Market prt2($, btc, gold).
19 Apr 2023, 14:02
Market prt2($, btc, gold)
In this part, we'll talk about the 3 most popular assets to invest in, and understand their issuance and inflation.
šµ Dollar:
Dollar is clear, banks can close anytime, people panic, you want to keep less and less there + on top of that the dollar is the easiest to inflationize because of unlimited issuance.
š Gold
This is where it gets very interesting, I will say that it too is subject to inflation, but how? After all gold is also a limited quantity, how can it be subject to inflation?
Yes, there is a limited amount of gold, BUT has all the gold been found on the planet? Of course not, and whenever new deposits of gold are discovered, the issue of gold goes up, but the demand does not go up and the price of gold goes down, hence the inflation of gold.
Conclusion: much gold is not discovered and every time a big deposit is discovered, gold will fall in price, as the price is not fixed for such an emission.
š Bitcoin
Here it's simple, the issuance is limited, inflation is minimal because of the difficulty of mining and once all the bits are mined there won't be any, because the issuance will stop forever too. Where will the investor's money go? I think the answer is clear to everyone.
To be continued...