Comment: dabooda here . . .

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In reply to comment: Yes, I do really think so. (see in situ)

dabooda here . . .

Ben had to go. And I really wish he would.

I think we've boiled away the fat and are down to the bone of the problem with Bitcoin. If people BELIEVE that Bitcoin is not a stable store of value, they will not use it as money. They may play investment games with it, alternately hoarding or selling it, but they won't use it as it was intended to be used: as a medium of exchange for real goods and services. Investors look for the best bang-for-the-buck, but the general public simply wants bucks that won't go "bang!". A tiny number of committed ideologues may hold on despite their best economic interests, but they will need to be economically suicidal in their determination. Spend $200 to buy a bitcoin this week, and next week you have $10 purchasing power -- who's going to play that game for long?

But there is a bright side for Bitcoiners: unlike the markets for gold and silver, Bitcoin is entirely a "physical" market (There's a lovely irony in so describing an electronic currency, I know), in the sense that Bitcoins cannot be counterfeited or sold short -- mechanisms that are used to suppress gold and silver prices. What would the prices of the precious metals be like, do you think, if JP Morgan did not have free rein to sell "naked" silver contracts? If the gold and silver ETFs actually held 100% of the physical metal they claim to have? If the bullion banks did not have "leasing" programs that create multiple owners/leaseholders of every bar of gold? What if "gold" bars could not be fabricated of titanium in gold plating?

None of that can happen with Bitcoin, so the price suppression methods that the banksters can use against it are pretty much limited to pump-and-dump. The success of the suppression is NOT certain, if enough buyers step in to purchase Bitcoins as the price drops. The banksters can only sell Bitcoins they actually own -- Bitcoins can't be sold short. In that sense, Bitcoin is actually a better money than precious metals!

But don't rule out the bankster/fascist's last resort: criminalization. To stop drug dealers and save the children, of course. Bitcoin transactions COULD continue to happen after criminalization, but every time one entered a Bitcoin transaction, one would have to worry that it could be a "sting," designed to "make examples" to scare people away from Bitcoin usage. If that happens, Bitcoin could still be used to buy and sell products online, but it will NOT be usable for personal services or for products purchased in a store. Any time you actually MEET the other party to a Bitcoin transaction, you both would have to wonder: "Is he a Fed? Will he inform on me? If he is ever prosecuted, will he turn over my name, to get a lesser sentence for himself?" That would radically curtail the demand for Bitcoins, hm?

So: just when things look brightest for Bitcoin, expect the worst -- because that's when the banksters and politicians will start to panic, and "go Stalin." Hard times ahead, I'm afraid.

All that being said, I think you're exactly right about this: "Bitcoin is to the Banking Elites what the Liberty Movement is to the Political Establishment." That makes it all worthwhile.

P.S. I just saw that TODAY Bitcoin has been as high as $266 and as low as $36. I hear Ben giggling.

Recommended reading: The Most Dangerous Superstition, http://www.amazon.com/Most-Dangerous-Superstition-Larken-Ros...