Quote:
Originally Posted by lamboguy
it is taking me a long time to comprehend bitcoin. but the basis of what it is all about is to protect the holders of it from governments all over. governments throughout the world confiscate their citizens money, either by inflation or taxes. for example in our country we now have a 2% inflation rate which excludes food and energy. i can tell you that both food and energy have gone up over 20% year to year. when you add up all the taxes we pay its way over 50% of what we earn. they take our tax money and redistribute it to others that the government favors.
strange as it seems, money has chased bitcoin and not precious metals. in the past 2 years gold has only gone from $1050 per ounce to $1250 the ounce. i suspect that will eventually change though because precious metals have a 5000 year history of protecting the holders against governments and outside forces.
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WTI closed at 50.36 on 7/7/2016. Here's a price history for reference:
https://www.eia.gov/dnav/pet/hist/Le...PET&s=RWTC&f=D
I'll give you the benefit of not forseeing today's 5% drop but if energy prices were up 20% that would put WTI north of $60 instead of south of $46.
And I know I'll never shake anyone off their love of gold which is something deep and emotional and, like any other love affair, immune to rational analysis.
But since 1900, gold has deeply underperformed the total return of both stocks and bonds. It's held it's own against cash. Gold has returned an annualized 1% vs. 0.9% for just sticking your savings in a money market account.
