HOME

CBDC: The Greatest Violations of Human Rights in the Central Banking History

Leave a comment

CBDC: The Greatest Violations of Human Rights in the Central Banking History 

The creation of blockchain technology solved a decades-long computer science problem and released a financial revolution in the form of cryptocurrency. Digital currency has taken the world by surprise. It has been adopted by hundreds of millions of people globally and is worth approximately $1 trillion in market capitalization based on daily fluctuations in US dollar prices.

As you can see, the legacy system has closely watched the rise of bitcoin with a combination of admiration and fear. Many traditional institutions, especially central banks, are impressed with the creation of genuinely digital currency, along with how quickly people have adopted this technology in every economy. These people are observing in fear as they admit that their institutions have no control over the money supply in this new digital financial system.

The control and production of money have historically been reserved for central banks, but this monopoly on money is directly tied to the central bank's close relationship with the government. The government has a monopoly on violence, so they can ensure that central banks will continue their precise control and production of money. Any attempt to circumvent the main banking structure has been met with a swift and ruthless response.

This is why the decentralization of cryptocurrency is so essential. Since central banks can not rely on governments to close down this new entrant to the financial system, central bankers have been forced to examine how they can contend in the free market.

Central bankers aren't known for being innovative. I would argue that central bankers are profitable because they move at a glacial pace and make systemic bets on the world-changing very slowly. But crypto has threatened these institutions to consider digitizing their fiat currencies in a way that emulates the blockchain technology but contains some key differences.

Digitizing the dollar, euro, peso, naira, etc. is merely a technology upgrade. The monetary policy of these fiat currencies is unchanged. Similar to how fiat currencies were transitioned to electronic CUSIPs in centralized databases, central banks are considering a technology upgrade to token-based fiat currencies that are compatible with digital wallets.

So why are they considering this transition?

The optimistic person would argue that incorporating new technology is an attempt at modernization for an antiquated system. Users of central bank digital currencies (CBDCs) could send any amount of money whenever they want. The idea of long hours of operations would be a thing of the past. The payment rails that CBDCs will be built on would be more efficient, faster, have reasonable transaction fees, etc. Lastly, there would be increased transparency in the system, which theoretically could decrease crime and improve the market's safety.

That is the positive perspective. But we have to be extremely careful here. Central bank digital currencies will likely be one of the most significant human rights violations in history.

Central bank digital currencies eliminate the privacy and decentralized nature of physical cash. It creates an environment where central banks control every aspect of a citizen's financial life.

Here are some instances of the awful events that we can expect to see in the coming decades:

Personalized inflation

Central banks can manipulate interest rates and expand/contract the money supply. Any modifications that they make are applied to all citizens equally. Market participants may likely make decisions to benefit or suffer from these outcomes. Nonetheless, the dollars I hold are subject to the same monetary policy as yours. This is going to change with CBDCs.

The central bank can personalize the financial approach to the individual. Just as your search results, newsfeed, and music playlists are personalized based on enormous amounts of data, the same is coming to money. Maybe I get a higher inflation rate to get me to spend money while you receive a lower inflation rate. Differentiation of Monetary Policy can be reduced in a million ways, including where you live, who you are, your wealth status, your occupation, your purchase history, and much more.

Financial censorship

Once a central bank's digital currency is in a population's hands, the central bank has solidified complete control. They will no longer need the court system or summon emergency authorities to tell you whom you can transact with. This can all be executed through remote, digital technologies.

These central bankers can see what is in your bank account, whom you transact with, what you purchase, and anything else they are curious about in your financial life. That full transparency with the state removes all elements of privacy while also allowing the institutions to censor any transactions that go against what they want, regardless of whether they have a legitimate reason or not.

Social credit system

When central banks and governments gain complete control over the financial system, they can reward or punish individual citizens for their actions. Have you been overeating candy? You can't buy candy anymore. Have you been gambling? Now you can't use public transportation heading in the casino's direction.

This sounds like crazy talk until you realize that the Bank of England is openly discussing this in public now. China already has one in place. Canada is executing one in real-time right now. Are you fat? Only healthy food can be purchased. Do you associate with people the central bank doesn't like? No entertainment for you. This is a deadly slippery slope that is coming quickly.

Expiration of money

Central banks would constantly try to incentivize people to spend more money in the economy to increase the momentum of money. Without the speed of cash, the system starts to break down. So what better way to increase the money rate than to have people's money expire if they don't spend it in a certain period. The United States already has a version of this in operation through SNAP benefits and EBT cards, where the money expires one year after it is issued unless it has been used. The intention is that the government will enhance this idea of expiration of funds to include shorter timelines and a more specific number of programs in the future.

