Bitcoin To Be Digital Gold, Galaxy Digital Founder Talks on ‘Bitcoin Recovery Phase’

So during a Bloomberg Daybreak show in Europe, today on Feb 13, 2019, Mike Novogratz of Galaxy Digital discusses something very interesting that many investors, traders and crypto enthusiasts were waiting to listen. He says ‘we are in the fresh phase of recovery in crypto’.
We’re at Recovery in Crypto
In a discussion, Mike talks about the bitcoin bubble, occurred in late 2017, the nature of institutional investors and the future of Bitcoin. During the interview today, Mike was quite optimistic about the future of Bitcoin. While asking the phase of crypto enthusiasts are experiencing at present, Mike recalls price of Bitcoin in end 2017 and states it as ‘a fantastic bubble in crypto’.
We had a fantastic bubble in crypto. Last year we realized how painful the bubble can be.!said Mike
Pointing towards 2018 that showed 98% loss, then 68% and then 65% eventually, he calls it ‘a recovery phase’. Noting these stages in the crypto market, Mike believes that last year, the crypto market had a recovery’.
Bitcoin is Going to Be Digital Gold
Talking about the future of Bitcoin, he says that Bitcoin would be different from other cryptocurrencies, pointing Bitcoin as a digital Gold. He states that Bitcoin is a sovereign which will be surrounded by guns as it must have security. In his words;
Bitcoin gonna be a Digital Gold. There is gonna be where sovereign money – a place where you have sovereign money. US money is not Chinese money, it is sovereign. Sovereignty would cost a lot, it should cost a lot. Bitcoin is  digital.
He further compare Bitcoin with gold, as such he says ‘we keep gold, surround by guns because it is a store value’. Moreover, Mike believes not every cryptocurrency needs the same level of security. He says;
Every cryptocurrency is need not to be surrounded by guns and every blockchain doesn’t need the same level of security, doesn’t need to be surrounded by Gun.
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Source: CoinGape

BitMEX Research On Next Global Crisis: Retail Banking & Payment System Unlikely to be Under Threat

In its latest report, BitMEX research tries to answer the question of “When is the next global financial crisis going to happen?” In this report, BitMEX argues that the epicenter of financial risk has shifted from banks to asset management industry; and a “repeat of 2008” that is retail banking deposits and payment systems being under threat is unlikely. The fragility is rather most significant in corporate debt investment funds and unconventional debt investment vehicles.
It attempts to address the issue of Bitcoin and crypto enthusiasts and investors asking about the next crisis that is driven with the assumption that it will occur every decade or so, will have a positive impact on Bitcoin price and will result in questioning the integrity of banking and electronic payment systems. For Bitcoin price, it argues, if Bitcoin “does respond well in the next crisis (when liquidity is constrained), that will be a huge positive for Bitcoin and the store of the value investment thesis.”
Bank Balance Sheets in Developed Markets are Relatively Healthy
Over the last decade, bank management and regulators have operated in the shadows of 2008 and as a result, bank balance sheets and capital ratios have significantly strengthened. It further points out that main western banks have not expanded their balance sheets at all since the global financial crisis.
Growth in Leverage in the Asset Management Industry
The data show that, unlike the banking sector, the asset management industry has expanded considerably since 2008 and at the same time, leverage also appears to have increased.

New Corporate Debt Market Vehicles
The replacement of the role of the banks in the corporate debt markets has resulted in the rapid growth of interrelated, non-mutually exclusive investment structures. The non-bank mechanisms for providing corporates with financing viz. Collateralized Loan Obligations (CLOs), Leveraged Loans, Private debt deals, and Bond fund ETFs and mutual funds have grown considerably since the last global financial crisis.
Corporate Debt Markets Conditions
Corporate debt levels have increased considerably since 2008, with gross debt of Russell 3000 companies now totaling US$11 trillion, compared to just over US$8 trillion at the time of the last crisis. Corporations have taken advantage of the new investment products and low-interest rates to borrow money at record levels.

A Portfolio with a “Lesser Extent” of Bitcoin
Banks are more crucial to the financial system and society than asset managers, mentions the report and if asset managers come under pressure, retail and corporate deposits should be safe. This means the coming crisis could be less intense than in 2008. However, the “potential for government intervention to mitigate the impacts of the crisis may be more limited than in 2008.”
The data do not seem to suggest that we are necessarily right on the precipice of a major crisis, states BitMEX Research, “it could be several years away.” It concludes with the advice to adjust a portfolio with long-dated corporate bond ETF, hedge funds specializing in volatility, VIX calls, gold, and “maybe to a lesser extent, even Bitcoin.”
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Source: CoinGape

MtGox Currently Controls Bigger Bitcoin Market share than the Gold Reserves of the Swiss Central Bank

Bitcoin has been characterized as the digital gold that according to some bitcoin proponents is better at being gold than gold itself. Bitcoin is also predicted to surpass the $8 trillion market cap of gold and emerge as the store of value.
Now, Tuur Demeester, the Founding partner at Adamant Capital, has calculated the Bitcoin circulating supply in equivalence of Central banks’ gold reserves and shared the following data.

