Srp 08

Bitcoin Could Copy Gold’s 2008 Boom And Bust Before All-Times Highs: Messari

Bitcoin could drop dramatically in the short term before experiencing a historic rise to new heights, one of the cryptocurrency industry’s best-known researcher says.


Bitcoin Mimicking Gold ‘Not Surprising’

Adding his weight to the current discussion on Bitcoin’s utility versus gold, Dan McArdle, co-founder of analytics firm Messari, said the cryptocurrency could copy the precious metal’s behavior in the coming years.

Specifically, he said in social media comments on August 7, BTC/USD might repeat what gold did after the 2008 financial crisis.

“I would not be surprised if BTC performs like gold did 2008-2011,” he wrote. 

Initial spike on fears of crises, big fall as liquidity crises actually sets in, followed by [an] even bigger rise as real debt/sovereign/currency fears take hold.

McArdle referenced fresh comments on gold by Raoul Pal, the serial asset manager who recently presented a buoyant outlook for both bitcoin and gold on the Stephan Livera podcast.

On the topic of gold’s current return to form in line with Bitcoin, he said markets were preparing for the dollar’s own winning streak to come to an abrupt end. The question, he argued, was when it would happen.

“Gold is rightly doing its job, sniffing out a BIG problem and is exploding higher, outperforming even the super strong dollar as gold begins to price in an end game of an eventual MASSIVE readjustment of the dollar (in 12 months? 18 months?),” he tweeted. 

Businesses Vouch For BTC As Safe Haven

As Bitcoinist reported, Bitcoin price bull runs since April have reignited a fierce debate about its potential long-term use as a gold-like safe haven asset.

More and more figures continue to go on record to say a shift into Bitcoin for investors looking for a hedge against inflation is happening, borne from a need to exit the Chinese yuan in particular. Those included Circle CEO Jeremy Allaire, as well as multiple consultancy executives this week.

Others remain opposed, among them well-known gold bugs such as Peter Schiff, who has doubled down on his opinion that gold is ultimately far better as an investment than cryptocurrency. 

“The Chinese aren’t buying Bitcoin as a safe haven. Speculators are buying, betting that the Chinese will buy it as a safe haven!” he claimed this week in the latest of a series of suspicions regarding current pro-Bitcoin narratives.

Schiff spent an hour arguing over the issue with Bitcoin proponent Anthony Pompliano in a CNBC debate last week. 

What do you think about Messari’s outlook for Bitcoin? Let us know in the comments below!


Images via Shutterstock

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Čvn 22

The Federal Reserve Could Be Helping Bitcoin to $100K

Many factors are contributing to Bitcoin’s renewed trajectory towards its USD 100,000 target. One of them is increasingly gaining prominence: The U.S. Federal Reserve.

Fed Interest Rate Cuts to Weaken Dollar and to Strengthen Bitcoin

The U.S. Federal Reserve’s latest moves might be unintentionally propelling Bitcoin to new 2019 highs with renewed impetus. On Jun 19, 2019, Jerome Powell, the chairman of the Fed announced the decision to maintain the benchmark for the federal funds interest rate within the target range of 2.25% to 2.5%.

Bitcoin federal reserve

However, upon review of the statement, financial experts noticed that The Federal Open Market Committee (FOMC) made several changes to its policy statement. Most relevant, the term “patient” was replaced by a policy language promising to “closely monitor the implications of incoming information for the economic outlook.”

For many, this is a hint that inflation and geopolitical risks are putting pressure on Federal Reserve officials to advance the case for an interest rate cut.

As a result, investors on the trading floors are already betting that the Fed will lower the rates as soon as July, putting the dollar under pressure.

In contrast, investors believe that a Fed rate cut would propel Bitcoin and gold to higher values. For example, according to CNN digital correspondent Paul La Monica,

That has been viewed as a positive for bitcoin as well as gold, which are looked at as alternative currencies that should rally when central banks take actions that reduce the value of government-backed currencies.

Moreover, Central Bankers perspective about Bitcoin might be shifting from a negative to a more positive outlook.

Last week, both Fed Chairman Jerome Powell and his counterpart Bank of England Governor, Mark Carney, reportedly advised that central banks “should look at bitcoin and other cryptocurrencies with an open mind,” writes La Monica.

