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Citibank Report Says Asset Tokenization a Killer Use Case for Blockchain and CBDCs What About Crypto?

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Citibank Report Says Asset Tokenization a “Killer Use Case” for Blockchain and CBDCs. What About Crypto?

Citibank's latest global perspectives and solutions report claims that tokenizing financial and real-world assets could be the "killer use-case" and a multi-trillion dollar opportunity. The report focuses on Asset Tokenization as the “killer use case” that blockchain needs to drive a breakthrough, with trillions of dollars worth of securities tokenized by the decade's end, forecasting up to $4 trillion. 

Citi is an investment bank on the list of the “Too Big To Fail” banks. Its 165-page research report is titled ‘Money, Tokens, and Games. Blockchains Next Billion Users and Trillions in Value’ and contains bold projections for Blockchain, NFTs, and Central Bank Digital Currencies. 

The report noted that the crypto industry is “approaching an inflection point,” and conversations by a few key figures in the crypto industry were aggregated in the research paper. The list includes Algorand founder Silvio Micali, Aave founder Stanley Kulechov, Ava Labs president John Wu, Polygon Labs president Ryan Wyatt,  and even Zooko Wilcox, the founder of Zcash.

The report pdf is very long, so here’s a summary of a few noteworthy sections and some counter-arguments of why it may be a little askew in these areas. Could it be intentional, or  maybe it’s just wishful thinking on their part? And what does it mean for the crypto industry?


Image credit: Citi GPS pdf
 

Report’s Brief Introduction 

The report begins with a brief introduction from Kathleen Boyle, the managing editor at Citibank, who, presumably, put this report together. She commences by explaining that the potential of blockchain has been overlooked primarily because it's a back-end technology, not a front-end technology like ChatGPT. She says successful blockchain adoption will be achieved when “Blockchain has a billion-plus users who do not even realize they are using the technology.” 

However, she does not say this adoption will come from crypto; it will come from Central Bank Digital Currencies (CBDCs). She also implies that the trillion-dollar opportunity of asset tokenization will come from the blockchains that power these CBDCs, not cryptocurrency blockchains. 

This starkly contrasts what the crypto headlines say about the report. – As DeFi Edge points out there are already some prominent crypto protocols focusing on real-world asset tokenization. This underscores the importance of whenever you hear an institution, be it a mega bank or a government, talking about the benefits and potential of blockchain technology, 99% of the time, they are not talking about cryptocurrency. In almost every case, they talk about private and permissioned blockchains they will control. 

This is why it's a bit scary to see Kathleen explain that blockchain needs “decentralized digital identities, zero-knowledge proofs, oracles, and secure bridges to achieve mass adoption.” She's probably not talking about the same technology we use in crypto. She's talking about different technology. Kathleen also notes that “regulatory considerations are also necessary to allow adoption and scalability without ‘hindering innovation’.” 


Image credit: Citi GPS pdf

Kathleen and her crew estimate the mass adoption of blockchain, not crypto, is 6 to 8 years away. Some would argue that the mass adoption of crypto will come much sooner than that, and the value of the assets tokenized on cryptocurrency blockchains will exceed the $4 trillion the report is projecting. Moreover, the sentiment of crypto heavyweights et al. believes the adoption of CBDCs and asset tokenization on private blockchains will be much lower than the authors' pitch. 

That's because data from the Bank for International Settlements (BIS), the bank for central banks, shows that only 4% – 12% of people will voluntarily adopt CBDCs. The same goes for tokenized assets on private blockchains. If governments control these blockchains, then having all your assets tokenized means you won't truly own them; the government will own them. This is precisely what entities like the World Economic Forum are pushing for. This article explains how you can reject what the globalists are planning.

Central Bank Digital Currencies – CBDCs 

The first part of the report worth covering is about CBDCs. The report projects that between 2 and 4 billion people will voluntarily adopt CBDCs. This is inconsistent with the adoption projections from the BIS and actual CBDC adoption in countries like Nigeria, where adoption is a fraction of a percent. 

It begins by revealing that the obsession with CBDCs comes from the fact that they will allow governments and central banks to micromanage monetary and fiscal policy. In other words, they can control how much you can spend, how much you can save, what you can buy, and so on. Citi’s authors estimate that as much as 20% of all the currency in circulation will be converted into CBDCs by 2030. They also claimed that; 

“The successful launch and adoption of CBDCs would lead to more stablecoin projects becoming mainstream. This is because the stablecoin protocol is now able to hold reserves in CBDCs, which are more stable and liquid than money market instruments.” 

For context, stablecoins are currently backed primarily by US government debt. This is a double-edged sword because it allows the US government to subsidize its spending but also risks crashing the bond market in the event of a stablecoin run. It sounds like stablecoins will soon be backed by CBDCs instead. This is concerning because if CBDCs back stablecoins, it gives governments and central banks de facto control of all the stablecoins in circulation. 

This, in turn, would give governments and central banks control of cryptocurrencies, whose ecosystems rely on stablecoins, such as Ethereum. Ethereum creator Vitalik Buterin said that stablecoins like USDC would have the power to decide future blockchain forks. What’s needed is a genuinely decentralized stablecoin to be developed that will protect crypto projects, like Ethereum, from future stablecoin control. 

The authors list countries that are working on CBDCs and include notes about which technologies they're using. Australia and Norway appear to use Ethereum as part of their CBDC development. It's safe to assume they will use some private version. To their credit, the authors also list risks associated with a CBDC rollout. These include competition between central banks because of currency competition, a loss of privacy, a loss of bank deposits leading to financial instability, and limited adoption. Critics argue that the latter isn't a risk.


Image credit: Citi GPS pdf

Regarding the adoption aspect, the authors highlight the less than 0.05% adoption rate of Nigeria’s eNaira and the slow adoption of the Bahamas Sand Dollar, with FTX’s collapse and C-19 said to be contributing factors to the loss in momentum. This makes their projection of wide-scale CBDC adoption that much more implausible. They blame the absence of said adoption so far on a lack of financial literacy. Arguably, financial literacy is precisely why people aren't adopting CBDCs. 

As explained in this article, it’s important to note the difference between CBDCs and cryptocurrencies. Certain institutions are already trying to market CBDCs as having the same benefits as cryptos as cryptocurrency adoption continues to rise.

Citi’s report presents timelines for when some CBDCs will be deployed. It states a digital Euro will be up and running around 2026. The digital pound will be ready by 2030, but the digital dollar is yet to be determined, and it slams the few brave US politicians for trying to stop its development. 

Decentralized Social Media – DeSo

The second part of the report is about decentralized social media (DeSo). Unfortunately, this chapter is relatively short because DeSo is highly critical due to the overwhelming efforts of governments to censor the internet. This article explains that governments worldwide are in the process of passing online censorship laws. In the European Union, these online censorship laws have already passed and are set to go into force in June this year. 

Since trust in institutions has been declining for decades and slumped after all the pandemic restrictions, their need for this crackdown makes sense. Trust in institutions is crucial for the financial status quo to continue. The recent banking crisis exemplifies what happens when that trust is entirely lost. This is why the authors note that “Blockchain's ability to create a shared, immutable, digital record of transactions could also help users see where particular information originated in order to judge its credibility. This could help build trust.”

The catch is that trust only exists when the blockchain is trustless. The report also notes that with DeSo, “ownership of content and control over the distribution channels remains with users.” This is required to resist online censorship, and it's the same principle that underlies all crypto. You are only financially free when you own and control your assets. 

