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Bitcoin and The Blockchain - Banks Must Embrace Or “Die”

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Bitcoin and The Blockchain - Banks Must Embrace Or “Die”

Editors Note:

GoldCore believe that blockchain technology will revolutionise the world of finance, payments and money and may have an impact on the world on a scale of that of the internet.  Hence, the need to keep an eye on this very important evolving technology that has ramifications for us all.

If you thought the internet was disruptive, well you ain't seen nothing yet ... the blockchain cometh!

Charlie Morris is the editor of Atlas Pulse - a newsletter focusing on gold, bitcoin, blockchain and disruptive technology.. He has written an excellent article looking at bitcoin, the blockchain and the ramifications for banks and our financial system.


Symbols for Gold, Bitcoin and Silver - Atlas Pulse

by Charlie Morris

Bitcoin’s had one hell of a year.

The price of a single bitcoin recently touched $500, which is three times higher than it was in August this year. That’s one hell of a move in a short space of time and I’m going to try and put that into context.

In November 2013, there were just over 12 million bitcoins in circulation and the price touched $1,200, meaning the network was briefly worth $14.4bn. This new form of electronic money had high hopes and some felt it would genuinely catch on as it had the potential to challenge the existing system in global payments.

Bitcoin clearly got ahead of itself and the excitement about the future of money took a turn for the worse.

There were scandals such as the loss of bitcoins at the MT Gox exchange (a bitcoin trading platform), the closure of the Silk Road website (drugs and other bad things) and the banning of bitcoin wallets by Apple (users could no longer transact on their phones).

The lowest ebb came in January this year when the network value briefly dropped below $ bn, a 77% contraction. Many high profile commentators wrote off bitcoin and predicted a future value below $1.

Today the bitcoin network appears to be alive and well. It recently saw total daily transaction volumes rise above $300m. This growth in usage from $50m per day in the summer has caused the price to surge. At $500 per bitcoin, the network value recently touched $7.4bn.

This resurgence is all the more surprising because there have been so many barriers in its path. Regulators have put bitcoin businesses under heavy scrutiny and most banks have refused to deal with them, despite being legitimate and innovative enterprises. In fact, George Osborne showed public support for bitcoin and wants Britain to be a hub for these disruptive technologies.

Before we go into further detail, let’s take a step back and remind ourselves what bitcoin actually is.

In simple terms, bitcoin is electronic cash. It was created on the Internet by ‘miners’ and can be transacted with anyone else who has a bitcoin ‘wallet’. It can’t be copied, cut or pasted, nor can they be minted to infinity.

As I said, there are 14.8 million bitcoins in circulation, and each day approximately 4,000 new coins are created. In exchange for validating all of the transactions carried out by the community, the miners receive the new coins plus some transaction fees. Yesterday’s payout to the miners was roughly $2m. Yes, you read that correctly.

Given the vast rewards, this process is highly competitive and if you want to mine bitcoins, you’ll need a super computer bigger than GCHQ’s and Nasa’s combined; I’m not exaggerating.

The miners work hard for their money and their primary task is to validate a ‘block’ of transactions every ten minutes (or by my calculations, every 9 minutes and 41 seconds on average). In financial terms, they carry out the ‘settlement’ for bitcoin and perform record keeping functions.

There are roughly 153 blocks created each and every day. They stack up on top of each other and, since bitcoin’s birth on 3rd January 2009, this process has occurred over 382,000 times. Hence the phrase ‘blockchain’ as the transaction data is stored as a ‘chain of blocks’.

The true genius of bitcoin is that it has been built using a database that was designed to transact, whereas a traditional database was designed to store information.

Financial transactions use traditional databases that were invented decades ago. In order for them to transact, they dive inside the computer, find the data they are looking for, change it and then climb back out. That system has worked well, but now the world has something better.

With a blockchain, instead of finding and changing the data, the system continuously adds new layers whilst the past records remain unchanged. This has improved speed, security, transparency and record keeping whilst simultaneously slashing costs.

