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December 24, 2013, 12:42:04 AM |
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Hi, there are some problems with the dollar and also euro and also other currencies and there also a "conspiracy theory" that todays financial system is not sustainable and "will" collapse in the few upcomming years. The dollar will fall, the euro will fall etc...
I would like to discuss what would be the effect on the bitcoin price... Lets begging small for example and say that euro will "fail" or there will be some banking issues in the eurozone (the us will be still Ok) how it will affact bitcoins price? There might be 2 situation i think,
1) The people will be worried about the currency/banking etc. situation in their country and will try to preserve the money that remained (after bank bailing for example, taxes i dont know what). These people would buy some hard assets for example gold etc. with there remaining money. One "commodity" in which they would invest would be also bitcoin probably (if the gov. doesnt ban bitcoin at that moment :-) ). So the price should rise.
2) The people will need "liquidity" (money with which they can buy, pay bills etc.) and due to their losses in bankign system, or wealth confiscation, or bailin etc. they will lose part of their money and the will quickly need some liquid money to pay the bills for example, buy groceries etc., so they would "sacrifice" any investments that they had and havent been ruined by the situation (their house for example, gold etc.), they will simply need "cash" (because their bank account is frozen for example). And one thing that they would sell is bitcoin, so there would be a surplus on the supply side of bitcoin and the price would drop...
which situation is more likely according to you. When i read this post after writting it, i think the first possibility is more probable, because i dont think a lot of people owns bitcoin so far, there might be few that own it and will need cash so they will sell it, but there should be more people demanding bitcoin as a "wealth preservation asset"... So if there will be any economic problems in the world, bitcoin should profit from it, the price should rise, am i right or am i missing something? What was the bitcoin price doing when there were problems in Cypruss?
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