ALL Bitcoin Exchanges ONLY have 287 actual Bicoins between them!
Wouldn't that be a hell of a headline? To find out that Billions of dollars worth of Bitcoin Futures contracts were being bought and sold against just a couple hundred actual bitcoins?
It could happen. Bitcoin has a finite quantity by design. 21 Million Bitcoins to be exact. Some estimate that as much as 25% were lost before anybody even realized the potential. Lost wallets, forgotten passwords, etc. etc. etc. Even so, let's be generous and assume at least 20 Million will be available for circulation at any time.
If so, what happens when 20 Million people buy just one Bitcoin each and then moves them to a digital wallet far far away from the Exchanges and the reach of organizations like Goldman Sachs? What if 10 Million people owned 2 whole bitcoins and did the same? What if it only took 4 Million people with 5 Bitcoins each? What if the 1 Million richest people in the world decided to buy 20 bitcoins each right now and take them off the market? Hmmmmmmmmmm
It's a reality to think about. How would Bears that are levered up to the gills ever cover their positions? Answer: They can't. They will be instantly liquidated. Every time a Bitcoin is taken off the Exchange and moved to private storage the pool gets smaller and smaller. Not a big deal right now you say. Or is it? What happens when traders realize that they can't convert any contract into actual Bitcoins? Only cash. You either get cash or you owe cash but you will NEVER actually own any Bitcoin. What happens when they realize they are only trading air?
This is not my grand attempt at FUD, although I admit it is pretty good. It is simple math and it is a reality. Every minute of every day the pool of actual Bitcoins available to trade gets smaller and smaller and yet the price keeps getting stomped lower and lower. Does anybody understand the LAW of Supply and Demand or are they just willfully ignoring it? They call it a law for a reason. And when the scam is exposed and the law kicks in people are going to get hurt and hurt real bad. (financially)
When? I can't say. But I know for a fact the pool is getting smaller every time somebody, like me, buys Bitcoin and takes it off the Exchange and puts it into private storage. Do they want me to bring my Bitcoins back to the market for trade? Well maybe I will one day, but it sure as hell won't be for the low 4 figure numbers we have now. Add a couple zeros and maybe I might consider it, but that is still just a maybe. lol
It's a real problem in my opinion when people finally figure out that they are trading nothing against nothing and still loosing money in the process. How can that be? It is the art of derivatives. They are basically trading people air and calling it Bitcoin and all day long they push the price of air back and forth trapping some long and others short. How? By creating an unlimited number of contracts against a finite supply coins. Which, in reality, should be impossible. When people finally figure this out it may very well be impossible because nobody is going to take that kind of risk anymore. Meanwhile, the rest of us are quietly buying the actual Bitcoins they claim to represent and removing them from the air markets.
In today's world of just about fake everything this is some REAL food for thought.....
It could happen. Bitcoin has a finite quantity by design. 21 Million Bitcoins to be exact. Some estimate that as much as 25% were lost before anybody even realized the potential. Lost wallets, forgotten passwords, etc. etc. etc. Even so, let's be generous and assume at least 20 Million will be available for circulation at any time.
If so, what happens when 20 Million people buy just one Bitcoin each and then moves them to a digital wallet far far away from the Exchanges and the reach of organizations like Goldman Sachs? What if 10 Million people owned 2 whole bitcoins and did the same? What if it only took 4 Million people with 5 Bitcoins each? What if the 1 Million richest people in the world decided to buy 20 bitcoins each right now and take them off the market? Hmmmmmmmmmm
It's a reality to think about. How would Bears that are levered up to the gills ever cover their positions? Answer: They can't. They will be instantly liquidated. Every time a Bitcoin is taken off the Exchange and moved to private storage the pool gets smaller and smaller. Not a big deal right now you say. Or is it? What happens when traders realize that they can't convert any contract into actual Bitcoins? Only cash. You either get cash or you owe cash but you will NEVER actually own any Bitcoin. What happens when they realize they are only trading air?
This is not my grand attempt at FUD, although I admit it is pretty good. It is simple math and it is a reality. Every minute of every day the pool of actual Bitcoins available to trade gets smaller and smaller and yet the price keeps getting stomped lower and lower. Does anybody understand the LAW of Supply and Demand or are they just willfully ignoring it? They call it a law for a reason. And when the scam is exposed and the law kicks in people are going to get hurt and hurt real bad. (financially)
When? I can't say. But I know for a fact the pool is getting smaller every time somebody, like me, buys Bitcoin and takes it off the Exchange and puts it into private storage. Do they want me to bring my Bitcoins back to the market for trade? Well maybe I will one day, but it sure as hell won't be for the low 4 figure numbers we have now. Add a couple zeros and maybe I might consider it, but that is still just a maybe. lol
It's a real problem in my opinion when people finally figure out that they are trading nothing against nothing and still loosing money in the process. How can that be? It is the art of derivatives. They are basically trading people air and calling it Bitcoin and all day long they push the price of air back and forth trapping some long and others short. How? By creating an unlimited number of contracts against a finite supply coins. Which, in reality, should be impossible. When people finally figure this out it may very well be impossible because nobody is going to take that kind of risk anymore. Meanwhile, the rest of us are quietly buying the actual Bitcoins they claim to represent and removing them from the air markets.
In today's world of just about fake everything this is some REAL food for thought.....
Trade active:
I the limited Supply and unlimited Demand finally kicking in? I sure hope so......
Dam! I scared myself. LOL No worries, at least I know where my coins are when I bank them myself instead of leaving them to the custody of others. MT Gox. comes to mind.
And the trading pool just got a little smaller.....