Bitcoin Will Devour Gold, Says MicroStrategy CEO

Discussion in 'Economics & Trade' started by scarlet witch, Nov 10, 2020.

  1. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    I'm a big fan of Bitcoin and have threatened to start a Bitcoin thread for some time now... also a big Michael Sailor fan, he did a fantastic interview with Raoul Pal where he walks you through his thought process when he found out he was sitting on a $450 million melting ice cube (cash devaluing at minimum 6% pa) and had to find an asset to invest in. It's a 2 hour interview but well worth it


     
    Last edited: Nov 10, 2020
  2. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    Raoul Pal calls Bitcoin a black hole that will suck everything in & Michael sailor calls Bitcoin a Dragon that will eat the Kingdom of Gold when it emerges from its lair (absolutely love both these statements)

    Now I am just an ordinary person with not even remotely as much money as these two people, but this makes Bitcoin even more important for me than for them.

    The biggest reasons for "the ordinary person" to invest in Bitcoin are;

    1. Bitcoin is the best performing asset in the world and have more potential than any other to boost your wealth... in other words the risk/reward ratio are higher...(more risk higher rewards)
    2. Bitcoin is now more stable than even Apple stock
    3. Almost all other assets are in a bubble
    4. Many countries (including Australia) have bail-in laws....which means the banks can keep any deposits if they fold.... we are in the midst of an economic collapse, the bail-in may be much closer than you think. I believe there is a vote at the end of November in Australia in favour of having this bail-in law changed (video below is for those who want to know about the bail-in Australia). If you sell your gold that money still goes back into a bank account.
    5. The innovative potential of Bitcoin, Gold can't earn you a yield, but Bitcoin can be borrowed and borrowed against and earn a higher yield than cash. It can quickly be liquidated into another currency without having to deposit funds into a bank (where bail in laws apply). Add limitless potential for new and innovative financial innovations and the world is your oyster.
    6. Bitcoin is also a way to move away from corrupt bankers who have caused more than a hundred years of war on our planet. Contributed to the highest inequality we have ever seen and millions of people suffering while living in poverty. Bitcoin is your vote for human peace and prosperity.

     
  3. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    I have to also add this... Conservatives are much cooler than Lefties, Leftie communists are pro banker stooges...they transfer their money on Saturday and have to wait till Tuesday for it to go through...even if it's only 50 bucks...while paying exorbitant fees.

    Bitcoin Demand Getting Stronger, Admits Ex-Australian Senator
    https://cryptopotato.com/bitcoin-demand-getting-stronger-admits-ex-australian-senator/
     
  4. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    We've had repeated threads about this before. I don't see why I should waste my time and effort explaining it again.

    But I will bring up two points:

    The size of Bitcoin is too large for convenient transactions.

    It does not really have any inherent value and is a pure fiat currency, since anyone else could create an infinite amount of other digital currencies.
    (And yes, a currency issued by government is not pure fiat, not going to waste my time again explaining this here)

    I really wonder why I should waste my time to write out a detailed answer, when I have done so before in other discussions and it's obvious no one read them.
     
    Last edited: Nov 10, 2020
  5. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    Well then why do you? Waste your time, posting in this thread is voluntary.

    I think what you mean is the hash rate is too slow, you wait 3-4 hours for transactions to be confirmed.
    a) that's a lot faster than banks
    b) you are not allowing for future innovation
    c) there is already Bitcoin wrapped in Ethereum or on the lightning network that allows for faster processing of transactions
    Ethereums Wrapped Bitcoin (wBTC) to Overtake Lightning Networks Value
    https://www.cryptoglobe.com/latest/...coin-wbtc-overtakes-lightning-networks-value/

    Incorrect, Bitcoin has a fixed supply, makes it very scarce and therefore valuable...the reason why it is referred to as Digital gold, fiat currencies do not. Fiat currencies are controlled by government, Bitcoin is on the blockchain under no one's control.
    Again why bother to post if you are wasting your time.... what you are doing is now wasting mine too.

    Many people who do not understand Bitcoin hold your views. The future of money is digital and personally I see Bitcoin not as a currency, although it can be used as such, I believe it's too valuable... you are better off holding it as its value will continue to grow at a very fast pace, then lending out and earning a yield. If you must sell use another wallet and transfer small amounts that can be converted into anything...fiat, stable coins or tokens...
     