Image courtesy of Digitalasset

These are just four examples of various activities that I anticipate central banks will engage in once they successfully create and distribute central bank digital currencies (CBDCs). As the saying goes, absolute power corrupts absolutely. The dream of every dictator or authoritarian leader globally is to have complete control over every aspect of their citizens' lives. Suppose the government can not only censor your financial transactions based on a social credit system, but it can also personalize the monetary policy and give you money with an expiration date. In that case, we are headed to a dystopian future that no one will want to live in.

The fundamental human right is that we are all born free people. The creation of central bank digital currencies will eliminate that premise. Every human born will be starting in an authoritarian state that requires them to be a digital slave to a central bank with total control over their life. If you don't have the freedom to transact, you don't have freedom at all.

Central bank digital currencies are the next frontier for the battle for freedom. Every human being should have the right to financial privacy and independence. This is a meaningful conversation that must start now. Without global awareness, central banks will pull off the most significant human rights violation, and citizens will cheer them on while they do it.

 

References:

ecb.europa.eu

Sciencedirect

 

 

Tim Moseley

HOME

Gold holds above key support and the tug-of-war continues

Leave a comment

Gold holds above key support, and the tug-of-war continues

Whether you describe the underlying cause of recent changes in financial assets as a tug-of-war, double-edged sword, or battle of opposing forces, inflation versus rising rates continues to cause market sentiment to oscillate. Depending on if inflation or rates are the primary focal points of market participants. That sentiment results in bullish or bearish currents for gold and the dollar as safe-haven assets.

Today, gold traded to a high of $1850.30 a low of $1824.50 and as of 5:55 PM, EDT had a fractional uptick. Gold futures had a trading range of approximately $25 but only managed to gain $0.90 on the day. August gold futures are currently fixed at $1839.70. This could be cited as a true example of opposing forces yielding no victory for either faction. With the FOMC meeting out of the way for this month, traders are awaiting the most recent inflationary data.

Today’s fractional gains in gold prices are occurring in conjunction with dollar weakness which provided tailwinds for pricing. The dollar index lost 0.2% today and is currently fixed at 104.00. Crude oil recently has traded as high as $123 per barrel. However, oil prices have softened and are currently fixed at $104.19. While crude oil prices are certainly still elevated and above $100 per barrel, oil has retreated over 15% in the last two weeks.

On Thursday, June 30 the government will release the Personal Consumption Expenditures Price Index (PCE) for May. The CPI (Consumer Price Index) showed no indication that inflationary pressures were abating, in fact, it showed just the opposite with the inflation index running at its highest level since the pandemic at 8.6%. The most recent report for the Personal Consumption Expenditures Price Index was 6.3% in April, 6.6% in March, and 6.3% in February.

Chairman Powell refers to this index as a measurement of news headlines because it includes costs of both food and energy which is stripped out of the PCE which is a measure of core inflation. Because the tools of the Federal Reserve cannot address changes in energy and food costs the Federal Reserve prefers the PCE to the CPI.

The PCE inflation report will be a key component aiding Federal members at the July FOMC meeting as they determine potential changes in their tightening monetary policy. During the press conference of the FOMC meeting this month Powell said that it is highly likely that the Fed will raise rates by three quarters of a percent or 75 basis points once again in July.

With the latest economic outlook from the Federal Reserve indicates an economic contraction and reduced GDP coupled with a higher unemployment rate certainly opens the door for the possibility of stagflation. Next week’s PCE report will a major part of the data-dependent decisions made by the Federal Reserve.

 

By Gary Wagner

Contributing to kitco.com

Time to buy Gold and Silver on the dips

 

Tim Moseley

HOME

Jack Dorsey’s new Web 50 initiative

Leave a comment

Jack Dorsey’s New Web 5.0 initiative

by Jeff Brown, editor, The Bleeding Edge

 

 

Does anybody know what happened to Web 4.0?

We have been closely tracking the rise of Web 3.0. How could we not, as it’s the next generation of the internet using digital assets and blockchain technology?

The goal is to return the internet to what it was intended to be – free, open, censorship-resistant, and unhindered by the centralized control of big governments and corporations.

Well, Jack Dorsey just revealed his grand plans in a little-known subsidiary inside of Block (formerly Square) called TBD. It’s all about building a decentralized version of the internet that Dorsey calls Web 5.0. He skipped right over Web 4.0.

Web 5.0 is very similar to Web 3.0, except it is centered entirely around Bitcoin. Rather than enabling many different blockchain projects, each with its own native digital assets, Web 5.0 focuses on building applications on top of the Bitcoin blockchain.

In industry lingo, we can think of it as a “Layer 2” for Bitcoin.

