The real interesting question is what is actually happening when the price of bitcoin skyrockets:  Let's use a wild example and say bitcoin went to $100,000.  This would be inflating the general money supply assuming people were buying things directly with bitcoin.  You are placing in a dollar substitute, kind of like counterfeiting (not the greatest term, but best example I could think of).  The overall effect is more money in the system.

Since nobody is buying things with bitcoin directly, it remains a derivative of the USD like almost all other fiat currencies.  This also makes bitcoin constrained by things like dollar liquidity shortages, etc, where federal reserve monetary policy is essentially bitcoin monetary policy.

There's been plenty of positive bitcoin stuff on Business Insider.  They've featured me on their website + David Seaman.  Seaman is a shitlib, but he's also a pro-bitcoin shill and at least talked about #pizzagate while being a lib.  It is unfortunate that lots of people feel the need to pretend to be metrosexual leftists in order to make themselves appear intelligent - Keith Olbermann style with the glasses and all.

Let me help you put two and two together.  The fraudulent, leveraged, debt based, monetary system requires infinite growth to not implode through cascading deflationary collapse.  We have a demographics curve and energy curve that have both maxed out.  Peak *conventional* crude was in 2004, and the working age demographic stalled out for every country that actually matters.

This means the current system has to unravel/deleverage, but guess what?  You can't taper a ponzi scheme.  This means a monetary reset and huge paradigm shift is inevitable in the near future to transition into a steady state economy instead of the one we have based on infinite growth.

The governments of the world and private citizens will utilize gold and silver as the basis of this new system.  Do you seriously for one second believe governments are going to adopt bitcoin as the world reserve currency?  It's not going to happen.  Yes, bitcoin can still exist and be utilized by people, but gold and silver will be the basis of the new system.  So you can type "bitcoin is the future" all you want, but it's not true whatsoever.  Gold and silver are the future and bitcoin might play some tertiary role, but it's definitely not going to be the leader.

It's a whale signal that they want other whales to drop suppression walls and move the market up.  Of course whales can always double cross other whales and all kinds of fuckery.

You didn't refute anything I said and just posted the equivalent of a bitcoin bumper sticker.  Bitcoin does not function as a store of value.  In the long run I believe this will be a rather large problem since being a store of value is critical to a settlement network.  In the short term the price can pump and dump to any kind of number imaginable.  The market can be irrational longer than you can remain solvent, as the saying goes.

As for a real world example, let's say you worked your entire life, 40-50 years or whatever, and you're sitting on a pile of money and are forced at gunpoint to convert every cent of it into either gold and silver or bitcoin.  In that theoretical example, who is actually going to choose bitcoin?  Pretty much nobody.  It's not because bitcoin is an "immature" technology or whatever.  This is the way it will always be.  Bitcoin cannot defeat the noble metals as the base of Exter's pyramid.  It's completely impossible.

Pretty damn cool silver invention:

https://twitter.com/FineBullion/status/836234523339677696

As a type of dry solder with no heat or electricity required, seems like it would have large use case in home 3d printing areas.

Gold people coming out of the woodwork against bitcoin heh:



Both Rickards and Schiff are actually correct, they just don't know why and don't know enough about bitcoin to articulate it, but this is why


*Disclaimer:  I am not bearish on the price of bitcoin in the short term, just that once it's market cap has topped out, everyone is going to convert the profits straight to the base of Exter's pyramid (gold and silver) due to being more anti-fragile and a better store of value.

The so called "gold bugs" have been right all along, just none of those guys know enough about bitcoin to articulate why.  The fact is, bitcoin does NOT function as a store of value, period.  The way bitcoin is designed pigeonholes it into acting as a settlement layer, and what is the #1 attribute needed for being a settlement layer?  ...being a store of value.  This makes it kind of inherently designed to fail at what it's supposed to do because bitcoin does not exist in a vacuum, it has to compete against the noble metals.  The noble metals are orders of magnitude better in anti-fragility, store of value, and even decentralization than bitcoin is.

As I said before:


This means bitcoin's value has to be floated by raw transaction flow instead of people hoarding it for no reason as a store of value.  It is my estimate that you would need something like 5000 TPS in order for bitcoin to function as a raw transaction handler instead of a store of value.  And the following post explains why bitcoin isn't a store of value in the first place:

https://steemit.com/bitcoin/@r0achtheunsavory/the-r0ach-report-vol-7-bitcoin-is-not-an-actual-store-of-value-because-there-is-no-real-price-floor-or-inelastic-demand

Done

Anonymint, you were talking about seigniorage in another thread.  It costs the govt something like 11 cents to make a $100 bill (positive seigniorage) and 8 cents to make a nickel (negative seigniorage), so technically anyone opting out of nickels and into bills in the free market is an idiot.  Yet even with this opportunity to participate in negative seigniorage, nobody does it...except Kyle Bass.

Oh well, dollar cost average per coin 0

I have a feeling this post will be stickied front page on /r/buttcoin.

A step to do what?!

Bitcoin fees were $0.41 to get in next block yesterday.  I think growth will start to hit a brick wall when that value reaches $1 to $2.  Everything is riding on so far non-existent scaling and the wheels can come off this thing pretty fast if it never happens.  You could even have some buffoons from Ethereum or R3 put skin in the game to block 5% of mining hash power from activating any scaling in bitcoin in order to direct customers to whatever janky system Vitalik or they release for their premine tokens.

The price of gold and silver both go up after bitcoin does from people like me converting imaginary money to real money.  If ETF was approved by some absurd chance, I'm taking all those profits straight to silver.

Weird, I tried to use Finex margin trading the other day after someone said they no longer had it and it blocked me from doing so saying it was disabled.

Sidjuhag, with the stuff you're saying you're essentially citing efficient market hypothesis, which is a total crock of shit that says the equivalent of - it's not possible for anyone to make a living in stocks because it's all like a coin flip.  There's plenty of people to contradict that view and they all weren't from sheer luck or insider information.

I didn't think Bitfinex even had leverage enabled anymore.  I haven't used them since halving when they goxed but looked in on them the other day and it was still disabled.

So basically Scamfinex wants you to believe there's millionaires just beating down the doors to buy all the bitcoins in sight on an exchange you would have to be insane to trust with your money, while on the more legit Bitstamp exchange the buys are less than 1/10th the size.  I almost feel like Bitfinex no longer has any users at all and we're just watching an API feed of one guy selling imaginary coins back and forth to himself.  I don't think they even have margin enabled anymore either.

Scamfinex is using the old whale trick of buying into their own walls to try and spur buying activity.  Notice how there's constantly been buys of 100 - 200 coins the last few days while no activity like that happens whatsoever on Bitstamp.  I'm so fucking tired of looking at Bitfinex's fraud activity after they naked shorted their own exchange then goxed everyone during halving.  These guys should be in prison.  

If large market makers actually were making constant buys of that size, they would not be using a completely insolvent exchange that already stole people's money in order to do so.  They would be using Bitstamp or one of the other exchanges.  Nobody risks millions of dollars on an exchange already guilty of goxing people.  Seriously, who here uses Bitfinex right now?  Nobody right?  So who the hell are these buyers supposed to be?

I don't see that happening.  I think they will use the legal system to unload a ton of draconian legislation and in the future, the only cryptocurrency transactions will be to and from fixed address aliases where the sender and receiver are known.  They will just make that the law and force the ecosystem to adapt to it and everyone will because they don't want the value of their coins going down.  It's ironic that govt imposing all these laws is actually beneficial to price because it symbolizes endorsement and that you should use it.