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Bitcoin Surges 55% In Month - Chinese Moving Capital Into Bitcoin and Gold
Bitcoin Surges 55% In Month - Chinese Moving Capital Into Bitcoin and Gold
Bitcoin has been surging in value since mid October and surged more than 20% yesterday alone. At one point, it hit a yearly high of more than $491 (see chart).
CoinTelegraph
In August, bitcoin fell to a low for 2015 near $200 amid turmoil in the Chinese and global stock markets.
But bitcoin transaction volume has been growing. Blockchain.info data shows that unique bitcoin wallet addresses—which are how users manage and trade bitcoin—are at an all-time. Some have multiple bitcoin addresses, but such a spike suggests there are new users as well.
It’s not entirely clear what’s driven the most recent price gains. There is an assertion in an article on the front page of the FT today (Bitcoin surges as Chinese flock to Russian fraudster’s site) that the gains are due to Chinese people flocking to bitcoin in a giant pyramid scheme run on a Russian fraudsters website:
The price of the cryptocurrency bitcoin surged on Wednesday to its highest in more than a year amid a wave of Chinese testimonials for a “social financial network” called MMM, which bears the hallmarks of a pyramid scheme.
New members of MMM have to buy bitcoins to join the scheme, which is the brainchild of Sergey Mavrodi, a former Russian parliamentarian since jailed for fraud.
Although the article is unbalanced and simplistic. The truth regarding the root cause of the price movement of any market is of course much more complex - and there are many supply and demand issues to be considered.
Source: CoinDesk
Most bitcoin experts once again see Chinese demand as key. As China has been devaluing its currency, the yuan, throughout the year and the Chinese are aware of the growing risks posed to the yuan and indeed the dollar and other fiat currencies.
Also, their recent experience of the stock market crash has made bitcoin and of course gold more attractive again. Hence, the surge in demand for gold in China again. China's gold buying rose 7.83% year on year to 814 tons in the first three quarters, industry data from the China Gold Association (CGA). showed yesterday.
There are increasing concerns of capital controls in China and Chinese investors and companies are seeking to diversify internationally and move savings and capital out of China.
Bitcoin is an easy way for people to swap out of yuan. Goldman Sachs analysts estimated earlier this year that 80% of bitcoin volume is exchanged in and out of the Chinese yuan. Once converted to bitcoin, the owners can then swap back into other fiat currencies and indeed physical gold.
We see value in having an allocation to bitcoin and see it as complementary to owning physical gold and silver. It is clearly more volatile than gold and even silver and is not proven as a hedging instrument and safe haven asset. Therefore, it is more speculative and merits having a lower allocation than gold and silver bullion.
DAILY PRICES
Today’s Gold Prices: USD 1118.00, EUR 1024.09 and GBP 724.99 per ounce.
Yesterday’s Gold Prices: USD 1130.90, EUR 1029.82 and GBP 733.95 per ounce.
(LBMA AM)
Gold lost $10.20 yesterday to close at $1107.50. Silver was also down by $0.20 for the day closing at $15.09. Platinum lost $8 to $953.
Read more on the GoldCore.com blog
IMPORTANT NEWS
Bitcoin rockets higher, some blame pyramid scheme – CNBC
China gold consumption rises 7.8% – Chinadaily.com
Gold sits near monthly lows, US jobs, Fed speaks eyed – fxstreet.com
Gold Touches One-Month Low as Fed Rate Speculation Mounts – Bloomberg
PM Narendra Modi to launch gold monetisation scheme today, response seen muted – Reuters
IMPORTANT ANALYSIS
Bitcoin Price Explodes Higher – Gold and Silver Next? – Max Keiser
Bitcoin Is Still Going on a Gigantic Tear – Bloomberg
Mario Draghi gives the V-sign but a dangerous QE day looms – Telegraph
Bullion Bank Leverage Soars to Near 300:1 – Financial Survival Network
There Are Now 293 Ounces Of Paper Gold For Every Ounce Of Physical As Comex Registered Gold Hits New Low – ZeroHedge
Read more News & Commentary on GoldCore.com
Download Essential Guide To Storing Gold In Switzerland
Breaking News and Research Here
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The beauty of bitcoin is that it is programmable. Here I show everyone how you can lock your BTC into the price of gold, and even use said price lock to ensure predictable physical gold delivery -http://veritaseum.com/index.php/homes/1-blog/114-using-veritaseum-and-ve...
