For those still wondering whether cryptos are legitimate or just a passing fad, beware that a leader of one of the most outspoken groups of crypto critics has just capitulated and gotten on board.
Jim Sinclair (a.k.a. “Mr. Gold”) recently hosted a “cryptos vs. precious metals” round table discussion. Which was interesting given how many of the goldbugs have had some of the most anti-crypto perspectives.
Yet amazingly, after having the value of the cryptos finally explained in an articulate and easy to understand manner, Sinclair was won over just 8 minutes into the call.
Clif High and Bix Weir were the crypto supporters on the call. And after they explained how Bitcoin is “an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party,” Jim’s response said it all.
“You make more sense of cryptos gentleman than I’ve heard up to this period of time.
I think the reason people don’t understand, is because if you read this stuff, it’s so complex….so I want to congratulate both of you (Clif and Bix) not only for having seen this early. But really to have seen the why in it.
What you said to me now makes a great deal of good sense. And the only argument that’s left is, ‘what is the system worth’?
What is paper currency worth?
And eventually what is gold and silver worth?
You know you’re very close to the free gold school. In fact, you are preaching free gold.
So I can see your argument….
It was interesting to hear his response, primarily because if there’s been any particular group that as a whole has been overwhelmingly anti-crypto, the gold and silver bugs are near, if not at the top of that list.
Which in some ways is understandable. After all, the gold and silver community has long been aware of the reasons that led to the creation of Bitcoin. They understand why there’s a need for a banker-less system and bought gold and silver in response. Yet it wasn’t so much fun to watch the prices of the metals languish while the cryptos, the other anti-dollar trade, took off in historic fashion.
But the real opposition is more so that most people generally don’t understand what the cryptos really are and what they were designed to do. Similar to how many are also unaware of just how fragile the current dollar system has become, and why there is a need for both precious metals and cryptocurrencies to stabilize our money.
The idea that the blockchain and cryptocurrencies can compete freely on the market is inline with the general mindset of the average precious metals investor. In fact, it was interesting to hear Jim mention the similarities to the free gold school. Because the whole idea of Bitcoin was designed by the same type of Libertarian anti-government mindset that also advocates precious metals and sound money.
Fortunately, the two asset classes don’t have to be mutually exclusive. They’re in reality on the same team, as both are further competition to the dollar and likely to complement each other in coming years.
A knowledge or understanding of either also adds to the awareness of the flaws of paper money. With the spreading of that awareness likely be the ultimate knockout punch to the dollar.
“Up to now I’ve looked at Bitcoin as being a phenomenon of the strange environments we live in. I don’t want to be insulting and say tulips or something like that….. let’s not do that. Because now I know crypto isn’t.
My argument (against crytpos) will be that there isn’t any.”
It’s an exciting time in financial history. Never have the people been closer to wresting their power and money back from the control of the governments and central banks. And while the learning curve with cryptos can be steep (which is also why getting started now will give you an incredible advantage on the rest of the crowd), even Mr. Gold is now confirming it will be well worth your while.
If you haven’t yet heard the roundtable discussion, I highly recommend it, as my guess is that many would have the same reaction that Jim did if they received a similarly clear explanation. Because like Jim said, the cryptos are here to stay, and those who are ahead of the crowd in understanding why will be among the biggest beneficiaries of the development.
-Chris Marcus
April 25, 2018
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