• Tag Archives Crypto
  • Is Bitcoin the New Gold? Goldman Doesn’t Think So

    A recent note to clients authored by Goldman Sachs analysts, including Jeffrey Currie and Michael Hinds, emphasized the continuing importance of gold and silver to investors, saying precious metals remain a relevant asset class in modern portfolios. The report focused on precious metals’ durability and intrinsic value, noting they are neither a historic accident nor a relic, even with new assets such as cryptocurrencies emerging.
    The use of precious metals is not a historical accident – they are still the best long-term store of value out of the known elements.’
    The note also focused on Bitcoin, saying investors shouldn’t consider cryptocurrencies the ‘new gold.’
    Gold wins out over cryptocurrencies in a majority of the key characteristics of money.’
    As summarized by Bloomberg, the Goldman note emphasized that both uncertainty and wealth creation drive investment in gold.

    This post was published at Schiffgold on OCTOBER 19, 2017.

  • What a Gold-Backed Yuan and Cryptocurrencies May Mean for the Dollar

    Amoungst all the crypto news this, and crypto news that, was a tiny item appearing in the Nikkei Asian Review on September 1st. Reporting from Denpasar, Indonesia, Damon Evans wrote, ‘China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into gold in what analysts say could be a game-changer for the industry.’
    Not bitcoin backed, not ethereum backed, g-o-l-d backed. How low tech of the Chinese. For the moment, oil is priced in dollars, whether it’s Brent or West Texas Intermediate.
    Evans explained,
    China’s move will allow exporters such as Russia and Iran to circumvent U. S. sanctions by trading in yuan. To further entice trade, China (the world’s largest oil importer) says the yuan will be fully convertible into gold on exchanges in Shanghai and Hong Kong.
    This will be China’s first commodities futures contract open to foreign companies such as investment funds, trading houses and petroleum companies.

    This post was published at Ludwig von Mises Institute on October 20, 2017.

  • Own this currency [no, it’s not a cryptocurrency]

    With the nearly daily moves to record highs among the hundreds of cryptocurrencies that currently exist, talking about ‘regular’ currencies seems about as out-of-fashion as that hideous shoulder pad trend from the 1980s.
    [Millennial readers: see here if you’re confused.]
    But there are actually a few currencies out there worth talking about right now.
    And top among them, especially for anyone holding US dollars, is the Hong Kong dollar.
    The Hong Kong dollar is different because it is ‘pegged’ to the US dollar at a pre-determined rate.

    This post was published at Sovereign Man on October 18, 2017.

  • Goldman Sachs Says Gold Is Better Than Bitcoin

    ‘Precious metals remain a relevant asset class in modern portfolios, despite their lack of yield,’ analysts including Jeffrey Currie and Michael Hinds wrote. ‘They are neither a historic accident or a relic.’ Looking at properties such as durability and intrinsic value, they are still relevant even with new materials discovered and new assets emerging, such as cryptocurrencies, they said (LINK)
    Here’s what blows my mind: When gold ran from $250 to $1900, the entire western mainstream financial media called it a bubble. Bitcoin has run from $250 to $5500 and price momentum-chasers and the usual hypster con artists exclaim that it’s going to $100,000. Qu’est-ce que c’est, Rudolph Havenstein?
    This is typically what a bubble looks like:

    This post was published at Investment Research Dynamics on October 17, 2017.

  • Bitcoin or Gold? Do I have to Pick Just One?

    People seem to enjoy pitting gold and Bitcoin against each other. But do I really have to pick just one?
    While cryptocurrency and precious metals have many similarities, in many ways they are polar opposites. And you can have both.
    First the similarities.
    Both gold and Bitcoin serve as a medium of exchange. They are currencies. They are both decentralized and don’t depend on the good faith and stability of any government to prop them up or give them value.
    You can’t create cryptocurrencies or gold out of thin air. You can’t turn on a printing press, or push a button at a central bank to get them. You have to work to ‘create’ both. The mining process may fundamentally different. You mine gold through good-old fashioned manual labor. You mine Bitcoin with a computer. But the principle is the same. Cryptos and precious metals are both inherently scarce.
    Gold and Bitcoin also serve similar investment functions. They are both assets. Investors tend to buy them as a safe haven. Both their prices tend to rise during times of crisis.

    This post was published at Schiffgold on OCTOBER 13, 2017.

