Tag Archives: Bitcoin Mining

All The Reasons Why Cryptocurrencies Such As Bitcoin And Ether Will Never Replace Gold, Silver, And Other Precious Metals

Above: All The Reasons Why Cryptocurrencies Such As Bitcoin And Ether Will Never Replace Gold, Silver, And Other Precious Metals.

The cryptocurrency craze continues. Having seen the astounding rise in Bitcoin’s value, those who remained on the sidelines are now kicking themselves for not buying it when it was first released. Surely, they’d be millionaires by now. It seems that more and more people justify investing in cryptocurrencies — even at current record prices — by claiming that they’re an effective hedge against the instability of fiat currencies. But is it true?

Sure, a fiat money system where central banks can and do literally print money at will has its weaknesses. That’s why hard assets like gold are so popular among smart investors: as real stores of value, they provide a safety net against currency depreciation. However, it’s doubtful that the same applies to cryptocurrencies. Despite what the crypto-evangelists will tell you, digital tokens will never and can never replace gold as your financial hedge. Here are six reasons why:

Above: All The Reasons Why Cryptocurrencies Such As Bitcoin And Ether Will Never Replace Gold, Silver, And Other Precious Metals.

Bitcoin Mining Can Land You In Jail In Venezuela

Above: Bitcoin Mining Can Land You In Jail In Venezuela.

Cryptocurrencies like Bitcoin have long been seen as a risky investment but in Venezuela you can end up behind bars. Thousands of others across Venezuela are secretly mining Bitcoin just to make ends meet. In Venezuela being involved with Bitcoin is very dangerous, but also a vital lifeline for survival. Venezuela was once the richest country in South America, but now it is a country in crisis.

Venezuela has the highest inflation rate in the world, and its currency is in serious trouble. Food and basic necessities are scarce in Venezuela. In fact, the situation is so bad in Venezuela that people are starving, rationing toothpaste, and saving as much toilet paper as possible (soap and toilet paper can be used to trade or barter for other basic necessities such as food and water). Continue reading