OK, confession time. I’ll admit it. I finally bought crypto last week. Never did it before until then. I bought Ethereum ($ETH).
Why didn’t I say anything? I suppose a superstitious belief that the millisecond after I said anything, it was go plunging to $0. But a bullish base is a bullish base, and it’s not accident that I’ve been marveling at the quality of the pattern. But there’s more to it than that.
I was getting really frustrated with gold. Yes, I still believe precious metals have a potentially strong future. The long-term charts I’ve presented endlessly are unbroken. Could gold be $5,000 per ounce in a few years. You bet! Maybe! But as a short-term trading vehicle, good God, gold stinks.
Advantages of Crypto vs. Gold
- Extremely tight bid/ask. Virtually non-existent. Whereas the bid/ask with physical gold is a mile wide. Here is a link to my local dealer. Want to buy 100 grams of gold? Sure, that’s $6216 as I am typing this. Want to sell it back one second later? Sure, here’s $5993. An instant $223 loss.
- Around-the-clock. I am typing this late on a Sunday morning. If I desperately wanted to sell my gold bullion, well, tough. The best I could do is wait until a dealer opened on Monday, in about 24 hours, and sell it for whatever the price happened to be. With crypto, I could sell it this very moment, any time, day or night, 365 days a year.
- Cryptos actually are appreciating. Unlike gold, which has been picking its nose for months now, while just about every asset has been ripping higher. It’s only been a few days, but Ethereum is up nearly 20% since I got into this. And the pattern looks fantastic.
Advantages of Gold vs. Crypto
- You can hold it in your hand. Kinda like your dick. That’s really about it.
So, yeah, I’m kind of disgusted with the barbarous relic. And, besides the beautiful saucer pattern, what finally pushed me over the edge was watching that video on the Federal Reserve last week which I shared with you. It really got me thinking about the nature of money. And, with that new perspective, I felt more comfortable moving forward. Besides all of that, I have been more or less at the cutting edge of technology my entire life, so I felt pretty lame sitting out the whole crypto thing any more.
So am I top-tick Tim with this? Maybe. But, so far so good, and I’ve finally made a much-needed tweak to our categories to reflect my heightened interest: