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To: palmer
Yes.

Bitcoin might be a game changer. It's intrinsic value represents the time, energy, and intellectual effort needed to produce it and maintain the system. Since there will be a finite amount coined, it will be scarce. It actually comes closer to real money than currency.

The only problem with bitcoin is that it is dependent on the internet for its survival. No internet or no internet access and bitcoin goes away. Gold and silver are independent of any other system. They stand on their own.

15 posted on 08/13/2014 5:02:29 AM PDT by Former Proud Canadian
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To: Former Proud Canadian
Another problem with Bitcoin is that copies of Bitcoin can be created just as easily.

Bitcoin requires real-world work and even has a form of real world value (e.g. as a component of a one-time pad). But that goes equally for copies of Bitcoin - of which there can be an indefinite number.

Whereas there is no physical Gold.20 or Silver.20.


Now there are paper versions of Gold and Silver: indeed the supply of synthethic/paper Gold and Silver 'outweighs' the real supply by about 100 to 1. This is the mechanism by which the price of Gold and Silver are suppressed.

The moment that the dollar loses reserve status, the value of real things will go up. As we would expect.

But at the same time this cloud of 'fake' gold and silver will tend to disappear/be revealed as valueless - because traders will no longer dare hold promises to deliver real Gold when the price of real Gold is spiking up due to a permanent change in dollar status.

Therefore its likely that - when the dollar loses reserve status - the price of real Gold (and Silver) will *superspike*. This change in the buying power of precious metals will represent the largest transfer of wealth in history.

19 posted on 08/13/2014 5:23:02 AM PDT by agere_contra (Hamas has dug miles of tunnels - but no bomb-shelters.)
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