  • Asian Metals Market Update: October-13-2017

    The focus is on Bitcoin as it edged past $5000 and shows no sign of correction. Gold and silver are firm. It is just a technical trade. No one is taking seriously US economic data releases due to hurricane impact. Focus will shift to Japanese elections on 22nd October, Chinese communist party meet and demand. Short term traders are investing into Bitcoin and other forms of crypto currencies. Gold and silver will not attract short term hot money. Most of the investors in gold and silver are medium term to long term. The rally in gold and silver is on solid fundamentals.
    Some of the readers might be thinking why I extensively discuss the impact of the global political situation on precious metals and currency markets.

    This post was published at GoldSeek on 13 October 2017.

  • The News of Gold’s Demise Is Greatly Exaggerated: Why Cryptos Won’t Kill Gold

    Cryptocurrencies have shown a lot of resiliency. Every time doubters proclaim Bitcoin is on the mat for good, it manages to claw its way back up.
    Bitcoin went into a freefall after the Chinese government announced plans to ban cryptocurrency trading on all domestic exchanges. But early Monday, the digital currency hit its highest level since early September.
    The steady climb of Bitcoin and its meteoric rise this year have led to some speculation that digital currencies may usurp gold. There have been headlines proclaiming cryptocurrencies are killing the yellow metal. But there are some fundamental reasons cryptos will never replace gold.
    A recent Forbes article pointed out some important characteristics of gold that will prevent Bitcoin and other cryptocurrencies from ever being able to completely push it out.
    Most of the focus now is on Bitcoin. But as Forbes points out, there are somewhere in the neighborhood of 2,100 digital currencies traded in the world right now, with a combined market cap of nearly $150 billion, according to Coinranking.com. We are in the early stages of the crypto revolution. We have no idea which cryptos will ultimately shake out as winners and losers. Betting on any one crypto at this point is risky.

    This post was published at Schiffgold on OCTOBER 10, 2017.

  • Kyle Bass Sounds Off On “Worthless” Puerto Rican Debt, The Crypto “Gold Rush”, And Guns

    With the dollar’s recent post-Fed bout of appreciation providing some much-needed relief for Haymarket Capital’s P&L, its founder Kyle Bass sat for an interview on Friday with Bloomberg’s Erik Schatzker. During the 20 minute discussion, Bass expounded on the importance of holding gold, his cautiously optimistic view on digital currencies, the misguided notion that holders of Puerto Rican debt will someday be made whole – oh, and Bass’s next big call: Long Greece – particularly the stocks and debt of Greek banks.
    A few weeks ago, Bloomberg view published a Bass-penned editorial in which the hedge fund founder and CIO called on the IMF to stop bullying Greece – publicizing the fact that he is now effectively long Greece. Greek government bonds have performed reasonably well so far this year: They’re up about 16%.

    This post was published at Zero Hedge on Oct 7, 2017.

  • Digital Fools Gold – Bitcoin’s Sustainability in Question

    Recently, Jamie Diamond of Citibank made headlines by labeling Bitcoin a fraud. Whether those comments played any part in Bitcoin’s recent sell off is hard to say, but the true believers reacted with predictable outrage given that the comments came from the ultimate Wall Street insider whose financial supremacy is supposedly threatened by crypto currencies like Bitcoin.
    Although my critical comments on Bitcoin over the years have not received nearly as much attention, they have been just as summarily dismissed by the crypto currency crowd. But I am a well know libertarian and follower of the Austrian School of economics. I am not a member of the banking establishment, nor am I a fan of fiat money. I should be one of the good guys. But since I happen to own a company that sells gold, a metal that supposedly Bitcoin will soon make obsolete, the crypto crowd looks at me like a stubborn old buggy whip salesmen who refuses to acknowledge that the future resides in horseless transportation.
    Well Bitcoin is not the automobile and gold is not a buggy whip. While Diamond’s comments were not 100% on the money, he is right about Bitcoin’s ultimate demise, just wrong about how it will meet its fate and why. While most fear that government will simply look to make Bitcoin illegal (which could be a possibility if Bitcoin could actually deliver on its promises), it is much more likely to die of natural causes.

    This post was published at Schiffgold on OCTOBER 4, 2017.

