"Bitcoin potential fair value is of 700 ounces of Gold" - Not So Fast - it is Not Gold or even close to it. There will be a lot of opinions about Bitcoin and its stratospheric rise. Its wild gyrations of valuation show the appetite for the alternatives to FIAT currencies and ... another Ponzi Scheme in the making fuelled by speculators. Do not be too alert on this one thou: as FED's issued US Dollars are maybe even worse. Everything will be ended in a bubble one day - before it you can play and make some money.
But we definitely have a very big problem when somebody is coming out - as ZeroHedge reports - with valuations for Bitcoin based on comparing Gold vs Monetary Supply in existence and then compares the potential "Bitcoin fair value" to 700 of ounces of Gold!?
You can not compare Bitcoin and Gold on basis of its limited supply and quantity vs FIAT Currencies in existence, this is where the intrinsic value of Gold is coming from. Gold is the accepted Money for thousand of years with all its qualities, including the Limited Supply guaranteeing its place in the vaults of The Asian Central Banks. (The vaults of Western Central Banks are most definitely empty and they are waiting for its Gold to be returned for years from US like Germany or from leasing like Finland and others.) The recent distortion of this physical principle of Limited Supply - the scam run by LBMA as Fractional Gold Reserved System with 60 owners per one ounce of Gold registered at COMEX and Leasing of Gold by the Western Central Banks - are suppressing the price of Gold and pushing people to seek alternatives like Bitcoin.
Bitcoin is not the only available electronic currency, even if it is the most popular one. Tomorrow Goldman Sachs will sponsor the new one, if they are not already behind this one. There are already reports on hacking and claims that Bitcoin system can be potentially compromised with unfair use by miners or somebody (Hackers, Banksters, NSA) can even seize control over it.
The main problem here is that Bitcoin is Part of The Grid, everything people have control over will be compromised in the end. It could be just outlawed at any moment with Ponzi Scheme and consumer protection reasoning by the FED as competition. Until China, India, Russia, Turkey and Thailand among other countries will start to buy Bitcoin as Central Bank Reserves, please, be careful in counting your Bitcoin in ounces of Gold.
China, India, Turkey and Thailand Buying Record Amount of Gold - What Do They Know The Others Don't? GLD, MUX, TNR.v, GDX
MIT Technology Review:
MailOnline:Mike Maloney: The Biggest Scam In The History Of Mankind - Hidden Secrets of Money 4 GLD, MUX, TNR.v, GDX
"Finally, in this episode everything comes together and Mike Maloney presents The Federal Reserve System in all its glory. With over 1 million views only on this YouTube channel the information is going out now. Mike Maloney has made the great job - everything is explained in crystal clear terms and now you can start move forward and understand why FED is as "Federal" as Federal Express and who owns it, why there is ongoing manipulation of Gold and Silver and nobody can be held accountable for it and what will happen next with QE and Taper."