This morning the price of Bitcoin fell as low as $480, this is off from the recent high of $900.
The price has recovered a bit from the $480 mark and is trading around $550.
Bitcoin is clearly a very thin market that will result in huge losses for recent buyers. Will the perosn that bought at $900 please stand up.
I'm not a person that gets into the whole gold or precious metals thing nor am I that smart like most people here, but having the Bitcoin go up so high in value, an indicator how much the government has been manipulating the dollar?
ReplyDeleteIt's more likely a sign of investors practicing the "buy high, sell low" investment strategy - it has a quick exit.
DeletePrinted money is visible in the products purchased by the well-connected, since they are the ones that benefit first and most from the printed money. I assume that is why Robert posts articles about ridiculous mansion and penthouse prices and outrageous art auctions. Unless, of course, Robert hates the rich and is sowing discontent and jealousy among the poor, which is how it might appear to a casual visitor to the site. I've often thought it would be a good idea to have a post about what these things signal and link to that post when posting about such activities.
I'd say it has more to do with how much the government has been manipulating BTC. The market cap (only around 2 or 3 billions before this huge run up) of BTC can be found in the cushions of couches at the CIA and Pentagon.
DeleteI obviously have no proof of this, but I know awareness in the general public hasn't risen much and the money in the pockets of individual BTC owners hasn't risen either. Big money is getting involved. They could destroy BTC simply by manipulating the market. No one can use a currency that has no stability.
@MyFirstNameIsPaul As a poor dude, I don't envy the rich. I take Bob's articles of rich people's places as a measurement of the economy in some way or what cronyism involves - depends on the article. I don't want the rich man's gold (or fiat); I just want him out of my way if I have success. Success being accomplishment not necessarily to be rich. And, good on the rich man for being rich.
DeleteThe intent of my statement "...Robert hates the rich and is sowing discontent and jealousy among the poor, which is how it might appear to a casual visitor to the site." is not to suggest that poor people come to the site and side with Robert, who clearly hates the rich, but to suggest that visitors, of any background, may feel that Robert hates the rich because of those posts. I'll add that I don't think highly of the rich who have gotten rich through force.
DeleteWhere do you get this stuff? I don't hate the rich, I am rich (and want more).
DeleteI do have a problem with CRONY rich who make their money with the assistance of government.
How come you don't post "Will the person who bought Gold @ $1,900 please stand up"?
ReplyDeleteOh I know. You own Gold, therefore its not stupid. You don't own Bitcoin so anyone who is down for a day is an idiot.
For the record, I subscribe to Wenzel's Daily Alert and he has been warning since the start of this year that gold would be going down this year. He also wrote (I think around $30) that it made sense at that time to but Bitcoin as a trade.
DeleteBecause Gold has been wealth for thousands of years. You can actually hold it on your hands.
DeleteBitcoin is a pump and dump fad that is a mix of 1s and 0s on a computer.
Spot the difference?
Microsoft Windows is just a bunch of 1s and 0s. You can't even hold it in your hand. That's why it's just a passing fad.
Deletehttp://www.economicpolicyjournal.com/2013/10/bob-murphy-on-bitcoins-money-mediums-of.html
Welp, no doubt that Microsoft produces stuff of value, via programs filled with 1's and 0's.
DeleteNo doubt that gold can produce stuff of value either.
Bitcoin, as many supporters like to say, is produced based on the value of "destroying electricity"...lol...the real sophisticated ones might even say it's "based on the laws of thermodynamics"-LMAO!
I like to say that Bitcoin thus far is based on the laws of "Bullshit Dynamics".
Rest assured though, many a millionaire has been born of Bullshit Dynamics.
The only difference is that nothing of value is being produced for those buying into Bullshit Dynamics at the wrong time, except for the early buyers that get out in time before everyone realizes that they own piles of bullshit, they end up getting away with everyone else's money.
So while most people like it when value is created for everyone, Bullshit Dynamics only requires shifting of value and input around to make some people happy-sure, there's losers that way, but of course, it's all based on thermodynamics....so it's cool.
"Bullshit Dynamics," yes, clearly a superior argument to what Robert Murphy put forth. Thanks. I'll also point out that you're making at least two convoluted arguments. The first is is to refute claims of why Bitcoin has value, neither of which were argued by Murphy. The second seems to have something to do with Bitcoin's being in a bubble, which also doesn't refute the claims of Mr. Murphy. And that's all the time I have left, folks.
DeleteI wasn't responding to Murphy, I was responding to your attempt to equivocate Bitcoin with Microsoft Windows. Naturally, I also question the value upon which Bitcoin is supposedly based according to some of its proponents.
DeleteThey aren't going to crash Robert. No matter how badly you wish they would just vaporize into the night, those pesky bitcoins are going to keep on doing what they do, eventually displacing all fiat.
ReplyDeleteAnd yet bitcoins are still up 30% from last Friday!
ReplyDeleteSo what does this mean for the people that bought between $600 ad $900 and now have huge losses?
DeletePurchasing Bitcoin is highly insecure as well as the investment might be lost completely. But, the upside potential is tremendous. Why do I say so? You can see here: http://lovingtheclassicsreviewsite.net/trend/will-bitcoin-prices-continue-to-rise-in-the-future/
ReplyDelete