Crucially, the bitcoin ecosystem is operated by the ‘invisible hand’. There are no employees or maintenance staff behind it. Ask a bank how many people sit in their IT department and the answer will be in the tens of thousands. Bitcoin has survived for nearly seven years with no employees whatsoever, just an open-source community of coders who implement periodic improvements.

Crucially, the bitcoin network is ‘de-centralised’. A bank may backup its database several times, but for bitcoin, there are 5,625 copies (at the last count), known as ‘nodes’. In order to shut down bitcoin, you would need to destroy every single one. That would mean a coordinated effort from 90 different countries including Zimbabwe, Russia and Iran. Good luck with that; the bitcoin network is here to stay.

What can you do with bitcoin?

You can spend it in a growing list of places although, I readily admit, it is far from mainstream. As I said on my recent podcast, I managed to buy a glass of wine in Chamonix and a cup of coffee in Shoreditch, but little else.

That has hardly changed the face of money, but entrepreneurs have created credit cards that transact using bitcoin. That means it is potentially acceptable whenever you see the Visa or Mastercard symbol.

Wall Street has seen this blockchain technology and has taken it into the fold. The banks that intend to survive know that if they don’t take the lead, they’ll die. Those that fail to take an interest will get left behind and so there’s much at stake.

The recent surge in price from $160 in August to $500 was an explosive move. The FT has attributed this to a Russian pyramid scheme called MMM, that has taken off in China. I’m sure this explains much of the recent exuberance, but underlying that, is a self-sustaining network that enjoys underlying growth.

Speculative flurries will come and go but what I am interested in is the trend. If the real usage of bitcoin grows, the price can only rise. We should think of bitcoin like a technology stock where the value is directly related to the size of the network.

This article is from the free daily email Capital & Conflict as published by Money Week. Charlie Morris is the editor of Atlas Pulse; a newsletter focusing on gold, disruptive technology and blockchains.

 

Protecting Your Savings In The Coming Bail-In Era - Download Must Read Guide


DAILY PRICES

Today’s Gold Prices: USD 1070.50, EUR 1005.95 and GBP 702.74 per ounce.
Yesterday’s Gold Prices: USD 1080.80, EUR 1013.60 and GBP 710.50 per ounce.
(LBMA AM)


Gold in USD - 10 Year

Gold closed yesterday at $1069.50, down $13.70 for the day.  Silver was down $0.06 closing at $14.21. Platinum lost $12 to $851.

Gold is steady but set a fresh near six-year low overnight  - the lowest since Feb 2010 - at $1,064.95/oz, after falling 1.2% yesterday. It was gold’s biggest one-day drop in more than a week, and its 21st down day in 24. Gold’s 14-day relative strength index (RSI) remains in oversold territory (below 30) for a tenth session, at 22.5.

Silver is 0.1% higher, platinum's a touch lower, and palladium is down 0.4%.

Global silver supplies in 2015 are in deficit for the third straight year as mine production sees its smallest rise in more than a decade, scrap returns drop and miners reduce their hedge positions, a Thomson Reuters GFMS analyst said on Tuesday.

Total silver supply is forecast to fall to 1.01 billion ounces in 2015 - down 3.3 percent from 2014 - with physical demand falling to a lesser degree, down 2.5 percent to 1.06 billion ounces, said Erica Rannestad, senior analyst on the GFMS team presenting the report at a Silver Institute dinner in New York. This brings GFMS' 2015 silver supply/demand forecast to an annual physical deficit of 42.7 million ounces.

