Ron Paul, a retired American politician, recently posted a Twitter poll, asking his followers whether they would prefer to hold $10,000 worth of Federal Reserve Notes, gold, Bitcoin (BTC), or U.S. 10-year treasury bonds for ten years.
50% of the nearly 95,000 voters said they would prefer to hold Bitcoin, with gold coming in second at 37%.
Inflation-Proof Assets Vastly Preferred by Ron Paul Followers
Ron Paul’s followers clearly prefer to “HODL” assets that are resistant to inflation, according to a poll he ran on Twitter. Gold and BTC were the clear favorites over Federal Reserve Notes and 10-year treasury bonds.
A wealthy person gifts you $10,000. You get to choose in which form you’ll accept the gift. But there’s a catch: You must keep the gift in the form that you choose for 10 years without touching it. In which form would you accept the gift?
— Ron Paul (@RonPaul) November 15, 2018
BTC beat out gold, the world’s go-to store of value, by thirteen percentage points, which may be an indication that many of the politician’s respondents see gold as being, well, so last millennium. Both are good hedges against inflation because they both have a limited supply.
However, you are more likely to see a millennial walking around with a Mycelium wallet installed on his/her smartphone than a pocketful of gold coins, solely because BTC is less bulky, more spendable, and, most importantly, more modern.
If you wonder why millennials would bother with a hedge against inflation in a country where the currency is relatively stable, well, millennials still remember the Great Recession and the heavy hitters in the mainstream financial industry that caused it. They, like anyone else, can read about Venezuela’s hyperinflation, where centralized fiscal structure failed the nation’s citizens at large.
They will look for asset classes that aren’t as vulnerable to the failures of centralized economies. This search for solace will be catalyzed because times-a-changin, so what worked for the generations of yesteryear may not hold up in today’s society. And, with this rise of technology, many may be comfortable owning a digital asset in the ether, rather than a cumbersome piece of metal.
Isn’t Bitcoin Sort Of Taking a Beating, Though?
It is true that the value of BTC has plummeted in the past week. However, the difference between a day trader and somebody who doesn’t mind HODLing for ten years is that the HODLer does not sweat short-term price swings.
The HODLer can take bitcoin’s historical action into account, subsequently recognizing a time that BTC could have been bought for less than one-cent a piece. Think of the world’s first bitcoin-to-physical item transaction, which saw “Laszlo” purchase two pizzas for 10,000 BTC, worth just $40 at the time. BTC might be way down from this time last year, but anyone who invested in bitcoin in 2009 and HODLed still outperforming any equity market investor.
This may not be a guarantee of future performance, but, in the eyes of many crypto advocates, the HODLer often has much more willpower than their stock market equivalents.
As Ron Paul and his constituents may have learned from that poll, BTC and gold remain go-to long-term investments, as government-issued currencies are likely to be devalued greatly over time. Bitcoin is the more popular option because it’s modern, independent of banks, and not cumbersome at all.