At this moment in history, crypto currencies are not really currencies. They’re a speculative bet. There are a lot of reasons for them to go up big, but there are reasons you could get completely monkey hammered….
From Greg Hunter:

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  1. Wow…its not a real currency and its volatile? You mean…like bullion??? Silvers dropped 70% and continues to bottom bump. Where were the bullion warnings?

    Dont bet the farm on cryptos but this is like the advent of the internet. Opportunities like this come along once in a lifetime. Dont let the bullion pushers talk you out of them.

    • BitCoin is a Deflationary Currency System and That’s Bad

      Let’s do a thought experiment. Suppose that the world lost confidence in US Dollars, UK Pounds and Euros and instead BitCoin became the standard transactional currency. Currently, a BitCoin trades can be exchanged for roughly one US Dollar, but if it were used widely by billions of people the exchange rate would have to change such that a single BitCoin is worth millions of Dollars. This is because the supply of BitCoins is capped at 21 million. Anyone who acquired BitCoins now at one-to-one exchange rate and held on to them would be a huge winner.

      BitCoins can be traded in fractions up to 8 decimal places. If BitCoin were to ever to become a general currency used by billions, this precision would not be enough for minimum transactions to be small enough to buy consumable goods.

      But wait, there’s more.

      Suppose you are an appliance dealer. You buy appliances in BitCoin and sell them at a later time in BitCoin. But because the value of BitCoin is always increasing, you may well be forced to sell your appliances for fewer BitCoins than you paid for them. Loans have to be paid back with money that is more valuable than the money that was loaned. Even a 0% loan is unattractive if it must be paid back with currency that is worth 10% or 20% more than what was loaded. It becomes unprofitable to be in business. It becomes too risky to take a loan to start a new business. Money becomes more valuable but it goes out of circulation because everyone is terrified to spend it.

      This scenario is call a deflationary spiral. BitCoin is designed to work like the Gold Standard in that it is a fixed pool of currency. But the fact is that having a fixed pool of currency is incredibly dangerous. The Gold Standard caused the Great Depression in the 20th Century and the Panic of 1837 in the 19th century. If you’re not convinced, I recommend listening to “Gold Standard, R.I.P” from NPR’s Planet Money podcast.

      I don’t think BitCoin will ever come to this. Long before there is a Great BitCoin Depression, the world will have realized that it is a flawed monetary system. I think we’re much more likely to end up with in a future that conducts business in Facebook Credits than BitCoin.

    • Who was it said something about keeping your head when all about you are losing theirs?

      Just did a GGL check,   ………..    it was Rudyard Kipling 

      He must have been thinking of Precious Metals Stackers on Silver Doctors. _JLG. 

    • PMs were never currency.  They were MONEY.  In a lot of places around the world, they still are.  Few governments are on board with that because they do not want their power hamstrung by gold or silver but many individuals are happy to take gold and silver as payment for goods and services.  This is why back in the cold war days, there was a reward for returning downed US pilots unharmed to friendly forces… $10,000 in gold, IIRC.  For that same reason, strategic bomber pilots were issued some gold coins to carry with them in case they had to bail out in a nasty place where having some real money could make the difference between surviving and not.

       

    • @Ed_B  

      “For that same reason, strategic bomber pilots were issued some gold coins to carry with them in case they had to bail out in a nasty place where having some real money could make the difference between surviving and not.”  

      Maybe future pilots will be issued $#!TCOINS in their you-beaut pretty ‘Wallet’ (off-line, of course) HAHAHAHA,

      Er, excuse me I think I’ve just P!$$ED meself. 

  2. “Bitcoin Trap? Expert Warns Cryptos Are Speculation Not Currency”

    Gee, it sure is a good thing that we have these “experts” around to tell us these things.  Otherwise, we’d never figure them out on our own.  lol

     

    • @Paco   “Because shitcoin is no threat to fiat, only PMs are”   

       

      Paco wins the ‘Cupie Doll’ for his clarity of thought.

       

      You are wasting your time with the TROLL Paco.

