– Gold versus bitcoin debate makes further headlines as tech experts weigh in
– Peter Thiel tells Saudi conference he believes bitcoin is underestimated and compares to gold
– Steve Wozniak tells Money 20/20 that bitcoin is a better standard of value than gold and U.S. dollar
-Both men recognise that the US dollar has little value and there are worthy competitors to its crown as reserve currency
– Gold continues to hold its value and has multiple uses, bitcoin remains volatile and difficult to use
– Experts are pushing an unnecessary debate as gold and bitcoin state more about fiat than each other
Lords of the tech world Peter Thiel and Steve Wozniak are the latest to add fuel to the bitcoin versus gold debate.
At separate conferences both told audiences that they had great hopes for bitcoin, comparing it to gold. The co-founder of Paypal and the Apple co-founder both expressed views that suggest they believe the world’s biggest cryptocurrency is superior to the world’s oldest form of money.
Each of their comments demonstrated some ignorance when it came to how gold operates and also in how they believe the two assets need to be considered competitors.
Their comments were really about the badly managed US dollar and how its time is limited. Yet as we have seen throughout the year, thoughts by experts return to bitcoin replacing gold rather than being a statement on the pushback against fiat money tyranny.
Misinformed with misdirection
At first Thiel’s comments were relatively positive towards gold and he showed that he understood why investors choose to invest in both assets:
[Bitcoin is] like a reserve form of money, it’s like gold and it’s just a store of value. If Bitcoin ends up being the cyber equivalent of gold, it has a great potential left.
But Thiel also believes it has more potential than gold due to a misinformed belief about mining differences:
So bitcoin is also, it’s mineable, like gold it’s hard to mine, it’s actually harder to mine than gold and so in that sense it’s more constrained,”
Wozniak also had some interesting comments on how bitcoin and gold mining compared to one another:
“There is a certain finite amount of bitcoin that can ever exist. Gold gets mined and mined and mined. Maybe there’s a finite amount of gold in the world, but Bitcoin is even more mathematical and regulated and nobody can change mathematics.”
— Finom (@finom_company) 22 October 2017
Wozniak then described the US dollar as “kind of phony,” while describing Bitcoin as more “genuine and real.”
All about the dollar
To cut to the chase what Wozniak and Thiel are really saying is not that bitcoin and gold are competing with one another but instead that they are better than the US dollar.
This should be the main takeaway – the US dollar does have major problems. It has lost over 90% of its value, is controlled by one central bank and holds a huge amount of power over the rest of the world.
Things are so bad with the US dollar that the likes of Russia and China no longer want to hold it in reserve and are rapidly increasing their exposure to physical gold bullion.
This is where the crux of any debate should be, why is bitcoin so successful and can it follow in gold’s footsteps when it comes to holding its value and outperforming fiat currencies. The two assets are so dramatically different that there should be little airtime given to an either/or debate.
Instead finance and tech commentators should recognise that if managed successfully bitcoin could join gold in its role as an alternative and powerful currency that operates outside of centralised markets and the clutches of central banks.
Bitcoin versus gold is an unnecessary debate that distracts from the main issue: both history and new technology are now offering investors and savers great opportunities to save and spend outside of the fiat system.
Forced to choose for no reason
What is fascinating about comments made by the likes of Thiel and Wozniak is that they force investors to believe an unnecessary choice is necessary.
Why do investors have to choose between gold and bitcoin? It’s like saying you must choose between gold and silver or Apple and Amazon stock, there’s no need. You can invest in both.
Thiel and Wozniak’s comments do not add anything interesting to the discussion about the opportunities and risks of investing in bitcoin. Instead they merely add fuel to the headlines that ask if cryptos are ‘killing gold’ or if bitcoin is gold 2.0.
This line of thinking has been particularly popular this year as bitcoin has surged over $6000 whilst gold has climbed by 10%. There is no doubt that bitcoin has energised investors, especially those in the tech space and younger generations.
But because one asset is outperforming the other, does this make them substitute assets or should we consider them complementary?
Gold and bitcoin: Substitutes or complementary?
– Both are clearly seen as safe havens: Take gold’s reaction when events such as North Korean sabre-rattling happen, or bitcoin’s reaction to the Catalonia crisis.
– Both are decentralised: Neither asset relies on a central bank to manage supply, demand or price.
– Both have limited supply: Gold and bitcoin are mined. Gold relies on physical mining, bitcoin is mined mathematically.
The above three reasons show there are clear similarities between the two assets. They are also the main reasons why people choose to invest in gold and/or bitcoin. But differences do remain, making bitcoin and gold ideal complementary assets whilst showing the precious metal to be the ultimate safe haven against fiat tyranny.