Gunfire and explosions shook the Paris suburb of St Denis early on Wednesday as French police surrounded a building where a Belgian Islamist militant suspected of masterminding last week's attacks in the French capital was believed to be holed up. Two assailants were killed, including a woman who detonated a suicide bomb, a source close to the case said, adding that the police operation was continuing to flush out two other suspects. The target of the raid, which filled the streets of St Denis with heavily armed police and soldiers, was Islamic State militant Abdelhamid Abaaoud, who was initially thought to have orchestrated the Paris attacks from Syria, police and justice sources said. (Reuters)

Air strikes carried out by French jets and other forces have killed at least 33 Islamic State militants in the group's Raqqa stronghold in Syria over the past three days, the Syrian Observatory for Human Rights monitoring group said on Wednesday. Citing activists, the Observatory also said that Islamic State members and dozens of the families of senior members had started leaving Raqqa city to relocate to Mosul in Iraq because of security concerns. Mosul is also controlled by Islamic State. (Reuters)

IMPORTANT NEWS

Paris Raids Target Terrorist Ringleader, Leaving at Least 2 Dead – Bloomberg
Security jitters drive European investors back to safe havens – Reuters
Gold eases as dollar gains offset safe-haven bids – Reuters
Einhorn’s Greenlight takes new long positions, exits some shorts – Reuters
Gold settles under $1,070 for the first time since 2010 – MarketWatch

IMPORTANT ANALYSIS

Can the Australian Government Confiscate Your Gold? – Dailyreckoning.com
Why Gold’s Physical Sales Are Going Strong – Yahoo Finance
UK Property Market At “Tipping Point”? – MoneyWeek
Bitcoin: digital gold or fool’s gold? – mineweb.com
Stockman CNBC Interview: Last Spasm Of The Bull, Meltdown Ahead – David Stockman

Read more News & Commentary on GoldCore.com

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Thu, 11/19/2015 - 01:06 | 6812145 TheBeatles
Thu, 11/19/2015 - 01:31 | 6812194 palmereldritch
palmereldritch's picture

Maplz Bitchez :)

Wed, 11/18/2015 - 23:34 | 6812012 palmereldritch
palmereldritch's picture

So an analogy could be like 'the Banks' are like 'the EU', 'must embrace' is 'will accept' and 'Bitcoin' is like 'waves of undocumented ME refugees'...you know, for comparative purposes

Say...there isn't any ISIS in that block chain is there?

(My apologies but I am just trying to keep pace with fonestar)

Wed, 11/18/2015 - 19:06 | 6811190 Spungo
Spungo's picture

Don't US dollars already have a blockchain? It's not like one bank can unilaterally create money and pass it off as real money. They report it somewhere. Money lent out by a bank doesn't exist in a vacuum. Other institutions are immediately aware of it. Try to finance a car or something. They'll know if you have a mortgage, if you have gone bankrupt, if you have other car payments, etc. That's effectively the same thing as a blockchain.

Wed, 11/18/2015 - 22:22 | 6811810 SgtShaftoe
SgtShaftoe's picture

The currency borrowed to buy a car is indeed lended out of nowhere. The credit bureaus (Experian, Transunion etc.) get feeds from various banks and creditors (dealership). That's where the data flows. There is no blockchain in the current system and comparing the two is absolutely ridiculous. If a couple data centers in Texas, California and downtown Chicago (respectively) fell into the earth there would be no "credit score" from the above. Those systems are more or less centralized as compared to bitcoin.

Bitcoin on the other hand is absolutely far more resilient than the doomsday systems of the DoD. It's just so distributed. Unless the encryption cipher is broken (which can be easily fixed BTW) there really aren't any flaws. The designed-in flaw of traceability of transactions can be overcome through bitcoin laundering services. Alternatively, just don't buy your cup-o-joe using a bitcoin account you don't want traced to you.

The companies that should really be shitting their respective pants are the money wire companies. I've talked to senior people of both companies and asked them about bitcoin and they're completely clueless. When Bitcoin finally hits them it will be like a D60 bulldozer to the head. When walking through their offices I couldn't help thinking "this is what a company looks like just before it get's killed by a disruptive technology."

Wed, 11/18/2015 - 18:06 | 6810973 PoasterToaster
PoasterToaster's picture

The Blockchain is an interesting experiment in eliminating counterparty risk for a "fiat currency".  Wouldn't it be nice to have a worldwide exchange system that wasn't owned by the elite and their bankers? Why, without that tool of control their theft would be at an end and people might actually, finally escape slavery forever.

