(I have much more trust in blockchain than in government retirement schemes).
I don't see how people can look at cryptocurrencies as investments over the long term. It's like saying you have all your money in Swiss Francs in a checking account that returns no interest because you think the Swiss are doing a stellar job at setting up an economy/banking system.
In the short term you're basically betting on cryptocurrencies gaining adoption and thus more of the economy needing them. In the long term it's just a currency not an investment.
>(I have much more trust in blockchain than in government retirement schemes).
That's not the alternative, some kind of diversified portfolio of stocks (a simple index fund is usually the easiest) is the right benchmark. Personally I will always feel safer with owning a (very small) percentage of the total productive companies in the world than a currency that's only worth something as long as someone is willing to keep trading in that specific one and not change to some other one. I look at the value of my stock holdings in euros only because it's also my day to day currency but the underlying value can be repriced in any currency over the next 50 years (my investment horizon).
What I would really like to do is price my stock holdings as percentage of total world stock market capitalization (with plenty of decimal points). Anyone have a good source for that number?
Until it isn't and it's replaced by a new one. Less than 20 years ago Euros didn't exist. It's entirely possible that in 20 years time they won't exist either...
You've played your hand by saying you look at your stock holdings in fiat. What happens if fiat fails you? i.e. if hyperinflation kicks in or the powers that be decide to restrict access to your fiat? I realise it sounds tinfoil hat-esque but if investing to safeguard your future, these are possible doomsday scenarios... (just ask people of Venezuela)
> In the short term you're basically betting on cryptocurrencies gaining adoption and thus more of the economy needing them. In the long term it's just a currency not an investment.
A deflationary currency with a fixed supply... so it's an investment in the sense that (a) it's scarcity will naturally drive up the price if demand increases (b) it will hold value better than fiat, given that the supply of fiat is, well, unlimited.
Are we having a discussion or playing poker? What hand did I play?
> What happens if fiat fails you? i.e. if hyperinflation kicks in or the powers that be decide to restrict access to your fiat? I realise it sounds tinfoil hat-esque but if investing to safeguard your future, these are possible doomsday scenarios... (just ask people of Venezuela)
I'll just sell my stocks for another fiat currency or even bitcoin if/when I want to. You're missing the point completely. My stock holdings are shares of companies not fiat currency. I can look at them in whatever currency I want. I can also see the value of my holdings in dollars or yen or bitcoin and it's just as valid. I'm not storing value in euros, only using them as the unit when doing valuation of my holding of companies. The same applies to cryptocurrencies, they're not valuable in themselves, only as a means of exchange.
Can you clarify? I mean, I agree that your diversification should extend beyond the stock market (bonds, some metals, real estate). But I'm not sure what you mean by the above.
Even Spain was a dictatorship until 1975. Everybody should consider the possibility that their society will collapse, even if they choose to do nothing about it.
Can you give an example of a modern economy collapsing and reverting to gold as a medium of exchange?
I don't know that the US federal government is as scary, but it's not unheard of.
Only if you're a resident of an unstable country.
Can you name a crisis where having a stash of gold and silver mattered? Do you think people are going to trade valuable goods (food? water? ammo?) for your metal bars? I can't imagine the circumstances.
When SHTF the government (or someone else) will confiscate that wealth. They have in the past. Personally, I think metals will matter less in any apocalypse, because they have no practical use.
(And if you don't have guns and ammo, you'll be immediately robbed by those who do)
You can get close with a few ETFs: US market and bonds, Ex-US global market and bonds:
This is your weekly public service announcement.
Social Security is not an investment, it is an insurance. The goal of Social Security is not to make everyone rich but to keep anyone from being destitute.
This has been your weekly public service announcement.
I am not aiming for becoming very rich for that — my goal is personal security. But thank you for your concern.