Have you been profiting handsomely from your local business, stock trading, or real estate investments? Are you wondering how to safely store the fruits of your labors?
It's an interesting question, given the precarious state of the world today. The conventional wisdom has always been that the US dollar (USD), American treasuries, and gold are the best stores of wealth. But for how much longer will that be the case?
Growing Wealth Phase
Perhaps the first question you need to ask yourself is, do you have any wealth that needs preserving in the first place?
The older generations have been able to generate quite a bit of wealth by investing in traditional stocks, real estate, and their retirement fund. I would argue that, considering the worldwide economic conditions of today, room for growth in traditional finance is quite limited, and the elderly simply need to preserve their gains.
For the younger generations, who are just arriving at the end of the fiat ponzi scheme, I would suggest that the best way to build wealth at this point is via cryptocurrencies. There exists incredible room for growth in this industry, if you can get in early on the right projects through active research and analysis.
Risks in Traditional Finance
The powers that be are obviously pushing forward with their "great reset", which involves the issuance of Central Bank Digital Currencies (CBDCs). If their plan is successful, some of the assets that used to be considered a safe haven may go up in smoke, as they are forcefully replaced with other credits.
As counter-intuitive as it may seem, it may less risky to hold the majority of your wealth in crypto rather than in the traditional banking system, because we have no idea what the lunatics in charge will do when we are faced with another financial "emergency".
Even if no emergency comes to pass, the trend in Western nations is towards communism, and that means more policies in favor of wealth confiscation, which could include your stocks, savings, real estate, and retirement funds.
Short-Term Wealth Preservation
As for preserving wealth in the short-term, I think dollars in the form of stablecoins is your best bet, because there is no risk of losing them in a traditional bank account through unexpected closures or confiscation.
The most popular ones, USDT and USDC, are centralized though, and one must always keep in mind that the issuers of these tokens can freeze accounts on a whim. Therefore, more decentralized algorithmic stablecoins like DAI or HBD are safer, even though they may have less liquidity.
Long-Term Wealth Preservation
All that said, we don't know how much longer the dollar will survive. It could be a few months, a year, or a decade. I lean more towards the shorter time frame, taking into considering the progress of crypto in general, as well as the BRICS and their new payment system).
How do we hedge against a potential dollar/fiat collapse?
Holding unconfiscatable physical gold and silver is not a bad idea, as there is still a large swath of the population that considers them a store of value. That said, precious metals are trending down in popularity compared to Bitcoin, the more favorable option among younger generations, and is therefore the better long-term store of value.
As trust evaporates, and inflation of the dollar/fiat system takes off, it wouldn't be a bad idea to "stack sats" as they say, and accumulate for yourself a modest sum of Bitcoin, the next "world reserve currency" that small independent nations could use to trade with one another.
Until next time...
Numerous indicators are pointing towards the end of US dollar hegemony in the world. In today's day and age, a combination of stablecoins, gold, and Bitcoin is your best bet to preserving wealth.
If you learned something new from this article, be sure to check out my other posts on crypto and finance here on the HIVE blockchain. You can also follow me on InLeo for more frequent updates.
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Images Courtesy of Venice AI [1]