Uncertainty, Political Chaos = More Bitcoin Buying

BitHodler

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Quote from: Schirer on June 25, 2019, 09:37:58 AM

I dont think you are aware of what Bitcoin is, you cant build decentralized things on Bitcoin.

It's possible, but there is only so much that you can use the limited block space for. I think there is even a shortage of capacity in other decentralized platforms and therefore the most convenient option is a private network.

People praise decentralization as if it will solve every problem, but the person you quoted listed a few industries that don't require decentralization. In fact, an immutable ledger will do more harm than good.

I prefer to see Bitcoin be used solely as a medium of exchange, store of value and potentially a unit of account. These properties attract the most value than offering a decentralized ledger to industries that don't need decentralization

Naida_BR

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Quote from: CryptoBry on June 19, 2019, 09:37:50 PM

Now, I think it is certain that whenever there can be some chaos or political restlessness, we can expect a corresponding jump in people who are buying more bitcoin. And lately, this was proven in Hong Kong which in the past many days erupted into huge protests against a controversial extradition law. The whole thing resulted into Bitcoin trading at a premium in Hong Kong. BTC has been trading between $75 and $160 over the global average on local exchange Tidebit, with many experts believing an even bigger premium will follow.

In our world experiencing many problems and challenges both natural and man-made, we can say definitely that bitcoin is providing the safe haven for value and wealth? Just like the traditional gold, bitcoin is playing the role to the T but unlike gold we know that bitcoin is much more accessible, easier to manage and has more potential for growth and return-on-investment.

Indeed, political uncertainty makes people try to find other ways of storing the value of their money.
Although I am in favor of this opinion, I don't think that we need uncertainty to promote the benefits of bitcoin. We have to try and find other positive ways in order to show to the world that Bitcoin has come to bring only growth.

Schirer

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Quote from: Ucy on June 20, 2019, 04:28:23 PM

Hong Kong protest and the bitcoin buying were probably due to people trying to fund the protest with bitcoin? Or it could be both reasons.

what? Are you implying that ~2 million people were paid to go in to the streets to protest?

Quote from: Ucy on June 20, 2019, 04:28:23 PM

Safe haven with Bitcoin will happen when it becomes possible to use bitcoin for most things, like currency on decentralized Healthcare system, decentralized insurances, decentralized schools, decentralized marketplaces, etc

I dont think you are aware of what Bitcoin is, you cant build decentralized things on Bitcoin.

1Referee

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Quote from: maldini on June 20, 2019, 10:56:59 AM

I don't think that political turmoil can increase the purchase of bitcoin.

It might not be the sole reason for a price surge, but when the price is already going up due to an increase in demand, the extra demand from investors looking for a safe haven asset such as Bitcoin will help take even more coins off the market. Political chaos isn't something that fades away quickly, so we're basically dealing with people who are looking to sit on their coins for a longer period of time.

Quote from: maldini on June 20, 2019, 10:56:59 AM

Actually bitcoin is not entirely a savior, sometimes it will be a disaster for you if you lose your wallet. Lots of cases of losing bitcoin wallets, hacking, fraud, and even disasters can destroy your wallet.

If you properly secure your system and refrain from downloading garbage, clicking on unkown links, etc, nothing will happen to your coins.

As for disasters destroying your wallet, that only happens when you haven't taken the right measures of storing your private keys. We're talking money here. You always should make sure that security is top notch and that you have enough backups stored strategically in different locations. Engraving private keys on a piece of metal is an option too if you aim at extra durability.

kryptqnick

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Quote from: CryptoBry on June 19, 2019, 09:37:50 PM

Now, I think it is certain that whenever there can be some chaos or political restlessness, we can expect a corresponding jump in people who are buying more bitcoin. And lately, this was proven in Hong Kong which in the past many days erupted into huge protests against a controversial extradition law. The whole thing resulted into Bitcoin trading at a premium in Hong Kong. BTC has been trading between $75 and $160 over the global average on local exchange Tidebit, with many experts believing an even bigger premium will follow.