The report’s authors include a conversation with Aave founder Stanley Kulechov; the remainder of the section is an interview with him. This is primarily because Stanley and the Aave team are working on the Lens protocol, a decentralized social media protocol that will serve as the backend for future DeSo platforms. Stanley believes that games and social media might be how most people become aware of blockchain technology. 

They are unaware that a monolithic crypto project in the DeSo space has been in development and is now up and running for the most part. The founder and architect of Markethive, Thomas Prendergast, envisioned the dystopian system we are experiencing currently and is ahead of the curve with a decentralized platform incorporating a social, marketing and broadcasting network for entrepreneurs that services as a cottage industry. Markethive is an ECOcentric DNA system. 

The Markethive ecosystem culminates with its unique, comprehensive economic center housing the wallets and account facilitation for the user, with merchant accounts for eCommerce facilitation, and enables creators to monetize their content. Its cryptocurrency, Hivecoin, is the cornerstone of this decentralized economic sanctuary and is a portal to sovereignty and financial freedom with gamification thrown in. This is where people are learning about and experiencing crypto and blockchain technology. 

Decentralized Digital Identity – DID

Another section of the report is about decentralized identity. Citi starts with a spooky sentence: "Decentralized identity is a core technology component that will enable regulatorily compliant uses of blockchain while still preserving anonymous/pseudonymous access.” 

They seem to suggest that the purpose of decentralized digital ID is not to do things like interact with cryptocurrency protocols but to be the “identity layer for the entire internet.” Logically, this means whoever controls this identity layer will have unprecedented power. 

Moreover, the report specifies that decentralized digital ID “Does not imply a lack of centralized parties in identity issuance or verification, but that the mechanism of owning, sharing and verifying identity is done in a permissionless, decentralized manner.” 

This is a problem because if the issuance and verification of a decentralized digital ID are centralized, the issuer or verifier can revoke your ability to interact with online services. That's not decentralization, underscoring the need for crypto to find a way to issue and verify digital ID in a decentralized manner. 

Consider that a decentralized digital ID tied to a government-issued document is no different from a centralized stablecoin. Ponder a scenario where your government-issued ID is digitized like the CBDCs backing stablecoins. Additionally, governments worldwide are actively working on rolling out Digital IDs. Countries are at different stages, but skepticism and pushback have existed. 

Naturally, the authors say that the need for digital ID comes from the relentless data collection by big tech. They don't say that most of these big tech companies are aligned with governments and that these so-called decentralized digital IDs will likely just provide this data directly to said governments. 

The authors showcase the recently released Polygon ID as an example of a decentralized digital ID solution, and the infographic suggests that it's built exactly how the authors describe it. There's a centralized issuer and verifier – you only control what you reveal on-chain. 


Image credit: Citi GPS pdf

The report also provides an example of an actual decentralized digital ID: the Ethereum Name Service (ENS). ENS lets you buy a decentralized domain name ending in .eth for those unfamiliar. It has no central issuer or verifier; it's entirely decentralized and is run by a DAO. With that said, you could argue that DAOs aren't that decentralized due to their governance structures. 

The authors appear to argue that an actual decentralized digital ID isn't a solution because it's not tied to so-called verifiable credentials such as government-issued IDs. Instead, they shill their version of decentralized digital ID, which they also call “Self-sovereign identity. They then provide examples of self-sovereign identities and include digital IDs developed by Microsoft and the European Union. To add insult to injury, the authors omit centralized control as one of the risks associated with this technology but imply that crypto is a risk. 

Smart Legal Contracts – SLC

The last part of the report is about so-called Smart Legal Contracts (SLC), also called Contracts 2.0. The authors start with a statistic, and that's that 60% – 80% of all business transactions involve a contract. They note that companies lose 9% of their profits and miss out on an additional 40% of profits from bad contracts. Nick Szabo is the creator of Smart Contracts; however, SLCs are not the same as his smart contracts. It’s the authors that deem them an official subset of Smart Contracts but with different characteristics. 

They clarify that smart legal contracts have no universally agreed-upon definition, but the main difference is they don't involve blockchains. Smart legal contracts are also legally enforceable in their countries of origin. By contrast, legal enforceability is rarely a consideration in smart contracts.

This begs the question of why smart legal contracts are required at all, and the authors reveal the answer. “Smart legal contracts are more dynamic to changing circumstances – to achieve legal compliance, they must include terms that allow them to be paused, modified, or rectified.” 

It sounds like the authors are insinuating that smart contracts cannot be legally compliant due to their immutability. If smart legal contracts don't exist on blockchains, can be adjusted on a whim, and occasionally require human execution, as noted by the authors, then it begs the question of what makes SLCs different from a standard digital contract. The authors don't have a clear answer here. 

To their credit, they concede that smart contracts are likely to be much more popular than smart legal contracts because they provide the following benefits. 

  • They can exist indefinitely.
  • They are transparent.
  • They are tamper-proof.
  • They are secure.
  • They are built on a single source of truth. 

This section of the report is long and consists of the authors tripping over themselves to try and explain why smart legal contracts are the future despite being objectively inferior to smart contracts.


Image credit: Markethive.com

What Does This Mean For Crypto?

So here’s the big question – What does Citibank’s report mean for crypto? If anything, it reveals that institutional investors are looking at the crypto industry through a radically different lens from us retail investors. CBDCs, de facto digital IDs, and changeable smart contracts are not crypto. 

The few sections of the report about crypto were much shorter than those about dystopian technologies inspired by crypto. As mentioned, the chapter about decentralized social media was the shortest of all and could be interpreted as not a coincidence. 

Consider that the purpose of cryptocurrency is to replace megabanks like Citi, as well as most of the institutions that the other authors of this report work for. The first step to this replacement is the awareness of what crypto offers and why it's valuable. This information can be found on social media for now; however, with all the plans and legislations to continually broaden censorship of what authorities deem as mis/dis-information may see it disappear from the mainstream. 

In fact, leaked documents from the Department of Homeland Security stated that the US government was looking to censor information on social media, which fosters distrust in the financial system. Whoever still doubts that the government would resort to censoring financial information look no further than the recent banking crisis. In the subsequent hearings about the crisis, multiple US politicians pointed to social media as the cause of the bank runs that precipitated it. 

If you read this article about bank bail-ins, you'll know that US government officials discussed censoring discussions of bank runs on social media in their bank bail-in simulation late last year. It's more than likely that other governments would secretly consider the same behind closed doors. Now, I mention all of this because Citibank's report is part of what can only be described as an ongoing information war against cryptocurrency by the establishment. 

Another example is mainstream media articles about how Bitcoin mining is killing the planet, which is untrue. When it becomes clear to the establishment that they are losing this information war, they will resort to censorship to ensure that the trust in their increasingly unstable financial system remains. 

This crossroads is coming sooner than people think because everyone is waking up to CBDCs. People are also starting to wake up to the fact that not all cryptocurrencies are created equal, and the establishment is co-opting some crypto projects, companies, and technologies to usher in a dystopian new system. This system requires a digital ID; their fake decentralized digital IDs are the trojan horse. 

Always remember that blockchain does not equal crypto, and take every statement about crypto from megabanks and central banks with a massive grain of salt. The same goes for headlines about how mega and central banks embrace crypto. The likelihood is that they're doing the exact opposite. 

