Why is inflation showing up in Bitcoin but not in Silver and Gold?

in #bitcoin7 years ago (edited)

I’ve been involved professionally within the sectors (stocks and commodities) since the early 1990's and have witnessed fantastic leverage vehicles make moves (at least I used to) hard to describe. I'm also a sound money supporter that has been completely frustrated with the lack of movement within silver and gold regardless of the black swan events that hit. Syrian gas attacks, Brexit, Trump win, Little Kim of North Korea, nothing makes silver and gold move! Not even supply and demand issues have caused these highly leveraged precious metal vehicles to move up in any form since the 2011 rally.
Yet the evidence/material gathered thru the forces of Jim Sinclair, Bill Holter, GATA, Ted Butler, et al. have proven that there is a central banking force manipulating the prices of the metals in order to support the fiat system. The basis of my frustrations (as well as almost every single precious metals investor and buyer) is the prices of the physicals are controlled within a debt based currency system. Banks get freely printed money and invest in these commodities to control the pricing. It can be argued that all commodities can be controlled if an entity (like a bank) is allowed to utilize these investment vehicles by over-positioning/leveraging in any direction. The problem has become an increased nightmare for free market movement since the creation of algo's and hedge funds with 100s of billions of dollars in capital, are utilized as teams of control. Let me introduce the exception, something new within the currency market, if you can call it that, a currency and a market.
Bitcoin is an enigma and like almost all things new and inspiring, it happened when it was needed most. The blockchain technology IS the future of many investment and government works to come and it will help in many sectors in the tomorrows to come. At present it is now proving that hyperinflation is really happening now but not in the commodities at present under this current system, it's happening in the cryptos, outside the debt based system of currencies.
There are real and fake cryptos. Even this last string of words is laughable because a digit isn't real unless it's on paper (right?!). The real issue in my view is cryptos like Bitcoin are finite and cannot be leveraged like commodities can in a fiat system, so one cannot "sell" it unless they own it and that is the crux of my thesis here. Bitcoin cannot be leveraged! It can be purchased and it can be sold and there is an absolute limit on its production, therefore it is finite. However, there are also other cryptos out there that are NOT finite and they are (in my opinion) what banks and governments are looking into for the future of their work.
Bitcoins will eventually be bought up and the product (if one can call a digit in an electronic world that) will only be traded back and forth between the buyer and the seller. In fact, Bitcoin right now is the most expensive currency out there on the planet and it is trading 100's of dollars higher than Gold and a 105 times higher than the value Silver ($16.49 as of this post with Btc at $1749) why is this happening when Silver and Gold are real and Bitcoin is not? Imo, it's because of the fiat currencies issued (like the US$, Eurocurrency, Japanese Yen et al) and nothing more. Said more exactly, Bitcoin is finite and the Central Banking Currencies are not! So everything traded under the fiat of US Dollars and others, is questionable because the control and creation of the currency causes price suppression's as well as inflation's within the commodities. That cannot happen in finite cryptos like bitcoin because the leverage issue has been removed.
I see the attempts within the central bank investment sector trying to create a leveraged bitcoin deliverable entity (like silver and gold), but I see this as a future failure to come. I for one am wholeheartedly interested in this attempted new commodity because I, like a few others out there, would LOVE to buy blocks of bitcoin (depending on the size of the leverage created in the venture) thru the COMEX and see these guys be forced to deliver a truly finite product even when the mining has stopped but not the printing of dollars. I don’t think this would last long especially if a really big buyer was to come in. It will be interesting to see how long this idea would last.
Has Bitcoin replaced Silver and Gold as real money? Hell No!! Has Bitcoin traded places with Silver and Gold as far as the mercury inside the thermometer we used to use in the markets if doubt (black swans) surfaced? I think so, and as long as governments continue to print, the value of an electronic yet finite cryptocurrency will continue to gain as the banks continue to print their currencies and more people "see" what an uncontrolled price a finite crypto is doing.
Bitcoin is the enigma because it is not a debt based instrument. All G7 currencies are debt based instruments and here’s the rub …. The debt base currencies are being exposed by a non-debt based electronic digital crypto … at least it’s my view at present. I could be off, it is possible, but I do see stress in the markets and I see Bitcoin being discussed everywhere ….. Something is heating up and the new thermometer is proving it. Thanks for reading.. Stay Strong!

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Quoting @wmiddelkoop on Twitter: Finally a good op-ed on Bitcoin, gold and money: https://twitter.com/wmiddelkoop/status/864717973021483008

wmiddelkoop willem middelkoop tweeted @ 17 May 2017 - 05:43 UTC

Finally a good op-ed on Bitcoin, gold and money:
Why is inflation showing up in Bitcoin but not in Silver and Gold?

steemit.com/bitcoin/@webbo… / https://t.co/QS94zwTwpA

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