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My fear is as the realisation dawns on the bigger players that Bitcoin is 'the one' that it will be pumped by banks and central banks who can magic large sums of fiat into existence with which to buy bitcoin (and who may even dump gold temporarily), creating the ultimate bitcoin megabubble so that billions of latecomer ordinary people and businesses buying their first bitcoins will be shafted as the great bitcoin dump starts, into pms, into land, artwork etc. into a 'better' crypto - assets that had been neglected for the period bitcoin was so attractive, even back into fiat (they could use this point to launch more 'stable' 'new crypto-dollar or new crypto-pound etc.) until bitcoin finds a stable long-term pricepoint well below (even orders of magnitude below) the hyped price the masses bought at. Problem is of course nobody beforehand can know what this price will be. We would still be in a much better world than today because with bitcoin established fiats (old or new) will not be that attractive but if central banks are deliberately hyperinflating forcing people into crypto on their pump stage people could end up with 1000th of what they had before.
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My fear is as the realisation dawns on the bigger players that Bitcoin is 'the one' that it will be pumped by banks and central banks who can magic large sums of fiat into existence with which to buy bitcoin (and who may even dump gold temporarily), creating the ultimate bitcoin megabubble so that billions of latecomer ordinary people and businesses buying their first bitcoins will be shafted as the great bitcoin dump starts, into pms, into land, artwork etc. into a 'better' crypto - assets that had been neglected for the period bitcoin was so attractive, even back into fiat (they could use this point to launch more 'stable' 'new crypto-dollar or new crypto-pound etc.) until bitcoin finds a stable long-term pricepoint well below (even orders of magnitude below) the hyped price the masses bought at. Problem is of course nobody beforehand can know what this price will be. We would still be in a much better world than today because with bitcoin established fiats (old or new) will not be that attractive but if central banks are deliberately hyperinflating forcing people into crypto on their pump stage people could end up with 1000th of what they had before.
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Extrapoloting...
In the same way that morpheus tells neo that he won't have to cash out at BTC $10000 (or whatever). Neither will the big guys have to. I think when if the time comes that BTC is inherently worth that much its too late to worry about buying or selling it (from a speculative investment POV) its more about how much you have (how much you got when the getting was good). So I don't think there will be a final crash, I think this line of reasoning justifies the 'exponential pulse' pattern we see now. The value that fiat represents (if its going to) won't smoothly migrate from fiat into BTC. If its going to it would likely follow this pattern as people get in cheap and then take profits. All the profit takers do is delay the inevitable, the transfer of wealth continues, and gets ahead of itself. When I saw it the first time, it seemed like a bubble that burst. The second time I thought wow, it did it again, the third time I thought, this is ridiculous, this kind of repeated behaviour is entirely without justification and absolutely will not continue.
And yet here we are all wondering whether this is the next one. Many here will be as cynical as I. Pah we;ve seen it all before, like anyone is going to get suckered into this silly pump/dump cycle again. (Just like we thought last time?)
How many millions of people out there are still entirely oblivious to all of this and ready to fuel this go-round?
What about the next one?
Is this really 'institutional investors' stage?
Strange times.
If the big banks and central banks realise bitcoin is going to happen whether they like it or not;
If some of the world's wealthiest are beginning to put serious money into bitcoin both increasing its value and devaluing the fiat they're taking it out of;
If they are realising that it's game over for the fiat game as has been played for the best part of the last 100 years;
If they know they currently, but if they're not careful temporarily, have more buying power than anybody else;
...why they would not deliberately pump, forcing everybody out of fiat only to then diversify into pms and other assets at the top, deliberately dumping bitcoin to promote their new fiat currencies? It will be their last chance to keep as much of their advantage (in terms of relative wealth) because the days of 'magicing' money into existence will be over.
Thinks will end up getting complex very very quickly.
Build your supernode on time. Sign up for the Malla conference in June 27-29.!
Been really busy Risto and not going to make it to Malla this time. Good to hear the development is going well
All the best with it. Look forward to hearing the reports.