Bitcoin and gold were coupled in the beginning, but they have now completely and utterly decoupled. I wonder how this is possible. Nobody can give me an answer.
Any temporary coupling between bitcoin and gold is based purely on crowd psychology - it's analogous to a temporary coupling between FRNs and gold.
Bitcoin, like un-backed fiat money is not real money - it's not a promise to pay the bearer anything whatsoever; and it doesn't even have the brute force threat of legal tender laws to enforce accommodation and acceptance by the public that fiat has in favor of its stability.
You can look at bitcoin as a speculative bubble, or more accurately as a Ponsi scheme; but a potentially useful one for the purpose of privacy in black market transactions - as long as you don't make the mistake of confusing it as a store of value. They should not be held any longer than it takes to complete a transaction, unless you knowingly want to speculate on bitcoin's price.
Any temporary coupling between bitcoin and gold is based purely on crowd psychology - it's analogous to a temporary coupling between FRNs and gold.
BeantwoordenVerwijderenBitcoin, like un-backed fiat money is not real money - it's not a promise to pay the bearer anything whatsoever; and it doesn't even have the brute force threat of legal tender laws to enforce accommodation and acceptance by the public that fiat has in favor of its stability.
You can look at bitcoin as a speculative bubble, or more accurately as a Ponsi scheme; but a potentially useful one for the purpose of privacy in black market transactions - as long as you don't make the mistake of confusing it as a store of value. They should not be held any longer than it takes to complete a transaction, unless you knowingly want to speculate on bitcoin's price.