– Gold is held by central banks, bitcoin is not. Currently the majority of central banks hold gold as part of their reserves.
The most recent example is Russia who added 1.1 million ounces to reserves last month in an ongoing diversification from USD. So far there is no evidence of central bank investment into bitcoin, suggesting that they do not have an interest in supporting its role in the economy.
– Gold is a highly liquid market. According to the LBMA some £13.8 billion worth of physical gold are traded just in London alone.
Despite the huge influx of investment into both the bitcoin and blockchain arena there is still some way for the cryptocurrency market to go before it reaches the level of liquidity we see in the precious metals’ space.
– Bitcoin does have enormous potential as a medium of exchange. Currently it is mainly bought by traders looking to bet on price movements. Very little of the daily support behind the price is thanks to it being used in transactions.
The beauty of gold is that it has multiple uses. No longer is it used in minor hand-to-hand transactions to the extent we would have seen last century but it used in international trade agreements as well as in other areas such as medicine, technology and jewellery.
– This leads on to the final and very, very important point: gold does not rely on electricity in order to be traded. It is a physical asset, unlike bitcoin. In Puerto Rico 95% of citizens are without electricity. If the entire monetary system were based on an electronic form of cash, such as bitcoin, this would cause multiple problems for those in disaster struck areas, or even places where electricity just isn’t as reliable. Gold bars or coins do not rely on electricity in order to be used in exchange for cash or goods.
Much of this debate fails to look at gold’s USP that has allowed it to survive as an asset and form of money for millennia: its ability to hold its value.
Bitcoin may well retain its value, but for something that has climbed 6,000% in less than a decade, without much evidence of its key selling points the jury should perhaps step outside for a bit longer.
This does not mean that bitcoin does not have potential. There are clearly some returns to be made. If the likes of tech billionaires such as Thiel, Wozniak and Musk are getting involved then there could be some interesting developments on the horizon.
However, discovery of an asset that is posting incredible returns does not mean sensible investing needs to go out the window. Consider the approach of Frank Holmes, CEO of San Antonio-based US Global Investors, which has $2.6 billion in assets under management and is one of the definitive top precious metals funds.
Holmes has recently backed and become chairman for HIVE, a gold-miner-turned-bitcoin-miner. Holmes is still a big investor in gold but sees the complementary potential for bitcoin. As anyone should approach investing, Holmes is diversifying his portfolio.
This brings us back to our main point, the debate is not about bitcoin versus gold but instead about investors and savers protecting themselves from the rapid devaluation of fiat currencies.
Bitcoin is new and volatile, with much to prove. Gold has been in existence as money and a store of value for millennia, not to mention all of it’s other roles.
Investors should continue to pay attention to the bitcoin chatter due to the narrative it offers around changing attitudes to money and the economy. However, they must remember that the debate is about security of savings and value. This is where gold is currently the only real contender for protecting your diversified portfolio.
Truth is, fears can play a big factor when prospecting and recruiting. Which, can slow or even kill the growth of one’s MLM Business… So, not only is this blog is aimed at helping you overcome those pesky fears, but I’m also offering my free Sponsoring Workshop Webinar. Let’s face those fears, crush them, and reach our unlimited potential.
Maybe you’ve taken a sip out of the cup of self-doubt before…
And for some network marketers, there’s been the self-questioning moments:
“Can I really do this?”
“Is this even for me?”
Because maybe you’re on the shy side, or, simply prefer your personal alone space…
You’re a leader and have gotten the “shy” objection from someone:
“I’m shy, I don’t know many people”
“I can’t go out and prospect like social Larry over there”
How many have you had someone like that?
Well, for every shy person out there, you have shy friends, they also know maybe two or three, maybe five people who are also shy.
You think they have a couple shy friends, as well.
And you tell them, “There you go, you can build a shy team.”
Whatever it is, there is NO EXCUSES.
You can still be successful like that in network marketing!
So, let’s go hardcore, let’s talk about recruiting.
3 Myths About Recruiting
Myth #1- You need to be good in sales.
Truth is, a lot of the top earners are not good in sales, and they can recruit.
You do not need to be good at selling to be a top recruiter.
Myth #2- You need to know how to present well.
Did you know being a great presenter can sometimes get in the way of your recruiting?
That’s because when you try and be the great presenter, you end up talking too much…
In the early stages of their business, many people make the mistake of focusing on being the movie instead of being the trailer.
Later in this blog, you’ll learn the difference between the two: being the trailer vs. being the movie.
Myth #3- Not many people are interested in MLM.
There’s tons and tons of people interested in network marketing!
