When the Central Banks finally lose control of propping up the markets, will the big money be made in owning gold, silver or crypto-currencies? This is the question many investors who are focused on “alternative assets”, outside the typical mainstream stock, bond and real estate markets, are asking.
Most investors who have been concerned about the massively inflated bubble markets and the greatest financial Ponzi scheme in history, have been investing in gold and silver. However, a new kid on the block, called Bitcoin and the other crypto-currencies, have gained a lot of attention due to the huge increase in their prices over the past few months.
So, now many investors are wondering what to make of these extremely volatile crypto-currencies and if they are nothing more than purely speculative and gambling vehicles. This is a logical assumption based on the massive spike in many of their crypto-currency values.
That being said, Charles Hugh Smith wrote the following in his article, Projecting The Price Of Bitcoin:
This was very interesting analysis done by Charles Hugh Smith who is one of the more bright minds in the alternative media community. I have watched Bitcoin out of the corner of my eye over the past few years, but have not placed much attention on the leading crypto-currency.However, as the price of Bitcoin and crypto-currencies have surged over the past several months, I decided to take a closer look… to see what all the hubbub was about.
What I found out was quite interesting. Bitcoin’s price rise is not just based on mere speculative flows (as many assume), but rather it’s also rising due to the skyrocketing energy and capital costs to produce each coin. Yes, there is a lot more to this, but there is some method to the madness.
Charles Hugh Smith understands this and realizes that cyrpto-currencies will likely to continue to gain in price, interest and market cap going forward due to the way they were designed. Now, I am not saying I totally agree with Charles, but there is more behind crypto-currencies than just mere speculative flows into digital assets.
