Signs Of Crypto Market Life Spotted; US Fed Surprisingly Rejects Argument Bitcoin "Unbacked" (At Least, More Than $)

in #bitcoin7 years ago (edited)

While doing some morning research on which tokens I'd like to keep, and which I should trade into the market ether, I was pleased to see some Bitcoin volatility spiking in the positive direction. As usual, this is merely a positive sign and not something that firm conclusions can be drawn from. However, discount prices across the market may be coming to a close.

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At 6.9k volume, this is the largest spike since February 6.

There's a see of green across most of the crypto-market this morning, with Litecoin a particular stand-out gainer.

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Top 10 laggard award goes to Ripple, the anti-crypto.

In other loosely, but likely not directly, related news, the US Federal Reserve recently responded to an open public question:

"If virtual currencies aren't backed by anything real, gold or some other physical commodity, does that mean they all eventually will be worthless?"

Their answer was surprising on several fronts, and can be viewed below. They acknowledged that all currencies are essentially unbacked in the modern world, running on no more than trust, and merely represent tokens for solving the classic problem of the double coincidence of wants. (If you are a corn farmer, for barter to work you must source every product you need from someone who wants corn.)

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I'd practically call this an advertisement, given the hostility of the source.

Combine this rather bullish sounding response with the recently positive meeting on Bitcoin in the US Senate, and I'd say fundamentals for 2018 are definitely looking up. At least, for those of us within the USA.

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I wonder where these debates would lead us to. Bitcoin for me has been a gold mine and the technology behind it has unimaginable potential in the future. I don't understand still why people are hesitant to accept this "innovation" we're having.

It would appear the tables are turning on this front!

Sounds to me like the $1 million bitcoin argument has some merit to it if bitcoin eventually becomes accepted as payment pretty much everywhere. Well, maybe not $1 million, but there's huge upside considering the small acceptance base bitcoin is coming from.

Most of Mankind still don't understand the true significance of money. Hordes will always decide what is worth or not! We could use collectionists as a precedent; They pay large ammounts of money for a commodity they surmise as valuable to them yet valueless for others. Cheers!

Can you provide a link to the source of that fed statement? I'm not able to find it with some Google searching.

Michael Lee and Antoine Martin, economists in the New York Fed’s Money and Payment Studies function, "...have been following cryptocurrencies and agreed to answer some questions about digital money. "

http://libertystreeteconomics.newyorkfed.org/2018/02/hey-economist-what-do-cryptocurrencies-have-to-do-with-trust.html

Here is some further reading from ZH:

https://www.zerohedge.com/news/2018-02-09/ny-fed-dystopian-world-bitcoin-would-dominate-payment-methods

Wow. They are trying to avoid land mine with that answer. Ha but what can they say about gold backed cryptos then.

The backing is still based on "faith", so somewhat conditional. (That's part of what they'll say.)

At the moment I am on Holidays and I have not touched my Portfolio in a while. However, I keep an eye on it through coin.fyi and I saw a positive change yesterday which confirms your idea.

After a few weeks on a pattern, yesterday that trend seems to have been broken to the upside.

If we're not done with the correction or crash (call it what you will), I believe we're not far away now.

Hopefully, these painful times are behind us.

I read it takes 15 years for a new technology to go main steam.
I think in 5 years everyone will be using crypto for everything they purchase.

5 years would be very quick, but not impossible!

Technological mass market adoption speeds up over time.

@lexiconical Looks to me like a sitting-on-the-fence answer. They should have gone gung-ho in attacking it with all these useless crackdowns

That in and of itself is an improvement.

This is looking good... knew I should've bought more LTC and ZCL!

I wanna hear about the coins you wanna keep, post em up and we'll vote you up

I'll probably write a little expose on each as I go. Few other projects in the fire atm.

Lol, ripple, the anti-crypto. Nice.