Moreover, Carney has made it clear that he favors imposing strict controls. At a conference organized by the European Central Bank in Portugal, referring to cryptocurrencies, Carney pointed out, “Anything that works in this world, will become instantly systemic and will have to be subject to the highest standards of regulations,”

More regulations, according to La Monica, would bring benefits to the crypto markets, by smoothing Bitcoin’s volatility and helping to further validate Bitcoin’s legitimacy in global financial markets.

Gold And Bitcoin Solidify Their Safe-Haven Status

In addition to a Fed rate cut in July and a weak dollar, another key factor affecting the financial markets and Bitcoin, in particular, is, as the Fed statement put it, “uncertainty.”

Given the ongoing Brexit upheaval, China/U.S. trade war, Hong Kong demonstrations, and the Middle East rising tensions, gold and Bitcoin are moving to the foreground as safe-haven assets.

Thus, as of this writing, gold reaches a five year high, hovering on the USD 1,400 per pound. And Bitcoin just smashed through the USD 11,000 mark, within 24 hours of having surpassed the USD 10,000 price barrier.

What are your thoughts on the possible Fed rate cuts and recent Bitcoin’s price surge? Let us know in the comment section below!

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Images via Twitter/@PeterLBrandt, Reddit

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Čvn 19

Bigger Than Russia – Bitcoin Now 8th Largest World Currency

Still think Bitcoin is a passing fad? Here’s a news flash for you. At $8,940, it’s bigger than Russia’s monetary base. That makes Bitcoin the eighth largest currency in the world. And the price keeps on climbing…


Which Countries Have the Biggest Monetary Base in the World?

The answer might surprise you. Check out the chart below by Crypto Voices. You’ll see that gold is still by far the largest monetary system in the world at almost $8 trillion. However, Bitcoin is hot on its heels.

Bitcoin Base Money

When it comes to a country’s monetary base, however, that is measured in terms of the total amount of currency in circulation or held in commercial deposits in the central bank, not in its gold reserves. 

With its $25 trillion dollar debt, it’s no surprise that despite being the world’s largest economy, the U.S. lags in fourth place behind Japan, China, and the Euro Zone when it comes to base money.

You might wonder why oil-rich countries like Saudi Arabia and the United Arab Emirates don’t appear on this report. Is it because most of their wealth is held in oil and not in fiat?  Crypto Voices says:

Don’t know their methodologies, but Saudi Arabia and Denmark, for example, are pegged currencies, so their base money is the USD and EUR, respectively, and shouldn’t be counted. The correct economic comparison is the monetary base value of each currency’s central bank.

Bitcoin Monetary System Now 8th Largest World Currency

If you don’t count gold and silver, Bitcoin is now the eight largest currency in the world. It comes in at 9th place after the two precious metals.

How significant is this? Well, with a market cap currently at $162 billion and with some analysts predicting a BTC value of over $40k by the end of 2019, after just 10 years of being created, it’s a pretty big deal indeed.

Bitcoin is already bigger than the base money of Russia, South Korea, Brazil, Canada, and Norway. With cryptocurrency adoption on the rise around the world, it won’t be long before it catches up with–and overtakes–the monetary base of India, Switzerland, the UK, and, yes, the United States as well.

Will Bitcoin become the world’s largest monetary base? Add your thoughts below!


Images via Shutterstock, Crypto Voices

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Kvě 08

Peter Schiff Admits Bitcoin Has ‘Some Appeal’ But Won’t Replace Gold

For some, bitcoin is the creme de la creme of assets. Others say its gold. But is one really better than the other?


The meteoric rise in bitcoin’s price over these past few weeks has re-ignited this debate. As you might expect, there has been no shortage of opinion about the topic.

Bitcoin has often been coined ‘digital gold’ if not ‘peer-to-peer gold.’  And just last week, a highly discussed video by the digital currency asset company Greyscale added additional fuel to the ongoing dialogue surrounding this theme.

Prominent Bitcoin investor Barry Silbert, founder and CEO of the Digital Currency Group, parent of Greyscale offered his sentiments by tweeting:

This led noted gold bug Peter Schiff to tweet:

Schiff is an interesting voice in this debate. Some consider him to be a bit of a curmudgeon while in other camps, he is seen as a brilliant observer of markets. 

