Is Bitcoin Greatly Rotating Into Bullion?

Tyler Durden's picture

While correlation is not causation, the coincidental timing of the tumble in virtual currencies and the surge in physical (alternative) currencies suggests another great rotation may be occurring... with gold at fresh 3-month highs as Bitcoin presses 3-months lows...

 

 

While not surprising, the chart above also shows the massive collapse in Mt.Gox pricing as the world and their virtual pet rabbit run for the exits...

 

Gold is now up over 12% from the post-Taper lows...

 

and Silver is exploding higher... up 15.6% now in February alone.

 

Charts: Bloomberg and Bitcoinwisdom

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Mad Mohel's picture

https://www.mtgox.com/signup

In three days you will be able to get them for $3 at Gox.

americanspirit's picture

My reaction to people who refer to themselves in the third person or by using the royal 'we' is the same as my reaction to guys who wear blue dress shirts with white collars that have to be from Penneys and sport a golf course tan (talkin' to you Angelo) - I just instinctively don't trust them. Color me superficial.

Hulk's picture

The price suppresion backfired massively, creating record levels of physical delivery. Prices now have to rise to quell physical demand.

Its going to be a great decade for PM's, keep stacking Bitchez !!!

DoChenRollingBearing's picture

Yes, I would agree.  But, what if we are running low on space...?

 

:)  

:p

|;.!    <--- His name was Mr Lennon Hendrix

silverserfer's picture

brought to you by ABC media AKA Disney corpse. HUUUH HUUH

fijisailor's picture

A rotation from virtual currency to virtual GLD?  Nice move.

Deathstar's picture

Lets see you attempt to purchase something with your SHITCOINS(TM) in Siberia....  They'll tall ya to go pound salt in the gulag.

If you can't hold it, you don't own it! Period (.)

 

Oh yea.... Hey PhonyStar, hows that 500.00 level that you don't care about feeling now?

LMAO

 

GOLD- Everywhere you want to be (TM)

Amagnonx's picture

BitCoin is far more acceptable than gold as a payment, and gold has had 5,000 years to prove itself as an acceptable form of payment, and BTC has overtaken it in 5 years.  In modern history gold itself was not even used, a paper substitute was used - proving that the monetary properties of gold have limitiations - especially with portability, divisibility and fungibility.

 

BTC is accepted by many merchants across the world for a wide range of things, try going into those same shops - hell any shop and paying with gold, or even with silver.

 

I love gold and silver, but I am not so foolish as to impute qualities to them that do not exist.  BTC is exceptionally good money, and its rate of acceptance over 5 years is a very strong indicator of its future potential.

 

Gold and silver are the ultimate forms of savings, nothing is as durable as gold - but as far as the rest of its monetary properties - crypto shits all over it.  Crypto is more divisible, portable, fungible, acceptable, secure, limited in supply - ya, BTC is simply better money than gold in almost every way -except for durability, which is why holding gold and silver makes a tonne of sense - but failing to hold any BTC or crypto at all, is as stupid as not owning gold.

sphindog's picture

"Bitcoin is money, and nothing else." J.P. Morgan

PS...for the dude that gave me a thumbs-down...I was kidding. Wow...went sailing over someone's head!

fonestar's picture

"Bits are money, everything else is bullshit."

                                          ~JP Borgan

 

If you're going to quote someone, make sure it's right.

Glass Seagull's picture

 

 

h/t Twitter.  Cite your source.

theliberalliberal's picture

BTC may be 1% of daily Gold trade.  but there is 1% phys backing for phys Au to paper Au,  so all the BTC could buy the physical.

 

never bought BTC.  glad i didnt at $1000 (seriously looking at buying but then.  fuck i am a sheep...lucky i am lazy and didnt have the powder due to pending tax bill)

 

anyway,  you cant make fun of fonestar until btc is below $16,  and i am sure he will liquidate before then.

would you make fun of someone that bought silver for $16,  didnt sell it at $48 but later liquidated at $30?  of course you wouldnt,  he still up compared to almost every other asset.

 

i just think fone should sell why he is still miles ahead,  and not wait to be only a few meters ahead.

silvermail's picture

NASA and alchemy – it’s the last two bullets Fed, against gold.
In the world media is already unfolding speculation that NASA will soon be mine gold in cosmic space. Smart people understand, that the price of this gold will be much higher, than the most expensive mining on our planet. But most of the fools believes in it blah blah blah of Fed.

JohnnyBlaze's picture

I don't know shit but if BTC is causing the gold/silver spike OMFG if the masses lose confidence in the dollar and run to gold.  Its g5 and hot bitches time.

