Topic: Bitcoin is de-facto new asset class and Brexit confirmed it (Read 1237 times)

What golden goose are we talking about? China's GDP is over 10 Trillion USD, Bitcoin's total market cap is 10 Billion dollars.

Given:
1. The miners hand over everything they mine to the government
2. The cost of mining (electricity, hardware, employees, etc.) is nothing (zero)
3. Chinese miners mine *all* the blocks (100% of BTC is mined by the Chinese)
4. BTC price is $1,000 per (for simple maths)

Calculate how much Chinese miners contribute to Chinese economy, per year.

Bitcoin is better than gold and all other assets ever combined, a lot of people hate this fact so they manipulate it. They are manipulating its rise right now again to make people think this is a bull trap and trigger a selling phase, but the truth is the whole thing has been bullish since the last 150 dollar floor in January 2015.

If Bitcoin ever becomes a widley used tool, for undermining PBOC capital controls, then yeah.......Bitcoin might well be a Golden Goose to a handful of Chinese Bitcoin Cowboys, but on the bigger picture, it's nothing.

If there is a big panic in the condfidence of the Chinese Yuan, and too many of the peasantry flood into Bitcoin, in order to get exposure to the USD, then this will be great for the Bitcoin price.....until the PBOC say, "From this day onwards, Bitcoin is outlawed. Illegal to mine it, illegal to transact with it, illegal to own it." 70% of the BTC mining capacity is shutdown overnight as a huge volume of BTC simulatnaeously hits the market.

I don't know if this ever will happen, but the fact that it could happen, renders Bitcoin 'anything but', a safe haven asset, like owning physical gold.

Cause they want to kill the golden goose   

...and it can be turned off, with one snap of the fingers from the Chinese government.

Yes, Bitcoin is a new asset class, like gold, much better than gold.
It is ubcorelated to stick stock, it has predefined upper limit. It can be used. It even can hide from tax. Perfect for small investors.

Here is a chart I posted in my TA thread on the 19th June....sez it all, I think....

It is useless trying to justify this little increase in the price of bitcoin based on the Brexit. To be honest, the bitcoin has been very volatile these days without relevant economic news during this period. Last week we could see a price around $800; there were some relevant economic events those days? Of course not, so this Brexit has been irrelevant for the bitcoin price.

I don't disagree I think but maybe have slightly different perspective. Gold market is so much bigger and with more history so will draw in much more capital on shock events like this. Whereas bitcoin is a rising star yet to proove itself. And yet current value shows bitcoin is most definitely a valid asset because it is much higher than zero.

Brexit campaign has seen bitcoin rise in value from 500 up to 700 USD then steep correction when it looked like remain would win, this may or may be only partial connected to brexit in reality but perception is there. However my gut instinct tells me these moves are mostly due to a wider picture in which bitcoin has bottomed from the last bubble and technically became undervalued, and also with halving of supply coming up will soon start a new epic speculative bubble. Events such as brexit will only support the forces already underway

There is however, one crucial difference between Gold and Bitcoin.

Gold has been stuck in a range between $1200 and $1300 for months. When the Brexit referendum got underway, gold was trading right in the centre of that range. An event (Brexit) then happened that inspired fear in the markets...

...equities tanked
...government bonds tanked
...currencies tanked (against the USD)
...and the USD tanked against Gold.

Being a long term holder of gold, this was very reaffirming to see. If I never knew already, this clearly spelt out, what the market is going to do, when it finally loses confidence in 'the system', which it will do one day.


Bitcoin on the otherhand, was just on the wrong side of an almighty pump. Arguably, 'The Aussie Auction Pump', or maybe this was indeed 'The Halving Pump', or perhaps only the 'apertif' to the Halving Pump. Bitcoin had already ramped massively, and then taken an almighty fall. Now considering the size of the fall, a bounce of around $100 (50% basically), isn't that disproportionate. With that said, no doubt some of the hysteria driving other markets, rubbed off on Bitcoin...but unlike gold, serious capital is not looking at Bitcoin as a 'safe haven' asset. It just isn't. The Chinese government could tell the miners to switch off 2moro, ffs. Whilst Joe Sixpack might delude himself into thinking that Bitcoin is 'Safe Haven', any serious money that moves into Bitcoin, does so, treating it as a high risk, high potential gain capital venture.

Sure it matters who you quote. If we were talking history, and you quoted stormfront or /pol/, I won't take you quite as seriously as I otherwise might. Even when the quote itself is factually accurate.
Not how it should be, but, nevertheless, that's how it is.

On to factual accuracy: Gold was climbing all year long. Zoom out.
Bitcoin had a 25% dump days before the results came in, also rebounded $100 before the results came in, and, after the results came in and the outcome was clear, remained absolutely flat.
Explain how this supports your assertion.

No just no.
When was the last time anyone saw gold jumping 10-15% a day?

Ps: prices were moving before the voting closed.

And then there are those that would say gold is a bit overpriced.  In my eyes, it's still high.  Silver not so much, but this isn't 2011 anymore.

Bitcoin is getting there.  It still would need to scale up a lot, but I definitely view it as an asset like gold (not a currency!).  Rock on.

I don't agree.

Like Cyrpus and greece no new meat arrived, it was an excuse for a pump with the same tired old bunch of people on the exchanges. If it really was something a decent number of people ran to when things turned to shit we'd be seeing rises of hundreds of dollars a time.

Gold spike is because many traders even don't know about bitcoin and even when they see the chart of bitcoin they don't like to take risk investing in such volatility and finds gold as safer asset to invest. However i am sure in upcoming days with the money shorted on GBP will come into bitcoin. we all should wait for pump party again...

honestly I don't think it matters much who is quoted as long as it's easily verifiable truth (which this one is - it's a market number)

>Unironically quotes Zerohedge

But yeah, perfect backstory for a pump. Though proving a bit anemic, expected a bit more.

Some inverstors more conservatives will go for Gold, and others could invest in bitcoin. I think that the last 12 hours increases on bitcoin price are effect of brexit. The pound is going down for the following days.

Yes I agree, bitcoin is like gold but more volatile (and less suppressed). Its been seen before too when Cyprus bailins happened for example.

Hi,
I think Brexit confirmed that Bitcoin is de-facto new asset class and is in the same group with Gold - if you look at what Gold is doing (spikes most in 7 years, 27monhts heights) Source: http://www.zerohedge.com/news/2016-06-24/gold-spikes-most-7-years-27-month-highs.

Just in case you didn't notice - Bitcoin added 100 USD to its value in less than 12 hours (from 575 USD at 18:00 UTC to 675 USD 7:00 UTC the next day - Bitstamp).

If you say it's not connected with Brexit I don't buy it.

Opinions?