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US Global Investors CEO Predicts Bitcoin (BTC) Ready for Bull Cycle, Prefers Gold

Bitcoin BTC Price Analysis Gold 2019

Frank Holmes, CEO of US Global Investors and one of the more prominent natural resources capitalists in the country, called Bitcoin an alternative to gold, but stated that he preferred the physical store-of-value asset to its digital counterpart. In addition, he issued a stern warning to ‘millenial’ traders who have failed to do their homework on Bitcoin and precious metals such as gold.

Speaking in an interview with Kitco News on May 17, an organization that deals in precious metals trading, Holmes highlighted the fact that BTC and cryptocurrency wallets increased since 2018, despite the falling coin prices of last year’s crypto winter,

“What’s important during this whole year is that even though the price fell 80% to 90% depending on the coins, you had an increase of wallets out of people buying bitcoin, and that’s a sign that we’re ready for the next bull cycle. ”

In addition to increasing adoption, Holmes found the conditions of January 2018’s collapse to be somewhat favorable for a coming bear cycle. Compared to the traditional markets in 2008, which catalyzed one of the worst global recessions in history, the crypto markets of early 2018 were not overleveraging, which Holmes believes will allow them to recover more quickly,

“This [correction] can be a year, and we’re slowly climbing out of it, and [bitcoin] is becoming an alternative asset class like gold.”

Despite being receptive to a bullish cycle ahead for Bitcoin, Holmes reiterated that he prefers gold to BTC, stating that the latter is not a replacement for real-world precious metals. He also cautioned younger investors not to become too caught up in cryptocurrency, and to consider other asset classes, including as a way to contribute patriotically to the U.S.,

“[Millennials] should do their homework, they should open up a history book on why gold is so significant… why the great ‘love trade’, that if you love your country you should have gold in reserve. If you have a crisis, your paper money goes down in tremendous value. Gold is what bailed out Britain, getting it over to Canada, and then trading to get weapons from America, it was gold that did it.”

Holmes gave another prediction that the price of gold would rise with the easing of central banks around the globe, particularly in Europe, causing a decrease in value for fiat currencies that would push traders into precious metals. He highlighted the looming trade war between the United States and China that will ultimately lead to negative rates. He claimed the EU to have “massive” negative real interest rates with “no hope of them rising.” He further chastised EU governments for continuing to print money, and made the statement “you better buy gold, and you better back up the truck and have that minimum 10% golden rule.”

The geopolitical uncertainty brewing around U.S.-Chinese trade relations could further contribute to investment interest in cryptocurrency–similar to early April’s Brexit craze–as traditional economies and fiat currencies appear less certain.

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JP Morgan Analyst: Bitcoin (BTC) Trading Above Intrinsic Value

JP Morgan Bitcoin BTC Price 2019

Analysts at Wall Street investment bank J.P. Morgan Chase believe that the price of Bitcoin has soared above its intrinsic value throughout 2019’s rally.

According to new details emerging from the banking giant, JPM strategists are claiming that Bitcoin is trading above what they consider to be the digital assets intrinsic value, giving investors some pause as to whether the market will heed such a metric. Similar to the argument for gold and precious metals, Bitcoin and cryptocurrency has struggled with the tug-of-war concept over what constitutes ‘intrinsic value.’ For the folks on Wall Street–regardless of continued price movement–the price of BTC has seemingly outstripped what it offers in terms of industry value.

Bloomberg was the first to report the JPM news on May 20, making the claim that BTC is possibly entering a similar period of trading that accompanied the bullish rally to end 2017. Similar to current market conditions, the JPM analysts found BTC to have surged well beyond its intrinsic value by the time the price began to collapse in December 2017.

Three month climb for Bitcoin (BTC). Image courtesy of CoinMarketCap

According to JPM strategist Nikolaos Panigirtzoglou in a note to investors on May 17, Bitcoin should be considered as a commodity, thereby allowing cost of production calculations using the estimates of mining electricity and hardware costs as a factor in valuation.

Panigirtzoglou wrote,

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

Despite pounding the table over Bitcoin exceeding its calculated intrinsic worth, the strategists at JPM  caution that valuation can be a subjective quality, particularly through the lens of retail investors and market behavior.

“Defining an intrinsic or fair value for any cryptocurrency is clearly challenging. Indeed, views range from some researchers arguing that it has no fundamental value, to others estimating fair values well in excess of current prices.”

Previous years would have brought about investor skepticism towards the views of JP Morgan Chase in relation to cryptocurrency, given CEO Jamie Dimon’s acerbic comments towards Bitcoin. However, the investment bank has had a change of heart in the industry of cryptocurrency digital assets, with the development of the JPM Coin. While the currency is likely to be a private blockchain contained to the in-house banking network and clientele, it stands as a vote of confidence for both Bitcoin and the broader crypto markets that Wall Street is willing to hedge its bets in the technology.

