Yes, all that. That's one of the reasons I started looking into Bitcoin. I know people hoard gold and junk silver so they can buy things during the apocalypse, but I really think that in the 21st century something like Bitcoin is a better bet. A government can round up and confiscate precious metals, but they can't do that with a virtual currency. And I'm pretty sure that if I found myself with just a phone and the clothes on my back, I'd be able to connect to someone who would buy my Bitcoin or at least trade them for services. It's just another portable asset.
In a worst-case scenario the currency may very well be things like matches, ammo, vodka, batteries... We are living the Chinese curse...interesting times.
That's cool. I wonder if it's subject to currency market buying and selling with floating exchange rates and interest rate parity like the $ and Euro are. Might be able to use it triangularly.
True, though it's price/value moves a bit more like a commodity. How much of the bottom line in Bitcoin price is really related to things like large scale hedge fund or private equity money? Is it possible to take a short position on it? Edited to add private equity. I am not in the industry, correct my terminology or educate me as needed. These are honest questions.
Yeah, I think thinking of it as a commodity works too. I don't think of it as an investment item, but its value fluctuates so precious metals is just what I jump to in my mind. If what I learned about commodities in Trading Places is correct, gold is considered a commodity, but Pork bellies would work too.
Yeah, but when dealing with Futures, if you really don't want the 40,000 pounds of pork bellies, make sure the clearing house gets you out before the date comes. There are horror stories of people getting 40,000 pounds of pork bellies delivered to their Manhattan apartments. The day might come when you can invest in Bitcoin futures. If you take a long position, you intend to buy it and you want the price to go up. That differential between the price you bought it for and the increased price is your profit. If you take a short position, you intend to sell it and you want the price to go down. That differential between the price you bought it for and the decreased price is your profit. I'm pretty sure. Trying to channel knowledge from past Finance classes.
Indeed. My post was more about if he knew how much private equity and/or derivative bet money is moving through the Bitcoin market.
There is this grumpy dude in Colorado who will accept Bitcoin for carved shell-bead art and "small batch" hand crafted whiskey.
http://www.wsj.com/articles/teraexchange-launches-bitcoin-derivatives-exchange-1410543989 This is why it looks like a commodity/metal in terms of trading, and does not follow the traditional governing forces of the currency market. A commodity can become a currency if enough people adopt its use and agree on its value.
There are actually multiple alternative currencies ongoing in Colorado, including actual silver coinage, and non governmental paper to boot. In some quarters in Colorado, a barter/trade/labor swap economy has taken hold amongst skilled craftsmen and merchants of goods.
