Post
Topic
Board Speculation
Re: Tuur Demeester - Bicoin as an Investment
by
dtuur
on 31/05/2013, 18:02:35 UTC
My understanding towards your speech is that every time there is a bail-in action someplace in the world, the demand for bitcoin will soar and so as the bitcoin price. If another bail-in happens in some major western country (such as France), the bitcoin price may go to a level beyond our wildest imagination. Is that correct?

I think that wouldn't be an unreasonable expectation. Bitcoin has similar fundamental underpinnings as precious metals have: its qualities of liquidity, divisibility, ease of transport, ease of storage, and nonconfiscatability make it a near perfect safe haven asset in times of crisis.

Of course the bottleneck effects that we see whenever there's a surge in Bitcoin interest are still at play. Those will likely create temporary panics which then result in sell offs - such as the ones we've seen in 2011 and earlier this year. 

In other words, while every new bail-in will potentially function as an afterburner for price the price of Bitcoin, we can expect a rocky ride ahead. Volatility will be the name of the game for the foreseeable future - but long term I expect much higher prices.