Re: Buying Bitcoins in China

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Avatar photoCharlie
Keymaster
Quote:
Inflation is always an issue, which is a problem with every country in the world, there is no way around it. If looking for a safe haven for your money, why not put it in commodities? Currencies always fail but commodities are always a good trade during times of turmoil.

The way around inflation is to invest in things that cannot be artificially produced, like precious metal and now bitcoin. Gold, for example, is a hedge against inflation.

Quote:
Yet even if inflation is an issue, no way in hell it is as bad as the late 20’s (Crash of 1929). Inflation was so terrible that a loaf of bread cost a fortune. Putting all one’s money in BC just because of inflation worries is worrisome in itself. BC is relatively new and no track record to see the average price for hours/days/weeks/quarters/years ect ect.

A few things here: firstly, no one said that inflation is at 1929 levels, nor that putting all your money into bitcoin is a good idea. Those would both be ridiculous suggestions. But inflation does pose a very real threat to the long term value of the US dollar and I believe that you are misinformed if you believe that the US dollar has a secure future. Before the 2008 crash, pundits said that those who foresaw a housing crisis were paranoid and delusional. Honestly, do you think our economy, based on the US dollar, is in a better position now? Our “too big to fail” banks are bigger than before and have learned nothing, our trade deficit is even less favorable, and our entitlements are just as large and threatening. Municipalities are going broke and the fed is printing money to pay its bills, sending us further into debt. If you think this isn’t a legitimate threat to the US economy or the US dollar as a reserve currency, I don’t know what else to say, but I suggest you read The Real Crash or Currency Wars by James Rickards.