 

 

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.

 

Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech. I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.

 

 

 

 

Tim Moseley

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Characteristics of Emotional Intelligence

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Characteristics of Emotional Intelligence

Introduction

Emotional intelligence is the ability to identify and understand our own feelings, as well as those of others. It's a set of skills that can make all the difference in your career and relationships, whether at work or at home. Emotional intelligence is more than just good communication; it means being aware of how you feel and understanding why you feel that way.

Understanding your emotions

Emotional intelligence is the ability to identify and understand our own feelings, as well as those of others. Emotional intelligence is a skill that can be learned through practice, but recognizing your emotions is the first step in understanding them.

When you recognize what you are feeling, it allows you to manage those feelings in more effective ways. For example: If someone makes fun of your friend's haircut, instead of getting upset and defending her right away (which might lead to an argument), try taking a minute or two before responding so that you can think through what truly bothers you about this situation.

Recognizing your strengths and weaknesses

Recognizing your strengths and weaknesses is a key step in developing the skills of emotional intelligence. If you know what you're good at, it's easier to focus on areas where improvement is needed. For example, if I'm an expert at managing my time but not so great at recognizing when others might need help or support, then I can use my time management skills as leverage for improving my ability to recognize other people's needs – even if this means asking for help from others who are better equipped than myself in those areas!

In addition to helping us identify areas where we need improvement, knowing our strengths can also help us leverage them as tools for overcoming our weaknesses. For example: If someone knows that they are great with numbers but struggles with reading emotions in others' faces (a common challenge), then they might use their numerical abilities as an opportunity to teach themselves how facial expressions work through practice exercises like those provided by The Emotion Lab

Communicating clearly with others

The next time you're in a conversation with someone and they tell you something, try to listen carefully. If they use an example or analogy, ask them to explain it further. If they say something that seems confusing or contradictory to what they said earlier in the conversation, ask them to clarify their point of view.

When speaking with other people and communicating with them through your words and actions, be mindful of how you word your questions so that they don't come across as accusatory or judgmental (e.g., "Why didn't you do X?"). When asking questions like these, be sure not only that there is no tone of blame but also that your body language isn't closed off or defensive either–this may lead others into thinking that there is something wrong with whatever decision was made instead of focusing on what could have been done differently moving forward together as a team!

Also remember: no matter how close we are with someone else personally

Getting along with others

  • Get along with others.

  • Know how to be a good team member.

  • Know how to work well with others.

  • Understand the importance of communication and listening skills in your relationships, both personal and professional.

  • Resolve conflict effectively when it arises by using appropriate tools like active listening or asking questions that help you understand another person's point of view before making assumptions about their intentions or motivations behind their actions (or lack thereof).

  • Recognize other people's emotions so you can empathize with them–and know when it might be best not to bring up certain topics until later on when everyone has calmed down a bit!

Maintaining relationships with others

You should be able to maintain relationships with others.

You should be able to get along with others, even those who are difficult or annoying.

You should be able to build rapport with people you don't know well, and keep it up over time. This means being able to read other people's emotions, communicate clearly and ask for feedback when needed–all things that make you more likable!

Being resilient when faced with challenges and setbacks

Being resilient when faced with challenges and setbacks is one of the most important characteristics of emotional intelligence. If you can't bounce back from adversity, then your success will be limited.

When faced with a setback or failure, consider what went wrong and what you could have done differently. Then move on! Don't let it get you down; after all, failure is an opportunity to learn something new. You should also be able to recover quickly from stressful situations so they don't impact your mood or performance negatively long-term.

Emotional intelligence is the ability to identify and understand our own feelings, as well as those of others.

Emotional intelligence is the ability to identify and understand our own feelings, as well as those of others. It involves being aware of our emotions and how they affect us, being able to manage them and use them to our advantage. Emotional intelligence also means that you are able to empathize with and support other people's emotions; it helps you understand what someone else may be feeling in any given situation.

Emotional intelligence can enhance relationships at home or at work by improving communication skills, making people feel heard and understood–and reducing conflict along the way!

Conclusion

Emotional intelligence is an important part of our everyday lives. It helps us navigate relationships, build resilience in the face of challenges, and make better decisions about the future. The more you know about your own emotions and those of others, the better equipped you'll be to deal with whatever life throws at you!

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Tim Moseley

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The solution to the raising the US debt ceiling is not going to be a cake walk

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The solution to the raising the U.S. debt ceiling is not going to be a cake walk

Short-term T-bills maturing between June 6th through 15th are currently yielding 5.997%, an indication of the angst regarding whether a debt ceiling resolution can be reached on time before threatening a government default of its financial obligations. The uncertainty regarding the negotiations has moved the one-year T-bill with an issue date of June 2022 maturing on June 15 to a yield of 6.141%.

This is because T-bills maturing between June 6 and 15th are seen as the riskiest investment with the real possibility of delayed payment, according to Lawrence Gillum of LPL Financial. According to MarketWatch, "At the moment, the T-bill market is in a state of dislocation — one in which yields ranged from as little as 2.924% on the government obligation maturing on May 30 to as high as 6.141% on the 1-year bill maturing in three weeks."

The financial backdrop created by the uncertainty of a resolution in passing legislation to either suspend or raise the debt limit by the first or second week of June has strengthened the dollar and pushed away the chance for any upside moves in gold.

Gold futures continue to trade near recent lows at around $1960 with resistance occurring just above $1980. Today the most active June 2023 Comex contract gained only $0.30 on the day and is currently fixed at $1977.50. However, it is the low that is most troublesome trading to an intraday low today of $1955.80 before recovering. That being said, the differential between the open and closing prices is just a couple of dollars.

Although gold futures were able to recover off of earlier lows the uncertainty of a debt ceiling resolution is not enough to prompt traders to bid the precious yellow metal higher. This is because the consensus among traders is while there is uncertainty ultimately the issue will be resolved either by a temporary stopgap bill that adds more time and raises the debt ceiling or an actual piece of legislation that both the Democratic and Republican constituents can agree upon.

The debt ceiling has been reached and raised more times than one can count and on the vast majority of occasions, legislators simply played kick the can down the road taking the dilemma to an 11th-hour showdown. However, in this case, it seems a little bit different in that rather than playing kick the can they are playing a high-stakes game of chicken in which both sides are waiting for the other side to blink first. While both the Republicans' and Democrats' desires have components of budgetary concerns that are realistic, the sad truth is that you can’t have your cake and eat it too.

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Gary Wagner

Contributing to kitco.com

Time to Buy Gold and Silver

Tim Moseley

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Debt-ceiling talks between Biden and McCarthy to resume at 5:30 EDT

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Debt-ceiling talks between Biden and McCarthy to resume at 5:30 EDT

The latest round of debt-ceiling talks between the President and House Speaker will begin tonight at 5:30 PM EDT. While both sides have presented optimism on passing legislation that would temporarily suspend, or raise the debt limit ceiling, the Democrats and Republicans are still far apart.

Comments by the House Speaker today emphatically stated that "nothing is agreed to and there are still a lot of obstacles for a deal." This after a phone call between the president aboard Air Force One and McCarthy Sunday evening was "productive" according to McCarthy. President Biden held a news conference in Hiroshima where he criticized the legislation proposed by the house saying that he could not promise fellow world leaders that the United States would not default.

