Topic: How to Explode the Price of Bitcoin OVERNIGHT! - page 3. (Read 6556 times)

Think some people with a lot of BTC sell regularly for a little bit of spending money, same thing with those earning in BTC.

TL;DR

I'm here to make money, not change the world.

     If the total value of the United States as a country with all the social and cultural capital and assets is X, then the value of the dollar is a representation of this, or X=Y. If X is changing at a rate of A, then the money supply can increase or decrease at a rate of A too and the value of the dollar will stay steady. If the X is changing at a rate of A and Y is changing a rate of B, then, if A>B the purchasing power of the dollar will go up. If A
       Right now, Y is increasing at an absolutely unprecedented rate and this is diluting the value of the dollar in favor of the recipients of the newly issued dollars. In this case, those recipients are banks, particularly those holding mortgages.

http://www.washingtonsblog.com/2013/06/81-5-of-money-created-through-quantitative-easing-is-sitting-there-gathering-dust-instead-of-helping-the-economy.html  (EDIT: wow, vokain posted a link to the same article while I was writing this)

    This makes the balance sheets of banks look a lot better and allows them to continue lending (at a profit, with interest) which spurs growth in construction, small businesses, consumer goods purchases (credit cards). A lot of people, myself included, have wondered how the fed can create so much new money without inflation skyrocketing- and the answer is that most of the money is being hoarded. The Chinese have about 3 trillion dollars in dollar denominated bonds and foreign currency reserves, and US banks have about 1.8 trillion sitting around. If either start to dump their dollars, the market will follow suit and the dollar will crash.

    This is basically a financial cold war- if the Chinese start to dump dollars US banks can immediately respond by unleashing a huge pile of dollars too, devaluing the dollar so China gets stuck with a big pile of paper. Notice that the US banks reserves are less than China's- that means that if China tries to dump that the US stands to lose much less- not to mention that in the case of hyperinflation the 17 trillion in US debt will suddenly become much less valuable in real terms, although since hyperinflation will hit the poor hard it would require martial law and a rationing system to allocate basic consumer goods.  

     The piles of dollars sitting around are basically potential inflation that has not been unleashed. Check it out- if US banks have 10% of the dollars in the world, and the fed increases the money supply by 20% and gives all of the dollars to the banks, the banks went from having 10% of all the dollars to having 25% of all dollars. Or concretely- if there are 100 trillion dollars on paper worldwide, and banks have 10 trillion of them, and then the fed prints 20 trillion new dollars and gives them all to the banks, the banks now have 30 trillion dollars of a total of 120 trillion dollars "existing." 30 is 25% of 120. If 100 trillion dollars are worth 1 trillion bushels of soya(or insert non-fiat commodity here), or the combined buying power of all dollars in existence is 1 trillion bushels of soya, assume that the number 20 in this example represents the amount by which the growth in the money supply EXCEEDS the growth in underlying value.
     Banks in the US just went from having the power to buy 100 billion bushels of soya to having the power to buy 250 billion bushels of soya- and all they did was make a ton of non-performing loans!

       These numbers are just meant to simplify what I'm trying to say, which is that China has a huge pile of dollars they have made exporting to the US, and the US is using inflation and the threat of inflation to steal that money back. How long do you think China is going to put up with this? They can't do much about it, but they have officially sanctioned bitcoin use in China- and it's crazy that they would promote such an unregulated technology when they are known for being the arch-financial regulators- they are doing so because they know that the more bitcoin is used the more it will erode the dollar. They are also deregulating the yuan so that yuan will start to migrate overseas and they can sell exports directly for yuan rather than having to continue to accept dollars that are having their value quietly robbed by US private banks. They are also buying Iranian crude oil and paying with subway cars since sanctions hinder dollar denominated transactions.

      If China gets too uppity, the US has been eyeballing Iran for a while, and Syrian escalation with Iran providing supplies to the side that the US is increasing pressure against means possible pretext for involvement. For example, if the US instates a no-fly zone in Syria a la Libya, Iranian anti-aircraft weapons in the hands of Syrian forces could end up hitting US fighters. This would necessitate bombing supply convoys coming from Iran towards Syria, and eventually provide an excuse for the US to finally try to take over Iran or send piles of those freshly minted dollars to factions inside Iran that will do what the CIA tells them too as long as dollars keep flowing, and force China to keep paying for the oil they need to keep their economy running in dollars, thereby maintaining demand for the dollar and allowing the US to continue robbing the value of China's hard earned piles of dollars.

      So really holding dollars is basically akin to hot potato or musical chairs, except that there's a war when the music stops. If you are speculating by buying high and selling low, you are basically trying to beat the market which means take the money from less adept traders. This is not a win-win. There are plenty of ways to make money in win-win circumstances. You are feeding off of other people's losses, and guess what? What goes around comes around. Quantitative easing is basically the biggest rip off the world has ever seen, and everyone holding dollars stands to lose from it- except the people receiving the newly minted dollars.

        That happens to include me, since I am a home owner in the US and QE is what enables banks to renegotiate loans without collapsing. That means the possibility to renegotiate mortgage payments to lower rent and increase profits of property owners, which translates to more cash in circulation and increased consumer spending, which leads (partly) to the gains we are seeing in Wall Street right now. (EDIT: Oh yeah, and I think it also has something to do with the good employment numbers in the US, whereas ECB QE is dwarfed by US QE and the Eurozone has major unemployment problems) Money represents work, and the US is getting more money without really doing any more work- and who is paying for this increased value? Where do people work 16 hours a day, 6 days a week? I smell a slave rebellion in the works.

