Author

Topic: BITCOIN /CC a displacement event (Read 854 times)

member
Activity: 86
Merit: 10
April 09, 2013, 08:19:50 AM
#2
Interesting
legendary
Activity: 2632
Merit: 1023
April 09, 2013, 02:52:15 AM
#1
I am *really* sick of seeing all these "market" analysis,  demand/supply etc etc.

What you are witnessing, and what BTC/Crypto Currencies are doing is a displacement event. Let me describe it as with the following examples

Imagine a high pressure vessel, linked to a low pressure vessel with a valve in the middle. When you open the valve, the high pressure gas displaces the part of the volume the low pressure gas occupied. The high pressure gas  does not suddenly rush back to it own side and sit there happily, it is not "rising" is is flowing into the space which is the size of the current market. The valve mechanism and pipes to get it in, is the CC and infrastructure solution.

Or even simpler, running water into a bathtub, it displaces the gas (air) that was in the tub.

Given the size of the market, yes there is fluctuation, but this is what you would expect from filling such a large vessel from such a small beginning, sort of like local weather patterns.

The final value will be to the amount or percentage that BTC/CC's displace


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Another analogy is, a new tech displaces and old tech. Recently Flat screens replaces CRT's, no one is en masses going back to CRT's



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Better Ideas displace worse ideas
Flat earth/ or earth centric solar system / universe was (a) widely held belief, bit it was displaced quite quickly when a better description came along.


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All the market analysis or fundamentals do not understand what is happening here, we are changing the very pool (money supply/creation/flows) you have ever worked in before.


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See stocks, bonds, derivative, futures, options and all other trading instrument, never ever "made" money the just reasisgen existing money supply. That is some is now prepared to give you $400 for that stock that cost you $10. No money was made, merely existing amounts exchanged. The closet it came to money making was intercompany share swaps, and perhaps letters of credit that were indorsed and then passed around.

The money supply though has always been tightly controlled by the Govt handing out banking licenses, to ADI's and the CRR and FRB model, as well as interest rates.

CC's occupy this space, the are displacing these currencies purely because of their multiple advantages.


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While I am at it. You can prove that Chartists or Fundamentalist are false (eg there is not analysis capable of a (stock) market)

lets say you did have a analytical method to predict the market, that produced 0.5% return, then you could apply this every day to some market.

over 30 years you would with just a $100 start, you would make, (1+0.005)^(30*365) = $5.23E+23 (more money that all markets ever)

so QED chartists you are not, and never has a model that that has worked and that's the proof why the maths does not lie

Also you cannot can see into the future from now.


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You can however and look at a bathtub and see it will fill with water and that water will displace the gas that occupied that area. This is what is happening.

Government FIAT is being displaced, by CC's


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