Post
Topic
Board Bitcoin Discussion
Re: So... I just spent all my paper IOU notes. My life's savings!
by
mysidia
on 05/03/2014, 00:14:01 UTC
You should've waited on the gold and checked the COT open interest. The large commercials are maxxing out their humongous short positions right now. They are gonna drive gold into the ground shortly. The good news is that after this next smash, gold is going parabolic.

If that's what you think the outcome will be;  it still could make sense to buy some gold now,  and double down later.   After all, the commercials might be in for a short squeeze early if the s*** hits the fan.

Quote from: kik1977
Just curious, I would you pay for your daily expenses? In your area, are you able to buy everything you need with bitcoins?

You probably can't use gold or BTC or real estate to pay for your every day needs,  but  nobody says you HAVE to use fiat as your value storage  ----  it's just that  BTC or gold is a higher-risk for value storage,  when your needs are denominated in fiat.

You can pledge the asset in exchange for fiat-denominated debt.  Or just use unsecured short-term debt,  such as a credit card  settled up in full every month, so you are not making an interest payment.

In case currency loses value;  the value of interest paid also goes down, and an increase in value of whatever asset you hold your value in:  can wipe out the cost of interest you had to pay.

If you are 100%  confident of a parabolic increase in BTC and gold price above today's value soon enough;   it could make sense to take  out short-term fiat loans,  or just use a credit card in order to pay for day to day liquidity needs  in local currency.   Then  settle out the  payments by  reducing how much gold you are buying  -- if you have a fiat denominated income,    convert the fiat you didn't spend that month  minus emergency reserve to your chosen  "value storage" assets.

If parobolic price increase in gold does NOT materialize, or gets delayed, then you have a potentially catastrophic loss, however.