About the drop in gold and the rise of Bitcoin

[JFK]

a mainstream take on the whole thing
http://money.cnn.com/2013/11/22/inve...html?hpt=hp_t3

[crockett]

Bitcoins are just way too sketchy, specially at its current prices. Govt could still at anytime deem them illegal and it would crush the market. A added issue, is the electronic money market, can only work if there is places to spend that money.. That's the only way to create a real value that isn't just speculative. The people that have a lot of BC can't even cash them in, so the large gains they made from its spike are really nothing more than vaporware until they can exchange it for something of real world value.. Be that products or other currency.

This whole thing reminds me so much of pump and dump penny stocks.. Sure you can make some extra money on the side in small amounts, with a large risk, but any serious amount is extremely foolish.

[Paul]

Originally Posted by crockett

This whole thing reminds me so much of pump and dump penny stocks.. Sure you can make some extra money on the side in small amounts, with a large risk, but any serious amount is extremely foolish.

I disagree about people making small amounts, many people on this forum that only got into Bitcoin/Crypto currencies 6 months ago are sitting on 1000%+ gains. Of coarse with those sort of returns you'd be stupid not to cash out a large percentage of your gains.

High risk/High reward

Demand from China has gone through the roof, Pump & Dumps with the smaller crypto currencies like PPC, NMC, FTC etc yes absolutely.

No cypto currency will be stable until it's pegged to a currency, then again perhaps that's the intentions of the Chinese government.

Buy up all cypto currencies and peg them to the yuan, it's just a theory!

With a market cap of less than $10 billion that's pocket money to China

[Joshua G]

the fact that BTC has a preprogrammed limit on the expansion of the currency makes it non-viable as a stable medium of exchange. its price will be forever volatile & unsuited as a store of value. great for gambling. useless to store wealth.

the gold standard failed. Gold is a limited supply commodity & causes hyperdeflation/hyperinflation during boom & bust cycles. The economy creates wealth, thus the demand for dollars grows, but the supply of money stays the same, so the value of money skyrockets. The value of goods collapses as the currency becomes super valuable.

look at silk road. as BTC goes from 100 to 700, an eighth of bud collapses in price. the price is 1 BTC/eighth in march & now its .09 BTC now. But producers still have their costs so when they can only get .09 BTC, they have to sell far more to get the money. its great if you are long BTC but terrible for goods valued in BTC.

This is why the federal reserve was created & the gold standard passed away.

[/eco 101]

[ry0t]

Originally Posted by crockett

Bitcoins are just way too sketchy, specially at its current prices. Govt could still at anytime deem them illegal and it would crush the market. A added issue, is the electronic money market, can only work if there is places to spend that money.. That's the only way to create a real value that isn't just speculative. The people that have a lot of BC can't even cash them in, so the large gains they made from its spike are really nothing more than vaporware until they can exchange it for something of real world value.. Be that products or other currency.

This whole thing reminds me so much of pump and dump penny stocks.. Sure you can make some extra money on the side in small amounts, with a large risk, but any serious amount is extremely foolish.

Not sketchy at all. btcchina just opened up run by the ceo of walmart. his brother invented litecoins. also the senate had a meeting and declared bitcoins good for the economy and and up and coming payment solution. all of this raised the price of bitcoin. plus christmas is coming. the bitcoin is slated to go up to 1500 per coin by the end of december. we'll see about that.

[mineistaken]

Originally Posted by Paul

No cypto currency will be stable until it's pegged to a currency, then again perhaps that's the intentions of the Chinese government.

Buy up all cypto currencies and peg them to the yuan, it's just a theory!

With a market cap of less than $10 billion that's pocket money to China

Isn't the whole point of those monopoly money that they are not like regular currencies? If you peg them to a currency then it basically becomes just like any other currency. In your case it would basically be yuan (in different shape). Thats against the whole idea of "free currency"

[Lykos]

Hope gold goes back

[crockett]

Originally Posted by ry0t

Not sketchy at all. btcchina just opened up run by the ceo of walmart. his brother invented litecoins. also the senate had a meeting and declared bitcoins good for the economy and and up and coming payment solution. all of this raised the price of bitcoin. plus christmas is coming. the bitcoin is slated to go up to 1500 per coin by the end of december. we'll see about that.

Don't get me wrong, I'd be very happy to see a world wide currency not tied to any country.. However when I say sketchy, I mean it's far to volatile to people hacking the exchanges and at this point there is very few options to convert to other forms of currency and in no possible way can people move large sums of bit coins into cash. This is why I called it same as vaporware when it comes to these gains on the larger scale. These guys holding millions in btc simply can not convert it to cash..

Over time they can maybe fix these issues but for now it's still pretty sketchy for any real investment.

[DAMNMAN]

Originally Posted by JoshGirls Josh

the fact that BTC has a preprogrammed limit on the expansion of the currency makes it non-viable as a stable medium of exchange. its price will be forever volatile & unsuited as a store of value. great for gambling. useless to store wealth.

the gold standard failed. Gold is a limited supply commodity & causes hyperdeflation/hyperinflation during boom & bust cycles. The economy creates wealth, thus the demand for dollars grows, but the supply of money stays the same, so the value of money skyrockets. The value of goods collapses as the currency becomes super valuable.

look at silk road. as BTC goes from 100 to 700, an eighth of bud collapses in price. the price is 1 BTC/eighth in march & now its .09 BTC now. But producers still have their costs so when they can only get .09 BTC, they have to sell far more to get the money. its great if you are long BTC but terrible for goods valued in BTC.

This is why the federal reserve was created & the gold standard passed away.

[/eco 101]

Gold failed because you can't carry it around and trade it in micro grams easily and as tied to US dollars Nixon didn't want to payback the gold to the International investors and took us off the gold standard.

Bitcoin you can trade to .00000001. So 21,000,000 bitcoins at a value of $1,000,000.00 per coin, a bitcoin can still be divided into small enough amounts to buy a piece of bubble gum with.

[JFK]

Originally Posted by Lykos

Hope gold goes back

me too , for purely selfish reasons

[Paul]

Originally Posted by mineistaken

Isn't the whole point of those monopoly money that they are not like regular currencies? If you peg them to a currency then it basically becomes just like any other currency. In your case it would basically be yuan (in different shape). Thats against the whole idea of "free currency"

Crypto currencies have already taken on a different purpose than the one they where invented/intended for, once speculators jumped on the bandwagon they became a commodity.