“The current value of Dutch Central Bank gold is about $25 billion, so in order to buy 69k BTC (the mined Bitcoin equivalent of the Dutch gold reserve) it would only need to sell 1% of its gold, i.e. 492 gold bars,” shared Demeester.
He further did a comparison of the Bitcoin still left with Mt Gox with that of the central banks’ gold reserves.
“Allows for fun comparisons, e.g.: The MtGox Trustee currently controls 137,891 BTC, which is bigger in terms of market share than the gold reserves of the Swiss central bank.”
Currently, a group of Mt. Gox creditors has banded together to create a movement called “GoxRising” with the goal of reviving the exchange and present a detailed Civil Rehabilitation plan.
The movement has been proposed by Brock Pierce who reportedly bought 12 percent stake owned by Jed McCaleb, founder of Mt. Gox for 1 BTC. “We have the rise, the fall, and it’s been in liquidation and bankruptcy in Japan for over five years. But the story is not over,” Pierce had been quoted as saying,
“Like Game of Thrones, the last season of Mt. Gox hasn’t been written. What kind of ending do we want to make for it? I’m a Joseph Campbell fan, so I’m obviously going to go with a hero’s journey, with a rise and a fall, and then a rise from the ashes like a phoenix…”
Reportedly, Pierce has no interest in the past gains of Mt. Gox but wants a happy ending of this story. Pierce also wish to start a new chapter by relaunching Mt. Gox. He further plans to offer its 20,000 creditors a stake in the future of the company.
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Source: CoinGape

Researcher: Bitcoin Will Easily Surpass Market Cap of Gold at $8 Trillion

Crypto’s most fervent crusaders have sought to keep their heads up in this drastic, bone-crushing bear market. While optimism has often taken the form of the “institutional herd is coming” narrative, a number of Bitcoin (BTC) natives have begun to revisit the asset’s underlying value proposition.
And no, in their eyes, BTC isn’t digital cash. Instead, the flagship cryptocurrency has quickly taken up the mantle of being a digital form of gold, rather than digital cash through and through.
Max Keiser, an anti-establishment figure and popular industry commentator, put it best when he claimed that Bitcoin is a “peer-to-peer electronic gold system.” In a later tweet, he lauded Bitcoin’s nature as “unparalleled digital gold,” calling it simply “world-changing.”
Related Reading: No One Needs A Crypto ETF & Bakkt, BTC Already Is Money: Crypto Investor
There’s Not Enough Bitcoin To Go Around
Scarcity is one of Bitcoin’s mainstays. According to a Twitter thread from Dan Held, a former product manager at Blockchain, Satoshi Nakamoto himself mentioned his brainchild’s scarce nature in emails, BitcoinTalk threads, and through other mediums of digital communication. While the cryptocurrency godfather, to so speak, seemingly never mentioned the words “digital” and “gold” in a single sentence, Bitcoin has been extolled as a replacement (not alternative) for the precious metal.
In a recent tweet, Willy Woo cemented this belief system. The Australian crypto researcher, known for his in-depth technical analysis of cryptocurrencies, explained why he expects for Bitcoin’s market capitalization to “easily exceed” surpass that of traditional gold.

This is the reason why I think Bitcoin will easily exceed golds market cap.
*Mathematical scarcity beats perceived scarcity*
Perceived scarcity comes only from the technological limitations of today. https://t.co/TtIh41zz3F
— Willy Woo (@woonomic) February 1, 2019

Woo, citing a space-related article outlining the infantile off-Earth mining industry, noted that mathematical scarcity, which Bitcoin enlists, “beats perceived scarcity.” Referencing the article, which claimed that trillions, even quadrillions &  quintillions of dollars worth of gold and other precious metals could exist in near-Earth asteroids, Woo noted that “perceived scarcity comes only from the technological limitations of today.”
In other words, gold’s hegemony as the de-facto store of value may be usurped over time, especially as humanity’s relentless demand for gold continues and as on-Earth supplies wane, creating a gold rush in outer space.
Misir Mahmudov, the supposed brother of short-term crypto bear Murad Mahmudov, echoed Woo’s pro-scarcity sentiment in a different context. Misir, a student of Austrian Economics, noted that even if every millionaire in the U.S. proper wanted to obtain one BTC, “they wouldn’t be able to.” The crypto enthusiast added that there will always be fewer BTC than millionaires in the world, accentuating Bitcoin’s hard cap of 21 million coins.

