All posts by Edward Blake

Bitcoin; Why it now belongs in every portfolio

By Tuur Demeester Via nasdaq.com

  • “A technology is called “disruptive” if it creates a new market that first disturbs and then displaces an earlier technology.Bitcoin is potentially such a technology and much more. The fact that it can disrupt the largest and most interconnected marketplace in the world—money, banking and finance—makes it perhaps the most promising investment opportunity of our age”
  • “With a risk-reward proposition this attractive, holding a small percentage of bitcoins in one’s portfolio as a speculation on increased adoption may be one of the wisest investment decisions of our age”

    Read more here…

(Video) One does not simply stop the Bitcoin revolution

By Renegade Investor

Always have a wide range of resources where you get your Bitcoin information & analysis from. Mainstream Media & establishment figures often have a symbiotic relationship with the legacy financial & political systems, which Bitcoin directly competes with.

And Remember, especially with regards to the latest PBOC rhetoric, ‘All the forces in the world are not so powerful as an idea who’s time has come’

Bitcoin, a growing Safe haven from the Global War on Cash

The Global War on Cash

Via  @ visualcapitalist.com

[Editors Note:  Below is an excellent Infographic which gives a great overview of  the escalating  global war on physical cash.

In my opinion the war on cash is totalitarianism dressed up as a moral crusade. If governments genuinely cared about drug money laundering, terrorism funding and money laundering they would:

  1. End the war on drugs (Which escalates drug prices on the Black market and incentivises drug trade)
  2. End fiat currency which facilitates the funding of large scale foreign conflicts (A major catalyst for terrorism) without direct taxation of the general citizenry, and political repercussions.
  3. Actually criminally prosecute banks who have carried out large scale money laundering.

(Point 2 is why people believe that Bitcoin in the long run could actually end large scale military conflicts)

Whilst I dont like fiat currency, the risk of removing the physical aspect of currency and making it purely digital  risks dangerously centralising control of global currency with Banks and Governments which will no doubt overtime, turn into a draconian knightmare in light of the ongoing global financial crisis.

As well as yet another fundamental reason to invest, Bitcoin offers people a way to escape the war on cash, this move towards totalitarianism and a way to enable a decentralised financial system which upholds Sound money, liberty, freedom and Volutaryism as core principles. 

Whilst I dont condone any illegal use of Bitcoin as described above, as a society I believe we need to address the core reasons for these certain nefarious uses of cash, rather than thinking a ban on cash is going to resolve these problems]

See the infographic here…

Japan Bitcoin trading volume and interest growing

Via  @ themerkle.com

Quoine Becomes a top 5 Bitcoin Exchange due to Increased JPY Trading

  • “Things are evolving rapidly in the world of Bitcoin and cryptocurrency. Singapore-based exchange Quoine has catapulted itself to become one of the world’s five largest cryptocurrency exchanges out of nowhere. Most of this momentum can be attributed to the increased JPY trading in the Bitcoin market, as there are only a few exchanges supporting this currency”
  • “That being said, Quoine will still have a long road ahead before they can officially overtake bitFlyer in JPY trading volume. Right now, there is a 12,600 BTC difference between both platforms over the past 24 hours, although that situation can change at any given time. It is nice to see Japan warming up to Bitcoin all of a sudden, albeit that move was not entirely unexpected given the recent changes imposed by Chinese Bitcoin exchanges

Read more here…

 

Understanding Blockstream

By Nick Tomaino via thecontrol.co

NT: What is the mission of Blockstream?

  • “AB: We believe in a future where users are empowered to control their own assets. Our mission is to take the core secure P2P functionality of Bitcoin and extend it to other digital assets so that decentralized, P2P finance can come to fruition”
  • “In terms of what we’re actually building, we’re primarily focused on taking the sidechains innovation and applying it to financial institutions so that they can empower users around the world to access and move digital assets in a more efficient manner”

Read more here…

How Chinese is Bitcoin? — Part 1: Trade Volume

By Neil Woodfine via blockunchained.com

  • “Chinese exchanges generate most of their revenue from CNY withdrawal fees [4]. And these CNY withdrawal fees are tiered based on each trader’s trade volume, encouraging traders to trade as much as possible to lower the cost of withdrawing their profits”
  • “But overplaying China’s trade volume leads to the wrong conclusion that bitcoin’s value is purely derived from its role as a speculative plaything for Chinese investors. It leads people to make the mistake that there is existential risk to bitcoin in the Chinese government’s treatment of bitcoin trading, or just Chinese traders’ whimsy”What’s really at work is that China is increasingly leading the world in internet technology

Read more here..

Bitcoin/Gold price parity; why it matters

By Renegadeinvestor

Before we start it’s important to note that on a technical level Bitcoin/Gold price parity is not really a true comparison when you take into account the much larger supply and market cap of Gold; Approx 183,600 tons (6 billion troy oz) & $8tn market cap V Bitcoins 16 million unit supply and $18bn market cap.

But the Bitcoin/Gold price parity event could have huge psychological impact.

    • It will create yet more MSM coverage adding to the hype cycle and boosting the already mega bullish Bitcoin market tone.
    • It will add to the conversation that Bitcoin started 8 years ago on the very nature of money and currency and why sound money is so important.
    • Bitcoin’s safe haven attributes will be taken more seriously than ever as more and more people hit the pivotal cross over.

    • Precious metal investors already frustrated with admitted manipulation and alleged Gold/Silver price suppression may start to diversify into Bitcoin as FOMO builds. Even a small % capital move out of the Gold market could have a huge impact on the Bitcoin price.

  • As a result of the Bitcoin/Gold price parity event, more people will become aware of Bitcoins superior monetary attributes that will drive endless use cases, its utility, its value and its market price.

As Reuters reports:

‘Authorities will also be able to seize cash or precious metals carried by suspect individuals entering the EU’

‘People carrying more than 10,000 euros [slightly over $10,450] in cash already have to declare this at customs when entering the EU. The new rules would allow authorities to seize money below that threshold ‘where there are suspicions of criminal activity,’ the EU executive commission said in a note’

Although in the long run, I expect Bitcoin to almost entirely replace Gold as a safe haven asset, before its dismissed in the present, its important to take a look at demographics.

With an ageing populace holding a large amount of capital and unfamiliar with new digital currencies with GUI’s  that are not yet ready for main stream adoption. Although we could see increased diversification into Bitcoin , I still expect large capital inflows into precious metals as global debt and currency debasement continues unabated.

But Bitcoin/Gold price parity is now a matter of when not if and looking at the chart below it looks like its going to be very soon.

(Source: Zerohedge.com)

 

Bitcoin Hits All-Time High as Currency Controls Drive Fear

By Olga Kharif Via bloomberg.com

  • “The digital currency, which just turned eight years old, reached $1,140.64, which was higher than the $1,137 it hit in November of 2013. In December, bitcoin also surpassed its previous all-time high in total market capitalization, which now exceeds $16.1 billion”
  • “The latest increase was driven by capital or currency restrictions in countries ranging from China to India and Venezuela, where people purchased bitcoin to protect their savings, as well as increased adoption by investors. The digital currency beat every other currency, stock index and commodity contract as an investment last year”

Read more here… 

(Almost All time highs at the Bitfinex exchange (USD)