2 votes

Bitcoins $60.00... Rises while FIAT currency continue to fall

Hey Everyone,

Back here with an update on Bitcoin. It's trading at about $46.50 this morning and as I predicted well on it's way to $100 and over. Who would have thought that a currency modeled on principles held within the Austrian school of economics would flourish against those FIAT paper currencies that those Keynesians love so much.

I know for some, Bitcoins is a concept so far removed from the current paradigm it's difficult to make the mental leap. Those people will get left on the side of the road, for your own sake do some research and try to understand the mechanics behind it. If anybody should be on board with this it's libertarians. It is really an ingenious and Revolutionary concept. What's so exciting about it is we still at the beginning of it all.

Online retail stores are just beginning to accept Bitcoins. Other business are opening the doors, exchanges are opening up, and eventually it will become more popular than any FIAT currency.

Fight for Liberty use Bitcoins

http://www.iexpats.com/2013/03/bitcoins-hit-peak-as-real-cur...

http://www.forbes.com/sites/saranyakapur/2013/03/05/bitcoin-...

http://blogs.barrons.com/emergingmarketsdaily/2013/03/05/mee...

http://www.techweekeurope.co.uk/interview/bitcoin-the-curren...



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I agreed with your post entirely Jonat.

I clicked reply to the wrong post.

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IMO, there's a good chance

IMO, there's a good chance that a bubble is being created here. The only thing is, is that gold and silver will also be bubbles for the same reason that BC will be a bubble: buying because of sheer panic/terror/excitement. If you buy for these reasons, the relative psychological impression of gold/silver/bitcoin will exceed its actual worth. This is how bubbles are created.

But with gold and silver, there's a good chance that you can safely enter into the market without getting burned, because the bubble bursts only after the crisis ended or if the recession becomes so severe and serious, that buying food and water becomes a far greater priority than buying gold. These are the two events which will cause the gold/silver bubble to pop.

But for these events to occur it will take quite awhile and smart people will see these times coming, which is the reason that buying gold/silver will be good despite that we KNOW that a bubble is forming.

There's less chance for a crash with gold and silver to crash during other times, simply because of its sheer history. Many people already own these metals. Which is the reason its growth will be less volatile, more stable and more crash resistant.

But BC has a greater chance for a crash coming, simply because it's a new currency. It's more volatile than either gold and silver. However, because it's new, it can also have greater increases in worth than either gold and silver. The market for gold and silver is closer to saturation point than BC is. Alot of people already own gold or silver. But few people can say the same of BC. Which is the reason BC has more room to grow than either gold or silver.

With gold and silver, if Peter Schiff is to be believed, we can see increases of the gold price to 300-400% of its current worth. With BC we can see an appreciation of 10.000%. And that's not even as extreme as Max Keiser thinks it can increase. According to him, one BC can easily gain a worth of 100.000 dollars - 1.000.000 dollars (assuming a 10% marketshare of the forex market), which would be a 200.000%-2.000.000% appreciation. But since Max Keiser is kind of kooky, I estimate a 5% ballpark estimate of those numbers, which is a conservative estimate in my view.

Alot of people realize this particular growth potential, not to mention that during great depression times, BC's usefulness as an anti state currency with anti theft/anti surveilliance capabilities is more useful than gold. Even if we disregard Max Keiser's obviously biased opinion, it's extremely likely that BC will outperform gold and silver, because it has more room to grow.

Which is the reason that BC has been able to quickly recover from previous crashes. It may be more volatile than either silver or gold, but its potential so speaks to the imagination that it will likely overcome any crash.

The BC currency can probably crash before either gold or silver does, but will then recover to follow the same path as either gold/silver. And people will choose BC for the same reason they choose silver and gold: it cannot be printed. The bubble will then only permanently burst for the same two reasons gold and silver prices will eventually burst: the great depression has ended or attaining food/water becomes more important.

Over 60.$

It's sad to look through all of the DP posts on bitcoins and find so many negative comments based on complete ignorance and lazziness. I have yet to find one anti bitcoin comment on the whole daily Paul that is actually informed on the subject of bitcoin. This is sad. The humurous aspect of this is how confident some of these people sound while showing their blatant ignorance. I'm done posting about bitcoins. The market will speak for itself.

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

I must agree

A recent thing I have noticed is the lack of replies. They just down vote your comment w no explanation. Weird.

The Red Coats are coming!

You will be back

I go in phases too. I get so frustrated with those who speak like they know what Bitcoin is, but clearly do not.

I wrote this (http://www.dailypaul.com/278383/healthy-skepticism-and-bitcoin) to help try to explain the phenomenon, but naturally it devolved into yet ANOTHER flame war thanks to the stodgy and arrogant know-it-alls.

Bitcoin is the epitome of a peaceful revolution and these people refuse to acknowledge it.

But Bitcoin is such amazing technology that it's hard not to share it with others, especially your liberty brethren. You will be back.

Keep fighting the good fight,

-Jix

Well said

I also think many people are scared by BitCoins, because they do not understand the different ways a person can earn them. They only count that you exchange current money for bitcoins, which is just a market option, not how bitcoins are created and earned.

I listen

to the No Agenda Show alot. Adam Curry has been trying to cash in his bitcoins but he cannot find anyone who will do it .Are bitcoins a scam?

