Interesting article on Forbes about Gold, Swiss franc and fiat money

bitplane

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Firstbits: 1gyzhw

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The Chinese buy our debt because U.S. Treasuries have a deep liquidity pool unequaled by other places the Chinese can invest there excess cash

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Treasuries have a deep liquidity pool unequaled by other places the Chinese can invest there excess cash

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the Chinese can invest there excess cash

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there excess cash

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there

Lern 2 English, Forbes.

Astrohacker

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Quote from: JackH on August 09, 2011, 07:25:42 AM

http://blogs.forbes.com/jonathansherman/2011/08/08/u-s-dollar-is-the-next-financial-shoe-to-drop/

Funny thing is that they start hammering the fact that the fiat currency is a flawed system and that is has problems.

Even more funny is that they are still thinking inside the box and mentioning gold and the Swiss franc as safe haven.

Why on earth are they not considering Bitcoin? If the adoption of Bitcoin was to grow so that a world wide audience would start accepting it as backup currency we would never face the problems in price fluctuations as we do now. Inject a trillion into Bitcoin and all these huge % swings we have would be non existent.

The only reason to why we have these swings is because there is not enough money into the system and any jerk with 100.000$ can move the marked as he sees fit. Put a trillion in there and swings would be sideways as with any other stable currency.

One can only hope all this chaos and financial mess would get someone in charge to start considering Bitcoin and actually take the system itself a bit more serious. We dont need MtGox or Tradehill or a few hackers to dictate the Bitcoin community. Put the big five banks into the game, put Bitcoin as backup currency and we are stable as heck.

Time will tell.....

Many people accept that the fiat currency system is broken and needs to be replaced with something else. I made a comment on Hacker News recently that bitcoin is the only reasonable replacement for fiat currencies. Gold doesn't work because you can't send it over the internet. But bitcoin, the gold of the internet, can be. I was called a "troll" for making this comment.

Many people see bitcoin for what the bitcoin economy is right now, which is a small baby economy. They think the next big thing must be a mature adult economy. Of course it will be. They don't realize that 1) any mature economy must go through a baby stage, 2) bitcoin is the only thing that exists right now with the potential to be that future adult economy.

There was a nice article by Chris Dixon on how the next big thing will start out being seen as a toy. Bitcoin is seen as a toy right now by many people. But in the future it will be far more than a toy. It is the next big thing. http://cdixon.org/2010/01/03/the-next-big-thing-will-start-out-looking-like-a-toy/

Jack of Diamonds

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Quote from: BitcoinPorn on August 09, 2011, 07:30:53 AM

Also, your way to stop the swings by injecting money into Bitcoin is unrealistic, but I think you knew that 'solution' is not going to happen.

Yes it's unrealistic, but it works.
How do you "play" USD or Euros? You don't. Due to the gigantic market volume it's impossible.

The only profits to be had are either high frequency trading forex bots, or long term holding.
On Mt. Gox, BTC can fluctuate anywhere between 5 to 500% in 1 day just because someone with $200k dollars is placing buy and sell orders.
That's not a stable market.

What would stabilize the market is billions of $ of daily volume.
No single person could fill 50% of all buy/sell orders in the orderbook in a few seconds & crash the price to 0.01 as happened a month ago.

ptshamrock

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Quote from: JackH on August 09, 2011, 07:25:42 AM

http://blogs.forbes.com/jonathansherman/2011/08/08/u-s-dollar-is-the-next-financial-shoe-to-drop/

Funny thing is that they start hammering the fact that the fiat currency is a flawed system and that is has problems.

Even more funny is that they are still thinking inside the box and mentioning gold and the Swiss franc as safe haven.

Why on earth are they not considering Bitcoin? If the adoption of Bitcoin was to grow so that a world wide audience would start accepting it as backup currency we would never face the problems in price fluctuations as we do now. Inject a trillion into Bitcoin and all these huge % swings we have would be non existent.

The only reason to why we have these swings is because there is not enough money into the system and any jerk with 100.000$ can move the marked as he sees fit. Put a trillion in there and swings would be sideways as with any other stable currency.

One can only hope all this chaos and financial mess would get someone in charge to start considering Bitcoin and actually take the system itself a bit more serious. We dont need MtGox or Tradehill or a few hackers to dictate the Bitcoin community. Put the big five banks into the game, put Bitcoin as backup currency and we are stable as heck.

Time will tell.....

+1 +1 +1 and a kiss Cheesy

BitcoinPorn

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Quote from: JackH on August 09, 2011, 07:25:42 AM

Why on earth are they not considering Bitcoin?

Forbes is anti Bitcoin at the moment https://bitcointalksearch.org/topic/forbes-the-bitcoin-crash-new-article-forbes-claim-is-doom-35613

Also, your way to stop the swings by injecting money into Bitcoin is unrealistic, but I think you knew that 'solution' is not going to happen.

JackH

sr. member

Activity: 381

Merit: 255

http://blogs.forbes.com/jonathansherman/2011/08/08/u-s-dollar-is-the-next-financial-shoe-to-drop/

Funny thing is that they start hammering the fact that the fiat currency is a flawed system and that is has problems.

Even more funny is that they are still thinking inside the box and mentioning gold and the Swiss franc as safe haven.

Why on earth are they not considering Bitcoin? If the adoption of Bitcoin was to grow so that a world wide audience would start accepting it as backup currency we would never face the problems in price fluctuations as we do now. Inject a trillion into Bitcoin and all these huge % swings we have would be non existent.

The only reason to why we have these swings is because there is not enough money into the system and any jerk with 100.000$ can move the marked as he sees fit. Put a trillion in there and swings would be sideways as with any other stable currency.

One can only hope all this chaos and financial mess would get someone in charge to start considering Bitcoin and actually take the system itself a bit more serious. We dont need MtGox or Tradehill or a few hackers to dictate the Bitcoin community. Put the big five banks into the game, put Bitcoin as backup currency and we are stable as heck.

Time will tell.....

Topic: Interesting article on Forbes about Gold, Swiss franc and fiat money (Read 1943 times)