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Gold or silver? Looking at the price movements of Bitcoin, Ethereum, and Altcoin in the past, one should be able to predict the subsequent trends of gold, silver, and other precious metals. We must use first principles to think about financial issues. Bitcoin's past surge was essentially due to excessive money printing, leading to an explosive increase in total social wealth. However, this wealth was unevenly distributed, resulting in a large amount of idle funds from wealthy individuals and speculative funds from ordinary people seeking alternative sources of capital (the stock market is one such source, but it has a fixed valuation model linked to company performance. However, the rate of money printing far exceeds company profits, so alternative sources of capital must be found, and cryptocurrencies capitalized on this trend). I said a few years ago that buying Bitcoin, the digital gold, is like buying real gold. Now, more and more people in the market (especially governments) are starting to think this way (I've already explained why gold has an advantage over Bitcoin). So, funds are starting to flow into gold, this ancient reservoir of wealth, while Bitcoin is slowly being neglected. But the logic of capital operation remains unchanged. The precious metals market is like the crypto of yesteryear, with gold like Bitcoin and silver like Ethereum. First, the leading stock skyrockets, then speculators, seeing it's too high, start buying the second-best, which, due to its smaller market capitalization, rises even faster than the leader. The third and fourth-best can even increase dozens of times. But there's a saying in the financial world: buy the leader. Therefore, the prices of gold and silver will soon resemble those of Bitcoin and Ethereum. The leading gold and silver will rise first, steadily increasing. Then the second-largest gold and silver will rise sharply, followed by significant fluctuations. But in the end, those who buy the leading gold and silver will still make more money. Of course, there are other considerations as well. Silver has a strong production cycle, sometimes experiencing tight inventory and sometimes oversupply. Its market capitalization is too small, leading to too much speculation and a lack of central bank support. Gold has risen significantly this year, but silver and other precious metals have risen even more. However, I dare not touch silver, which has experienced large price swings. I don't have the ability to time the market; I only dare to invest in gold, which I believe will continue to rise in the long term. If you enter the market at this point, you'll see gold outperform silver very quickly, even without a long time commitment.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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