Bitcoin No Threat To U.S. Dollar, Gold – Jim Rickards



could cryptocurrencies become the reserve currency of the future and could gold still play a role he's the best-selling author of currency wars and a longtime critic of the US dollar Jim Rickards joins us back in studio Jim good to see you again Chris we were to tell you so I know a lot of people want to get your thoughts on how you're seeing this Bitcoin craze cryptocurrency craze how do you see it right now well you know it's interesting I looked at it last night I think was $3,000 for one Bitcoin it might be $4,000 by tonight 2600 as we speak yeah because I know a little bit after look a bit closer form of money I have no quarrel with that it's definitely form of money and when people say you know the price of Bitcoin is $2,000 or $3,000 it's not an investment it has no yield when you buy a stock in a company you can analyze the company how's the management how the asset to settle when you buy a bond you can analyze the bond what's the interest rate is the issue or creditworthiness inflation if I real estate what's their ways to analyze all these things Bitcoin is just money so when you buy a Bitcoin and give your dollars to get Bitcoin or your euros or your Chinese yuan or whatever it is all you're really doing you're exchanging one form of money for another form of money it has no yield we know Bitcoin investable assets or you know Bitcoin bonds out there so you just swap in one kind of money for another so when you see the price going two to three thousand dollars you can say bitcoins going out but you can also say the dollars going down in other words people are expressing a liquidity preference where bitcoins upon money over dollars that's one theory evaluation what's the evidence for that not because if that were true you will losing confidence in dollar then gold would be going up or it would or not so it looks like a bubble but in a sense it's not like money because we can't keep printing it right it's cap well you actually it's cap to some level but we're not there yet so you say wait a bit coins come from bottom in the secondary market you had some I could buy them from you you could buy the Familia on exchange there is a secondary market but Bitcoin are created but they call the miners although it's a little bit of a misnomer they're basically people with a lot of computing power and development expertise solving really hard math problems and you the problem you get a Bitcoin as your reward now with bitcoins that you know whatever this today – $3,000 2600 or whatever it's pretty big incentive you know the cost of mining so-called or not zero but they're pretty low relative to you know $2,600 so to me it looks a little bit more like the Fed how much does it cost my bed to create a dollar well the answer is zero it doesn't cost them anything to create a dollar what does it cost to create a Bitcoin well you have some of us many computers but nowhere near the market price so it looks a little bit like a fair we keep cracking them out they are their money and when you buy Bitcoin for dollars you're just swapping one kind of money so if you don't see it as an investment you don't know that right you don't see that being a reserve currency them no because to be a reserve currency it's not enough just to be money like the dollars a reserve currency sixty percent of global reserves are in dollars but the reason they're in dollars it's not because of the dollar it's because of the bond market in other words let's say I'm China and I export stuff and I get dollars what do they do with them I can't put them under my bed you got to go invest in something and so we have the Treasury bond market now same thing with euros if I if I owned euros or dollars for euros I can go buy German government bonds so those are reserve countries because they have investable asset if I earn bitcoins if I ship stuff and you pay me a Bitcoin what do I do is a bitcoins there's nothing to invest in and so it can't be a reserve currency until someone goes out and creates a Bitcoin bond market but it's too small but a big place like a sandbox like your kids are playing the sandbox of your monies over here but they're having fun do you think it's just a frenzy over hype as soon yeah others what's evaluation metric so one valuation metric isn't matches that there was a confidence in the dollar but there's no evidence for that and the other markets goes up so there are two other valuation metrics one is the greater fool theory which is I don't care what it was i'll pay $3,000 to some sucker will pay me 4,000 and then someone will say i'll pay 4,000 because some sucker will pay me five thousand that's the greater fool theory it works for a while until it doesn't the other evaluation metrics is criminal so if you're a tax evader drug smuggler and you know sadly I was a political refugees if if you're in North Korea to get out or even in China trying to get out there's some value in Bitcoin because the authorities might not let you take your capital so a little more sympathy for the political refugees the criminals you know they're they're going to day well let's talk about the tax evasion because you mentioned offline that the IRS might really start paying attention to Bitcoin yeah people don't understand this it's pretty simple actually let's say I bought a Bitcoin for $1,000 and I sell it for $2,000 I have to report $1,000 gain on my tax return you gotta put it on pay taxes on you know 40 percent or whatever it is how many people are actually doing that I don't know the answer but I'm going to guess it it's not a large percentage you know as most people are whipping and driving is big debt racking up large gains not putting in research you kill the minute you do that your tax evader you're like Al Capone we ended up a NACA trust now there hasn't been much enforcement by jabba the taxes tax Council the Citibank for many years the IRS is kind of waiting on this one and they'll come out of the woodwork sooner than later probably subpoena one of these exchanges exchanges will tell the IRS to go jump off the building I also get a court order shut down exchange freeze all the bitcoins and those people are going to find there are left unless they come forward identify themselves this is what the IRS did to Americans with Swiss bank accounts they'll do it to Bitcoin all right buyers beware and finally Jim what do you make of the comparison to Bitcoin and gold a lot of people are talking about these two things I know you see gold as a currency bitcoin is a currency I look at Israel a dunya dollars are money gold is money bitcoin is money Euros or money they're all different forms of money so you have a liquidity preference when you say the dollar price of gold or the dollar price of Bitcoin or the dollar price of the euro or the euro price of Bitcoin then we'll just cross exchange rate so take your pick I like gold I have some cash I have some dollars I have gold actually have some silver download any bitcoins but you know for people who want to have a purpose a Bitcoin good luck Jim Records thanks so much for stopping by thank you Sam and thanks for watching the position of Caicos gold report we'll be back tomorrow

37 thoughts on “Bitcoin No Threat To U.S. Dollar, Gold – Jim Rickards”

  1. Disappointed after watching the video but glad after going through the comments! It's great to see everyone's thinking for themselves and not getting merely brainwashed. This is the best about the crypto community! We don't rely on others perceptions and views to form ours!!

