1. Gold, like bitcoin, is hard money. It's value is not based on the decree of any government. No matter what happens, you end up with some gold and some bitcoin.
2. You can buy and warehouse gold at a reputable vault in any stable jurisdiction. Bank accounts are always subject to counter-party risk and even treasuries could be "frozen" by the US govt if they decided they didn't like the entity holding them.
3. If you consider fiat currency to be the cause of all debasement and debauchery that has wrecked modern society, holding it as a (significant) asset is a moral dilemma.
BONUS: Gold is the asset by which central banks defend their currencies, buying up their gold away from them is accelerating their demise.
Tether claims to have 58% in treasuries, which if it's true, and I kind of doubt they'd so blatantly publish a lie, makes them better capitalized than practically any bank in existence.
As far as the exchanges, instinct tells me that for the most part, the damage is done for this cycle - but I wouldn't be at all surprised to see some more crypto/legacy crossovers get rekt as the FED continues to tighten.
In any case, we're going to be living in caves catching radioactive fish before my bitcoin goes in the red.
@cjd I am out of crypto until they pull the plug on Tether and the crime lords running the exchanges with no transparency. I wish you luck, but its a rigged casino and I cant predict the moves at all in that world.
@cjd inflation will rob our savings. I am mostly cash at the moment too, but waiting for the year to get going. Will be looking at Forex and commodities certainly staying away from equities most of this year.
Enough cash to feel safe in a deflationary cycle, but other than that all BTC. If I weren't tax disadvantaged I'd swap BTC for XAU during bull runs and swap it back, but as it stands it's not worth it.
I don't trade, I just try to save and stay out from under the banking parasite steamroller. I'm definitely watching the FED printing enormous piles of cash over and over and I'm thinking they must be playing some unwinnable game, I would not mind to be on the other side of that table...
@cjd he's actually long a few things, or was. might not be now.
I always see it like being a Remoras fish, our small size permits us to run in and grab a handful of profit then run out again. Its getting caught up in the herd moves that is the problem.
Having said that - and I trade every day - I find it almost impossible to truly break from the psychologically obvious moves. FOMO always plays a part.
I also look for trades where I can avoid enforced Stop entries which get hunted.
@cjd question of the year bro, I follow a few decent minds on twitter who get it better than most I can share their handles here but they arent on Mastodon.
99% of experts are clueless. I am one of the clueless but not an expert, but I know that and it is an advantage. I'll post some link follows below. not gospel to follow, just good for clues that many others dont see.
@cjd in no particular order I think these commentors have insights into the markets of which you speak, but doesnt mean I think they are always right and for gods sake dont follow them into trades blindly -
The problem with this particular thing is it's a bit of a poker game... If they're going to borrow and short an asset, you can try to short squeeze them but they will always raise you until you're out of cash - AND you can't really rely on that asset being in demand because they can also harm the real economy enough to prevent people being able to buy it up.
Best I can think of it playing the BTCXAU cycle, but this takes like 4 years so it's a bit limited how much you can make off of it... then there's the Michael Burry "Short Everything" play...