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Topic: Supply & Demand Price Contradictions: Bitcoin / Gold / Silver - page 2. (Read 985 times)

legendary
Activity: 1218
Merit: 1007
Honestly I think in the future when/if the fiat system in every nation starts totally collapsing, there will be a need for a new currency that is digitalized, which of course Bitcoin will step in. But then you have to think, we'll wait, what will Bitcoin be priced in and what will each Bitcoin represent monetary wise? And I think it will go back to how it should be in the fiat system in the first place, be back totally by gold and silver.

So I think both will go up in the future accordingly with each other, because they are the easiest ways to transact/exchange goods and services without the need for a central banks printing scheme.
Anything with a definitive, finite supply will have to be the replacement currency. If we see the collapse of fiat currencies it will mean that it will be difficult for any government to reinstate it, especially if it is a global collapse and not just one or two countries having worthless currencies.

The only issue I see is that with the finite supply, you can only divide it so far, and so we have no real idea what will happen once we have to divide a finite supply beyond what it was originally intended for, in order to supply the needs of the populace.
legendary
Activity: 1316
Merit: 1004
Honestly I think in the future when/if the fiat system in every nation starts totally collapsing, there will be a need for a new currency that is digitalized, which of course Bitcoin will step in. But then you have to think, we'll wait, what will Bitcoin be priced in and what will each Bitcoin represent monetary wise? And I think it will go back to how it should be in the fiat system in the first place, be back totally by gold and silver.

So I think both will go up in the future accordingly with each other, because they are the easiest ways to transact/exchange goods and services without the need for a central banks printing scheme.
hero member
Activity: 854
Merit: 1009
JAYCE DESIGNS - http://bit.ly/1tmgIwK
Physical Gold & Silver are flying off the shelves as fast as they get coined.  "Supply" is getting very tight.  And yet price is dropping like a rock and mainstream media predicts it to fall off the cliff.  This price action goes totally against traditional economic laws of Supply / Demand.

Precious metals markets are manipulated with certificate ponzi schemes and unfunded paper claim scams. Otherwise they would go up massively since the supply is in shortage and demand is rising.


Bitcoin is in a way the opposite..... new Bitcoins being mined every day.  Mainstream media says nobody wants bitcoin.  Big Financials & Banks say it is dead.  Nobody wants Bitcoin it seems.  So the Supply should be huge.  And yet the price is steadily climbing.

Bitcoin is inflating, but the market is more concerned about the scaling FUD, and the uncertainties of the network. Not to mention governments reaction to bitcoin.  Also we will have next summer halving.

So yes IMO both precious markets and bitcoin can go up eventually!
full member
Activity: 140
Merit: 101
Physical Gold & Silver are flying off the shelves as fast as they get coined.  "Supply" is getting very tight.  And yet price is dropping like a rock and mainstream media predicts it to fall off the cliff.  This price action goes totally against traditional economic laws of Supply / Demand.

Bitcoin is in a way the opposite..... new Bitcoins being mined every day.  Mainstream media says nobody wants bitcoin.  Big Financials & Banks say it is dead.  Nobody wants Bitcoin it seems.  So the Supply should be huge.  And yet the price is steadily climbing.

One scenario that makes sense of these two seemingly opposite contradictions is that a global crash is coming and people in the know / insiders are speeding up their positioning. 

Big Money is buying Gold/Silver hand over fist all while telling the masses of sheep it is going down - creating sellers for their buy.  Oldest Wall Street trick in the book. 

With bitcoin, they are basically just manipulatively shrinking the demand in advance of what they know will be a huge spike in demand..... no one still really knows about bitcoin, and the media is either not talking about it, or when they do they tie it to crime etc.  But it seems that the big money is buying.  These increases aren't because a few more forum members bought a few more bitcoin.  A small part of it is the slow but steady ongoing buildout towards mass adoption, but much is big money hedging their bets.

And it seems to be speeding up..... Gold and Silver is getting bought up fast.  Now, its happening to bitcoin too.  It's quickening.

Any thoughts on scenarios about the interaction of gold/silver with bitcoin if global economic meltdown of the current system were to hit.  Gold/Silver will go up because everyone KNOWS about them being safehavens in a crisis.  I wonder at what point that will translate from Gold/Silver to Bitcoin.  I think it will be a 2-step transition in the aftermath of a global financial crisis..... Fiat Money >>>> Gold/Silver >>>> Bitcoin.

My thinking is that the price/demand explosion that will come in Gold/Silver will be huge and fast like a rocketship.... UNTIL people realize it is going to be Bitcoin that is actually the next monetary evolution, and Soooo Much easier to get/transfer into etc..... and that this realization could happen quickly, in which case Gold/Silver could go back down as fast as it goes up.

OR.... will something happen that causes Bitcoin to become well known overnite, and totally steal the thunder from gold/silver in the event of a financial crisis?

Thoughts?
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