Bitcoin Will Devour Gold, Says MicroStrategy CEO

Do you have anything to say about Tether?

 

Tether is a stablecoin, backed by US$, I can see governments banning stablecoins as they directly compete with fiat currency. If I lived on the African continent or any of the emerging economies I would likely be holding some currency in Tether while using Bitcoin as a savings account. Tether helps to alleviate the shortage of US$'s around the world....Americans would be blissfully unaware of the problems the dollar shortage is causing.

 

Bitcoin news

MicroStrategy’s Bitcoin Is Worth $650 Million—up 50% in 3 Months
https://decrypt.co/48512/microstrat...ral&utm_campaign=feed&utm_source=trading-view

https://cryptoticker.io/en/bitcoin-will-reach-300000-by-the-end-of-2021-according-to-citibank/

https://u.today/bitcoin-breathing-down-mastercards-neck-as-its-market-cap-reaches-all-time-high

Here's also a very interesting article form Japan, pointing to the dilemma of launching central bank digital currencies, how not to empty the private banks. The problem many countries including Australia have of course is the bail-in laws, if the bank fold they keep your deposit... so if you have any sense at all you'll be moving your money OUT of the bank ASAP anyway

https://eng.ambcrypto.com/japan-cbdc-has-various-hurdles-to-clear-before-launch/

 

This is crazy stuff, look at this... you can't trust these fund managers

emerging markets.... seriously South Africa is listed under the top 10 emerging markets, what are these people smoking... you'd think they were being paid to push certain products

A lone voice/tweet of common sense


Dan Tapiero
First time I can recall #Bitcoin

included in list of macro assets by BoAML blue chip fund mgr survey. Can't imagine #btc
does not outperform all other assets. Fastest horse! It's so early for btc that it is only NOW being included and that's AFTER 11yr +250% annualized perf.

 

ok Bitcoin just hit US$18,000 it was US$16,000 on Monday am, holy crap... just went up another US$200 while I'm looking for a gif

 

https://eng.ambcrypto.com/whos-shorting-the-great-bitcoin-bull-run/



Trump Nominates Former Coinbase Exec for Key Bank Regulation Role

https://cryptobriefing.com/trump-nominate-former-coinbase-exec-key-bank-regulation-role/

 

Deutsche Bank: Bitcoin is Increasingly Being Favored Over Gold
https://beincrypto.com/deutsche-bank-bitcoin-is-increasingly-being-favored-over-gold/

The wall of money incoming

International Security Giant Prosegur Launches Crypto Custody Service
https://coingape.com/international-security-giant-crypto-custody-service/

 

Earlier this week soon after I posted this ^^^ the Bitcoin priced dropped by $1000 in a matter of a couple of hours.... what did I do? I laughed...

Because this VVV chart

Notice the divergence between the investor & trader owned bitcoin. The traders are what causes volatility in the market and as soon as their technical indicators show overbought they dump bitcoin
of course it then gets sucked up by investors almost immediately after....wonder how long it will take for them to realise this...

anyway... volatility is going down fast as investors pile in, what they are buying is a share of 21 million bitcoin. That is all there will ever be 21 million

https://blog.chainalysis.com/reports/bitcoin-price-surge-explained-2020

 

I understand how to buy a digital wallet, buy the currency, blockchain security, and digital key and safety. What I don't understand is the value of it. You have a $21 million Bit Coin Mine but what is the asset? I have $10,000 in gold and silver and I can touch it and feel it and see it everyday if I want. Yet I see Bit Coin go from around $9000 to $18000 in 8 months but might be back to $4900 again in a few months. I see Paypal is accepting it. Still what is the physical asset? Digital asset? What is that? A electromagnetic burst could make it totally useless. I have been thinking about dipping my toe into it but can't see paying $19000 for 1 coin. How does one invest in it to start.? My wife thinks I'm off my rocker as I have been investing in a lot of different venues lately. Between the Robin Hood crowd and option traders I would like a little more info.

 

And that is why $#!+coin will never be money: its paradigm is inherently deflationary, so the incentive will always be to hoard it rather than spend it. That means it will never be generally used in exchange, so it will never be generally accepted in exchange. It's just a speculative vehicle, digital tulip bulbs.