And Web 5.0 appears to focus heavily on a self-sovereign identity service. This would put individuals back in control over their own data. It would also give them control over their history on the internet.

Instead of giant corporations knowing everything about everybody, Web 5.0 users would be able to choose who they share their information and data with.

 

Here’s a great example from TBD’s presentation deck:

TBD’s Presentation

Web 5.0 TBD

Source: TBD

 

On the left, we can see the Web 2.0 model. People don’t own their own data. Instead, they must create accounts with every entity they interact with, divulging sensitive data to each.

On the right is the Web 5.0 vision. Users own all their own data. Then they share it only with the entities they interact with… and only for as long as necessary.

For example, let’s think about what happens when we take a trip. We book a hotel, buy a plane ticket, and maybe even rent a car in the city we plan to visit.

Each of these entities – the hotel, the airline, and the car rental company – could share our data with other companies in the city, basically letting them know we will be in town on those specific dates. Then those companies could start targeting us with advertisements because they already have all of our information.

In the Web 5.0 world, this couldn’t happen. If we wanted to keep our trip a secret, we would only share our data with those three entities we need to interact with.

What’s more, we could selectively share our data with applications that would make recommendations based on our own preferences and the location of our hotel. For example, a Web 5.0 restaurant app could show us the best dining options within a 10-minute radius of our hotel.

The key here is that only the application would get our data – not the other companies. In a Web 5.0 world, only those entities we share our data with will have access to it.

 

This is absolutely the direction the internet is headed

That said, Dorsey’s Web 5.0 model isn’t a new idea. Internet pioneer Tim Berners-Lee has been doing a lot of work on his own blockchain project to enable something similar to what TBD is describing here.

So we don’t know yet if the march toward Web 5.0 will be led by current Web 3.0-style blockchain projects or Bitcoin-centric Web 5.0 applications. But either way, it’s headed in the right direction.

I doubt that the world of blockchain will be bitcoin-centric. There are simply too many other projects of substance that solve specific problems and use cases.

At a much higher level, the importance of these developments is a sign of what’s to come. The days of Google and Facebook’s monopolistic control over the internet are numbered.

 

 

New Opportunities Are Emerging For Citizens of The World.

Freedom and democracy may appear to be struggling to stay alive in America, but there may be a knock-out punch ready to be released. The evolution of the blockchain-enabled metaverse is going to enable the 'Citizens of the World' to gain their own Freedom by democratizing power and creating a new world with new rules, new players, and new opportunities. For 99.99% of us, the metaverse will improve our real-world lives through the democratization of power and opportunity.

Along with the major long-term trend of society towards decentralization and smaller-scale organizations, there are new opportunities developing to help 'Preparers' in the cryptocurrency sector. Businesses are beginning to issue their own Crypto Coins that can be traded on Cryptocoin Exchanges.

Markethive.com for example will be releasing its HiveCoin (HIV) in the coming weeks. It has tremendous upside potential that is outlined in a Video by Founder Tom Prendergast, "Entrepreneur Advantage…".

Not only that, if you go to their website and register as a FREE Member, you will be given 500 HiveCoins for "FREE" along with access to several Earning Opportunities and online tools to increase your HiveCoin balance.

Be sure to check it out today – Markethive.com

Markethive

Tim Moseley

HOME

The Psychology Of Marketing

Leave a comment

The Psychology Of Marketing

 

Marketing aims to identify and satisfy customer demands by providing products and services. The marketing process includes exploring, creating, and delivering value to meet a target market's needs, whether online or at trade shows and public events. 

The decision to launch a marketing campaign is reasonable based on several factors, such as the availability of products, the need to correct erroneous information, or a desire to drive traffic to a particular website. 

You can implement a marketing campaign to emphasize specific themes or attributes and select a target audience. These themes or features may inform customers about the value of that particular product or service or inspire them to purchase it. It is essential to know your target demographic, as it allows you to tailor your ads to meet their needs and desires.

Marketing arose as a result of the rapid development of civilization. As long as there was an excess of demand over supply, manufacturing companies could concentrate on production only. However, with the rapid growth of technology, the production process accelerated, and gradually the market began to satiate until supply began to exceed demand. At that moment, solving how and what to produce was already necessary. 

With the modernization and simplification of production, the number of companies on the market also grew, and consumers got more choices. With increasing competition, companies began to address the question of what steps to take to make consumers choose their products. And hence there was space for the emergence of marketing.

 

Thus, marketing creates links between the market and businesses. It is based on human needs and desires. The human factor is applied and manifested both on the demand and supply sides. It is evident that psychology will also play a role in marketing.

Five Basic Psychological "Tricks."