  • Why Precious Metals Are The Better LONG-TERM Store Of Value Over Bitcoin

    Many precious metals investors are starting to question whether gold and silver are still the best store of wealth in the future. The reason Alternative Media community is starting to have doubts about their gold and silver investments is due to the rapidly rising value of the cryptocurrency market. Also, a number of precious metals analysts have jumped ship and are now only supporting the cryptocurrencies as the next best thing since sliced bread.
    While some precious metals analysts now believe that Bitcoin and cryptocurrencies are the better assets to own in the future rather than gold and silver, I do not belong to that group or mindset. I differ from these analysts based upon my energy analysis. Unfortunately, these analysts that promote cryptocurrencies as the ‘New’ digital assets of the future, are ignorant about the Falling EROI – Energy Returned On Investment, or are clueless to the dire energy predicament the world is facing.
    I’ve received many emails from followers who wanted to know my opinion on the matter of ‘Precious Metals vs. Cryptos.’ So, I thought it would be a good idea to discuss the fundamental reason why I believe the precious metals are still the KEY ASSETS to own in the future.

    This post was published at SRSrocco Report on OCTOBER 3, 2017.

  • Stocks and Precious Metals Charts – End of the Line

    “If govts take control of virtual currencies no need for tax bills & payment issues. Taxes, fines, etc automatically deducted from your account. Tax collectors & intel community can hardly wait for mandated single ledger for crypto currency systems, (w/global access for them). As govts tighten grip on virtual currencies, individual discretion on money mgmt will become restricted and right of privacy extinguished.”
    Dr. Harald Malmgren
    “One Ring to rule them all, One Ring to find them,
    One Ring to bring them all, and in the darkness bind them,
    In the Land of Mordor where the Shadows lie.”
    J. R. R. Tolkien, The Lord of the Rings
    Non-farm Payrolls report on Friday.

    This post was published at Jesses Crossroads Cafe on 03 OCTOBER 2017.

  • Is That a Feature or a Bug?

    We have covered many reasons why bitcoin is unsound and not money. It’s a ledger of unbacked liabilities. It is designed to have finite quantity but therefore indeterminate and hence volatile value. This makes it unusable for borrowing or lending and hence savings, but a great a vehicle for conversion of one person’s wealth into another’s income. It is not a commodity – discussion of the usefulness of the network notwithstanding – nor is it backed by a commodity or any asset. It is a perfect, cryptographically secure record – of itself. People use it to get rich quick. In other words, it’s the very model of a (post)modern monetary marvel (OK, Keith is not the next Gilbert and Sullivan).
    And bitcoin has a questionable feature. Transactions are irreversible.
    First it should be addressed that irreversible transactions have an appeal to merchants. Everyone who sells on eBay knows the frustration of shipping merchandise to a customer only to have the customer claim it was never received. Merchants would surely love the idea that once payment is made, it cannot be unmade.
    However, there are good reasons why our payments system was designed as it is. Sometimes there is a clear mistake. No one has an interest in allowing the payee to keep $100,000 when $10,000 was the purchase price of the used car. No one wants to see Jon Schmidt get the money that was intended for John Smith. There is also the occasional case of fraud. If someone breaks into your account, you want recourse to recover the lost funds. Irreversible transactions are not a dream come true for consumers who are defrauded by merchants.

    This post was published at GoldSeek on Monday, 2 October 2017.

  • Is Bitcoin Killing Gold?

    On January 1st of this year, the price of one Bitcoin was $997.
    By August, Bitcoin had more than quadrupled in value to reach over $4,000.
    Another popular cryptocurrency, Ethereum, has made Bitcoin’s big gain appear relatively small. Ethereum’s year-to-date performance has reached over 37-fold at times. Many other cryptos have gained at least 100% this year… and made people huge sums of money.
    With cryptocurrencies generating huge gains and attracting a large, rabid following, it’s time to ask…
    Are cryptocurrencies killing gold?
    We’ve been asked this question many times from both subscribers and gold industry insiders.
    Regular Katusa Research readers are familiar with the allure of owning gold and its long history as money. People have used gold for thousands of years because it is portable, durable, anonymous, divisible, convenient, and consistent around the world. And most importantly to many people, gold cannot be debased by governments like paper money can be.
    To fans of cryptocurrencies, those are familiar words. They own cryptos for many of the same reasons. They love the idea of owning money that isn’t controlled by a government.
    But is there enough of these people now – and will there be enough of these people in the future – to deal a serious blow to gold demand?

    This post was published at GoldSeek on 29 September 2017.

