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How the Lightning Network for Bitcoin Will Be Adopted Through Ordinal Inscriptions

July 6, 2023 Thomas Prendergast Leave a comment

How the Lightning Network for Bitcoin Will Be Adopted Through Ordinal Inscriptions

Jul 6, 2023 #Bitcoin, #bitcoin news

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How the Lightning Network for Bitcoin

Ordinal inscriptions are emerging as a new use case for the Bitcoin blockchain, and they are expected to drive more efficient use of the limited block space. This will lead to broader adoption of the Lightning Network as a scaling solution for Bitcoin as a global currency. The Lightning Network's growth will provide a trustless alternative to centralized payment processors, expanding Bitcoin's reach and appeal.

One of the unique features of Bitcoin is its flat fee and data structure, which means that the cost and block space required to send $1 in BTC is equal to those for sending $1 billion in BTC. This quirk has made it difficult for Bitcoin to be used for low-value transactions, which is where the Lightning Network comes in. By enabling off-chain transactions, the Lightning Network allows for fast, cheap, and scalable micropayments, making Bitcoin more practical for everyday use.

Ordinal inscriptions are essentially non-fungible tokens (NFTs) that are used to represent a specific order or sequence. They are being used to create unique digital collectibles and art, and their popularity has driven up transaction costs across the Bitcoin network. However, this demand for ordinal inscriptions is also driving innovation in layer 2 solutions like the Lightning Network, which are essential for Bitcoin to become a viable global currency.

Understanding Bitcoin and the Lightning Network

Bitcoin is a decentralized digital currency that uses a peer-to-peer network to enable transactions without the need for intermediaries such as banks or financial institutions. Transactions are recorded on a public ledger called the blockchain, which is maintained by a network of computers around the world.

The Lightning Network is a layer 2 network built on top of the Bitcoin network that enables faster and cheaper transactions. It uses smart contracts to create payment channels between two parties, allowing them to transact without broadcasting their transactions to the entire network. This reduces the load on the Bitcoin network and makes transactions faster and cheaper.

The Lightning Network has gained popularity in recent years as a scaling solution for Bitcoin. It has been hailed as the solution to Bitcoin's scalability problem, which has been a major obstacle to its adoption as a global currency. The Lightning Network offers a trustless alternative to centralized payment processors, expanding Bitcoin's use cases beyond just a store of value.

There are several Bitcoin Lightning Network analytics platforms that provide real-time data on the network's performance and usage. These platforms allow users to monitor the network's capacity, fees, and other metrics, which can help them optimize their transactions and improve their overall experience.

Overall, the Lightning Network is an exciting development in the world of Bitcoin that has the potential to revolutionize the way we transact online. As more users adopt the Lightning Network, we can expect to see faster and cheaper transactions, increased adoption of Bitcoin as a global currency, and a more efficient use of the limited block space on the Bitcoin network.

The Role of Ordinal Inscriptions in Bitcoin Adoption

Ordinal inscriptions have the potential to play a significant role in driving the adoption of Bitcoin's Lightning Network. The ability to create NFT-like inscriptions on the Bitcoin blockchain opens up new possibilities for the use of Bitcoin beyond just financial transactions.

Ordinal inscriptions allow users to create digital artifacts on the Bitcoin blockchain for storage, trade, and exchange. This capability opens up new possibilities for Bitcoin, making it more versatile and useful for a wider range of applications.

One of the key benefits of ordinal inscriptions is that they allow for the creation of unique, identifiable assets on the Bitcoin blockchain. This is made possible through ordinal theory, which provides a methodology for individually identifying and tracking each individual satoshi throughout the Bitcoin coin supply.

With ordinal inscriptions, users can create unique digital assets that are verified and tracked on the Bitcoin blockchain. This opens up new possibilities for the use of Bitcoin in areas such as gaming, art, and collectibles.

As more applications for ordinal inscriptions are developed, it is likely that we will see increased adoption of Bitcoin's Lightning Network. This is because ordinal inscriptions provide a way to create and verify unique digital assets that can be traded and exchanged on the Lightning Network.

Overall, the role of ordinal inscriptions in driving Bitcoin adoption is significant. By making Bitcoin more versatile and useful for a wider range of applications, ordinal inscriptions have the potential to attract new users and increase the adoption of Bitcoin's Lightning Network.

The Impact of Payment Processors on Bitcoin’s Lightning Network

Payment processors play a crucial role in the adoption of Bitcoin's Lightning Network. As the network continues to grow and gain popularity, payment processors will be essential in facilitating transactions between buyers and sellers.

Centralized payment processors, such as Visa and Mastercard, have dominated the global payments industry for decades. However, Bitcoin's Lightning Network has the potential to challenge their dominance by offering faster, cheaper, and more secure transactions.

Bitcoin's Lightning Network is primed to become the default global payments processor, thanks to its unique combination of Bitcoin's monetary policy and Lightning's transaction network. The Lightning Network is a Layer-2 payment protocol built on top of the Bitcoin blockchain. It enables near-instant payments by using Bitcoin's native smart contract functionality.

While the Lightning Network is still in its early stages of adoption, the prospect of increased adoption looks very promising. In 2021, Visa handled more than $1 trillion in payment volume and close to 20 billion transactions per month. In comparison, the Lightning Network handled about $20 million in payment volume and slightly over 800,000 transactions in February 2022.

Payment processors will be instrumental in driving adoption of the Lightning Network. They will help to bridge the gap between traditional payment methods and the Lightning Network, making it easier for merchants and consumers to transact using Bitcoin.

In conclusion, payment processors have a significant impact on the adoption of Bitcoin's Lightning Network. As the network continues to grow and gain popularity, payment processors will be essential in facilitating transactions between buyers and sellers. The Lightning Network has the potential to become the default global payments processor, challenging the dominance of centralized payment processors such as Visa and Mastercard.

Demand and Market Dynamics of Bitcoin

Bitcoin's popularity has been on the rise since its inception. The market cap of Bitcoin has been increasing steadily, and it has become one of the most valuable cryptocurrencies in the world. The demand for Bitcoin-based tokens has also been on the rise, as more people are looking to invest in the cryptocurrency market.

However, the demand for Bitcoin has not been immune to market dynamics. During bear markets, the demand for Bitcoin has been known to decrease, as investors tend to shy away from risky investments. This has led to a decrease in the market cap of Bitcoin, as well as a decrease in demand for Bitcoin-based tokens.

Despite these market dynamics, the surge of Ordinals demonstrates a significant market that Bitcoin is built to sustain on the base layer. Ordinals have proven demand on Bitcoin, but fees will push users to Layer 2.

The sudden emergence of inscribed Bitcoin blocks has been met with criticism, but it offers a glimpse of how Bitcoin block space will evolve. The popularity of NFT-like Ordinal inscriptions and the experimental BRC-20 token standard has driven up transaction costs across the Bitcoin network. The frothy demand for “stamping” limited block space with new data pushed transaction costs so high that in May 2023, Binance twice had to pause BTC withdrawals, a risky and undesirable step.

In conclusion, while the demand for Bitcoin can be affected by market dynamics, the surge of Ordinals demonstrates a significant market that Bitcoin is built to sustain on the base layer. The emergence of inscribed Bitcoin blocks offers a glimpse of how Bitcoin block space will evolve, and it is expected to drive adoption of Bitcoin's Lightning Network.

Challenges and Solutions in Scaling Bitcoin Network

The limited block space in the Bitcoin network has been a major challenge in scaling the network. As more transactions are added to the network, the block size limit of 1MB becomes a bottleneck, leading to high transaction fees and longer confirmation times. This has made Bitcoin less attractive for everyday transactions, limiting its adoption as a currency.

To address this challenge, various scaling solutions and technologies have been proposed. One of the most promising solutions is the Lightning Network, which uses payment channels to enable instant and low-cost transactions off-chain. This reduces the load on the main blockchain, allowing for more transactions to be processed without increasing the block size limit.

However, the Lightning Network also presents its own challenges. For instance, the network requires users to lock up funds in payment channels, limiting liquidity and making it difficult to route payments across the network. To address this challenge, solutions such as Atomic Multi-Path Payments (AMP) have been proposed, which allow for payments to be split across multiple paths, increasing liquidity and reducing the risk of channel depletion.

Another challenge in scaling the Bitcoin network is ensuring decentralization. As the network grows, the number of nodes required to validate transactions increases, leading to higher resource requirements and potential centralization. To address this challenge, technologies such as sharding and sidechains have been proposed, which allow for the network to be divided into smaller, more manageable parts, while still maintaining decentralization.

Overall, while the limited block space in the Bitcoin network presents a significant challenge to scaling, various solutions and technologies such as the Lightning Network, AMP, sharding, and sidechains offer promising ways to address this challenge. As these technologies continue to evolve and mature, they are likely to play a critical role in driving adoption of Bitcoin as a currency.