If every millionaire in the US wanted to have just 1 bitcoin they wouldn't be able to.
There will always be fewer bitcoins than there are millionaires in the US (let alone the whole world).
Ignore this at your own risk.
— Misir Mahmudov (@misir_mahmudov) January 31, 2019

Although Misir’s statement may seem flawed, especially considering that CNBC report claims 10.7 million Americans have seven-figure net worths, this crypto researcher is likely taking other factors into account. Per previous reports from NewsBTC, a research paper from Chainalysis, a New York-headquartered crypto analytics unit, revealed that up to 3,790,000 BTC could be lost to the ether.
While this is already a jaw-dropping sum in and of itself, as that amount of cryptocurrency clocks in at a value of $13.25 billion, the figure is only excepted, nay slated to swell. Case in point, on Thursday, major Canadian crypto exchange QuadrigaCX divulged that it had purportedly lost access to its cold storage wallet, as the death of the upstart’s founder killed operations and logistics.
Moreover, it is presumed that the Winklevoss Twins, Tim Draper, along with hundreds of other so-called “crypto OGs” have millions of BTC under lock and key, and have no intention to liquidate their holdings in the near future. Venture capital heavyweight Tim Draper alone, who paid $18 million for his first batch of Bitcoin, owns 29,656 coins at a bare minimum, while his entrepreneur son has likely matched his father’s holdings.
Semantics and exact specifics aside, Misir’s point was there’s not enough Bitcoin to go around, and that if demand for the asset surges, supply won’t be able to keep up. This simple belief of rapidly waning supply and dramatic demand, which is only underscored by the backdrop of BTC evolving into a global reserve asset, could single-handedly propel the cryptocurrency past its previous highs and beyond.
What Does This Mean For The BTC Price?
But what would Bitcoin’s classification as the second coming of gold do for its value?
In the eyes of Lou Kerner, the answer is simple. Speaking with Bloomberg, the CryptoOracle founding partner noted that as consumers continue starting to come to the realization that gold underperforms Bitcoin, the asset could easily surpass $100,000 apiece. Kerner added that he sees the U.S. dollar as a Ponzi scheme, which could be a catalyst for money to flow into BTC in the future.
The Winklevoss Twins, the two founders of the Gemini Trust, believe Kerner’s thought process. The two preeminent industry insiders explained that BTC is simply a better version of gold, adding that the only thing the precious metal has on the cryptocurrency is a 3,000-year head start. Twin Cameron, breaking down the “Bitcoin is a digital form of gold” argument, remarked that if you boil it down, the digital asset is better at fungibility, scarcity, portability, and divisible than the precious metal itself.
Featured Image from Shutterstock
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Source: New feedNewsBTC.com

Dollar Starting to Lose the Battle against Bitcoin as the Popular Foreign Currency

According to the latest chart, Bitcoin is apparently becoming a popular foreign currency. The leading cryptocurrency is surely becoming a global phenomenon, however, the fact that Dollar has been around since 1792, Bitcoin has still a way to go.
Bitcoin – A Global Phenomenon
Bitcoin is currently down 82 percent from its all-time high at around $3,450. The leading cryptocurrency is expected to hit its bottom sometime around this year with more losses coming its way.
However, according to the latest data shared by Dennis Parker of Xentagz, Bitcoin’s price crashing down might be seen as a buying opportunity than being on a death spiral, at least in comparison to Dollar.

