2013-05-19 Daily Forex : Should You Trade Bitcoin? An Expert View

[bobdude17]

http://www.dailyforex.com/forex-figures/trading-strategies/trade-bitcoin-expert-view/1058

[1714058593]

1714058593

[1714058593]

1714058593

[Dusty]

A notable one.

I quote the last sentences:

Though only available in fixed, limited supply, Bitcoin has demonstrated the demand for an exchange currency not controlled by a central authority. There is no central point to shut Bitcoin down. You can’t point a gun at a prime number and expect things to change. And we all know how effective governmental attempts to shut down peer-to-peer networks have been. The digitalization of entertainment disrupted copyright monopolies, 3D printing machines are disrupting production monopolies, and crypto currencies are going to disrupt transaction monopolies.

Nobody can predict the long-term possibilities for Bitcoin. Either Bitcoin is worth zero, or is worth 10,000 to 100,000 each.  It will take years for the market to figure out which it is. Until then, don’t expect Bitcoin to go away.

[SamS]

It really is like a penny stock with only an 11M float of which a substantial fraction is locked up. Trading volume is also anemic which leads to the same kind of issues you see in penny stocks. I'd be more of a buy and hold guy if I were a long term believer.

[vokain]

this guy really gets it!

Bitcoin’s geopolitical independence makes it perfect for trading since it can achieve what other currencies cannot; a purely market-driven currency free from political intervention by the states it is backed by. There is nothing to stop the USD being replaced by a crypto currency as a reserve currency. In fact in a world of economic currency wars, having a stateless currency such as Bitcoin could be considered to be an ideal scenario.

[BTCLuke]

A very bullish article, perhaps a bit too bullish for comfort. Many investors/traders are going to see that and bounce before getting two paragraphs in because the author scared them off being so gung-ho with reckless abandon.

Not that he said anything wrong, per se, but we all need to be more careful than than when exposing noobs to bitcoin.

Actually, there is one thing I disagree with in it... The author stated: "There is nothing to stop the USD being replaced by a crypto currency as a reserve currency" - Which of course discludes the will of all central banks and most governments worldwide.

It may be used to trade between BRICS and other nations that don't like the petrodollar hedgemony, but as long as central banks still exist, which is guaranteed to happen as long as governments can say what money is required to pay their taxes in, only central banks can dictate what the official reserve currency is.

[Dusty]

Actually, there is one thing I disagree with in it... The author stated: "There is nothing to stop the USD being replaced by a crypto currency as a reserve currency" - Which of course discludes the will of all central banks and most governments worldwide.

+100

[aigeezer]

"free from political intervention by the states it is backed by" is not the same as "free from political intervention". I assume there will be plenty more of the latter. The early battles will be fought at the fiat/BTC border, but I imagine that will change if/when we just start ignoring fiat. One obvious easy form of political intervention is agenda-driven state buying/selling of BTC. Meddlers gotta meddle.