Privacy and Security Aspects of Bitcoin

Privacy and security are two critical aspects of Bitcoin that have been at the forefront of discussions since its inception. The decentralized nature of the network has made it an attractive option for many users, but it has also raised concerns about the privacy and security of transactions.

One of the most significant privacy upgrades to the Bitcoin network was the implementation of Segregated Witness (SegWit) in August 2017. This upgrade separated the transaction signature data from the transaction data, allowing for more efficient use of block space and increased transaction capacity. Additionally, SegWit enabled the implementation of second-layer solutions like the Lightning Network, which further enhances the privacy and security of transactions.

At the protocol level, Bitcoin's security is maintained through a consensus mechanism called Proof of Work (PoW). This mechanism ensures that all transactions are validated and added to the blockchain in a secure and tamper-proof manner. However, the PoW mechanism requires a significant amount of computational power, which has led to concerns about the environmental impact of Bitcoin mining.

Privacy is also a concern for Bitcoin users, as the public nature of the blockchain means that all transactions are visible to anyone who has access to the network. To address this, users can utilize various privacy-enhancing technologies like CoinJoin and Schnorr signatures. These technologies help to obfuscate the transaction data, making it more difficult to trace the flow of funds.

In conclusion, while Bitcoin's decentralized nature provides many benefits, it also presents challenges related to privacy and security. However, the implementation of upgrades like SegWit and the development of second-layer solutions like the Lightning Network have helped to address these concerns. As the network continues to evolve, it is likely that additional privacy and security enhancements will be implemented to ensure the continued growth and adoption of Bitcoin.

The Intersection of Bitcoin and NFTs

Bitcoin's Lightning Network has been gaining popularity in recent years as a way to speed up transactions and reduce fees. However, the Lightning Network is not without its challenges, including the need for users to manage channels and the risk of channel closures.

Ordinal inscriptions may provide a solution to some of these challenges by allowing users to create NFT-like inscriptions on the Bitcoin blockchain. These inscriptions can be used to represent ownership of various assets, including non-fungible tokens (NFTs) and even profile picture (PFP) NFTs like the popular Bored Apes.

By inscribing ownership of these assets on the Bitcoin blockchain, users can ensure that their ownership is secure and immutable. This can also help to reduce the risk of fraud and theft, as the ownership of the asset can be easily verified on the blockchain.

While the use of ordinal inscriptions for NFTs is still in its early stages, it has the potential to drive adoption of Bitcoin's Lightning Network by providing a more seamless and secure way to manage channels and assets. As more developers work on ways to integrate ordinal inscriptions into Bitcoin wallets and other applications, we may see a new wave of innovation in the NFT space that is powered by Bitcoin's Lightning Network.

Overall, the intersection of Bitcoin and NFTs is an exciting area of development that has the potential to revolutionize the way we think about digital ownership and asset management. As more users and developers explore the possibilities of ordinal inscriptions, we may see a new era of innovation and growth in the Bitcoin ecosystem.

Bitcoin and Other Cryptocurrencies

Bitcoin is the world's first and most popular cryptocurrency. It was created in 2009 by an anonymous person or group under the pseudonym Satoshi Nakamoto. Bitcoin is decentralized, which means it is not controlled by any government or financial institution. Instead, it is powered by a network of computers around the world that validate transactions and maintain the ledger of all Bitcoin transactions, known as the blockchain.

Other cryptocurrencies have emerged in the wake of Bitcoin's success, such as Ethereum (ETH), Solana (SOL), Shiba Inu (SHIB), Uniswap (UNI), Crypto.com Coin (CRO), and many others. These cryptocurrencies have their own unique features and use cases, such as smart contracts on the Ethereum network, meme tokens like Dogecoin (DOGE), and BRC-20 and ERC-20 tokens that can be used on various blockchain platforms.

Bitcoin's Lightning Network is a layer-two scaling solution that allows for faster and cheaper Bitcoin transactions. It works by creating payment channels between users that can be used to send and receive Bitcoin without having to wait for confirmations on the blockchain. The Lightning Network has the potential to significantly increase the adoption of Bitcoin by making it more practical for everyday transactions.

Ordinal inscriptions, a new development in the Bitcoin space, allows users to create digital artifacts, such as NFTs, on the Bitcoin blockchain for storage, trade, and exchange. While inscriptions could increase the network's overall security budget, it may also increase fees and consistency of fees for Bitcoin miners, thereby increasing mining desirability, and ultimately increasing the network's security.

In conclusion, Bitcoin and other cryptocurrencies are rapidly evolving and changing the way we think about money and finance. The Lightning Network and ordinal inscriptions are just two examples of the innovations that are driving the adoption of Bitcoin and making it more practical for everyday use. As the cryptocurrency space continues to grow and mature, we can expect to see even more exciting developments in the future.

Role of Miners and Transaction Costs in Bitcoin Network

Miners play a crucial role in the Bitcoin network as they are responsible for verifying transactions and adding them to the blockchain. They are incentivized to do so by earning rewards in the form of newly minted bitcoins and transaction fees.

Transaction costs in the Bitcoin network are determined by the supply and demand for block space. Miners prioritize transactions with higher fees as they are more profitable to include in the next block. This has led to a situation where users who are willing to pay higher fees get their transactions processed faster, while those who are not willing to pay higher fees may have to wait longer.

Bitcoin miners have been facing a dilemma in recent years due to the increasing demand for block space and the limited block size. This has led to higher transaction fees and longer confirmation times, making Bitcoin less attractive as a payment option for small transactions.

Ordinal inscriptions can help solve this problem by reducing the amount of data that needs to be stored in each block. By encoding multiple transactions into a single ordinal, miners can process more transactions per block, reducing the demand for block space and lowering transaction costs.

Furthermore, the Lightning Network, a layer-two solution built on top of Bitcoin, can also help reduce transaction costs by enabling off-chain transactions that do not need to be recorded on the blockchain. This can significantly increase the scalability of the Bitcoin network and make it more attractive as a payment option for small transactions.

In conclusion, miners and transaction costs play a crucial role in the Bitcoin network. Ordinal inscriptions and the Lightning Network can help reduce transaction costs and increase the scalability of the network, driving adoption and making Bitcoin a more attractive payment option for small transactions.

Bitcoin as a Global Currency

Bitcoin has often been touted as a potential global currency due to its decentralized nature and borderless transactions. The use of ordinal inscriptions on the Bitcoin blockchain may further drive its adoption as a global currency. With the Lightning Network, transactions can be completed in a matter of seconds, making it a more practical option for everyday use.

The European Union (EU) has been exploring the potential of digital currencies, with some officials suggesting a digital euro could be introduced in the near future. While the EU has not yet made a decision on the matter, the use of Bitcoin as a global currency could provide an alternative for those looking for a decentralized and secure option.

The CEO of Twitter, Jack Dorsey, is a vocal proponent of Bitcoin and has stated that he believes it will eventually become the world's single currency. While this may be a lofty goal, the use of ordinal inscriptions on the Bitcoin blockchain could further drive its adoption and bring it closer to this vision.

In times of war or economic uncertainty, the use of a decentralized currency like Bitcoin could provide a more stable option for individuals and businesses. The ability to transact without relying on a centralized authority can provide a sense of security and stability in uncertain times.

As Bitcoin becomes more widely accepted, it may also become a more practical option for global exchange. The use of ordinal inscriptions on the blockchain can provide a level of transparency and security that traditional financial systems may not be able to match.

Overall, the use of ordinal inscriptions on the Bitcoin blockchain can further drive its adoption as a global currency. While there are still challenges to overcome, such as regulatory hurdles and scalability issues, the potential benefits of a decentralized and secure global currency are hard to ignore.

Frequently Asked Questions

What is the Lightning Network and how does it improve Bitcoin transactions?

The Lightning Network is a second-layer payment protocol that operates on top of the Bitcoin blockchain. It allows for near-instant and low-cost transactions by creating payment channels between users. These channels enable parties to transact with each other without broadcasting every transaction to the Bitcoin network, thereby reducing transaction fees and increasing transaction speed.

Can payment channels like Lightning Network make Bitcoin more scalable?

Yes, payment channels like the Lightning Network can significantly improve the scalability of Bitcoin. By moving most transactions off-chain, the Lightning Network reduces the load on the Bitcoin network and allows for more transactions to be processed. This increased scalability can enable Bitcoin to become a more widely adopted payment system.

How do ordinal inscriptions enhance the security of Lightning Network transactions?

Ordinal inscriptions are a new type of non-fungible token (NFT) that can be used to create digital artifacts on the Bitcoin blockchain. These inscriptions can be used to verify the authenticity of Lightning Network transactions, making them more secure. Additionally, ordinal inscriptions can be used to create unique digital assets that can be traded or exchanged on the Lightning Network.

