Post
Topic
Board Economics
Re: Would people pour their cash into bitcoin given a stock market crash?
by
GigaBit
on 12/06/2014, 11:28:01 UTC
I'm a Gold miner and dealer, I came to Bitcoin, why?

Go back to November 2013 - The SCARE of a US Government shutdown is what was the main catalyst in that price rise.  There's actually some hedge funds that work on the same level as Gold and many IRA sellers now offer Bitcoin to their client's portfolio.  The death of the USD will affect the USA first and foremost.  The Chinese Yuan or Euro which will likely replace the USD as world reserve is also one of the currencies most traded in Bitcoin; this means that if the USD loses its status, Bitcoin will use the next world reserve to price itself and related assets.

I sell gold and Bitcoin is more wanted than Gold because it can't be seized and large amounts can easily be hidden.  One ton of gold is about 14 inches cubed but weighs about 1 ton (2,000 LBS).  Yeah, try dragging that around with you.  Even if Gold is a physical store of value, it's not efficient if you keep it at home because Gold is VERY heavy, one of the heaviest elements on the table (19.2x heavier than water).  Even that ton is a mere $40M...  Not necessarily a whole lot of money today.  You can hide that same amount of money in your shoe on a SD card with bitcoin if you want.

During the $1,000 times people were flocking to Bitcoin because it was more readily available than anything else.  Gold requires shipping and in times like those, vaults run dry quickly.  During that same time, Gold was losing in value, Gold went up and went back down as fast as the government re-opened its doors but Bitcoin remained high until the Gox incident.

I own little Gold anymore (I have a claim anyways) other than a few nice nuggets but everything else I have is in Bitcoin.  I know it will be easier to sell Bitcoin than it will be to sell gold; Bitcoin doesn't require shipping and is traded within an hour.  When the Dollar dies, it will mean the big break for bitcoin because it will be the only readily available form of value transfer.  There is too many "virtual" gold that if everyone cashed out at once, there would be a crash in the price of Gold itself... because if your gold is in a vault that won't ship it to you or you need to wait months, it's not worth anything.

There's a saying in Gold mining: If your Gold isn't in your pocket, your Gold is worthless.

The world isn't going to end when the dollar dies.  People will find the most accessible way to exchange money.  Bitcoin will be that readily available source of exchange because Gold reserves will be dry within an hour, cash withdrawals will either come to a halt or be shutdown.

What's you're looking at is a much harder to digest Cyprus, mostly for Americans who live the USD because most of the world no longer uses the USD to trade....  Pretty much, it's gonna suck for you if you live breath and sleep the USD and are unprepared.  I'd be willing to bet the rest of the world will barely break a sweat.  Most of the ASD death fear out there is driven from large Gold dealers.  America is heading for a re-birth --> #Kondratiev Wave

Save your coin!

PS: During the last US governmental Gold confiscation, it wasn't even forced, only a few schmucks willingly surrendered their gold.  For those who want to make sure, coins minted prior to 1933 cannot be confiscated but tyrants don't follow the rules to begin with.