Fiat Faith Falters As Bitcoin Surges 7% Post-Greferendum Decision

Tyler Durden's picture

The faith in fiat currencies is faltering...

 

 

Source: BitcoinWisdom

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
LawsofPhysics's picture

The bitcoin miners/servers at JPM and Goldman Sachs could not be happier...

out of the frying pan and...

freet0pian's picture

Yup, makes sense, playing with dimes at JPM and GS. :roll_eyes:

LawsofPhysics's picture

Let me be clear, there are lots of cryptocurrency choices out there.  They are great hedges in the absence of any real honest market short (VIX etc.) but they are not backed by anything fucking real, period, and therefore not without risk.

Wake me the western governments start accepting tax payments in bitcoin and their soldiers are happy to accept bitcoin payments.

Arnold's picture

Same argument for paper currencies.

 

 

(Full Faith and Trust)

LawsofPhysics's picture

Really?  Last time I checked, there were some sizable military forces standing behind that paper.

The paper is of course being fully devalued.  Once the soldiers figure that out, then, and only then, will all hell break loose.  in the meantime it it not theirs to ask why but only to do and to die.

Not all paper is created equal, what is standing behind the yuan, that is the most important question for you to ponder.

THE 4th Quadrant's picture

Yes. I like the concept of Bitcoin but the filthy joos are the ones who created it, not some Japanese genius.

Have you seen the code? Perfectly written and with comments galore. Who the fuck writes code like that?

I'll tell you who. The people who the filthy joos hired to write it.

The joos did all the early mining before anyone had a chance and they cornered all the 'free' coins. Now they throw some small change to the goy miners. They say that there is a limit on coins but that is false too. Early on they mined so many that they will always have control of it.

LawsofPhysics's picture

Forget about "backing" and be more concerned with counterparty RISK!!!!!

Theosebes Goodfellow's picture

~"Forget about "backing" and be more concerned with counterparty RISK!!!!!"~

Say, speaking of which, would someone please reach over a poke gold and silver in the ribs? It seems as if they are sleeping through this here Grexit and Puerto Rican tent-folding. .

Bastiat's picture

They aren't sleeping--they get clubbed  as soon as they sit up.

Waylon Bits's picture
Waylon Bits (not verified) Bastiat Jun 29, 2015 9:36 AM

SATOSHI WE LOVE YOU!!!!!!!!!

CPL's picture

Yeah, that's because of the ETN/ETF sphere of investment's of paper fronted gold and silver.  The ETF's are highlighting what a PM reserve backed currency would function like in a world market.  Except they are a tiny microcosm of financial instrumentation only used by a couple of million people.  Just imagine how fucked up it would get if billions were doing the same thing.  Doubt it would last a week.

funthea's picture

You forget that in this paper market, the asset is decoupled from reality in that it has been sold hundreds of times with hundreds beliving they own the underlining asset. This market is not what it would look like it the asset were only allowed to be traded ONCE.

CPL's picture

Nope, didn't forget that at all.  If people honestly believe that it'll be different people managing the gold standard before and after.  I got news for them.  All that happens in that situation is the people managing the gold and silver price action today get to sit right next to your stack of PM's instead of having that thick insulation of paper.  Just inviting the fox into the hen house. 

Then again maybe that's not such a bad thing, it would help speed this bullshit up.

Bay of Pigs's picture

What? But gold is up two bucks and silver three cents!

Seriously, this fuckan farce is hard to comprehend anymore...

Waylon Bits's picture
Waylon Bits (not verified) Bay of Pigs Jun 29, 2015 9:36 AM

FUCK YEAH BITCOIN!!!!!!!!!!!!!!

LawsofPhysics's picture

Why, my ounces have not changed at all!!!  That is the fucking point!  Yes, thanks for helping!

Waylon Bits's picture
Waylon Bits (not verified) LawsofPhysics Jun 29, 2015 9:37 AM

Bitcoin has no counterparty risk!

LawsofPhysics's picture

Bullshit, it can and has lost value, oddly enough, I have never seen an ounce dissappear in my safe.

Waylon Bits's picture
Waylon Bits (not verified) LawsofPhysics Jun 29, 2015 10:34 AM

Um, how did it "lose value" if it was less than $1, five short years ago?  Stop making shit up!!

Lex_Luthor's picture

Yes, because bitcoin is a fucking bubble and nothing more. It was created out of nothing, it produces nothing, it exchanges nothing, it does not possess military. It's a fucking fiction that dissapears as soon as the internet is shut down. Blockchain is a joke and so are the bitcoin speculators who don't really give a shit about freedom and all the other Max Kaiser and DaVinci bullshit. It's all about a fucking GREED for $$$ and you've all been duped by the promotors and now you promote it further to find enough fools to hold the bag for you. Tic-tac for bitcoin and all the moronic bitcoin johnny-come-lately community. BC Max Keiser&Co. pushers are LONG gone @$1,200!

tmosley's picture

Price risk isn't the same as counterparty risk.

Seriously, stop talking.

CPL's picture

The idea of counterparty risk is a red herring it Does not exist...and it's an old lie.  It's the same lie every gambler tells themselves when they'll get luckier if they double down.  Guess what, the house of math always wins the game.

In the current situation all 'risk' has been managed, mitigated, packaged, lied about and ignored since the 1980's with the Savings and Loans scandals.  That's why none of the traditional activities to allow the market to correct itself should happen are happening.  It's why the market will never heal or repair itself under the conditions with the given tools.  Even the tools to repair this mess aren't useful.  The tools have also been 'managed' which means trying to fix a broken economy with broken tools just makes it worse.  Again, there is no counterparty risk in the old system.  Sometimes things break and can never be repaired, as kid's everyone is taught that lesson at least once. Even go so far to learn nursery ryhme's on the subject based on a kingdom's nest egg.

