Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Bitcoin's Crash Bullish For Gold

Summary

We all know that bitcoin is a bubble just waiting to break.  It's hard to imagine who's buying at these levels but guesses include noobs from defunct countries.

Either hyperinflation or collapsing currencies make bitcoin an attractive speculative play for these unsophisticated speculators.

Coupled with a history of bouncing and recovering to new heights, it's the perfect storm for unsophisticated risk takers.

With bitcoins over all evaluation exceeding corporations such as Disney, McDonald's and even GE, three events are likely and likely soon.

1. Cashing out exceeds new inflows.  2. Collapse due to regulation.  3. Panic selling.  (Bitcoin $12,745).

With all of these events likely speculators and those seeking to harbor safely will once again turn to gold.  Add in the way over extended bull market and gold's relatively low and stable price (1275.80) at time of writing.  I foresee a strong move for gold in the near term. 

I currently have no position in either bitcoin or gold.