Tesla just hit $1,100 per share and we now hear news that bitcoin dipped below $60k!
Tesla stock is now arguably a collectible item with exciting experience. You get to share the outcome of Elon Musk’s achievements, you have people on twitter to have chat one – where they are tesla fans or anti-fans- there is plenty of things to talk about when it comes to Tesla.
Bitcoin – it seems like everyday it is going up and probably for right reasons. There are more people owning bitcoin – wider ownership base means the dip will get bought harder or will have less impact on price. there is upward pressure here with rising institutional ownership and ETF demand.
However, high volatility that has been intrinsic to bitcoin price keeps short sellers at bay. However, the volatility is a two-edge sword – the volatility itself “protects” bitcoin price, but that will also prevent bitcoin’s widespread adoption as a true “currency”. As a medium of value exchange, we need to have some predictability of value – you don’t want to sell something and get bitcoin – only to find out that bitcoin value dropped 20% next day – essentially you sold something at 20% discount due to currency risk. This makes financial planning impossible for anyone or any corporation.
HOWEVER, there is one collectible item that is shiny (looks very pretty), served as relatively stable currency for civilization, can be owned and traded physically (not at a brokerage account or internet), and most importantly NOT GETTING ANY ATTENTION RIGHT NOW.
What is it? GOLDDDDDDD
With increasing inflation as the fed reserve printer goes BRRRRR and increasing monitoring of citizen’s financial handling by the government, it only makes sense to me to own gold to 1) hedge against hyperinflation and 2) take my financial dealings off the grid.
Neither Tesla stock (which I own because I love what they are doing and cherish the experience as a shareholder) nor bitcoin (I don’t own) provides those advantages.
I am targeting 5-10% of my net asset to gold.
Why not silver? If bitcoin and tesla taught us anything, it is that we should ALWAYS FOCUS ON CATEGORY LEADER.
In the world of previous metals, GOLD IS KING
Happy investing!
