I’ve always viewed currencies as a funny asset class.
When I founded Pure Blockchain Wealth, the price of Bitcoin was $850, and when we emailed our alert on Ripple, it was $0.27 (a month later, it was $3.00).
Cryptocurrencies are a new, disruptive, and unique asset class, but the central question is: can they co-exist for long, without government intervention and legislation?
What we already know is that paper cash, the actual notes that represent the diminishing purchasing power of today’s fiat currencies, are being deliberately taken out of circulation.
The next step for currencies is total digitization. It’s a clear path they’re following, and it looks like another major trend is the dethroning of the USD as the standard unit of accounting for global transactions.
Since the late 1960s, governments have been concerned with the U.S. Federal Government and its spending habits.
Instead of defaulting on the gold standard, they have decoupled the currency from a tangible convertible asset, such as gold. All governments have followed this path; thus we live in a credit-based system. It’s all pure debt floating.
As you can see, HIVE Blockchain Technologies’ Chairman, the world-acclaimed fund manager, Frank Holmes, has shown that inflation is not stated correctly, since the way it’s measured doesn’t take into account many vital components, such as food and gasoline.
Frank Holmes, the multimillionaire, who was one of the seed investors of major gold miners over the past three decades, told me that cryptocurrencies are going to change how fiat currencies are used today.
Like me, he doesn’t expect Bitcoin or any other digital currency to replace gold and silver.
What we both agree on is that gold is a key asset class for investors who fear political instability. It is also important when facing runaway inflation and negative interest rates, but it can’t be used as an effective medium of exchange these days.
Instead, blockchain-based gold-backed currencies can be instantly transacted.
Then, we also have the importance of Ethereum, which is a token that allows other applications to be coded on top of it, and it facilitates Smart Contracts, which are essential for including 3.5 billion undocumented and unbanked demographics into modern society.
In other words, what both Mr. Frank Holmes, a keynote speaker at global investment conferences, and I agree upon is that investing in both precious metals and blockchain tech offers complete diversification out of fiat currencies and is a major advantage versus old-school bonds and stocks.
Courtesy: U.S. Global Investors
As he has shown, cryptocurrencies are up big since tax day.
Right now, we are issuing a major alert on this COMPANY!
Our biggest catalyst is the fact that while the cryptocurrency market is large, the world of traditional stocks and bonds is much, much more robust. It eclipses the size of the tiny crypto market, so for traditional funds to enter the Ethereum or Bitcoin market, they need a connecting bridge.
In the fast-food business, the largest players, such as McDonald’s, Coca-Cola, and Heinz, are worth hundreds of billions of dollars. The same goes for the largest tech companies, such as Microsoft, Google, and Intel. This rule holds true for big oil, with Exxon and Chevron, valued at over $200B; yet, right now, the company I’m personally positioning in, through the traditional stock market, which faces zero ICO risks or bans, is worth less than $0.4B ($400M).
It is unheard of.
No one in his right mind would deem gold and silver obsolete, but to say the same about the “almighty buck” would be a grave mistake.
Currencies are morphing into a new asset class full of digital assets, which will make our economies more efficient. Blockchain stands at the heart of it, and Frank Holmes, who has been involved with the rise of the most profitable gold companies, is now planting his flag with the new way of diversifying out of the USD – the crypto economy.
To my knowledge, he hasn’t sold a single gold or silver ounce to do this.
He is, similar to me, building both positions, simultaneously.