"I remember the first time I ever saw a $100 bill. I was dumbfounded. It was more money than I had ever seen in my young life.... $100 could practically pay the rent in a lot of places back in the 80s. That’s obviously no longer the case...$100 simply isn’t the awe-inspiring symbol of wealth that it used to be. And that’s because of inflation."
If we refuse to recognize the high utility value of USD and its global ease of flow, then we will continue to misunderstand the demand for the dollar and its appreciation. Bitcoin is quite different from the USD but it, too, has unique characteristics that drive its demand and thus its valuation.
The price of Bitcoin seems to have briefly exceeded the price of gold for the first time this week; however, this comparison is completely arbitrary. Gold remains the only true global money with a size and volatility comparable to that of fiat currency.
– Gold gains in USD, GBP, EUR, CAD, AUD, NZD, JPY – Gold gains in CNY, INR & most emerging market currencies – Gold surges 31.5% in British pounds after Brexit shock – Gold acted as hedge and safe haven in 2016 … for those who need safe haven
Beware the commodity "black swans" in 2017, at least according to Barclays. The British bank warns that raw materials markets from oil to metals face the a high likelihood of disruptions, which among, other include a default by Venezuela, riots in Chile, a trade war with China, more terrorism in Turkey, and even a Fukushima-type disaster in China.
“140 characters of unfiltered Trump is likely to create tensions .... Markets that are already shaken by the fallout from Brexit, the coming elections in Europe and indeed the increasing specter of cyber warfare could again see a safe-haven bid.”
Bitcoin is no stranger to extreme fluctuations. As Visual Capitalist's Jeff Desjardons notes, for each of the last four years, the cryptocurrency has either been the best or the worst performing currency – with nothing to be found in between.
"It’s quite shocking to me... It’s very harmful to the shareholders... It is manipulation and it’s used frequently. Yet, the exchanges don’t step in because the exchanges are owned by the banks... the self policing system doesn’t work because no one wants to police themselves because they’re all making too much money."
Rumors of the Trumpflation rally's death have been greatly exagerated, and not only is the Dow 20,000 back on the radar, following a 124 point surge in Dow futures, bringing the "key psychological level" back within 100 points, but European stocks rose for a third day and entered a bull market, rising 20% from theor lows set last February, following strong Chinese manufacturing and services PMI data.