  2. Jim, you understand dollar, but dont undestand Bitcoin, bitcoin value is to evade taxes, same taxes governments will try to get to pay their giant debt that will collapse dollar, is it to difficult to see?

  3. I Buy Bitcoin -Gold !!!! nobody died for this to this moment not like gold … gold kills million of people in the past fucking evil people and goverments

  4. omg he has no idear what was the biggest ´think burn my money it was or it not the btc in btc i can invest but can´t too but what was with the € from our goverment they put it out and in one day they stole 50% of my money and of your money and from all people need to use euro thats criminal and Gold is the same it is money from the bank and the goverment and this two are the forces of evil not more. Don´t buy gold it is shit and it will be shit in future you don´t use it you can copy it and and and like the normal money they copy and print it lol

  5. Anytime you put money into something hoping to get a gain, it's an investment. Maybe he should look up the definition before making such an idiotic statement.

    Also, gold and silver is extremely manipulated by people with very deep pockets with a vested interest in the fed reserve so his claim on faith in the dollar not showing in those markets is irrelevant.

    I personally think this interview is pure propaganda.

    Granted, the crypto world is manipulated as well, but not anywhere near to the degree of the other markets.

  6. I think bitcoin proves that "money" in general is not just tied to paper currency.
    .
    .
    But, if bitcoin infrastructure increases like bitcoin banks, ATMs, funds, investments, bitcoin wages…. Then that's when it begins to act more like paper currency.
    .
    .
    Paper currency has advantages like it doesn't need the internet to exist. Bitcoin needs the internet to exist, take internet away and bitcoin doesn't exist.

  7. Mr. Rickards states that the price of precious metals would confirm a failing dollar. This is a major mistake. The banking cartel controls every price under their digital domain using robust digital control technology, to include the price of gold. Bitcoin is discovering the true value of oceans of a fake GLOBAL monetary digits because it is the only monetary asset free to do so. This is what you get from lawyers, writers, and other liberal arts types. The do not understand the capabilities of control technology….for evil or for good.

  8. LOL! JIM is a secret Bitcoin hoard!!! lol! he's just trying to hold the ship down for as long as he can keep buying in!
    THE WORLDS ONLY non OWNED independent self inflationary limited money! BAHAAH!!! how can you NOT call it an investment if it has a BUILT in yield???? lol
    2018 its going to put the good old gold market into the golden ages. its why we had a bronze, silver, gold, silicone age etc….
    As for Taxes its no different to SHARES, until its cashed it ain't taxed!

  9. "The IRS will shut down the exchange" …
    HahahahahahahahahahahahahahaHahahahahahahahahahahahahahaHahahahahahahahahahahahahahaHahahahahahahahahahahaha
    hahaHahahahahahahahahahahahahahaHahahahahahahahahahahahahahaHahahahahahahahahahahahahahaHahahahahahahahahahahahahahaHahahahaha
    hahahahahahahahahaHahahahahahahahahahahahahahaHahahahahahahahahahahahahahaHahahahahahahahahahahahahaha

    NO.

  10. Wait until the first bail-in of a major US bank occurs, then see if you can understand the value of cryptocurrencies.

  11. So much fear turned into anger on this thread from crypto holders. Hold your crypto and buy a part your dream in 2 years 🙂

  12. It's not money dammit it's fiat currency, it has no intresic value, it is not fungible and it does not maintain value over time. Some folks are gonna wish they knew ten years ago. If you can't touch it what good is it.

  13. gold bugs are losing customers. it was supposed to go to the 'moon' by now. its still at multi year lows. these authors are losing steam because they havent come up with an answers to a five year bear market. its that simple.

  14. man, even if your cryptos get frozen in an exchange, people are still gonna use btc in America. He knows what's up, he just can't talk about it

  15. Crypto Currency is an ESF funded transition – Both gold and silver are going to move considerably lower – intermediate and long-term technicals are extremely weak and not Positive.

  16. He said in the beginning. Bitcoin goes up as the dollar goes down. same as gold and silver. it's all valued in worthless dollars. You people aren't listening.

  17. Either he doesn't know how it works or he is deliberately misleading. Even if you channel all the electricity in the world with all the computer in the world you can not create more than 25600 bitcoins. Supply is limited with math, not with electricity.

  18. point is people will accept its money when they understand its value. i for myself dont want complicated things. And gold are from stardust so ill take gold anytime.

  19. 1:40 … "… we can't keep printing it, it's capped." she says about bitcoin.
    Wrong!
    Every time another cryptocurrency is produced there is the dilution of bitcoin.
    The fact that there are only a limited number will make it useless, even more.
    Bitcoin was only useful if you bought it at 2 cents. Now, fuggedaboutit.
    This cryptocurrency craze is like the hula hoop; great for the manufacturer, pretty useless as money.
    There is only gold and silver to act as money. There is nothing else.

  20. Bitcoin not a threat but other cryptos are. Bitcoin will be obsolete in 10 years while other cryptos that were made better more anonymous and faster to use will take over bitcoin at some point. Bitcoin a crappy coin.

  21. "They just have computers that do some really hard math problems."

    "Oh the IRS will just freeze Bitcoin assets."

    tilted

  22. There are thousands of things to invest crypto in that give great yield. Bad research. Also, many cryptos are more than money – they have specified productive uses – eg ethereum.

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