Bullion banks have effectively gone long. This suggests a total shift is nigh.

The problem is that there must be muppets of sufficient size to fleece in order to recover the underlying assets, in this case gold & silver. The targets that make sense include managed money -- retirement funds, pensions,value

What's wrong with this is that managed money holds the same thing as the banks: paper derivative promises. This is a major reason for banks looking to sell their hot potato commodity businesses, which they've effectively run into the ground by extracting all the value.

With physical metal so heavily concentrated, it's a matter of time until populations realize the disparity. Since a potent alternative exists and is much more applicable to our increasingly abstract infrastructure, transition is all but guaranteed. Transparency (honesty) is one of the greatest draws -- required for comprehensibility.

Obviously this will not happen overnight. I think it will be at least two more years before that trend gains enough traction to become noticeable.

The war on gold is more technical than the war on Bitcoin.

It's called patience. There are possible unintended consequences from remaining in the system (trading), along the lines of paper trails and retroactive taxation. Bitcoin can easily leave trails as well.

Like I've said: I'd rather be a year early with a modest sum than a moment late and potentially left with nothing.

Further down... just for a bit.

Agreed, we still have at least two rounds of feature size improvements left before gains top out.

As far as the dip into the $400s, the volume looks to me as though we may have seen the brunt of exhaustion selling. I'd start buying anywhere below $550 now.

Back to keeping an eye on gold and silver...

Never trust a proudhon.

Price can't go much below USD$200 now without starting to squeeze margins on a large portion of miners. The next wave of input cost pressure should hit at around 50-100,000,000,000 difficulty, just as it helped kick off the price rise after the 100-200,000,000 level. As long as we get back to business as usual after a few more bouts of panic selling, that is.

War is on, got popcorn?

Thanks. You should've had way more upvotes.


If you hold dividend-paying stocks for the long-term, the price doesn't matter very much. If you trade for a living, price is all that matters. Either way, there's some level of exposure to the cannibalistic system.

So I don't care

A few months ago, I suggested that the USD$1k level might be the point where war would be declared on Bitcoin. It's starting to look like it has been. Both banks and gov't will protect their routes to conquest -- Bitcoin is finally being seen as a legitimate threat to their highly controlled regime of fiat and gold. Those plans will not endure intact, but having been laid down over decades there is a lot of interest in preserving those investments in time and resources.

Their downfall is that they don't see how the game is changing: it is no longer about exclusive domination, but inclusive collaboration.

Be self-sufficient and stand your ground, friends.

Good news from CoinTerra!

Glad to see you've caught up! Of course, the argument is essentially the same as that for gold input costs

Bitcoin should eventually hold enough value that its stock-to-flow ratio will be greater than any other form of money to date - that's when Bitcoin will have obviated any argument for gold. At this point, it'll be nice to see a correction as low as ~$400.


Do you have the link? I remember the statement, but the closest I could find was this.

It's been amusing going through old posts although it seems some of them have become corrupted, maybe due to all the forum breaches.

The authoritative opposition to Bitcoin will likely be along the lines of this:

e-Gold Founder Launches New Gold Backed Currency

A  transitionary solution at best.

Regulatory indecision was the sideshow: war is coming.

At this point, I think Bitcoin can act as its own closed economy... barely. Now we'll get to see which underhanded tactics are brought to bear - I think we've not seen the big guns so far.

Oh, and sure gold has been overshadowed and won't have as high a percentage growth as Bitcoin, but don't count it out yet. One word: transition!

FTFY

Neat.



Now two orders of magnitude greater please, thanks.

So has CCC with v2.

It's been fun! Remember when I said I was comfortable with the amount of gold I held way back then? Here we are...

I prefer BitcoinAverage for a global perspective.

Central banks are killing themselves by obscuring gold & silver values through derivatives. They're damned no matter what they do now; the transition is accelerating.

Yes, my mistake on that.

Jan 20th target for ASICMINER 3rd-gen hardware: 0.2w/Gh

Funny, that was when I was most enthralled and thinking - "Feed me moar!"

WB Proudhon

I think 50% is reasonable, but 75% would be better at the moment. Yes, the hardware delivery concern is an issue, but observe how the difficulty rise is slowing. There will certainly be another bump as new hardware comes online, and efficiency will be the determining factor in which operations will remain profitable and which will fail. As the larger leaps in capability decrease, having a sizable reserve will allow for latest-generation equipment acquisition. The only suggestion is that from now on there should be no more pre-orders.

Both Og and nonnakip have demonstrated dependability, long-term focus, and a community-oriented perspective. We still have a long way to go until transaction fees comprise the bulk of mining returns (the soonest I'm estimating is in the late 2020s), and any operation to last that long will be able to persist as a foundation of the system. With debt cleared, it will show reliable repayment and reputation; lenders will be more likely to re-issue loans, allowing for more rapid growth. Consider Amazon, which put virtually all profits back into the company during growth - it might be wise to keep the rate between 50-75% for the foreseeable future.