On Sunday President Biden said that he believes he has the authority to invoke the 14th amendment as a potential solution if the negotiations continue to result in a stalemate. However, the U.S. Treasury Secretary, Janet Yellen believes that the 14th Amendment is not a viable option as it cannot "be used appropriately in these circumstances, given the legal uncertainty surrounding it and given the tight deadline in which we find ourselves".

In an interview on Sunday with NBC Janet Yellen again had a strong warning about what was at stake if the two sides aren't able to reach a resolution and raise or suspend the debt ceiling.

"I indicated in my last letter to Congress that we expect to be unable to pay all of our bills in early June and possibly as soon as June 1. And I will continue to update Congress, but I certainly haven't changed my assessment. So I think that that's a hard deadline,"

According to a Moody's Analytics report, a default could lead to more than 7 million Americans out of work and the loss of $10 trillion in individual household wealth.

However, gold traded lower today temporarily disregarding the ongoing debt ceiling negotiations instead focused on statements made by Federal Reserve officials going against the grain of Powell's speech last week.

In an interview with CNBC, Minneapolis Fed President Neel Kashkar indicated that interest rates could go above 6% before the Federal Reserve reaches its 2% inflation target. This was an agreement with St. Louis Fed President James Bullard said that there might be a need to go higher on the policy rate.

As of 5:20 PM EDT, gold futures basis most active June contract is trading under pressure, down $7.90 and fixed at $1973.70. With the meeting between the president and the House Speaker to begin in about 10 minutes, we could see gold trade with extreme volatility this evening.

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Gary Wagner

Contributing to kitco.com

Time to Buy Gold and Silver

Tim Moseley

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Gold price could ‘easily’ regain 2k next week as more debt ceiling troubles ahead – analysts

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Gold price could 'easily' regain $2k next week as more debt ceiling troubles ahead – analysts

Even though gold is wrapping up the week down $30 — its worst performance since February — the Friday afternoon rebound keeps the bullish gold trend alive.

The gold market recovered after Federal Reserve Chair Jerome Powell said rates might not have to rise as much due to tighter credit conditions after the banking sector turmoil.

"The financial stability tools helped to calm conditions in the banking sector. Developments there, on the other hand, are contributing to tighter credit conditions and are likely to weigh on economic growth, hiring and inflation," Powell said at the Thomas Laubach Research Conference Friday. "So, as a result, our policy rate may not need to rise as much as it would have otherwise to achieve our goals. Of course, the extent of that is highly uncertain."

This was a sign that the Fed could pause in June. After Powell's comments, market expectations of a rate hike in June fell from nearly 50% to 20%, according to the CME FedWatch Tool.

The news calmed the gold sellers after market participants began to price in another 25-basis point hike next month and pared bets of a rate cut in the second half of the year.

At the May meeting, the Fed hiked for the tenth consecutive time, which brought the federal funds rate to a 5-5.25% range – the highest since mid-2007. In just over a year, the Fed raised rates by 5%. The next monetary policy meeting is scheduled on June 13-14.

On top of the shifting rate expectations, the debt ceiling progress was dealt a blow on Friday afternoon as talks to raise the federal government's $31.4 trillion debt cap paused.

"Wall Street thought we were going to see bill text over the weekend or early on Monday, with a potential vote in the middle of the week," said OANDA senior market analyst Edward Moya. "That seems less likely now and could raise the risk that we won't get an agreement before June 1st, the so-called X-date."

Keeping in mind the divisiveness of U.S. politics, the debt ceiling issue will get more heated again, Moya told Kitco News.

"You are going to start to see a bit more difficulty in negotiations. Gold will be in the wait-and-see mode to figure out which part of the economy will break," he said Friday. "The consumer is clearly weakening. A lot of the data still supports a recession."

Rate cut bets pared

One development that will continue to weigh on gold is pared-back rate cut expectations, Gainesville Coins precious metals expert Everett Millman told Kitco News.

"Almost everyone in the marketplace was convinced that the Fed was about to cut rates in the second half of this year. But because inflation didn't come down as much, the economy is holding up, and the unemployment rate is low, big traders are unwinding those rate cut bets," he said Friday.

And with gold testing record highs just over two weeks ago, traders are also taking some profits off the table, accelerating the move lower, Millman added.

Overall, it's been a disastrous week for gold, but it's ending on a positive note, Moya noted. "People are having second thoughts on whether we are headed towards a recession that is killing safe-haven demand," he told Kitco News. "This has been an interesting period where we really had so many risks on the table — banking crisis, debt ceiling, massive layoff announcements."

 

What's next for gold price

Millman's base-case scenario is that gold rebounds from here — something that it has done time and time again this past year.

"If you look at the pattern, gold does keep putting in higher lows and higher highs. Although I wouldn't rule out a drop to $1,900, my base scenario is to see gold rebound as it has each of the last several selloffs," Millman said.

After Powell's comments, there is a good chance that the Fed will pause in June, which gives the U.S. central bank optionality going forward, Millman noted.

"Keep in mind that it takes 12-18 months for rate hikes to really start showing up in economic data. The Fed has been hiking aggressively in a pretty short span of time, and we won't see results until the second half of this year. A pause in June would be reasonable," he said.

Gold's immediate resistance would be $1,980 and then $2,000 an ounce. A solid support level is at $1,960-50, Millman pointed out. If that fails, then $1,900 could come into play.

Moya also sees support at $1,950 and resistance at $2,000 an ounce. "If debt ceiling talks continue to struggle, prices could easily stabilize above the $2,000 level next week."

At the time of writing, June Comex gold futures were trading at $1,983.80, up 1.22% on the day.

 

Next week's data

Markets are closely monitoring the FOMC May meeting minutes next week, the U.S. GDP update, and the Fed's favored PCE inflation indicator.

"Inflation … looks set to remain elevated, which could keep the market on edge about a possible June interest rate hike," said ING chief international economist James Knightley. "Nonetheless, the activity backdrop continues to soften, with real consumer spending set to come in flat on the month in April. Recession risks remain high given the rapid tightening in lending conditions in the wake of recent bank failures, and we still see the potential for lower interest rates before the end of the year."

Tuesday: U.S. new home sales

Wednesday: FOMC May meeting minutes

Thursday: U.S. GDP Q1, U.S. jobless claim

Friday: U.S. PCE price index, U.S. durable goods order

By

Anna Golubova

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

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Gold rallies to daily high on short covering Powell remarks

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Gold rallies to daily high on short covering, Powell remarks

Gold prices have pushed to double-digit gains in late-morning trading Friday. Short covering by the shorter-term futures traders, after the recent solid price losses, is featured. Also, the yellow metal rallied as Federal Reserve Chairman Jerome Powell said in a panel discussion that developments in the banking sector may mean interest rates may not need to rise as much to meet the Fed’s policy goals. However, other comments Powell made at the panel discussion were not dovish, as he said the FOMC is strongly committed to returning to the 2% annual U.S. inflation goal. A sell off in the U.S. dollar index today is also aiding the precious metals market bulls. June gold last up $16.90 at $1,976.70.

Live 24 hours gold chart [Kitco Inc.]

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Jim Wyckoff

For Kitco News

www.kitco.com

Time to Buy Gold and Silver

Tim Moseley

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Ethereum News Today: Latest Developments and Market Updates

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Ethereum News Today: Latest Developments and Market Updates

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As we delve into the world of cryptocurrency, Ethereum (ETH) stands out as one of the most innovative blockchain technologies in the market today. Ethereum has been making headlines, with its value and market cap steadily increasing over the years, making it a major player in the crypto space.

