Gold saw its biggest two day drop in 30 years these past couple of days, and anyone following the precious metals space closely is aware that all of these reasons put forward by the MSM for its recent downfall is total BS. Silver price is currently below production cost and for the first time perhaps ever, physical silver is totally sold out in the United States. I won't get too much into that aspect, but can expand if someone is curious.
So gold has been taken down like crazy, and this officially signals the start of something 'big'. The last time this happened it was just before the Lehman crisis, except this time, no bailout will be able to contain the mess that has been piling u.. Some fuckery is afoot, and we have entered into the final stage of this financial reset that has not only been 4 years in the making, but actually 4 decades since the end of the gold standard and the beginning of this fiat bubble we're witnessing the finals days of.
What does this all mean for Bitcoin?
Commodities have already been wiped out, and if you think this isn't spreading to other asset classes you're crazy. Stocks, bonds, real estate, everything you can think of will also drop. Brief hyper-deflation. You can bet your ass Bitcoin will get sold too. Cash will be king for a brief moment as the price of everything drops and people need emergency money.
That's when the fun begins. As the financial landscape is ablaze in fire at the realization that all this talk about QE and central planning and an economic recovery were all a big pile of manure, things will intensify and start to fall apart. Those problems the US and the Eurozone have been hiding under the rug through cheap printed debt will no longer be contained, and the cracks will leak out like a tsunami and set off total mayhem. The systematic risk of the financial system is global and massive in size when we look at the quadtrillion of dollars in derivatives that will fall like a house of cards.
The status of the US dollar as the reserve currency of the world will end (already steps have been taken by BRIC nations to conduct bilateral trades in their own currencies) and a solution to fix the massive levels of debt will be sought out. Gold will step in to serve that role and be revalued at multiples of the price that it is 'listed' at right now to help re balance central bank balance sheets that will have essentially been wiped out.
And Bitcoin you ask? People will need a place to store their soon to be worthless paper money, especially think of the trillions of black money that is hidden in exotic islands that can't easily rotate into housing or other inflexible hard assets. The dollar price of a Bitcoin at this point will easily be in the vicinity that Bitcoin maniacs like Max Keiser were promising all along, that doesn't exactly say much after the devaluation the dollar will experience, but you can be sure that it will be worth a small fortune in terms of everything else too.
So in this uncertain new economic landscape, with the no longer credible 'fiat' money system, businesses will need to adapt to the new waters they find themselves in. Sure there will be scare tactics and strategies employed to try to keep the sheeple from leaving the fiat dimension, but with the power of the internet, anonymity that Bitcoin offers, only the most idiotic will choose to stay in a radioactive wasteland not likely to be repaired anytime soon.
Until a new financial monetary system is agreed upon and proves to gain back the trust of the masses - Bitcoin will thrive and help the system to chug along somewhat and gain long term acceptance not only in terms of a new stratospheric price as we have seen it capable of achieving, but in terms of usage and business acceptance as well.
Perhaps one day Bitcoin will be replaced by something better, but in this upcoming economic reset, it will play a key role in maintaining some order in what proves to be an otherwise chaotic period in history. Get a hold of some Bitcoin and/or gold and enjoy the ride.
PS: This scenario could take some time to develop, I'm not suggesting entering a Bitcoin position TODAY, but make sure not to miss the train. Oh and when the shit does hits the fan, don't forget to send me a few coin so I too can enjoy being rich despite my fiat funds being locked at Bitcoin-24.com
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