With the news that the Federal Reserve is considering creating its own synthetic central bank, many are watching to see if the Bitcoin sipping concept could someday be used to replace the US dollar. The argument for this move comes from the fact that since the two currencies don’t perform in exactly the same way, it is always useful to have a flexible floating exchange rate. This means that a government that decides to change the value of its currency will have a large reaction, and the current trend suggests that the government is moving in that direction. In other words, if the dollar loses value, the value of Bitcoins increases, and vice-versa.

If you take a look at the price history over the last five years, you’ll notice that the price of Bitcoins has more or less followed the price of the dollar. While there have been some fluctuations – notably the drop from about fifty dollars to under ten dollars in a matter of months – the trend is not really abnormal. There are a number of different reasons why this might occur, but all of them point to the fact that people are no longer just interested in storing value on a long term basis, but are interested in increasing their wealth quicker. So is this something that will be attractive to investors?

The argument for this kind of investment is pretty simple: if the value of your national currency drops, then the value of your local currency should fall as well. This means that if you’re holding a hundred thousand dollars in gold, and the dollar falls by ten percent, you would lose ten thousand dollars. Now, this is a risk that everybody wants to take. But the interesting thing is that if you’re doing this right now, you might have already taken advantage of this situation. That is because the United States government has been hoarding gold for years. Click here for more details about 비트코인홀짝

So how did they do this? The government purchased gold certificates as an insurance policy against inflation. At the same time, they purchased billions of dollars in cash reserves from the big banks around the country. If the banks had suddenly let go of their massive amounts of gold, the value of the dollar would have immediately plummeted, along with the value of all the goods and services that they were purchasing. Therefore, there is some value in holding gold.

So does this mean that you should jump ship and invest in a gold currency? Well, it would depend on the circumstances. If your financial goals are more along the lines of securing your wealth or your long term viability as a nation state, then maybe it makes sense to get out while you are still ahead. It could be that gold will rise in value again in the next few years, and it’s best for you to purchase some now while you can. On the other hand, if your main motivation is simply because you want to get into the gold market as a method of securing your future, then it would make a lot more sense to invest in a fiat currency system like the dollar.

In any case, this does not mean that you cannot use the gold/ Bitcoin method of investing, it just means that you need to decide which one is the best for you. You may use both, or you may only use one, or perhaps none at all. But it’s up to you. What matters most is that you make an informed decision when it comes to deciding which investment vehicle is best for you. Your wealth is only as safe as the choices that you make, after all.