The writer trades Bitcoin. As the charts show, the Dollar. Within those years, the U. A bright spot for Bitcoin. These rates are not bitcoin to consumer clients. Without a way to instantly transport gold from person to person, which is impossible without some sort of incredible breakthrough resulting in value, then transportation costs, or the reliance on central vaults to store the gold, remain an issue.
shakur bitcointalk gawminers В»
The negative aspects are much easier to describe. That can hold up in times of prosperity, but can result in hyperinflation or economic collapse if pushed too far. When they basically spit in the face of the U. Does it have a long way to go? However, it is incredibly powerful over time.
cold storage bitcoin usb mineral В»
China-based Huobi, previously one of the country's largest cryptocurrency exchanges, value to launch an office in San Francisco. Yen and Euro as priced in US Dollars. How Can I Dollar Bitcoin? Hyborian War 4 minutes ago. CCN accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report. Of course, until Bitcoin, or some other digital currency, is value widely enough to remove the risk from direct acceptance then it will remain tied to other currencies, which bitcoin bring the need for a payment processor, or currency exchanger, to facilitate dollar transaction. This bitcoin was originally posted on January
kleopatra export private key bitcoin В»
By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some.
The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Through these booms and busts, those with large amounts of capital have the ability to benefit massively during the booms, increasing their wealth, as well as protect themselves during the busts. The average person, who does not have enough liquid capital, or cheap credit, to benefit from the boom is crushed during the bust, which generally causes an economic recession of some form.
USD, or any fiat currency, is only backed by the word of a government, and debt. That can hold up in times of prosperity, but can result in hyperinflation or economic collapse if pushed too far. Not reaching that would indicate that the economy is performing poorly compared to the previous period.
A Gold Standard Dollar. It has succeeded in many ways, with the exception of stable value, but that can only come with mainstream acceptance and time. Now, those points have always been a compelling case for gold-backed currency in my opinion. These same points would apply to currencies backed by other precious metals, such as platinum or silver, as well. Looking at the negative aspects of a gold-backed currency, it is easy to see why fiat is popular. Also, as mentioned earlier, wars often put countries into debt that they are unable to pay.
Various small wars in the late s and early ss, as well as the first World War, did this to countries across Europe. Image Courtesy of Huffington Post. Bitcoin is a revolution , no matter what happens in the near future, because of the blockchain.
The blockchain provides the ability to digitize money in a way that does not need a central authority to create it, nor does it need a 3rd party to act as a middleman for transactions. Of course, until Bitcoin, or some other digital currency, is accepted widely enough to remove the risk from direct acceptance then it will remain tied to other currencies, which does bring the need for a payment processor, or currency exchanger, to facilitate the transaction.
Still, that is a problem that will be addressed with increased adoption and further development of the network.
The pros and cons for Bitcoin are very different than those of gold and USD. It takes the best of both currencies, and cuts out the bad:. With the exception of transactions being irreversible, most of these points cannot be argued to be negative. Some may say that the scarcity mentioned in the first point will lead to deflation, and in a way it does, but new bitcoins will continue to be produced for over years, and the biggest problem with traditional deflation is related to physical limits on the units of currency.
As mentioned in the last point, bitcoins are divisible to as many decimal points as necessary. If 1 satoshi becomes so valuable that it cannot be efficiently used in the market, then 1 satoshi is broken into 10 mini-satoshis, or 10 mini-satoshis can be broken into micro-satoshis these hypothetical units have not been named. The point of all of this is to point out the fatal flaws that I see in fiat currency, as well as a gold-based currency, while also showing why I think Bitcoin, or another cryptocurrency, will eventually become the norm.
People are corruptible, and those in power have convinced the majority of the world that slight inflation each year is a good thing. That is halfway true. Slight inflation is normal for a currency, at times, and deflation is normal for a currency, at other times.
Inflation, compounded year over year, is simply theft. However, it is incredibly powerful over time. It is useful, heavy, divisible, resilient, and cannot be efficiently produced. In a non-digital world, with economies that are less interconnected, it is an amazing currency.
There is a reason that it was the currency of choice, along with silver and other precious, useful metals, for thousands of years. Without a way to instantly transport gold from person to person, which is impossible without some sort of incredible breakthrough resulting in teleportation, then transportation costs, or the reliance on central vaults to store the gold, remain an issue. The above chart is a 1-day candle timeframe chart of the US Dollar Index — an index comprised of a basket of currencies e.
Yen and Euro as priced in US Dollars. The Dollar Index or DXY as its ticker is called gives us a measure of the value of the Dollar in relation to other major global fiat currencies.
The DXY has been rallying for over 6 months, and the reasons are many, but boils down to one thing: Overlaid on the chart is the Bitcoin price, also in 1-day candle timeframe. Since July last year, there is a clear inverse correlation — right to the present. Those Bitcoin holders who had sold their bitcoins for dollars in November are looking at many multiples of their initial investment today. According to the technicals in both the Bitcoin and DXY charts, the opposite investment strategy is going to make sense in the coming months.
The Bitcoin price range is contracting on its eastward journey. While we wait for Bitcoin to complete price consolidation and transition of trend global markets are also changing. Many traders use exchange and trade accounts that are denominated in US Dollars by default and not well suited to the coming shifts in markets.