After reaching as high as $8250 in the early morning hours of Asian trading, the price of BTC has slipped below $8k on May 20. As of writing, Bitcoin is hovering around $7700, with sellers starting the trading week by forcing the currency into a correction following the weekend rally. Fundstrat’s Tom Lee previously listed thirteen reasons why the crypto winter is over, giving his belief that the markets are entering a bullish phase even in light of last week’s price correction.

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Will Bitcoin (BTC) And Bitcoin Cash (BCH) Payments War Destabilize Market?

With bitcoin (BTC) back above $8,000 and set to accelerate higher, the last thing crypto needs is a fallout between the bitcoin developer and business community and the diehard Bitcoin Cash (BCH) believers.

Bitcoin fork BCH, whose supporters insist that it is truer to bitcoin’s original mission of digital cash, fears bitcoin people want to shut it out of merchant payments. All this as BCH continues to track bitcoin as does the rest of the market, maintaining the outperformance margin opened up at the beginning of April.

In the two months to 19 May BCH has returned 121% compared to  BTC’s 82% , as seen in the chart below.

Bitcoin Cash has outperformed Bitcoin over the past two months (Courtesy Coinlib.io

That performance difference, however, is unlikely to be because the market assesses BCH to be a better product than bitcoin.

Bitcoin is still king by a very wide margin

Far from it, judging by the network fundamentals of BCH vis a vis bitcoin.

Although Roger Ver, a vociferous supporter of BCH, is able to point to its low fees on the network compared to BTC, that’s not for a good reason.

Whichever way you cut it, be it transaction volume, hashrate, operating network nodes, bitcoin is still the king by some considerable margin.

Perhaps most dangerously for BCH, it is not very decentralised, with the secretive BTC top mining pool based in China recently accounting for more than 50% of the hashrate, although that has decreased now. At the end of April their was the case of an entity using the name “Satoshi Nakamoto” that had 40% of the hashrate.

BTC.top had a 50%-plus share 24 hours ago

BCH has made itself a six-monthly target for attackers

Then there’s the six-monthly schedule of upgrades which seem
to have turned into an opportunity for attackers to make mischief. That’s what
happened on 15 May, when a bug was exploited that led to empty blocks, 10 in
all.

It didn’t end there.

On the same day it has been speculated that there was an aborted attempt by short sellers to crash the price, with 179,202 BCH or BAB (the ticker on Bitfinex for Bitcoin ABC aka Bitcoin Cash) borrowed on Bitfinex to take a leveraged short position. The build up in BCH borrowing was spotted by redditor frozen124.

It didn’t work out for the shorters as the price rose, but the timing was suspicious according to folks at coinspice.io who have been doing some digging around. The borrowing by the shorters took place 12 hours before the empty blocks attack.

Additionally, 110,000 that had been borrowed ended up not being used to take a position in the market, leading observers to surmise that whoever was behind the borrowing, was linked to the block attack and for some reason had decided against executing.  

It was a costly miscalculation on their part because all that borrowing of BCH drove the interest rate demanded by the lenders to 30%, so the unallocated borrowing cost 79 BCH or $31,500 at the price at the time.

Someone’s got it in for BCH.

Roger Ver sure thinks so, or at least the Bitcoin.com twitter account does:

For those new to crypto, bitcoin.com is controlled by Roger Ver and stands accused by bitcoin people of deliberately confusing the difference between the one and only original and the BCH fork.

But let’s not take sides.

Payments Protocol – BCH and BitPay versus Bitcoin core?

Nevertheless, the network attack and the apparent co-ordinated but half-cocked shorting effort may partly explain the timing of an incendiary broadside against the Bitcoin “maximalist” community in an op-ed published on bitcoin.com by Tomislav Dugandzic, described as an “independent bitcoin cash (BCH) user and currency speculator“.

Titled “Core vs Gavin – Bitcoin Payments Are Being Bulldozed for Political Reasons, Dugandzic is convinced that Bitcoin core are out to sabotage the way payments are processed for nefarious political reasons – a serious charge indeed.

At the centre of the brewing dispute is the Payments Protocol, which was some tidying done by Gavin Andresen and Mike Hearn in 2013 in the form of bitcoin improvement proposal 70 (BIP70).

The changes allowed a payer to be messaged by the receiver (merchant) and introduced code to specifically guard against “man in the middle” attacks where a bad actor gets between payer and receiver and inserts the fraudster’s address.

For merchants, the payment protocol removed the inefficiencies with, to take one example, paying refunds.