Nothing beats gold though, which has absolutely no risk whatsoever and fulfills all the requirements for being actual money.  Using each thing for what it's best at might be a compromise.  The main issue is to end the monopoly the elite and their "governments" have on who defines money, and who gets to print it.  They couldn't take the competition and the theft-by-fiat would stop, followed by the imminent collapse of faith in concept of authority that is so sorely needed.

Thu, 11/19/2015 - 02:37 | 6812265 RaceToTheBottom
RaceToTheBottom's picture

Also separation of the paper and real gold is needed.

Wed, 11/18/2015 - 17:02 | 6810602 arbwhore
arbwhore's picture

Bitcoin will die when GoldCore becomes BitCore.

Wed, 11/18/2015 - 14:41 | 6809872 teslaberry
teslaberry's picture

you know it would be nice to know how much money goldcore pays zerohedge to post these articles, but i bet it's more than 3k.

Wed, 11/18/2015 - 15:54 | 6810204 SILVERGEDDON
SILVERGEDDON's picture

Coinhead in 5.......4...........3..........2............1...........

Buh teh bitcoin !

Buh teh magic skittle shitting unicorn fart fairy dust WTF over - currency, sheeples.

Anyone buying into volatility redux fantasy currency deserves to get the zipper of life run up hard against their dick of financial risk.

Wed, 11/18/2015 - 16:21 | 6810246 crazytechnician
crazytechnician's picture

Gee you sound pissed. A bunch of flat earthers were saying similar stuff on here when it was 5 bucks. Metals have dropped around 35% since then , good luck to anybody taking your advice seriously.

Wed, 11/18/2015 - 16:43 | 6810465 coinhead
coinhead's picture

He is pissed because Bitcoin STILL is not dead (as these fucking retarded, mental midget, SCUMBAGS) predicted back in 2011!

Wed, 11/18/2015 - 17:24 | 6810723 oddjob
oddjob's picture

Wrong, nobody cared then and nobody cares now. But, its cute that you have an insecurity complex for something you claim to be the exact opposite.

Wed, 11/18/2015 - 17:28 | 6810744 crazytechnician
crazytechnician's picture

If you don't care then why the fuck are you commenting ?

Wed, 11/18/2015 - 20:15 | 6811440 oddjob
oddjob's picture

Why the fuck are you so obsessed with Gold?...all you fucking talk about is Gold and why you hate it.......move the fuck on. Gold represents a tiny fraction of what you consider money and yet you consistantly refer too it?...see a problem here?  The Andrew Dice Clay attitude only makes whatever your operation is selling only more unattractive.

I have invested in a publicly traded blockchain tech co. and expect to profit from it.

Thu, 11/19/2015 - 03:49 | 6812323 crazytechnician
crazytechnician's picture

Obsessed  with gold ? You are referring to the wrong person my friend. From the posts I read on here at least 90% of the posters are getting off on a huge golden dildo rammed up their ass when they are not diving to the bottom of some random lake in search of it.

Wed, 11/18/2015 - 22:55 | 6811919 Alea Iactaest
Alea Iactaest's picture

Must. Denigrate. Gold.

The storyline for the phoneheads: BitCoin is encrypted, BitCoin is secure, BitCoin is your way of sticking it to The Man, BitCoin will prevail, BitCoin is better than Gold (so buy BitCoin not Gold).

I understand that every dollar NOT invested in Gold is a "win" for the TBTF... which is what makes the whole push for BitCoin appear so desparate. Kind of funny, if it wasn't setting up some decent people to be bag holders.

Wed, 11/18/2015 - 17:20 | 6810705 crazytechnician
crazytechnician's picture

They are not scumbags , being mentally retarded is a handicap , you need to explain bitcoin sloooowly to them , be kind , they will either get it in the end or simply be the among the last to capitulate to the blockchain.

Wed, 11/18/2015 - 17:32 | 6810761 coinhead
coinhead's picture

Bitcoin is teh average Joe's shadow banking system.  Now if a person can't figure out why a borderless, stateless currency *could possibly* be a very good thing, we can't help them!

