Gold collapsing. Bitcoin UP.

[cypherdoc]

https://twitter.com/cypherdoc2/status/488350828575858688

[1714029893]

1714029893

[1714029893]

1714029893

[cypherdoc]

Here's an interesting post by Fred Wilson today. He's finally getting it. You may wonder why I'm saying that as he's been pretty vocal in supporting Bitcoin. The reality from my perspective is that despite that, he's been relatively shy in directly investing in Bitcoin as evidenced by some of his posts. So today's post is a hint that he may be doing more, plus he brings up some good perspective overall on what's happening with the internet and Bitcoin:

But maybe most importantly, we are investing in bitcoin and the blockchain, which is the foundation for truly distributed peer to peer marketplaces without the Internet middleman.

http://avc.com/2014/07/platform-monopolies/

I think he's saying he's investing in the Bitcoin unit itself, which is a strategy I've advocated for since the beginning. and even if he's not,imo, when investing in companies you open yourself up to greater risk AND the vagaries of owner manipulation or corruption. not to mention intervention by authorities. Even Krawicz mentions the limited upside in Bitcoin businesses. By investing in the unit itself, you're backing the fundamental impartial peer to peer network which is backed by the strength of the miners and the broader community. You might argue, "but what about the early adopters? aren't they in control and will manipulate Bitcoin itself?" Answer: no. They are not in control, as decisions are made by consensus and only with broad community support. Core devs are not even in charge as their source of legitimacy was inherited from Satoshi. And as far as I can tell, they have minimal positions in Bitcoin. Then what about Satoshi himself? Is he still in control? No,I think he has bowed out permanently and sees the big picture of what he's created. I think he will be satisfied with having changed the world forever. Even if he sells, so what; he deserves it and it wouldn't probably happen until we're at 10000 or more.

As I've said, Satoshi has set an almost impossible standard to meet in the cryptocurrency space; one that altcoins, alt platforms, and Bitcoin businesses alike will be hard pressed to mimic or sell to investors. That's not saying that many are making it happen now, that's for sure. But it will be interesting to see what happens to all these platforms and altcoins long term if the price starts to climb once again to significantly higher highs. Or in the real long run if Bitcoin can act as a world reserve currency.

[Spaceman_Spiff]

That's hilarious   .

[cypherdoc]

That's hilarious   .

ok, who's behind this? Care to spill the beans? 

[Dragonkiller]

That's hilarious   .

ok, who's behind this? Care to spill the beans? 

Karp Markeles.

[Melbustus]

Here's an interesting post by Fred Wilson today. He's finally getting it. You may wonder why I'm saying that as he's been pretty vocal in supporting Bitcoin. The reality from my perspective is that despite that, he's been relatively shy in directly investing in Bitcoin as evidenced by some of his posts. So today's post is a hint that he may be doing more, plus he brings up some good perspective overall on what's happening with the internet and Bitcoin:

But maybe most importantly, we are investing in bitcoin and the blockchain, which is the foundation for truly distributed peer to peer marketplaces without the Internet middleman.

http://avc.com/2014/07/platform-monopolies/

I think he's saying he's investing in the Bitcoin unit itself, which is a strategy I've advocated for since the beginning. and even if he's not,imo, when investing in companies you open yourself up to greater risk AND the vagaries of owner manipulation or corruption. not to mention intervention by authorities. Even Krawicz mentions the limited upside in Bitcoin businesses. By investing in the unit itself, you're backing the fundamental impartial peer to peer network which is backed by the strength of the miners and the broader community. You might argue, "but what about the early adopters? aren't they in control and will manipulate Bitcoin itself?" Answer: no. They are not in control, as decisions are made by consensus and only with broad community support. Core devs are not even in charge as their source of legitimacy was inherited from Satoshi. And as far as I can tell, they have minimal positions in Bitcoin. Then what about Satoshi himself? Is he still in control? No,I think he has bowed out permanently and sees the big picture of what he's created. I think he will be satisfied with having changed the world forever. Even if he sells, so what; he deserves it and it wouldn't probably happen until we're at 10000 or more.

