Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Stock Market Enters Early Summer Correction Trend Forecast Time Window - 11th May 21
GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
Cathy Wood Bubble Bursts as ARK Funds CRASH! Enter into a Severe Bear Market - 11th May 21
Apply This Technique to Stop Rushing into Trades - 10th May 21
Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
CHIA Getting Started SSD Crypto Mining by Plotting and Farming on Your Hard Drives Guide - 9th May 21
Yaheetech Mesh Best Cheap Computer /. Gaming Chairs on Amazon Review - 9th May 21
Breaking US Trade Embargo with Cuba - Build 7 Computers in 14 Hours Before Ship Sales Challenge - 9th May 21
Dripcoin Applies New Technology That Provides Faster Order Execution - 9th May 21
Capital Gains Tax Hike News: Was It REALLY to Blame for Sell-off? - 7th May 21
Stock Market Transportation Index Continues To Grind Higher - 7th May 21
SPX Stock Market Correction Arriving or Not? - 7th May 21
How to Invest in an Online Casino? - 7th May 21
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21
Last Chance to GET FREE Money Crypto Mining with Your Desktop PC - 2nd May 21
Will Powell Lull Gold Bulls to Sweet Sleep? - 2nd May 21
Stock Market Enough Consolidation Already! - 2nd May 21
Inflation or Deflation? (Not a silly question…) - 2nd May 21
What Are The Requirements For Applying For A Payday Loan Online? - 2nd May 21
How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part1 - 1st May 21
INDIA COVID APOCALYPSE - 1st May 21
Are Technicals Pointing to New Gold Price Rally? - 1st May 21
US Dollar Index: Subtle Changes, Remarkable Outcomes - 1st May 21
Stock Market Correction Time Window - 30th Apr 21
Stock Market "Fastest Jump Since 2007": How Leveraged Investors are Courting "Doom" - 30th Apr 21
Three Reasons Why Waiting for "Cheaper Silver" Doesn't Make Cents - 30th Apr 21
Want To Invest In US Real Estate Market But Don’t Have The Down Payment? - 30th Apr 21
King Zuckerberg Tech Companies to Set up their own Governments! - 29th Apr 21
Silver Price Enters Acceleration Phase - 29th Apr 21
Financial Stocks Sector Appears Ready To Run Higher - 29th Apr 21
Stock Market Leverage Reaches New All-Time Highs As The Excess Phase Rally Continues - 29th Apr 21
Get Ready for the Fourth U.S. Central Bank - 29th Apr 21
Gold Mining Stock: Were Upswings Just an Exhausting Sprint? - 29th Apr 21
AI Tech Stocks Lead the Bull Market Charge - 28th Apr 21
AMD Ryzen Overclocking Guide - 5900x, 5950x, 5600x PPT, TDC, EDC, How to Best Settings Beyond PBO - 28th Apr 21
Stocks Bear Market / Crash Indicator - 28th Apr 21
No Upsetting the Apple Cart in Stocks or Gold - 28th Apr 21
Is The Covaids Insanity Actually Getting Worse? - 28th Apr 21
Dogecoin to the Moon! The Signs are Everywhere, but few will Heed them - 28th Apr 21
SPX Indicators Flashing Stock Market Caution - 28th Apr 21
Gold Prices – Don’t Get Too Excited - 28th Apr 21
6 Challenges Contract Managers Face When Handling Contractual Agreements - 28th Apr 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How the Bitcoin Bubble Burst Could Lead to a New Golden Era

Currencies / Bitcoin Nov 29, 2018 - 07:02 PM GMT

By: MoneyMetals

Currencies

One of the greatest asset bubbles of all time appears to have just burst.

It’s not the stock market. Despite recent downside volatility amidst bubble-like valuations, so far stocks have merely entered a correction.

Cryptocurrencies, on the other hand, have entered into a full-blown meltdown. Bitcoin will go down in history for its extraordinary rise from zero to a high of $19,783 on December 17, 2017. Its subsequent fall may be one for the history books as well.


In the second half of November, Bitcoin prices fell through a months-long trading range, triggering heavy selling down to around $3,500. Anyone unfortunate enough to buy Bitcoin at over $19,000 now faces a loss of more than 80%. Losses are also staggering for Bitcoin Cash, Ethereum, Ripple, and many others.