1. Reciprocity (commitment)

    – give a little something for free, and then it'll come back to you

      as no one wants to be in debt 

2. Liquidation Offer and Consistency

    – we don't all like to make decisions 

    – we are afraid of the new and the unknown

    – we'd better shop at a friend's

3. Price Anchor and Contrast

     – When something's on sale, we go and shop

4. Paralysis of Decision-making

    – make it easier for people to make a choice and make an offer that, at a glance, 

      is the best possible solution you can buy

5. Social Proof

    – a lot of people have already bought it.

More About These Five Points:

What is the principle of reciprocity?

One person gives another a "gift," and the donee feels obligated. Thus, they feel a natural obligation to return the gift (to meet the following requirements of the donor).

What is a liquidation offer?

It is an offer so convenient and cheap that we do not have to think about buying for a long time. The price tag of such a liquidation offer is often meager, so we just do not have to consider for a long time whether it will pay off for us or not.

How does the principle of consistency work?

The principle "advises" us not to take risks and do what we already know and have tried. It protects us from the fear of the unknown. It is the principle people follow when they shop in the same supermarket for years, even if a few meters away is a new modern supermarket, which is cheaper and has a broader range.

What is a price anchor?

Discounts in marketing can work precisely because of the price anchor. It is the price tag or value of the goods. For example, when a product costs 100 USD, the price anchor equals 100 USD. When the goods suddenly have an "action" price of 69 USD, it seems advantageous to us thanks to the price anchor.

What is the paralysis of decision-making?

It is caused by more similar offers where the customer hesitates on what to choose.

Eliminate selection where possible or pre-select the most crucial option – the most effective solution to decision paralysis.

How does contrast work in marketing?

It is similar to a price anchor. In short, we compare two variants (more expensive / cheaper). And naturally, we choose the more profitable one. 

If it is not evident at first glance which offers are better, then follows a decision paralysis. In this case, customers often choose neither because they are looking for the best possible solution (convenience, savings, etc.) and cannot make a choice.

What is social proof?

It's confirmation from other people that our decision is the right one. These are references, sales figures, but also, for example, restaurants full of people.

 

 

Half of all our activities are based on habit. 

In marketing, on the contrary, we need to break the potential customer out of his habit. But psychologists have observed that we are most accessible when we have a life change – we are moving, we have a baby, we are approaching 20., 30., 40., 50…. birthday. 

Finally, Something About Colours

Colour psychology is the study of hues as a determinant of human behaviour.

Carl Jung was one of the pioneers of the interpretation of colours and their significance for the human psyche.

Jung said,"colours are the mother tongue of the subconscious." Colour influences perceptions that are not obvious, such as the taste of food. Colours have qualities that can cause certain emotions in people. They can carry a specific meaning.

        

 

What Is New In The Last Years

Biochemical marketing, as the new type of marketing is called, can increase efficiency by up to half and reduce costs by 70-80% in the format of low-cost multi-layered marketing. And in doing so, it is enough to know and use the biochemistry of four substances generated in a healthy human body: serotonin, dopamine, endorphin, and oxytocin.

Each of these substances has its own features and functions. Still, they are all responsible for positive changes in the human body, increasing the level of trust between people, reducing stress and anxiety, and creating a sense of well-being. And thanks to this, low-cost marketing can be done through public relations, social media, events, etc., with the help of biochemistry.

 

In no case should we forget, whatever methods we use, that our goal is a satisfied customer who returns. The applied psychology of the marketing world helps to find the necessary keys to understanding how the human mind works and is the basic knowledge of getting potential customers to buy your products eventually.

 

Although, at first glance, marketing may seem like a simple matter, if you delve into the issue more, you may start to feel a little lost. Markethive will provide you with comprehensive marketing tools. It is a platform for entrepreneurs with many innovative features. You will find all the tools for your business under one roof and have the opportunity to contribute to the spirit of friendly cooperation.

"Marketing is a war of perceptions.“         Ivo  Toman

 

Sources:

https://www.marketingovenoviny.cz

https://foxentry.com

https://www.dusansoucek.cz

 

 

 

Tim Moseley

HOME

Gold holds above a key support level in light of rising interest and yields

Leave a comment

Gold holds above a key support level in light of rising interest and yields

Gold continues to trade in an extremely narrow range as the precious yellow metal reacts to two opposing forces; rising interest rates and inflation. However, the recent price declines in gold have been shallow and short-lived at best. Most importantly, gold prices have held above a key support level which is Fibonacci based. The data set used for this Fibonacci retracement set contains a long period of data. It begins at $1678 which is the low created in August 2021, up to this year’s highest value of $2077. This data set covers a price range of approximately $400.