Dollar is starting to lose the battle against #Bitcoin as the most popular foreign currency pic.twitter.com/LiiV9IiKzv
— Dennis Parker⚡️ (@Xentagz) January 29, 2019
Well, not everyone agrees with this analysis as one Redditor commented, “Are we seriously assuming that Google Search trends are a good proxy for this? I mean clearly buying Bitcoin is a more complex task that requires some internet research, while buying dollar has been a de-facto action known to common-folk for decades, thus requires much less “google search”.”
Another one agreed, “…Kuwait Dinar to USD vs volume of Bitcoin purchase from Kuwait …” Nobody wants to see that chart because Bitcoin will not compare. In fact, bitcoin trading volume to fiat currencies will be so small relative to the USD, that it might even be nearly impossible to see. USD is the reserve currency/king of the world.
Dollar Has been Around Since 1792
It makes sense that the chart couldn’t be on the point as the dollar has been around for a long time. According to ADVFN,
“The dollar was chosen to become the monetary unit for the USA in 1785. The Coinage Act of 1792 helped put together an organised monetary system that introduced coinage in gold, silver, and copper. Paper notes or greenbacks were introduced into the system in 1861 to help finance the Civil War.”
In comparison, Bitcoin has been around for only a decade now. However, it’s also worth noting that countries like Venezuela and others from all around the world that are going through an economic crisis are leaning towards Bitcoin and cryptocurrencies. Also, countries like Russia, China, India, and Iran among others are working on de-dollarization that have upped the interest in Bitcoin and affected the demand for US Dollar.
However, we are still a long way from beating the US Dollar as the popular foreign currency. But the fact that people are searching about Bitcoin and that too all over the globe is a good sign for the leading cryptocurrency and the crypto market as a whole.
 
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Source: CoinGape

Bitcoin & Cryptocurrencies Are Not a Safe-Haven like Gold – World Gold Council Report

In its latest report “Investment Update: Cryptocurrencies are not a safe-haven,” World Gold Council states cryptocurrencies may have a role to play in financial market but they aren’t a viable substitute to gold as a safe haven due to the price crash in late 2018 and Bitcoin futures market’s declining volume in the fourth quarter.
Bitcoin & Cryptos No Substitute for Gold
Bitcoin and cryptocurrencies to act as a safe-haven during the times of currency, a financial, or economic crisis is a running narrative for a long time now. However, the World Gold Council has discharged it completely. In its recent report, it shares how Bitcoin failed to demonstrate qualities associated with being a safe-haven.
“In Q4 2018, as global stock markets experienced their worst quarter since 2009, cryptocurrencies had a prime opportunity to demonstrate qualities associated with safe havens like gold. However, cryptocurrencies, such as bitcoin, behaved like risky assets and fell while gold rallied.”
In its research, World Gold Council notes that though comparisons have been made, it says there are several reasons that state, “cryptocurrencies are no substitute for gold.” The primary point it puts forward is gold being less volatile and having a more established market than cryptos.
“Gold is less volatile and enjoys a more liquid and established market. It has a well understood role in an investment portfolio and minimal overlap with cryptocurrencies on many sources of demand and supply.”
Focusing on the events of late 2018 when Bitcoin and various cryptocurrencies fell down to their yearly lows, the report says,
“As events of late 2018 indicated, the perceived ability of cryptocurrencies to serve as a liquid, safe-haven hedge and store of value in times of market stress, did not hold.”
Bitcoin, Bitcoin Futures, Nasdaq, & Gold
According to the World Gold Council, cryptocurrency price crash in late 2018 resembled “a technology stock as it fell 55% during the quarter, while the Nasdaq fell 19%.”

It further states that Bitcoin and Nasdaq were “heavily correlated (0.69)” which hasn’t been apparent before the market pullback. During this period, on the other hand, gold rallied 9.4 percent and was “strongly inversely correlated with the Nasdaq at (-0.73).”
Moving onto the Bitcoin future market, in the fourth quarter when the “true market stress” occurred since the financial crisis, it fell sharply while the volumes in gold and global markets rose.
“The support of a strong two-way market was lacking, suggesting bitcoin – unlike gold – does not provide the liquidity needed in times of financial tension.”

“While cryptocurrencies may have a role to play in the financial markets, their behaviour in an environment of market uncertainty underscored that they are not a viable substitute for gold as a safe-haven.”
 