He has been notorious though in his antipathy toward bitcoin.  Schiff advocates for gold noting its history back to around 600 BC as evidence of its utility over bitcoin. And he often cites Adam Perlaky, Manager of Investment Research of the World Gold Council (WGC), whose report provides a thumbs up to gold’s advantages.

Schiff says that cryptocurrency while having some remarkable periods of performance has also experienced some massive declines during periods when it should have been thriving. Specifically, he notes that it failed as a hedge when markets were in a downward spiral in 2018.

Moreover, he says, it mirrored tech stock, declining 55% during the fourth quarter of that year. During this time, he says, gold was significantly up.

A Clear Argument For One Over The Other?

Mati Greenspan, Senior Market Analyst at eToro, one of the world’s leading social trading platform says that he is irked by the fact that this debate is even taking place.

In an email to Bitcoinist, he had this to say:

Bitcoin is often referred to as digital gold because it shares many similarities with physical gold. It’s a good analogy but we have to remember that they belong in two distinct asset classes. One is an emerging technology and the other is a traditional commodity. Though they share similar properties, the markets for the two assets are completely different.

Greenspan goes on to note that gold and bitcoin are stores of value, hedges against extended risk, and independent of central banks and governments. Both of their values, he says, are largely driven by scarcity and speculation.

They have similar properties, but each has distinct benefits. For example, bitcoin can be digitally transmitted across borders, while gold is used in jewelry and electronics.

Schiff would likely agree with Greenspan’s views while at the same time advocating the following closing thought:

While bitcoin and other cryptos may have some appeal to investors, it’s clearly not a replacement for precious metals.

Do you agree with Schiff that precious metals won’t be obsolete as an investment? Share your thoughts below!


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Led 10

Nick Szabo: Central Banks Might Switch From ‘Physically Vulnerable’ Gold to Bitcoin

Central Banks might resort to cryptocurrency reserves as means of supplementing national gold reserves according to veteran cryptographer Nick Szabo. He also holds that the use of digital currencies will rise in countries with distraught economies. 


Cryptocurrency Over Gold

Speaking at the Israel Bitcoin Summit at Tel Aviv University on January 8th, legendary cryptographer, Nick Szabo, said that national central banks might resort to cryptocurrency reserves as means of supplementing existing national gold reserves.

One of the reasons for this to happen, according to Szabo, is the potential lack of trust between foreign banks or governments:

There’s going to be some situations where a central bank can’t trust a foreign central bank or government with their bonds for example. […] One solution that’s been developed is to have the Swiss government hold it for you – that’s not a trust minimized solution. The Swiss government itself is subject to political pressures and so a more trust minimized solution is cryptocurrency.

In addition, Szabo also notes that gold reserves are “physically vulnerable,” saying:

The other problem with gold reserves is that they’re physically vulnerable. When the Nazis conquered countries in Europe, the first place they went to was a central bank’s gold reserves.

Bitcoinist reported on the uncanny resemblance in the historical performance of gold and Bitcoin in the past. Unlike gold, however, Bitcoin “has more utility” admitted US economist and Bitcoin-critic Paul Krugman.

The Winklevoss twins also recently stated that “Bitcoin is better at being gold than gold,” predicting that it should surpass the precious metal’s $7 trillion dollar market cap in the future.

Helping Distraught Economies

Another thing the Bitcoin pioneer shared was that censorship-resistant cryptocurrencies will grow in popularity in countries, which suffer from failed monetary planning, as well as those which have been blacklisted from trade.

There seems to be substantial merit to his thoughts. Venezuela, for example, is a country which is currently being torn by hyperinflation. In fact, the Director of the Western Hemisphere Department of the International Monetary Fund, Alejandro Werner, said that 10 million percent inflation rate is not out of the picture:

Yes, 10 million percent because prices in Venezuela are doubling or tripling every month. And that, when you take it to 12 months, generates an exponential inflation rate.

As Bitcoinist reported in late December, the country saw its biggest jump in bitcoin volume on LocalBitcoins.