Wed, 11/18/2015 - 22:44 | 6811870 Wow72
Wow72's picture

I felt violated when I signed up for my account.  They require more information than anything Ive ever signed up for.  I hate that about it, its far from anonymous, this is not cash, nor is it gold.  I did get some because I had some money I didnt mind losing.

How would any "bad" person be able to sign up for this? They wouldnt have most of the identification needed to even sign up??  What your saying is really B.S. anything electronic can be traced?

Wed, 11/18/2015 - 23:39 | 6812021 coinhead
coinhead's picture

We agree that alot of exchanges are over teh top when it comes to personal data and information.  That is part of teh reason that teh we is such a big fan of https://localbitcoins.com where you can meet up with radicalized Bitcoiners in your neigborh00d and buh Bitcoins for cash!

Wed, 11/18/2015 - 22:52 | 6811908 Alea Iactaest
Alea Iactaest's picture

BitCoin = Shadow Banking

 

Good one! Hahahaha

Wed, 11/18/2015 - 16:39 | 6810436 SILVERGEDDON
SILVERGEDDON's picture

Excuse me - you must take me for some one who gives a fuck, and has a time line as short as the pants his mommie made him wear.

Gold was $28.00 an ounce when I was a kid.

Bitcoin was worth a pinch of coon shit thrown into a stiff breeze.

if you suggested folks buy it then, you woulda got nut punched so fucking hard you would be singing soprano through your scrotum for the rest of your life.

Fast forward to today. Gold continues to edge up in one direction only - relative to any form of fiscal measurement you care to use - relative to it's price when it WAS fiat currency's reason for existence.

I see no change in that value curve any time soon.

Bitcoin volatility has taken it from five bucks to fifteen hundred or so back to a few hundred in wild swings of volatility that reasonable folks cannot countenance as a store of value.

So, if you wanna dance with the devil, or use it to pay for some plastic shit from China, fill your boots.

Paypal does the same, with no volatility risk, and instant payment to the vendor, with recourse on behalf of the purchaser if the deal goes sideways for any reason.

For face to face exchange, a silver American Eagle tube of coins, or a twenty dollar U.S. gold piece will get your deal done long before anyone is gonna dig out their digital wallet for you to puke some crypto currency into.

I don't believe in multi flavored religions, the police, honest politicians, the IRS, or bitcoin.

And, I don't care too much for cheerleaders from any of the above.

So, shove that up your ass and rotate on it.

Wed, 11/18/2015 - 17:26 | 6810668 crazytechnician
crazytechnician's picture

For somebody who supposedly don't give a fuck you sure do mouth off some ignorant drivel.  Hater's gonna hate I suppose .. But still surprised somebody of your vintage is so full of rage. It can't be healthy .. Have you tried meditation ?

Wed, 11/18/2015 - 16:41 | 6810454 coinhead
coinhead's picture

Your brain is a steaming pile of SHIT!!

Wed, 11/18/2015 - 20:45 | 6811526 logicalman
logicalman's picture

How could anyone disagree with such a carefully thought out response?

 

Wed, 11/18/2015 - 18:43 | 6811109 SILVERGEDDON
SILVERGEDDON's picture

Dudes, I got no rage, just contempt for you two Shitcoin moral equivalents of Goldman Sachs employees - saviors of hipster's savings - riiggghhht.

Pimping champagne and caviar dreams to young phone heads who don't know any better than to let you help fleece them with The Next Big Thing.

Age taught me one thing - 5000 years of monetary metals history surviving EVERY form of fiat currency mankind has ever come up with in stable recognizable trade-able form is way cooler than your Shitcoin wallet will ever be.

Wed, 11/18/2015 - 22:51 | 6811905 Alea Iactaest
Alea Iactaest's picture

Wait, BIS has BitCoin on the balance sheet, right?

Wed, 11/18/2015 - 14:40 | 6809871 Robinson
Robinson's picture

Bitcoin is just a successful experiment of file sharing, a big kazaa file in internet where the accounting is recorded.  Thats all.  The transactions are not anonymous.  dont have a any intrinsic value like fiat money.