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Source: CoinGape

No More Bitcoin Craze? Expert says BTC Investors Now Turning to Gold

Bitcoin’s crash is turning the investors towards gold yet again says Jan Van Eck, CEO of Van Eck Associates. However, Crypto industry experts have shared that gold is rather “physically vulnerable” and bitcoin is better at being gold than gold itself.
The Tide has been Turned
Bitcoin has crashed over 80 percent from its all-time high at $20,000 in December 2017. But it couldn’t deter the investors from buying this digital asset, until now, if this ETF strategist is to be believed.
Jan Van Eck, CEO of Van Eck Associates in an interview with CNBC’s “ETF Edge” said that Bitcoin investors are now moving to the traditional commodity that is gold.
“I do think that Bitcoin pulled a little bit of demand away from gold last year, in 2017. Interestingly, we just polled 4,000 bitcoin investors and their number one investment for 2019 is actually gold. So gold lost to bitcoin and now it’s going the other way.”
During the period Bitcoin rallied and made its all-time high in December 2017, gold surged 4 percent in the same period. According to another expert, Tim Seymour, founder, and Chief Investment officer at Seymour Asset Management, the move now made toward gold will be difficult to turn back to Bitcoin.
“Not only have we lost all liquidity on the underlying [commodity] but truly outside of the existential blockchain argument, it’s been very difficult to argue store of value which is really what we started hearing about,” said Seymour. “Gold is a store of value and there’s no disputing that.”
But Bitcoin is Better at Being Gold than Gold!
This year, according to VanEck whose firm created the most well known gold ETFs, the best way to play is through gold ETFs, “The shares have been acting tremendously well over the last two or three months … It’s starting to zig when the stock market zags. In the majority of the days in Q4 when the S&P was down, GDX was up. So that zigzag, that decoupling makes me really excited about gold shares as a diversifier.”
Well, VanEck’s firm in association with SolidX and Cboe is also the one that is proposing a Bitcoin ETF. Though the proposal has been revoked by Cboe for now, it is expected in the future the approval would be acquired.
Also Read: Experts Predict Gold to Surge over Fiscal Woes & USD Crisis, What about Digital Gold-Bitcoin?
Recently, Tyler Winklevoss who runs Gemini stated Bitcoin would rather surpass gold’s market cap.
“Our thesis around Bitcoin’s upside remains unchanged. We believe Bitcoin is better at being gold than gold. If we’re right, then over time the market cap of Bitcoin will surpass the ~$7 trillion market cap of gold.”
For some, the VanEck’s comment might be seen as not motivating but for others, they are actually hopeful as one Bitcoin enthusiast commented on Reddit,
“$7.8 trillion gold picking on $0.063 trillion bitcoin… The fact that bitcoin and gold are even compared this much is promising.”
However, as Nick Szabo, computer scientist and cryptographer said, gold is “physically vulnerable.” And as another enthusiast said, “Where is this gold. At least I keep control and possession of my Bitcoin.”
The post No More Bitcoin Craze? Expert says BTC Investors Now Turning to Gold appeared first on Coingape.
Source: CoinGape

Bitcoin Has All the Chances to Become the New ‘Digital’ Gold, and Here’s Why

CoinSpeaker

Bitcoin Has All the Chances to Become the New ‘Digital’ Gold, and Here’s Why

Bitcoin has good chances to win a competition with gold and become the premier alternative economic option in the world.

Bitcoin Has All the Chances to Become the New ‘Digital’ Gold, and Here’s Why

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Source: CoinSpeaker

Bitcoin [BTC] prices positively correlated to gold, finds research

The Wall Street Journal reported on December 28 that according to data from research firm Excalibur Pro Inc., Bitcoin [BTC] has traded with a correlation of 0.84 to gold over the past week. This is not entirely unexpected news, they say, as a lot of investors from traditional markets have put money into the BTC network, and so Bitcoin behaves a traditional asset, albeit a very risky one.
A score of -1 means BTC and gold are perfectly inversely related. A score of +1 indicates a perfect correlation between BTC prices and gold, meaning BTC price climbs when gold prices also increase.
Bitcoin and other cryptocurrencies have always courted money influx from institutions. This backing in research and development of new use cases fuels the growth of the cryptocurrency, both in value and popularity. The Journal cites examples of institutional money like the Bitcoin Investment Trust, sold by Grayscale Investments. All through 2018, Grayscale’s Bitcoin Investment Trust (GBTC) has been worth more than $1B, but dropped below this figure and is now close to $900M. Notably, GBTC is the only stock offered on the stock market whose primary asset is Bitcoin.
The Journal holds the position that Bitcoin’s correlation to traditional markets will only become closer as time progresses. Traditional capital continues to go into cryptocurrency markets, and some cryptocurrencies attempt to attract further institutional backing by conforming to regulations and building services like futures trading. Data from CoinDesk shows that venture capital in the investment and blockchain area has been growing over the years, reports the Wall Street Journal, from $96M in 2013 to an all-time total of over $2B in 2017’s tail.
Bitcoin was dubbed the “digital gold” and believed to be a store of value, much like gold. During the bull run of late 2017, one could be forgiven for thinking that Bitcoin has very little in common with how traditional assets behave and would be an alternate financial system. Yet it had a very troubled year in terms of prices, down almost 80% from peak high in December 2017. As an asset, with money flowing in from traditional investors, it is quite plausible that BTC prices rise and fall in accordance with gold, an established store of value.
The post Bitcoin [BTC] prices positively correlated to gold, finds research appeared first on AMBCrypto.
Source: AMB Crypto