What is more, a Russian university lecturer with ties to the government, Vladislav Ginko, has recently revealed that the country is planning to invest in Bitcoin as a means of avoiding US sanctions.

Whether this is true remains to be seen, but US sanctions indeed have little effect on a neutral global digital currency like Bitcoin

“Because of US sanctions, Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins. The central bank of Russia sits on $466 billion of reserves and has to diversify in case there are limited opportunities to do it (in the future),” Ginko said.

What do you think of Nick Szabo’s statements? Don’t hesitate to let us know in the comments below!


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Lis 16

Ron Paul Survey: Half Would Choose Bitcoin For 10 Year Investment

Most people would choose to invest in Bitcoin over gold, fiat currency, and bonds, according to a survey by Ron Paul which continues on Twitter November 16.


Bitcoin Is Best Future-proof Investment

The former US lawmaker and presidential candidate, well known for his advocacy of the cryptocurrency, has so far yielded responses from over 58,000 people. Almost half of them would want to invest in Bitcoin.

Traditionally much larger than in-person surveys, such as those recently conducted in the UK and Russia which also showed strong popularity for Bitcoin, Twitter polls nonetheless cater to social media’s active cryptocurrency community.

Paul added the proviso that an investment must remain untouched until 2028, suggesting faith among respondents over Bitcoin’s longer-term future has not deflated with this year’s prices.

The survey reads:

A wealthy person gifts you $10,000. You get to choose in which form you’ll accept the gift. But there’s a catch: You must keep the gift in the form that you choose for 10 years without touching it. In which form would you accept the gift?

Bitcoin Criticism Backfires

At press time, 49 percent of 58,131 had voted for Bitcoin 00, followed by 39 percent for gold. Just 2 percent would choose cash US dollars.

Paul’s timing provides a sharp contrast with the cryptocurrency naysayers who continue to pour cold water on the market’s chances in the midst of this week’s fresh price downturn.

A speech by the European Central Bank board member Benoît Cœuré Thursday described Bitcoin as an “extremely clever idea” but added that “sadly, not every clever idea is a good idea.”

In an ironic twist, a Bitcoin analyst’s rebuttal on Twitter garnered more support in the form of likes than the original comment.

At the same time, economist Nouriel Roubini capitalized on BTC/USD’s fall below $5,500, reiterating his belief the pair “belongs” at “zero.”

What do you think about Ron Paul’s Bitcoin survey? Let us know in the comments below!


Images courtesy of Shutterstock, Twitter

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Dub 26

GoldMint Opens Up Sale of Crypto Assets, Secured by Gold

· April 26, 2018 · 6:30 pm

GoldMint.io, a pioneering company which hedges a stable cryptocurrency with real gold, has opened up sales of GOLD coins.


What is GoldMint?

GoldMint is a blockchain-based platform powered by the digital asset GOLD, which is 100% backed by physical gold or delivery futures. Therefore, one digital GOLD asset costs the same as one ounce of gold on the Chicago Mercantile Exchange (CME).

GoldMint’s physical gold is stored in the US Federal Reserve System’s banks, as well as in Singapore’s SGPMX custodians. For the sake of assurance, GoldMint fully intends on always making sure that its gold reserves are constantly even to or exceed the number of GOLD assets currently in circulation at any given time.

The project runs on the GoldMint blockchain, is 100% backed by physical gold or delivery futures, can be used as a trust management investment tool for peer-to-peer loans and operations with gold, and is a transparent, fast and secure payment tool.

GoldMint PTE LTD itself is a Singapore blockchain company specializing in gold tokenization. The company successfully completed its initial coin offering (ICO) in 2017 and raised $7 million.

The company operates with two assets: gold-secured GOLD and MNTP tokens, which is used in the GoldMint locker to confirm transactions. Additionally, MNTP token holders get access to preferential commissions for operations with GOLD assets. The company’s tokens are currently traded on Bancor, Yobit, SIMEX, IDEX, Etherdelta.

The Sale is Open

As of April 12, GoldMint users may buy and sell GOLD coins on Bancor using one or more of the 50 supported cryptocurrencies. GOLD is also available on Simex (Singapore International Monetary Exchange and IDEX (Decentralized Ethereum Asset Exchange).