Ethereum has been the driving force behind the development of smart contracts and decentralized applications (dApps) that have revolutionized the way we conduct transactions. Ethereum's blockchain technology has also been the backbone of the creation of non-fungible tokens (NFTs), which has taken the art world by storm.

With Ethereum 2.0 upgrade, the blockchain is transitioning from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism, which promises to be more energy-efficient and faster. This upgrade has been highly anticipated by the crypto community, and we can't wait to see how it will impact the market. Stay tuned for the latest Ethereum news, updates, and developments as we continue to explore this exciting technology.

Ethereum News Today

We have gathered the latest Ethereum news for you. Here are some of the most important developments in the world of Ethereum:

  • Ethereum Price Update: As of May 19, 2023, Ethereum is trading at $1,806.44, according to Forbes. This represents a 0.38% increase over the past 24 hours.

  • Crypto Market Sell-Off: Ethereum is not immune to the recent crypto market sell-off. On May 18, 2023, Ethereum dropped 7% amid wider crypto sell-off as traders assessed rate uncertainty, according to Business Insider.

  • Paul Tudor Jones on Bitcoin and Crypto: Legendary billionaire investor Paul Tudor Jones has recently expressed his concerns about the future of Bitcoin and crypto. In an interview with Forbes, he said that the 2022 crypto market crash that wiped away $2 trillion of value and plunged many major crypto companies into chaos, has galvanized U.S. regulators and lawmakers to take action.

  • Ethereum Price Prediction: According to MarketBeat, Ethereum is currently trading at $1,801.33, which represents a 1.30% decrease over the past 24 hours. The 1-hour range is $1,800.44 to $1,809.00, while the 24-hour range is $1,800.44 to $1,809.00. The 7-day range is $1,739.01 to $1,847.93.

  • Crypto Bulls Alert: According to ETHNews.com, crypto bulls are alert as Ethereum and altcoin teeter on the edge of a spectacular rally, hinging on ETH's price target.

That's it for our Ethereum news update. Stay tuned for more breaking news and updates on Ethereum and the crypto market.

Ethereum Price Update

As of today, May 19, 2023, the Ethereum price is $1,808.90 USD, according to CoinMarketCap. This represents a 0.78% decrease in the last 24 hours. The market cap of Ethereum stands at $217,573,557,112 USD, making it the second-largest cryptocurrency by market cap.

Recently, Ethereum has experienced a surge in price, almost doubling since falling to lows of around $15,000 per Ethereum late last year. This surge in price has been driven by a variety of factors, including increased adoption and usage of the Ethereum network, as well as increased interest from institutional investors.

Despite the recent price surge, it is important to note that the cryptocurrency market can be volatile, and prices can fluctuate rapidly. It is always important to do your own research and invest wisely.

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Overall, we are keeping a close eye on the Ethereum price and market cap, and will continue to provide updates as the situation develops.

Ethereum 2.0 Upgrade

As of May 19, 2023, Ethereum has undergone a major upgrade to Ethereum 2.0. This upgrade is designed to improve the scalability, security, and sustainability of the Ethereum network. In this section, we will discuss the Beacon Chain, which is a key component of the Ethereum 2.0 upgrade.

Beacon Chain

The Beacon Chain is the backbone of the Ethereum 2.0 upgrade. It is a proof-of-stake blockchain that is responsible for managing validators and organizing shards. Validators are responsible for proposing and attesting to blocks on the Ethereum network. Shards are smaller chains that are designed to increase the scalability of the Ethereum network.

The Beacon Chain introduces several new features to the Ethereum network, including:

  • Proof-of-Stake: The Beacon Chain uses a proof-of-stake consensus mechanism, which is more energy-efficient than the proof-of-work mechanism used by the current Ethereum network.
  • Sharding: The Beacon Chain introduces sharding, which allows for parallel processing of transactions and improves the scalability of the Ethereum network.
  • Validator Rewards: Validators are rewarded for participating in the network and helping to secure the Ethereum network.

The Beacon Chain is an important component of the Ethereum 2.0 upgrade. It is designed to improve the scalability, security, and sustainability of the Ethereum network. Validators play a critical role in the Beacon Chain, and they are rewarded for their participation in the network. With the introduction of sharding and proof-of-stake, Ethereum is poised to become a more efficient and scalable blockchain platform.

Decentralized Applications and Smart Contracts

Dapps

Decentralized Applications (Dapps) are digital applications that run on a blockchain network. These applications are designed to be decentralized, meaning that they do not rely on a central authority to function. Instead, they are built on a distributed network of computers that work together to maintain the application.

Dapps are built using smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. Smart contracts enable Dapps to operate autonomously, without the need for intermediaries.

One of the main advantages of Dapps is that they are highly secure and transparent. Since they are built on a blockchain network, all transactions are recorded on the blockchain and can be accessed by anyone. This makes it difficult for anyone to tamper with the data or manipulate the system.

Dapps can be used for a wide range of applications, from finance and gaming to social media and healthcare. Some of the most popular Dapps include:

  • CryptoKitties: a game where users can buy, sell, and breed virtual cats using cryptocurrency.
  • Augur: a prediction market platform where users can bet on the outcome of events.
  • Golem: a decentralized computing network that allows users to rent out their computer processing power.

Overall, Dapps are an exciting development in the world of blockchain technology. They offer a range of benefits, from increased security and transparency to greater autonomy and decentralization. As the technology continues to evolve, we can expect to see even more innovative Dapps being developed in the years to come.

Ethereum Transactions and Fees

When it comes to Ethereum transactions, there are a few things that we need to keep in mind. Ethereum transactions are essentially messages that are sent from one account to another. These messages can contain different types of information, such as the amount of Ether being transferred, the recipient's address, and other data.

The Ethereum network processes these transactions in a decentralized manner, which means that there is no central authority controlling the network. Instead, the network is maintained by a group of nodes that work together to validate and process transactions.

One thing that we need to keep in mind is that Ethereum transactions require a fee to be paid. These fees are known as "gas" and are paid by the participants in Ethereum transactions. The fees associated with Ethereum transactions are typically much lower than those associated with Bitcoin transactions. However, the fees can still vary depending on the network's congestion and the complexity of the transaction.

To get a better understanding of the fees associated with Ethereum transactions, let's take a look at some recent data. According to CryptoQuant, the average fee per transaction on the Ethereum network was around $20 on May 8th, 2023. However, this can vary significantly depending on the network's congestion and other factors.

To ensure that your Ethereum transactions are processed quickly, it's important to pay attention to the current gas prices and adjust your fees accordingly. You can use various tools and services to monitor gas prices and optimize your fees.

In conclusion, Ethereum transactions are an essential part of the Ethereum network, and fees are an important aspect to consider. By understanding how transactions and fees work, we can make informed decisions and ensure that our transactions are processed quickly and efficiently.

Ethereum Security and Updates

Ensuring the security of the Ethereum network is our top priority. We are constantly working to improve the security of the network and protect our users from potential threats. Here are some of the updates we have implemented recently:

  • Shanghai Upgrade: The Shanghai hard fork, also known as "Shapella," has been completed, bringing a new era of staking withdrawals for users who have locked up their Ether. This upgrade has also brought significant improvements to the network's security and stability.

