I just had a vision, clear as day. Here's what's going to happen. As the police state in the U.S. consolidates its control over every aspect of daily life, very soon they will impose capital controls in order to prevent people from moving money offshore. At this point, the black market for bitcoin will go thru the roof. Sites like ubitex will be discovered, ads will appear on craigslist, rendezvous points will be agreed upon and bitcoin will be one of the ways that people protect their money from confiscatory inflation.
This will be a tough, dangerous environment in which to sell, but those with smarts and courage will be rewarded. In this scenario, bitcoin price will be high.
This will be a tough, dangerous environment in which to sell, but those with smarts and courage will be rewarded. In this scenario, bitcoin price will be high.
You talk about this as if the government crackdown on capital movement is in the future. It's already going on.
True, but not very many people need to move large amounts of value across borders. And if bitcoin is flowing out of the country to facilitate capital flight, then goods would need to be moving out as well, in order to get bitcoins to flow back in. Otherwise the bitcoins within the country become scarce. Keep in mind that currencies are just placeholders for goods, somehow those goods still have to move.
exactly!