ANSWER: Based upon the 21 million Bitcoin cap, the Bitcoin is a bit player in the overall financial scheme of things.
Even if the Bitcoin trades at $1,000 dollars per coin that is a minuscule amount compared to the amount of Dollars, Euros, Pounds, Yen and so-forth, in circulation.
To illustrate, yesterday the US Federal Reserve announced they were going to “taper” their Quantitative Easing by $10 billion per month, which is just a fraction of their monthly $80 billion purchase of Treasuries and bank-held securities. But just the anticipation of the liquidity shut down has caused stock markets around the world and so-called emerging market currencies to lose trillions in the global market. In the past 2 weeks the US stock market alone has lost approximately $1 trillion in value.
To be sure, though, the bankers do not tolerate competition. They have warred against the Savings and Loan business and credit unions for years. And, of course, the relative value of physical gold and silver has been suppressed by the big banks through a complex system of fraud. (GATA)
Apparently, though, someone took notice of Bitcoin, as one of the founders of the “cryptocurrency” was just arrested on money laundering charges. (The Daily Beast)
But in reality, money, be it Dollars or Franks, gold or silver, or Bitcoins, is not worth anything. The only value of money is that everyone agrees that it is worth something. It is only a matter of perception. Paper money might have some value as a fuel for the fire and gold and silver have some value as metals, but cryptocurrency? And all the little digits on a computer that are perceived as wealth in someone’s account has no intrinsic value whatsoever. It is merely a mirage that can easily vanish. And vanish it will during the day of Jehovah.
The proverb said it best: “Do not toil to gain riches. Cease from your own understanding. Have you caused your eyes to glance at it, when it is nothing? For without fail it makes wings for itself like those of an eagle and flies away toward the heavens.”