  • Account Abstraction: We are currently working on implementing account abstraction, which will allow users to interact with smart contracts without having to own Ether. This update will make the network more accessible and user-friendly, while also increasing security.

  • Amazon Hardware Security Modules: A new wallet has been developed that uses Amazon hardware security modules to eliminate seed words. This will provide an additional layer of security for users' funds.

In addition to these updates, we are constantly monitoring the network for potential security threats and taking proactive measures to mitigate them. We encourage our users to take steps to protect their own security as well, such as using strong passwords and enabling two-factor authentication.

We believe that these updates and our ongoing commitment to security will help to ensure the long-term success of the Ethereum network.

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Ethereum and Blockchain Technology

As we all know, Ethereum is a decentralized, open-source blockchain platform that enables developers to build decentralized applications (dApps) and smart contracts. Ethereum is powered by its native cryptocurrency, Ether (ETH), which is used to facilitate transactions and pay for computational services on the network.

The Ethereum blockchain is built on the principles of decentralization, transparency, and security. It is designed to be a global, peer-to-peer network that enables anyone to build and deploy decentralized applications without the need for intermediaries or centralized authorities.

One of the key features of Ethereum is its support for smart contracts. Smart contracts are self-executing contracts that automatically enforce the terms of an agreement between two or more parties. They are written in code and run on the Ethereum blockchain, which ensures that they are tamper-proof and transparent.

Ethereum also supports the development of decentralized autonomous organizations (DAOs), which are organizations that are run by computer code and operate without the need for a central authority.

The Ethereum blockchain is also a key component of the Web3 ecosystem, which is a decentralized web that is built on top of blockchain technology. Web3 enables developers to build decentralized applications that are more secure, transparent, and efficient than traditional web applications.

In addition to its support for smart contracts and decentralized applications, the Ethereum blockchain also supports opcodes, which are instructions that are executed by the Ethereum Virtual Machine (EVM). Opcodes enable developers to write complex smart contracts and dApps that can interact with the Ethereum blockchain in a variety of ways.

Overall, Ethereum and blockchain technology are revolutionizing the way we think about trust, security, and decentralization. As the world becomes more decentralized, we believe that Ethereum will continue to play a key role in shaping the future of blockchain technology.

Cryptocurrency and ICO News

As we keep an eye on the Ethereum market, it's important to also stay up-to-date with the latest cryptocurrency and ICO news. Here are some highlights:

  • Bitcoin, the most well-known cryptocurrency, has seen a steady rise in value over the past few months. As of today, it is valued at over $40,000 per coin.
  • In the ICO world, there has been a recent trend towards launching on multiple blockchains. This allows for greater flexibility and reach for investors.
  • There has also been increased scrutiny from regulatory bodies towards ICOs. It's important for investors to do their due diligence and research any ICO before investing.
  • The rise of NFTs (non-fungible tokens) has been a major topic in the cryptocurrency world. These unique digital assets have been selling for millions of dollars, and have even caught the attention of mainstream media.
  • The environmental impact of cryptocurrency mining has also been a hot topic. Many cryptocurrencies, including Ethereum, are working towards more sustainable mining practices.

Overall, it's important to stay informed about the broader cryptocurrency and ICO landscape in order to make informed decisions about Ethereum and other investments.

Ethereum Staking and Collateral

We believe that Ethereum staking and collateral are two of the most important concepts that any investor or trader should be familiar with. In this section, we will explain what these terms mean and why they are relevant to the Ethereum ecosystem.

Staking

Staking refers to the process of locking up a certain amount of Ethereum (ETH) in order to participate in the network's consensus mechanism. Under Proof of Stake (PoS), validators, also known as stakers, are responsible for validating transactions and creating new blocks on the blockchain. In exchange for their work, they receive rewards in the form of newly minted ETH.

The benefits of staking are clear: it provides a way for investors to earn passive income on their holdings, and it also helps to secure the network by incentivizing validators to act in the best interests of the system. However, staking also carries some risks. For example, stakers may be penalized if they fail to validate transactions correctly or if they act in a way that is harmful to the network.

Collateral

Collateral refers to the amount of ETH that stakers must lock up in order to participate in the network. The collateral serves as a guarantee that validators will act in the best interests of the system, as they stand to lose their stake if they act maliciously.

The amount of collateral required to become a validator varies depending on the network and the current market conditions. In some cases, the collateral may be as low as a few hundred dollars, while in other cases it may be tens of thousands of dollars or more.

Overall, we believe that staking and collateral are two key concepts that anyone interested in Ethereum should be familiar with. While staking provides a way to earn passive income on your holdings, it also carries risks, and collateral serves as a guarantee that validators will act in the best interests of the network.

Non-Fungible Tokens and Ethereum

Non-Fungible Tokens, or NFTs, have become a hot topic in the world of cryptocurrency and blockchain technology. These unique digital assets are indivisible and cannot be exchanged for another asset of the same type. Instead, they can only be transferred in exchange for some sort of money, typically in the form of cryptocurrencies like Ethereum.

NFTs have gained popularity in recent years due to their ability to provide proof of ownership and scarcity for digital assets. This has led to a surge in the creation and sale of NFTs, with some selling for millions of dollars.

Ethereum is a popular blockchain platform that has become a hub for NFT creation and trading. The platform's smart contract capabilities allow for the creation of unique NFTs that can be easily traded and tracked on the blockchain.

NFT

NFTs can represent a wide range of digital assets, including artwork, music, videos, and even tweets. They are created using smart contracts on the Ethereum blockchain, which allows for the creation of unique, one-of-a-kind assets.

One of the key benefits of NFTs is their ability to provide proof of ownership and authenticity for digital assets. This is particularly important for digital art and other forms of media, as it allows creators to monetize their work and ensure that they receive credit and compensation for their efforts.

NFTs have also become popular among collectors and investors, who see them as a valuable asset class with the potential for significant returns. However, it's important to note that the value of NFTs can be highly volatile and is subject to market fluctuations.

Overall, NFTs have emerged as a powerful tool for creators and investors alike, providing a new way to monetize and trade digital assets. As Ethereum continues to evolve and improve its capabilities, we can expect to see even more innovation in the world of NFTs and blockchain technology.

Ethereum and AI

We believe that Ethereum and AI are two technologies that have the potential to revolutionize the world in the coming years. Ethereum's decentralized, programmable blockchain and smart contract capabilities could enable the creation of new AI-powered applications that are more transparent, secure, and efficient than existing solutions.

One of the most promising areas where Ethereum and AI could converge is in the development of decentralized autonomous organizations (DAOs). These are organizations that are governed by smart contracts and run on a blockchain, allowing for transparent and democratic decision-making processes. AI could be used to help automate some of the decision-making processes within these DAOs, making them more efficient and effective.

Another area where Ethereum and AI could work together is in the development of decentralized marketplaces for AI services. These marketplaces could allow developers to buy and sell AI algorithms and models on a blockchain, making it easier for them to access the latest and most advanced AI technologies.

We also believe that Ethereum's ability to support decentralized applications (dApps) could be a game-changer for the AI industry. Developers could use Ethereum's platform to create AI-powered dApps that are more transparent, secure, and private than existing solutions. For example, an AI-powered healthcare dApp could use Ethereum's platform to securely store patient data and run AI algorithms to diagnose illnesses and recommend treatments.