Chart number one is a daily chart of the continuous contract of gold futures. It currently is representing the most active August 2022 contract. After hitting this year’s high in March what followed was a deep correction moving gold from $2077 to $1785. Gold dropped a total of $292 or 15.12% in approximately 2 ½ months. This correction was directly attributable to market participants' focusing on dollar strength the result of rising interest rates and yields.

What followed after gold hit $1785 was an initial rally up to $1881 finding resistance at the 50-day moving average and then correcting to approximately $1807 before forming a base and regaining some value.

Chart number two is a daily candlestick chart of gold which has been enlarged to detail the most recent price activity. Today gold traded to a low of $1830.70 which is $0.10 above the 61.8% Fibonacci retracement. It is widely recognized amongst technical traders that a deep acceptable correction will typically go to the 61.8% Fibonacci retracement and begin to move higher reigniting the rally which occurred before the correction.

If gold can hold above the key support level of $1830 it will find minor resistance at the 200-day moving average which is currently fixed at $1843.20. Above the 200-day moving average, the next resistance level gold could encounter if it continues to rise from this price point is approximately $1860 which is the high achieved on both Thursday and Friday of last week. Major resistance is currently fixed at $1872.60 which is based upon the shortest term 50-day moving average.

If gold futures can hold $1830 it will either form a foundation at this price point and consolidate, or start a new rally from this base. With the next FOMC meeting scheduled for the end of July, market participants will prioritize their focus on inflation. If inflation continues to run hot, we can expect to see gold move to higher pricing. However, if inflationary pressures begin to abate, we could expect to see gold continues to be pressured resulting in lower prices. I believe that inflation will continue to run hot and continue to be not only persistent but elevated.

By Gary Wagner

Contributing to kitco.com

Time to buy Gold and Silver on the dips

 

 

Tim Moseley

HOME

Choosing Your Immigrants

Leave a comment

Choosing Your Immigrants

by Jeff Thomas, editor, International Man Communique

 

Choosing Your Immigrant

 

In the 18th century, America was made up primarily of people who, of necessity, had had to work hard. Had they not taken full responsibility for their own welfare, there was no one else to do it for them and they would have starved. As this was the case, anyone who did arrive on American shores who were unwilling to work and wanted others to provide for him could expect to find no sympathy and might well starve.

In the 19th century, the former colonies had become the United States. Expansion was underway and the young people of the 18th century became the entrepreneurs of the 19th century. In order to continue to get the menial tasks accomplished, millions of immigrants were needed. Those who were welcomed were those who were prepared to start at the bottom, often live in poor conditions, receive no entitlements, and compete for even menial jobs. If they accepted these terms, they received the opportunity to immigrate and work.

Also, in the 19th century, the US expanded to the West coast, covered the nation with railroads, and created the industrial revolution – the greatest period of expansion in US history.

In the 20th century, income tax was implemented, the Federal Reserve took over the dollar and the "New Deal" Introduced the concept of entitlement. It was a mixed century of wealth generated by the industrial revolution, fighting against the new concept of entitlement.

In the 21st century, immigrants in large numbers were again encouraged to come in. However, unlike in the 19th century, they were not encouraged on the basis of starting at the bottom, often living in poor conditions, receiving no entitlements, and competing for even menial jobs.

Quite the contrary. They not only were guaranteed welfare, schooling, and housing, they would not be required to work at all and, if they committed crimes, they were likely to be released without prosecution. They, in fact, were afforded privileges above that of American citizens.

Today, American conservatives are stating that immigration must be curtailed, as immigrants are inherently usurious. Conversely, liberals are stating that America was built on immigration and the way forward is to open the doors to all who wish to enter.

Both these assumptions are incorrect

It’s the most effective means of replacing those at the lower positions, as the existing workers move into higher positions. This has been the tradition since the formulation of the US.

The debate should instead be over which people are chosen to immigrate.

In every country, in every era, there are always some people who understand work ethic and responsibility. They are the producers. There are also always some who have no desire to work or otherwise take responsibility for themselves. They are parasites.

In the 19th century, this simple principle was understood, and every single immigrant recognized that, if he wasn’t prepared to work and take responsibility for himself, he might well starve. That being the case, those who left their home countries to migrate to America were, of course, producers. (The parasites never even got on the boat.)

But in the 21st century, the US government supports the collectivist concept that potential immigrants must be offered more entitlements than they ever had at home, even to the point that they’ll have rights that Americans don’t have. Of course, the people who come will not be the producers. They will be the parasites.

