as a holder of PM bullion, i'll argue that PM's have history behind them as well as a physicality. ppl like to touch and feel there money. also the hobo on the street can trade it as well as USD. these are the advantages of the current system. having said all that, i do see potential in Bitcoin but it has a long uphill battle to fight. Steelhouse is right, ultimately you need large merchants who will accept it. all this talk here about how bitcoin is already a currency is way too premature. i've looked at many of the transactions and they are way too small in value and volume to be conclusive. in fact, there is an attempt by the geek community to "prop" transactions and commerce to legitimize the bitcoin concept. not saying it to criticize, but it is what it is. its just way too early to tell.
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if you look closely at the MtGox All Time chart, you'll see its value leaps correlate very well to QE2 and the subsequent stock mkt ramp. this whole drive to develop a new currency, Bitcoin, is by ppl like you and me who are trying to get away from Ben and his devaluation of the dollar. the stock mkt is a mood indicator reflective of this sentiment (at least for now) of the dollar down, assets up mentality. if this indicator reverses (i think we are there) and we get deflation with a subsequent rise in the dollar, you will see Bitcoin values crash as ppl scramble for dollars. you're already seeing today in the drop in Bitcoin as stocks are down.
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in the short term, bitcoins success will be pegged to the stock mkt. if it goes down, as i suspect it soon will, then the value of bitcoins will follow it down. bitcoin is an inflationary phenomenon.
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i would like to buy $1000 in BTC from an honest trader. can someone help me?
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Help! i wish to make a BTC buy but was not happy with the 7% Mt.Gox commission he charges as well as the only $500 max per day buy per person. if u wish to sell to me directly please contact me.
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