The reason you haven’t found them yet, is probably because you’re working with the wrong people.
Working with the wrong negative prospects, or, even negative downlines.
If you have negative downlines, you make more money when they quit.
Because they’re sucking up your energy.
They’re sucking of your time.
So, those are 3 myths about recruiting that hold many network marketers back.
Some brain hacks to help you overcome your fears, and you’re going to recruit people faster, increase your income
Because those fears are just that, fears… (False Evidence Appearing Real as the saying goes)
It could be by overcoming these fears, the very thing that changes your business drastically in the next months, years.
5 Hacks to Overcome Prospecting Fears
Hack #1- You’re the messenger & not the message
You are the messenger.
You’re not here to tell the story
Simply letting them know of something that can help them out.
Sell the trailer, not the movie.
Most of you, if you’re stuck, you can’t recruit…
How many people say to you “Oh, um, I don’t like to sell, I can’t sell.”
Many people get that response because they’re trying to be the movie.
You know sometimes you send the link to people, to get them to watch, so you say something like, “I’m going to send you a link to watch more info.”
EDIFY THAT LINK!
Why not say instead…
“This is the video, it’s been watched 50,000 times, let’s talk about something that’s totally changed my life, changed my friend’s life, you need to… you know, whether you like it or not, you need to watch this video.”
Don’t just say, “here’s the link, take a look at it”…
Have you ever watched a captivating movie trailer, (whether you searched up the trailer or saw it on a commercial), it captivated your interest just a bit more, didn’t it?
It increased your interest for the movie just a bit more.
Be the trailer, don’t be the movie.
Hack #2 You’re sorting- not selling nor convincing
When prospecting, you’re simply there to collect a decision.
A yes or a no.
Yes, I’m in, I’m interested to learn more.
No, I’m not.
You are not not there to sell, convince people.
A lot of people…with those that I coach, or else where…
Most common question is:
“How do I convince this negative prospect to do that?”
You’re sorting, you’re not convincing.
Sort, sort, sort, sort.
Also, applies to your downlines, your negative downlines, you’re sorting downlines too.
Because, if you work hard to convince them, and by some sheer reason they do join, you will find yourself working too hard later down the line trying to convince them to take action on their business
Hack #3 The 3-second rule.
Have you ever had a prospect, maybe you at a grocery store, and you see that person has a good smile, good attitude, could be a good prospect, and then you’re thinking:
“Maybe I shouldn’t bother them, maybe it’s not a good time.”
You start overthinking it, and then next thing the person’s gone…
Have you ever had that happen to you?
Even at an event, maybe a convention, you see some leader and your inner dialogue goes a little like this:
“Oh, he’s a top speaker there, I want to get a selfie with him. He inspires me…”
“I want to go, but maybe I’m bothering him, maybe he’s got to get ready for his training…”
Maybe, maybe, maybe.
And 20 maybes later…
In an instant, he’s gone.
So here’s the three-second rule…
The second you think about something, someone, you’ve got three seconds you got to act.
So, I see another person like Jeff, three seconds:
One, two, three, I go up to him.
Maybe you have a prospect, I should follow-up with that person, the second you think about it, act on it, because the more you wait, the fear increases.
The more you don’t act our self-esteem goes down. Right. You want to have a good self-esteem?
Some people, “Oh, I’m having a bad day.”
You want to have a good day, take action.
Call three people, leave three voicemails, instantly you feel better about yourself.
Even if they don’t pick up the phone, you leave a voicemail, you will feel better.
Truth is, if we don’t, we talk ourselves out of opportunity every single day.
Sometimes, we are our own biggest enemy.
Hack #4 You don’t need them but they need you
This ties to where your energy and time goes to…
Because there’s the one and only you.
Because here’s the one thing, the most precious thing in the world that no one could ever get back.
What is that?
Spending time with terrible prospects and awful downlines…
Every second you’re spending on them, you’re missing out on focusing and finding the superstar leaders.
So, you have to understand, you don’t need them, but they need you, because you have the best opportunity.
You have an opportunity to process and change lives.
And if they say, “No”, great.
There’re 300 million in the US you can talk to.
You want to go global?
There’s over a billion people worldwide out there…
Hack #5 Reject them before they reject you
See, the whole key to being different and to always be the purple cow and stand out, do the opposite of the stereotypical network marketing distributor…
What’s a stereotype of a network marketing distributor for people out there?
Desperate. Needy. Salesy. Pushy.
How many of you have had a prospect that hasn’t got back to you yet?
A prospect that has disappeared on you?
They still haven’t watched the video.
So, you’re still waiting for them…
It could be the stone ages again, and they still haven’t watched the video.
