What the Bitcoin market is telling us.
DWIG..that is fascinating.. could even lead to a resurgence of interest in HAM among preppers I would think. What a great community we have here! I appreciate your contribution to this thread, Jim
Bitcoin value is 45USD today do you expect it to have another sharp drops in prices? it seems that it is becoming mainstream every day passing.?
people are desperate for yield and will go way out on the risk curve to try to make a bit of money (pun intended).
5 bits = 1 250w solar panel = 7 ounces of silver= survival food for 1 month= 56 gallons of gasoline= 1 good used pistol= 300 rounds of ammo = garden seed for 2 years= ……………..
What the **** is a bit? and why would I speculate on one? There are so many real places to store ones wealth.
I thought that this site was about Solid Valued Living…..NOT speculation.
Jim H, thanks for your comments. However you point out WHY bitcoin is not an improvement over fiat currency by stating: "the value of a Bitcoin is almost guaranteed to increase over time as long as the currency does not fall out of favor or become the subject of Gov't interventions. The problem with the dollar, yen euro etc is that make believe fiat wealth ARE subject to Gov't interventions. Furthermore, the US govt already has expressed its interest in controlling biocoin and has a way (via monitoring all internet traffice, recording and data mining) to follow bit coin transactions, as detailed by Chris Duane, who has explored these issues with a bitcoin founder. Even assuming anonyminity, why cant the TPTB buy, sell, arbitrage, manipulate, hypothecate and make a secondary (paper) market for bitcoin just as they do now for gold and silver that is not held in physical form that can be used to make solar panels, jewelry etc? Real wealth is real wealth. bitcoin is not real wealth but by definition, is subject to manipulation and has been manipulated recently (see Chris Duane's recent report). I suggest that a person stack PM if they are interested in having or preserving wealth.
thank you for your post about amateur radio low speed packet and internet. Hams have been doing lots of things for a long time. Can someone supply a specific reference for hardware construction of the specific hardware referred to?
I consider your post very "holier-than-thou". My own personal view is not that Bitcoin is a speculation.. but rather that is a unique form of money/currency, that the free market likes so far.. and that there are things to be learned from the phenomena. I think that if one is to "buy in" to the phenomenon, they should do so only to a small extent.. I suggest no more than 1% of investable assets.. and it should indeed be thought of as risky. So, I am cool personally with 1% Bitcoin, 50% Gold and Silver (or more) in a portfolio. I have not yet pulled the trigger on my 1% of Bitcoin.. but am kinda kicking myself for not doing so.
Your points are well taken… by I have 1/5 of my basement filled with freeze dried food AND enough long shelf life seeds to outfit myself and several neighbors planting an acre each … no comment on ammo …. you get the picture. What then?
To me, the Bitcoin phenomenon is a window into the nature of money.. what makes good money? It might surprise you that my view these days is that debt-based fiat currency is NOT the devil. Any form of money needs a transparent creation mechanism… and there are certainly worse ideas than debt-based (like just allowing the government to create trillion dollar coins when their spending gets out of control). Anyway, the devils are two;
1) The FED
2) Governments spending beyond their tax intake.
Debt based money could work if there was no FED – only a relatively free market to allow the money, and cost of money (interest rates) to float based on market demand. This though would mean there would be periods of deflation (what we are seeing with Bitcoin).. and bankers don't allow that anymore;
Doug Short illustrates beautifully here
I agree with both you guys. Bitcoin is fascinating and has a place, and it is understandable as Jim points out to have a little bit for fun and as a (speculative?) investment, while not going overboard by relying on it for wealth preservation per se as olive oil guy points out. Most importantly to me, bit coin is a wonderful diversion to TPTB and to a corrupt government. I hope that the latter two spend all their resources and nightmares dealing with bit coin. Maybe they will spend a little less against the people.
I consider your post very "holier-than-thou".
Not intending to be "holier-than-thou". If you knew me I'd not fit that description at all. My comments are not directed at savy investors like yourself.
Just want to give some perspective to people mesmerized by the price spike. For a novice investor it is easy to get sucked into the high beta action. This has the same feel as the housing bubble and especially the tech boom where companies were no more than a name. It's the honest, hardworking folks who loose big in speculative activities.
I like one thing that Warren Buffet says. "If you don't understand an investment, then don't buy it." (paraphrasing)