What are the benefits of using Lightning Network for Bitcoin transactions?

The Lightning Network offers several benefits for Bitcoin transactions, including near-instant transaction confirmations, low transaction fees, and increased privacy. Additionally, the Lightning Network can enable micropayments, which can be used for a wide range of applications, including tipping content creators, paying for online services, and more.

Are there any potential drawbacks to using Lightning Network for Bitcoin transactions?

One potential drawback of the Lightning Network is that it requires users to lock up funds in payment channels. This can limit liquidity and make it more difficult to move funds between different payment channels. Additionally, the Lightning Network is still a relatively new technology and may be subject to bugs or other security issues.

How does Lightning Network compare to other scaling solutions for Bitcoin?

There are several other scaling solutions for Bitcoin, including increasing the block size limit and implementing Segregated Witness (SegWit). However, the Lightning Network offers several advantages over these solutions, including lower transaction fees, faster transaction confirmations, and increased scalability. Additionally, the Lightning Network can be used in conjunction with other scaling solutions to further improve Bitcoin's scalability.

Tim Moseley

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Gold pauses ahead of FOMC minutes release

July 6, 2023 Thomas Prendergast Leave a comment

Gold pauses ahead of FOMC minutes release

Gold prices are near steady up and silver solidly higher in midday U.S. trading Wednesday. Short covering from the futures traders was featured, especially in silver, ahead of the afternoon FOMC minutes from the Federal Reserve. August gold was last up $0.10 at $1,929.60 and September silver was up $0.308 at $23.42.

Despite a holiday-shortened U.S. trading week, it’s still a busy one for the marketplace. The latest FOMC minutes from the Federal Reserve will be scrutinized for any fresh clues on the timing of the next monetary policy move by the central bank. The U.S. employment situation report for June is out Friday. The key non-farm payrolls number is forecast up 240,000 versus a gain of 339,000 in the May report.

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Asian and European stock markets were mostly lower in overnight trading. U.S. stock indexes are mixed at midday.

Spot gold and silver prices hold gains, testing resistance in quiet holiday trading

The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are solidly higher and trading around $72.00 a barrel. Reports said Saudia Arabia and Russia will extend their oil-production cuts by another month. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching around 3.898%.

Technically, August gold futures bears have the overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the February low of $1,846.80. First resistance is seen at today’s high of $1,942.90 and then at $1,950.00. First support is seen at this week’s low of $1,917.70 and then at $1,900.00. Wyckoff's Market Rating: 4.0.

September silver futures bears have the overall near-term technical advantage. A choppy, two-month-old price downtrend is still in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $24.835. The next downside price objective for the bears is closing prices below solid support at the March low of $20.425. First resistance is seen at today’s high of $23.45 and then at $24.00. Next support is seen at $23.00 and then at last week’s low of $22.485. Wyckoff's Market Rating: 4.0.

September N.Y. copper closed down 180 points at 377.60 cents today. Prices closed near mid-range. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the June high of 396.40 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 356.50 cents. First resistance is seen at 382.50 cents and then at 385.00 cents. First support is seen at today’s low of 373.25 cents and then at last week’s low of 368.30 cents. Wyckoff's Market Rating: 3.5.

Jim Wyckoff

For Kitco News

Time to Buy Gold and silver

Tim Moseley

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Gold prices to remain in neutral territory for the rest of 2023 silver to see slightly higher prices – BMO Capital Markets

July 5, 2023 Thomas Prendergast Leave a comment

Gold prices to remain in neutral territory for the rest of 2023, silver to see slightly higher prices – BMO Capital Markets

Gold's brief push above $2,000 an ounce in mid-May could represent the yellow metal's high-water mark for the year as markets continue to adjust to dynamic interest rate expectations and a resilient U.S. economy.

In their latest quarterly outlook, analysts at BMO Capital Markets said that they are leaving their year-end average gold price target unchanged at $1,905 an ounce, and warned that the precious metal is losing momentum as it has not been able to hold its gains above $2,000.

"Gold has struggled for direction over recent weeks as markets digest climbing treasury yields, dollar strength, the potential lagged impact of an unprecedented cumulative rate-hiking cycle, and elevated geopolitical risk," the analysts said in the report. "Our base case remains that uncertainty coupled with macro headwinds will see gold prices well supported into Q3; however, as we gain clarity on the central bank rate trajectory and the ‘hard landing' scenario is averted, we see gold losing some of its luster into year-end."

The neutral outlook comes as gold prices hold support above $1,900 an ounce but remain unable to break initial resistance around $1,930.

The report noted that BMO's chief economist Douglas Porter does not see any serious sign the U.S. economy is rolling over, which could support the Federal Reserve's aggressive monetary policy stance.

"In our view, a severe U.S. economic downturn and consequent reactionary Fed rate cuts anytime soon are unlikely, and as such, after we are likely past the nadir in the macrocycle, we do see gold and silver prices softening into year-end," the analysts said

While BMO sees gold running in place for the rest of the year, the Canadian bank is slightly more optimistic about silver. The bank raised its 2023 average silver price to $22.70 an ounce, up 3% from its second-quarter price forecast.

BMO's modest increase in its silver price outlook comes as the precious metal tests resistance around $23 an ounce. Although the bank is positive on silver, they do see some potential headwinds for the rest of the year.

Spot gold and silver prices hold gains, testing resistance in quiet holiday trading

"Silver's supportive fundamentals have struggled to supplant muted institutional investor appetite, with little sign sustained ETP inflows will materialize near term," the analysts said.

"In our view, silver prices are poised to roll over into year-end, owing to weaker jewelry and silverware demand compared to the same period last year, industrial demand headwinds, and diminishing safe-haven demand."

Despite foreseeing challenges through the rest of 2023, the analysts noted that the silver market is supported by long-term bullish fundamentals.

"Longer-term silver demand from solar installations and the rollout of the 5G network should provide a multi-decade annuity as the world accelerates renewable targets and pushes to increase connectivity," the analysts said. "That said, despite the acceleration in renewable generation capacity targets owing to the increased emphasis on energy security, we expect ongoing thrifting and emerging technologies such as thin films to offset some of the potential gains in silver demand."

Neils Christensen

For Kitco News

Time to Buy Gold and silver

Tim Moseley

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Gold silver see mild rebounds on short covering

July 4, 2023 Thomas Prendergast Leave a comment

Gold, silver see mild rebounds on short covering

Gold and silver prices are modestly higher in midday U.S. trading Monday. Short covering from the futures traders is featured following the recent selling pressure in both markets. Activity was muted to start the U.S. holiday-shortened trading week. August gold was last up $4.20 at $1,933.50 and September silver was up $0.11 at $23.13.

Asian and European stock markets were mixed to higher in quieter overnight trading. U.S. stock indexes mixed at midday. The S&P stock index futures hit a 14-month high last Friday. Trading was quieter today as many American traders and investors are taking an extra day off, ahead of the U.S. Independence Day holiday Tuesday when all U.S. markets are closed. Some U.S. markets close early today.

It’s still a busy week for the marketplace as the U.S. employment situation report for June is out Friday. The key non-farm payrolls number is forecast up 240,000 versus a gain of 339,000 in the May report.

U.S. Treasury Secretary Janet Yellen travels to China Thursday for meetings with high-level Chinese officials.

Here's why gold price is above $1,900 despite two looming rate hikes

The key outside markets today see the U.S. dollar index near steady. Nymex crude oil prices are a bit firmer and trading around $71.00 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching around 3.85%.

Technically, August gold futures bears have the overall near-term technical advantage. Prices are in a two-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the February low of $1,846.80. First resistance is seen at today’s high of $1,939.90 and then at $1,950.00. First support is seen at today’s low of $1,917.70 and then at $1,900.00. Wyckoff's Market Rating: 3.5.

September silver bears have the overall near-term technical advantage. A choppy, two-month-old price downtrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the June high of $24.835. The next downside price objective for the bears is closing prices below solid support at the March low of $20.425. First resistance is seen at last week’s high of $23.335 and then at $23.50. Next support is seen at today’s low of $22.91 and then at last week’s low of $22.485. Wyckoff's Market Rating: 4.0.

September N.Y. copper closed up 390 points at 379.85 cents today. Prices closed near the session high today on short covering. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the June high of 396.40 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 356.50 cents. First resistance is seen at 382.50 cents and then at 385.00 cents. First support is seen at today’s low of 375.95 cents and then at 372.50 cents. Wyckoff's Market Rating: 3.5.