For the first time in history, users can take advantage of the opportunity to buy a stable coin, completely backed by the price of gold, in exchange for cryptocurrency. With the help of the GOLD stablecoin, crypto investors can hedge against the risk of cryptocurrencies falling in an extremely volatile market — which happens all too frequently.

GOLD will also bring a new class of investors into the cryptocurrency market, as precious metals investors previously uninterested in cryptocurrency now have a reason to get involved.

A Difference that Matters

Not all cryptocurrencies and digital assets are created equal.

The key difference between GOLD and other digital assets is that all GOLD coins are actually backed by a physical product — in this case, the most successful store of value in history, gold.

Said gold is purchased under delivery futures on the Chicago CME exchange and then placed in a bank of the U.S. Federal Reserve system. When extreme volatility arises in the cryptocurrency market, GOLD affords cryptocurrency investors the ability to mitigate their risk by investing in a stable coin, as opposed to converting to fiat currencies.

Additionally, GOLD smart contracts ensure that the amount of crypto assets sold is equal to the amount of gold held in GoldMint company.

GOLD coins may be purchased with cryptocurrency at the Bancor exchange and can be stored in your compatible Ethereum wallet. Because GoldMint works on the Ethereum network, it is also compatible with ethereal wallets.

The Goldmint team plans to launch a personal account with a multi-currency wallet, which will afford users the ability to purchase tokens via fiat money, bank transfer, or credit card, in 2018.

If you’d like to learn more about the gold-backed stablecoin, check out GoldMint’s official website, or follow the project on Twitter, GitHub, Facebook, and Reddit.

Are you interested in investing in a stable cryptocurrency backed 100% by real gold? Do you think GOLD is a safe way to protect yourself against the cryptocurrency market’s volatility? Let us know in the comments below!


Images courtesy of GoldMint, Pexels

Bitcoinist does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. Readers should do their own research before taking any actions related to the company.

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Zář 02

Commodities In Fashion: GoldMint Gives Stale Trading A Blockchain Facelift

· September 2, 2017 · 12:10 pm

Commodities were once synonymous with old money and the elite, but in the age of cryptocurrency, they are making an unstoppable comeback.

Commodities in the Age of Crypto

In 2017, commodity trading focused on precious metals particularly is becoming vogue once again – but this time for anyone with Bitcoin holdings.

While commodities naturally come in more forms than metals – energy and foodstuffs, for example – it is gold that has found a natural rebirth as a tandem partner with cryptocurrency owners.

Gold remains stable. Despite its comparatively underwhelming performance versus Bitcoin for shorters, the metal fundamentally serves its purpose as a shield from fiat controls.

“The broad masses of the population are interested in buying stable assets backed by real gold, as most local currencies experience a devaluation against the dollar. Use of Blockchain  technology simplifies this process and makes it more transparent for all participants,” Dmitry Pluschevsky, CEO of Blockchain-based gold platform GoldMint explained to Bitcoinist.

‘Backed By GOLD’

Stemming from the cryptocurrency industry, an increasing array of startups are offering investors exposure to precious metals through the medium of digital tokens instead of brokers and dealers.

GoldMint is positioning itself as a advancement which will revitalize the tired pawnbroker industry and its reputation, offering trading and storage of gold assets combined with a gold-backed digital asset, GOLD tokens.

The ecosystem is designed to be self-sufficient, swapping human links in the chain for Blockchain-powered automation, principally in the form of a so-called Custody Bot which creates an immutable record of every operation.

The machine functions are an automated pawnbroker, storing, inspecting and weighing gold while remaining independent of third parties using Blockchain-backed data.

“We think it is very important to have direct proof of the commodity backing tokens,” CTO Konstantin Pichugin continued.

“Let’s imagine there is no any proof-of-assets protocol. It means nobody really understand how much commodity we really have. In this case nobody will trust us. Such token will be the same as USDT and only people who love huge risk would use it.”

Marrying Digital Tokens With Commodity Support

The concept of a commodity backing digital tokens is already not entirely new. Bitcoin holders have long been able to use their digital assets to hold gold and even take physical delivery of ingots to cut out third party storage altogether.

Like legacy commodities trading, GoldMint also uses exchange-traded funds (ETFs) to facilitate investor exposure.