In our world experiencing many problems and challenges both natural and man-made, we can say definitely that bitcoin is providing the safe haven for value and wealth? Just like the traditional gold, bitcoin is playing the role to the T but unlike gold we know that bitcoin is much more accessible, easier to manage and has more potential for growth and return-on-investment.

I think it might depend on the type of events, not be simply linked to uncertainty. In Hong-Kong, for instance, they've had a special status for a while, and are basically used to special British traditions and some freedoms other parts of China don't enjoy. They are fighting for their rights, for freedom, and Bitcoin is ideologically consistent with that. Also, since China loves spying on people, they might be using Bitcoin to support protests and projects that support Hong-Kong's special status. Another famous example from the past is Venezuela, but they also had a good reason to use Bitcoin - completely broken local fiat. But the chaos, in general, is likely to lead to things that have inherent usefulness and value to get popular, I think. So it's not always about Bitcoin getting more popular during such times.

sngwinner

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I do not think every form of political chaos can result in a rise on btc. Maybe, you are thinking in that direction because you think people will change their money into btc to escape any form of crises that might arise from the political chaos but I do know it is not every chaos that affect the economy of a country.

Ucy

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Hong Kong protest and the bitcoin buying were probably due to people trying to fund the protest with bitcoin? Or it could be both reasons.

Safe haven with Bitcoin will happen when it becomes possible to use bitcoin for most things, like currency on decentralized Healthcare system, decentralized insurances, decentralized schools, decentralized marketplaces, etc

Kemarit

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Only two cases we had so far, first the Venezuelans crisis and then the Zimbabwe's hyper-inflation that cause the price of Bitcoin to premium as well. But as far as the on-going political crisis in Hong-Kong? I doubt that we can add it to Bitcoin use case. And I don't think this issue will go further as Chinese government as really good in curbing those noises against their government. Maybe in the short term, those wealthy Chinese or Hong Kong residents are hedging their wealth on crypto, but as sound as their so called political rally in Hong Kong subsides and realise that they are facing a formidable foe, sooner or later it will be back to normal again and maybe a compromise solution will be made to end everything.

maldini

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Quote from: CryptoBry on June 19, 2019, 09:37:50 PM

In our world experiencing many problems and challenges both natural and man-made, we can say definitely that bitcoin is providing the safe haven for value and wealth? Just like the traditional gold, bitcoin is playing the role to the T but unlike gold we know that bitcoin is much more accessible, easier to manage and has more potential for growth and return-on-investment.

I don't think that political turmoil can increase the purchase of bitcoin. You mean bitcoin is a savior when there is a political crisis? maybe it can if you are smart enough to do it. Actually bitcoin is not entirely a savior, sometimes it will be a disaster for you if you lose your wallet. Lots of cases of losing bitcoin wallets, hacking, fraud, and even disasters can destroy your wallet.

ityandsyn

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Quote from: CryptoBry on June 19, 2019, 09:37:50 PM

Now, I think it is certain that whenever there can be some chaos or political restlessness, we can expect a corresponding jump in people who are buying more bitcoin. And lately, this was proven in Hong Kong which in the past many days erupted into huge protests against a controversial extradition law. The whole thing resulted into Bitcoin trading at a premium in Hong Kong. BTC has been trading between $75 and $160 over the global average on local exchange Tidebit, with many experts believing an even bigger premium will follow.

In our world experiencing many problems and challenges both natural and man-made, we can say definitely that bitcoin is providing the safe haven for value and wealth? Just like the traditional gold, bitcoin is playing the role to the T but unlike gold we know that bitcoin is much more accessible, easier to manage and has more potential for growth and return-on-investment.

