News & Opinions About Gold & Silver

June 06, 2023

Cryptocurrencies Neither Rare Nor Limited

Cryptocurrencies Neither Rare Nor Limited

We found these interesting thoughts from the Wall Street Journal on cryptocurrencies that we want to share with you.

“Cryp­tocur­ren­cies are sup­posed to be a hedge against in­fla­tion be­cause is­suance is usu­ally re­stricted. But that’s only true of an in­di­vid­ual cur­rency. As an as­set class, cryp­tocur­rency in­fla­tion is ram­pant: There are now more than 5,000 coins.

Gold never faced com­pe­ti­tion from dozens of new pre­cious met­als hit­ting the mar­ket each month.

Gold be­came a store of value be­cause through most of his­tory it was also a medium of ex­change: Coins were once minted from it, and pa­per money was long backed by it. If crypto never finds ac­cep­tance as a medium of ex­change, its use­ful­ness as a store of value is also in doubt.”    WSJ 5-21-21