          Basically a total overhaul of society is necessary and it means absolute political death for whoever is in power when it happens. This will mean that !surprise! Western liberal democracy will meet the same fate that every democracy in history has met- a slide to totalitarianism. So yeah... if you want to support this scenario, go ahead and keep using dollars. You know that scene in Braveheart where William Wallace is giving the speech the Scottish army- well you could substitute the words "lives" for dollars and "freedom" for bitcoin.

   "They can take our dollars, but they cannot take our BITCOOOIIINNNN!!!"
    

"Officer, it's just gold gilded, i promise"

I'll just sail my boat which happens to be made of solid gold over to the Bahamas. Probably give it a lick of paint first.

Worldwide power outage = problem for worldwide economy.
Bitcoin transactions can continue after power is back on. Existing coins are safe.

Dollar collapse -> capital fleeing into non-governmental assets -> Bitcoin.


ya.ya.yo!

wait so what does QE do, inject money into banks? Does it have to be paid back? I was under the impression that banks refused to lend out their QE money because of the lack of credit-worthy debtors. Apparently the problem has been a ton of deflation of bad debt, ie why PMs like gold and silver have gone down as assets get eaten up by the debt blackhole. So have we been trying to counter that with money supply inflation?

http://www.washingtonsblog.com/2013/06/81-5-of-money-created-through-quantitative-easing-is-sitting-there-gathering-dust-instead-of-helping-the-economy.html

Good luck withdrawing your dollars from the ATM with no power

Those bitcoins are going to be worth so much when the power goes out 

Ill never understand why people think a dollar collapse -> bitcoins more valuable.

I think I'll stick with Ripple as far as a payment network goes.  As for my go to currency, I'll stick with USD.  Accepted everywhere...no questions asked.   That said, as long as I can make USD, buying and selling BTC, I'm cool with it. 

   I paid for web design services from very well qualified web designers in Pakistan, and it was the easiest international payment I have ever made and took 20 minutes rather than 3 days, and I didn't have to go to a bank, present gov. ID, and sign a bunch of papers.
    I bought clothes online with bitcoin. I bought homebaked bread in my city that was of quality absolutely unavailable in any bakery. I have considered buying real estate in Spain with bitcoin, but I didn't have enough coin at the time or time to go to Spain, so somebody else snapped it up before me.
 
    I have several solicitations from graphic designers offering to work on a project for me for bitcoin. I have bought tools with bitcoin. I have bought medicine with bitcoin. I have used bitcoin to transfer large quantities of money internationally and thereby avoided wire transfer fees. I have made people happy by gifting bitcoin. I have bought fine Argan oil, a delicious superfood that comes from a tree endemic to Morocco. Great with bread or in salad dressings, absolute one of a kind flavor and packed with omega fatty acids. I am looking into buying high quality tea from China and high quality Saffron from Iran with bitcoin- both very healthful products.

   If you can't figure out how to spend bitcoin, I would be happy to help show you how, just PM me. Bitcoin not only offers major breakthroughs as a payment system in terms of increased security, eliminating need for centralized institutions, it offers major political and economic gains by hybridizing the liquidity of fiat with the limited supply and safety from political tampering of gold. And it is backed by a community of brilliant and dedicated people who can defy all market dynamics because of their belief in the possibility of bitcoin to make the world a better place. Bitcoin is quite simply undervalued- there are hundreds of thousands of entrepreneurs out there who could realize efficiency gains of over 1% by using bitcoin. That is a value in the hundreds of millions if not billions of dollars. The only thing hindering that is knowledge- most people are not technically informed enough to learn about bitcoin, and the infrastructure is still catching up to make it accessible to them.

        OP is right- it makes much more sense in the long run to hold and support bitcoin as a movement. I would welcome capitulation too, but I think we have too many strong hands in the market now. Increased SR volume, Argentina, and China- a market like this has never existed before, so none of the standard TA will work here.

What if I told you: All banks are printing money (= QE) so bitcoin will go up but all the other currencies will do so?

Made 10% on a day!! 100% soon

Exactly.

I must have imagined all those other things I have had sent to my house in exchange for my btc.

Bitcoin is only as good as the fiat it can be converted into.  Remember that. 

Seems like the explosion has started already...


ya.ya.yo!

haha your doing it wrong then if you cant spend them.

cant "spend" apple stock, cant spend stocks in general and there are thousands that are worth more than 100. also thats weird you cant spend btc cuz i keep buying shit with them, so huh...... go figure that one out. infact i keep buying things that are worth hundreds of dollars. maybe your doing it wrong bud

YOU ARE DOING IT WRONG. If you go back to the newby section there are tutorials on bitcoins and how they work and how to buy and spend them. I really feel like you would benefit from them. oh gotta go bitcoin just made me a bunch  of money 

Good thing Bitcoin is more than just money.

I would hold my bitcoins (I do hold onto most of them), but I have to pay for things with USD, so for them to be useful I have to sell some of them. I could buy stuff with them, but even then the person selling the stuff prices it based on the current exchange rate, so it works out to be the same to me if I buy stuff or buy dollars and then use that to buy stuff.

It is like the old saying goes "Money is worthless if you are not spending it"