Ed Moy, a former U.S. Mint Director, has recommended cryptocurrency like bitcoin as one of three useful ways to diversify your personal portfolio, according to Newsmax’s finance section.
As long as the Internet exists, digital currencies such as bitcoin will have value, and they are beyond the reach of government and banks at present. In addition to investing in digital currencies, he recommends hoarding cash and buying metal bullion coins.
Moy, who served as the 38th Director of the U.S. Mint from 2006 to 2011, is a member of the advisory board of Virtual Mint, LLC, which creates customizable cryptocurrencies for sovereign central banks. He is also the chief strategist for Fortress Gold Group, which provides gold Individual Retirement Account (IRA) rollovers and physical silver and gold bullion coins.
Moy related a personal story from half a century ago when his paternal grandfather in China gave his future daughter-in-law a wedding gift of a pure gold bracelet and a necklace. His grandfather, who had lived through wars, unstable governments and bank failures, viewed gold coins as a way to ensure his family would have money in event of future economic turmoil.
While the United States today is not the same as 20th Century China, the current times are still uncertain, making Moy’s grandfather’s gift relevant. Much of the world economy is in recession. World financial institutions are often undermined by techno terrorists and cyber thieves.
This being the case, Moy thinks it is a good time to consider ways to protect one’s earnings during times of economic uncertainty.
He views cryptocurrency as one of three avenues for diversification and portability.
Think of them as another currency like the dollar or euro, but the difference is that as long as there is an Internet, holders will have unlimited access to these funds.
Because cryptocurrencies are not regulated like other forms of money, they are beyond the reach of banks and governments for the time being at least.
Another option is hoarding cash. Moy thinks this is a good way to build up an emergency fund. An individual might need to do this in installments since banks limit how much money someone can withdraw daily. Banks are also required to report large transactions to the government.
Also read: Investing in bitcoin: smaller funds dominate, institutional investors stay on the sidelines
Precious metal bullion coins are also an option. Moy warned people to make sure bullion coins are produced by the government. Such coins are easily fungible, widely recognized, and come in a wide variety of values and sizes.
Bullion coins’ value typically rises when paper currencies lose value. Both precious metal bullion coins and cash can work when electricity fails, he noted, as was the case when Hurricane Katrina destroyed the power.
Cryptocurrency, metal bullion coins and cash will offer a level of accessibility, portability and security that are not provided by funds sitting in electronic banks accounts, according to Moy.
“And with the cloudy forecasts for the world’s financial system, those are all very welcome things,” he noted.
Featured image from Shutterstock.
Last modified: March 4, 2021 4:48 PM