The incoming BTC crash

[0FXTrader0]

Rothschild

 

[0FXTrader0]

I currently reading A Brief History of the Hundred Years War: The English in France, 1337-1453 now back then the king and his government did issue the coin maybe thats why I 'am confused?!

 

[MasterOfCoin]

Any books you recommend. i,e For Dummies

There's some excellent videos on Utube that explain in easy to understand steps how money is created in the Fractional Reserve Central Bank System. I'll pm you some links to the series, if you'd like.

 

[MasterOfCoin]

I currently reading A Brief History of the Hundred Years War: The English in France, 1337-1453 now back then the king and his government did issue the coin maybe thats why I 'am confused?!

Indeed.

There was no 'Bank of England'.

The Royal Mint issued coin by Royal Decree.

Hence why the King's head was stamped on every coin.

 

[0FXTrader0]

Yeah link them this thread needs to be corrected.

Wealth Management: Strategy blog – Bitcoin as an investment?

 

[0FXTrader0]

Hence why the King's head was stamped on every coin.

The King got annoyed when the coins where getting debased, that's what the crypto crowd thinks is happening with the QE policies in the current day.

 

[0FXTrader0]

By the way, the average lifespan of a fiat currency throughout the ages as you phrase it, is a mere 41 years from adoption to collapse and economic ruin

Where do you get this data?

Bought 'The History Of Money' by Jack Weatherford

 

[MasterOfCoin]

Where do you get this data?

Bought 'The History Of Money' by Jack Weatherford

The data can be found widely over the internet including at but not limited to numerous respected historical sources.

There have been countless hundreds of failed fiat currencies and there is certainly no historical precedence for any fiat currency that has succeeded in holding its value over time.

It is clear to anyone paying attention that the fiat monetary system is irretrievably broken and will always fail.
The seductive temptations to create unlimited money supplies allowed under a fiat monetary system eventually catch up with the governments that use them, and their currencies and economies are doomed to fail.

There is no historical discrimination as to the size or perceived stability or importance of a nation’s economy; - if the leaders, governments or rulers abused their currency, effectively making it worthless, the country paid the price.

Avoiding the 'world war years' as exceptional, here's a selection of relatively recent examples.
(includes some which accounted for 10%+ of the global economy of the time preceeding their spectacular demise)
A wheelbarrow full of high-denomination notes of the following would not have bought you a loaf of bread:

Germany – marks, 1923
Argentina – pesos argentinos, 1985
Peru – intis, 1989
Russia – rubles, 1992
Zaire – zaires, 1992
Bosnia – dinars, 1993
Yugoslavia – dinars, 1993
Ukraine – karbovantsiv, 1995
Turkey – lira, 1997
Romania – lei, 2001
Venezuela – bolívares, 2002
Zimbabwe – dollars, 2006

Using a monetary system that is founded on the necessity to create ever-increasing amounts of debt merely to function at all serves only to transfer wealth from those who are obligated to use it to those who issue it. Since the money to pay the interest accruing on the already issued debt is only created by issuing further debt, rampant escalation is inevitable by design simply because it is impossible to pay the interest and the debt itself off together, without creating further debt to do so.

It's insane.

Yet here we all are, ready to repeat the failure once again.

But, of course, only a complete fool would dare suggest money need be backed by something of real value, no?

🙃

 

[0FXTrader0]

I don't think the FED or ECB, BOE are going to repeat these mistakes there is currently not much inflation so they have been able to let the burrr machine run. As soon as the inflation ticks up to lvls you are concerned about they will start cranking up rates which will surprise many but its obvious its part of there mandate for full employment and inflation around 2%.

BTC is not backed by anything of real value.

 

[MasterOfCoin]

You can lead the horse to water ....

And what do you suppose will happen then, with all the people and businesses that can barely afford their repayments at near zero base rates when 2% or more is added to their repayment rates ?? Especially in an environment of record high levels of unemployment fostered by lockdowns of much of the economy, as high unemployment hardly leads to higher wages.

BTC is not backed by anything of real value.

No it isn't.

But what cryptocurrencies do have, by design, is all the important properties of things of real value.
And that matters, a lot.

Much as you can't just nip out and easily dig yourself up a fortune in new precious metals as you fancy, nor can you simply create a fortune in crypto by mining your own. Nor does it make any difference if there's a 'rush' and several million new crypto miners decide to join in the fray. The overall rate at which new coins are minted is independent of the number minting them; more miners simply results in each mining less.

Thus, no hyperinflation of the currency supply.

This is very good if you want a stable low inflation economy, but not so good if you want to be able to spend huge sums of money you haven't got simply by printing it.

You choose. Would you rather have a mansion you'll never have to pay for, by simply printing the money, or do you settle for more modest accommodation that is affordable within your balanced budget ?

Clue- Governments rarely (extremely, astonishingly, rarely) choose to balance the budget.



By how many billions a day is the government racking up it's (your) debt at the moment?
How much extra Taxation will be needed to just pay the interest on the escalating debt?

Because that's how much more Tax you and your descendants will be paying.


Not that I'm objecting. Far from it.
Escalating debt, massive unemployment, trashed economy, rampant inflation.
= Never been easier to make money. Bring it on!

 

[0FXTrader0]

You fail to realise that most of the BTC is held by a few large holders and that the actual mkt for BTC is just retail flow. If any of the whale wallets wanted to cash in they would crash the mkt. They have to hodl and are trying to build enough mkt cap and volume from retail to unload there holdings. Its happened before it will happen again just like the 41 yr cycle of fiat. History rhymes. I think this GME short squeeze is the peak in retail interaction will the financial markets. And all risk assets could be in for a difficult time go forward.

