August 28, 2020
Investors are hoarding rare casks of whiskey highlights why Bitcoin is among the most valuable assets to exist. In such economic uncertainty of these times, many are turning to Gold, whiskey, and Bitcoin.
Whiskey a Hedge against Inflation made by Supply and Demand Dynamics
Other individuals enjoy the more incredible things in life like cigars, watches, jewelry, cars, and good whiskey. Every whiskey cask is distinctive, aged to precision, getting the flavors of each barrel itself and remembering specific characteristics of the primary crops of grains.
Since the most special batches of whiskey are rare, they are often extraordinarily collectible and not only preserve their taste but increase in value meaningfully through the years.
For example, the American whiskey, Pappy Van Winkle’s 23-year Family Reserve, sells for $299 MSRP. Thus far, enthusiasts of bourbons would pay a small fortune for such elegant bottles of booze.
Because of this, retailers marked up the price of the rare find for as much as $3,399, amounting to over 1,000 ROI for a brand new bottle.
This brand’s “Family Reserve” older batches fetch much higher prices; it depends on the year, pack and the length of long beyond the bottle has been preserved
Because of these reasons, the investors have considered hoarding erratic whiskey approximately as much as they are Gold and bitcoin. The contrast essentially does a stable job of emphasizing precisely why assets like Bitcoin and Gold are valuable.
These rare whiskey bottles earn their massive price tags, not because of their flavor, nose, or mouthfeel. They have such high price tags because supply is so uncommon. However, demand is massively increased.
Similar to whiskey, more groups of Bitcoin can’t be made. Although new altcoins are going up, hopeful of beating out Bitcoin in several ways, the original cannot be beaten.
On the other hand, Gold is scarce, there’s no telling how much of the precious metal layer below the Earth’s surface or afar in its atmosphere. Bitcoin is far more similar to this liquid gold rush trend where investors are purchasing up whiskey.
From each cask, there is a set number of bottles made from it and only a certain number of barrels per year. Indications show that specific years turn out better than others, increasing the demand, but the batch remains immeasurable.
Once the initial gust of buyers hoards these bottles for sipping or mixing, after that, there’s no more of that whiskey. A small number of accumulators hold onto these bottles as reserves, whereas others are overlooked until somebody lucky trips upon it.
This similarity also stimulates early BTC gone due to lost private keys. The other jugs of whiskey downed, or private keys lost, the supply gets smaller. No more are ever created again.
If ever there’s an unexpected surge in attention in assets of any kind, might it be Bitcoin, Gold, or whiskey, when there isn’t sufficient resource to go around, prices shoot up?
This is exactly what is continuing on with unique whiskey, and what will in a little while occur in Bitcoin as more and more investors purchase objects that appreciate in cost in the face of inflation.