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Listen "The Truth About Bitcoin, Gold, and Safe Investing Strategies, Ep #261"
Episode Synopsis
Bitcoin and gold are two assets often hailed as safe havens and reliable stores of value. I explore whether bitcoin and gold really deliver the security investors hope for, or if, instead, they are more about speculation than true investment.
I am helping you to look at the hard data and science behind financial decisions. Whether you are curious about market volatility or searching for a dependable way to safeguard your wealth, this episode is packed with practical insights about the pros and cons of investing in Bitcoin or gold.
Outline of This Episode
[06:05] Bitcoin and gold are speculative, limited by supply and demand.
[09:29] Bitcoin is an unreliable store of value.
[13:57] Volatility and diversification in investing.
[16:58] Is gold really a safe haven for your money?
[20:18] Gold commercials push for sales due to high commissions, not safety.
[22:30] Investing relies on data and science to build successful portfolios, focusing on controlling taxes, expenses, and risk.
Finding Safe Havens for Your Money
What makes you feel secure? Fresh from a nine-night family trip to a volleyball tournament in Dallas, I have realized that my real safe haven is not a lockbox or a password, it is my home and the daily routine I return to. More than that, my family represents my ultimate store of value, the core “asset” I am committed to nurturing year after year.
For me, investing is just one facet of a broader stewardship, protecting not only wealth but also the relationships and routines that bring lasting fulfillment.
Bitcoin is a Volatile Gamble
Clients often ask me, “Can Bitcoin act as a reliable store of value?” so I’ve dug into the numbers. Since 2010, the annualized volatility of Bitcoin has been a staggering 76.9%, nearly five times greater than the already-risky Russell 3000 index, which clocks in at 15.8%.
Over the same period, Bitcoin has endured 27 separate 10% drops, 10 plunges of 30% or more, and five catastrophic 70% crashes. By contrast, the mainstream US stock market has only seen six 10% drops and a single 30% drawdown.
Investing in bitcoin with this type of volatility is not a store of value. Investing in Bitcoin is speculation. The wild swings may excite thrill-seekers, but anyone seeking stability is likely to be disappointed.
Gold as a Safe Haven
What about gold, the classic safe-haven asset? Gold has enjoyed some positive years, up 60% of the time since 1970, but it is hardly a guarantee. That means in roughly four out of every ten years, gold investors have faced losses.
Meanwhile, the S&P 500, ironically, the very market from which gold investors typically flee, has delivered positive returns 80% of those years.
Plus, the marketing of gold is driven by high-commission sales tactics, not genuine concern for investor safety. Beware of those “buy gold now” ads; they exist to line the pockets of sellers, not to deliver real security to buyers.
The Science of Investment Security
Rather...
I am helping you to look at the hard data and science behind financial decisions. Whether you are curious about market volatility or searching for a dependable way to safeguard your wealth, this episode is packed with practical insights about the pros and cons of investing in Bitcoin or gold.
Outline of This Episode
[06:05] Bitcoin and gold are speculative, limited by supply and demand.
[09:29] Bitcoin is an unreliable store of value.
[13:57] Volatility and diversification in investing.
[16:58] Is gold really a safe haven for your money?
[20:18] Gold commercials push for sales due to high commissions, not safety.
[22:30] Investing relies on data and science to build successful portfolios, focusing on controlling taxes, expenses, and risk.
Finding Safe Havens for Your Money
What makes you feel secure? Fresh from a nine-night family trip to a volleyball tournament in Dallas, I have realized that my real safe haven is not a lockbox or a password, it is my home and the daily routine I return to. More than that, my family represents my ultimate store of value, the core “asset” I am committed to nurturing year after year.
For me, investing is just one facet of a broader stewardship, protecting not only wealth but also the relationships and routines that bring lasting fulfillment.
Bitcoin is a Volatile Gamble
Clients often ask me, “Can Bitcoin act as a reliable store of value?” so I’ve dug into the numbers. Since 2010, the annualized volatility of Bitcoin has been a staggering 76.9%, nearly five times greater than the already-risky Russell 3000 index, which clocks in at 15.8%.
Over the same period, Bitcoin has endured 27 separate 10% drops, 10 plunges of 30% or more, and five catastrophic 70% crashes. By contrast, the mainstream US stock market has only seen six 10% drops and a single 30% drawdown.
Investing in bitcoin with this type of volatility is not a store of value. Investing in Bitcoin is speculation. The wild swings may excite thrill-seekers, but anyone seeking stability is likely to be disappointed.
Gold as a Safe Haven
What about gold, the classic safe-haven asset? Gold has enjoyed some positive years, up 60% of the time since 1970, but it is hardly a guarantee. That means in roughly four out of every ten years, gold investors have faced losses.
Meanwhile, the S&P 500, ironically, the very market from which gold investors typically flee, has delivered positive returns 80% of those years.
Plus, the marketing of gold is driven by high-commission sales tactics, not genuine concern for investor safety. Beware of those “buy gold now” ads; they exist to line the pockets of sellers, not to deliver real security to buyers.
The Science of Investment Security
Rather...
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