[ExI] What happens when Bitcoin goes to a million bucks?

[John Clark]

On Thu, Nov 7, 2013 at 12:12 AM, Brent Allsop <brent.allsop at canonizer.com>wrote:

> As most of you know, in 2010, some guy purchased about $25 worth of
> Bitcoin, which is now worth over $800K.  My working hypothesis is that this
> will continue and that before 2020, Bitcoin will be worth a million bucks.
>

Maybe, but if simple extrapolation always worked predicting the future
would be easy. It isn't.

> Have you checked the price of Gold, lately?  It's been crashing,
> dramatically, for 2 years now.


Yes.

 > Why do you think?


There can only be one reason, the consensus in the free market is that
inflation will not be a serious problem in the immediate future and that
the greater problem right now is the exact opposite, deflation. Of course
the free market is not infallible and can be wrong, but it's probably more
likely to be right than you or me

> The so called gold experts, are saying things like: "The bear market in
> gold has been going on for two years. It seems to fly in the face of
> fundamentals, as central banks print enough currency to paper the world."
>

Therefore the free market must have decided that factors other than the
speed of government printing presses are more important in predicting the
future, like the low percentage of factory utilization, high unemployment,
and the dramatic increase in the availability of fossil fuels due to new
technologies like fracking.

> Once you factor in the fact that there is a new competitor in town, and
> that people are starting to sell Gold to buy Bitcoin, that explains what
> otherwise doesn't make sense


That's ridiculous, most gold traders have probably never even heard of
bitcoin and it's below microscopic compared with the gold market.

  John K Clark
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