So, let’s do a comparison:

Producers:

  • Prepared to start at the bottom
  • Prepared to work hard enough to better themselves
  • Prepared to take responsibility for their own well-being
  • Prepared to respect the laws of the host country
  • Prepared to have gratitude for the opportunity to better themselves

Parasites:

  • Reluctant to accept low-level jobs
  • Not prepared to work to better themselves
  • Expect others (the host government) to take responsibility for their well-being
  • Not prepared to respect the laws of the host country
  • Expect to never be satisfied, no matter what level of privilege they’re afforded

Once the above is put in perspective, the reader must then accept that his government is not only not doing what’s good for his country, he’s doing the exact opposite of what’s good for his country.

And, then, of course, he must ask, "Why?"

There are two possible answers. It may be that the political leaders of the US are quite delusional – to the point that, whilst they may be patriotic, they fail to understand the simple equation of worker mentality.

Or it may be that the political leaders thoroughly understand that the mass immigration of parasites is destructive for their country, but also realize that such immigration increases their power level.

In Europe, this question is more easily answered. The same trend is taking place there, and the people of literally every country in the EU are calling loudly to stop the mass wave of parasite immigration, yet the EU itself is stubbornly insisting that the immigration not only continue, but expand.

Brussels knows full well that, if enough parasites enter the system and eventually receive the right to vote, they will always vote in favor of a central government that provides them with entitlements. Once their numbers substantially exceed 50% of all voters, the collectivist oligarchy in Brussels will become autonomous. Elections will become meaningless and power will remain with the Brussels elite permanently.

In America, of course, the veil has not fallen away from the government’s objective, to the degree that it has in Europe. Roughly half of Americans see the government program of parasite immigration as a moral imperative.

And, of course, both the government and the media are doing all they can to enforce this propaganda. They present parasite immigration supporters as "good people" and objectors as "bad people."

History is rife with examples of populations that were hoodwinked into believing that they were "good people" because they supported an idiotic precept that was, in fact, only intended to increase their government’s power over the people.

In all cases, this has ended badly and there can be little doubt that, when this one hits the history books, it will also be looked back on as a grave error in judgment.

 

New Opportunities Are Emerging For Citizens of The World.

Freedom and democracy may appear to be struggling to stay alive in America, but there may be a knock-out punch ready to be released. The evolution of the blockchain-enabled metaverse is going to enable the 'Citizens of the World' to gain their own Freedom by democratizing power and creating a new world with new rules, new players, and new opportunities. For 99.99% of us, the metaverse will improve our real-world lives through the democratization of power and opportunity.

Along with the major long-term trend of society towards decentralization and smaller-scale organizations, there are new opportunities developing to help 'Preparers' in the cryptocurrency sector. Businesses are beginning to issue their own Crypto Coins that can be traded on Cryptocoin Exchanges.

Markethive.com for example will be releasing its HiveCoin (HIV) in the coming weeks. It has tremendous upside potential that is outlined in a Video by Founder Tom Prendergast, "Entrepreneur Advantage…".

Not only that, if you go to their website and register as a FREE Member, you will be given 500 HiveCoins for "FREE" along with access to several Earning Opportunities and online tools to increase your HiveCoin balance.

Be sure to check it out today – Markethive.com

Markethive

Tim Moseley

HOME

Gold will shine bright as Bitcoin cryptocurrencies collapse

Leave a comment

 

Gold will shine bright as Bitcoin, cryptocurrencies collapse

The gold market is holding firm in relatively neutral territory, trading in a narrow range between $1,800 and $1,850 an ounce; however, some commodity analysts are optimistic that gold could see renewed investors' interest as sentiment in financial markets rapidly disintegrates.

 

Specifically, some analysts see gold finding new safe-haven demand as investors flee the cryptocurrency market.

In 2021, Bitcoin's rally to an all-time high of $65,000 an ounce took away some of gold's luster. Last year some analysts said that Bitcoin's rally reduced gold's market valuation by as much as $200. Many investors saw Bitcoin and other digital currencies as a better store of value than gold. However, sentiment is quickly shifting as Bitcoin dropped below $18,000 a token and Ethereum dropped below $900.

"I would argue this blow-up in cryptos reinforces the value of gold," said Kristina Hooper, Chief Investment Strategist at Invesco, in a recent interview with Kitco News, "There's really only one asset that historically has the qualities of being a hedge against inflation and geopolitical risk and it's not cryptos."

Many analysts have noted that cryptocurrencies have fallen in line with risk assets like equities as the Federal Reserve continues to aggressively tighten its monetary policy to slow the economy and cool down extraordinary inflation pressures.

Rising interest rates coupled with the plan to reduce its balance sheet have reduced the amount of liquidity in the marketplace impacting riskier assets. Bitcoin is down more than 70% from its 2021 all-time highs. Year-to-date, the digital currency is down more than 50%, even as prices bounce from Saturday's multi-year low.

