Which is cheap? 1 BITCOIN = $2,755, 1oz GOLD = $1,263 or 1oz SILVER = $16.84? They ALL ARE..!!
1 BITCOIN, 1oz GOLD or 1oz SILVER..??
Recently I put out a Price Target for BITCOIN at +$1,000,000 and strangely enough it was not met with the barrage of abuse and ridicule I have experienced in the passed..!!
About four years ago I first started talking about how BLOCKCHAIN Technology was to be applied to the Global Financial DERIVATIVES Market and at first it was met by abuse, ridicule, and on a few occasions I was referred to as been stark raving bonkers..!!
At the time BITCOIN was around $200, GOLD was around $700 and SILVER was more or less where we are today at around $17.00.
It was at this point that I set Price Targets for GOLD and SILVER at $27,000 and $700 respectively and have maintained these prices ever since.
BITCOIN has never had a Price Target as I for one have strongly been saying that it has NO CEILING..!!
Anyone who is calling out Price Targets for BITCOIN at $3,000, $5,000, $10,000, $50,000....... are totally delusional when considering BITCOIN will is CAPPED at 21,000,000 coins.
DERIVATIVES ARE RUNNING THE SHOW
Anyone who thinks that we are in a "Free Market" are kidding themselves and I am sad to be the bearer of bad news. WE ARE NOT..!!
The "Free Market" ended in the mid 1980's with the advent of toxic Financial Derivatives that have since plagued the Global Financial System now for over +30 years.
Things however are about to change.
These garbage, worthless, sometimes referred as "Horse Manure" Derivatives will soon be placed on the BLOCKCHAIN and the results will be what they are..!!
SYSTEMIC RISK
Followers of my work who have followed me now for over the last +4 years on Twitter will tell you that I have been banging on about this point since 2013 and for the ones who have recently started to follow me I will repeat what I have been saying....
"There is not one person on the Planet smart enough to calculate the System Risk of a catastrophic failure of the Global Financial Derivatives..!!"
BLOCKCHAIN will..!!
So the next time someone asks which is cheap? 1 BITCOIN = $2,755, 1oz GOLD = $1,263 or 1oz SILVER = $16.84? Simply tell them... "....they ALL ARE..!!"
Thanks for reading.
Stephen
Shared on twitter. Stephen
Hi Stephen, I'd agree with the systemic risk that derivatives still pose. I am still trying to wrap my head around the blockchain concept though. How exactly will it help if derivatives are put on blockchains? Is it a matter of traceability?
I read somewhere that some of these derivatives had about a MILLION pages of documentation, making it humanly impossible to trace what they actually contained and what their value supposedly was based on.
Will Blockchains improve that somehow?
This is very simple to answer. You cannot fudge the Blockchain..!! By having the Financial Derivatives on a digital distributed ledger will eliminate the risk that most of these Derivatives pose, in as much as no one really knows what they are worth..!! Stephen
So if I understand correctly:
you mean their artificial inflation and leverage by constant repackaging won't fly anymore because the constituent parts's value of the derivative can be better calculated because they are all traceable.
What happens though with the underlying value of the assets, e.g. like the bad loans etc. : on paper they look like legit assets but in reality they are very shaky how is that solved by the blockchain, is there any way to track, say repayment rates and calculate true value of the derivative instantly?
@stephenkendal
I will want to discuss with you about IOTA and their claim to have better technology than blockchain.
please bare with me in pvt - mihaiasumcinei@ gm-eail.com
Good point. However whatever the blockchain can bring to derivatives does not change the fact that they are destructive financial instruments.
I write about silver. Here is my latest post: https://steemit.com/silver/@hgmsilvergold/if-you-are-a-silver-and-gold-stacker-this-is-for-you
kindly follow me aswell
Sky is the limit for Bitcoin price to surge... it will go up and up....
I could not agree more. Bitcoin has NO CEILING..!! Stephen
I'm of the mind that silver is really cheap, but time will tell.
It is. If I had to pick between Gold and Silver I would strongly choose Silver being the most undervalued. Stephen
So what are you telling, is that there is only 21million BTC in the blockchain, and that they can reach the price of 1 million?
Not quite. What I am saying is that there is a cap of 21 million Bitcoin and that the Price Target has no ceiling and will hit +$1,000,000. Stephen
Thanks for the article @stephenkendal
It was an interesting read.
One of your better posts @stephenkendal, but I believe silver will be higher than gold one day as it is far more scarce in hand... and it is dropping in minability each year.
Thank you. I appreciate that. "...but I believe silver will be higher than gold one day." I could not agree more. It is down to which is the most sort-after and with technology set to rise exponentially in the coming decade it will be Silver that will outpace Gold in demand. Stephen
buy, buy, buy.
Besides real estate, cryptocurrencies and a few months salary in cash or in a bank account having a few gold and silver bars is the way to go! Our current financial system is outdated and you don't need to ask yourself if a next financial crisis is coming but when. All your investments, whether it was in gold, silver or crypto's, will at that moment in time skyrocket.
Not to be down on the criptos I think they have an amazing future. But if I had a bitcoin I would sell it for an ounce or two of physical gold any day of the week
How is bitcoin or any other crypto different than a fiat currency? It has no rel value or worth... it just has worth because people want it... the world ran just fine before without crypto.... but i doubt the world would be the same without gold or silver 😉