Welcome to the hard money strategy!
The origin of this strategy.
After being up and down in the 2017 bull run I wanted to deeply understand what Bitcoin actually is. Long story short, Bitcoin is the best form of money in its essence.
Hard money (There is no credit involved)
Trustless (Nobody can stop a transaction and the value is in the coin itself) Fast (It allows for worldwide trade)
But I also realize that it is a volatile market and before Bitcoin earns its place in the world there will be a lot more ups and downs. That's why I wanted a strategy to have some peace of mind and take advantage of the cycles in Bitcoin.
Having learned what makes money good money, it was only logical to use gold (PAXG) as a risk-off asset. Gold has a lot of similarities with Bitcoin. I see gold as the physical safe-haven asset and Bitcoin as the digital safe-haven asset in the making.
(There is a lot of friction between the precious metal and crypto communities which in my opinion is totally uncalled for. We agree on more points than we disagree.)
How the strategy works:
When we buy Bitcoin with gold we do so with the intention to buy back more gold in the future.
When we buy gold with Bitcoin we do so with the intention to buy back more Bitcoin in the future.
Iconomi will show the gains in USD but we are actually focusing on growing our bag of gold and Bitcoin. But as we expect both assets to perform well the USD value would be a good measurement of performance.
The strategy is an algorithmic strategy meaning no human emotions are involved, and we are profiting from the momentum shifts between BTC/GOLD where we take gold as our risk-off asset.
Why now more than ever:
I have been live trading with this strategy since August 2019 next to other investments and I have found it to be a stabilizing factor in my portfolio with great returns. So I feel confident to share it.
Where my choice for gold as a risk-off asset originated from a more idealistic point of view I believe we are entering a time where our fiat (dollar & euro) financial system won't be as stable as we are used to. By using gold I believe it will give a better representation of the value of Bitcoin as gold will be reactive to monetary policy instead of being an extension of the monetary policy like the dollar.
Gold is more essential than ever to come out the better end of this monetary transition.
We live in an exciting time and I hope this strategy will serve you well.