DCC 6.67% 4.2¢ digitalx limited

Bitcoin action

  1. 1,724 Posts.
    lightbulb Created with Sketch. 14
    Hi guys,

    I am somewhat perplexed at the lack of understanding about Bitcoin. I see a lot of press and comments about the falling price and to me there is both a logical and clear explanation for the price action, which also presents an awesome opportunity. After 5 years, we are at 13,420,000 million Bitcoins that have been mined and are in circulation. See https://blockchain.info/charts/tota...ageString=1&show_header=true&scale=0&address=

    By all accounts and at the current rate of mining, the maximum 21 million will be hit in the next five years or so, which is also about my timeframe for the beginning of the death spiral for the petro dollar. The reason short-term that Bitcoin has fallen is because the USD has risen at the promise of interest rates increases next year. We all know that interest rate increases may never happen again - we have actually gone past the point of no return. If rates rose in the US the cost to service US debt would skyrocket. Investors buy USD as a safe haven in times of economic mailaise but at some point that will reverse - especially after a market crash. Now Bitcoins are on special but they won't be in five years. You can already see some weakness in the USD, so it's upwards and onwards for Bitcoin next year - unless of course you think they will raise rates next year. I don't think they will until 2019.

    Last edited by BerlinBusiness: 26/10/14
 
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