This post was published at Crypt0
This post was published at Crypt0
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.
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.
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.
If you’re familiar with ABC’s popular reality show Shark Tank, you should already be familiar with the concept behind the San Antonio Angel Network (SAAN). Select entrepreneurs and innovators pitch their startup ideas to accredited investors, who can choose to make early-stage investments in a potentially successful company.
I attended an SAAN meeting last week at Ferrari of San Antonio, and what struck me the most was how fluid and seamless the whole thing is. Other professionals in attendance, including lawyers and CPAs, had a similar opinion, with some of them saying it was because there wasn’t any bureaucracy or red tape to hamstring the presenters.
This is unlike the world of mutual funds, which I believe has become excessively regulated.
As I’ve said numerous times before, regulation is essential, just as referees are essential to a basketball game. No one disputes that, because otherwise there would be chaos.
Similarly, the new and very unregulated world of cryptocurrencies has grown dramatically, beyond bitcoin and ethereum. Did you know there are over 800 cryptocurrencies? These new initial coin offerings, called ICOs, are like initial public offerings (IPOs) but with little regulation or accountability. As I’ve commented before, if the refs get too powerful or too numerous, and the rules too complex, the game becomes nearly unplayable.
This post was published at GoldSeek on Tuesday, 12 September 2017.
In just a few short months, companies – many of dubious legitimacy – have raised more than a billion dollars through ICOs. Some of the better-hyped offerings in the field of 900 new coins that have been created this year managed to raise tens of millions of dollars in minutes. Investors, who were eager to throw money at the new coins, blindly hoping they would land on the next bitcoin or Ethereum.
With all this money flying around, it’s no small wonder that bankers in New York, Hong Kong and London are abandoning seven-figure salaries to try their luck in the nascent ICO industry, according to Bloomberg. Stories like this have become commonplace with every passing fintech trend, as bankers, fearing the technology’s potential to disrupt the banking business and threaten their bonus pool, hoping to cash in on the next technology enabled ‘revolution.’
This post was published at Zero Hedge on Jul 26, 2017.
Authored by Louis Cammarosano via Smaulgld.com,
Citizens Claim Right to Create Scriptural Euros.
Citizens conjure Euros out of thin air, just like banks.
Create Your Own Currency!
Because the top cryptocurrencies, Bitcoin and Ethereum are open source, any one can create their own cryptocurrencies. While the proliferation of cryptocurrencies has central banks concerened, another more insidious and perhaps greater threat to central banks’ monopoly on money creation is the issuance of scriptural euros by citizens.
The following video was published by The Dollar Vigilante on Jul 13, 2017
Jeff is interviewed on The American Intelligence Report, topics include: fiat currency and the Freemasons, the Federal Reserve and the end of the gold standard, the real causes for the US civil war, bypassing the current economic system entirely, gold silver and bitcoin, privacy and crytocurrencies, altcoins, Litecoin, changes to the bitcoin software, Dash and anonymity, Ethereum, the TDV newsletter’s great track record
Other than buying Ethereum, one strategy has stood out in investing circles – selling US equity market volatility, and as Goldman notes, the profitability of vol-selling strategies has accelerated in the last year. With vol at record lows, and after a long-run of success, Goldman unveils its guide to selling volatility, why it’s a good idea, and how to do it.
Via Goldman Sachs,
We are increasingly asked whether flows into options and VIX selling strategies are pressuring options prices and dampening stock price moves. Indeed, when an investor sells an option, the Market Maker on the other side of the trade ‘delta-hedges’ the portion of the trade where there is not a natural buyer. This ‘delta-hedging’ dampens the volatility of the underlying asset from the time of the trade until expiry, all else equal. In this report, we explore the public data that is available to assess whether options and VIX ETP flows have the potential to contribute to the decline in implied and realized volatility. While a significant portion of the options market trades in OTC markets (where public data is sparse), we believe trends in OTC markets are consistent with our findings in the listed markets. In fact, based on our discussions with those that run systematic options strategies, much of OTC volume is recycled into the listed market and likely to influence publically available data.
Why are investors asking if options selling strategies are crowded?
This post was published at Zero Hedge on Jun 28, 2017.
An asymmetric trade is a situation where investing a relatively small amount of money holds the potential of yielding a profit many times the amount of the original sum at risk. In other words, where the risk to reward is skewed massively in the direction of reward.
This took place recently with Bitcoin (BTC). Is this conceptually different from bets made years ago on Microsoft, Cisco, Amazon, or Facebook, which yielded hundreds of percent profit to intrepid investors? Does it have relevance to the possible returns during the next few years for those who hold physical gold and silver?
I would answer “yes” and “yes.”
The current “mania” in the cryptocurrency space – most notably BTC and Ethereum (ETH), along with a few other “app coins” – offers an in-future lesson for a similar setup in the precious metals. (For more on the above topic, see “The Blockchain: A Gold and Silver Launchpad?”
First: This may be the first time ever that an investment “story” has had the ear and investment dollars of a global audience on a simultaneous basis. Individual investors, hedge funds, businesses, and even countries, are sending a torrent of funds, with the effect, to paraphrase Doug Casey’s famous remark, of “trying to push the power of the Hoover Dam through a garden hose.”
This post was published at GoldSeek on Friday, 23 June 2017.
When global financial markets crash, it won’t be just “Trump’s fault” (and perhaps the quants and HFTs who switch from BTFD to STFR ) to keep the heat away from the Fed and central banks for blowing the biggest asset bubble in history: according to the head of the German central bank, Jens Weidmann, another “pre-crash” culprit emerged after he warned that digital currencies such as bitcoin would worsen the next financial crisis.
As the FT reports, speaking in Frankfurt on Wednesday the Bundesbank’s president acknowledged the creation of an official digital currency by a central bank would assure the public that their money was safe. However, he warned that this could come at the expense of private banks’ ability to survive bank runs and financial panics.
As Citigroup’s Hans Lorenzen showed yesterday, as a result of the global liquidity glut, which has pushed conventional assets to all time highs, a tangent has been a scramble for “alternatives” and resulted in the creation and dramatic rise of countless digital currencies such as Bitcoin and Ethereum. Citi effectively blamed the central banks for the cryptocoin phenomenon.
This post was published at Zero Hedge on Jun 14, 2017.