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RE: The Bankers Hijack Bitcoin as CME Set to Launch Futures Contract.

in #bitcoin7 years ago

What you don't get is that this contract will be cash (dollar) settled so it will eventually set the price of bitcoin. Wall Street and the City of London will eventually hold positions in notional amounts of bitcoins far greater than the amount of bitcoin ever mined! How can that be a good thing for bitcoin?

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I disagree. If they put enough fiat at risk to be able to temporarily control BTC price, there has to be entities willing to put that much at risk. They will have same risk as exists with gold. In the face of huge buying power and pressure, typically triggered by some global instability or due to concerns on fiat stability, gold and BTC price breaks higher and that becomes self-fulfilling as a short squeeze.

Markets always correct. As long as you are not leveraged and dont go bankrupt first, you end up in a good space in the long term.

So I'll continue to hold physical gold and BTC.

In next 10 years, gold will trade at $5K and BTC will trade at $50K.

I am not in a hurry so I dont care if this doesnt happen in 2 years or 5 years.

Markets cannot be manipulated in perpetuity, in favor of bad fiat money.

"Markets always correct. As long as you are not leveraged and dont go bankrupt first, you end up in a good space in the long term."

How exactly can an entity with unlimited fiat issuing capability be bankrupt? How do you think they've been able to cap the price of gold?

You misunderstood. You can hold physical Gold and BTC, in anticipation that US fiat is in for a crash

As long as you don't go bankrupt by trying to leverage your gold or BTC, then you can wait out the crash of the fiat

There IS NOT SUCH THING AS UNLIMITED FIAT

That is the underlying fallacy in your assumption

Fiat is only infinite until the moment it isn't.

If you dont understand - look at the Venezuelan Bolivar, which was infinite up until the moment it wasnt

I get your point, but Venezuela can't be even remotely compared to the USA and it's FED. They're not even in the same galaxy.

"There IS NOT SUCH THING AS UNLIMITED FIAT"

The stock market's performance since 2007 says otherwise. That kind of levitation can only be achieved via market manipulation.

The FED's power in the US is not limitless either. They have levitated the market for a decade, but that is a short time in bigger picture

Patience.

I promise chickens will come home to roost.

From your keyboard to God's ears, or maybe to God's Steemit feed.

If you believe fiat like the US dollar is actually infinite, and can be used to control and manipulate the price of any asset to any value .... then ...

it sounds like a God-like type of currency, totally omnipotent.

If you really believe that, why are you not putting all your money into the omnipotent currency?

The reason - you don't really believe US fiat is infinite or omni-potent. In fact you believe the opposite.

So no need to get upset about potential for temporary price manipulation. It will end in due course.

The tail isn't going to wag the dog.

The S&P 500 futures are cash settled, you don't see people in alarm that the futures will set the aggregate index price.

The same for the Eurodollar futures complex.

Gold has been ring-fenced, Bitcoin won't be as easy a target - you can't fake warehouse receipts that you have Bitcoin like you can rehypothecate gold.

Sorry @maneco64, but you're simply wrong on this one.