act as a platform for applications, contracts and assets. Ethereum's network is valued because it is a Security As A Service blockchain for your financial needs.
I am a fan of the ether cryptocurrency precisely because it derives its value from being useful to individuals and businesses in this way. Ethereum acts almost like a digital vault for all your assets.
Why I Like DigixDAO
Digitizing gold on the blockchain has not been perfected yet. You have Chainlink working on it and DigixDAO, but there are plenty of fair complaints against these methods for the time being.
What I like about DigixDAO is that this project is 100% focused on connecting gold to blockchain. Its a difficult challenge, but also well worth the effort. The gold market is worth trillions in US dollars and it would be a pity if gold investors go without this service. Its a tragedy for the blockchain industry to miss out on the opportunity to provide the service. So I am hopeful that satisfactory proofs of possession can be achieved with this project.
Why I Like Monero
I like cryptoassets that have a fundamental use case outside of means of exchange or store of value. And that is why I like Monero. Some folks try to downplay the importance of privacy, but not me. Let's face it, if one day you find yourself in the market for Viagra or penis enlargement pills its not gold, bitcoin or a credit card you want to go with. Monero is the right choice.
Are you sick of your wife checking the credit card summaries to see if you're still subscribed to Plumpers magazine? Monero... Don't want your husband to know just how much money you spend every month on beauty products? Monero... Try to imagine the many ways marriages can be saved around the world with Monero.