The new finantial system, need to work for everyone, not just for geek miners and big data.   The new system need to be real time, bitcoin is dead slow. The new system need a intrinsic value like gold, not just 101010 in a computer.  The new system need to be distributed worlwide, not just for incumbents.  the new financial system need to be supervised for any local goverment, not just one goverment. the new financial system need transparency and anonymity. sbmlibre.com

Wed, 11/18/2015 - 14:54 | 6809922 crazytechnician
crazytechnician's picture

Yeah , finnalee sombodey reely undustand bitCON. Me old granny sayis is a masiv ponzy scam dat was nvented by NSAY, it is pure FIAT monee , A tulipan bubl thats for scamers and teifs , easyly hack-ble an you cannot old it in yer hand so it muss be a faker , anybdy into bitCON is a moron !!!!!

Wed, 11/18/2015 - 15:28 | 6810085 LowerSlowerDela...
LowerSlowerDelaware_LSD's picture

Yep, Bitcoin - with NOTHING backing it (like gold/silver) - whomever bought into the ponzi scheme first gets the richest.  Back Bitcoin with gold then get back to me.

Wed, 11/18/2015 - 15:48 | 6810175 crazytechnician
crazytechnician's picture

Backing bitcoin with gold would give it counterparty risk. Asking what backs bitcoin is the same as asking what backs gold. A shovel.

Wed, 11/18/2015 - 20:41 | 6811513 logicalman
logicalman's picture

If things get really bad, a shovel will be massively preferable to a BitCoin.

The only thing you can be sure of is that one day, you won't care about all this madness.

Until then, you place your bets - hopefully based on rational thought and a decent amount of research - and hope you got it right.

 

Wed, 11/18/2015 - 15:51 | 6810187 LowerSlowerDela...
LowerSlowerDelaware_LSD's picture

Scarcity and the physical product itself back gold.  BitCoin - as far as I'm told - has scarcity.  But it has nothing else.

Wed, 11/18/2015 - 16:10 | 6810282 crazytechnician
crazytechnician's picture

Gold is not scarce in the crust of the earth. What is more scarce is the ability to drill it out of the ground. That requires a lot of energy , tools and time. Gold is ultimately backed by energy. exact same with bitcoin. Except bitcoin has several features which make it outperform gold as a form of money. If you throw more energy at bitcoin , unlike gold you will not increase it's rate of production. And - unlike gold it can be sent anywhere on the planet instantly , at zero cost , with no storage , transport or security fees. It cannot be sold short because it uses an open ledger where reserves can be proved.

Wed, 11/18/2015 - 19:13 | 6810375 LowerSlowerDela...
LowerSlowerDelaware_LSD's picture

Yeah, gold is even less scarce if we count our universe and the next four closest universes.  All we have to do is get it. Easy, peasy...

 

(yesh...)

Wed, 11/18/2015 - 14:36 | 6809853 Lmo Mutton
Lmo Mutton's picture

"Bitcoin, while not susceptable to losses by this mechanism, still relies upon counterparties to perform."

This.

Wed, 11/18/2015 - 16:46 | 6810491 coinhead
coinhead's picture

Bitcoin is awesome.  You should buh some Bitcoin.

https://localbitcoins.com

Wed, 11/18/2015 - 23:17 | 6811980 palmereldritch
palmereldritch's picture

Downside: prolonged exposure may cause spelling palsy

Wed, 11/18/2015 - 14:34 | 6809846 Lmo Mutton
Lmo Mutton's picture

Has anybody ever held a bit coin?  Touched a bitcoin?

Wed, 11/18/2015 - 19:24 | 6811259 Baa baa
Baa baa's picture

Wait! You are talking about Bitchcoin...Different animal.

Wed, 11/18/2015 - 16:45 | 6810481 coinhead
coinhead's picture

Never touched a Bitcoin and couldn't care less.

