Hedge Funds Abandon Gold To Chase Bitcoin

Since the beginning of December, gold and bitcoin have drastically diverged.

For the first 11 months of this year, gold and bitcoin were largely positively correlated (albeit low at 0.25). That changed at the start of December...

 

As it seems gold's relative tranquility was shunned in favor of Bitcoin's chaos...

 

And hedge fund managers dumping their gold positions and, as the chart below shows, piling into digital gold...

Who knows how long this regime shift will last, but we do note that Gold/Bitcoin is at a critical level of overbought-ness once again...

Comments

juggalo1 Dec 18, 2017 5:13 PM Permalink

I don't understand the practical argument for bitcoin.  Why is the bitcoin network more valuable than the Litecoin network or the Dogecoin network or the ethereum network or any other network yet to be published?  Their transaction costs and time are not reasonable to be used as a currency.  So long term, how do you establish a price range for bitcoin?  If you're just using it as a buy and hold investment, then how can it be superior to gold?  Especially given the theft risks to ordinary individuals.

83_vf_1100_c juggalo1 Dec 18, 2017 5:44 PM Permalink

  It is like arguing why Justin Bieber mattered. There was no good reason but get between a 14 yr old girl and the Beebs and you would collect claw marks and tears. Bitconners are just as rabid about their stupendously overpriced 1s/0s. I predict in 2018 there will be wailing and gnashing of teeth as bitfanboys watch their digital fortunes crater faster than they rose. $3 bil backing $180 bil (or whatever inflated figure it is at this given minute)... the math does not work. So to answer your question, there is nothing to understand. There is no there there.   If you are in bc, get out now and laugh at the muppets who bled for your profits. Or, let Mr Greed sweet talk you with promises of estates in Canada and Emu ranches in Zimbabwe but don't complain when he comes in your mouth and dumps you.  I am done. Let the fanboys punch that red arrow. I'll take a gold maple bath to salve my wounds.

In reply to by juggalo1

Nature_Boy_Wooooo juggalo1 Dec 18, 2017 5:34 PM Permalink

I could give you my Ledger Nano and 24 hours to steal everything that is on it before I wipe the device clean and resrtore my wallet to a new location. You would never be able to steal the funds in my wallet before I noticed it missing and wiped it clean even if you had a team of highly skilled hackers. Chances are you would lock yourself out of the device before I wiped it.Give me your safe full of gold with 24 hours and a team of crack heads and I will empty your safe within hours.Suggesting Bitcoin is easier to steal than gold is the most ridiculous thing I have heard.  

In reply to by juggalo1

83_vf_1100_c Nature_Boy_Wooooo Dec 18, 2017 6:00 PM Permalink

2 weeks back an exchange had appx $64 mil stolen. Mt Gox. Seems like there was another big exchange theft in between. Some .gov recently figured out they have $8 bil worth of bc they siezed (stole) from bad guys (citizens). All my coins (au and ag) are still where I stashed them. Ukraine seems to have lost their gold. Canada, ditto. BC gets stolen or lost regularly as does gold. Accounts get hacked, chains get snatched. Some day in the not very distant future the IRS is gonna come knocking asking why you have not paid income taxes on your digits. You can argue with the guy in the black cape and sickle. You can argue with guy in the cheap suit with a badge. They both win the argument every time.

In reply to by Nature_Boy_Wooooo

83_vf_1100_c Dec 18, 2017 3:53 PM Permalink

  Hedge fund managers rolling the dice with client's retirement money. I am conservative with my savings so will never be crazy rich. Or, miserably broke like folks who go all in on the latest ponzi get rich quick schemes. A retirement tip for bc speculators. Don't eat the dogfood, eat the dog. No matter how hard you try, you just can not do a properly rare Alpo steak burger.

rejected Dec 18, 2017 3:53 PM Permalink

Well, the techies can have their 'virtue money'. And they can make fun of me but if gold goes down much more I'm might consider buying as much as I can. Only wish I could be here a hundred years from now to see which one is still here.

MusicIsYou Dec 18, 2017 3:50 PM Permalink

Just enjoy the show that follows bitcoin just disappearing one of these days. It wouldn't surprise me if their isn't a self destruct code preexisting written into the bitcoin program once it's purpose has been fulfilled.

DrData02 MusicIsYou Dec 18, 2017 4:00 PM Permalink

A lot of companies have self destruct built into their organizations via the greed of their management.
OTO, the possibility of something disappearing is no argument against acquiring it.
I bought Bethlehem Steel shares at $4.50 and it disappeared some time after I sold them at $19.50. What's so bad about that?

In reply to by MusicIsYou

Son of Captain Nemo Dec 18, 2017 3:57 PM Permalink

Which means Bitcoin is worth more than Gold!...

Well it must be "SO"... because the "powers that be" are telling me... It's "SO"!!!

Logical next step to make the herd listen to their "elders" just one more time that everything is "safe" to throw my money into the next thing they will destroy!...check

Exponere Mendaces Dec 18, 2017 3:41 PM Permalink

It makes perfect sense.Volatility is the lifeblood of trading. Bitcoin has plenty of it, and despite the fear-mongering that goes on when suits say "its too volatile" the real story is, traders love that shit. So they are flocking to Bitcoin, and dumping gold.Gosh, guess all those gold holders will be happy - at least you'll get that price "stability" that you pine for.Too fucking funny. 

silverserfer Dec 18, 2017 3:40 PM Permalink

who gives two flying fucks about douchbag gold futures traders. They did not even have a single ounce of physical gold. Go ahead trade cryptos, there money to be made there at least. The gold market is about who is buying the physical supply. The zombie gold futures market has been a dead rotting corpse for many years now.

Nature_Boy_Wooooo Dec 18, 2017 3:37 PM Permalink

The real story here is how ever since futures have opened on Bitcoin, Bitcoin prices stop pumping during the week and alt coins pump to the moon and then when the weekend hits Bitcoin pumps.LOL..... it's as if the crypto community is owning Wall Street. Wall Street think they are owning Bitcoin prices all week while we enjoy huge gains in our alt coins.....and then when the bankers clock out for the weekend we pump Bitcoin and crush their future bets.....LOL......thus is going to end badky for the banks. 

Don Pancho Dec 18, 2017 3:33 PM Permalink

Sorry...BTC is NOT digital gold. It's digital fools gold that is pumped on the greater fool theory and will be dumped when there are no longer any fools...