This is a gambling website and crypto is fun to gamble on. I wouldn't go onto the T4T thread and start telling them not to bet sports:)
We seem to have gone from "there are no fundamentals, this stuff is impossible to value" to "this stuff is ridiculously overvalued". If a whole bunch of people are currently paying $8500 for a bitcoin then that's what it's worth.
Whether we are getting massive market manipulation from spoofy, bitfinex, tether however is very interesting and worthy of discussion.
The argument that I find most persuasive for BTC is that we are heading towards a cashless society and if your bank account gets shut down for any reason (weren't HSBC closing pro gamblers accounts a while ago?) or you want to make any kind of anonymous transaction BTC or something like it might come in very useful.
Acegooner genuinely interested to know your thoughts about whether it's better to be in cash or gold when stock markets are falling. Trading God that I am I sold my crypto trackers for a mighty £100 profit and have now got a few spare grand in my SIPP doing nothing. Lots of people saying it's good to be holding cash ATM though.
And you have hit the nail right on the head. It is what people are prepared to pay for it, but it doesn't make it good value.
With regards to stock market diversification. I hold 8% of my portfolio currently in cash, 10% in bonds and 10% in gold through a physical ETF. The rest is in equities. As I mentioned earlier, gold is a good hedge against equities. That is to say when the stock markets go into a bear market, invariably gold tends to go the other way.
The problem with holding cash as opposed to Gold, is that in real terms it loses value. That is because interest rates on deposits at present are much lower than the rate of inflation. Gold is seen as a good hedge against inflation (at least it has been in the past).
Thanks for the reply. SGLN still the cheapest physical gold ETF at 0.25%? I did have some a few years ago but got bored with it and sold at a loss. More proof of my trading Godliness.