Looking ahead for the next 60 days, Gold vs Bitcoin

Discussion in 'Crypto Assets' started by johnarb, Nov 1, 2020.

Would you rather?

  1. Own 73 ounces of until 1/1/2021

    20.0%
  2. Own 10 bitcoins (btc) until 1/1/2021

    50.0%
  3. Neither (something else, maybe USD, spy or qqq) until 1/1/2021

    30.0%
  1. johnarb

    johnarb

    Gold and Bitcoin have gotten boring for the past week. In light of the coming US election, the markets could see some good action for the next 2 months.

    We'll revisit the results of both Gold and Bitcoin on 1/1/2021 $138,000 risk

    Since both Gold and Bitcoin are used for hedging portfolio risk, the amount would be adjusted according to one's risk tolerance.
     
  2. johnarb

    johnarb

    Oops, forgot to include current values:

    Gold: $1,880
    Bitcoin: $13,800
    SPY: $326.54
    QQQ: $269.38
    DIA: $265.06
    IWM: $153.09
    VNQ: $76.59
    TLT: $157.57


    VIX: 38.02

    .
     
    Last edited: Nov 2, 2020
  3. Pekelo

    Pekelo

    Why does it always have to be gold? How about toilette paper, canned food or ammo?
     
    TimtheEnchanter likes this.
  4. johnarb

    johnarb

    You can use those things you mentioned but on 1/1/2021, how will you extract $138K to recover your investments?

    The OP is a SHTF portfolio hedging strategy for the next 60 days only. TP, ammo, canned foods, should already be in your possession given what we've seen in the past 6 months.

    If we get a contested election that lasts a few weeks, we could be in for some turbulent times in the markets. Worldwide events are not so good, either, UK on lockdown, France same, Turkey had a spike in inflation as the Lira crashed....

    Local businesses are boarding up their stores for this week, just in case... But they are not closing down completely as we most likely will be ok in 2 months, we shall see.
     
  5. Trader Curt

    Trader Curt

    Voted for Bitcoin since I'm not a gold expert. So many mixed reviews on investing in gold right now. Bitcoin is tapping around 14,000, and after it's broken the only resistance left is 20,000. This is both exciting and scary.
     
    johnarb likes this.
  6. gkishot

    gkishot

    Unlike gold, the other stuff is produced.
     
    johnarb likes this.
  7. johnarb

    johnarb

    Just a quick update on this. 10 Bitcoins was the correct investment versus 73 ounces of gold.

    worth over $320K currently
     
    Sprout likes this.
  8. maxinger

    maxinger

    last week, gold was boring BUT not bitcoin.
     
    johnarb likes this.
  9. Gold's function is to be boring. By "boring" we mean stable. If you take any random sample from the last 30 years, the probability is that gold is doing nothing.

    This is why although the BTC == digital gold is a nice narrative, it just doesn't hold water in reality.

    It is a preposterous comparison BTC vs Gold in the next 60 days without normalizing to historic volatility.