"The 4% Retirement Rule Is in Doubt. Will Your Nest Egg Last?" (out of control, raising)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
So, this is tangentially related to the topic of the thread, but I guess this is the most recent Retirement thread that dealt, indirectly, with impact of inflation on retirement. I have just read in the NYC forum that the new mayor plans to make NYC into the world hub for cryptocurrency, which I understand is able to resist inflation (if it is in fact worth anything more than poker chips to start with). I don't plan on getting any cryptocurrency, but am just curious, and since you are into investing, I figured you'd be the person to ask here: what is this cryptocurrency stuff, and what is your opinion of it? It seems to be a type of virtual money, like stocks and bonds, but stocks and bonds are backed up by real companies - I don't understand what cryptocurrency is backed up with (since it is not something that has an intrinsic value to it).
i know little about crypto to be honest nor do i care to learn the hows anymore than i care to learn the techno crap behind gold mining .
but at this point it is a serious asset class ,at least as far as bitcoin goes .
as such i do have multiple 6 figures in gbtc which is about 5% of total investable assets along with 5% in gold via gld and 5% in commodities via dbc .
so 15% of my dough is in what i will call high inflation hedged assets along with 10% in fsrrx fidelity strategic real return for moderate inflation
so 25% of the portfolio is weighted for at least higher than 2% inflation .
the other 75% is equity funds , bond funds and cash
Last edited by mathjak107; 12-06-2021 at 02:15 AM..
i know little about crypto to be honest nor do i care to learn the hows anymore than i care to learn the techno crap behind gold mining .
but at this point it is a serious asset class ,at least as far as bitcoin goes .
as such i do have multiple 6 figures in gbtc which is about 5% of total investable assets along with 5% in gold via gld and 5% in commodities via dbc .
so 15% of my dough is in what i will call high inflation hedged assets along with 10% in fsrrx fidelity strategic real return for moderate inflation
so 25% of the portfolio is weighted for at least higher than 2% inflation .
the other 75% is equity funds , bond funds and cash
Hmm alright. You seem to be saying that you don't feel like learning more about crypto or getting any of it, since you have adequate other coverage for high inflation. Fair enough. I believe I have adequate coverage too (three properties, in addition to layered increase in fixed income, with wide safety margin for inflation over 35 years), but was just curious if anyone here knew how crypto is backed up, what in reality determines its value. Your gold investment is virtual, but there is somewhere some real gold that backs up your virtual transactions. I don't know of any real anything that backs up crypto transactions, but there must be something tangible on which they are based. Or no? Is the value of cryptocurrency based only on agreement of crypto users that the value of it is so&so?
Hmm alright. You seem to be saying that you don't feel like learning more about crypto or getting any of it, since you have adequate other coverage for high inflation. Fair enough. I believe I have adequate coverage too (three properties, in addition to layered increase in fixed income, with wide safety margin for inflation over 35 years), but was just curious if anyone here knew how crypto is backed up, what in reality determines its value. Your gold investment is virtual, but there is somewhere some real gold that backs up your virtual transactions. I don't know of any real anything that backs up crypto transactions, but there must be something tangible on which they are based. Or no? Is the value of cryptocurrency based only on agreement of crypto users that the value of it is so&so?
like gold bitcoin has value because people think it does..i guess that is the short answer …there are many crypto systems out there but most have little to no value ….
bitcoin is coveted because it is a sophisticated system of payments and value that seems to work .
think of it like stamps that go up and down in value but have no real intrinsic value
like gold bitcoin has value because people think it does..i guess that is the short answer …there are many crypto systems out there but most have little to no value ….
bitcoin is coveted because it is a sophisticated system of payments and value that seems to work .
think of it like stamps that go up and down in value but have no real intrinsic value
Well, gold does have practical value, and is sufficiently rare. In prehistoric times, it was a good metal that didn't rust, and nowadays is invaluable as a conductor for microcurrents in electronics. It has been used by dental providers since BC. It has had an enduring aesthetic value (which some people think might be related to its resemblance to blond hair that used to be rare at least when it appeared as a new mutation more than 10,000 years ago, and was obviously valued since the blond gene managed to survive despite not being dominant, ie, being easily lost from a population with only a few generations of successively mating with more pigmented partners in that population). So actually, gold has had intrinsic value ever since it had been found by prehistoric folks.
Thank you for the links, I'll look through that, but unlikely that I'll ever buy any bitcoin :-). I like things that I can use practically without diminishing their value, and also like assets that can be used continuously without any managing at all (remember, I'm the annuities + SS at 70 + 3 little condos + full-Roth-conversion-into-a-single-fund person :-).
like gold bitcoin has value because people think it does..i guess that is the short answer …there are many crypto systems out there but most have little to no value ….
bitcoin is coveted because it is a sophisticated system of payments and value that seems to work .
think of it like stamps that go up and down in value but have no real intrinsic value
And that is the blockchain behind it. Blockchain has a lot of potential.
Well, gold does have practical value, and is sufficiently rare. In prehistoric times, it was a good metal that didn't rust, and nowadays is invaluable as a conductor for microcurrents in electronics. It has been used by dental providers since BC. It has had an enduring aesthetic value (which some people think might be related to its resemblance to blond hair that used to be rare at least when it appeared as a new mutation more than 10,000 years ago, and was obviously valued since the blond gene managed to survive despite not being dominant, ie, being easily lost from a population with only a few generations of successively mating with more pigmented partners in that population). So actually, gold has had intrinsic value ever since it had been found by prehistoric folks.
Thank you for the links, I'll look through that, but unlikely that I'll ever buy any bitcoin :-). I like things that I can use practically without diminishing their value, and also like assets that can be used continuously without any managing at all (remember, I'm the annuities + SS at 70 + 3 little condos + full-Roth-conversion-into-a-single-fund person :-).
there are uses coming up for crypto too ..such as a store of value that is not diluted by any countries manipulation of their money supply in an easy transport system.
that is kind of the role gold was supposed to play but it really doesn’t since world wide it is priced in dollars and then converted to whatever the local currency equals out to.
it has value in my portfolio as diversifier not tied to other assets
there are uses coming up for crypto too ..such as a store of value that is not diluted by any countries manipulation of their money supply in an easy transport system.
that is kind of the role gold was supposed to play but it really doesn’t since world wide it is priced in dollars and then converted to whatever the local currency equals out to
Well I don't know. Unless it becomes fully interchangeable with money, and usable to pay for everything everywhere, I won't know what to make out of it.
Well I don't know. Unless it becomes fully interchangeable with money, and usable to pay for everything everywhere, I won't know what to make out of it.
you cant use gold as money either . it is not legal tender unless you will take 50 bucks for the gold eagle coin , you cant pay your taxes with gold nor can you likely spend it as is ….you can barter with it like any thing of value
you cant use gold as money either . it is not legal tender unless you will take 50 bucks for the gold eagle coin , you cant pay your taxes with gold nor can you likely spend it as is ….you can barter with it like any thing of value
the crypto market is 3 trillion dollars.
the gold market is about 9 trillion
Yeah fine, I don't own either of them. I don't even wear jewelry, never could understand the function of it :-). Was just curious about some basics regarding cryptocurrency.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