Report: Bitcoin Conforms to Mainstream Markets, Strong Correlation with Gold

A recent report in the Wall Street Journal details how Bitcoin is becoming an increasingly mainstream asset and is starting to develop strong correlations with traditional assets, including Gold.
The report cites the increase in institutional funding, increasing venture capitalist (VC) investments, and growing mainstream adoption as possible factors behind its increasing correlation with traditional markets. Despite this, the WSJ report also notes that Bitcoin is still far more volatile and riskier than mainstream investment vehicles, like the stock market or precious metals markets.
Bitcoin Developing Strong Correlation with Gold 
Recently, talk within the cryptocurrency community regarding Bitcoin’s status as a safe haven investment – one that traditional investors turn to amidst instability in the traditional markets – has increased significantly as the US stock market faces growing volatility.
Historically, Gold and other precious metals have been the most popular safe haven investments, used by investors and institutions alike to hedge their positions within the equities markets. Many cryptocurrency investors hope, or expect, that Bitcoin will ultimately become a “Gold 2.0” that acts as a digital safe haven investment.
Although Bitcoin has never lived through a global financial crisis, statistics regarding its recent correlation with Gold show that it may be moving towards becoming a form of digital gold.
The WSJ report notes that on a scale of -1 to +1, ranging from completely inverted to perfectly correlated, Bitcoin is airing towards being perfectly correlated with Gold, trading at a 0.84 correlation to gold over the past five days. The data used is from Excalibur Pro Inc., a research firm.
Furthermore, Bitcoin also has traded at a 0.77 correlation with Chicago Board of Options Exchange’s VIX index, which measures market volatility and is widely seen as a “fear gauge.”
Institutional Money, Venture Capital Driving Bitcoin to be Mainstream 
The report also notes that Bitcoin’s increasingly mainstream nature is being driven by an influx of institutional funding and more venture capital investments entering the industry.
Recently, news has broken regarding multiple financial institutions entering the cryptocurrency markets, like Fidelity Investment’s institutional-aimed cryptocurrency exchange platform, and the OTC exchange-traded Bitcoin ETF trust sold by Grayscale investments.
The report explains that the Grayscale ETF has grown from having a mere $3.5 million under management in 2013, to highs of approximately $3.5 billion by the end of 2017 at the height of the cryptocurrency bull market. This fund has lost a significant amount of funding throughout the 2018 bear market, and currently has about $900 million in funds under management.
Venture capital investments in the industry have also helped propel it as a mainstream investment, with a significant amount of VC wealth flowing into blockchain and cryptocurrency companies. The WSJ says that in 2013, VC investments in the blockchain and crypto sector totaled at a mere $96 million, swelling to over $500 million by the end of 2016, and then skyrocketing to over $2 billion by the end of 2017.
As more companies release their products aimed at onboarding institutions into the cryptocurrency markets throughout 2019, Bitcoin’s status as both a mainstream investment vehicle and a safe haven investment will become increasingly clear.
Featured image from Shutterstock.
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Gold Demand Rising: Investors Turn to Precious Metal as Safe Haven Asset

Recent global economic concerns and stock market volatility seem to have increased demand for gold as a safe haven asset. The price of the precious metal hit its highest level since June in the yesterday’s trading session.
Investors are turning to the historical store of value in rising numbers to protect their wealth amid geopolitical tensions. Even recent news that gold’s use in manufacturing may be about to sharply decline has not lessened appetites for increased investor diversification.
Gold Prices Increase Over 4.87% in Last Month
Since November 27, the price of gold has increased from just over $1,211 per ounce to today’s price of almost $1,270. This represents over a 4.87% increase in the price of the precious metal.
In a note to clients and investors, the MKS PAMP Group – a precious metals products and services provider based in a Switzerland – stated:
“Gold has been tracking steadily higher through December… On the low side, there appears to be good support at $1,265 and we expect plenty of buying interest around the 200-day moving average at $1,251.”
According to a report in Reuters, much of this increased buying pressure is being driven by geopolitical tensions threatening to disrupt global markets, along with uncertainty in stock prices.
A report in the Wall Street Journal states that the Dow Jones Industrial Average, S&P5600 and Nasdaq Composite were down 1.1%, 1%, and 0.9% respectively after a brief rebound on Wednesday. This brief upswing comes after almost a month of downside for stocks generally.
Sugandha Sachdeva, the vice president of metals, energy, and currency research at Religare Broking Ltd., spoke of the increased demand for gold:
“Gold prices are primarily getting support on the back of safe-haven buying due to concerns about the health of the global economy and heightened volatility in risk assets.”
Demand for Gold Not Mirrored in Bitcoin Market
The price of gold is increasing despite recent reports of Chinese scientists managing to create a substitute for the historical store of value that serves many of the same industrial purposes as the metal yet does not appear similar enough for counterfeiting. Based on the theory of value offered by both gold bugs and many supporters Bitcoin Cash, the gold price should have decreased in line with its suddenly diminishing utility. Evidently, this has not been the case.
It appears that the properties of a known, controlled supply and an inability to reproduce gold are sufficient for it to be deemed an adequate store of value for global investors. It therefore seems odd that Bitcoin, which represents an even sounder form of money than the yellow metal, has not seen a similar increase in demand.
With growing evidence to suggest that utility is not indeed a necessary prerequisite for value, it seems only a matter of time before Bitcoin will be able to provide an uncorrelated safe haven for those wishing to protect their wealth against geopolitical tensions and stock market uncertainty. After all, the most popular digital asset by market capitalisation, hashing power, and overall adoption is even more scarce than gold, whilst offering greater functionality in terms of acquiring, storing, and transferring.
 