    • @ URFUTURE       Is that as in “your future” or “you are future” ? Hopefully the former as the latter seems a bit Michael Jackson. You are a new troll on the block I notice. Orgasmic over cryptos and down on metals all the time. I think cryptos are a case of the Emperors new clothes as I’ve said before. All those metals gurus who are so slatted here are now also often pumping the cryptos aswell. Cryptos are numerous but still a small market cap. That can easily be manipulated simply by an entity with deep pockets buying all that they can get their hands on, driving up the price for a profit and then dumping the lot back on the market to drive the price down as much as they want. Simple. No mystery. No need for complex naked short selling gymnastics. That a few lucky souls get rich on the way is of no consequence or interest to them. The fact is that cryptos are infinite in supply, literally infinite, despite what all the boffins say. The fact that one issue can or maybe limited in supply is utterly irrelevent. Who gives a crap if its bitcoin 1, 2 or 206, litecoin, ethereum or dead dog coin. At the moment they are probably being used as a distraction to some degree. Bitcoin boy at the FED is all a bit weird. Nearly up there with Christine Lagarde and her number seven speech. If you were to come to me wanting to buy anything tangible with your imaginary coins after things get serious you wont be getting any cans of baked beans from my larder. If you bring something real in your hand like silver or gold or something useful you might. If you bring a gun you might win too but that sort of supports the thesis that real things are ultimately more effective than imaginary ones.

  3. If crypto is speculation so are fine arts. Some of these art pieces could be restored and still called originals. Some artists can paint something just as good or better to replace them. As long as people who buy the crypto have confidence that it cannot be reproduced and the number of crypto can be kept at the absolute number that cannot be increased, it is better than fine arts. No insurance or storage fees, no hassle, no need for experts to tell you they are original like fine arts and no headache. It is speculation if the crypto goes out of fashion like pokemon cards. Imagine billionaires start to move from fine arts to crypto. It is just the state of mind and they are collector items as long as you can make them rare, they are worth whatever someone is willing to pay for them.

    • Agreed @Chris7

       

      “… they are worth whatever someone is willing to pay for them.”

      This seems to be true of just about everything.  Every time we buy something, we are approving its price.  If we don’t approve, we don’t buy it.  Whether or not something is worth more or less to one person does not give the item any inherent worth or value.  Something worth $50 to one person might only be worth $20 to another.  Some of this is based on need and some on perception.

      But it is interesting to go to a flea market and watch people dickering over various items. That’s real capitalism.  Buyers and sellers interacting without the capacity to exert undue influence over each other.

      Personally, I do not see the enthrallment that some have for crypto currencies.  There is no substance there at all, just an idea of substance.  Like most fads, they can and will change direction quickly.  It seems likely to me that they will all disappear at some point once the mania over them subsides.

       

    • Ed_B, I am glad you agree with me. I am just trying to show how ridiculous the price of fine arts are. Some of them are sitting in the attic like junk. Cryptos are just some ones and zeros on the  servers which are unique. They cost almost nothing. Just like fine arts, someone created a way to store their money and if the general public accepts it, then it happens. Even central bankers were trying to conjure up schemes to increase their reserves like minting a one trillion $ platinum coin and make the market accept it as equal to $1 trillion.

    • @JOHNLGALT It’s a mania like sports card collecting.  Is that crazy?  Some people that used to allocate money for PM’s are now sporting some of that dough for crypto currency.  Like it or not that’s less money moving into fizz and hence less price pressure.?  That is of course discounting for the manipulation on the part of the ESF. That’s also discounting the guys that sell bitcoin profits to stack metal.   I can’t see why the FED would mess with crypto currencies.  The buyers are only feeding on each other.  That’s no skin off Yellen’s back.

    • @andrew james  Great reply Andrew, thanks for the comeback.

      The Crypto scam is a trap and a diversion like all of ‘THEIR’ diversions to keep billions of people from

      finding a way to escape the ‘FIAT’ confiscation of their wealth & savings. ….. thoughts please Stackers?

      TROLLS are not invited to suggest anything. _JOHNLGALT.  

      As some on here say – just STFU, (whatever that means).

    • So, when you are a miner of $#!Tc@!N 

      1 (What tools do you use as a miner?

      2) Do you get dirt under your nails?

      3) Is the coin really a GOLD color?

      4) Do you have to go 2-3 miles down into the earth to risk your life getting it?

      5) When you put it in your ‘wallet’, What color is your ‘wallet’?

      6) Do the $#!Tc@!N$ coins come in rolls, and can we stack them in a safe?