Jim Wyckoff

For Kitco News

Time to Buy Gold and silver

Tim Moseley

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Crazy Battle between Securities and Commodity Hangs Crypto in a Regulatory Limbo

July 4, 2023 Thomas Prendergast Leave a comment

Crazy Battle between Securities and Commodity Hangs Crypto in a Regulatory Limbo

Welcome to the fascinating world of cryptocurrencies, where digital assets have emerged as a disruptive force within the financial ecosystem. However, navigating the regulatory landscape surrounding these innovative forms of currency can be a bewildering experience. Despite their name, regulatory bodies like the Internal Revenue Service (IRS) do not recognize cryptocurrencies as currencies. Instead, they are often categorized as property, which has significant implications for taxation.

Simultaneously, the Securities and Exchange Commission (SEC) has raised concerns about initial coin offerings (ICOs) and their potential classification as securities. This has led to discussions around registration requirements and investor protections in the realm of cryptocurrencies. As a result, the emergence of cryptocurrencies has not only challenged traditional definitions and classifications of commodity and currency but has also blurred the lines between traditional financial instruments and these new digital assets.

Whether you are an investor looking to navigate the legal complexities of the crypto space or simply curious about the evolving nature of digital assets, this article aims to unravel the intricacies of the crypto landscape and shed light on how cryptocurrencies fit into existing regulatory frameworks. By exploring the classifications of cryptocurrencies as securities and commodities, we hope to provide you with a deeper understanding of their implications and the broader impact on the financial world.

Understanding Traditional Assets

To navigate the complex world of assets, it is essential to grasp the classifications established by regulatory agencies like the IRS, CFTC, and SEC for tax and regulatory purposes. While some definitions rely on legal precedents, such as the renowned Howey Test for securities, others may vary across regulatory bodies. Nonetheless, gaining a fundamental understanding of traditional assets is crucial before delving into the cryptocurrency spectrum.

There are three primary categories into which financial assets are typically grouped:

1. Real Estate:
Real estate, as a category of traditional assets, encompasses the land and any structures or improvements attached to it. This includes residential homes, commercial buildings, factories, warehouses, and even natural resources like minerals or water rights associated with the land. Real estate encompasses the tangible, physical properties and resources tied to a specific location.

When purchasing real property, certain fees and additional expenses contribute to the overall cost basis of the property. Specific rules and deductions apply to your taxes when dealing with real estate. By understanding the intricacies of real estate, including the costs involved in property transactions and the tax implications of property ownership, individuals can make informed decisions when buying, selling, or investing in real estate assets.

2. Securities:
Securities are financial instruments that represent ownership or a stake in a company or entity. They include familiar assets like stocks, bonds, and derivatives. The Securities and Exchange Commission (SEC) is the regulatory body overseeing securities in the United States. To shed some light on the legal aspect, in a significant court case called SEC v W. J. Howey Co. in 1946, U.S. securities law defined securities as "investment contracts."

In simple terms, when someone invests in a security, they expect to profit solely from the efforts of the issuer or a third party involved. These profits can come from selling the security at a higher price, receiving dividends, or earning interest. This landmark case established the "Howey test." It was utilized in various SEC enforcement cases, including disputes involving tokens like Ripple's XRP and the creators of NBA Top Shot, a digital marketplace for sports collectibles known as non-fungible tokens (NFTs).

3. Commodities:
Commodities refer to physical goods traded in large quantities on specialized exchanges. They can include agricultural products like corn and wheat and precious metals like gold and silver. Their current market price typically determines the value of commodities. The Commodity Futures Trading Commission (CFTC) oversees certain aspects of commodities trading in the United States.

However, it's important to note that the CFTC's regulatory authority primarily covers wrongdoing related to commodities futures trading rather than spot trading, which involves immediate transactions of physical goods. Spot trading of commodities doesn't fall under the CFTC's direct jurisdiction like securities do under the SEC.

As the popularity of crypto assets continues to soar, questions arise regarding how these conventional asset categories apply to the growing realm of digital assets.

Cryptocurrencies challenge the traditional notions of physical-focused assets, prompting regulators to adapt their frameworks and policies to encompass these innovative financial instruments. Consequently, exploring the distinct characteristics and implications of digital assets within the context of existing asset classifications becomes imperative.

Image source: Crypto.news

Why the Classification of Cryptocurrencies Matters

To truly grasp the different categories that crypto-assets fall into and how it impacts their regulation, it's essential to understand the meaning behind the Howey Test. The Howey Test has emerged as a widely respected method to classify these assets, and it does so by posing these fundamental questions:

1. Is money being invested?
2. Is there an expectation of earning a profit from the investment?
3. Does the investment involve a common enterprise?
4. Are profits generated through the efforts of others?

If a cryptocurrency meets all four criteria outlined in the Howey Test, it is considered a security. This means that promoters are actively marketing these tokens, while investors anticipate earning profits primarily through the efforts of others. SEC Chair Gary Gensler emphasized this point in a statement on September 8, emphasizing the prevalence of token sales where the public expects profits based on the actions of others. By understanding these criteria, individuals can gain insights into how crypto-assets are classified and regulated under the Howey Test.

If a cryptocurrency is classified as a security, it means that the issuers and exchanges of that cryptocurrency must obtain licenses from securities regulators. However, getting these licenses can be pretty challenging, which is why the crypto industry puts a lot of effort into ensuring that their cryptocurrency sales and projects comply with securities laws.

Issuers try to avoid violating securities regulations by focusing on decentralization. If a cryptocurrency is developed in a way that doesn't have a central group driving up its value, it becomes less likely to be seen as security by regulators. This is why decentralized finance (DeFi) projects work towards decentralizing their development efforts and splitting governance through decentralized autonomous organizations (DAOs).

They also utilize mechanisms like proof-of-stake as a consensus mechanism. The argument behind this approach is that if people are both investors and actively participate in the project's growth, such as by staking the coin or voting in DAO decisions, they are no longer solely reliant on a third party to generate returns, as required by the Howey test.

The risk of classifying cryptocurrencies as securities is that exchanges may choose not to list them to avoid being fined by the Securities and Exchange Commission (SEC) for trading unregistered securities. Cryptocurrencies may face state-specific rules and regulations. For instance, the New York Attorney General filed a lawsuit against KuCoin, and multiple state regulators have teamed up to target a coin featuring Elon Musk's image called TruthGPT Coin. These cases highlight the potential legal complications that can arise.

The SEC has provided guidance on initial coin offerings (ICOs) and digital assets. In their framework for the investment contract analysis of digital assets, the SEC emphasized factors such as the speculative nature of many ICOs and their lack of utility as payment or store of value, which could lead to these coins being classified as securities. Kik, an ICO project, faced legal consequences when its CEO said buying its tokens would result in significant profits. The SEC sued Kik, and the company was fined $5 million, nearly pushing them to bankruptcy.

Conversely, the Commodity Futures Trading Commission (CFTC) argues that cryptocurrencies like Bitcoin and Ether are commodities and can be regulated under the Commodity Exchange Act (CEA). The CFTC's rationale is based on the fact that cryptocurrencies like Bitcoin are interchangeable on exchanges, just like sacks of corn of the same grade have the same value. This determination was reinforced in the CFTC's case against Bitfinex, a crypto exchange, and Tether, a stablecoin issuer, where the agency stated that digital assets like Bitcoin, Ether, Litecoin, and Tether are all commodities.

Determining whether cryptocurrencies fall under the classification of securities or commodities has significant implications for their regulation. It affects licensing requirements, listing on exchanges, compliance with securities laws, and potential legal consequences. These classifications shape the regulatory landscape and play a vital role in how cryptocurrencies are treated within the financial ecosystem.

Image credit: Markethive.com

Where Things Stand in The Ongoing Regulatory Debate

The regulatory landscape for cryptocurrencies is constantly evolving, and it's challenging to predict how it will look in the future. Various stakeholders and factors are involved, making it a complex situation. In the United States, Congress has made efforts to grant the Commodity Futures Trading Commission (CFTC) broader authority to regulate the spot trading of non-securities tokens. Among these tokens, Bitcoin is currently the only one that both agencies, the CFTC and the Securities and Exchange Commission (SEC), openly agree on its classification.

One possible outcome of this ongoing debate is that specific cryptocurrencies may be classified as securities while others are treated as commodities. This would create an even more intricate regulatory landscape where different cryptocurrencies are subject to different rules and regulations.

Alternatively, lawmakers could establish crypto as its distinct asset class, introducing tailored regulations specifically for cryptocurrencies. This approach is largely followed by the European Union, which has implemented the Markets in Crypto Assets (MiCA) regulation. MiCA outlines steps that crypto issuers, wallet providers, and exchanges must follow to protect consumers and ensure fair trading.

