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The Musk chapter simply accentuates a major weakness of bitcoin. And that is a single buyer significantly affecting its value.
Good point. Also, as anyone who follow currencies knows, even national currencies have a tendency to become quite volatile, even with a central bank and the full faith and credit of a national government behind them.
Bitcoin is still a speculative financial instrument for gamblers. It may not feel like to some people right now because it's value is currently very high. But if and when it tanks, yet again, people will be reminded of this fact.
However, if interest rates go negative in the financial markets and at banks, this would be a way to maintain the value of your cash money, without needing to possess physical currency.
HOW ?????????????
There are still convertibility issues with the Yuan that this will not resolve. Their currency is still not close to being a viable alternative for a world reserve currency to replace the dollar.
This is an interesting move, but unless they either take over the entire world's financial system, which would allow them to mandate the use of the Yuan for everyone, or if they liberalize their economy and their society in a shockingly unexpected manner, the Chinese are going to continue to be no better than a second tier player in this realm, and not one of the stronger ones of those.
The Russians Central Bank has sold all their US treasuries and bot Chinese ones instead.
Give China more time,
However, if interest rates go negative in the financial markets and at banks, this would be a way to maintain the value of your cash money, without needing to possess physical currency.
HOW ?????????????
If you have money deposited in the bank, with a negative interest rate, the value of your account depreciates by the amount of your interest payment. They have been doing this in Europe in some places. Obviously, that's not a desireably situation.
If you have a currency which is legal tender for you, such as the US dollar is here in the US, whether it be physical currency (paper and coins), or digital currency (no such thing today, but stay tuned), then you can store your currency (physical or digital) wherever you like and it will continue to maintain a value of a dollar per dollar.
In times of rapid inflation, paper money loses value quickly and can become effectively worthless. In times of steady deflation, paper currency increases in purchasing power as prices fall. So if we head into a clear deflationary period, people will want to have their money in currency, rather than storing it in a bank with a negative interest rate.
The Musk chapter simply accentuates a major weakness of bitcoin. And that is a single buyer significantly affecting its value.
Bitcoin price didn’t skyrocket that much after he bought and won’t fall that much if he sells it all. It fluctuates maybe 5-10 k at the most now. Investors all over the country are making an impact. Their clients want in on crypto. I’m a believer in the safety of it as compared to our dollar’s bleak future. I doubt we’ll see 40k again for bitcoin. There are limited coins to mine and that adds value too.
I personally know a few people who’ve made now past $1 million, who started with 2k investment.
All MO on bitcoin of course!
Bitcoin price didn’t skyrocket that much after he bought and won’t fall that much if he sells it all. It fluctuates maybe 5-10 k at the most now. Investors all over the country are making an impact. Their clients want in on crypto. I’m a believer in the safety of it as compared to our dollar’s bleak future. I doubt we’ll see 40k again for bitcoin. There are limited coins to mine and that adds value too.
I personally know a few people who’ve made now past $1 million, who started with 2k investment.
All MO on bitcoin of course!
IMO Bitcoin is essentially a risky commodity investment. Like some rare natural resource or collectible.
But that resource is not necessary, like most collectibles. And takes an inordinate amount of energy to produce. And like a rare but unnecessary collectible, what happens if the world no longer wants to collect?
Or all of a sudden mass quantities of similar collectibles somehow show up?
Almost everyone in the world today does not want or need to collect Bitcoin, but all want and need money.
Bitcoin is a niche product, and lacks much of what some call 'moneyness'.
And after all this, the future of Bitcoin vs the state is another risk and unknown. A modern nation needs its sovereign currency, and significant competition might have to be squashed.
IMO Bitcoin is essentially a risky commodity investment. Like some rare natural resource or collectible.
But that resource is not necessary, like most collectibles. And takes an inordinate amount of energy to produce. And like a rare but unnecessary collectible, what happens if the world no longer wants to collect?
Or all of a sudden mass quantities of similar collectibles somehow show up?
Almost everyone in the world today does not want or need to collect Bitcoin, but all want and need money.
Bitcoin is a niche product, and lacks much of what some call 'moneyness'.
And after all this, the future of Bitcoin vs the state is another risk and unknown. A modern nation needs its sovereign currency, and significant competition might have to be squashed.
The globalist establishment elites are not going to allow these independent currencies to undermine their totalitarian efforts. At some point, Bitcoin will be squashed.
Bitcoin is based on blockchain for its safety and self-sufficiency. Bitcoin specifically avoids any governmental control.
A digital Yuan uses blockchain as a means of governmental control.
Not necessarily...
I read about some DEA drug busts, where they set up fake online drug sales/buys, and the criminal will pay for the drugs in Bitcoins...Govt then seizes the bitcoins and adds the charge of conspiring to send narcotics thru the postal service...it said DEA had around $20M in Bitcoin from these stings!
I will leave here with these two articles. I’m a cheerleader for bitcoin so am biased. Just like everything in life, people have different opinions.
Morgan Stanley’s chief global strategist says that “regardless of where the price of bitcoin goes next, cryptocurrencies are here to stay as a serious asset class.” He added that bitcoin is making progress towards replacing the dollar as a medium of exchange.
And then there’s the fact that that bitcoin network consumes much less electricity than existing fiat systems, which have enormous and far less efficiently used electricity requirements to power their banking infrastructure, not to mention associated political and military activities. Don’t get me started on government waste.
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