Yen Cross's picture

 I've  studied every chart.  ] soliloquies> Bitchez\ 

  I've got some thanks to give.

  Eamonn I'm disapointed?

satoshi411's picture

Stupid, at the peak BTC capitalization was 10 Billion, now BTC is down 80%, so its like 2 billion, that is enough gold to what go shopping at k-mart for a nigerian dictator?

Then assumption here is that the 10 billiion of evaporated wealth in BTC ( 12 B -> 2 B USD ) was sold and bought GOLD, but that is BULLSHIT, as all that happen is those who created BTC for free sold to BUYERS, but there was never any real wealth, and those who sold used that CASH, for expense.

Even now the BTC exchanges try to control the collapse of BTC, but its a  controlled collapse.

But BTC collapse doesn't have a fucking thing to do with GOLD.

Let's see the CHINESE bought say 2,000 tons of GOLD last year.

That's $900 BILLION USD in GOLD ( ? ), ... so at best it has NOT a fucking thing to do with the MAYBE billion USD that was stolen from idiots that paid REAL CASH (USD) for BTC.

*

GOLD is/was MAYBE effected 1/900 by BTC, in other words 0.0011 is how much BTC effect GOLD at BEST.

FUCKING BULLSHIT STORY

q99x2's picture

It is a wise move as we near the collapse of the financial system.

Food and Insulin is good also.

Grosvenor Pkwy's picture

Insulin? You should be lifting weights. A set of free weights is cheap.

bcking's picture

Bitcoin is here to stay losers. I'm not quite sure how you guys still have faith in paper rectangles with pictures of dead guys drawn on them. They're not even unique, like a bitcoin is. You realize that your bank account doesn't actually have those dollars, don't you? It's just a number on a screen that the bank controls, so you're already in 'digital money' whether you like it or not. You're just paying some evil jackasses to handle your account for you. I'm sure they have your best interests at heart.

satoshi411's picture

Cabbage Patch DOll is here to stay

Beany Baby's are here to stay

Tulip's are hear to stay

All grand popular delusions in HUMAN history, never go away, there is always somebody somewhere holding on to the delusion.

*

The market is VERY-VERY small.

I can see in 2+ years maybe 2-3 exchanges for BTC all ran by FONESTAR,

the BID/ASK will be 10 to 0.00001 in milli-grams of gold.

*

There are old Japs in the Jungles of Asia, who are still hiding since WWII, go tell them the 'war is over'.

Amagnonx's picture

In 2 years time there will be no exchanges at all - they are being disinter-mediated, the exchange system is going to be 100% decentralized - the banksters will then have nowhere to attack at all.

 

That BTC market that you describe as 'very, very small' is a market that was worth zero 5 years ago, and it expanded exponentially.  BTC is weathering some extreme attacks, but it has not gone away - and has shown extreme resilience to the bad press, exchange failure, DDoS attack, association with money laundering and illegal trade - this resilience is creating confidence.

 

Silver, gold, and crypto is a diversified strategy to protect savings - banks, fiat and govt have proven to be nothing but a criminal enterprise.

sheikurbootie's picture

Bitcoin makes absolutely no sense to me. It's only viable market is illegal.  I've made up my mind, so fuck off trying to sell me on this shit.

fonestar's picture

You fuck off.  The Bitcoiners are going to totally destroy your society and your "laws".

sheikurbootie's picture

I guarantee you have shit in bitcoin.  Probably not even 100.  You bought a lottery ticket and think it's going to win.  It won't.

fonestar's picture

We will see won't we dipshit?

Yen Cross's picture

 I think usd/jpy is going to breach 100.

automaton's picture

This is news?  Who didn't know that crypto currencies were a scam?

Yen Cross's picture

  I have to give you an up-vote fone star. That clown was an idiot!

  Don't get used to it!

Spungo's picture

The people who speculate in bitcoin are probably not the same people who buy gold.

One And Only's picture

JFC with these gold/bitcoin comparisons.

Carrots are not mashed potatoes.

Spectre's picture

Sure glad those Hackers can't jack my stack !

seek's picture

Any data (and conclusions) based on Mt. Gox are completely shit at the moment. Gox is imploding -- likely due to fraud -- and each day something new comes up. First it was the bogus transaction ID hack, now today hundreds, if not thousands, of people are reporting unauthorized logins to their accounts.

My guess is Gox has been perpetrating some type of fraud and is desperately trying one thing after another to cover it up.

TheHound73's picture

I sold 3 coins for JPY on Mt.Gox 3 weeks ago at $950 each.  After waiting all this time for the withdrawl to hit my Japanese bank account and writing them nasty letters, I requested to cancel the wire transfer.  They "serviced" this request VERY quickly, lol.   Anyways, those 3 coins I sold bought me 10.5 BTC today.  Time will tell if I ever see those coins from Mt.Gox.

