Fractional reserve banking is ok per se as it provided a way to use capital and production, as long as your allowed to do it as well, eg be a bank. Otherwise banks tend to abuse position, which has happened. Banks/Govs have abused their monopoly position. This is where BTC comes in.
Banks nor gov's can buy out BTC. All they can do is increase the price to. That is one of the issues they face its t he first thing they can't buy it out. This is a new concept for them.
Topic: Oh it's far from over... - page 3. (Read 3189 times)
despair thread +=1
Not despair... just open to realistic possibilities.
Which isn't necessarily a bad thing.
Strato
despair thread +=1
Today, those involved in the crypto-community have once again been met with a flurry of news and speculation over the current and future price potential of Bitcoin in 2015 and beyond. We've been here before, and more than once. Where is Bitcoin headed? Where is the floor? Has it bottomed?
Closing out 2014, we all found ourselves sitting by our Christmas trees, staring at the Bitcoin charts bouncing along from the 400s, to the mid 300s, to the low 300s - and all the while I can't but help remember how earlier in the year; so many of us here were still adjusting to the collapse of Bitcoin's highs near $1200 USD, the fallout of MtGox, the collapse of Silk Road and countless negative news stories surrounding Bitcoin and the people who used them.
Then we were all faced with the Alt Coin pump and dump season, where countless coins, pools, and exchanges all participated in a huge and unquestionably calculated plan of defrauding 1000s of cryptocurrency investors out of an uncountable amount of BTC/Fiat Currency. Coins we're created nearly every day; listed on "reputable" exchanges; and then it was proved the coins were pre-mined, a scam from the start, a giant setup - all to get your BTC.
Now, while many of us are even still adjusting and rebuilding from losses we incurred - I look at the price of Bitcoin and think to myself - it can very well, and most likely will, go much lower.
The truth is:
- There are people, companies, even governments out there, that hold and control large quantities of Bitcoin. Those large stakeholders could at any given moment; for reasons too numerous to count, decide it is now time to exit, and crash the price into the double digits.
- The big banks, credit card processors, American Express, Visa, MasterCard, hate- I'm sorry-- HATE- the concept of Bitcoin. They hate the idea of transparency. They are in no way fans of "low to no transaction fees". Big Banks work off the fractional reserve banking system. This is how they stay in business. They literally make money simply by typing numbers into a computer, and with Bitcoin- that will never be possible. These institutions control the money supply. And large companies MUST maintain strong and positive relationships with them, because without them they would cease to operate.
- Those large financial institutions could buy out Bitcoin in a heartbeat. A billion dollars is nothing to a company like Visa. And these companies, make no mistake, have teams in place dedicated to see that Bitcoin does not succeed. Lobbyists have been hired, think tanks assembled, and these guns for hire spin disinformation, dig for the worst news stories, and preach that Bitcoin is nothing more than a method for criminals to buy drugs, launder money, or hire hitmen; which 99.99% of the population find simply frightening.
- The huge drop off today was caused by a rather small drop in the bucket "total coin supply" wise. It doesn't take much big picture wise to drive the price of the entire BTC market down 20% - and for this reason, even big merchants who have been pioneers - companies like Dell, Overstock and Gyft, will never "hold" on to their bitcoin revenue. These companies work in industries where profit margins are razor thin. Amazon - which may very well at some point begin to accept Bitcoin, operates on a profit margin not more than 1-2%. They will never "hold" their coins. They can't. Their margins, nor will their bankers, allow it. This means spending bitcoin at a retailer really means selling to the exchange. And selling to the exchange means driving the price down.
While $293 may seem like a great price to pick up some Bitcoin - and it may turn out to very well be; the truth I think is that it should be viewed as nothing more than a short play. Will Bitcoin head north above $300 again? I think it's likely. But I think the long term outlook, 6 months, 1 year, 2 years, and so forth is going to see major price swings and likely much lower price points.
In April of 2014 everyone was saying the next big run up would be the end of 2014- leading up to the holiday season. How wrong were we. Bitcoin has in very many ways acted like nothing more than a vacuum for fiat money where people who wan't to chase gains, get in on the action, and get rich quick become the dirt it sucks up and spits right out.
My opinion; and call me crazy - is that Bitcoin will at some point or another see $100. A bitcoin is divisible into 100,000,000 units - and $100.00 USD just seems to fit nicely.
Perhaps one day we can add a zero to that number and $1000.00 bitcoin prices will become a reality. I am still to this day a believer in cryptos. I truly believe that the future will see see wide adoption of crypto and virtual currency technologies. But I've learned quite a bit in this last 15 months of being involved in this world.
