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RE: Bitcoin Mania Is a Symptom of Fiat Money Worthlessness.

in #market7 years ago

I agree that, in part, the bitcoin (crypto-mania) is related to the failure of the fiat monetary systems. Failure that is by the continued abuse and excesses of governments over many years.

If we look back over time to 1971 when the US came off the gold standard we find this 5,000 year old money (gold) surging for several years afterwards. This was at a time when the US money supply (M2) was some 48 times smaller. Bitcoin is affected by the world money supply that has grown through QE mechanisms.

To chart the move of gold (post the gold standard in the US) and overlay it with the fledgling Bitcoin is somewhat hard as the latter is an international "currency" affected by not just one nation but world interest in it and the world's inflated money supply - although I think some analysis in this area would show some similarities between the two (god post 1971 and Bitcoin).

It is concerning, nonetheless, as you suggest we are somewhat in uncharted territory with respect to stock markets and crypto-currencies.

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