As far as the unauthorized logins are concerned, my understanding is they just started sending out emails when accounts are logged in.  This means to me that all those accounts have been compromised for a long time but only just now are people realizing it.

Spungo's picture

"Do people really still follow him?"

Deaf people are still unaware of how annoying he sounds.

mister33's picture

Buying digital coins (microchip money) doesn't hit the squids where it hurts like precious metals does. It doesn't bring them any closer to being exposed for the frauds that they are. The achilles heel of Goliath is physical precious metals. Furthermore, there is no barriers to entry to compete with digital coins. Many other competitors are growing and will sprout around bitcoin which, to me, says that bitcoin's growth prospects are hampered and any future growth will likely occur at a much slower pace - the market cap will be shared more and more, especially as competition to be #1 microchip money intensifies. Plus there are many risks with digital money and there are many more clever minds which I don't doubt will figure out how to hack or disrupt digital money at some point on the near future. I don't trust bitcoin personally, especially since JPM tried to patent a digital currency virtually identical to bitcoin not long ago. Why not just let another company develop it... then buy the company? It's market cap isn't too high and it could easily be squashed by the big players... but it's not.... why? Why aren't actions taken against it if it is such a real deal? Digital money might be a good investment purely from an investment standpoint but it doesn't do much to change the world for the better. It's just breathing life into something that the Goliath will jump on and make his own, regulate, tax, etc... allowing the Goliath to contine it's path of grandeous financial manipulation an eency weency bit longer. Protective algorithms only last so long as computing power increases exponentially. There was a guy who started minting his own gold and silver money, and he called it the "liberty dolar." The dude was shut down immediately for circumventing Goliath's authority. Why isn't bitcoin? If it can't be shut down by programmers because the encryption is too sophisticated then why isn't it shut down with finances? Why isn't it sold six feet under? It's sketchy. Too much risk. Unlikely to see a large spurt of growth again (due to competition and unknown risk and vulnerability). If I were an investor who had gained enormously through bitcoin but suffered a loss to the Mt.Gox incident.... I would probably cash out now, take my winnings, and invest it in silver coins.

HeinzGolderian's picture

The achilles heel of Goliath is physical precious metals.

Why?  Because their existance is finite, correct?

Furthermore, there is no barriers to entry to compete with digital coins.

Actually, there is a barrier, and that is the establishment of a verification network.

Digital money might be a good investment purely from an investment standpoint but it doesn't do much to change the world for the better.

There are literally billions of people on this planet with access to a smart phone, but no access to banking as you and I know it.  Bitcoin completely changes their ability to transfer funds to one another.  The electronic transfer of funds is an industry that generates over a hundred billion dollars in fees per year.

The emergence of cryptocurrencies are a bigger deal than you realize.

The hostility and FUD spreading I've seen regarding stem from ignorance about what it is and how it works.

satoshi411's picture

Bull fucking shit,

3 billiion people on the earth trade phone credit all day and everyday,

any where in south-america, africa, or asia,

I can put $10 USD on my phone, in credit and go anywhere use  that credit as CASH to purchase and trade for anything,

I can send $5 to my girlfriends phone anytime I wish, and I can put CASH on the table at any SHOP ( cigarette, rice, soda ) and buy phone credit.

The entire conversation here is assholes in the USA  parental basement who haven't see how 4+ billion folk on earth are already living.

 

Advoc8tr's picture

Doesn't that simply validate his point ?  All those phones can run a Bitcoin client and hence slip right in without any extra infrastructure ? It is better than phone credit because outside those countries phone credit is not very appealing as a medium of exchange.

mister33's picture

HeinzGolderian.... precious metals are Goliath's achilles heel not because they are limited in supply, but because Goliath has created an enormously over-leveraged paper market promising the same existing precious metals over and over and over again to different buyers... (think fractional reserve). Everytime someone takes a little piece of precious metal away from Goliath his ponzi scheme becomes closer and closer to being exposed as the fraud that it is because the Goliath becomes less and less likely to satisfy his precious obligations. There simply isn't enough precious to fill all the IOU's issued and the more the precious filters into the publics hands the weaker Goliath becomes. Ease of creation (not being easy to create) is an aspect of sound money... but it isn't the aspect that makes it the perfect offensive against Goliath. Physical precious is the sweet spot for taking down this giant because it's the one thing Goliath doesn't have enough of. Money flowing into bitcoin that might have been destined for silver only keeps Goliath alive a little longer....

