Bitcoin & Gold as Hedge Against Financial Collapse (2019)

Bitcoin & Gold as Hedge Against Financial Collapse (2019)



historically speaking gold has always been used as a hedge against financial instability now part of the Bitcoin narrative the common story that were always told and that we're probably telling other people to ourselves I'm certainly guilty of that is that Bitcoin will be the future hedge against financial instability now someone recently noted I believe crypto LARC did a video on it and I've read a bunch of articles about it too that for some reason right now there's an inverse relationship between gold and Bitcoin this has been going on for approaching six months or so I believe now why is that how come when gold goes up Bitcoin goes down as you can see here and here this raises the question are we wrong what's going on here is Bitcoin not ready yet to be perceived generally speaking as a hedge against financial instability now the recent trade war between China and the US and SF today apparently also Mexico has caused a little stir and worry in the financial markets this has caused some people to raise the question why is gold price going up when Bitcoin is not this seems a little disturbing on the surface level but in order to really talk about this in a qualified manner let's look at 2008 the financial crisis it was triggered when the Lehman Brothers investment bank the Lehman Brothers collapsed completely on September 15 what happened with gold prices back then that was that the two days following immediately after the crash of the Lehman Brothers gold saw a price increase of roughly 18% this happened in less than 48 hours very significant but what happened after that was actually that the gold price tent completely and it stayed down for 40 days 40 days guys after 40 days it started gaining again and it actually entered a period that would last two years with consecutive growth total growth of around 180 percent so I just wanted to point that out we can see how that looks up on this chart that counterintuitive as it seems the first thing that happened was that people jumped into gold or some people did at least then there was a major sell-off it lost like 28% or so in a very short period of time speaking of gold now before it started gaining so rain again now about two weeks ago the Fed in the US issued a statement saying that they're not going to touch the UM the interest rate right now they're going to leave it where it is now and they perceive the US economy is being healthy but that was followed by a rise in gold prices but again it may just be coincidental and I think one of the reasons we're seeing this delayed effect is that we're talking people who are struggling to yet to just keep their money basically because if we're seeing a looming financial crisis if you're pretty sure that it's about to happen you probably consider your next steps very very seriously traditionally speaking I believe this is me passing on secondhand information but I believe the traditional approach is to enter bonds they are generally speaking perceived as safer bets they give smaller yields but they're more safe historically speaking again then stocks even blue chip stocks but in a true recession and many analysts believe that the next recession whenever it hits it's us all is gonna be far far worse than 2008-2009 and if that is the case people are certainly looking for some sort of hedge against this crisis so when we're talking about these big macro trends we can't assume that the news come out and then the market reacts it takes time to develop these were just some of my thoughts on the matter and please do consider subscribing to this channel it doesn't cost you anything but it has value to me something else today is the global release of the in it for the money for the money that you've been hearing in the background and in some of my past videos as of lately if you want to support independent artists aka my wife please click the link below this video consider picking up the single it's 99 cents and yeah it'll make the world a slightly better place and also please do remember there are no guarantees in crypto but there is plenty of opportunity thanks for watching in it for the money

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About the Author: Maximilian Kuhn

21 Comments

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  3. There are “Ifs” to explore. Global war = financial markets destroyed. BTC won’t have a place IF the World Wide Web is down for months if not years. Gold and silver will most certainly be used (as historically has shown) during post war hardships. That scenario of course may have many variations. Bottom line is paper/digital assets will be sold off in favor of supplies to sustain life.

  4. We are seeing a delayed effect because people, upon reflection, conclude the Fed Reserve & US Govt are lying to us – I mean, being disingenuous- and we need to fortify our personal asset reserves because the govt. with 23 trillion in debt won't be strong enough to bail out banksters, much less its citizens.

  5. speaking of Gold pick up a few ancient gold coins from the classic Greek and Roman eras, costly, but limited edition! not even too costly really. .

  6. Just wait til' Bitcoin hits the financial markets… Bankers will short the shit out of it like they did Gold for 30 years. 🙂

    Gold and Silver went up after the financial crisis as the bankers, especially bear sterns couldn't short it anymore until the other bankers got involved years later with the bail out. They are going to do that with Bitcoin 🙂

  7. Buy Gold Silver also mine shares will yield higher gains than Gold but always spread into 5 or six assets not one .Shares are very ify so are bonds .Good crypto will do well long run so will land .

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