In conclusion, we believe that Ethereum and AI have the potential to transform many industries and create new opportunities for innovation and growth. As these technologies continue to evolve and mature, we are excited to see what new possibilities they will unlock.

Ethereum and Bitcoin

When it comes to cryptocurrencies, Ethereum and Bitcoin are two of the most well-known and widely used. While both are decentralized digital currencies, they have some key differences in terms of their design and functionality.

One of the main differences between Ethereum and Bitcoin is their purpose. Bitcoin was created as a peer-to-peer payment system, while Ethereum was designed as a platform for building decentralized applications (dapps) and smart contracts.

Another difference is their mining algorithms. Bitcoin uses the SHA-256 algorithm, while Ethereum uses Ethash. This means that mining Ethereum is more memory-intensive than mining Bitcoin, and requires more powerful hardware.

Despite these differences, Ethereum and Bitcoin have some similarities. For example, both are based on blockchain technology, which allows for secure, transparent, and decentralized transactions.

In terms of market capitalization, Bitcoin is still the largest cryptocurrency by far, with a market cap of over $1 trillion. Ethereum, on the other hand, has a market cap of around $350 billion. However, Ethereum has been gaining ground in recent years, thanks in part to its popularity among developers and its ability to support a wide range of dapps and tokens.

Overall, while Ethereum and Bitcoin have some similarities and differences, they both have a bright future in the world of cryptocurrencies. As more people become interested in decentralized finance and other blockchain-based applications, we can expect both of these digital currencies to continue to grow and evolve.

EY and Ethereum

At EY, we have been actively involved in the Ethereum ecosystem for several years. We believe that blockchain technology has the potential to transform multiple industries, and Ethereum is one of the most promising blockchain platforms out there. Here are some of the ways we have been working with Ethereum:

Enterprise Ethereum Alliance Board Membership

We are proud to be a member of the Enterprise Ethereum Alliance (EEA) board, which is a consortium of companies working to advance Ethereum and blockchain technology. We believe that collaboration is key to driving innovation in this space, and our participation in the EEA allows us to work alongside other leading companies to achieve this goal.

EY Blockchain Solutions

We have developed several blockchain solutions using Ethereum, including EY OpsChain and EY Blockchain Analyzer. EY OpsChain is a suite of blockchain-based solutions designed to help enterprises improve their supply chain management, finance, and other business processes. EY Blockchain Analyzer, on the other hand, is a tool that helps auditors analyze transactions on the Ethereum blockchain.

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Carbon Accounting on Ethereum

We have also built an Ethereum-based system to help companies manage their carbon footprints and meet their environmental goals. The system allows companies to track their emissions and carbon credits using blockchain technology, which provides a transparent and secure way to manage this data.

Zero-Knowledge Proofs

We have contributed a zero-knowledge proof layer 2 protocol into the public domain to help address increasing transaction costs on the Ethereum blockchain. The project, known as Nightfall 3, combines zero-knowledge proofs (ZK or ZKP) with a new model for handling transaction verification to increase efficiency and reduce transaction costs known as an optimistic rollup.

Overall, we believe that Ethereum has the potential to transform multiple industries, and we are committed to working with this platform to drive innovation and create value for our clients.

Centralized Exchanges and Ethereum

When it comes to Ethereum and centralized exchanges, there are a few things that we need to keep in mind. Centralized exchanges are platforms that are owned and operated by a single entity, which means that they have control over the funds that are deposited on their platform. This is different from decentralized exchanges, which are run by a network of users and do not have a central authority.

One of the main concerns when it comes to centralized exchanges is the risk of hacks and security breaches. If a centralized exchange is hacked, the funds that are stored on the platform can be stolen, which can lead to significant losses for users. This is why it is important to choose a reputable centralized exchange that has a strong track record when it comes to security.

Another concern when it comes to centralized exchanges and Ethereum is the impact that these platforms can have on the price of ETH. When users deposit ETH onto a centralized exchange, this can lead to an increase in the supply of ETH on the market. If there is not enough demand to absorb this increase in supply, this can lead to a decrease in the price of ETH.

Despite these concerns, centralized exchanges can also provide a number of benefits for users who are looking to trade Ethereum. These platforms often offer a wide range of trading pairs, which can make it easier to buy and sell ETH. They also typically offer more advanced trading features, such as margin trading and stop-loss orders, which can be useful for more experienced traders.

Overall, when it comes to Ethereum and centralized exchanges, it is important to weigh the pros and cons of these platforms carefully. While they can provide a number of benefits, they also come with risks that should not be ignored. As always, it is important to do your own research and choose a platform that meets your individual needs and preferences.

Tim Moseley

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Strong decline in gold as economic data moves the Feds policy more hawkish

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Strong decline in gold as economic data moves the Feds policy more hawkish

A virtual pivot of market sentiment in gold as the precious yellow metal has a deep price decline this week. On Tuesday, May 16 gold futures basis the most active June contract opened at approximately $2020 per ounce. Today gold futures traded to a low of $1954.40. The nearly $70 drop resulting from selling pressure on Tuesday and today is significant in that it has created strong chart damage revealing a shift from bullish to bearish sentiment. Yesterday gold futures traded and closed below the 50-day simple moving average. A strong technical indicator reveals that the short-term bullish momentum in gold has waned and could signal more downside pressure in the price of gold.

This recent pivot results from comments by Federal Reserve officials indicating a more hawkish monetary policy than previously believed or anticipated. Yesterday Austen Goolsbee President of the Federal Reserve Bank of Chicago said it was, “far too premature to be talking about rate cuts”. Other Fed officials came out in favor of a more hawkish monetary policy such as Loretta Mester, President of the Cleveland federal bank who said, “rates were not yet at a point where it could hold steady.”

Recent economic data reveals a robust economy in the United States that is continuing to recover from the pandemic recession. Proof of that began last week when the new U.S Jobless claims came in well under expectations along with the Philadelphia Fed Manufacturing index in the US which fell from -23.2 points in March to 031.3 points in April. This is the lowest number since May 2020. It also marks eight consecutive negative readings coming in well below expectations that predicted -19.2.

Statements by Federal Reserve officials combined with recent solid economic data have dramatically influenced the probability of what the Federal Reserve will announce at the next FOMC meeting which will begin on June 24. Currently, the benchmark rate of the Federal Reserve is between 5 and 5 ¼%. The probability that the Federal Reserve will pause rate hikes next month has dramatically decreased from 89.3% one week ago, and 58.6% today. The probability that the Federal Reserve may even raise rates by ¼% has risen from 10.7% last week to 41.4% today.

These factors were highly supportive of the dollar with the dollar gaining just shy of 3% since May 4. On May 4 the dollar index traded to a low of 100.50 and is currently fixed at 103.42 after trading to an intraday high today of 103.65. Because gold is paired against the dollar there is a negative correlation which means that dollar strength by definition will take gold prices lower. As of 5:37 PM EDT Gold futures basis the most active June contract is currently fixed at $1960.30 After factoring in today’s decline of $24.60 Or 1.23%%.

By

Gary Wagner

Contributing to kitco.com

Time to Buy Gold and Silver

Tim Moseley

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Gold slumps as Fed confirms its resolute stance on lowering inflation

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Gold slumps as Fed confirms its resolute stance on lowering inflation

In the span of just under two weeks, from Thursday, May 4 to Wednesday, May 17 we have seen gold drop substantially and concurrently the dollar gained substantially.

