Moving from Precious Metals to Crypto Currency as my main hedge against market shifts.
Part of my affinity for precious metals probably was linked to my Prepper Nature.
I still believe in keeping a certain amount of your Net Worth in precious metals, but recently I made a major move out of PM’s and into Crypto Currency.
Until now, I have always avoided Crypto Currency as a get rich quick scheme that I did not fully trust.
But I also do not like the entire banking industry, the Federal Reserve, and fiat currency in general. So as I learned more and more about decentralized finance or DeFi, I liked what I was hearing.
I would not be able to deny that some of my interest was tied to a FOMO (Fear of Missing Out), but I am fairly fiscally conservative. I held out until now.
We are on the cusp of a fundamental sea change in how the world handles ‘money’. This change is no less a big deal than the invention of the internet, IMHO.
So, I cashed out some Precious Metals that were sitting around for over a decade. The appreciation was solid and APMEX was easy to deal with selling PM to them through the mail.
I spun that money right around into several different types/quality of crypto on several different exchanges.
A bunch of Ethereum. This is the NEXT BIG THING. I also speculated on some way cheaper coins that may pan out. I could tell you I researched everything until I was an expert, but that is not true. Ethereum is a sure bet, the others were probably a bit of me buying into the hype.
As a cautionary note, I did not put ‘new money’ into this latest pivot, I simply exchanged one asset for another type of asset. I still think it is premature to cash in your 401k for Bitcoins.
But nowadays, I think that some exposure to crypto currency is as deserving a spot in your portfolio as all the other ‘normal’ asset classes.