 

Ok. You have a BitCoin Mine with $21 million in it. and it can be sold in $10.00 increments. Every transaction is registered. So, who gets paid to track and log the BitCoin ( The Miners)? You cannot run the whole world economy on $21 Million. What is a Bit Coin mine? Is there a Bit Coin vault ? If bit Coin is $20,000 today just how much Bit Coin am I receiving and if the Bit Coin drops to $10,000 how much Bit Coin do I own now? Half?

 

you need to learn the history of money... go back to fundamentals...there is no capability for you to understand if you lack foundation

 

I'm probably not the best person to ask as I'm rather impatient....and when at times (like now) I'm grasping with another problem even more so. However I'll try.

Bitcoin is the same as paper fiat money and the eurodollar that runs the global economy, in the sense that trust and belief is where it gets value from.... fiat money and eurodollars (debt based instruments) are thin air....trust and belief, so is Bitcoin. Fiat supply is being massively increased, so is Eurodollars (debt) however we are also losing a lot of eurodollars due to large scale debt defaults, these "eurodollar squeezes" (refer Jeff Snider who coined the term) causes serious liquidity issues in the global economy....basically any country without a swap line have liquidity issues and many are also facing currency hyperinflation...these Eurodollar squeezes push these countries without swap lines towards Bitcoin because gold is very difficult to trade with...although I think Turkey does manage to do this quite well compared to everyone else. For example in Nigeria to buy products from China people must pay in US$'s, but when there are not enough US$'s they have to buy US$'s for a premium on the black market.... 30% of Nigeria have already changed over to Bitcoin.

Where Bitcoin is different is that it is a ledger that cannot be changed/increased it cannot be inflated. If you go through Mike Maloney's Hidden Secrets of Money series you'll realise we have been in this situation many many times during human history... where governments keep issuing more and more fiat money because they are spending far beyond their means. When they do this currency hyperinflate....and if you look at what you could buy for a dollar 10-20 years back...vs what you can buy now you will see quite a strange phenomena... it's stagflation.... in that some things cost a lot more....assets, food...other things are cheaper...wages, tech (the stagflation phenomena is also country specific) We have inflation or deflation depending on what you want to buy, where you buy.
Currently ALL other assets are in extreme bubbles.... with Bitcoin the world's most pristine asset outperforming & currently undervalued. If you go through the interview I posted of Raoul Pal & Michael Sailor, you'll realise that all these millionaire's and billionaires.... really have nowhere else to go with their money. With gold you will lose up to 80% of your investment on the long term due to the stock to flow ratio...I think 2-3% increase due to mining every year, keep in mind mining increase when price increase.

Add to this the coming revolution of the financial industry... we're going digital and the financial industry is going to have to change or be changed or rather change or die. There is already a big transformation occurring, money will be decentralised, it will move faster and further than ever before and nothing anyone does will stop this transformation. This means that Bitcoin is perfectly positioned as opposed to gold... for this coming revolution of finance. If we didn't have Bitcoin, the story would be all about gold.

 

Real Vision have a crypto section, it's free
https://www.realvision.com/shows/th...e_collection=02c56432802c4590a90feebbd6ec67e8

 

World economy engulfed by “debt tsunami

Debt or Eurodollars increasing ^^^^^ Eurodollars decreasing vvvvvvv

These fund managers can tell investors that Emerging markets are going to outperform.... it will be resources only...and we all know how mining companies exploit these countries....I wonder if the west will just turn a blind eye while the bankers and miners rip these people off

https://www.wsws.org/en/articles/2020/11/21/debt-n21.html

 

Thank you for your time and effort. A lot of what you said is what has me concerned about all assets. I will continue to do more research. At present I see too much global debt and high inflation on the horizon. This is not going to be good for stocks and cash but will be alright for bonds until they too hit a bubble and burst. Nothing like defaults to wipe out a bond market. My worry with Gold and Silver is that the government will freeze it or even worse confiscate it. I'm just trying to understand who is holding the underlying assets of the BitCoin. Once I spend my Bit Coin will there be be any available . Once the government cuts or quits sending me my Social Security I would need to dip into my Bit Coin. Little hard to think of it as a savings account as the pie available gets quite small as more people are buying the available assets that are left, whatever they may be.

 

Bonds are also in a bubble,

https://www.wsws.org/en/articles/2020/11/21/debt-n21.html


A good book to read is The Bitcoin Standard,

no one is holding the underlying assets, The miners process transactions and earn bitcoin, the maths in the software is basically the underlying assets.
It can't be hacked
It can't be altered without consensus of all miners
Bitcoin have had a hard fork which resulted in a split of Bitcoin into Bitcoin Cash and Bitcoin.... effectively because miners couldn't agree 100% on changes...

