How to Explode the Price of Bitcoin OVERNIGHT!

[BitcoinBarrel]

You are not willing to part with your coins that you paid alot for and "worked" so "hard" for. That is good and dandy for you but I want to sell some of the Bitcoins I bought at $2-$5 dollars to enjoy some of the fruits of the investments I made. May I please do that without newb bullish threads from a random Joe Six Coiner about how much Bitcoin should worth?

I personally think $10k USD is undervaluing a Bitcoin. But we live in the real world and the real world disagrees. Aside of few individuals all over history societies proven to be pretty stupid in many many occurrences.

So shill and cheer differently please, noob.

Y so Angry? You must have sold a lot 

[1714998987]

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[1714998987]

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[1714998987]

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[CMMPro]

AFAIK all QE money supply goes directly to repurchasing US bonds....which then goes into infrastructure etc. just like regular government spending. (The govt gets to spend it the first time into the economy.)

This is how it is "filtered" in, the US govt doesn't just hand it to banks (other than bailout money which is a small amount of QE).

Basically the fed is purchasing around 90%+ of all US Treasury bonds issued...no one else wants them anymore.

[lophie]

You are not willing to part with your coins that you paid alot for and "worked" so "hard" for. That is good and dandy for you but I want to sell some of the Bitcoins I bought at $2-$5 dollars to enjoy some of the fruits of the investments I made. May I please do that without newb bullish threads from a random Joe Six Coiner about how much Bitcoin should worth?

I personally think $10k USD is undervaluing a Bitcoin. But we live in the real world and the real world disagrees. Aside of few individuals all over history societies proven to be pretty stupid in many many occurrences.

So shill and cheer differently please, noob.

Y so Angry? You must have sold a lot 

just a couple of hundreds.

[freedomno1]

Wait until someone really puts 200 million in 

[Diabolicus]

+1

you sir, are one educated person, when I read most of comments in the bitcointalk a question pop-up in my mind "what am I doing here wasting my time reading stupid posts" but you remind me that there is still educated and smart people around here, not only the pump and dump and crying and scaming a-holes...... thank you I enjoyed reading your post.

+1

[notme]

AFAIK all QE money supply goes directly to repurchasing US bonds....which then goes into infrastructure etc. just like regular government spending. (The govt gets to spend it the first time into the economy.)

This is how it is "filtered" in, the US govt doesn't just hand it to banks (other than bailout money which is a small amount of QE).

Basically the fed is purchasing around 90%+ of all US Treasury bonds issued...no one else wants them anymore.

Nope, it's going into mortgage backed securities to prop up the housing market.

[CMMPro]

"On September 13, 2012, the U.S. Federal Reserve launched its third round of quantitative easing.
In addition, the Fed officially stated – for the first time – that it would keep short-term rates low through 2015.
These moves reflect the Fed's view that the economy still hasn't reached the point of self-sustaining growth (in other words, the ability to keep growing without stimulus).

Accordingly, the Fed has adopted what has been called "QE Infinity," a plan to purchase $85 billion of fixed-income securities per month, $40 billion of mortgage-backed securities and $45 billion of U.S. Treasuries. Unlike QE1 and QE2, the current program has no set end date."


I guess we are both right...thanks for making me go research that more. I thought it was all going to US Treasury bonds.

Cheers!

[vokain]

AFAIK all QE money supply goes directly to repurchasing US bonds....which then goes into infrastructure etc. just like regular government spending. (The govt gets to spend it the first time into the economy.)

This is how it is "filtered" in, the US govt doesn't just hand it to banks (other than bailout money which is a small amount of QE).

Basically the fed is purchasing around 90%+ of all US Treasury bonds issued...no one else wants them anymore.

Nope, it's going into mortgage backed securities to prop up the housing market.

any chance of QE failing soon? my mom is imminently buying a house and I'd rather she didn't, for various reasons.

[CMMPro]

Bernanke alluded to slowing QE this fall but most of us think he is just buying more time....the second he slows QE the house of cards collapses....he has no way out of this. (Unless the economy miraculously takes off...haha.)

I would guess that come September there will be more bad news as to why they can't wind down QE.
(If anything I think they will increase it.)

[phatsphere]

....the second he slows QE the house of cards collapses....he has no way out of this.

i wondering for quite some time now, where does the stimulus money go?