They’re avoiding you because they don’t want to tell you, “No.”
Most network marketing distributors, their networks shrink.
They burn their friends, they push the wrong way, the network, they shrink it.
You want to always be expanding.
You always want to end every interaction on a positive note, because what happens…
The person you know may not become the superstar, but everyone knows someone that’s going to be a superstar in your business.
Let’s say Larry (pretend person) has been avoiding me, avoiding my text messages, not following up.
Here’s how you respond in the “purple cow way”- the opposite of the pushy, needy network marketer…
“Hey Larry, just want to let you know, our friendship means more than anything in the world.
I don’t want this business, this process to get in the way. It’s okay if you don’t join nor buy. I just want to be friends, and hang out again.
I promise I’ll never bring up the business again.
Is it okay, can we still be friends?”
How do you think he’s going to feel if I say that?
He’s going to feel relieved. Right?
Again, here’s the bullet points…
- Our friendship means more important than anything in the world.
- Obviously, it’s not appropriate time for you.
- I still want to be friends, I still want to hang out, and I promise I will never bring it up again.
- Is it okay if we still hang out?
The key is, you got to think long term.
Larry most likely won’t join the business, but he may invite me because I treat him with respect, and I left an impression.
He may invite me to a barbecue, and at that barbecue, I meet my superstar winner.
Most superstars, you see those 80,000 people, are all one or two degrees away.
But, not someone you know directly…
It was someone who you knew, that introduced you to someone else.
They later on, became a superstar.
Enough with the Myths and Fears
Now that you’ve got a new insight to the ultimate myths and fears network marketers face…
You can start saying goodbye to those little annoying prospecting fears that are holding you back, and ultimately, your business.
So, did this post bring light to any prospecting fears?
Comment below, and please share, you never know who this post can help:)
P.S If you want to learn tips and strategies on how to invite more prospects and sponsor more distributors, you’re invited to check out Simon’s Free Training Sponsoring Workshop Webinar.
Jim Rogers predicts: The next bear market will be the worst in our lifetimes.
Undoubtedly you will remember the crash of 2008 which we were told followed the worst bear market in our lifetimes and now Jim Rogers says the debt from then is a fraction of the World debt today. With Countries printing currency as fast as the presses will print the notes the value of the currency in your wallet, savings in your bank account or indeed your pension are dwindling in value and will not buy as much in the future.
Everyone needs to take notice of Jim Roger’s prediction: The next bear market will be the worst in our lifetimes and resolve to exchange currency for Karatbars Gold.
Sjuggerud: This chart is great news for gold…
From Dr. Steve Sjuggerud, Editor, True Wealth Systems:
When the U.S. dollar is going down, the price of gold goes up.
The reason is simple… It’s basic math.
Gold is priced in U.S. dollars… so if the U.S. dollar is weakening, it takes more dollars to buy the same ounce of gold.
That’s the logic, anyway. But does the logic actually work in the financial markets?
Sometimes it doesn’t… As the economist John Maynard Keynes famously said, “The market can remain irrational longer than you can remain solvent.”
But as it turns out, the logic works with gold and the dollar…
Gold’s compound annual return since the early 1970s has been about 6.9% a year. But when the dollar is weakening, gold goes up at 12.2% a year. And when the dollar is strengthening, gold only goes up 1.8% a year.
This table shows it simply…
To identify uptrends and downtrends, we looked at whether the dollar was above or below its 10-month moving average at the end of a month. Then, starting at the date of that signal, we measured gold’s performance over the following month.
You can see dollar downtrends led to strong gains in gold…
So… why is this important today?
Because we are now in one of those times when gold has historically delivered double-digit compound annual gains.
“The dollar could be starting a multiyear bear market,” my colleague Brett Eversole wrote yesterday…
The greenback recently hit its lowest level since early 2015. It has now clearly broken down from a multiyear uptrend…
Major currencies tend to move glacially. They have slow, long-term moves higher or lower… not drastic crashes or spikes.
So this year’s decline isn’t something that happens often. The dollar is down 9% in just the first eight months of the year – a massive fall for a major currency.
His conclusion was that the dollar could decline for the next two years.
If that’s true, then gold could be starting a multiyear bull market.
Don’t be too worried about the short-term fluctuations… We actually think the dollar could go up a bit more before it resumes its fall. But the dollar’s long-term trend is clearly down. And we are finally on board with gold again.
Gold could be starting a multiyear bull market. You want to be on board.
Crux note: Steve just recommended his favorite gold investment to his True Wealth Systems subscribers. According to him, it is likely to soar as much as 500% if gold enters a new bull market. You learn how to get a subscription right here.