Related Reading: Crypto Economist Claims Bitcoin is the “Medicine You Need”

Featured Image from Shutterstock.
 
 
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Scientists Turned Copper into Gold: Can We Expect the Same for Bitcoin?

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Scientists Turned Copper into Gold: Can We Expect the Same for Bitcoin?

Researchers in China have found a way to produce gold which may lead to a serious drop in the gold demand and open new opportunities for Bitcoin.

Scientists Turned Copper into Gold: Can We Expect the Same for Bitcoin?

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Source: CoinSpeaker

Report: Scientists Turn Copper into Gold – Is the Value of the Metal in Question?

Gold is often touted by many as the planet’s best store of value. Those who believe this will often offer the explanation that it it is both finite and has a legitimate use case in the manufacturing of electronic products.
Since humanity’s appetite for the latest electronic gizmos seems is ever increasing, demand for the shiny, yellow metal should always be higher than the supply – thus leading to higher prices. But, what if it was possible to replace the gold used in manufacturing with an altogether cheaper material…?
Chinese Scientists Synthesise Gold Substitute in the Lab
According to a report in the South China Morning Post, scientists from China have managed to create a material that behaves just like gold under certain conditions. They claim it can resist high temperatures, erosion, and oxidisation in a way that has only been previously observed in precious metals. This will certainly lead to a drop in the demand for gold in the manufacturing industry since the new material is much cheaper to create than gold is to buy.
The team of modern-day alchemists from the Dalian Institute of Chemical Physics were able to create the material using copper blasted with heated, electronically charged argon gas. This caused copper particles to be displaced from the surface, which cool to form a thin layer of sand.
This sand-like substance was then placed in a reaction chamber where the team used it to turn coal into alcohol – a process that precious metals are typically best-suited to. Professor Sun Jian and his team wrote of the discovery:
“The copper nano particles achieved catalytic performance extremely similar to that of gold or silver.”
Their findings were published in the journal Science Advances over the weekend, before being picked up by the SCMP.
Although the new material serves the purpose of gold well in various manufacturing processes, it cannot be used to deceive people into believing it really is the much-coveted yellow metal. It retains a similar density to copper and therefore would struggle to trick even those most inexperienced with precious metals.
This fact could mean that it is finally possible to test the hypothesis of gold bugs such as Peter Schieff. Schiff and others have stated numerous times that their favourite precious metal serves as a good store of value because it is used in manufacturing. If their theories hold true, the price of an ounce of the shiny, yellow element should already be dropping upon news of the Chinese scientists’ breakthrough. This in turn could leave an opening for another medium to be used as a planetary store of value, just as gold has historically.
Interestingly, this has not been the case so far. Although it has only been five days since the story initially broke, the price of an ounce of gold has gradually increased from around $1,259 on December 20th to its current price at the time of writing of around £1,274.
This supports the theory of many of Schiff’s critics that it is not the fact that a material is useful that is important in its role as a store of value but rather that it is finite. It therefore figures that something offering even more scarcity than gold would serve the purpose of a store of value even better.
Recommended Reading: Steve Wozniak: ‘Only Bitcoin is Pure Digital Gold’
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Ron Paul Poll: 50% in Favor of Bitcoin as Long-Term Investment