So let me get this straight, I can redeem my Shit Coin for Shit Paper or "program" it to shit paper and still not have shit in the end. Im thrilled, so the price of gold will be manipulated and distorted even further by more "virtual paper gold" Its like getting some trinket on a video game and people actually believe it? I really dont get it.
So Reggie if I read this correctly it is an "order" to buy GLD? So paper gold Reggie? This order would need to increased multifold to qualify for the redemption rules of GLD would it not?
This - is also fairy dust rainbow skittle shitting imaginary fakey doo paper re-hypothecated bullshit paper you have absolutely no control over.
Physical assets are real, tangible, life supporting commodities.
All the rest is an illusion.
Even your fucking historic Zero Hedge post spear and loincloth cheesecake photos have more value, especially if autographed, Reggie.
Physical, bitchez, physical. Get physical.
It is an order to buy the value increase/decrease of GLD, expressed in bitcoin relative to the USD.
So I do understand. You are now flogging an option on an over the weekend open bet on the price of a "questionable" ETF" So Reggie you are flogging phantom spec value (bitcoin) bet against/pro a dubious paper gold tracker.
And your original intent was to show how YOUR new bitcoin "could actually be redeemed-in or give benefit of allocated gold AND THAT IS NO GLD REG. GLD?????? Fool
Sounds like Fonestar is riding another rocket
1oz Silver American Eagles €12 @ EurGold
https://www.eurgold.eu/silver/silver-coins/american-eagle-1oz-silver-coi...
How can they sell this cheap, silver coins go for at least €16
Looks shady
> it's therefore impossible to sell fake or 'paper' bitcoins that don't exist
Not true. Gox proved that. Coinbase and other exchanges make it difficult to move bitcoins bought from them.
Anybody who holds their bitcoins on an exchange deserves to be sheared. One of bitcoins key features is free storage and instant transport to any other wallet on the planet so there is no need to hold them on an exchange.
Agreed. The exchanges count on ol' fashoned human greed to be able to scam people.
Coinbase is a Goldman Sachs op so I'd expect no less.
Muppet shearing in 5.4.3.2.1...........
Hilarious.
Chinese graft and theft money being laundered out of the country, and then transformed into physical precious metals holdings.
THAT - is fucking funny.
Cue the ghost of Fonestar for some witty blockchain drinking ditties.
I fail to see how avoiding capital control's using blockchain technology indicates the stupidity of a muppet , what I find quite funny is your ignorance. Please keep it up it's quite amusing !!!
Well, seeing the elite of China ramp up shitcoinn while using it as a Silk Road wasnnabe to transfer their stolen Peoples Money out of country is one thing.
Then, as a self preservation feature, they are cashing out the transfer into gold and other physical holdings. Silk Road from yuan to physical, instead of drugs.
In country stolen paper to out country physical holdings.
Yes indeedie, quite amusing !
But there might be one lone individual who came by his money honestly and doesn't appreciate the control freaks called goobermint telling him where he can or cannot take it.
True, that - but probably less than .001 percent of money flows statistically speaking. All blessings to them and their families.
"the gains are due to Chinese people flocking to bitcoin in a giant pyramid scheme run on a Russian fraudsters website:"
So... BitCoin AND Gold are being bought like mad. BitCoin surges 55%, Gold drops.
OK.
insane
PM's can be sold naked - therefore shorting or supressing price , this cannot be done with bitcoin because it uses an open ledger and it's therefore impossible to sell fake or 'paper' bitcoins that don't exist , unlike PM's which are held in vaults and cannot be audited in realtime.