[rpg]

As long as new people with new money come in we're good

correct, every 10 minutes 25 new bitcoins hit the market. That's the rate of new fiat required to enter the system

[CMMPro]

....the second he slows QE the house of cards collapses....he has no way out of this.

i wondering for quite some time now, where does the stimulus money go?

"QE Infinity," a plan to purchase $85 billion of fixed-income securities per month, $40 billion of mortgage-backed securities and $45 billion of U.S. Treasuries.

[CMMPro]

As long as new people with new money come in we're good

correct, every 10 minutes 25 new bitcoins hit the market. That's the rate of new fiat required to enter the system

I've been thinking about this a bit, doesn't that presuppose that every new bitcoin is sold for profit?
I'm mining and not selling even one of my mined coins, so at least for my little piece of the pie no one has to buy them or even $1 has to go into the bitcoin economy right now to support the production of that coin.

I believe that for some major miners (ASICMiner etc.) there is no way there selling most of the coins they have mined.
I think they have >150k btc on the books they haven't sold.

So, in reality very little money has to flow in each day to support 3600 coins being mined.
I don't think the relationship is exactly proportional.

I get the idea that regardless if they are sold supply > demand so price should drop...I just don't think those coins are in the "supply" side the way people think they are.

[kneim]

any chance of QE failing soon? my mom is imminently buying a house and I'd rather she didn't, for various reasons.

Tell your mom to only accept fixed interest, that should work. It's normal here in Germany.

[rpg]

I get the idea that regardless if they are sold supply > demand so price should drop...I just don't think those coins are in the "supply" side the way people think they are.

bitcoins are a store of value. Bad times bring money in (look at the run caused by cyprus). But regardless, new money has to come in and is that money that determines the fiat value of a bitcoin.

[JimboToronto]

my mom is imminently buying a house and I'd rather she didn't, for various reasons.

There's nothing wrong with buying a house, unless it involves a mortgage.

[CMMPro]

I get the idea that regardless if they are sold supply > demand so price should drop...I just don't think those coins are in the "supply" side the way people think they are.

bitcoins are a store of value. Bad times bring money in (look at the run caused by cyprus). But regardless, new money has to come in and is that money that determines the fiat value of a bitcoin.

I agree with you from an economics perspective....I'm just not sure that bitcoin and it's value are correctly following any rational economics principles yet. The price seems to still be determined more by perception/maniulation than the amount of money/value/trade in the system. It is getting better but I'm not convinced that the price correlates to the money flow much.

We have some indicators such as "money flow index" which loosely correlates with price: http://bitcoincharts.com/charts/mtgoxUSD#rg60ztgSzm1g10zm2g25zi1gMFIzv

[astutiumRob]

Bitcoin is only as good as the fiat it can be converted into.  Remember that. 

Bitcoin is as good as the items it can exchanged for.

[Anon136]

When the dollar collapses, the price of bitcoin will explode overnight

  SMH....IF the dollar collapses, we won't have any need for Bitcoin because everyone will be broke.

Secondly, Bitcoins are not "worth" $100.  $30-$50 is still extremely high for something you can't spend.

money isnt value its self, its simply a proxy for value. having money become worthless doesnt make the vegetables in your garden worthless, or the furniture in your house, or your car. those things will still exist and a new medium of exchange will rise to facilitate trade. That medium will act as a proxy for the same value that the dollar used to act as a proxy for.

[Coinseeker]

When the dollar collapses, the price of bitcoin will explode overnight

  SMH....IF the dollar collapses, we won't have any need for Bitcoin because everyone will be broke.

Secondly, Bitcoins are not "worth" $100.  $30-$50 is still extremely high for something you can't spend.

money isnt value its self, its simply a proxy for value. having money become worthless doesnt make the vegetables in your garden worthless, or the furniture in your house, or your car. those things will still exist and a new medium of exchange will rise to facilitate trade. That medium will act as a proxy for the same value that the dollar used to act as a proxy for.

The thinking that life will go on as normal if the dollar was to collapse, is just silly.  Things go bad for the dollar, they go bad for everything else, including Bitcoin.  Even if Bitcoin had the chance to fill a void as big as the dollar would leave, it still couldn't remotely handle the task, given its extremely low transaction/second rate.  Thats the Bitcoin Achilles heel, that everyone pretends doesn't exist. Bitcoin can't even compete with Visa's transaction capabilities.  How do you expect it to replace the dollar?