As Blockchain technology progresses at a record pace, however, so are the solutions it can support, making the GoldMint Custody Bot a newcomer to the gold industry.

“GOLD cryptoassets have to be considered as a hedging instrument,” Pluschevsky added.

“While almost all cryptocurrencies are very turbulent, GOLD cryptoassets backed with real gold bullions and ETF have extremely low volatility.”

The project is still in its infancy despite the technology rollout, however, and an ICO (link to the ICO page) on September 20 is intended to launch GOLD onto the world stage and fund the roadmap for the next few years.

Participants will receive bonus token allocations for early participation.

What do you think about commodity trading’s comeback on the Blockchain? Let us know in the comments below!


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Úno 25

When Bitcoin Price Passes Gold, Which One Will Really Be Worth More?

· February 25, 2017 · 10:00 am

Bitcoin’s legendary February ‘bull run’ has created an uncomfortable, but inevitable fact. There will be a day in the very near future when Bitcoin price will exceed an ounce of Gold. At that point, which will truly be worth more? Bitcoin or Gold?


Bitcoin vs. Gold

The answer may depend on which side of the tracks you are from. The two commodities share a lot more in common than one may think. Bitcoin is called “digital gold” because it is so similar in concept to the precious metal. Gold is known for its scarcity, but Bitcoin is considerably more scarce. Both are used as a hedge against inflation and both represent the pinnacle of their asset class.

Gold is currently on a “bull run’ of its own, passing $1,250, after starting the year at around $1,150, but Bitcoin price started the year at around $970, so it is only a matter of time before the more volatile digital currency reaches its next benchmark.

It is not a matter of if, but when. And when this does take place, the mainstream may initiate another run at Bitcoin, fueling more demand and growth. Bitcoin may then be considered a worthy alternative to Gold.

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Bitcoin is not designed to replace the dollar anytime soon, but it may end up replacing Gold as the most valuable commodity of the future. Its value has been said to be headed for  $1 million (said Business Insider) in the future if it does gain traction in the global e-commerce market as a preferred mode of payment. 

Gold hasn’t shown any such potential for such growth versus the global reserve currency in all of its thousands of years because it is definitely not as finite in supply as BTC is. There are far more than 21 million ounces of gold on this planet, and gold is still being mined to this day. Gold supply may never run out.

The Romans used to add copper to gold coins to dilute its value, and basically scam the populace.  Could you tell pure Gold from not? 8k from 14k from 24k? 

Bitcoin’s Downside Risk Not For All

Bitcoin does have some downsides when compared to gold or the USD, like its volatility. Bitcoin generally shows ‘upward volatility,’ but it is volatile all the same. In January alone, it rose from $968 to over $1,100 and fell down to less than $780, all within one week. This never happens with Gold or fiat currencies, which makes Bitcoin a less than desirable replacement for money.

Bitcoinist_Gold Price Declining

“Bitcoin’s downside deviation is still several orders of magnitude higher than that of gold or currency,” says Tyler Durden of ZeroHedge. “Over the past two years, Bitcoin experienced a downside deviation of >45%. Since the beginning of data in 2010, it was >100%. The volatility – or to be precise, the downside risk – makes it difficult for Bitcoin to be more widely adopted as money. What speaks for Bitcoin is that it has shown stellar performance over its short lifespan, but this stellar performance comes with considerable downside risk.”

This Gold Has Plenty of Flaws

So Gold is definitely more stable, but Bitcoin is definitely more useful. Ask the people of Venezuela right now how useful Bitcoin is when their national Bolivar is virtually worthless. Many in Venezuela are using Bitcoin to shop on Amazon (you can buy Amazon gift cards at Gyft and other online retailers) and have food into the country.

Bitcoin is literally saving lives. Gold not so much, as there is little food to be had in the country, and even if there was, you couldn’t use gold effectively to get it. Plus, have you ever tried to move gold across national borders? This is child’s play for purely digital Bitcoin, but the drones at your crossing are trained to dissuade you from moving your personal wealth in metal so easily.

You will be limited in how much wealth you can take with you on your trip, and you will end up on somebody’s list for attempting this level of financial freedom. Bitcoin owners never have that problem, at least in transit.