  • Vector Space (Part 2): The New Face of the Space Race

    We’re back with Part Two where Jim Cantrell, CEO of Vector Space Systems, reveals the face of the new Space Race, how Vector plans to ‘make rockets like sausages,’ who the most famous human being in the Universe will be and what role cryptocurrencies will play in this revolution.
    Let’s begin.
    Jim Cantrell:
    The first people to arrive on Mars are going to come by private taxi. They’re not going to be here by black government limos. It’s not going to be a government guy.
    It’s going to be Elon Musk, or it’s going to be one of his astronauts.
    The government’s not going to do it. The government may say they’re going along, but they’re just there for the ride.
    They’re following in this case.
    What’s happening is entrepreneurs now have made enough money that we can actually rival what the governments used to claim as their own domain.
    The governments have become so incompetent in how they execute this basic function of space travel, it’s left the door wide open for the entrepreneurs. And we rushed in. We didn’t realize we were rushing in in the beginning, but we did.

    This post was published at Laissez Faire on Sep 29, 2017.

  • Credit, Crypto, & Kuroda’s “Bat-Shit-Crazy Monetary Expansion”

    Authored by Kevin Muir via The Macro Tourist,
    Today’s post will be about Japanese yen vol, but I am sure to bore some readers with that topic, so I am starting with something a little more interesting.
    As many of you know, I am a little bit of a bitcoin skeptic. At the end of the day, I have trouble investing in the ledger in the sky.
    Call me old-fashioned, call me a troglodyte, call me a bitter gold bug, call me whatever you want, I just can’t bring myself to get long bits in the cloud. And before you send me messages how I don’t understand it, don’t forget I was mining bitcoin before most of Wall Street had ever heard of it. So I am much more than just some trade-a-saurus that refuses to get with the times, I am the knob who passed on bitcoin at $5.
    Yet I have the privilege of counting Tony Greer from TG Macro as one of my pals, and his enthusiasm about using crypto currencies for micro-payments has piqued my interest. From Tony’s great letter the other day:
    For selfish reasons, this is the article that gets me most excited about bitcoin and the blockchain. The streamlining of media distribution is going to kick the door open for individuals to compete with publishing powerhouses and main stream periodicals.
    Publishing content on Amazon, iTunes, even YouTube is extremely costly for the author/artist. Youtubers can’t earn money until they get 10,000 views. Apple and Amazon take between 30% and 75% for the right to their distribution networks. Since media consumption has gone digital, it’s been difficult to charge on a PER ARTICLE basis because of high transaction costs making it prohibitively expensive. All that’s about to change. The blockchain is going to allow thousands of transactions to be processed at low to no cost, it will preserve a record of all those transactions along with all the content, it provides transparency for the artist/author and consumer, and one day, it will make the Morning Navigator available to every single reader in the world for $1 per copy.
    Take a moment to read the article Tony linked to. Yeah, I know. You would never expect me to be linking to an article in BitCoin Magazine, but life’s funny.

    This post was published at Zero Hedge on Sep 29, 2017.

  • “Emerging Markets May Be Suddenly Hit On Multiple Fronts At Once”, Trader Warns

    With emerging markets the best performing conventional asset class in 2017 by a wide margin (excluding cryptocurrencies of course), with a total return of nearly 50% YTD, performance not seen since 2009…
    … Bloomberg macro strategist and commentator Mark Cudmore warns that we are now entering dangerous territory for Emerging-market whose “assets may be suddenly hit on multiple fronts at once” noting that “one of the core themes of 2017 has been the resilience of EM. And it’s precisely because of its solid and steady performance all year that pain can intensify so quickly. Complacent longs might soon be questioning what happened.”
    He explains why in his full Macro View note below.
    Emerging Market Bearishness Can Come at You Fast:
    Emerging-market assets may be suddenly hit on multiple fronts at once.
    One of the core themes of 2017 has been the resilience of EM. And it’s precisely because of its solid and steady performance all year that pain can intensify so quickly. Complacent longs might soon be questioning what happened.
    Between the Fed’s plan to reduce the balance sheet and the dollar’s nascent rebound, the environment is suddenly looking more difficult for EM. But similar macro concerns have been brushed off many times this year. The difference this time is that those macro pressures are being combined with a broad array of idiosyncratic negatives.

    This post was published at Zero Hedge on Sep 26, 2017.