Thats the point I have been making, it isnt that there are not enough dollars to go around because there are for the consumer. The issue is about liabilities, loans, debt covenants that are tied to the dollar because the banks that wrote the terms required it and as debt declines in value then margin calls come and dollars are required by banks...so that makes a shortage. And as I mentioned loans are bundled into collateralized loan obligations (CLO) and when those decline in value then margin is required to be brought up..its like CDOs imploding in the 2008 drop.
Dollars being needed are because the FED and the UST allowed foreign loans to use the USD as the standard for the agreements and loan documents even when the loan is foreign and has nothing to do with the US. Since 2008 the total "short" dollar ammt has doubled, meaning leverage and debt has doubled and that leverage and debt is dollar denominated so when the crap hits the fan then dollars need to come to the table...the point is that the loan originator and debtor never thought it would be an issue, the business or firm never thought they would need to get dollars to cover the deficiency.
I have to admit, I have a hard time wrapping my brain around what’s going on.
The US dollar is strengthening against every other asset. (equities, commodities, gold, treasuries, bitcoin etc)
When the dollar strengthens, the assets (gold, BTC, oil, equities, treasuries) go down.
In order to stabilize asset prices, the dollar has to be weakened, it’s the only way to stop the bleeding.
They will flood the market with trillions of US dollars to accomplish this. When they flood the market, they are devaluing the dollar. The current market is a deflationary one (dollars get more valuable) but once they make the move it will turn to an inflationary environment (dollars less valuable).
The transition from deflationary to inflationary brings two possible scenarios.
1. Asset prices exploding
2. Failure of the fiat system
If we get #1 (90%), every asset price should rise, but the inflation hedges (Gold, BTC) should rise the most. An example is gold 2009-2011.
#2(10%), someone or another country can take a run at the dollar and break us.
Couple that with the halving (May 2020) alone historically making the bitcoin price explode.
The one thing I’m worried about is the exact time of the transfer from deflationary to inflationary. I would hate to see bitcoin get pummeled down to $1000. Hopefully the massive drop the other day to $4000 was the pummeling.
From all of the information I can gather we have two super bullish events happening at the almost the same time. 1) the transfer from deflationary to inflationary and 2) the halving.
So, I’m all in (bitcoin, gold, cardano). Let the cards fall where they may.
Bitcoin was crushed last week as market players were grasping at any straw they could find to pay for their irresponsible decisions that resulted in margin calls. This week proved that Bitcoin has a stable base of holders that are not leaving BTC no matter how bad things get. I doubt it ever goes lower than 5k ever again.
If Coinbase was not so bad I would be accumulating some BTC.
I'm just not up for the hassle of experiencing Coinbase any further than my password fiasco three years ago and hearing from Wall that it still stinks.
That is the general thought, that btc has seen its lowest. Many in the space still see another drop pre halving. People will need money the longer this hysteria lasts. It might be pulled from crypto accts. I bought on crash, buying cheaper coins tokens now.
I don't do charts, i check prices almost ev half hr. I follow some knowledgable people, i don't know enough about the space and basic economics to trade daily. There are some predicting btc around 3k b4 half, may be right may be wrong. Ill be buying under 15 regardless.
gamble,
Coinbase is so simple and limiting it is almost a reason for me not to engage any further with it. BUT....if you want the good stuff then suffer though getting on to the platform and then load the PRO version, it didnt cost me anything to load it and if you get funds to THAT platform then life is simple. The PRO version is like a brokerage level 2 platform where you see bid/ask sizes and depth and can enter limit orders...its like what the basic should be and if I had known the one vs the other I would have loaded money earlier and been ready.
The downside to PRO is you have to either own some BTC clear to transfer or have money loaded in advance. And as another gripe about the basic site, I hooked up my bank and confirmed it and used that for the basic painful purchase and yet I think it took 5 biz days for the transaction to clear their stupid system rules even though the funds were taken out the next day from my bank...so Detox it is super mega moronic that Coinbase takes so freaking long to release a transaction....its like how brokerages used to be 40 yrs ago. It is not efficient, it is restrictive and counter to what the whole coin universe is supposed to represent.
I just added the Robinhood app and have the Bitcoin screen open. I clicked they buy button it and it opened the amount screen. I still need to fund my account but this literally took 5 minutes.
This seems much better than Coinbase but I feel like this is too good to be true. I am going to research the pros and cons of Bitcoin on Robinhood.
Thanks Detox.
Yeah Rush...almost 20% up since I opened my big fat mouth! I did some research on the Robin Hood Bitcoin situation. It seems you do not actually own the bitcoin on RH and you will not have a wallet with your key. I'm guessing this means that RH actually does own the BTC and holds it in their wallet but it's not entirely clear. From reading up on it, it seems that RH will track your buy price and sell price and you collect the difference but you never take actual possession of the BTC.
Seems a little fishy but maybe this is the easier way to do it? I have no idea at the moment.
Established in 1995,
Hot Forum Topics