People thinking that their money will be safe if it converted into crypto currency rather than to have fiat currency in the bank and maybe this is not the cause of rising up of bitcoin price but I'm sure it can really help of its upward movements .

krb91

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To an extent it is largely true: economic instability leads to more directed attention towards decentralized assets/cryptocurrencies. His could be due majorly to the fact that policital uncertainty often adversely affects a nations economy. This instability in the economy can easily be escaped through cryptocurrencies, not necessarily Bitcoins.

dothebeats

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I don't really think that political restlessness have something to do with major jumps in bitcoin. Perhaps it can be seen as a 'signal' by some traders but certainly not a great reason for people to trade by the event. Also, $75 - $160 isn't really a premium IMO, as we have seen back in 2017 that Korean exchanges even had it by a thousand dollars compared to the rest of the world. It's just normal exchange differences due to time constraints and geographical locations but nothing special at all.

Schirer

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75-160 USD on BTC price 9300USD is from 0,8% to 1,7 %. I dont believe that this is a big premium .
Yea, the demand spiked there but this is nothing big.

Uncertainty usually means that people flee some assets which are impacted and go to others which are considered more stable. In this case, most likely it was just a way to transfer funds.

eaLiTy

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Quote from: Bharathi13 on June 19, 2019, 10:39:23 PM

Indian government announced demonitisation of all bank note of ₹500 and ₹1000 back on November 8 2016 and gave window of period to everyone to exchange their old notes with new note. This was the huge blow to the opposition political party as there were series of scams were exposing against their party and most of the corrupt politicians and businessman used Bitcoin to turn their black money into white as they had knowledge about Bitcoin or heard from some of their friends. One of my friends client invested ₹2500K($36765) in cash and purchased 30BTC by paying more than the market price.

If someone used bitcoin to wash their money it would have a paper trail that could be tracked back to the person who invested in it, to purchase big amount they will either go to exchanges to purchase that and since all of the exchanges functioned with proper KYC policy it is not a difficult task to track everyone if they wanted and the notion of bitcoin being used to launder money is just an excuse.
People will invest in bitcoin for its use case and not for illegal activities.

hatshepsut93

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If this effect is present, it is negligible. You are showing Honk Kong as an example to support your theory, but Tidebit's volume is only 25 million, while Bitcoin's total volume is nearly 16 billion (according to coinmarketcap). So, I doubt that 0.0015% of the market can have any big influence on the global price. And $70-160 is nothing when it comes to fluctuations, it's totally within normal range.

It's easy to prove that political chaos weakly correlates with Bitcoin, because we live in permanent state of chaos, there is always unrest somewhere in the world, but Bitcoin doesn't grow permanently, Bitcoin doesn't respond in a suggested way to even a fraction of those events. People who say that the price rises as a reaction to negative events are a prime example of cherry-picking their data to fit their theory.

Bharathi13

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Indian government announced demonitisation of all bank note of ₹500 and ₹1000 back on November 8 2016 and gave window of period to everyone to exchange their old notes with new note. This was the huge blow to the opposition political party as there were series of scams were exposing against their party and most of the corrupt politicians and businessman used Bitcoin to turn their black money into white as they had knowledge about Bitcoin or heard from some of their friends. One of my friends client invested ₹2500K($36765) in cash and purchased 30BTC by paying more than the market price.

Luckily within a year the Bitcoin price hit it's ATH value in 2017.
Yes I totally agree with you that Bitcoin is more accessible, easier to manage and have more potential for growth and return on investment.

CryptoBry

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Now, I think it is certain that whenever there can be some chaos or political restlessness, we can expect a corresponding jump in people who are buying more bitcoin. And lately, this was proven in Hong Kong which in the past many days erupted into huge protests against a controversial extradition law. The whole thing resulted into Bitcoin trading at a premium in Hong Kong. BTC has been trading between $75 and $160 over the global average on local exchange Tidebit, with many experts believing an even bigger premium will follow.

In our world experiencing many problems and challenges both natural and man-made, we can say definitely that bitcoin is providing the safe haven for value and wealth? Just like the traditional gold, bitcoin is playing the role to the T but unlike gold we know that bitcoin is much more accessible, easier to manage and has more potential for growth and return-on-investment.

Topic: Uncertainty, Political Chaos = More Bitcoin Buying (Read 274 times)