Diversify Your Portfolio – Gold, Silver, and Bitcoins

Investing is something that anyone who wants to have control over their finances, should do. Additionally, the investment portfolio should be very diverse, so that it can remain strong against volatility in the markets. Two forms of investment are, on paper at least, resistant to volatility: precious metals and cryptocurrency, and the latter has created a real storm.

The Storm in Cryptocurrency

You have probably heard of Bitcoin, which has been the posterchild for cryptocurrency the world over. More of these currencies now exist, many of which are available through social media. What sets these currencies apart is that they are all open source and decentralized. That means they are not controlled by global banks or governments, and that the people actually own the currency. This decentralization is what makes it such an interesting investment, because it means that it is not affected by inflation and deflation. Cryptocurrency is becoming such an interesting investment that companies like Prescott Regency have been formed specifically to help people use them. Not just that, they have taken things a step further and use cryptocurrency provision as a way to ensure everybody in the world can have access to secure financial services. Considering millions of people are still unbanked, this is a very positive development.

Three Types of Investment

There are three types of currency investments:

1. Cryptocurrencies.
2. Precious metals.
3. Fiat currencies.

Each of these three responds differently to specific market conditions. As such:

• There is a finite supply of cryptocurrencies and precious metals, not so for fiat currencies.
• Out of the three, cryptocurrencies are the most portable, being accessible from all over the world. Precious metals are the least portable.
• All three options are fungible and divisible.
• Fiat currencies have the potential of being forged.
• Cryptocurrencies are the most private of the three, because they are open source and decentralized.
• Fiat currencies and precious metals are accepted forms of wealth all over the world. Cryptocurrencies have some way to go.
• Cryptocurrency is the least susceptible to theft and confiscation.
• Fiat currency is the least durable of the three options.

Based on this, the question becomes what the best currency to invest in is. It is widely accepted that fiat currency is the worst. In fact, its only real benefit is that it is accepted the world over and that it can be traded for different currencies. Many people believe that precious metals is therefore the best option, not in the least because it will always endure. If the Doomsday prophets are right, precious metals will be the only thing of value left, in fact. And that would be true because, in order to access cryptocurrency, a digital world has to be available. However, the Doomsday scenario in which all of the world’s electronics fail and the internet disappears is very unlikely to happen. Therefore, cryptocurrencies are the strongest investment to make right now, not in the least because, thanks to companies like Prescott Regency, they are also enabling poorer communities to build themselves up.