If Bitcoin can go from $1200 to $293... there is no reason to think that it can't also go from $293 to $75.
2015 will be quite a year either way.
Strato
Post Script: For those that would like the truth about the floor, the bottom, the actual real honest to God number to which a bitcoin might fall too, that number is zero. We'd all like to say impossible. But I'd hope we all agree that we'll never really know what's around the corner. Technology... here today- gone the next.
Closing out 2014, we all found ourselves sitting by our Christmas trees, staring at the Bitcoin charts bouncing along from the 400s, to the mid 300s, to the low 300s - and all the while I can't but help remember how earlier in the year; so many of us here were still adjusting to the collapse of Bitcoin's highs near $1200 USD, the fallout of MtGox, the collapse of Silk Road and countless negative news stories surrounding Bitcoin and the people who used them.
Then we were all faced with the Alt Coin pump and dump season, where countless coins, pools, and exchanges all participated in a huge and unquestionably calculated plan of defrauding 1000s of cryptocurrency investors out of an uncountable amount of BTC/Fiat Currency. Coins we're created nearly every day; listed on "reputable" exchanges; and then it was proved the coins were pre-mined, a scam from the start, a giant setup - all to get your BTC.
Now, while many of us are even still adjusting and rebuilding from losses we incurred - I look at the price of Bitcoin and think to myself - it can very well, and most likely will, go much lower.
The truth is:
- There are people, companies, even governments out there, that hold and control large quantities of Bitcoin. Those large stakeholders could at any given moment; for reasons too numerous to count, decide it is now time to exit, and crash the price into the double digits.
- The big banks, credit card processors, American Express, Visa, MasterCard, hate- I'm sorry-- HATE- the concept of Bitcoin. They hate the idea of transparency. They are in no way fans of "low to no transaction fees". Big Banks work off the fractional reserve banking system. This is how they stay in business. They literally make money simply by typing numbers into a computer, and with Bitcoin- that will never be possible. These institutions control the money supply. And large companies MUST maintain strong and positive relationships with them, because without them they would cease to operate.
- Those large financial institutions could buy out Bitcoin in a heartbeat. A billion dollars is nothing to a company like Visa. And these companies, make no mistake, have teams in place dedicated to see that Bitcoin does not succeed. Lobbyists have been hired, think tanks assembled, and these guns for hire spin disinformation, dig for the worst news stories, and preach that Bitcoin is nothing more than a method for criminals to buy drugs, launder money, or hire hitmen; which 99.99% of the population find simply frightening.
- The huge drop off today was caused by a rather small drop in the bucket "total coin supply" wise. It doesn't take much big picture wise to drive the price of the entire BTC market down 20% - and for this reason, even big merchants who have been pioneers - companies like Dell, Overstock and Gyft, will never "hold" on to their bitcoin revenue. These companies work in industries where profit margins are razor thin. Amazon - which may very well at some point begin to accept Bitcoin, operates on a profit margin not more than 1-2%. They will never "hold" their coins. They can't. Their margins, nor will their bankers, allow it. This means spending bitcoin at a retailer really means selling to the exchange. And selling to the exchange means driving the price down.
While $293 may seem like a great price to pick up some Bitcoin - and it may turn out to very well be; the truth I think is that it should be viewed as nothing more than a short play. Will Bitcoin head north above $300 again? I think it's likely. But I think the long term outlook, 6 months, 1 year, 2 years, and so forth is going to see major price swings and likely much lower price points.
In April of 2014 everyone was saying the next big run up would be the end of 2014- leading up to the holiday season. How wrong were we. Bitcoin has in very many ways acted like nothing more than a vacuum for fiat money where people who wan't to chase gains, get in on the action, and get rich quick become the dirt it sucks up and spits right out.
My opinion; and call me crazy - is that Bitcoin will at some point or another see $100. A bitcoin is divisible into 100,000,000 units - and $100.00 USD just seems to fit nicely.
Perhaps one day we can add a zero to that number and $1000.00 bitcoin prices will become a reality. I am still to this day a believer in cryptos. I truly believe that the future will see see wide adoption of crypto and virtual currency technologies. But I've learned quite a bit in this last 15 months of being involved in this world.
If Bitcoin can go from $1200 to $293... there is no reason to think that it can't also go from $293 to $75.
2015 will be quite a year either way.
Strato
Post Script: For those that would like the truth about the floor, the bottom, the actual real honest to God number to which a bitcoin might fall too, that number is zero. We'd all like to say impossible. But I'd hope we all agree that we'll never really know what's around the corner. Technology... here today- gone the next.
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