shaw1
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June 25, 2018, 11:42:58 PM |
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No way can you buy gold with 60% off, just by using bitcoin.
I'm not saying that bitcoin isn't used for legit transactions, but that just isn't logical!
Think about it. If I can buy 1 ounce of gold for 60% off, I would then sell it in person, for cash. (I'd be fine with taking a solid 20% markdown, if I had to, to get it to sell quickly.) Then, I would use the cash to buy more bitcoin, and repeat the cycle until I could retire. Which would likely only take a handful of those "doublings", that I would be achieving...
What you are referring to here, is called arbitrage. It has been around forever, and it isn't something new. However, in most "known" markets, that "margin" gets cut down to razor thin.
Think about it. Let's say I could double my money on each transaction. I start with 1,000. Then 2,000. Then 4K. Then 8K. Then 16K. Then 32K. Etc... You'd purchase all of the gold that that dealer would be willing to sell so cheap in a hurry!
So the free market rewards those who find arbitrage opportunities, but they "automatically" end up eroding the opportunity for that to happen in the future.
Deals with bitcoin? Sure. >50% off with bitcoin? I sincerely doubt it.
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