All that is mentioned is the recent volatility, not price rise, is due to a Russian ponzi scheme. They mention the drop from 490 to 400 but nothing of where it came from, Fortune posted a clip of Dimon denouncing bitcoin, and mentioned Mt Gox but nothing on Gemini, the EU VAT tax ruling, or Chinese Capital controls. I'm still skeptical of the crypto currency but pathetic biased stories with clear ulterior motives do nothing but increase my interest in bitcoin. I will continue to make small allocations.
And bitgold?
Bitgold works for me. Bitcoin? I cannot see how it has any underlying value.
Bitgold? allocated gold held in Brinks vaults worldwide. I believe Bitgold has a colocated server in Brinks that allows the almost instant tracking of physical bullion as it enters and leaves Bitgold "allocations".
Bitgold. Stupidest idea ever: take a neutral protocol that allows transacting without trusted third party and mash it with whole lot of counterparty risk. Just why would you do this?
It is well worth 55 minutes for an easy to understand comparison of Central banking/fiat; bitcoin and bitgold. Do your own due diligence. I CONFESS to being a Goldmoney client for many years and new client of the bitgold platform; however they (all 3 above) make me nervous. If you cannot hold it in your hand? yes but what is the least costly and secure alternative?
http://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2015/11/03/gold-2-0-gold-s-role-in-fintech-the-future-of-money/play/stream/16335
I think you are describing the current fiat regime rather well Commander. Take a neutral protocol? without a trusted third party (a bank, SWIFT) and mash it with a whole lot of counterparty risk ( bail-ins, bans on cash, banking holidays, government/economic collapse, taxation, regulation, cross-border tracking).
Banks make me paranoid. Why would you continue to do this?
The counterparty risk with bitgold is that the gold can be taken or re-hypothecated rendering the bitgold protocol meaningless.
Yep, bitgold sure looks good. But bitcoin is distributed, and you can choose which exhanges to deal with. Personally, I prefer bitgold, but for the paranoid bitcoin is probably better.
http://zhc0.com
Shove your fake electronic Shitcoin wannabe up your hooptie.
And, it is NOT A ZERO HEDGE COIN CRYPTOCURRENCY UNLESS YOUR NAME IS TYLER DURDEN.
Methinks he mints his coins in either gold or silver, you Australian pimp wanker.
you are a truly ugly human being.
Yeah, sure. I just tell it like it is - the truth.
YOU CAN'T HANDLE THE TRUTH !
This is Fight Club, not lib tard honey boo boo here's your gold star, you were great, and try better, cause you were 49 out of the field of 50 club.
So, fuck you.
The fact you that you cannot put up one single coherent argument against bitcoin without resorting to personal attack prooves you are simply brimming with fear , anger and jealousy. It surely must be bad for your health and extremely frustrating for you , despite that I actually find many of your comments quite amusing. But if you had any point whatsoever you would explain it , but you don't apart from some Flat Earth cave man rantings about holding it in your hand. We now trade with people globally in a high speed global economy , gold , and especially silver is useless for high speed transactions in such an economy. It;s possible you may live in some tiny little village in south america where nobody trades with anybody outside their local community and you have never been outside your village - that would certainly explain your ignorance and frustration - not that I have anything against people living in small villages in south america that is.
I guess it depends on where your paranoia lies. I am paranoid about the bitcoin exchanges and the fact that there is absolutely no underlying value to it.
Others would be paranoid about the limits of having Brinks physical storage of their gold (which Brinks vaults and where). Both platforms are offering worldwide ability to transact without banks intervention at a cheaper cost. Bitgold? Well my holding account can fluctuate in value (along with spot and local fiat prices). Bitcoin "value" is bid up but has, for me, no underlying value that cannot disappear like any speculative stock.
There are Bitcoin exchanges with full-reserve and real-time audits possible. You should withdraw your money if you don't trust your exchange. Users can always leave exchanges for P2P trading, paypal, forums or ATMs too.
If the gold is physical it can be taken. No amount of block chain whatever can stop that from happening , regardless of juristiction it is still physical and if (when) governments get desperate then it's gone . Just like bitcoin , if your gonna hold PM then hold it yourself.