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
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.
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
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.
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 😉
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
if i had to say which will go up the highest % by years end? I would say Silver....and in 18 months ....Silver. Just a my two cents :-) But I like them all
like this...
I am so happy to read that post :)) Thank you for writing. Take care.
never too late to hop onto the TRAIN!
you need to diversify your bonds...
When it comes to volatility Gold is the most stable although the upside for Silver is considerable when you consider the historic ratio of Silver to one ounce of Gold has been between nine and sixteen.
There is reputed to be three hundred paper ounces of silver chasing one physical . When the manipulation music stops we will have true price discovery and a lot of unhappy people holding the derivative.
In future price of bitcoin will definitely increase gold and silver are just crap. Dont invest in gold or silver.
Bitcoin performance this year has exceed most experts expectations. Hopefully this trend is just the begging of global adoption. Thanks for the post :))
This is really crazy, bitcoin can beat the price of gold and silver. Like ninjas that settle in the dark. We are delighted with this news
What does this change if the btc value is greater than gold?
Yes all three are cheap relative to where they will be in the not-too-distant future. For those who are still unsure, think of PMs and Bitcoin as portfolio insurance and put at least 10 percent of your net worth into them to offset the inevitable declines in stocks, fiat currencies, etc. When people ask isn't that risky I'd reply it's risky not to!
Stephen, thanks the great insight. Derivatives are here to stay. I look forward to see your vision implemented where the blockchain is used manage systematic risk.
Great post...@Stephen. In my opinion, bitcoin will cheaper than others, its a fact that nothing can stay forever consistent at the top.Upvoted
The Blockchain is changing the entire world and a lot sooner than anyone thinks.
Several of the projects launched in last few weeks have the power to disrupt major sections of our society.
Here are just 2 of them.
https://blog.bancor.network/how-to-contribute-to-the-bancor-protocol-fundraiser-4306654a1a08
http://veritas.veritaseum.com/index.php/blog
Fortunes are being made at moment in the crypto world https://coinmarketcap.com/all/views/all/#EUR
Jump aboard and make some silly money, it's only getting started.
Market cap only 100 billion but will go to 1 trillion over the next year or so.
Stephen, Thank you for the interesting article! I would agree that gold and silver are cheap based on the established fact that they are heavily manipulated markets. It is impossible to get true free market price discovery in the metals market. I believe it is more difficult to state that Bitcoin is cheap because unlike the metals market, it IS operating in a free market and it is the current hot investment trend. I believe the collective excitement in the cryptocurrency world is inflating a price bubble that is not sustainable for Bitcoin; especially when you consider the great variety of new crypto competition. Time will tell. Whatever happens in the next few years in the blockchain will no doubt be historic and have global impact. I think it is fair to say that the great interest in gold, silver and cryptocurrency is a vote of no confidence in the banksters and their fiat currency schemes. Best Regards
Any timeline for these targets?
yes - I have some analysis written and published on my steemit blog. good luck
good data
Good stuff ! Check out the Midas Touch Gold Model please..
https://steemit.com/gold/@midastouch/the-midas-touch-gold-model-update-17th-of-june-2017
Nice article