 

[0FXTrader0]

Bitcoin Whales’ Ownership Concentration Is Rising During Rally

 

[MasterOfCoin]

You fail to realise that most of the BTC is held by a few large holders and that the actual mkt for BTC is just retail flow. If any of the whale wallets wanted to cash in they would crash the mkt. They have to hodl and are trying to build enough mkt cap and volume from retail to unload there holdings. Its happened before it will happen again just like the 41 yr cycle of fiat. History rhymes. I think this GME short squeeze is the peak in retail interaction will the financial markets. And all risk assets could be in for a difficult time go forward.

I realise all to well.

But this would be a good thing for crypto.

Cryptocurrency has a steadily growing base of core users actually using it as a primary currency.

The sooner the speculators get wiped out, the better, for the uptake of crypto in replacing fiat, at least.

Just like the precious real-world commodities it replicates in digital form, it won't cease to exist simply because of wild speculation on it's price in fiat. Far from it.

Free the world! Bring back whaling!

 

[vik22]

Do we live on the same planet ?

Fiat currency is NOT issued by the sovereign government.
That's why governments have to BORROW money at interest from Central Banks.

May I suggest you please educate yourself of some basic monetary facts before posting any further nonsense.

It does not reflect well on T2W when frequent posters make such elementary false statements.


By the way, the average lifespan of a fiat currency throughout the ages as you phrase it, is a mere 41 years from adoption to collapse and economic ruin (and all the war/famine/ poverty/ social unrest etc. that goes with it). If this is your interpretation of being well served then I dread to imagine what poorly served might be !!

You call yourself the master of coin, but you seemingly can't wait to pounce on anyone disagreeing with you, its pretty apparent. If you were a true master of ANYTHING, you would not really give a damn if someone agreed with you or not. Think about it for five seconds, before the blood rushes in.

Then again, I think you know that already.

 

[MasterOfCoin]

You call yourself the master of coin, but you seemingly can't wait to pounce on anyone disagreeing with you, its pretty apparent. If you were a true master of ANYTHING, you would not really give a damn if someone agreed with you or not. Think about it for five seconds, before the blood rushes in.

Then again, I think you know that already.

Oh contraire.

Whilst I'm unconcerned whether someone agrees with me or not about the topic, I do provide cold, hard, verifiable facts to back up my opinions and conclusions, something that those taking opposing views seem to conveniently omit.

By all means draw your own reasoned conclusions from that, it's your prerogative to do so, as it is mine to have done.

The lessons of history are apt to be repeated time and again by those who ignore them.

But there's nothing new about that.

 

[0FXTrader0]

Labour nationalized The Bank of England in 1946 so the government do run the money

 

[MasterOfCoin]

Labour nationalized The Bank of England in 1946 so the government do run the money

You'd have thought so, but ...

Err, no, they don't.

All that achieved was to cost the Taxpayer 3% per annum interest (payable to the former private shareholders) for little benefit or accountability to the Government or the people that elect them.

How so? Well:

The Bank of England is protected from scrutiny by its "Royal Charter" status and the Official Secrets Act.
The Bank set up a wholly owned subsidiary called BANK OF ENGLAND NOMINEES LIMITED, (BOEN), a PRIVATE limited company. Objective of this:
“To act as Nominee or agent or attorney either solely or jointly with others, for any person or persons, partnership, company, corporation, government, state, organisation, sovereign, province, authority, or public body, or any group or association of them….”
Bank of England Nominees Limited has an ongoing exemption from the disclosure requirements under Section 27(9) of the Companies Act 1976 , because, “it was considered undesirable that the disclosure requirements should apply to certain categories of shareholders."
Now, under the terms of The Bank of England Act, currently in force, the Bank's Court of Directors have complete independence with regard to monetary policy.

So we have a 'nationally owned' institution which has the monopoly in the production of the national currency, and has independent control of the country's monetary policy in the hands of a 'private' Court of Directors who serve the private banking system just as they have since the Bank was established.

And of course, the Government continues to pay the 3% p/a interest on the Treasury stock it issued to compensate the Private Shareholders when it Nationalised the Bank.

As to why, one might speculate on this.

The restructured Bank. working for the benefit of private bankers, can maximise the returns for their banking colleagues' speculative activities, in the full knowledge that as a nationalised institution, it is now the UK taxpayer who is carrying all the risk, and not, as would have been the case before 1946, the shareholders.

Ergo, puts the Banks actions during and since the most recent financial crash in rather clearer perspective.

 

[0FXTrader0]

Are you of the belief that central banks are operating a ponzi scheme...just look at the debt since 1971 leaving the gold standard.

 

[MasterOfCoin]

Whilst it remains debatable whether fractional reserve banking is of in itself a ponzi scheme per se, it's certainly blatantly fraudulent to create worthless promissory notes out of thin air. There are some undeniable similarities, especially as;
A Ponzi scheme relies on an ever-increasing pool of new investors to pay earlier investors.
A Fiat scheme relies on issuing ever-increasing new debts to pay earlier debts.

Both are impossible to sustain over time and thus doomed to fail from inception.

The outcome is inevitable, the only question being how long it takes to become unsustainable.

Central Banks exist to benefit their stakeholders. This they do well.

At the expense, of course, of those obligated to use their Fiat currencies.


And if you have some objection to enriching those stakeholders at your own expense, then, well, don't do it. Use some other medium of exchange, such as cryptocurrency or a local community trading scheme and starve the central bank.

Be your own bank- use cryptocurrency.

 

[0FXTrader0]

I don't think crypto is the answer the Government in the US confiscated the gold before so they can do that with crypto. Equities are a better option against the inflation. But what happens if the iou system falls apart.