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Bitcoins — Down, Down, Down

Written by Gary North on May 14, 2014

They are under $450 per bitcoin, down from $1,242 in December.  The trend remains down.

The number of worldwide transactions remains miniscule: under 75,000 a day.

In the United States, total money flows are about $14 trillion per day.

Anyone who tells you that bitcoins will soon become an alternative to the U.S. dollar has some explaining to do.

Continue Reading on coinbase.com

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13 thoughts on “Bitcoins — Down, Down, Down

  1. Liberty1 says:

    Gold -Down, Down, Down. Gold is $1294/oz, down from over $1400 in March and nearly $2000 in 2011. The amount of gold used in commercial transactions is vanishingly small. Anyone that tells you gold is money has some explaining to do. Sound silly? Of course. The fact is that Bitcoin exploded over the last year from under $100 to over $1100 and has corrected back to $450, still a huge gain and probably in need of further correction. Major Bitcoin companies such as Coinbase and Blockchain are seeing excellent growth in commercial transactions and have been adding staff. No major player in the Bitcoin world has ever claimed that Bitcoin was about to replace the U. S. Dollar. That is a strawman type argument, created only to be debunked. Bitcoin is a payments system and is growing very nicely in that regard. The facts are easy to come by for those that care to look.

  2. Liberty1 says:

    BitPay, a major player in the payments space, just announced that they have raised $30 million in Series A led by VC firm Index Ventures. Yep, Bitcoin is obviously dying.

  3. Phillip the Bruce says:

    It may not seem it to you (or me), but in the grand scheme of things, $30 million is chump change. As Senator Dirksen said back in the 60's (when the coins were still mostly silver) – "A billion here, a billion there, and pretty soon you're talking real money."

  4. Liberty1 says:

    The average VC investment is in the neighborhood of $7 – $8 million. This is quite a big deal and is certainly not chump change. More importantly it is the result of heavy due diligence and excellent performance after the initial start up. This is private money expecting an above average return over an extended period. The same was the case for Coinbase.

  5. Wow. Our friend any my idol Mr. North really misses the point of Bitcoin. A rapid drop in the Bitcoin-to-fiat exchange rate makes it less attractive as a speculative investment, WHICH IS A PREREQUISITE FOR ITS USE AS A CURRENCY. This is good news, not bad.

  6. Gold isn't money rather it's a valuable commodity. Maybe you'll profit from it, maybe you won't.

  7. Ken Danagger says:

    Gary North is clearly on a vendetta against BitCoin. His assertions are not in line with the facts. Bitcoin prices have stabilized around $450 in the past few weeks. This is a very good thing.
    You can't buy anything online (or elsewhere for that matter) with gold bullion. It has absolutely NO transactional utility.
    BitCoin has excellent transactional utility. You can buy millions of products online – instantly – with virtually no fees.

    Gary North needs to listen and learn from what is going on in the free-market. But alas, it might be too late for this old geezer who is so set in his ways. To him, gold appears to be more an object of worship than a tool to carry out trade.
    Humans are ingenious, and when a need arises to create a new tool to preform a task better, it usually gets created.

    Whether or not BitCoin itself ultimately succeeds as a dominate crypto-currency is irrelevant. But there is no doubt that it is paving the way for others that will.

  8. Gary North won't tell you that Gold is money. Rather the market would like it to be. Gary North has been 100 percent correct about Bitcoin this whole time. He warned you.

  9. BTC Bugs think it is something that it is not. That was Gary North's warning to you that you did not heed.

  10. ncbill12 says:

    BitCoin is more of a penny stock, with the associated risks, especially concerning which exchanges can be trusted.

    As the Wall Street Journal noted, 18 of the 40 BC exchanges they identified collapsed, taking some or all of the BC on deposit.

  11. ChristyK says:

    Gary North, why do you spend so much time attacking bitcoin? It seems like this site is almost the anti-bitcoin website. We all get that you don’t like it, but if it is as insignificant as you say, why do you spend so much time attacking it? There is so much more important information to talk about. Why don’t you spend more time on issues that really affect us?

  12. Ken Danagger says:

    No, I did not heed Gary Norths warning – because I choose to think for myself. I am not his, nor anyone else's slave.

    Gary North chooses gov't-bankster money backed by guns and the threat of imprisonment.

    I choose free-market money, backed by revolutionary technology, the security of cryptography and unfathomably large numbers.

    Bitcoin has stabilized and my decision has worked out well so far. If the situation changes, I am ready to adapt. The point is, I am not being forced to use BitCoin. I have a choice.
    THIS is the difference betweem BitCoin and Bankster fiat.

  13. Aaand, a half a month later and its at $675. Gary, why don't you give Bitcoin a rest for a year, and just see where it goes. Who knows, maybe you'll be right.