Former U.S. House Representative Ron Paul recently polled his Twitter followers on which long-term investment vehicle they’d prefer if given a $10,000 gift and the choice of what to invest in. The overwhelming majority selected Bitcoin as their choice for a 10-year hold.
Ron Paul Twitter Poll Shows Preference for Bitcoin
Ex-Texas Congressmen and thrice-failed Presidential candidate Ron Paul took to his Twitter soapbox this week.
He was seeking an answer to what his followers would choose if given a gift of $10,000 and the option of which investment instrument to put the cash into for the long-term. The only catch was the investment of choice needed to be held for 10 years.
The poll offered up the choice between Federal Reserve notes, United States 10-Year Treasury Bonds, gold, and digital gold: Bitcoin – which has recently reached new one-year lows after 11-months of an ongoing bear market.
Bitcoin received the highest number of votes at 50% of all respondents. Federal Reserve Notes, 10-year Treasury Bonds, and gold all received 2, 11, and 37 percent of the vote, respectively.
Considering the return alone of each asset type over the last decade, it shouldn’t come as a surprise that Bitcoin received the overwhelming majority of votes, even despite it being a relatively new, often misunderstood, and even demonized asset for its use in criminal activities, conspiracy around price manipulation, contributions to energy consumption, unrivaled price volatility, and more.
Related Reading: Survey: 72% of Institutional Investors Believe Crypto Prices Would Rise in a Recession
10-Year Investments: A Comparison Against Bitcoin
Federal Reserve Notes is just another term for USD paper currency, meaning the $10,000 would be held directly in cash for 10 years. Given the fact cash isn’t technically an investment vehicle and can actually lose value over the course of 10 years due to inflation, it’s not shocking to see this option receive the least amount of the votes.
U.S. 10-year Treasury Bonds have offered investors return rates that have fluctuated between 2-3% over the last 10 years. Treasury Bonds are considered among the safest investment types as there is virtually no default risk, given the fact the government can just print more money to pay off its debts.
Over the last 10 years, gold has provided investors with a 65.7% return, all while providing peace of mind. Gold is often considered a safe-haven asset during times of uncertainty. And with many financial and economic analysts predicting a global market crash and subsequent recession on the horizon, gold is a sound 10-year investment.
Bitcoin however, over the 10 years since inception has gone from being virtually worthless, to being worth $20,000. Even at Bitcoin’s currently traded price of around $5,000 – the digital gold equivalent, as its pegged – has brought investors over 166 million percent gains over the last 10 years.
There’s a saying in cryptocurrency investing suggesting to “never invest more than you can afford to lose” that does put Bitcoin in a category by itself in terms of risk, but since the $10,000 was a gift in the first place investors are even more willing to put their investment at risk for a chance of substantial wealth.
Considering the exponential gain outlined above stacked against extremely moderate returns by comparison, it’s almost more surprising that Bitcoin didn’t receive an even larger number of the votes.
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JP Morgan’s Ethereum [ETH] based blockchain Quorum to tokenize gold bars

Quorum, an Ethereum [ETH] based blockchain which was built specifically for enterprises, will now be used to tokenize gold bars. Quorum can also be modified and redistributed as it is open source and will be used to allow sustainable miners to earn a premium on global markets. This indicates that new trading opportunities will pave the way for the banking and finance sector.
The assets can be tokenized to effectively distinguish them, which can then be used to move them onto a distributed ledger.
Blockchain technology gained traction after it was introduced in Bitcoin[BTC], which then moved onto other cryptocurrencies and is now being introduced in the banking industry. However, the technology isn’t used to move money; it’s used to manage the inefficiencies in the maintenance of ledgers and to manage global liquidity.
Head of JP Morgan’s blockchain initiatives, Umar Farooq, said:

“I would say blockchain will have a radical impact on some of our businesses because some businesses are fundamentally geared toward putting people together, providing the trust between parties.”

Farooq added that they are building private networks but there is a long-term thought process on what happens when one gets to a point where one need to do private-public convergence – a connection. According to him, at that point, if you are in some ways a derivative of a public platform, it could become easier. He commented:

“We are not at a point where we believe public networks are right for financial institutions or businesses in general. But you never know what is going to happen in five years.”

JP Morgan’s new initiative was first reported by the Financial Times. The bank had stated:

“We continue to believe distributed ledger technology will play a transformative role in business, which is why we are actively building multiple blockchain solutions. We’re not going to comment on speculation, but Quorum has become an extremely successful enterprise platform even beyond financial services and we’re excited about its potential.”

JP Morgan also announced this October that Quorum will be used to build an Interbank payments platform, along with Australia and New Zealand Banking Group(ANZ) and the Royal Bank of Canada.
Written by,
Syed Suhaib
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