    Last edited: Nov 10, 2020
  6. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    I'll just add another interesting point, one expert recently said he believed that because Bitcoin has limited supply it will affect the velocity of Bitcoin negatively. I disagree because again
    a) he is not allowing for innovation we are at the bottom of the DeFi (decentralised finance) curve, the space is going to explode
    b) lending and borrowing will keep the velocity/circulation going
     
  7. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    I've explained in other threads how I believe the whole monetary theory of velocity is flawed, and built on an ultimately illogical foundation.

    To say it another way, I believe this will be entirely irrelevant.
     
    Last edited: Nov 10, 2020
  8. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    I think you totally understood what I was talking about.

    Imagine dealing in a currency that was composed entirely of $15,000 bills.

    You can't pay for anything it Bitcoin that is in denominations smaller or different from that, or if you do you have to go through a special service, which sort of defeats the whole point of Bitcoin.

    I don't know why I'm wasting the time arguing here.
     
    Last edited: Nov 10, 2020
  9. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    There are 100 million Satoshi's in one Bitcoin...you can buy $10 of Bitcoin, it will be 0.00064 Bitcoin, but we refer to these as Satoshis
     
  10. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    You're kidding... you don't think money needs to circulate :lol: that's beyond ridiculous
     
  11. FatBack

    FatBack Well-Known Member

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    Feel free to donate all worthless gold to me. Such a heavy metal to be burdened with. :)
     
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  12. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    ok let's talk about shutting Bitcoin down

    Biden is a bankers man, if his fake presidency persist we will 100% see war, he will also try to cripple bitcoin with his climate change laws, he may even go as far as to ban it...Ray Dalio (a new world insider) also says so.

    Governments Will ‘Outlaw’ Bitcoin, Says Bridgewater's Ray Dalio
    https://decrypt.co/47940/government...ral&utm_campaign=feed&utm_source=trading-view

    Ripple's CEO agrees (Ripple both a platform and a currency is highly centralised - a pro banker crypto)
    Higher Compliance Costs for Bitcoin Holding Companies Under Biden Presidency, Ripple CEO Forecasts

    https://cryptopotato.com/higher-com...-under-biden-presidency-ripple-ceo-forecasts/

    Anyone who frequent this forum, will understand Geopolitics and if you ban something as valuable as Bitcoin, all your enemy needs to do is keep it going, which is not difficult considering you could shut down the worlds entire internet, and Bitcoin could still survive. (Details in this article
    Can Bitcoin Be Shutdown? Let’s See…
    https://themoneymongers.com/can-bitcoin-shutdown/ )

    Furthermore if you watched the OP interview with Michael Sailor he points out two very important things.

    1. The only asset that will protect your money over time is Bitcoin... he walks you through the math watch the vid.
    2. Bitcoin is to finance, what steel was to construction and Aluminium to aircraft. For example, he points to the height of wooden buildings (2 storeys), stone buildings (5 storeys) and steel buildings (sky scrapers).

    Bitcoin is the skyscraper of finance, the bankers & politicians who control the money supply WILL try to outlaw it, but in a world where millions have lost their jobs, and millions are staring hunger & poverty in the face while their currency value evaporate... even jail sentences is not enough to keep them from owning Bitcoin...because it is a life raft.

     
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  13. modernpaladin

    modernpaladin Well-Known Member Past Donor

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    I got nothing against bitcoin, other than I'm ignorant of its dynamics and its not going to work anymore if the world goes to enough **** (like no more reliable internet). Gold is simple and someone is always going to want it. Its not likely to make me rich, but it will go along way in keeping me from being destitute.
     
    Last edited: Nov 11, 2020
  14. joesnagg

    joesnagg Well-Known Member

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    I prefer my money in my hands, real as opposed to virtual.
     
  15. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    Gold & Silver is still better than cash, Sailor estimated that over a hundred year period you will lose 80% of your money in gold due to the 2% stock to flow ratio, however if you are holding it for 4 years until after the reset you will still be much better off than those holding cash.
     
    Last edited: Nov 11, 2020
  16. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    I know darl we all do, but the value of our money is now deteriorating as well as we are heading for negative interest rates... you need to protect yourself.
     
