Who's Holding BTC?

[Murray]

Didn't take long for me to flip flop but in the short term I've completely lost my bullish sentiment

I've been watching/reading a lot about QE and I think I better understand how it works

The Federal reserve buys bonds from commercial banks but they don't give them dollars back, they put the currency in a fed controlled collateral account that the commercial bank can't withdraw from

The amount does go on the banks books though and that along with lower interest rates should increase their ability to loan more and with greater ease


Bonds are also sold at auction which sucks dollars out of circulation; the fed will buy those bonds back but again the value goes into a collateral account the bank can't withdraw from

So QE is actually deflationary not inflationary, the opposite of what people assume

QE is currently failing, loans aren't getting easier so they're going to have to drop interest rates even further - https://www.thisismoney.co.uk/money...-Credit-Crunch-II-Banks-set-pull-lending.html

"Britain faces Credit Crunch II: Banks warn loans will become harder to find and more expensive in the months ahead"

I'm expecting the dollar to have a resurgence in the very near future and I think we will see equities, commodities and cryptos sucked back because of it

If anything I've said here is factually incorrect then please correct me I'm far from an expert

 

[dee]

Didn't take long for me to flip flop but in the short term I've completely lost my bullish sentiment

I've been watching/reading a lot about QE and I think I better understand how it works

The Federal reserve buys bonds from commercial banks but they don't give them dollars back, they put the currency in a fed controlled collateral account that the commercial bank can't withdraw from

The amount does go on the banks books though and that along with lower interest rates should increase their ability to loan more and with greater ease


Bonds are also sold at auction which sucks dollars out of circulation; the fed will buy those bonds back but again the value goes into a collateral account the bank can't withdraw from

So QE is actually deflationary not inflationary, the opposite of what people assume

QE is currently failing, loans aren't getting easier so they're going to have to drop interest rates even further - https://www.thisismoney.co.uk/money...-Credit-Crunch-II-Banks-set-pull-lending.html

"Britain faces Credit Crunch II: Banks warn loans will become harder to find and more expensive in the months ahead"

I'm expecting the dollar to have a resurgence in the very near future and I think we will see equities, commodities and cryptos sucked back because of it

If anything I've said here is factually incorrect then please correct me I'm far from an expert

I think in a recession, no matter what money is automagically appearing, people on the whole don't want to spend and banks don't want to lend. QE is different to fiscal stimulus (which is essentially just printing money.) in that banks will just end up storing reserves... I think.

 

[JMI]

BTC clearly shown to be a total flop in this crisis, look how it's performed compared to Gold. The idea is great the implementation is poor.

 

[Murray]

BTC clearly shown to be a total flop in this crisis, look how it's performed compared to Gold. The idea is great the implementation is poor.

That's a bit unfair, April-July was spent recovering back up from their March falls

Gold, silver and Bitcoin all shot up ~ 20th July, seemingly because of the dollar falling, at their highs it was:

Gold up ~15%
Silver up ~ 55%
Bitcoin up ~ 35%

 

[Admin]

BTC clearly shown to be a total flop in this crisis, look how it's performed compared to Gold. The idea is great the implementation is poor.

You seem quite confused. I think gold is up maybe 20% since mid march and Bitcoin is up 100%. Totally bemused at the total flop comment. The implementation seems fine to me and is being and can always be improved.

 

[JMI]

That's was just a spike, BTC has failed to reach its ATH in 2017, hasn't be able to break 12,000 since. This confirms to me that investors have lost confidence in it as a safe haven asset. Just remember - you can't hack a Gold bar!

 

[Admin]

Sorry but you are wrong. The ATH was a spike. We broke 12,000 last week, it will be north of 20,000 before you know it. It has outperformed Gold. It has never been hacked in 11 years of its existence.

 

[ian]

you can't hack a Gold bar!

When was Bitcoin ever hacked???

There is a fixed number of Bitcoin, Gold reserves and distribution are controlled by governments and can be effectively printed like Fiat.

 

[LCHappy]

There is a fixed number of Bitcoin,

Every time it forks doesn't it double? Central banks prints more money, Bitcoin prints more central banks. Nobody is printing more Gold.

 

[ian]

Every time it forks doesn't it double? Central banks prints more money, Bitcoin prints more central banks. Nobody is printing more Gold.

A folk creates an alternative crypto currency, not Bitcoin, albeit some are mere duplicates. Ultimately if large investors get in, they'll focus on BTC only. Gold mining is the equivalent of printing, all that prevents market saturation is control of distribution.

 

[JMI]

I know you all hold some BTC so its sensitive, I'm not trolling either I do think BTC has a future. But right now BTC failed to rally in global pandemic by not smashing through it ATH which is disappointing for investors. BTC is a decentralized floating currency, a utopian dream its got an anarchistic edge to it which is a problem. Anything digital can be hacked and reproduced somehow we should know that being in IT - you can't print Gold its finite.

 

[Admin]

Very happy to debate the subject! I do think you are seeing what you want to see. You dont like it, thats fine. BUT, it did rally, it doubled from 5k ish to over 11k. 100% increase compared to gold's 20%.

if you think Gold is a better performer... then know this, $1 invested in gold 10 years ago would now be worth $1.89. The same $1 invested in BTC is worth over $14,000,000.

 

[lazarus]

Never a bad time to buy BTC. (In the long run)

 

[JMI]

That's all very well but look at the volatility - if you like gambling then BTC great!

 

[lazarus]

That's all very well but look at the volatility - if you like gambling then BTC great!

Volatility is great if you trade short term. Imaging trading something that was flat. That wouldn't be much fun
The genie is out of the bottle and BTC is here to stay.

It will surpass previous highs I have no doubt about that. 30 years from now many will be wishing that they had snapped it up so cheaply.

So many hedge funds now incorporate Crytocurrency.

 

[Admin]

That's all very well but look at the volatility - if you like gambling then BTC great!

Volatility is irrelevant if you aren't trading it and great if you are. Next....! I don't trade it so it can be as volatile as it likes if it keeps doubling in value..

 

[diablo]

When was Bitcoin ever hacked???

There is a fixed number of Bitcoin, Gold reserves and distribution are controlled by governments and can be effectively printed like Fiat.

I'm a fan of BTC, but the idea that gold (a commodity) is the same as fiat (which by definition is not backed by a commodity) is wrong.

 

[JMI]

3 swimming pools would hold the entire global supply of gold mined since before the Egyptians began mining before 2000 BC.

 

[lazarus]

3 swimming pools would hold the entire global supply of gold mined since before the Egyptians began mining before 2000 BC.

On a side note. If had the option to have £10k of Gold, or £10k of silver. I would choose Silver every time.

 

[Admin]

On a side note. If had the option to have £10k of Gold, or £10k of silver. I would choose Silver every time.

I'd have either and immediately exchange it for BTC