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When the overall bubble pops, where are you going to go? Will you trust the dollar? What if bonds are defaulting and no one is paying their debts, will you st

When the overall bubble pops, where are you going to go? Will you trust the dollar? What if bonds are defaulting and no one is paying their debts, will you stay in the dollar? What if there's significant inflation? Your life savings are subject to the whims of unelected central bankers who are deciding the winners and losers.

yeukhon 9y ago
While the US dollar value is indeed going down a bit lately, there is one thing about global economy. At this very era, no matter what the deficit is, the US federal government will continue to borrow money from creditors. Sure at some point there will not be enough cash so the government is forced to print more money (essentially QE again). The point is certain large institutions will always have someone to backup. This is why I kept arguing the other week about stock vs estate property (but kept getting downvotes brcause apparently people did not like when I suggested to invest in real estates). When bonds and everything else fail, people will find every penny to find a place to live. But that’s my conservative belief. Citibank will not fail - someone else come will in and swallow it (or government will bail) - the number of global customers just cannot let Citibank fail completely. Bitcoin on the hand is completely different - there is no one to back it up. It’s either a up or down game. There is no prediction based on revenue or “exciting new breakthrough”. But its weakness is also an advantage the way I see. Bitcoin and likes allow investors to focus on buy and sell without studying hard about the market. It’s a pure gambling - yes I realized there are maths and logics in defeating gambling games casinos.... Honestly - selfishly, I really want to see bitcoin fail to thr bottom so late riders like I get to buy some :( But I urge folks to be ready for a sell. There is absolutely no way bitcoin will keep rising this way. It will either crash in 2-3 months back to $500-1000 or there will be a ceiling (e.g resetting the base price).
castis 9y ago
Answering a genuine question with a whole bunch of other stuff is cool too I suppose, thanks.
- etr-strike 9y ago
  No one can answer your question as no one knows what the next recession will look like. In the scenarios I described, bitcoin is an obvious safe haven. In which case, I'd expect the price to go higher. Bitcoin has never lived through a recession yet. No one knows how it'll behave. It was born in the flames of the great financial crisis. Hopefully it solved the problems that it was created to solve.
  - castis 9y ago
    Everyone can answer my question because I asked for an opinion, not a fact. Your answer was good enough though.

yeukhon 9y ago

While the US dollar value is indeed going down a bit lately, there is one thing about global economy. At this very era, no matter what the deficit is, the US federal government will continue to borrow money from creditors. Sure at some point there will not be enough cash so the government is forced to print more money (essentially QE again). The point is certain large institutions will always have someone to backup. This is why I kept arguing the other week about stock vs estate property (but kept getting downvotes brcause apparently people did not like when I suggested to invest in real estates). When bonds and everything else fail, people will find every penny to find a place to live. But that’s my conservative belief. Citibank will not fail - someone else come will in and swallow it (or government will bail) - the number of global customers just cannot let Citibank fail completely. Bitcoin on the hand is completely different - there is no one to back it up. It’s either a up or down game. There is no prediction based on revenue or “exciting new breakthrough”. But its weakness is also an advantage the way I see. Bitcoin and likes allow investors to focus on buy and sell without studying hard about the market. It’s a pure gambling - yes I realized there are maths and logics in defeating gambling games casinos.... Honestly - selfishly, I really want to see bitcoin fail to thr bottom so late riders like I get to buy some :( But I urge folks to be ready for a sell. There is absolutely no way bitcoin will keep rising this way. It will either crash in 2-3 months back to $500-1000 or there will be a ceiling (e.g resetting the base price).

castis 9y ago

Answering a genuine question with a whole bunch of other stuff is cool too I suppose, thanks.

etr-strike 9y ago
No one can answer your question as no one knows what the next recession will look like. In the scenarios I described, bitcoin is an obvious safe haven. In which case, I'd expect the price to go higher. Bitcoin has never lived through a recession yet. No one knows how it'll behave. It was born in the flames of the great financial crisis. Hopefully it solved the problems that it was created to solve.
- castis 9y ago
  Everyone can answer my question because I asked for an opinion, not a fact. Your answer was good enough though.