The Bitcoin "Smile" - Cryptocurrencies Surge As Dollar Purchasing Power Plunges

Authored by Anthony Saunders via Snake Hole Lounge blog,

The Federal Reserve was created by an act of Congress in 1913 and a stroke of the pen by President Woodrow Wilson. And the purchasing power of US consumers has never been the same.

Enter Bitcoin, the worldwide cryptocurrency and digital payment system. Currently, one  Bitcoin equals $4,423.

While this looks like a volatility smile, it is not. It does show the erosion of the purchasing power of the US Dollar and the rise of an alternative currency: the  cryptodollar.

In a remarkably frank talk at a Bank of England conference, the Managing Director of the International Monetary Fund,  Christine Lagarde, speculated that Bitcoin and cryptocurrency have as much of a future as the Internet itself.

It could displace central banks, conventional banking, and challenge the monopoly of national monies.

This the polite version of Dennis Hopper’s preference for Pabst Blue Ribbon beer.

Hey, although he signed The Federal Reserve into existence, at least he could pitch!

1370357173woodrowwilson

Comments

overbet LawsofPhysics Mon, 10/02/2017 - 15:50 Permalink

http://www.zerohedge.com/news/2017-09-30/meanwhile-bitcoin-soars-40-pos…  tmosley  overbet Sep 30, 2017 2:40 PMOne BTC sold for $4340.    UPDATE:  4407.25 3.4 ounces of gold bought at @1280.   UPDATE: $1,277.10 So which will be worth more a day, a week, a month, a year, and a decade from now? Place your bets right here, ladies and gentlemen!  Losing on both sides of this paper trade so far. 

In reply to by LawsofPhysics

Ramesees gaoptimize Mon, 10/02/2017 - 15:47 Permalink

Dude, if you think there’s a scenario in which the power grid for the entire world is destroyed (it must be the whole world, because otherwise the Russians and Chinese will just send their troops to occupy us and will restore power when they are ready) and anything but bullets and guns have value, you’re not analyzing TEOTWAWKI correctly.

In reply to by gaoptimize

NugginFuts Mon, 10/02/2017 - 15:12 Permalink

So when do I start getting paid in Bitcoin and paying taxes in Bitcoin? Or is it just useful for everything else in life? Like avoiding taxes and not having to work?

LightsOut Mon, 10/02/2017 - 15:13 Permalink

Bitcoin needs to solve the broader purchasing process before this becomes a fair comparison of purchasing power.  Love those cryptos though.

adr Mon, 10/02/2017 - 15:14 Permalink

There have been some bullshit charts, but that sir tops them all.How about a chart of AMZN over the dollar or any of the other ponzi stocks.You have 100 years in the first 3rd of the chart. Bitcoin has only existed since 2009 and in that chart should only be overlaid over the last eight of the chart, or would that show the parabolic insanity of Bitcoin too much.

Hamm Jamm Mon, 10/02/2017 - 15:15 Permalink

Track-coin is so awesome !  if you don't have some, you are the enemy !Join the idiot masses and turn your money into thin air Its for you own good !

buzzsaw99 Mon, 10/02/2017 - 15:17 Permalink

It's easy to grin, When your Bit comes in, And you've got the stock market beat. But the man worthwhile, Is the man who can smile, When his shorts are too tight in the seat. [/Judge Smails]

LawsofPhysics Mon, 10/02/2017 - 15:22 Permalink

More evidence of the real inflationary cost of creating hundreds of trillions in paper/digital claims, nothing more.Going to be fun when all those claims (bitcoins or otherwise) start seeking out real assets that simply don't exist, or that people refuse to sell...