However, even with these regulations in place, there may still be some legal areas that need to be addressed on a case-by-case basis. For example, determining whether a particular series of non-fungible tokens (NFTs) must adhere to specific rules. As the discussions continue and regulatory bodies navigate the complexities of cryptocurrencies, it remains a dynamic and evolving landscape with ongoing developments that will shape the future of crypto regulation.

Controversial Guidelines on How Cryptocurrencies Are Classified

The classification of cryptocurrencies has been a contentious issue, with different U.S. regulatory agencies offering their own definitions. The Securities and Exchange Commission (SEC) labeled cryptocurrencies as securities, considering them investment assets that generate returns. This categorization was based on federal security laws and the belief that anything traded on an exchange qualifies as a security, including cryptocurrencies.

However, the Commodity Futures Trading Commission (CFTC) took a different approach. Following a court ruling.pdf, the CFTC gained the authority to regulate digital currencies as commodities, treating them similarly to products like coffee and oil.

Additionally, the Internal Revenue Service (IRS) defined cryptocurrencies as taxable property for federal tax purposes, adding another layer to the classification debate.

Two other agencies, the Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN), also provided their guidelines. OFAC considered digital currency on par with fiat currency, while FinCEN categorized cryptocurrencies as a form of money. These distinctions diverged from other agencies' commodities, property, or asset classifications.

These conflicting definitions within the same government highlight the challenge businesses face in legally classifying cryptocurrencies. However, efforts have been made to bring more clarity. For example, the SEC clarified that it does not consider Ethereum and Bitcoin securities but focuses on Initial Coin Offerings (ICOs). While there is an ongoing debate, this statement narrows the understanding of cryptocurrencies within the United States.

The different classifications can create confusion for businesses, which may struggle to understand which regulations apply to them. This confusion can lead to legal risks if companies fail to comply with the appropriate regulations. It can also discourage some businesses from entering the cryptocurrency market due to the uncertainty and complexity of regulations.

Moreover, the classification can impact innovation in the crypto industry. If a new cryptocurrency is classified as a security, it may deter innovation due to the stringent regulatory requirements. Conversely, if classified as a commodity, it may encourage development due to the relatively less strict regulations.

However, it's important to remember that the regulatory landscape for cryptocurrencies is still evolving, and changes may occur in the future that could affect crypto businesses. Therefore, it's crucial for companies to stay updated on the latest regulatory developments and seek legal advice to ensure compliance.

Classifying cryptocurrencies as securities or commodities is complex, with significant implications for investors and regulators. As the cryptocurrency market continues to evolve, it may be necessary to reevaluate and refine these classifications to reflect this asset class's unique nature accurately.

While the current classifications provide some clarity, they also highlight the need for a more nuanced regulatory framework to accommodate cryptocurrencies' distinctive characteristics. This is a challenge that regulators worldwide will need to address in the years to come.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About: Prince Ibenne. (Nigeria) Prince is passionate about helping people understand the crypto-verse through his easily digestible articles. He is an enthusiastic supporter of blockchain technology and cryptocurrency. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

Tim Moseley

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Fed will raise rates to 6 in 2023 gold could hit 10k by 2025 – Tom Luongo

July 3, 2023 Thomas Prendergast Leave a comment

Fed will raise rates to 6% in 2023, gold could hit $10k by 2025 – Tom Luongo

The Federal Reserve will hike interest rates to 6 percent in 2023, according to Tom Luongo, Publisher of Gold, Goats 'n Guns.

Luongo had correctly forecast in 2022 that Fed Chair Jerome Powell would continue to hike into the 4.5 to 6 percent territory in 2023, when many analysts were forecasting a pivot or pause.

"I think he [Powell] will raise again, and possibly even raise multiple times before the end of the year," Luongo told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News. "We'll wind up somewhere around 6 percent by the end of the year."

Since March of 2022, the Federal Reserve has raised interest rates by 500 basis points in an effort to reduce inflation, which reached a peak of 9.1 percent in June of 2022.

The Federal Funds Rate is currently in a range of between 5 and 5.25 percent.

The Fed had previously slashed rates to zero in 2020 to help the U.S. government facilitate COVID-related relief. This, analysts claim, led to high inflation in 2022.

Luongo said that Powell was "forced" into a loose monetary policy, even though he personally was against it.

"Powell has always been a hard money guy," Luongo explained. "I think that COVID forced him into policy he didn't want."

To find out why Luongo thinks that high inflation will return, and what the Fed will do about it, watch the video above

Banking 'Implosion'

As the Fed tightens monetary policy, Luongo expects more bank failures across the United States.

"I just see the entire banking system imploding, detonating like a nuclear bomb," he said.

The U.S. banking system faced uncertainty following the failures of four major banks early this year. The latest bank to fail, First Republic, had over $200 billion in assets under management, making its collapse the second-largest in American history.

Luongo sees commercial real estate loans, which many regional banks are exposed to, as a catalyst for the next series of bank failures.

"You've got 20 percent vacancy rates in hot markets like Dallas and Miami," he observed. "[Regional banks] are exposed to a lot of commercial real estate… all credit-based assets are going to deflate."

To find out whether Luongo believes that another bank collapse would cause Powell to pivot, watch the video above

Gold

As the banking system collapses and the economy enters a recession, Luongo is forecasting that hard assets like gold will benefit.

"If we look at the 1970s as a model, we are looking at $8,000 to $10,000 in gold minimum, over the next couple of years," he forecast. "If the dollar collapses on the other side of Jerome Powell, then things could get very interesting for gold and gold investors."

To find out Luongo's outlook for gold miners, watch the video above

Cornelius Christian

For Kitco News

Time to Buy Gold and silver

Tim Moseley

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Beyond Infinity From Start to Infinity

July 3, 2023 Thomas Prendergast Leave a comment

Beyond Infinity
From Start to Infinity!

Just like the word "Infinity" implies… there is No Ending
or Finish Line. Beyond Infinity is here to help you earn
an unlimited income, limited only by you!

Beyond Infinity is a one-level affiliate platform in the Referral Marketing arena.
We are not a Network Marketing company or an MLM. When you become an
affiliate member, you are NOT an employee of the company. You are an
independent affiliate. Beyond Infinity is not an investment company and we are
not Traders, and our members are not investors. The company does have its own
private investments and they are sharing their personal profits with the members
as Profit Share Earnings in Beyond Infinity Gold (BIG). The company makes a great
deal more in profits than what they are sharing with the members, in BIG.

As to the marketing campaign contributions that are made and will provide a
brand-new car for each contributor in approx. 1 year, we use those contributions
for our upfront marketing costs, including our BIG Ambassador Rewards. And we
take the bulk of those contributions and put them into our private investments to
allow them to grow to the point of being able to purchase a new vehicle for every
contributor. However, when a member makes a contribution through our BIG
Auto Club, those contributions become the property of Beyond Infinity.

Therefore,
we are not investing for the members, but we are investing for the company. And
when you can invest larger amounts of money, over smaller amounts, the profits
are much greater. And this is how we will purchase the new vehicles.
We strive to ensure that all information shared with you is as accurate as possible,
however, we make no representation or warranty of any kind, express or
implied, regarding the accuracy, adequacy, validity, reliability, availability, or
completeness of this information.

The images and graphics that we will be using in
this presentation will be for educational purposes only, as each person's
experience may be different, depending on their own personal efforts.
Please do not take this as any form of financial advice. We are not financial
advisers.

Never risk more money than you can afford to lose in any online
program. And all online programs involving cryptocurrencies involve some risk.
Every person considering joining any online program should do their own due
diligence and then decide the best path forward for themselves. And remember,
past performance is not an indication of future success.

How It All Begins
Becoming an affiliate member of Beyond Infinity begins with our Registration
Form. Anyone can register in Beyond Infinity for free and become a lifetime
member. However, it is what you do once you have registered that will determine
which path you take to get to the same destination, and that is Financial Freedom.

We have three categories of initial memberships:
Free Members – A person can register, for free, directly with a specific sponsor
and become a free member. A free member is allowed to earn their way to
become a paid member. As a free member, when you personally refer at least 2
new paying members, in a short amount of time, you will have earned enough to
have your product automatically purchased for you, making you a paid member.

Free Member in our Benefactor Pool – A person can register, for free, through any
of our BIG Ambassador or Country Ambassador special links for the Benefactor’s
Pool. When registering in the Benefactor’s Pool, you will receive a P.I.F. (Pay It
Forward) from another member or from the company within a specified period.
When a member gives them a P.I.F., that Benefactor Pool member becomes a paid
member and the member who gave them a P.I.F. will become their sponsor.
Paid Members – A person can register, for free, directly with a specific sponsor
then pay for their product themselves or receive a P.I.F. from their sponsor or an
upline member. They will have immediate access to our product and a Beyond
Infinity Gold (BIG) Account where they will begin to receive Profit Share Earnings.

