August 25, 2017 (Investorideas.com newswire) Smart investors aren’t traditional. For example, it’s traditionally a good idea to purchase physical metals (gold, silver, etc.) as an alternative investment method. Non-traditional investors purchase mining stocks instead. Despite a volatile stock market in 2016, gold and silver miners continued to make significant gains. Most doubled their gains, but many tripled or quadrupled in value.
Bitcoin (not a metal, but something that is mined for) did well too because it's defined by supply and demand, and with such a limited supply, its demand is way up. It seems mining is the one alternative investment that can still make you an overnight millionaire.
Bitcoin: Real Asset or Fiat Currency?
Unlike gold and silver, Bitcoin isn't mined in the real world. It's mined online by creating a ledger of historical transactions called a block chain. You can do this on your own, but most people mine in a pool. There are services, such as Genesis Mining, that offer cloud-based mining. This is more cost effective, and puts less stress on your hardware.
But, is Bitcoin as good as gold and silver, which are proven to protect your wealth for the long term? The answer is probably. Smart investors are beginning to diversify away from fiat currencies, such as the euro and the dollar. Since the financial crisis in 2008, investors have less trust in central banks. It should be noted these banks inflate and devalue currencies at their discretion, which makes currency investment a turbulent market. Crypto-currencies, such as Bitcoin, start to look really good when you consider that central banks also suppress interest rates artificially in order to control the free market.
All Mining Efforts Have their Limitations
Gold and silver mining is dependent on the availability of resources. Bitcoin is no different; however, it's tied to the rate at which the equations you're solving yield bitcoins. It's also tied to the rate at which they're released, and bitcoins are released very slowly so as not to flood the market. Therefore, people mine in a pool because it increases the luck factor.
As for gold and silver, resources will be steadily available until approximately 2038. At that time, silver and gold is predicted to see a significant dip in resources. It's predicted all silver mines will be completely exhausted as a resource by 2240, but that doesn't account for the recycling of previously mined silver.
Diversify Your Mining Portfolio
Central banks don't regulate mining, so it's dictated by the free market. That makes mining, digitally and physically, a strong investment. It's one of the only ways to protect your wealth even in times of uncertainty. Keep in mind, that price fluctuations are also a good thing. Unlike dips in the stock market, a dip in the mining market only provides more opportunity to buy more assets. If you keep abreast of the market, watch it closely, avoid scams, and buy and sell at the right times, you can significantly grow your wealth with mining efforts.
In short, you can and should invest in all mining efforts. They all have value and have a successful track record on the stock exchange. As for Bitcoin, you can invest in the hardware or cloud-based methods that will allow you to mine for the coins yourself as mining pools aren't a stock option. Gold and silver can be purchased directly, but as previously stated investing in actual mining groups is far more profitable in the short-term; however, direct purchasing is a real hedge against the market's volatility.
About The Author:
Jane is a online freelancer who has worked on writing projects for fun and work since college. Jane's education comes from the John Cook school of Business at Saint Louis University. Whether it is writing about online business and digital marketing which she is heavily involved, Jane also likes please pieces about history and education when she can write about more open ended topics! Reach out at firstname.lastname@example.org anytime!
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