Topic: The financial markets are starting to crash, abandon the fiat titanic (Read 7763 times)

Look, I'm only trying to help.  Wouldn't you be more comfortable posting in your native tongue?
Or playing some vidya?

Thats it hey? Knew you couldnt keep up.. truck along

^wut?  Do you even English, bro?

i dont think you have very many coins.. just like china banning cowboy?

With the gold repricing russia doesnt want anything to reflect the plan back on them thus they wanna make sure they get all they can for their gold.. makes sense for them kniwing us has tons of coins from dpr already

Lol, such butthurt.  You know that Russia is planning to criminalize Bitcoin, right?  You could be on the wrong bus



In the mean time, keep on buying, intrepid investor!  If it wasn't for finance enthusiasts like yourself, who would be left to buy my coin?

Nvm him just a troll going around fudding to bring price down so he could buy. He must have sold or missed the bus and wants to go cheap as possible by capturing the short term thinking audience and instilling fear by showing that in reality bitcoin is not usable mainstream.

However he does not understand technology and its ability to evolve and adapt unlike his fud attempts so just ignore him her. Smart ppl see thru these mosquitos they are a dime a dozen.

Haithere little boy, does your mom know you're on the internet?



*Yes, yes I do know exactly who I'm talking to.

Cyprus is the go-to offshore banking jurisdiction for Russian dirty money. Cypriots are not behind all of the money that was deposited in Cyprus.  Evidence is circumstantial but I'd say fear made some people invest in bitcoin after capital controls and confiscation were enforced in Cyprus. Just recently we've seen Russia ban bitcoin, and we know the chinese have been using it to get money out of the country.
http://www.businessweek.com/articles/2013-03-18/behind-the-cyprus-tax-russian-deposits-and-a-suspicious-eu
http://money.cnn.com/2013/03/28/investing/bitcoin-cyprus/
http://blogs.wsj.com/eurocrisis/2013/03/21/how-much-russian-money-is-in-cyprus/

While he isn't going to build any massively successful business making this kind of statements -not that he intends to-, Amir Taaki got it right when he said what Bitcoin is:
http://cointelegraph.com/news/112183/bitcoins-political-neutrality-is-a-myth-amir-taaki-interview
http://bitcoinmagazine.com/17005/bitcoin-technology-worth-nothing-interview-dark-wallet-front-man-amir-taaki/

Bitcoin's utility is in its potential for preserving privacy, anonymity and independence from states or other third parties. Bitcoin (the currency) thrives in a risk-on environment because it is a risky asset fueled by speculation. But, it also thrives in an environment of authoritarianism or during times of extreme fear because it is immune to confiscation by states.

You have stupid issues.

You're looking for the action before the cause and perhaps expect a hug?

Hey, clueless - you have no idea who you are talking to.

To call it a 'correction' is putting it mildly.  Market's getting unstable and those in power are just trying to prop it back up, but for how long.  Observe the rich, they are already pulling money out of fiat and putting into assets. Either a major hyperinflationary depression, or a total collapse of the system, is looming.  It's just a matter of time when main street start to realize it's just as practical and more convenient to put money into bitcoin that can hold its value just as good if not better than other assets.

This is what I think I'm seeing right now (happy to see evidence to the contrary) although I'd disagree that there was a lot of capital flowing into Bitcoin from Cypriots. Is there a source for this?

I think you're only reading what you want to see... and perhaps you have anger issues?

I would think a week of market falls would cause some kind of rise (even if minimal) in Bitcoin but it seems that this isn't the case. It looks as if Bitcoin follows the market - maybe it's all going to the gold market?

belgium already takes taxes in btc soooo....youre dumb.

=D

Looks to be a full scale correction, how deep is anyone guess.. just need a catalyst for a crash... but looks like the 5 yr cycle is up and we head down to test support... I think before the final big crash a few years later.. and then we stick around without growth for a bout a decade.

Agreed. Now that I read this.. we've seen this coming for a long time so it doesn't sound so scary anymore, but it should. We should be scared of what's coming.

Btw EU treasuries are also a complete charade, only the ECB is buying with its (lesser) firehoses. Italian and Spanish yields are a complete joke that don't reflect the real risk. And just recently French politicians have been resisting cutting back its lavish spending (do they think there's no limit to what they can take? do they think they won't get crushed when they hit the brick wall?). Greece is done anyway, has been for years, keeping it in the EU is part of the charade. Unfortunately the charade is quite costly and we're all going to pay for it.

Just one thing about treasury bonds.

People buy treasury bonds because they're **perceived** to be safe. But that perception can be extremely volatile and is basically the whole reason we're in this position. All the over leverage and monetisation that's gone on in the last 5 years has been ALL about preventing treasuries from defaulting.

Treasuries WERE the safest asset until the bailouts - starting with the famous Bush $700 Billion shot in the arm. But AFTER the bailouts they were no longer the safest asset - they were risky as hell because all that over levered debt that grew up in the private sector suddenly got lifted and pinned onto the coat hangers of sovereign balance sheets.

Since then, governments in collusion with central banks have managed to maintain the ILLUSION of treasuries being safe havens because they've kept a $3.2 TRILLION dollar firehose pointed at the treasury markets to keep the yields down. Without that firehose they would have defaulted years ago.

The problem is that this game is coming to an end. The canary in the coalmine is Greece, who's yields took off the minute there was the slightest hint of global instability and prospect of euro deflation. What many US observers maybe aren't aware of is that Mario Draghi held a press conference a couple of weeks ago where he stepped back from declaring a policy of full Euro QE. That was one of the triggers for the start of the sell off in Euro stocks - the other being the ongoing deflationary signals coming out of the woodwork from here, there and everywhere.

So the idea that treasury bonds will be seen as a "safe haven" is not so solid in the absence of QE. Everything is starting to be up for grabs.

With the world facing a deflationary trap, mass defaults might be exactly what's on the cards. The liquidity that's needed to cover the expansion of balance sheets simply from debt servicing alone is shrinking.

To me, it's not about risk on / risk off theory, it's more about the inherent stability characteristics of the financial system and, in particular, Debt/GDP ratios. At manageable Debt/GDP ratios, recessions are survivable and do not threaten stability because there is liquidity available to service all debt - even if the recessions last years.

On the other hand, once debt levels pass 100% GDP and even 200% in some cases, growth becomes an essential prerequisite for the system to remain stable. You can get growth in 3 ways:

[1] - "real" growth through increased economic activity (usually manifests as an increase in the velocity of money because the money base gets "spent" more often

[2] - increasing prices (The UK's doing that one by creating a housing boom and have managed to scrape themselves 0.7% of their 1% annual GDP growth from that)

[3] - monetisation. i.e. just print the fuckers to make the numbers work = Japan & US

The problem with 2 and 3 is that you kill the patient in the process so you have to stop it at some point in which case - if you haven't got [1] going by then - the only way out is mass defaults or debt mark downs. That will then spark some major banking issues by way of all kinds of carry trades unwinding etc

So all in all, anything can happen. The main reason I see cryptos as "safe haven" is:

[1] - they are unlevered
[2] - they are uncapitalised

Remember - "safe haven" and "risk assets" are relative terms. Cryptos will not be seen as risk assets if the financial system itself is perceived to be at risk and with imminent worldwide deflation on the cards, that might not be far away.

Look at the growth figures for Europe - they are piddling. And I'm sure even those are massaged to death just to squeeze a meagre 1% out of the books. None of these things in their own right would be a problem - low growth, high debt, 400% over-inflated money supplies, interest rates on the floor. It's WHEN THEY ALL HAPPEN TOGETHER that alarm bells start ringing.