Our Product
When you pay the one-time, out-of-pocket $50 for our Beyond Infinity exclusive
eBook product, "The Global Relief Initiative – Creating Financial Freedom the
Smart Way," you become a PAID member with access to the product and you also
receive, as a bonus, a Beyond Infinity Gold (BIG) Account with a $10 Jump Start
Deposit to your BIG Balance. Our BIG account is completely passive.
As a paid member, you will see the E-BOOK tab in your back office.

The mission of our exclusive eBook is to educate the global population regarding
our current economic conditions. Not only will it direct the reader’s attention to
what is happening, all over the world, financially, but what also may be coming to
their own backyard, financially speaking, that they may not yet be aware of.
This eBook will also teach what can be done to create and preserve your wealth
once it has been created. It is designed to start a Global Relief Initiative that will
bring about the financial relief that everyone needs. This is why it is so important
for us to get the word out about Beyond Infinity so people all over the world can
gain access to this exclusive product.

You Can Earn At Your Own Pace
Now that you have become a paid member, you have several options available to
you to earn the income you desire. And although we provide the means, how
much you will earn and how often is completely up to you. Our members who are
putting in the effort are earning the most. But that may not be your goal.

If you want to remain a totally passive member, then once you have become a
paid member, you will begin earning from your BIG account, every week.
However, that is not exactly “Boss” status because we are not a get rich quick
scheme and the Profit Share Earnings you receive in your BIG account start slow
but will grow over time. In fact, if you did nothing else, you could still receive over
$200,000 in a 6-year period from your BIG account.

And as a passive member, you also have the opportunity to make contributions to
our marketing campaigns, through our BIG Auto Club, which would give you a
brand-new car in approximately 1 year. Our BIG Auto Club is international, so no
matter where you live, if you can go pick up your car from your local dealership,
then we can purchase it for you, within your contribution limits.

You can find out how to make a contribution to our marketing campaigns by
clicking on the Programs tab, then click on BIG.
All contributions are added as a deposit to your BIG account, with 80% of that
deposit going into your BIG Balance. And while your contribution amounts are
not withdrawable, they will help to boost your weekly Profit Share Earnings!

There are many reasons to have a BIG account. As mentioned before, when you
become a paid member, you automatically get a BIG account, as a bonus. And in
our efforts to help everyone we can to obtain financial freedom, we start every
paid member with a $10 Jump Start deposit into their BIG account. And as with
all deposits into your BIG account, 80% of each deposit will go into your BIG
Balance and this will earn you from 3% up to 5%, compounded weekly.

The goal of having a BIG account is to allow your money to grow for you so that
you will finally get to a place where you do not have to worry about money
anymore. And because of that, you cannot withdraw from your BIG Balance.
However, you can withdraw from your BIG Wallet. This will allow your BIG
Balance to grow to the point where you will begin to receive automatic
withdrawals, from your BIG Wallet directly into your main Internal Wallet, where
you can withdraw. The minimum withdrawal from your Internal Wallet is $20.

Would you like to save for your retirement?
Would you like to start a College Fund for your child or grandchild?
Would you like to save for a downpayment on your dream home?
Would you like to pay off your student loans?
Would you like to pay off other debts?
Would you like to take a luxury vacation?

As mentioned, there are many reasons why a person would want a BIG account.
This is the easiest money you will ever earn, as there is nothing else for you to do
and while it will take a while to build up, with the help of Beyond Infinity, you can
confidently plan for your future.

BUT IF YOU WANT MORE… KEEP READING!
Are You Ready To Be Your Own Boss?
While every paid member gets a BIG account, if you want to earn more, and
become our Own Boss, Beyond Infinity makes that possible, also. Our platform is
totally automated and all you have to do is share Beyond Infinity with others and
you will begin to see the income coming in. And how much you earn is totally up
to you. You truly do have the opportunity to earn an unlimited income.

Active Ways You Can Earn
Your Personnal Referral Link – You can share your personal referral link with
others and when they join, you will become their sponsor and they will be your
personal referral. And once they become a paid member, you will earn a $40
commission and a 10% Match, weekly, from their BIG earnings.

Your BIG Ambassador Link – As a BIG Ambassador (BA), you will receive a special
link for our Benefactor’s Pool. Anyone that registers through your BA link will
register for free and wait to receive a P.I.F. (Pay It Forward) from another member
or from the company. And while the person who registers using your BA link is
not your personal referral, once they have been added to the Benefactor’s Pool
and they receive a P.I.F., they will count towards your BA Rewards.

Becoming a BIG Ambassador
When you become a BIG Ambassador (BA), you are representing Beyond Infinity
and we expect our BIG Ambassador’s to be members of integrity who are making
an effort to learn about Beyond Infinity, so they can help others.
The Qualifications – Only paid members can become BAs and before you can sign
up, you must complete the following first:

1. You must complete your Profile, including adding your USDT-TRC20 Wallet
Address in the Withdrawal Account section at the bottom.
2. You must activate your 2FA (2 Factor Authentication) from the Profile page.
3. You must activate your Telegram BOT from your Dashboard.

After completing the requirements above, click on the Sign Up button, under the
main header that says Welcome and your name.

Then complete Steps 4 and 5.
4. Select the main group you want to help from the drop-down box.
5. Write out a brief strategy on how you plan to help your chosen group get
registered in the Beyond Infinity Benefactor's Pool.

Becoming a BIG Ambassador is all about helping others to be able to get started
with us, for free. As you help others register for free, once they have become
Telegram verified, they will be added to our Benefactor's Pool. And when they
receive a P.I.F., you will receive a reward. Your Rewards will show on your BIG
page.

BIG Ambassador Rewards
For every 5 new members who register for the Benefactor's Pool, through your
special BA link, and they receive a P.I.F., you will receive your choice of a $50
deposit to your BIG Account and 0 BIG Auto Club Points. Or you can select to
receive a $25 deposit to your BIG Balance and 25 BIG Auto Club Points.
Each time you earn a reward, you will be presented with this option to make a
choice on your BIG page.

And you can make a different choice each time.
Each reward deposit is non-withdrawable but will add to your BIG Balance,
boosting your Profit Share Earnings. And you can build your BIG Auto Club points
up to 250 and more to be able to make a contribution to our marketing campaign
and receive a new car in approximately 1 year. *

*When you build your points up to enough where you can make a contribution,
that contribution amount will not be added to your BIG Balance, like it is for those
who make a direct contribution.
Please remember that there is a BIG difference between your Personal Referral
link and your BA Benefactor’s Pool link. So, if you want someone to be your
personal referral, you will give them your personal referral link on your
Dashboard.

And if you are just wanting to help someone join Beyond Infinity, for
free, and receive a P.I.F., even though you will not become their personal sponsor,
then please share your Benefactor’s Pool link which can only be found on your BA
page. Whichever link some uses to register, that is where they will remain, either
as a personal referral or in the Benefactor’s Pool. And this cannot be changed.

Become A Benefactor
Becoming a Benefactor is one of the highlights of being a Beyond Infinity member.
As we are changing the paradigm of what it means to Pay It Forward (P.I.F.) for
someone. Our Benefactor’s Pool is part of our Monumatic Marketing Machine,
the Triple M! The new members that our BIG Ambassadors and our Country
Ambassadors bring into the Benefactor’s Pool not only help those who are waiting
to receive a P.I.F., but we have made it very easy for you to give them a P.I.F. and
become their personal sponsor.

Whenever you P.I.F. someone from the Benefactor’s Pool, for the one-time $50, as
your personal referral, you will receive a $40 commission and you will also receive
the 10% Match on their BIG earnings, each week. And because you are getting
$40, right back, you are actually only paying $10 for someone’s product cost.

The way that Beyond Infinity has structured our Benefactor’s Pool, the $10 that
you are not receiving back, instantly, will be earned over and over again, as you
begin to collect the weekly 10% Matches on their BIG Earnings. Therefore,
everyone wins when you Pay It Forward for someone. The company gets a new
paid member, the new member gets a sponsor who has paid for their product,
and YOU get a $40 commission and unlimited 10% Matches on their BIG earnings!

The Infinity Plan
Our most popular active, and fastest income producer is our Infinity Plan. When
you start personally referring others, you are actively earning an income. As
everything in Beyond Infinity is automated, when you start earning commissions,
you are automatically added to our Infinity Plan to begin earning Coded
Commissions and Matching Bonuses.

Your Infinity Plan subscription is $40, every
28 days but it is paid out at $10, every 7 days. This subscription fee does not
come from your pocket but instead it comes out of your Infinity Reserve Account.
Your Reserve Account maintains a cap of $40, at all times, to cover your Infinity
Plan subscriptions and can only be filled from new earnings. Here is how your
Reserve Account is filled and your Infinity Plan subscriptions are covered.

