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Why Gold Is Just As Likely To Collapse As The Bitcoin

For the majority of its known existence, gold has been thought of as the most valuable form of currency in the world. Analysts and experts will go on and on about how gold is the only true currency. It may be wise to not listen to these so-called experts.

Why Is Gold Valuable?

The main reason that gold hold value is that we give it value. The more demand there is for it, the higher the value. Analysts will often say that if the governments of the world were to collapse, gold would be the major form of currency. What you need to do is ask why. Think about this for a moment, if the governments were to collapse, what use would you have for gold bars? It’s more likely that items such as gasoline, ammunition, and food would hold the most value.

More Inflation Means Higher Value of Gold

This is not true at all. Financial experts argue that the rate of inflation around the world is constantly increasing, stating that governments continue to print paper currency at alarming rates. They go on to say that this inflation will lead to paper currency losing it’s value, moving gold further up the chain of valuable currency. The fact of the matter is that governments closely monitor how much currency they print in relation to their gold reserves. If so much paper currency is being printed, then where is it? Part of the reason that analysts attempt to scare the public with tales of inflation is in order to increase the value of gold. The good thing about cryptocurrency is that you can use Crypto Signals to further and enhance your investment.

Gold Could Follow the Route of Bitcoins

Bitcoins came into existence in 2009 and ever since there has been billions of dollars in transactions involving this digital currency. Early on financial experts were divided as to the true value of Bitcoins. For those that stayed out of this market, they are probably laughing at those that invested fortunes in the currency. The same could happen with gold, just as easily.

During the course of a day, it is not uncommon for the price of gold to drop 10% in value. Bitcoins managed to lose $100 in value over the course of minutes. This is again due to demand. Once people started backing out of the Bitcoin market, others followed. This created a snowball effect until the value eventually crashed. All that needs to happen for the value of gold to follow this route is for the demand for it to drop. If that 10% drop scares enough people into dumping their gold investments, others will follow to make sure they aren’t the last ones holding gold. Then, before you know it, gold will become worthless.

Gold Paper Weights

As stated, if the governments crumble, gold will not have any real life worth. It basically becomes a shiny metal paper weight. You won’t be able to power your vehicles with it, defend your home with it, or consume it for nutritional value.

Jaime
Jaime London is a writer, contributor, editor and a photographer. He started his career as an editorial assistant in a publishing company in Chicago in 2009.