As I've said, Satoshi has set an almost impossible standard to meet in the cryptocurrency space; one that altcoins, alt platforms, and Bitcoin businesses alike will be hard pressed to mimic or sell to investors. That's not saying that many are making it happen now, that's for sure. But it will be interesting to see what happens to all these platforms and altcoins long term if the price starts to climb once again to significantly higher highs. Or in the real long run if Bitcoin can act as a world reserve currency.

Other relevant quotes from that piece:

...
From laughable toys to dominant monopolies in less than a decade.

... We invest in networks that can emerge as dominant platforms by virtue of network effects. We like things that are laughed at. The more they are derided, the more we want to invest.
...
So, as an investor, when you see a dominant market power emerge, you should start asking yourself “what will undo that market power?” And you should start investing in that. We’ve begun doing that, but are not anywhere near done with this effort.

Sounds like he's really seeing bitcoin as the "next internet" so to speak. And I assume that, on some level, he sees control of some bitcoin-the-unit as an opportunity to use space/resources on that next network.

[Melbustus]

That's hilarious   .

ok, who's behind this? Care to spill the beans? 

Well, the author does indeed read this thread: http://realcoin.io/hi-guys.html

sha256("Gold collapsing. Bitcoin UP.");

[cypherdoc]

Gold down.

[cypherdoc]

This should drive the gold bugs crazy,

http://mobile.businessweek.com/news/2014-07-13/goldman-stays-gold-bear-as-bullish-wagers-increase-commodities

I'm no fan is Goldman, that's for sure, but I do agree with them.  Wow, 1040 by the end of year.

[cypherdoc]

Gold collapsing:  -2.54%, -$33.39

[wobber]

Gold collapsing:  -2.54%, -$33.39

Amazing! How low do you think it will go? What about silver?

[cypherdoc]

Gold collapsing:  -2.54%, -$33.39

Amazing! How low do you think it will go? What about silver?

if gold gets down to 1040, then silver could plunge to around 15-ish

[cypherdoc]

Gold collapsing:  -2.54%, -$33.39

Amazing! How low do you think it will go? What about silver?

if gold gets down to 1040, then silver could plunge to around 15-ish

actually lower, as I'm doing these calcs in my head and neglecting to factor in that silver moves much more violently than gold.

[Dragonkiller]

Never trust GS

[zeetubes]

Never trust GS

No shit. It doesn't really matter what GS says. I can't remember them ever being correct in their mainstream predictions, which are basically designed to mislead anyway. What matters more is what price point asian buyers will buy back in at. They still prefer PMs and real estate over stocks and thus far bitcoins. Once rich chinese investors feel comfortable moving big chunks of money using bitcoins PMs could suffer but that may be a while yet. Today's slam down of gold appears to be a $1B+ dump of naked shorts. The Fed doesn't want gold to appear like an attractve investment after a bad week on the DOW. It will be fun to see how low the prices go.

[traderCJ]

Gold down.

Two days ago, Bitcoin was around 640.  Why no "Bitcoin down" statement? 

As long as the Dow keeps humming along, gold will have a difficult time pushing through 1400.  But it will get there, no doubt.  Investors are wiring up to the hollow gains we've seen on the Dow for the past few years.

[traderCJ]

Never trust GS

What he said.

[Trader Steve]

Interesting to see who the sponsors of ZeroCash are:

http://zerocash-project.org/about_us

[sidhujag]

This should drive the gold bugs crazy,

http://mobile.businessweek.com/news/2014-07-13/goldman-stays-gold-bear-as-bullish-wagers-increase-commodities

I'm no fan is Goldman, that's for sure, but I do agree with them.  Wow, 1040 by the end of year.

Hedge funds are increasing their buy orders, usually means their customers are going short... typically when these guys come out and say they are short they are infact doing the opposite (building a long position).

The best contrarian tool however is to avoid listening to these criminals and simply check out what the herd is doing: http://fxtrade.oanda.com/analysis/historical-positions (XAU/USD)... you will notice that price goes up as herd sells or exits and vice versa... they started buying again so I expect a test of 1200 or something depending on if the herd keeps buying or  gets slaughtered.

Looking at http://fxtrade.oanda.com/analysis/open-position-ratios seems we do have a long way to go down still since 66% are still long.

[cypherdoc]

Interesting to see who the sponsors of ZeroCash are:

http://zerocash-project.org/about_us

that is interesting