But it's more than just bitcoin; few financial assets are doing well in the current environment. So far this year, the S&P 500 is in solid bear-market territory, down 23%. Even the traditional safe-haven U.S. bonds are down on the year. The yield on a 10-year note is trading well above 3% and are up more than 100% since January.

 

Gold hasn't lost its luster even as the Fed continues to raise rates – State Street's George Milling-Stanley

Robert Minter, Director of ETF Investment Strategy at abrdn, said that in the current environment, as interest rates and inflation rise, investors should look to have solid assets in their portfolios. While gold should always be part of a balanced portfolio, Minter said that he also likes base metals as they are even a better hedge against inflation.

 

"Bottom line is you want something real in your portfolio. You want something that if you drop it on your foot, it is going to hurt," he said.

George Milling-Stanley, Chief Gold Market Strategist at State Street Global Advisors, said that the selloff in Bitcoin proves it's just another risk asset.

 

"Gold is starting to look more and more, the last outlier. I expect gold to hold its value," he said. "There is a very good chance that as other assets fall, gold relative performance is going to look even better."

By Neils Christensen

For Kitco News

Time to buy Gold and Silver on the dips

Tim Moseley

HOME

Michael Saylor Lists 10 Things For Bitcoin To Become A Stronger Asset

Leave a comment

Michael Saylor Lists 10 Things For Bitcoin To Become A Stronger Asset

by Shawn Amick 

ecosystem for entrepreneurs

 

In an interview with Bloomberg, Michael Saylor detailed 10 things that needs to happen over the next decade for bitcoin to become a stronger asset for institutions.

  • Michael Saylor recently appeared in an interview with Bloomberg to discuss bitcoin and regulation.
  • The CEO of MicroStrategy explained he believes bitcoin has 10 things it needs to become a stronger asset.
  • Saylor elaborated on his company’s bitcoin strategy and its 10-year horizon and plans to acquire more bitcoin.

Michael Saylor, CEO of the software analytics and pro-bitcoin company MicroStrategy, recently appeared in an interview with Bloomberg to discuss 10 steps he believes will make bitcoin a stronger asset.

“There’s about 10 things that have to happen over the next decade to make it [bitcoin] a better asset, and we kind of know what those 10 things are,” Saylor stated in the interview.

The first on the CEO’s list of issues to be addressed is the absence of a no wash-trading rule, allowing traders to harvest loss and gains in a way that cannot happen with traditional equities markets.

Then, Saylor mentioned the issues with the 520 unregistered and unregulated crypto exchanges offering 20x leverage, which often leads to unprotected investors taking massive losses.

Next, the 19,000 cryptocurrencies being cross-collateralized and associated with bitcoin currently hold bitcoin back by comparing it to badly managed, unregistered securities.

Moreover, the issue becomes worse as these securities are glorified by the next issue at hand, “wildcat banks,” which enable gammified practices offering unsustainable yield, such as was seen with the fall of the Terra ecosystem.

Not least of all, Saylor listed ignorance and fear of the asset class, as a lack of technical know-how still terrifies many, as does media coverage telling of the many supposed deaths of bitcoin.

However, the fear and uncertainty is not just for bitcoin as Saylor went on to explain that we currently do not have a real stablecoin, which he believes will be a major boon for the ecosystem once one is fully regulated and approved.

Then, the CEO closed his list noting the absence of a spot exchange-traded fund (ETF), which would allow institutions to interact with the asset of bitcoin without needing to touch it themselves.

Finally, the three remaining points that need to be improved on in the bitcoin ecosystem revolve around the lack of regulatory guidance and support institutions currently must overcome. These points include lack of insurance, as well as guidance in becoming involved with the space.

ecosystem for entrepreneurs

Prior to revealing his list of improvements that will launch bitcoin into its next bull-cycle, Saylor spent much of the interview justifying the bitcoin strategy of MicroStrategy during this recent downturn.

“We did a lot of backtesting and I’ve gone back and looked at the numbers,” Saylor explained. “On August 10, 2020 when we announced our $250 million bitcoin buy, since then, bitcoin is up 72%.”

He went on to compare it to some traditional assets over the same time period including: the NASDAQ (-2%) , gold (-9%), S&P 500 (+9%), and single-family homes (+26%).

“The bottom line is that the bitcoin strategy is 10x better than any other alternative,” Saylor concluded. “So, no. I don’t regret it.” 

Tim Moseley

HOME

ProShares To Release ETF That Allows Investors To Short Bitcoin

Leave a comment

ProShares To Release ETF That Allows Investors To Short Bitcoin

by Shawn Amick 

 

ProShares will release a new ETF allowing investors to short bitcoin during harsh market conditions enabling institutions to legally bet against the asset.

