By Renegadeinvestor.co.uk
An overview of the Bitcoin and Precious Metal Markets in Q1 2016 , including technical analysis and a look at Central bank actions.
I also ask the question is Bitcoin severely undervalued?
Monthly Archives: March 2016
Is the price of Bitcoin undervalued by several thousand dollars?
Via reddit user u/ThePlagueDoctor0
[Editors Note: For the strong correlation previously seen between the Metcalfe Value and the price of Bitcoin to normalise; the price of Bitcoin needs to be somewhere in the region of $5,000 – $8,000 per coin.
If this chart holds some validity in estimating the current value of Bitcoin, right now Bitcoin could be trading at a extreme discount to its Net Asset Value (NAV)]
Australian Government “Committed” to Removing Double Taxation of Bitcoin; Backs FinTech Growth
Via cryptocoinsnews.com,
[Editors Note: One of Bitcoins most important attributes is the fact that it is a global network and currency that completely bypasses the control and influence of individual nation states.
Because of this, like we have seen recently in the EU and now Australia; startups and entrepreneurs can continue to take advantage of regulatory arbitrage which should continue to put a cap on regulatory pressures from any one country, as these countries compete to attract the top talent.
This is one of the most important factors pushing back against the rhetoric and claims from the likes of Jamie Dimon that any one government can simply ban the use of this new technology]
A real test of this trend could come as governments become more desperate to support ailing fiat currencies and potential capital flight.
- “The Government is committed to addressing the ‘double taxation’ of digital currencies and will work with the industry on legislative options to reform the law relating to GST as it is applied to digital currencies”
Gold calls Fed bluff as rates stay unchanged at 0.5% – Rate hike expectations collapse
#Gold spikes 2.5% $30.00 as Fed softens rhetoric and expectations of more rate hikes in 2016; no real recovery. pic.twitter.com/PgFGgDIhHP
— Renegadeinvestoruk (@sharkybit) 16 March 2016
Venezuela Bitcoin exchange shows heavy volume and exponential growth in transactions
Screen shot Via reddit user u/pinhopro
[Editors Note: Growing Sovereign default and bail-in risk looks to be a catalyst for growing interest in Bitcoin]
Global heat map of CDS (Credit Default Swap) risk
Via zerohedge.com..
[Editors note: Countries in the red and orange could become a hotbed for Bitcoin adoption, as these countries scramble to implement last gasp capital controls, bail-ins and cash bans in order to delay the likelihood of state level insolvency and financial collapse.
- “Sovereign Credit Default Swaps (CDS) are financial contracts that measure the risk of default on sovereign debt: the higher the spread, the greater the risk of default.”
Source BofA (Click for larger image)
Chinese exports crash 25%, Yuan devaluation in focus
Via zerohedge.com
[Editors Note: yet more strengthening in the Bitcoin fundamentals as Chinese currency devaluation escalates which could lead to increasing Bitcoin and precious metal inflows]
- “Things are not getting better in China as Exports crashed 25.4% YoY (the 3rd largest drop in history), almost double the 14.5% expectation and Imports tumbled 13.8%, the 16th month of YoY decline – the longest ever”
- “As a reminder, China’s policy response has already been announced. The National People’s Congress set a target for 13% growth in money supply in 2016, up from 12% in 2015, and a 3% of GDP fiscal deficit, up from 2.3%. In other words: more lending and more public spending to provide a boost to demand.”