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Bitcoin as barometer

December 2, 2013 Leave a comment

The huge volatility in Bitcoin is not a sign of the volatility in Bitcoins as such – it is a sign of the volatility of fiat money which can be created out of nothing with zero effort.

In this world, some suckers work.  Others counterfeit.

The counterfeiters know they counterfeit, so they buy selectively and they buy long term assets to avoid being caught.

Bitcoin has no futures market and no derivatives market, so fiat pumpers have to buy to control.

That is what is pulling Bitcoin this way and that.  Fiat pumpers buying and dumping.

Where will it go?  I don’t know.  Am I buying?  On the dips, yes.

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