Gold people coming out of the woodwork against bitcoin heh:
http://i.imgur.com/uo87xY4.png Both Rickards and Schiff are actually correct, they just don't know why and don't know enough about bitcoin to articulate it, but this is why
The fact is, bitcoin does NOT function as a store of value, period. The way bitcoin is designed pigeonholes it into acting as a settlement layer, and what is the #1 attribute needed for being a settlement layer? ...being a store of value. This makes it kind of inherently designed to fail at what it's supposed to do because bitcoin does not exist in a vacuum, it has to compete against the noble metals. The noble metals are orders of magnitude better in anti-fragility, store of value, and even decentralization than bitcoin is.
As I said before:
A settlement layer has to compete with or beat gold as a store of value. Bitcoin cannot accomplish that task so it has to do something else besides being a settlement layer or there is no point!
This means bitcoin's value has to be floated by raw transaction flow instead of people hoarding it for no reason as a store of value. It is my estimate that you would need something like 5000 TPS in order for bitcoin to function as a raw transaction handler instead of a store of value. And the following post explains why bitcoin isn't a store of value in the first place:
https://steemit.com/bitcoin/@r0achtheunsavory/the-r0ach-report-vol-7-bitcoin-is-not-an-actual-store-of-value-because-there-is-no-real-price-floor-or-inelastic-demand*Disclaimer: I am not bearish on the price of bitcoin in the short term, just that once it's market cap has topped out, everyone is going to convert the profits straight to the base of Exter's pyramid (gold and silver) due to being more anti-fragile and a better store of value.
Hey lmk when ur going to exter's pyramid again. Id love to meet up with u and have a chat there as I need to pick up some gold and silver myself!