You're right about the barriers to entry part... I shouldn't have said "NO barriers to entry." However establishing a verification network is not a very difficult thing to do for any agency planning a digital currency let alone college students. Pretty much any major website which sells merchandise already has verification networks. What I should have said is that the barriers to entry are weak (small hurdles) to overcome and vast numbers of competitors could appear out of nowhere very quickly - some of which potentially could be under-the-skin-microchip-money proposed by Goliath himself...

Finally, when I say that bitcoin doesn't help the world for the better like acquiring precious does I simply mean that it doesn't thwart Goliath's agenda and acutally might play into it instead. On the other hand... acquiring the precious directly injures Goliath and directly rids him of his powers of sorcery (financial manipulation)...

Either way... the ascent of silver and gold (as history has shown time and time again after fiat money collapses - which it always does) mathematically is inevitable. Bitcoin might rise with it as well... but... not nearly as far up as physical silver and gold now that they are breaking free from their artificially manipulated lows. There is going to be some compounding of value as this manipulation unwinds that I truly think will send it aeons above and beyond any microchip money or any other asset. % on %... silver looks the most promising... but gold is the most damaging to Goliath.

I apologize for the multiple posts earlier... not sure what happened.

mister33's picture

Buying digital coins (microchip money) doesn't hit the squids where it hurts like precious metals does. It doesn't bring them any closer to being exposed for the frauds that they are. The achilles heel of Goliath is physical precious metals. Furthermore, there is no barriers to entry to compete with digital coins. Many other competitors are growing and will sprout around bitcoin which, to me, says that bitcoin's growth prospects are hampered and any future growth will likely occur at a much slower pace - the market cap will be shared more and more, especially as competition to be #1 microchip money intensifies. Plus there are many risks with digital money and there are many more clever minds which I don't doubt will figure out how to hack or disrupt digital money at some point on the near future. I don't trust bitcoin personally, especially since JPM tried to patent a digital currency virtually identical to bitcoin not long ago. Why not just let another company develop it... then buy the company? It's market cap isn't too high and it could easily be squashed by the big players... but it's not.... why? Why aren't actions taken against it if it is such a real deal? Digital money might be a good investment purely from an investment standpoint but it doesn't do much to change the world for the better. It's just breathing life into something that the Goliath will jump on and make his own, regulate, tax, etc... allowing the Goliath to contine it's path of grandeous financial manipulation an eency weency bit longer. Protective algorithms only last so long as computing power increases exponentially. There was a guy who started minting his own gold and silver money, and he called it the "liberty dolar." The dude was shut down immediately for circumventing Goliath's authority. Why isn't bitcoin? If it can't be shut down by programmers because the encryption is too sophisticated then why isn't it shut down with finances? Why isn't it sold six feet under? It's sketchy. Too much risk. Unlikely to see a large spurt of growth again (due to competition and unknown risk and vulnerability). If I were an investor who had gained enormously through bitcoin but suffered a loss to the Mt.Gox incident.... I would probably cash out now, take my winnings, and invest it in silver coins.

Grosvenor Pkwy's picture

Seeing multiple duplicate posts like this really gives me a lot of faith in the security and reliability of computer networks to manage digital money correctly.

I Write Code's picture

Sit on my bitcoin and rotate, maybe you'll turn into gold.

Yen Cross's picture

   Tyler .

  I'm perplexed? Are those moving averages 20&50(simple averages) on the bone headed BTC half assed technical charts?

 

  I'm amazed that the technical studies of BTC are so limited !

http://bitcoinwisdom.com/

 

balanced's picture

Bitcoin lovers and Bitcoin haters are both wrong, haha. As is taught in Buddhism, the answer is in the middle way, between opposite extremes.

PMs for storing wealth. Bitcoin for transactions.

Why don't more people get this? Answer: Once someone chooses a direction, they no longer view the issue objectively, but instead defend their choice to the detriment of all logic out of fear of having made the wrong choice.

I'd continue, but I don't think that I could possibly sound any more pretentious.

satoshi411's picture

What BUDDHA said was that there will always be MEN who eat SHIT (BTC), and men who eat RICE(GOLD),

The men who eat rice will prosper, find a good wife, make baby's and live a good life.

The men who eat shit ( play BTC ), will not have relationships, and have bad breath, and never have offspring and perish.

There will always be good money and bad money, and good food and bad food.

Buddha say's "WHo are we to decide for another what he puts in his mouth", but it does effect your outcome. Your relationships.

Make NO mistake EATING 'SHIT' is not a 'balanced' lifestyle.

Assholes like to say, just eat 1/2 & 1/2 but even a little shit is is going to make problems.

Life is too short to be a SHIT EATER.

Enough Said.