Topic: Gold collapsing. Bitcoin UP. - page 944. (Read 2032274 times)

The value of bitcoin is not so contingent on the failure of anything else.  It is just better money.

I'm not. There's no reason not to own both if you dislike / don't have faith in the current financial system.

As a gold investor it would be silly to disregard bitcoin. As a investor in bitcoin the same could be said. Once the petro-dollar system comes un-done a tsunami of value is going to shift..somewhere.

Because here he is speaking with an intelligent audience, on Twitter he is talking to anyone dumb enough to follow him.

Here is a gold strategy for you... to prove gata is/was always right in the first place btw.  Buy Gold on NY close, Sell Gold on NY Open. Go ahead and test it out long term.

Hey Jeff G. How about DPOS, you think its a better form of POS?

1st nothing can be 100% fair.  Thats idiotic.  
2nd check out the threads on here when price was well above $1000.  People buying castles and lamborghinis.  The stakes will divest themselves.  No wealthy person holds the majority of their wealth in cash.  
3rd and this is more of your expertise but are you saying that in pure PoS holding 40% somehow can prevent every single transaction those 40% don't want forever.  I could be wrong but that doesn't sound right.  Eventually even the smallest stake has odds to create a block so just a few % should be sufficient to eventually get transactions included in the chain.  May take a longer time but it's not 100% prevented from doing so.

What makes you think we'll see this again?

Yes.  Quite serious.

Proof-of-Stake has serious problems, that must be mitigated.  Stakeholders in PoS control consensus.  That means they control what transactions may, or may not, be permitted into the chain.  They are the 100% gatekeepers to the chain.

If you have a tiny initial distribution -- just 8 people holding 40% of a certain coin for example, just 64 people getting the rest -- then the central bankers are in place, for life.  It is screwed from the start (unless, against their economic interests, the major stakeholders divest their stakes "fairly").

Proof-Of-Stake is fundamentally not permissionless.  In contrast, building a mining ASIC might be expensive, but it is doable to anyone in the world with a computer engineering background, and some money.  You don't need permission from existing bitcoin holders, to make more bitcoin.

just briefly.  i remember sitting there watching Bitcoin ascend to meet gold.  what a thrill.  it was the culmination of 2.5 yrs of posting about it.  if there was one thing that i could point to that capped the rally @1200 back in Dec it was Satoshi daring to touch the face of gold.  traders immediately sold it off and took profits as the once considered impossible occurred.  we've had a wicked retrace since then but i'm convinced the story is not over and that we will go back up and touch it again.

I remember when 1 bitcoin was worth more then 1 ounce of gold crazy times.

i'll be darned.  is Apple making an effort?:

“Unlike our competitors, Apple cannot bypass your passcode and therefore cannot access this data,” Apple said on its Web site. “So it’s not technically feasible for us to respond to government warrants for the extraction of this data from devices in their possession running iOS 8.”

http://www.washingtonpost.com/business/technology/2014/09/17/2612af58-3ed2-11e4-b03f-de718edeb92f_story.html

hmmm.  are they really going to raise interest rates?:

Kyle Torpey fanning the flames:

http://www.cryptocoinsnews.com/bitcoin-core-developer-jeff-garzik-believes-nxt-is-a-scamcoin/

yeah, i noticed that after i posted.

it would be interesting to compare the 2 price levels.

It will also be at peak around 600.

It covers Chicago futures but I will venture Chicago is not the determiner but on the end of the bull-whip that is the world gold market.     We got China as the largest gold producer in the world, a communist nation also they are likely the worlds largest buyer of gold.   China exports no gold, they do import gold however they declared no increase in gold holdings in years.
How can they justify no gold purchases, I would guess they have citizens close to the government doing the buying of gold or are just lying of course    China holds 1% of its foreign reserves in gold, far less then Italy or many established nations so there is very good reason why they are the greatest determiner of the gold price yet none of this information is on that chart really.

Why would a nation that holds trillions in dollar debt, lacks gold reserves want to hide their gold buying.   These are again fundamental reasons behind the price, its less clear then technical charts unfortunately

if anybody here has a Pro version of the Tradingview.com chart function, i'd love to see the Volume Profile for Bitcoin at Bitstamp.

obviously, we'd see the peak of the histogram somewhere around here in the 440 range but it would be interesting to see the exact price and the relative heights around it.

i've been beating on this drum for well over 3 yrs now and i'd bet just about every serious gold investor has become sick hearing about Bitcoin. i know for sure many here are sick of me.  i really don't like the price action in gold as i've tried to demonstrate above and if it starts heading south to the degree i think it will, goldbugs will have to capitulate and run to something.  i think their distaste for the USD is such that a significant portion of the gold market can come to Bitcoin helping to fuel the next rally.  i realize it's wild to think that but its worked beautifully for me personally for all this time.  so far.

here's even worse news on the Gold 10 yr weekly chart with VP which covers most of the 11yr bull market that peaked in 2011.

this chart shows that the highest volume of tx's for the last 10 yr period occurred @1311.5.  that little red line is the line i've been drawing on the daily charts the last few weeks as to what once was support and is now resistance.  it appears gold has failed to penetrate to the upside via climbing the mountain and penetrating the red line.  this apparent failure indicates to me that gold has just started to make its definitive move to the downside and should break below the long sideways consolidation channel its been in for the last year and few months.  once it does that, there is little to no support left until about 926.

here's a fun one; the volume profile chart of gold for 5y weekly.

you can see that gold failed to ascend the mountain on the vertically oriented VP histogram and has fallen back and is sliding down.  it should slide all the way down w/o much resistance to 1175 before having to ascend a smaller mountain to approx 1130.

VolumeProfile

Description

The Volume Profile study represents trading activity over a time period at specified price levels. Considering the input-defined aggregation period, the Volume Profile plots a histogram showing price distribution, revealing the dominant price values in terms of volume. The width of histogram's row represents the number of actual transactions made within the price interval defined by the row's height.

I think taper is a reference to the current process.    So they call it reduction or taper to each month reduce the amount they add every month.   So if I start off after every meal by eating 10 donuts, I declare myself to be on a diet and I taper my calories intake.  Next month I eat 9 donuts after every meal, so on.    Its silly to say Im dieting, of course the word diet is misnomer also.   Its just another point about shaped perceptions in markets right now, every day more debt is added and that is the plan for a long time ahead so far as I know, all their speeches just frame that positively


This quote is the reason to buy gold even with its apparent weakness.   Gold will rise fastest when they are actually raising interest rates and the total failure to recognise that possibility is why the market prices wont give a clue right now.   There is no trend upwards for gold, unfortunately it will rely on people finding a purpose for gold fundamentally (not speculatively).   Thats not a definite because theres many alternatives such as bitcoin or just normal national currency, any country which exports is fine to hold longterm I guess.   The problem there might be who they export to and consistency of that, but anything is safer then dollars in that respect which held by exporters without an actual need to, so its strength is false as might gold weakness also be false.

If gov had to pay higher rates it would cause them great problems with their budget.   After not very long, the interest paid would exceed the defence budget and all other spending.    Also with QE it causes problems, debt worth relies on rates payable vs market rates.
The effect from debt worth less is selling in treasuries.   In effect less debt, more dollars would exist unless QE was increased again.   More dollars circulated is very likely more inflation meaning interest rates are exceeded by greater inflation.  

  TL;dr  Higher interest rates will occur alongside much higher inflation, gold will be worth most when rates are far higher then now.  BTC and gold were once equal in price, this is quite possible at $10,000 also