      7) Is  $#!Tc@!N so CRYPYIC like religion that we have to go to a go-between like a church & preacher to learn the secret knowledge of the way to eternal wisdom? 

      Enquiring minds want to know. _JLG. 

    • @andrew james

       

      “I can’t see why the FED would mess with crypto currencies.  The buyers are only feeding on each other.  That’s no skin off Yellen’s back.”

      Both the Fed and the US Gov are continuously on watch for anything that competes with the US$ or challenges it in any way.  These crapto-currencies have the potential to do just that.  Because of this, you can bet money that both are watching them closely before deciding how best to take them down.  Unlike the massive naked paper shorting that works so well on the metals futures exchanges, nothing so complex will be needed to take the wind out of the crypto’s sails.  All that will require is a process whereby regulations are formulated such that owning these things becomes more trouble or expense than they are worth.  I’ve heard no mention of an “excess profits tax” on them but that’s just one possibility.  Just read about a fellow in AZ who got busted for selling bitcoin without a currency transfer agent license.  Not that bitcoin is a currency, of course, but the feds will not let that get in the way of a good trial case. I sense something in this that feels similar to the wringer that they put Bernard von NotHaus through some years ago.  In that trial, there was virtually nothing illegal about what von NotHaus did but it was made to seem that way via clever lawyers and a bunch of nincompoops on the jury.  Could be about time for Act II of this same soap opera.

      I also think that there will come a time when the US Gov has had enough guff from bitcoin et al that they will simply co-opt the entire digital currency food chain and take it over… “for the good of the people”, of course.

       

  4. Have you heard some of those guys that say bitcoin will reach a million bucks?  That would make the market cap 22 trillion bucks roughly.  Right?  That doesn’t sound feasible.  That is like almost our entire money stock from the FED.  Hell I don’t know what point I’m trying to make.  I’m not here to discourage people from buying anything that they think is prudent for them and their family.  I mostly like to encourage folks to put a little cash into metal.  Maybe enough to fill a cigar box just in case everything does go south. Nobody even knows where bitcoin rally came from either.

    • “Nobody even knows where bitcoin rally came from either.”

      It came from the nowhere and into the here and now.  One day it will return whence it came.  POOF!  Annnnd, it’s gone!

       

  5. Well I’m a largish holder of gold and silver and thought I’d join the crypto party.

    10 days later, I tripled my Ethereum investment and a shiny new Mercedes now sits on the driveway.

    Times are changing and you can either stick your head in the ground or diversify and maybe earn some cash……spend and enjoy it.

     

  6. Courtesy of Wikipedia regarding the Airplane Pyramid Scheme.

     

    “The nomenclature of the various levels of the game involve participatory levels such as ‘passenger’, ‘flight attendant’, ‘co-pilot’ and at the top, ‘pilot’. Typically, one would pay up to US$1500 to enter at the level of passenger, in the hopes of receiving a US$10,000-plus payout when one ‘piloted out’ at the top of the scheme.”

     

     

    WARNING : “In the event of an emergency, an oxygen mask will drop down from the compartment above your head”

     

    • John the mere mention of the word “cryptocurrency” instills fear, sceptisim and blank looks from most people- none more so than traditional gold and silver investors like yourself.
      These are exactly the same reactions that your parents had when you tried to explain to them what the internet was…..and how they should use email. In the same way that the internet has become part of our daily lives (and your parents too) crypto currencies are set to revolutionize our modern living standards….and the financial system. 
      You may be sceptical and that’s fine but there are lots of people making lots of money from them……( rather than awaiting a doomsday scenario where gold/silver may rocket from the manipulated state they’re in -that may never occur)

      diversification never hurt anyone……I’m off for a drive.

       

    • @storeofwealth

      So just because some people have made a lot of $ from cryptos, they are correct?  Hardly.

      This is a classic Ponzi bubble.   It’s always “different this time”…  just like it was with tulips, the dot.coms, the housing market, baseball cards and beanie babies.

      The true value of all cryptos is ZERO.  They will all eventually revert to that true value.

  7. If an individual invests in anything with a purpose to profit…..and that’s what happens,then they are 100% correct.

    They might even buy physical gold and silver with that profit……

    Whether you think it’s correct is totally irrelevant. The purpose was achieved.

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