What we also know is that although cryptos can go a lot higher before they collapse, they offer no protection for investors seeking wealth preservation. Very few of the holders of the current $588 billion in cryptos will be able to get out before these reach zero. Greed is one of the 7 deadly sins and it always punishes mania investors.
Gold will continue to be the only currency to survive in history just as it has for almost 5,000 years. Physical gold and silver is the ultimate form of wealth preservation as well as insurance against the economic and financial calamities that the world will experience in coming years.
Whether there will be a new world currency in 2018 or not is irrelevant since all fiat currencies always fail. Gold and silver are today as unloved and undervalued as they were in 2000. It is very likely that the precious metals cycle bottomed in December for the third year running. Importantly every bottom has been higher. At $1265 we are today $220 above the Dec 2015 and $130 above the Dec 2016 bottoms.
A new currency would only be a temporary phenomenon whilst gold will continue to be the only constant money in history. The very strong up-move of gold and silver in 2018 will take the investment world by surprise. Investors must pay heed and not be left behind.
Re the $500B - you keep asking about where this went? That figure represents the lost perceived value. Think of an example like a house. If I buy a house at $500,000 and then I wish to sell it, but the best offer I get is $400,000, what happened to the $100,000? Nothing, The $100,000 extra I paid for it went to the person I bought it from. With recent crypto movements, it was just the owners of the coins eg Banks or whales or just tens of thousands of individual investors who decided to sell in early January. The issue is understanding a bubble and when prices start to fall as a result of more selling than buying, then fear sets in and noobies sell taking a loss. The Banks never started the price falls that have occurred in 2014, 2015, 2016 etc.That is simply the way the market works. And it works like that in all asset based markets. You are saying it was the Banks. Where is your evidence? Some Banks may have been involved. Sure. But no one knows.
You mention about tax avoidance. Well sure there has always been a few countries (about 6) that have promised to keep their clients details secret. Never any in USA. Mainly Bahamas, Switzerland, Isle of Mann and a couple of others. These were bought into line early 2000's after 9/11 and the world's desire to stop the funding of terrorism. Not some conspiracy by the USA govt.
Lastly, there has been no gold backed currency since the early 1970's. USA stopped that in 1971. And even when there was gold backed currencies, there was never any more than 20-25% of the value of money in circulation held in gold reserves. And the reason china spent 5 years buying gold during the mid 2000's was to try and back up it's currencies so it wouldn't devalue it's currency by printing so much money and spending it in infrastructure. Problem is China now has too much debt, growth has fallen and will continue to fall, has a property bubble it cannot afford to burst and it will take a decade or more for domestic demand to replace the Government stimulus. This scenario applies to most countries around the world all created since GFC in 2008.
It creates a real problem and no one knows how to deal with it. Can't lower interest rates anymore. Printing money didn't fix it. Waiting for GDP to increase via natural growth isn't working and all the time higher demand on welfare, health, education and baby boomers retiring so not paying taxes and how will Govts meet those demands while borrowing more, repaying interest only etc? They can't. So there will be a crash and I believe worse than the Great Depression. We have lived too well on borrowed money for too long.
Govts are scared to even start to increasing prime rates. We saw what happened to the S & P and Dow the other day on rumors that the Fed may increase rates. Biggest one day fall in decades. This always happens . Stock prices fall on rising interest rates. Stock prices fall on rising long term bond rates. How this will pan out I do not know as we are all in uncharted territory due to the massive debt level this time. Something the world has never experienced before to this degree. Govts follow Keynes, but Keynesian theory has failed on so many occasions and will again. Read it for yourself.
Anyway, just my theory but as someone who has been in this game and is widely read over my 68 years I can see history repeating itself. I remember the 1987 crash and the Tech Boom and know what caused the 2008 GFC and lost money invested in Japan in 1990 when after two decades of growth, they had their property crash. Guess what, after two decades it still hasn't recovered either! Argentina has never recovered since it went bankrupt. I do not believe Govts and monetary advisers have anything left in their arsenal this time.
OK, I'll shut up ... lol. Do your own investigation. We nearly at the end of the road.
what we see now is intervention of banks in this market , only the banks can do a big investments and makes coins raise like what we saw . there is a example: if didnt grow up , will never get smaller. they want prices to go up very fast to eliminate digital coins. its a big war .
Secondly, the Cash doesn't have to be sitting in Banks. At least not all of it. There are exchanges where one can hold Cash without holding it in crypto eg BTCMarkets and I assume there are may be others as well. And Yes I know that may not be as secure, but that is a different issue. People can hold Cash in exchanges waiting. Why? Because they either can't get it out (if Chinese) or it allows them to buy and sell via a much quicker transaction than transferring from a Bank account to an exchange first.
And whales can do huge amounts of interference in the market with huge investments. Not only Banks.
I go back to my original point in previous post. With the number of people selling at the moment, you cannot tell me they all bought before massive price rises beginning Oct/Nov 2017. The billions that have gone up in smoke have in reality gone to those who pumped IN Nov/Dec and dumped in Jan. Not Banks. Investors. The thing to remember is that Banks want to make money as well. And they invest in all sorts of things. So if they see a chance for a new market that offers good returns and that market is legal, they will get involved. What do you think happened that caused the GFC? Buying and investing in CDO's that had no value! I do not believe they have an incentive to kill off that new market. Only Governments have that incentive because of illegalities, a duty of care imposed on them via regulation, not being able to track transactions and tax etc.