Sterling to get abused even more?

Mr._Pricklepants

Even the loony Alex Jones has cottened on to the fact that bitcoin is not a currency but a bubble waiting to pop in a spectacular way.

http://www.infowars.com/the-bitcoin-bubble-why-speculative-bitcoin-buy-ins-now-point-to-a-disastrous-bitcoin-crash/

Don't get me wrong, it's all good fun to have a punt and to a put a bit of loose change in it, but it's not a currency nor an investment.

IzzyFreedman

Mr._Pricklepants wrote: »

Even the loony Alex Jones has cottened on to the fact that bitcoin is not a currency but a bubble waiting to pop in a spectacular way.

http://www.infowars.com/the-bitcoin-bubble-why-speculative-bitcoin-buy-ins-now-point-to-a-disastrous-bitcoin-crash/

Don't get me wrong, it's all good fun to have a punt and to a put a bit of loose change in it, but it's not a currency nor an investment.

That can be said about all fiat currencies.

I prefer bitcoin to units of fiat currency that are getting abused by expanding the supplies. At least bitcoin can not get abused in this way.

dryhat

IzzyFreedman wrote: »

Backing from a central authority is no backing at all. You are talking about fiat currencies they are just as unbacked as bitcoin.

So using simple figures...

Say there is £1 trillion pounds worth of currency, that should be backed by £1trillion worth of gold sat in a vault somewhere.

Is that what you mean?

IzzyFreedman

dryhat wrote: »

So using simple figures...

Say there is £1 trillion pounds worth of currency, that should be backed by £1trillion worth of gold sat in a vault somewhere.

Is that what you mean?

Well you are thinking in a different way.

But do you not realise that before 1971 all currencies in the world were backed by gold?

The world was told in 71 that this new international monetary system would be temporary. But that was over 40yrs ago now.

dryhat

IzzyFreedman wrote: »

But do you not realise that before 1971 all currencies in the world were backed by gold?

.

I am aware of the history and recognise the con.

But even before nixon, the currencies were pegged to gold VIA the dollar.

Theft and manipulation was still going on, it was just hidden.

IzzyFreedman

If this new "temporary international monetary system" was not brought in replacing the gold backed one in 1971 then governments would have the ability to create trillions of units of currency out of thin air and we would not have the global financial crisis.

The temporary system will be ending soon and whatever replaces it will have something to do with monetary precious metals. China is buying so much bullion while the prices are still so low.

IzzyFreedman

dryhat wrote: »

I am aware of the history and recognise the con.

But even before nixon, the currencies were pegged to gold VIA the dollar.

Theft and manipulation was still going on, it was just hidden.

Yes.

After WW2 the first Bretton Woods system was introduced which meant that the US dollar was fully backed by real monetary precious metal and all other currencies would be backed by the US dollar. So at the Bretton Woods meeting, the world agreed that all currencies would be backed by monetary precious metal through the US dollar meaning that the world was not using currency but real honest money again, or at least representations of it. How long could it last this time?
A few decades later some countries suspected the Americans of playing the exact same trick as the very first ever bankers. The Americans were painting on extra bits of animal skin this is worth 1 ounce of silver or gold. Only now it was not animal skin it was billions of little green bits of paper called US Dollars.
No worries under the Bretton Woods agreement each dollar was backed by real gold and every currency was backed by the dollar. So some countries asked to be paid in real money instead of these funny green bits of paper. The Americans did not like it.
Under Tricky Dicky President Nixon they wanted everyone to just trust them that they would not print more paper than they held peoples gold and silver. But everyone suspected they were printing far more than they had real precious metal.
Then France in the 60's said what's the difference the dollar is fully backed by gold isn't it? We would like gold not the funny green bits of paper that seem to be increasing in quantity very fast.
Under the Bretton Woods agreement the US could not do anything about it. Vast amounts of gold and silver were drawn out of America. This draining continued until August 15th 1971.

This was the year that many suspect the USA to have almost run out of gold and silver. It is now confirmed they have now run out of ALL silver stockpiles, gold is unknown they will not let anyone check but they admit all the silver is gone.

So Nixon came on TV on August 15th 1971 and announced to the world that the US dollar would "temporarily" no longer be backed by real gold!!!!!! He ended the Bretton Woods international monetary system, that the world agreed on after WW2 without any other countries having a say. It's well worth watching this Nixon speech search youtube Nixon 1971 gold. He never really said how long this temporary new monetary system would last but, here well over 40 years later the world is still temporarily using this system.

His exact words on Sunday August 15th 1971 were "temporarily" and "urgently needed new international monetary system" urgently needed because they were running out of gold and silver, and they wanted people to forget about gold and silver are money and believe their US Dollars were worth something.

andy.m_2

This is getting silly now.
I had pegged my holding to sell at 150 but missed the boat, I may set 150 as a trigger on the way down? or a 10% under peak as a trigger.

dryhat

andy.m wrote: »

This is getting silly now.
I had pegged my holding to sell at 150 but missed the boat, I may set 150 as a trigger on the way down? or a 10% under peak as a trigger.

Did you read that alex jones link that prickpants posted earlier in the thread?

It's a good piece with some good comments.

As he said, if /when this bubble bursts, it could crash within hours or even as you're sleeping; leaving you stranded and unable to get out in time.

Getting the greed/fear balance right is tricky.

If/when it does crash, i'll be buying.


(£171 now, by the way)

andy.m_2

If it crashes below £50 then I'll go in balls deep and hope there's enough stability in the silk road demand to hold it steady.