  17. joesnagg

    joesnagg Well-Known Member

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    Well, I operate under my own theories on that, i.e- you have some gold coins and/or Bitcoin, I have some cans of pork n' beans; the crapolla hits the proverbial fan, you eat your gold coins, I'll eat my pork n' beans. Odds are I'll end up with the gold coins anyway. Things are only as valuable as we wish them to be, which probably accounts for why the world's entire monetary system is still staggering along based on nothing at all. Dat's the way I see it.
     
  18. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    Antibiotics, batteries... anti-fragile items that you can trade for food, btw Bitcoin and gold are anti-fragile
     
  19. AGWisFAKEsillyBABYKILLERS

    AGWisFAKEsillyBABYKILLERS Well-Known Member

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    The thing is, you need to know what BTC is and how it works to even start understanding how ingenious and worldchanging the technology is..
    I imagine it would be easy to be against it if you had no idea why it is so incredibly sensational..

    Here is one fascet.. Bitcoin will be around in 10 years, 100 years, and 1,000 years..
    It will outlast every fiat currency on this humanly earth, just as gold has..
    It is the gold of the technological revolution..
    BTC is to "money" as the internet was to books..

    Try to send a billion $$ worth of gold across the world or even to a space station or someday mars.. You can't..
    Try to take any amount of gold with you in your head anywhere you want to go..
    Try to hide a fortune in gold an access it anywhere in the world..
    If the jews had BTC they could have beat hitler immediately..
    You just don't get it..

    It is the most powerful tool of liberty in history, second only to maybe the invention of the firearm.. Maybe.. We will see..


    Gold VS BTC?
    Everyone knows what gold is and how it works (other than most being ignorant of fake paper gold)..
    Maybe what? 2% of people even half understand what BTC is yet?

    BTC all day baby..
    $100,000-$350,000 BTC by the end of 2022..
    Yeah.. Bet you don't understand the repeating price history of BTC either..

    Do yourself a favor and do some research...
     
    Last edited: Nov 11, 2020
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  20. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    Can you buy $10 worth of Bitcoin without going through a private company? (I mean even theoretically)

    If you have to go through a company, it pretty much defeats the whole point of this type of digital currency.

    (The only reason for it then would be to help escape some of the effect of inflation)
     
    Last edited: Nov 11, 2020
  21. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    If you send me $10 I'll send you $10 of Bitcoin, is that private enough for you ;)
    you can also buy Bitcoin on Paypal..

    Besides why does exchanges bother you, it's not as if anyone is allowed to register as a bank ito currency anyway... why have one rule for Bitcoin and another for currency?
     
  22. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    banning Bitcoin is not only pointless but basically equating to banning the use of steel in buildings... means you'll be stuck with 5 levels max financial services while every country around the world move forward at a blistering pace.

    I think the future will have bitcoin as an asset, with many different currencies competing but not with Bitcoin. Bitcoin will be like a savings account, also Reserve asset, while other currencies are traded randomly. The best thing therefore to do is to make your currency as competitive as you possibly can, so likely many people will still convert to US$/'Tether (a stable coin tied to the US$) as the perception of the US$ as good currency will likely last for many years still. However people will gravitate towards the currency that can do summersaults and back flips :lol: sorry terrible analogy but what I'm essentially saying is that innovation and new development will be what people will gravitate towards.... just purely my opinion.
     
    Last edited: Nov 11, 2020
  23. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    That's not true either. Digital currencies that are like Bitcoin are not in any way necessary to economic success or competition.


    I don't mean to constantly disagree with you and be a pest, but I really think you should think about your statements and claims before you post them.
     
    Last edited: Nov 12, 2020
  24. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    It's my understanding that when you buy $10 of Bitcoin, you are not actually truly buying Bitcoin, at least not directly.

    Bitcoin is a unit of data. It doesn't come in $10. You don't actually get the data. You are paying a private company to hold on to the data for you.

    That's almost no different from ordinary online money payment services. (in some ways, but not others)
     
    Last edited: Nov 12, 2020
  25. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    Your understanding is incorrect, if you buy $10 of bitcoin you are buying 0.00064 bitcoin... actually less now since the price went up. The longer you hang on to your dollars the more expensive Bitcoin becomes.

    Here is a great article about bitcoins distribution and likely why you think transactions are settled in whole coins as this is what happened in the early days.

    From Bitcoin to Satoshis, how BTC’s distribution will only get better


    https://eng.ambcrypto.com/bitcoin-satoshis-distribution/

     

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