Gold is a shiny construct of value, most sent in ETFs or other digital forms representing its quantity and value. They should both prove to have a greater shelf life than any fiat currency since there has never been a fiat currency that hasn’t eventually reached its true intrinsic value, which is zero.

Bitcoinist_Convert Fiat To Bitcoin

In closing, I have never actually held a piece of 24k gold in my hand, and many of you reading this have not either, and never will. So again, the gold shares more with Bitcoin than you may realize. Even if you were one of the 1% that did physically hold some gold, what could you really do with it?

So in these uncertain economic times, all I can say is pick a side and start investing. If you can, buy both. Governments have tried to curtail Bitcoin use and the digital market adapts and grows like a virus, actually getting stronger and more diverse with each attempt at control.

Neither Bitcoin nor Gold, are going anywhere, so get it while it’s somewhat affordable. This may be considered a ‘Golden Age’ in wealth investing. What’s in your (digital) wallet?

Do you prefer gold, Bitcoin or both as a store of value? Let us know in the comments below!


Image courtesy of ZeroHedge, Shutterstock

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Led 02

Bitcoin Price Starts 2017 Right; Conquers $1,000 on Day One

· January 2, 2017 · 12:30 am

2,052 views

A New Year means new goals and new possibilities. Everyone should have a goal to reach for the year to come, and we hope you reach your goals in 2017. Bitcoin has its own goals, but Bitcoin tends to be ahead of the curve when it comes to what it can do, especially when it comes to the Bitcoin price. 2017 has proven no different.


Bitcoin Hits $1,000 For the First Time Since 2013

Bitcoin spent New Year’s Day reaching its first watershed moment, eclipsing $1,000 USD in market value after a record period of Bitcoin trading in many markets around the world. Bitcoin began the day, in the West, valued at less than $970 USD, but as midnight struck in Beijing for the first time in 2017, one could clearly see that the Chinese market was ready to carry Bitcoin to its highest point since the first week of December 2013.

Within the first hour, values started to rise steeply.

5

Every January 1st in China, the world’s largest Bitcoin trading market, represents the start of a new annual $50,000 quota to convert the yuan into foreign exchange resets in China. Every year, Chinese investors can legally take $50,000 worth of Yuan and invest it elsewhere. It doesn’t take E.F. Hutton to see where China is putting their investment capital these days, or in the days to come.

btc-china

Liu Dongliang, an analyst at China Merchants Bank Co., noted earlier this month,

In the new year, the new foreign-exchange purchase quota starts, so we expect yuan positions in January to drop significantly.

It was clear that there were many, many investors in China, and around the world, who were waiting for New Year’s Day to go on a Bitcoin buying spree. Unlike in the Mt. Gox bubble of 2013, this current “Bull run” is not built on the events of one centralized Bitcoin exchange, but demand at several exchanges both inside and outside of China.

What happens now?

In my opinion, there is little to stop this run from continuing. Hell, Sunday wasn’t even a business day and Bitcoin gained over 3%. Monday is going to be an observed holiday for many, but Tuesday can be more a huge day, much more lucrative than a $35 push on a Sunday holiday, with all bankers open for a full business day. I expect this run to last all week, if not all month, particularly in China, where regulations and Bitcoin’s increasing value in a declining market are spurring demand.

Bitcoin China Money

So, what’s next for Bitcoin?

Now that Bitcoin has reached its first goal of the New Year, the community can focus on Bitcoin eclipsing the value of Gold, which is currently trading at about $1150 USD. Mind you, Gold has been dropping in price over the last sixty day. It was trading at over $1300 USD in early November. That Bitcoin could reach $1,150 in value by the end of the month is certainly not out of the question. One bitcoin was selling for less than $850 USD just ten days ago, and now it’s bigger than silver already. So why can’t it gain another $150 in the next month?

The mainstream media can only watch in awe as the free market economic system works its magic on a global scale. It’s a new year and Bitcoin is picking right up where it left off in 2016, when it grew 132% in value, its best year since 2013. A smart investor might want to put a call in on Bitcoin this week. Early this week.

Will the Bitcoin price remain above $1,000 in 2017? Share your thoughts below!


Images courtesy of shutterstock

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