"Ur doing it rong"

Clearly this guy is being a fear-mongerer because he can just go to mtgox.com and sell them for USD straight away. There's TONS of volume.

Or he can sell them for gold and silver on coinabul.com

Or hook him up with me. I'll take 'em 10-to-1 for dollars.

Adam claims

he has been to exchanges and he says they don't just give you money. They want your credit card #. He claims he cannot cash in his bitcoins. If bitcoins are legit people should contact Adam Curry at the no agends show and help him .

Right on!!!

Yeah I heard the same story from a relative that listens to that show. Tell him to contact me ill buy his bit coins.

"We’ve moved beyond the Mises textbook. We’re running in the open market." - Erik Voorhees

They are not a scam, you can

They are not a scam, you can trade them on exchanges. But what they are is a clear as day example of a bubble about to burst.

Not really

BitCoin is undervalued. If everyone in the world had an equal share of BitCoins, that would amount to 0.003 BitCoins per living human being.

But not everyone does have a

But not everyone does have a share of bitcoin and not everyone wants one. To be honest I was interested but looking at the charts I'm holding off. To me there is clear overheating and I don't want to get burned.

Time will tell and I could be wrong.

True, then here are the adjustments.

Here is a recent breakdown. Also bare in mind, these are conservative numbers.

http://i.imgur.com/p6i4xlt.png

This is a snapshot pre-Cyprus bank action. The number of active BitCoin users jumped another 50k in the last 4 days. The number of users(per person) with BitCoins earned is over a million, and the number of unique "wallets" (accounts) is over 5 million.

Using this data, BitCoins are still undervalued.

I wouldn't buy right now either

I wouldn't buy right now either, but don't write Bitcoin off. This IS the FED-killer.

I hope not

Why buy bitcoins. Just earn them. It's a currency more than a commodity.

how would you earn them?

how would you earn them?

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Protect your assets and profit from the greatest wealth transfer in history.

Same way you earn dollars AND

Same way you earn dollars. Also, you can mine them.

bit coin..

A friend showed me a website where you can apparently buy all kinds of stuff with bit coin. I'm wondering if anyone knows of real world items (as in computer or electronics etc) bought successfully?

Garnet
Daughter of 1776 American Revolutionists

www.bitcoinstore.com

Has a huge selection of electronics. I haven't bought anything myself yet from them.

ty~

I might try buying something just to see how it works out.

Garnet
Daughter of 1776 American Revolutionists

Why would you buy anything

Why would you buy anything with bitcoins when their value has doubled in just a month?

Seriously people, can you not see the bubble?

Exactly

If it's a-movin' up, up, up, only stupid people would use anything other than FRNs for their day-to-day purchases.

Gresham's Law and all that.

No, for the time being, bitcoins are merely a free-market equivalent to a T-bill. The current hype is merely that "...it'll bring you a higher rate of return than a Certificate of Deposit, and one day it might be widely accepted as real money."

Bubble!

Look out if you plan on buying bitcoins now. It's obvious to anyone looking at the charts that theirs a huge bubble being blown.

All those investing in bitcoin hoping for an alternative currency are being had by speculators as we speak.

Seriously, look out.

Bitcoin needs some more time, it needs to build slowly and maintain a relatively stable value in relation to other stable assets for me to start buying as a store of value / medium of exchange.

This is an intersting point

I do have time for the "Its in a bubble" Argument. Most everything else said against bitcoin is pure ignorance.

SO back to the bubble argument. I hang my hat on this. I know where it is going. It is what the world will yearn for eventually. Perhaps a handful or smarty-pants are throwing big money at it now, before the market really matures and is worth it... and of course there will be bumps along the way... But...

When the market matures and people want bitcoin... They will have to buy it off the smarty-pants. I would rather be a smarty-pants, than a punter paying $1000 for a bitcoin in 24 months.

www.SuccessCouncil.com
Protect your assets and profit from the greatest wealth transfer in history.

rpscallion's picture

Huh?

http://quotes.ino.com/chart/?s=nybot_dx

FIAT currency appears to be up over the last few days.

I see an incredibly volatile, easily manipulated sucker trap

I see an incredibly volatile, easily manipulated sucker trap, that's all. Compared to bitcoin, Romanian Lei, Albanian Leka, Indian Rupees, and Malawian Kwatchas are safer currencies.

"Cowards & idiots can come along for the ride but they gotta sit in the back seat!"

No.7's picture

Bitcoin will end up like Liberty Dollars

http://usatoday30.usatoday.com/money/2006-09-14-liberty-usat...

The individual who refuses to defend his rights when called by his Government, deserves to be a slave, and must be punished as an enemy of his country and friend to her foe. - Andrew Jackson

Bitcoin has no Headquarters

Bitcoin has no Headquarters to raid. No leaders to prosecute.

The only way to sack Bitcoin is to shut down the entire internet. Good luck with that.

(And now, cue the downvotes from people who don't understand the mechanics and mathematical principles behind Bitcoin.)

You know how else you could take down bitcoin?

You could corner the market. What's a measly 500 Million to the Fed or JPMorgan? All they need to do is buy it up and sell it off. Dead. If it doesn't die the first time, they'll do it again and again until all confidence is lost in it. That there is the point I'd feel safe buying it.