Gold traded to a high of $2085 on March 4 and today traded to a low of $1978 resulting in a drop of $107 in just under two weeks. This is a net decline of 5.26% per ounce. When we look at the dollar index it traded to a low of 100.53 on Thursday, March 4 and today traded to a high of 102.96. This means that the U.S. dollar when compared to a basket of eight other international currencies gained roughly 2.42% for the same period.

Comparing the percentage decline of gold to the percentage advance of the dollar index it is clear that dollar strength has been a major component to the fall in gold pricing. However, the decline in gold is not isolated to just dollar strength, additional selling pressure by market participants was also a major contributor.

It seems that the root cause of dollar strength as well as the substantial percentage decline in gold can be directly attributed to recent comments coming from Federal Reserve officials. In essence, Fed comments have reinforced the resolve and commitment to keep interest rates elevated and this is illustrated in the December 2022 “dot plot” showing that they would keep their benchmark interest rate (Fed fund rate) elevated throughout 2023. More importantly, they have expressed that a rate cut this year remains highly unlikely.

The Federal Reserve continues to use its primary tool to reduce inflation which is to raise interest rates which cause an economic contraction. An economic contraction works to lower the price of goods and services. Simply put the Federal Reserve works with the principle of supply and demand economics. Higher prices for goods and services will reduce demand.

Recent comments by the Federal Reserve have confirmed their commitment. According to MarketWatch, Underscoring the Fed’s resolve to curb inflation, Chicago Fed President Austan Goolsbee had said on Tuesday it was “far too premature to be talking about rate cuts,” while Cleveland Fed President Loretta Mester said “rates were not yet at a point where it could hold steady.”

As of 5:55 PM EDT Gold futures basis the most active June contract is currently fixed at $1985.70 after factoring in today’s decline of $7.30 Or 0.37%. The U.S. dollar is currently trading at 102.73.

Gary S. Wagner

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

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How HappyMinerus Works: A Comprehensive Guide

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How HappyMiner.us Works: A Comprehensive Guide

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Happyminer.us is a cloud mining platform that provides users with the opportunity to mine cryptocurrencies without the need for expensive hardware or technical expertise. As a result, it has attracted a lot of attention from people looking to get into the cryptocurrency market. In this article, we will explore how Happyminer.us works and what you should know before investing your time and money into this platform.

At its core, Happyminer.us is a cloud mining service that allows users to rent mining power from their platform. This means that users can earn cryptocurrency without buying expensive hardware or setting up complex mining rigs. Happyminer.us offers a variety of investment packages, each with different mining power and profitability levels. Users can choose the package that suits their needs and start mining right away. However, it is important to note that the profitability of each package can vary depending on market conditions and mining difficulty.

What is Happyminer.us?

At Happyminer.us, we are a licensed cloud mining company that was founded in 2018 in the United States. Our primary focus is on providing ease of use and a legit platform for our clients to invest in bitcoin mining. We offer lucrative and risk-free cloud mining contracts for each user.

Our data centers are located in Iceland, Norway, and Canada, and we own industrial facilities with a big tech park of professional Bitcoin mining rigs. With over 2,800K+ individuals from all around the globe currently earning cryptocurrency with us, we take pride in being a trusted platform for bitcoin mining.

We understand that our clients are looking for fixed returns on their investment, and we provide them with that. Our platform offers a daily payout system, which allows our clients to withdraw their earnings at any time. We have made the withdrawal and deposit process as easy as possible, and our clients can do it with just a few clicks.

We take the issue of scam very seriously, and we have taken steps to ensure that our clients' investments are protected. We have a license for bitcoin mining, and we are transparent in our operations. Our clients can be assured that they are investing in a secure and trustworthy platform.

In conclusion, Happyminer.us is a cloud mining platform that offers ease of use, a legit platform, and a fixed return on investment. Our clients can invest in bitcoin mining with confidence, knowing that they are dealing with a licensed and trustworthy platform.

How Does Happyminer.us Work?

At Happyminer.us, we offer cloud mining services that allow you to earn cryptocurrencies without having to purchase expensive mining equipment or manage complex mining operations. Our platform utilizes state-of-the-art technology and industrial facilities to provide you with a reliable and efficient mining experience.

Mining Package Options

We offer a variety of mining packages to suit your needs and budget. Our mining packages include Bitcoin, Bitcoin Cash, Dogecoin, and Dashcoin mining. Each package comes with a specific hash provider, daily yield rate, and minimum deposit amount. You can select a package that suits your investment goals and start earning passive income right away.

Passive Income and Daily Yield Rate

With Happyminer.us, you can earn passive income by investing in our mining packages. Our daily yield rate ranges from 0.5% to 2.5%, depending on the mining package you choose. You can track your daily earnings and profits in your account dashboard. We ensure that our mining rigs are always up and running, so you can earn a steady stream of income.

Referral Program and Affiliate Rewards

We offer a referral program that allows you to earn additional rewards by inviting your friends and family to join Happyminer.us. You can share your referral link on social media, blogs, or forums and earn a commission on every deposit made by your referrals. You can also become an affiliate and earn higher rewards by promoting our platform on a larger scale.

We ensure that our platform is trustworthy and secure. Our website is protected by SSL encryption, and we have implemented advanced security measures to protect your personal and financial information. We operate from a tech park that is equipped with the latest technology and infrastructure to provide you with a seamless mining experience.

In conclusion, Happyminer.us is a reliable and efficient cloud mining platform that allows you to earn passive income by investing in our mining packages. We offer a variety of mining options, a high daily yield rate, a referral program, and affiliate rewards. Join us today and start earning cryptocurrencies without any hassle.

Customer Support and Security

At happyminer.us, we prioritize our customers' satisfaction and security. We strive to provide excellent customer service and ensure that our platform is secure and reliable for all our users. In this section, we will discuss our customer service and reviews, AIG insurance, and security measures.

Customer Service and Reviews

Our customers' satisfaction is our top priority, and we are proud to have received numerous positive reviews from satisfied customers. We encourage our users to leave reviews on Trustpilot, where we have a 5-star rating. Our support team is always available to assist you with any questions or concerns you may have. You can reach us through our online support system or by emailing us at [email protected]

AIG Insurance and Security Measures

We understand that investing in bitcoin mining companies can be risky, which is why we have partnered with AIG insurance to provide our users with additional security. Our investment packages are designed to be easy-to-use and affordable, with daily yield rates that are competitive with other bitcoin mining companies.

We also take security very seriously and have implemented various security measures to protect our users' investments. Our platform is protected by DDoS protection, and we use SSL encryption to ensure that all data transmitted between our servers and your computer is secure. We also have a strict anti-fraud policy to prevent scammers from accessing our platform.

In terms of fees, we offer transparent pricing with no hidden fees. Our withdrawal process is also fast and easy, allowing you to withdraw your profits at any time.

We also have an affiliate program that rewards users for referring their friends to our platform. You can earn a referral reward of up to 10% of your friend's investment, and there is no limit to the number of referrals you can make.

In conclusion, at happyminer.us, we prioritize our customers' satisfaction and security. We provide excellent customer service, have partnered with AIG insurance to provide additional security, and have implemented various security measures to protect our users' investments. We offer transparent pricing with no hidden fees and have an easy-to-use withdrawal process. Our affiliate program also allows users to earn referral rewards for referring their friends to our platform.

Tim Moseley

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