  • Proshares ETFs will release a new product which will allow investors to short bitcoin.
  • Proshares previously released the Proshares Bitcoin Strategy ETF that trades futures contracts as well.
  • Bitcoin reached its all time high days after its original ETF was released as this short ETF releases amid harsh market conditions.

Proshares, a provider of exchange-traded-funds (ETFs), is set to release the Short Bitcoin Strategy ETF (NYSE: BITI) on June 21, which will allow investors to bet against bitcoin through the use of futures contracts.

Investors choosing to purchase this ETF are seeking a return of -1x its underlying asset, in this bitcoin, within a single day. Should the investor choose to hold the ETF for longer than the target of one day, Proshares notes that due to rebalances and compounding returns, investors will likely experience a different result and direction.

On the other hand, Proshare’s previously launched an ETF for bitcoin, which provided access to futures contracts for the asset. On its first day of trading, the Proshares Bitcoin Strategy ETF (NYSE: BITO) traded over $1 billion of volume, marking the second-largest ETF release ever.

Shortly after the the release of Proshare’s original ETF, bitcoin surged to its all-time-high, close to $69,000. In comparison, Proshares has released this ETF allowing investors to short bitcoin as it endures a harsh market correction, which bottomed out around $17,800 and currently is fighting to hold $20,000.

Previously, the original ETF was launched to provide institutional and retail investors access to the asset without dealing with technical complications or legal hurdles. Similarly, the Proshares short ETF will provide institutions access to play towards negative sentiment without interfacing with those same hurdles in a compliant manner.

Thus far, regulatory conversations surrounding ETFs and bitcoin have been largely tumultuous. The Securities and Exchange Commission (SEC) has stalled approvals for spot-bitcoin ETFs, resulting in the deviation of some commissioners who say the agency has stalled too long.

In fact, Grayscale Bitcoin Trust – the largest bitcoin fund in the world – has recently hired a top legal mind to combat the SEC should the regulator continue to deny the company’s application to convert to a spot-ETF. 

hive

Tim Moseley

HOME

Crypto weekend meltdown: Bitcoin price touches 17k Ethereum below 900 as renewed selloff sends prices spiraling

Leave a comment

Crypto weekend meltdown: Bitcoin price touches $17k, Ethereum below $900 as renewed selloff sends prices spiraling

The crypto space faced another sharp selloff during the weekend as Bitcoin plunged below $18,000 and Ethereum dropped below $900.

The overall crypto market cap plummeted to $847 billion, down nearly 10% on the day. Bitcoin touched $17,677, the lowest level since November 2020, and Ethereum fell to a low of $893, the level last seen in January 2021.

"Bitcoin appears to be hanging on for dear life as cryptocurrencies remain in meltdown mode. The worst week since the early days of the COVID pandemic has widespread crashes across Bitcoin, Ethereum and Dogecoin," said OANDA senior market analyst Edward Moya.

At the time of writing, Bitcoin was at $18,633, down 74% from its November all-time high of $69,000, and Ethereum was at $948, down 81% from its November all-time high of $4,878. 

The initial trigger behind the massive crypto drop in June was the macro environment. First, a surprising hot inflation number from May caught markets off guard, followed by a 75-basis-point hike from the Federal Reserve on Wednesday – the biggest rate increase since 1994.

The dramatic shakeout in crypto also garnered steam following contagion risks from within the crypto community itself after a lending company Celsius said it was halting all transactions on its platform. To learn more about that, click here.

After failing to hold several key support levels, analysts now watch a price area below the $14,000 mark.

"Bitcoin is sharply lower today after having accelerated to the downside following the breakdown from its consolidation phase. It is currently down about 14%, bringing its month-to-date loss to about 44%," said Fairlead Strategies founder and managing partner Katie Stockton. "The breakdown is unconfirmed (it has not spent enough time below to make it decisive), but it shows the risk inherent to risk assets right now. If we see consecutive weekly closes below $18.3K, risk would increase to next support below $13.9K."

Stockton added: "We do not recommend counter-trend positions, however, noting momentum is strongly negative."

 

During the first two weeks of June, investors have continued to position themselves defensively, and crypto's upside potential remains limited until stagflation fears subside, said Bank of America's global crypto and digital asset strategist Alkesh Shah.

"Although painful, removing the sector's froth is likely healthy as investors shift focus to projects with clear road maps to cash flow and profitability vs. purely revenue growth. The digital asset ecosystem is an emerging high-growth speculative asset class with tokens that are exposed to similar risks as tech stocks. The upside is likely capped until risks associated with rising rates, inflation, and recession are fully discounted," Shah said.

By Anna Golubova

For Kitco News

Tim Moseley

The Artist that came out of the Winter