There is risk, nothing is without risk. However the current macro economic environment, to me, poses more risk.

Here is also another of my favourite podcasts on Bitcoin, an Open letter to Ray Dalio a bitcoin critic. Where Robert Breedlove explains Bticoin to Ray through his (Dalio's) own world view

 

I know it incomparably better than you.

There is nothing more fundamental than definitions. Money is by definition generally accepted in exchange. $#!+coin is not generally accepted in exchange and never will be, as I explained. So it will never be money. And as it yields no return apart from price increases, it is not an investment either, only a speculative vehicle.

A fount of misinformation.

 

I use too look forward to hear what Ray had to say when they had their retreats at Jackson Hole. His star doesn't shine as bright as it use too. I started watching that video you posted on a earlier post and only got half way through. Looking forward to finish it up later today. Thanks again.

 

now you are just embarrassing yourself

 

Currently Bitcoin is moving sideways, there are some predictions the price could fall...usually when Bitcoin drops it can drop $1000 in an hour or two, but this type of fall is not happening anymore because Paypal's new bitcoin buying facility have drastically reduced supply, Paypal alone is responsible for buying up all the newly mined bitcoin.

There's a whale selling his bitcoin atm, usually this would cause a massive drop where these whales then come back and scoop up the oversold bitcoins.... but the price have not really gone down. You could wait to see if the price drops but if you're a long term holder it wouldn't really matter...as it will go up longterm anyway.

https://www.tradingview.com/symbols/BTCUSD/

https://zycrypto.com/another-signif...t-could-catapult-bitcoins-price-to-new-highs/

 

So you have nothing. Thought not.

 

Coinbase Executive Says Institutional Interest in Cryptocurrency Increased Threefold
https://www.cryptoglobe.com/latest/2020/11/coinbase-executive-says-institutional-interest-in-cryptocurrency-increased-threefold/

Institutional FOMO: Is Australia’s Largest Investment Manager Eyeing Bitcoin[BTC]?

https://coingape.com/australia-largest-investment-manager-bitcoin-btc/

 

I find it hard to believe that your stock-&-trade doesn't involve selling/promoting Bitcoin. But, that aside, Bitcoin is a scam (I got you, on this one @kazenatsu ). No one knows the ISSUER. There is, therefore, no GUARANTOR-- i.e., no responsible entity to back them-- & nothing of value as collateral, to insure they have any intrinsic worth. Their value is determined exclusively by what people are willing to pay for them, which can turn on a dime, so to speak. Any business, including any bank, can refuse to have anything to do with this mystery currency. U.S. Dollars, British Pounds, French Francs, German Marks, Japanese Yen, and so on, will always have value as long as the world has confidence in those governments, & the economies of those countries.

Taking a dollar, for example, is like receiving an I.O.U. from the American government. As long as our country remains sound, its economy will run on dollars, & so they will be accepted just about anywhere in the U.S., at least. But if one was unable to find places that would accept it as payment (which is not at all likely) one could exchange it at the U.S. Treasury, or at any U.S. bank, for any currency one preferred. If the unimaginable happened, & the United States went, "bankrupt," it still owns all sorts of land, buildings, equipment, commodities, supplies, technology, services, & so forth, that could then be used to compensate anyone possessing dollars. But if no one is willing to take your Bitcoins, you're S.O. L.

This has happened, in the past, with other, high-flying, "commodities," which were once accepted as freely as cash. For a while, in the Netherlands, there was a tulip, "bubble," in which tulips were worth more than gold. The Dutch were incredibly infatuated with them. Until they weren't. And, in the blink of an eye, tulip fortunes were reduced to paltry sums of net worth.

Bitcoin should, likewise, be thought of like Pokemon cards, or Cabbage Patch Kids.
Currently, the main advantage of Bitcoin over other currencies (which all can also be spent, "digitally," as well) is for purchases of illegal goods or services, since Bitcoin purchases can't be traced back to the user in any particular transaction. If one conducts much of their business within that realm, it seems that Bitcoin should work for them. Though riskier than offshore banks, some may also use Bitcoin to hide income. Otherwise, it makes no sense to use this fly -by - cybernight, digital currency.

 

Until I can find more info and a better understanding I'm playing the Bit Coin a little differently. The miners are using more and more of Nividia chips and after Dec. 16 NVDA should be one of the very major suppliers.