When you have your first paid personal referral, you will receive a $40 commission
that goes into your Reserve Account. $10 is immediately pulled to pay for your
first 7 days in the Infinity Plan. You are not earning yet, but before others can
follow you into the Infinity Plan, you must be there first. Your Reserve Account
balance is now $30.

When you have your second paid personal referral, you will receive a $40
commission that is also added to your Reserve Account. And depending on
whether or not you get a second paid personal referral before your 7 days are up,
in the Infinity Plan, then your Reserve Account balance will become $70. And
from that balance, $50 will be pulled to pay the one-time cost for your Honey
Production Line (HPL – I). And you will have a Reserve Account balance of $20.

We will discuss the HPLs in a later section.
When you have a third paid personal referral, you will receive a $40 commission
and because your Reserve Account balance is only $20, then $20 of your new
commission will go back into your Reserve Account to bring the balance back up
to $40 and the remaining $20 will go into your Internal Wallet. This is your main
wallet where you can make withdrawals from your Beyond Infinity account.
From this point forward, your Reserve Account will only be used to pay your
Infinity Plan subscriptions, at $10, every 7 days. And for every new $40
commission you receive, or Infinity Plan income, or any HPL income, your Reserve
Account will be considered first, to bring the balance back up to $40, then the rest
will go into your Internal Wallet.

The Infinity Plan Calculator
Now that you understand how your Infinity Subscription will be paid, let us take a
look at one simple calculation of how you can start earning from the Infinity Plan.
And if you understand this one screenshot, then you will understand that as your
numbers increase, so will your income. You can play around with the Infinity
calculator, by clicking on Programs, then click on Infinity Plan.

Also, note, that when we speak of personal referrals, regarding the Infinity Plan,
we are speaking of those who are Active in the Infinity Plan. And how do they
become active in the Infinity Plan? They need to have at least 1 personal referral.
And the $40 commission earned from that referral will automatically put them
into the Infinity Plan, following YOU. The Infinity Plan income can become very
lucrative to your Beyond Infinity business.

You can also use the Benefactor’s Pool to help anyone in your organization achieve
their first personal referral, by selecting their username, on the Benefactor’s Pool
page, instead of purchasing a P.I.F. for yourself. And if your personal referrals who
are active in the Infinity Plan did the same thing, you would be amazed at your
Infinity Plan earnings.

If each member personally referred only 3 members, who are active in the Infinity
Plan, your generations would grow, and so would your income in the Infinity Plan
and the HPL. Once you understand these basics, you will understand how to
reach even higher income amounts by referring more than 3. But here is what
you can accomplish in the Infinity Plan with just 3 who get 3, down 3 Generations:

Infinity Personals 3
Your Personal's Avg. 3
Generations 3
1st Generation 3
2nd Generation 9
3rd Generation 27
Group total (3+9+27) 39
Weekly income $36.25

For more detailed information concerning Coded Commissions and Matching
Bonuses, please see the PDF, “Beyond Infinity – Compensation Plan – Coded
Members and Coded Commissions” in the Training section of your back office.

The Honey Production Line (HPL)
The Honey Production Lines or HPLs are one of our most fun ways to receive an
active income because just like everything else, it happens automatically.
Remember, when a member receives their second personal referral, the system
will automatically pay the one-time cost of $50 for their HPL – I. And with you
being their sponsor if you have an active HP – I, then you will be the one to
receive that $50 directly to your Internal Wallet.

And the fun part about this is that it is just extra income that you can receive on a
continuous basis, over and over again. As you can see from the image above, we
have three different HPL’s; HPL – I for $50, HPL – II for $100, and HPL – III for $200.
The $50 HPL – I is the only one that is mandatory and happens automatically and
is paid from your Reserve Account.

When you have someone land in your first two positions, you receive those $50
payments directly into your Internal Wallet and when you receive the $50 for your
third position, that is used to give you a brand new HPL – I to start all over again.
And as your generations begin to grow, you will see that the process is the same
for everyone and that is why this is continuous income.
The HPL payments are made to the first upline member who has an active HPL in
the same category that was paid.

For example, when those on your second generation receive their second
personal referral (your third generation), this pushes your second generation to
pay the HPL – I income to your first generation (your personals) and as your first
generation begins to recycle their HPL – I, they are paying you the $50 over again.
The HPL – II and HPL – III work the same way, except they are not mandatory.

However, if you as an upline member do not have an active HPL – II or HPL – III,
then when someone in your organization makes that voluntary payment, then,
those monies will go upline to the next available member who does have an active
HPL – II and HPL – III, until you become active in the HP – II and HPL – III.
Therefore, you may miss those first payments but when those members come
back around to make a new HPL – II or HPL – III payment and you have activated
yours, then you will receive the new payments.

The HPL – II and HPL – III can be paid manually or you can set them to be paid
automatically, on your Dashboard. If you set them to be paid automatically, then
once you have an extra $100 in your Internal Wallet, then your HPL – II will be
purchased. And once you have an extra $200 in your Internal Wallet, then your
HPL – III will be automatically purchased. And this way, you won’t have to worry
about missing any HPL payments.

Internal Wallet Deposits to Your BIG Account
Now that you have begun earning an active income, you are also eligible to make
manual deposits into your BIG account, from your Internal Wallet. This means
that you can build your BIG Balance to the point where you will start receiving
automatic withdrawals from your BIG Wallet, directly into your Internal Wallet,
that much faster. And once this begins, you can count on weekly deposits to your
Internal Wallet while your BIG Balance continues to grow, without interruption.
We really do have the perfect platform to earn as much as you want, as often as
you want, and completely automatic!

We hope that you can see that Beyond Infinity is the perfect platform where you
can earn, however you choose, and at your own pace. Everything is completely
automated and even if you do not understand how everything works, your money
will always fall in the right place at the right time to build a lifetime of wealth.

BIG Auto Club

Everyone loves a brand new car and our members are no different. And what about a brand new car that is completely paid for and you are the titled owner, within one year of making your contribution? YES, when you make a 1% marketing campaign contribution, the value of your brand new car will be 100 times the amount of your contribution.

Here are the specified 1% contribution amounts: $250, $500, $750, $1,000, $1,250, and $1,500. And the BEST part is that all paid members who make a specified contribution WILL receive a brand new car… not just some, but Everyone!

For example, if you contribute $250, in one year’s time, you could have a brand new car valued at $25,000; a contribution of $500, could get you a brand new car valued at $50,000; a contribution of $1,000 could get you a brand new car valued at $100,000, and a contribution of $1,500 could get you a brand new car valued at $150,000!

Tim Moseley

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Here’s why gold price is above 1900 despite two looming rate hikes

July 2, 2023 Thomas Prendergast Leave a comment

Here's why gold price is above $1,900 despite two looming rate hikes

After testing $1,900 an ounce, gold has come out on top, saving itself from a more significant selloff if prices dropped below this psychologically important level.

Gold is wrapping up the second quarter down more than $80, the worst performance since the third quarter of last year. At the time of writing, August Comex gold futures were trading at $1,925.80 an ounce, up 0.41% on the day.

But there have been some positive signs. Gold's downtrend has been slow and steady and not sudden and steep. Also, it held the $1,900 an ounce level.

"I'm surprised by the resilience in gold given the moves in the U.S. bond market – still, for now, I question if growth equity (such as the NAS100) continues to march higher if U.S. bond yields are trending higher, and how this offers the USD tailwinds," said Pepperstone's head of research Chris Weston.

Federal Reserve Chair Jerome Powell's message of at least two more rate hikes this year filtered through the market, weighing gold down and pushing the U.S. dollar higher.

But the fact that prices have not fallen below $1,900 an ounce shows resilience in the gold market, with increasing sentiment that the equity rally won't last.

"While an environment in which interest rates are likely to continue rising is unhelpful for this non-yield bearing asset, investors are still not convinced of the bull case for equities, especially with some countries potentially already in recession," said Kinesis Money market analyst Rupert Rowling.

What's holding gold up?

If the $1,900 was taken out, OANDA senior market analyst Edward Moya told Kitco News that there would be significant technical selling.

But one of the reasons gold held up was because markets are yet to price in two rate hikes by the Fed, Moya pointed out. According to the CME FedWatch Tool, there is a nearly 90% chance of a 25-basis-point rate hike in July and a 70% chance of another pause in September.

"Will inflation prove stickier, and will the Fed deliver two more rate hikes? Is it being priced in yet? No," Moya said. "Today's PCE data showed that inflation is cooling, but barely."

Right now, gold is not very attractive, but it could have its big moment when the market reassesses how much more aggressive the Fed will have to be to bring down inflation, Moya added.