Humpty Dumpty sat on a wall,
Humpty Dumpty had a great fall.
All the king's horses and all the king's men
Couldn't put Humpty together again.

The counterparty risk and tools were systemically removed over the course of 30 years.  To get to this point, it was little changes over time, completely disregarded as a problem because people were making "money".  Add up all those little changes = big problem.  It's why PM's are worthless at the counterparty risk they once were.  It's why property has been rendered worthless as counterparty risk.  It's why even running a business is no no longer a hedge against counterparty risk.  What is being highlighted is the currencies all these assets trade in are the risk.

There is no stopping this from collapsing, mathematically and socially it's a guarantee.  Only functioning economy on the planet right now with any real growth at the moment is BitCoin.  It's either the wild west of BTC, or sit and watch "elite" idiots attempt to put humpty dumpty back together again.  There aren't many options in the situation.

Waylon Bits's picture
Waylon Bits (not verified) THE 4th Quadrant Jun 29, 2015 9:37 AM

Bitcoin is the greatest thing since digitally sliced bread!

Pseudonymous's picture

Why are you complaining about free software?

commander gruze?'s picture

Have you seen the code? Perfectly written and with comments galore. Who the fuck writes code like that?

But have you *actually* seen the code of its first release, version 0.1? It's an unholy mess, riddled with security flaws. I'm in awe what has the free software cummunity turned the code into. And since you ask, I do write code like that and so do people in my team.

Waylon Bits's picture
Waylon Bits (not verified) LawsofPhysics Jun 29, 2015 9:54 AM

Bitcoin has no needs for military men backing it.  Because when it comes down to it, strength in numbers overwhelms strength in guns.

Don't believe me?  Put 100 armed men up against 1,000,0000 with clubs!

TheFutureReset's picture

In the future, wars will be fought on the internet. Bitcoin has an army for that. We are legion. 

PaperWillBurn's picture

The codes been re-written over time. The limit cant be changed without a hard fork that nobody will agree to run.

 

 

CPL's picture

Correct, that's why the decimal point goes to the right and inversely transaction speed quickens as adoption happens with node strength improving.  Originally BTC was seven zeros after the decimal place, now it's nine.  The more people use it, more decimal places get added on.  The top end limit is 21 million in total.  Total amount of ounces of coin/bar gold used as currency in circulation is 21 million.  That is not a mistake btw.  The crypto is built to be a 1:1 ratio, 1 BTC to 1 Ounce of Gold, if gold is ever backed into it.  Since PM price action and optics are severely damaged, it is doubtful the PM market will ever adjust properly to compensate.

21000000.000000000---> decimal point slides to the right.  BTC is built to scale to a world economy and be backed with 21 million of 'whatever'.

A Nanny Moose's picture

So my investment options are Faith & Trust, or Coercion?

I will take physical assest TYVM

TheFutureReset's picture

So will the govt. They will take your physical assets. 

ZH Snob's picture

crypto currencies are accepted by the system because the NSA has the master key to all of them. 

commander gruze?'s picture

<insert-captain-pickard-facepalm-meme-image-here>

Waylon Bits's picture
Waylon Bits (not verified) ZH Snob Jun 29, 2015 9:41 AM

No they don't have any "master key".  They do have backdoor hardware access which is troubling....

Fun Facts's picture

The CME needs to start a bitcoin futures market so the FED can control the price.

tmosley's picture

Gold isn't backed by anything real.

Wake me when western governments start accepting tax payments in gold and their soldiers are happy to accept gold payments.

Don't let the actions or opinions or the idiots in charge, or the sheep in wolf's clothing in the military sway your judgement.  Especially avoid doublethink, which is the sum total of all pro-gold anti-bitcoin arguments. They are the same asset class.

ZH Snob's picture

it's amazing to me that the millenials are so far from recognizing real value they do not understand that gold is backed by itself, that it is the ultimate value and reserve of all other currencies.

tmosley's picture

Gold isn't backed by itself. That's stupid.  By that logic, dollars are back by themselves.

You guys really REALLY need to learn what money is.  It could save your life one day.

Here's a hint: if it costs almost as much to issue a new unit of it as the unit itself is worth--it's probably money.

crazytechnician's picture

Trying to explain bitcoin to Flat Earther's is extremely difficult.

You have to do is slooooowly , try to imagine explaining what an electric light is to a retard and they may finally 'get-it'

e_goldstein's picture

 try to imagine explaining what an electric light is to a retard and they may finally 'get-it'

 tungsten?

Urban Roman's picture

No, indium-gallim nitride, or something like that.

Citxmech's picture

Seems like a fundamental problem, no?

TheFutureReset's picture

CrazyTech +1, thank you for that. Lmao

LawsofPhysics's picture

Forget "backing" and think counterparty risk.

ZH Snob's picture

backed by itself is a facetious and sarcastic descript to drive home the point that it stands on its own, and has no counterparty risk.

Al Capowned's picture

Millenials are smart enough to know that in the absence of intrinsic value, it is the utility of the underlying network that provides the Bitcoin tokens with its value.

The potenital utility of Bitcoin is almost limitless, there will be a million uses for it, all of which will require Bitcoin.

ZH Snob's picture

I would agree with that, Al.  bc is certainly liquid and useable.  and its value is in its network.

did you know that networking, particularly the internet was created by DARPA?