Wed, 11/18/2015 - 14:55 | 6809928 MoonSun
MoonSun's picture

It is not a precious metal. Bitcoin is a precious number :-)

Wed, 11/18/2015 - 14:44 | 6809886 crazytechnician
crazytechnician's picture

Has anybody ever touched a google stock , berkshire hathaway stock or a government bond ? Naa, only things you can actually touch have any value.

Wed, 11/18/2015 - 14:33 | 6809833 lasvegaspersona
lasvegaspersona's picture

All the fuss is over what may be a superior medium of exchange. Those who embrace block chain technology actually recognize the convenience of fiat. It is instantly and securely tradable.

Neither fiat nor Bitcoin are suitable for store of value functions however. Fiat always decays due to the management of the banks. Bitcoin, while not susceptable to losses by this mechanism, still relies upon counterparties to perform. At this point in time there is only one store of value that is trusted world wide....gold.

I really don't care what I use in the future to buy BigMacs or Porsches. When my grandkids open the safe after I die I'd prefer they found something that will make them smile and remember ole gramps was clever. Store of value and medium of exchange are the most important functions of money. For ages it has been assumed that anything called money had to do all the functions of money. Newer thinking has determined that our use of money is far better served if we use fiat for exchange and physical gold for store of value.

The Euro is the world's newest big currency. It was designed to incorporate these new thoughts. The Euro's balance sheet holds 10,800 tons of gold on its Consolidated Financial Statement. The rest of its assets are treasuries (in dollars). If the dollar's value goes to zero, the Euro will be the only currency that still has anything of value on it's balance sheet.....think about that...(do think about that, if you don't you will be 100% right but headed 180 degrees off course).

Not a single gold 'expert'...not a single fucking one!! beside Fofoa has even discussed this function of gold and it's implications. Not one has even raised objections to his analysis. I think it is because they are not aware as they are stuck in all the old paradigms about gold and money....don't get lost with them.

Hold physical gold now and more as your understanding grows.

Bitcoin sppeculation is crazy. A medium of exchange should be stable yet much of the Bitcoin trade seems to be because of its volatility. Just be careful. Have fun with trading but get a better view of the future with the majority your savings.

Thu, 11/19/2015 - 01:34 | 6812200 certified for silver
certified for silver's picture

 I'm assuming you've invested considerable time combing through the writing of ANOTHER and his friend :D ... IMHO One of the most notable things ANOTHER said was that "If you didn't like this monetary system, your really going to hate the next one..." I've always had the suspicion that the reason we haven't seen free gold happen was because "the next monetary system" they refer to wasn't ready yet. The euro as it was in the 90's and doubly so today may not have placed the rebalanced wealth, due to freeing gold, in the 'right hands' when the paper fire takes all. As far as i am aware the Euro as the catalyst for free gold was the only bit of speculation contained in FOFOA analysis of ANOTHER'S and FOA's writings. Every other aspect of the grand induction of free gold was written about as knowledge! (Which time is still proving ;)... Enter crypto currency and it's centrally planned spin offs??? That's my guess

Wed, 11/18/2015 - 18:10 | 6810992 PoasterToaster
PoasterToaster's picture

"Money" must meet all the points of the definition or it isn't money.  That should not be corrupted or we end up with the theft we have now.

That's not to say that a "token" currency system that is not under the control of anyone wouldn't be a good thing.

Wed, 11/18/2015 - 15:55 | 6810207 herkomilchen
herkomilchen's picture

Bitcoin is fine for store of value.  All money relies on counterparty performance, gold included.  All money requires agreement to use it from all traders trading with it.

Bitcoin speculation is no different than gold speculation.  Just because gold price fluctuations, you don't spurn it and insist it be stable to be a credible money.

Wed, 11/18/2015 - 20:37 | 6811500 logicalman
logicalman's picture

You don't seem to understand the difference between money and currency.

 

Wed, 11/18/2015 - 18:11 | 6810996 PoasterToaster
PoasterToaster's picture

Gold does not rely on counterparty performance, it is universally accepted as true money.  It is unique in this feature.

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