From Silver Stacking To Crypto Stacking

I stack precious metals to preserve my wealth against inflation and have even cashed out in the past to feed my family after a job loss. More on this in a moment.

But first --

As far as I can tell, many of the fundamentals that apply to stacking silver and gold also apply to that of cryptocurrency. While I’m relatively new to the wonderful world of crypto, and I’ll tell you how I got here in a future post, I’ve been stacking silver and gold since 2004.

What does it mean to stack something of value?

In case you’re not familiar with the term “stack” it essentially means that I keep adding similar commodities to the rest of my "stack" with the goal of making the entire lot grow in size. When I do this, the entire thing I’m stacking (like silver or gold) gets more valuable. 

To “stack silver,” specifically, just means that I keep adding silver coins or bars to my collection so it continues to get bigger. With that growth comes wealth preservation against inflation.

As my stack gets bigger, the theory is that it’ll preserve what buying power I had at the time of purchase. 

What is wealth preservation, at least to me?

Those things I’ve been stacking, like silver, platinum, gold, and now Bitcoin, etc., will always have some sort of value. 

And because it retains some of its value it should at least partially hedge me against any sort of catastrophic event like hyperinflation or a host of other financial uncertainties.

I learned this firsthand back in 2008 and 2009. 

I ended up losing my job in the construction industry and relied heavily on my positions in physical silver, gold, and platinum just to live and feed my family. There were no jobs to be had and I had a young family that I just started, baby and all. 

We were suddenly down an income and needed money to pay bills and eat. 

Thankfully I had several thousands of dollars worth of precious metals that I was able to bring down to the local coin store to sell each month for the next few years. 

Those metals from the smallest 1/10th ounce platinum coin to the biggest 100 ounce silver bar all contributed to my success in not having to live on the street.

Inflation:

The thing with certain commodities like metals and, if I’m not mistaken, Bitcoin and ETH, is that when the price of everything rises in an inflation event, chances are good that the commodity prices will also rise to keep up with inflation.

And if they don’t rise in price, they, at the bare minimum, still retain some value because it’s an asset. This is in contrast to fiat currency (paper money not backed by a hard asset like gold) which could become worthless after so much of it is brought into existence.

And because those commodities usually also rise in price at a similar rate as everything else, it helps me be able to afford more during those times.

For example, I had started buying silver when it was 7$ per ounce in 2004, and it climbed all the way up to about 50$ per ounce in 2011. Of course, I didn’t sell it all at once but as needed on the way up and the way back down.

Because of this I was able to provide my family with food and help pay the bills. 

That's really the point, and is also why I've entered crypto as well. I would have no problem using Bitcoin as a rainy day fund to survive if the time ever comes.

This next part is of utmost importance: 

If I had just put the money in my savings account, or stored it under my mattress instead of putting it in precious metals, it would not have gone as far. And in fact, I can even argue that I would have lost money based on interest rates severely lagging behind inflation.

The dollar wasn't worth much then and is worth even less now and the only way forward is to hedge against the inflation that is probably going to get much worse before it gets any better. But this time, things are a little different.

Worse, I think.

In 2008 I couldn't get a job. That's not the problem now, because now nobody wants to work. Topping that off, is the fact that the US government is drunk with spending power and creates dollars out of thin air on a regular basis.

What am I to do?

Keep stacking:

The responsible thing for me to do is keep stacking commodities that hold value. That includes gold, silver, and now Bitcoin.

I’ve always been a fan of silver and gold because they've always been money all the way back to biblical times. If things get so bad I can always trade it for cash, bullets, or beans.

For me, Bitcoin is digital gold. It fits in nicely with my portfolio, and I believe it is more than likely the way of the future and will become more widely accepted as a form of wealth.

That’s why I’m here and investing my hard-earned money in crypto whenever it makes sense to do so. I’m not jumping in head first because this is an entirely different space than I’m used to operating in.

I think I'll continue stacking Bitcoin and other cryptos using the stacker mentality.

What is the stacker mentality?

The stacker mentality means buying on a regular basis to keep adding to my stack. My goal is to keep making it grow in size and ultimately in value. And, because I’m not buying in all at once I don’t have to worry about the price as much because I’m averaging it all out. 

That's how I grew my precious metals to a sizeable stack, and will do with Bitcoin, as well.

I may be late to the game, but I'd rather have the crypto in my portfolio with my gold and silver, than not have it at all. What are your thoughts?