The story of digital currencies won’t just be a matter of their rise and fall, however. Some may bounce back. Bitcoin and its progeny may embark on another spectacular run to dizzying new heights.

Then again, they may not. Since the leading crypto coins aren’t backed by anything tangible, their value is entirely speculative.

Nevertheless, the utility of digital currency is very real. The blockchain enables individuals to engage in online transactions outside the banking system. And Money Metals Exchange is by far the most capable company in America when it comes to allowing precious metals customers to use cryptos as a payment medium.

It’s not just radical libertarians and black-market merchants who value decentralized alternative payment systems. Such alternatives have the potential to offer practical advantages to users, such as avoiding fees on international cash transfers or credit card transactions.

Assault on Politically Disfavored Businesses Continues

For some, finding alternatives to conventional financial tools is a must. Banks and credit card processors are increasingly denying services to customers for their political views.

It happened recently to one of the most prominent alternative social networking sites, Gab, merely because it allows controversial views to be expressed by its members – in the same way that a viewpoint neutral email or telecommunications provider does.

Gab founder Andrew Torba recently posted this message to his followers:

Gab has been denied by multiple banks during the underwriting process for a new payment processor. Multiple processors supported us, their banks did not.

Gab is the supreme example of why bitcoin exists. We will be integrating BitPay asap because Coinbase already banned us.

Outside of this we will be setting up a PO box to mail cash/checks to.

This is what we need to resort to in order to have any revenue. This is the level no-platforming has reached.

As the threat of ideologically motivated financial de-platforming by banks and payment processors grows, so does the need for robust alternative payment systems. However, as noted by Torba, major Bitcoin exchanges such as Coinbase are behaving like politically correct bank intermediaries – blacklisting people they don’t like from the crypto marketplace.

They are also collecting personally identifying information on their customers and handing it over to the IRS. The only way Bitcoin holders can absolutely guarantee their privacy is to never put their transactions on the blockchain ledger – i.e., never use their Bitcoin for anything.

The problems with Bitcoin are numerous – slow transaction confirmations, excessive energy consumption, and risk of loss due to loss of digital key, theft, fraud, and potential government crackdowns.

The biggest fundamental problem with Bitcoin and other unbacked cryptos is the lack of any sound basis for valuation. That is a problem that can be addressed by putting real assets on the blockchain, but a degree of counterparty risk would remain.

Overstock CEO Patrick Byrne is investing in blockchain businesses that aim to tokenize publicly traded companies. He sees this as a way to decentralize Wall Street and end share price manipulation by large institutional traders.

Gold-Backed Cryptos Are Not Yet Safe

Gold bugs are eyeing digital currencies backed by physical precious metals. There are many technical and legal challenges still to be worked out, and there are likely to be a few scammers in the mix as well.

But optimists hold out hope that one day it will be possible safely and reliably to use gold or silver on the blockchain to buy shares of stock or perhaps even real estate all without having to convert to dollars or go through the banking or brokerage system.

Digital gold could emerge as a leading default store of value in lieu of dollars or Bitcoins – which would drive huge new demand for the metal.

That’s the bullish case for blockchain and its possible integration with sound money. There is also a bearish case.

What if governments and central banks co-opt the digital currency space as part of a war on cash?

International Monetary Fund chair Christine Lagarde suggested in a recent speech that if central banks issues their own cryptocurrencies, they “could satisfy public policy goals, such as financial inclusion, and security and consumer protection; and to provide what the private sector cannot: privacy in payments.”

Globalist central monetary planners may claim to have our “inclusion,” “security,” “protection,” and “privacy” as their primary concerns. Their real concerns are to drive out competition to fiat currencies and accelerate the move to an all-digital economy where paper bills and coins are abolished, and private transactions are impossible.

Federal Reserve officials have so far denied they plan on issuing a digital “Fedcoin.” But they have looked into it.

In the dynamic and rapidly evolving alternative currency space, it is impossible to predict exactly what new government interventions, technological innovations, or market iterations will drive the next major trend.

Precious metals may play a growing role in backing alt-coins. Either way, they will continue to play an important role in the portfolios of investors who want to protect themselves from the risks inherent in digital and paper wealth.

Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2018 Stefan Gleason - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in