"More Fed rate hikes are normally bearish for gold. But given the positioning in the market, we could see a stock market selloff and a return of strong demand for the safe haven," he said. "That is not an environment where gold will be collapsing."

Moya is anticipating range-bound trading in the short term, with risks to the downside if gold drops below $1,900 an ounce. "If we break below that level, it could get ugly. But I don't think it is going to happen," he said.

This type of trading might be enough to keep gold from falling lower. But at the same time, significant gains are not likely in the short term, said TD Securities global head of commodity strategy Bart Melek.

"At 4.6%, the U.S. May y/y core PCE is slightly lower than expected, and with weaker personal May personal spending, the market drove yields lower," Melek said. "With that, the USD dropped, and gold bounced convincingly above $1,900/oz. This reduces the risk of a drop down to the 200d ma, for now."

With more evidence that inflation in the U.S. might have peaked, the selloff in gold has likely run its course, Walsh Trading co-director Sean Lusk told Kitco News. "But gold better holds this level," said Lusk. "Gold needs to take out $1,966 to turn bullish."

The precious metal will move higher only after the equity market reverses its rally, Lusk added. "If the stock market keeps chugging, there will be less demand for gold. Stock market rallies will bring up inflation, and that will keep the Fed raising rates, with the U.S. dollar being the winner in this," he said. "Don't think the stock market will extend here as we get to Q3."

The U.S. dollar's strength is why rallies in gold have been sold, Lusk added.

If gold drops below $1,900 an ounce, investors should pay attention to $1,850-$1,814 levels. "If we can't hold that, then a drop to $1,720 is possible. That's a bear scenario," he said.

Next week's data

Monday: ISM manufacturing PMI

Thursday: U.S. jobless claims, ADP nonfarm employment, ISM services PMI

Friday: U.S. nonfarm payrolls

Anna Golubova

For Kitco News

Time to Buy Gold and silver

Tim Moseley

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When fiction reveals the flaws in well-thought-out plans

July 1, 2023 Thomas Prendergast Leave a comment

When fiction reveals the flaws in well-thought-out plans

In both comedy films and real life, we often encounter situations where meticulously crafted plans fall flat on their faces. This article takes a humorous perspective on the notion that sometimes fiction can be more viable than a supposedly well-thought-out plan. While the focus of this article is the recent decline in gold, it also draws parallels to a comedic dialogue from Men in Black and a plan devised by Chairman Powell to reduce inflation. The common thread is the inherent flaw in assuming success without understanding the full truth behind the processes involved.

Gold has experienced a downward trend over the past two months, culminating in a deep price correction. Currently, gold futures are trading at a low of $1912.30, falling below a critical price support level. The failure to close above the 61.8% Fibonacci retracement suggests a higher probability of gold futures drifting towards $1900 next week, with little support until $1870. This situation highlights the fallibility of well-intentioned plans that overlook critical factors.

A Lesson from The Men in Black

The comedic dialogue in Men in Black's third installment provides an excellent example of the absurd assumptions that can lead to plan failures. When the alpha villain Boris the Animal time travels to Earth seeking revenge, he asks the younger Boris about their plan. The confident response is to prevent the deployment of the ArcNet and eliminate anyone who tries. However, the older Boris humorously points out that despite the seemingly foolproof plan, it ultimately fails. This parallel serve to illustrate the moral of the story—the preposterous assumption that underpinned the plan's flawed nature.

Boris the older animal asks: What's your plan?

The younger Boris responds with absolute certainty saying in a loud and threatening alpha voice… “Prevent the ArcNet from being deployed. Kill anyone who tries!”

It is this response that is overwhelmingly humorous when Boris the Animal says:

The older Boris responds sarcastically saying good plan – didn't work.

Chairman Powell's Plan and Inflation

MarketWatch published an article discussing Chairman Powell's plan to reduce inflation, which, like the fictional dialogue, is riddled with flawed assumptions. While sounding plausible on the surface, the plan lacks the necessary ingredients for success. The article highlights the steps Chairman Powell believes are necessary to address inflationary pressures but reveals that the plan is not yielding the desired outcomes. The flaws in these scenarios arise from incorrect identification of the processes needed to tackle the problems at hand.

The Complex Failure of Well-Thought-Out Plans: Both the fictional dialogue in Men in Black and Chairman Powell's plan exemplify the failure of well-thought-out plans. Despite the initial plausibility, these plans are deeply flawed, leading to improbable outcomes. The article emphasizes the theme of flawed assumptions, which can doom even the most meticulously crafted strategies to failure. While humor in fiction can entertain, it is disconcerting when real-life failures result from incorrect assessments of the problems at hand.

The Federal Reserve's Attempted Solutions

Persistent inflation has prompted global central banks, including the Federal Reserve, to employ interest rate hikes as a means to combat inflationary pressures. However, these rate hikes have failed to achieve their intended effect of lowering core inflation, which remains persistent at levels above 4%. Each rate hike has shown no direct correlation with a reduction in inflation within sectors. The explanation for this planning failure is succinct: "Good plan; didn't work."

In both fictional and real-life scenarios, plans can fall victim to flawed assumptions and incomplete understandings of the underlying processes. The recent decline in gold value serves as a backdrop to highlight the fallibility of well-thought-out plans. By examining the comedic dialogue in Men in Black and Chairman Powell's plan to reduce inflation, we uncover the importance of comprehending the full truth behind a problem before formulating solutions. The failures depicted remind us that the best plans do not always guarantee success when they lack a solid foundation of accurate information and analysis

Gary Wagner

Contributing to kitco.com

Time to Buy Gold and Silver

Tim Moseley

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What’s next for gold price if chances of a recession are ‘slim’ Metals Focus weighs in

June 30, 2023 Thomas Prendergast Leave a comment

What's next for gold price if chances of a recession are 'slim,' Metals Focus weighs in

The resiliency in the U.S. economy is forcing markets to re-price the monetary policy outlook for the rest of the year. And as gold looks to end the month down $65, Metals Focus analyzed how much lower gold can fall in light of stronger-than-expected economic indicators.

Gold is seeing its worst month since February as markets shift expectations, pricing in a nearly 100% chance of a rate hike in July. After kicking off the month above $1,980 an ounce, August Comex gold futures last traded near 3.5-month lows at $1,916.

"After surging to $2,063 in early May, just short of its all-time peak, the yellow metal is now trading closer to $1,900 as some of these expectations have been re-priced," leading precious metals research consultancy Metals Focus said in its latest report.

Central banks worldwide renewed hawkish rhetoric during the first month of the summer, accelerating their inflation fight due to surprisingly strong economic growth, which remained unaffected by the most aggressive hiking cycle in decades.

The latest macro surprise was the final estimate for the U.S. Q1 GDP data that showed the economy growing at 2%, up from the previous estimate of 1.3%.

"The resilience of the U.S. economy so far this year, combined with still sticky core inflation, has led financial markets to re-evaluate both the prospects for the U.S. economy and rates going forward ahead; this, in turn, has triggered a correction in the gold price," said Metals Focus.

Stubborn inflation and a tight labor market mean interest rates could remain high for longer, and rate cuts are likely off the table for this year. This is a key driver for gold for the rest of this year.

The biggest problem with inflation is in the service sector. Federal Reserve Chair Jerome Powell has been raising alarm that the longer inflation remains elevated, the higher the risk of it getting entrenched. "Don't see us getting back to 2% this year or next year," Powell said Wednesday. "The passage of time is not in our favor."

Powell is projecting two or more rate hikes this year, and the markets are starting to get on board, with the CME FedWatch Tool pricing in a nearly 90% chance of a 25-basis-point rate hike in July.

And the Fed is not alone, with the European Central Bank, the Bank of England, and the Swiss National Bank embracing more rate hikes recently. "This highlights that inflation control will remain a priority over economic growth, and so it is unlikely that the Fed will resort to rate cuts aggressively if a recession is avoided," Metals Focus pointed out.

Given the current macro environment, the chances of an outright recession "remain slim," according to the report. The latest leading indicators supporting this view include a tight U.S. labor market and June's consumer confidence data hitting the highest levels since January 2022.

This could spell trouble for gold in the short term, with prices at risk of falling below the $1,900 an ounce level.

"Similar to the boost gold received when interest rate expectations transitioned from a hawkish to dovish stance, we believe that the adjustment to a reality of no cuts for longer will weigh on gold," Metals Focus said. "This has been already evident in the past two weeks as financial markets have completely ruled out rate cuts in 2023, which has seen gold fall below $1,920."

From a technical perspective, gold can drop to $1,730 an ounce, around 10% down from current levels. However, the annual price average for 2023 will likely be at $1,890, Metals Focus added.

The case for holding gold is still intact, the report noted, pointing to geopolitical risks and strong central bank gold demand as drivers limiting the selloff in gold.

Anna Golubova

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

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