In a nutshell then, BIP70 makes handling payments more efficient for merchants and provides a better user experience for payers.

It turns out that not all wallets are supporting BIP70 but most major popular ones do including those for Bitcoin Cash.

BitPay, the largest bitcoin payment processor and a handler of both bitcoin and BCH payments, imlements payments protocol and it says it has reduced errors in payments by 98.6%.

So that’s all good. What’s the problem?

BitPay is what Dugandzic describes as a BCH-friendly payments processor and it is this that he claims lies behind a “political” move by bitcoin core ( which controls the official bitcoin website, bitcoin.org) to stymie the prospects for BCH adoption.

Bitcoin developers have deprecated BIP70, which is coders speak that it is being to be phased out.

Something of a war has broken out between those who want to keep BIP70 and others who want to revert to the earlier BIP21 for handling URIs (Uniform Resource Identifiers) and encoding of payment request information.

Samurai wallet is focused on by Dugandzic as an example of the anti BIP70 crowd as it came up in a video featuring Andreas Antonopoulos, who could be described as bitcoin royalty as the author of the seminal The Internet of Money.

Antonopoulos is what Dugandzic sees as a typical (as in political) “Bitcoin Core advocate”.

Here’s a quote from the op-ed, which provides a flavour of how these disputes quickly turn nasty:

The Samurai wallet team tweeted that they approve of Bitcoin Core advocates “viciously attacking” Bitcoin Cash advocates and that Bitcoin Cash advocates are “lunatics” and “frauds.” That’s a pretty strong choice of words to describe a group of people that have a difference of opinion regarding how Bitcoin should scale.

Thin line between welcome competition and senseless tribalism

For mere mortals these disputes can all seem arcane but unfortunately they are important tests of the maturity of the space regarding cooperation on standards and resolving disagreements over competing technology solutions in the absence of an industry policeman.

The way these issues are fought out does nothing to help crypto adoption, be it bitcoin, one of its forks or one of the myriad other competing crypto projects.

Those critical of BIP70 seem to be suggesting that it cedes too much power to the likes of BitPay, which some presumably think is too closely aligned with the BCH camp.

Confusion in the marketplace and at the level of users actually trying to buy stuff with bitcoin and Bitcoin Cash, is no good for anyyone.

The BCH price may well continue to outperform bitcoin and even catch up on the former’s market cap, as it briefly seemed to be closing in on flippening BTC in November 2017.

But as BCH continues to motor, up 17% today at $425 it will be doing so probably more because of brand association with bitcoin rather than because of its technological superiority or, for that matter, the vitriol its supporters (and to be fair its detractors too) trade in.

Bitcoin has some weak points, like scaling. But governance and general inter-coin relations and its breakdown – which is how Bitcoin Cash came into being in the first place and then Bitcoin SV – is a headache for the crypto ecosystem, not just bitcoin or BCH, and it shows no signs of going away.

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First Brexit, Now Trade Wars: Global Politics Driving Bitcoin (BTC) Investors

Bitcoin BTC Cryptocurrency Trade War 2019

In April, after more than a year of falling prices, Bitcoin and the crypto markets took off on a bullish rally. While the initial price jump has been tied to a massive 21,000 BTC buy, geopolitical overtones at the time concerning Brexit contributed to the wave of investment interest.

During the same week that Bitcoin and cryptocurrency experienced its first bullish rally since the beginning of 2018, British Parliament and Prime Minister Theresa May were embroiled in a debate on how to handle their exit from the European Union. While once a seemingly impossible though, the U.K. appeared to be drawing near a ‘No-Deal’ Brexit, which would have brought about an abrupt and immediate cease in trade and relations with the European Union.

In anticipation for such an event, currency speculators were predicting a collapse in the British Pound and drop-off for the Euro, driven by the economic turmoil and halting trade between the two entities. Parliament swooped in during the first week of April to prevent a No-Deal Brexit, and the entire event was brought to anti-climatic end mid-month with Brexit being delayed to the end of October 2019.

However, the economic uncertainty kicked up in the wake of Brexit was enough to draw vast swathes of the investment landscape to cryptocurrency as a possible alternative to government fiat and the traditional markets that relied upon their currency. Similar interest in cryptocurrency has continued to be generated throughout May, as the fallout from U.S. and Chinese trade negotiations creates a murky global landscape.

The ‘trade war’ brewing from President Donald Trump’s handling of U.S.-Chinese relations has the investment class once again looking at cryptocurrency as a potential means for economic viability. The bullish turn for Bitcoin is no doubt related to the market cycle of a severe bearish period coming to an end, but the geopolitical implications of global economics have changed over the last eighteen months.

Whereas cryptocurrency was previously viewed too volatile to participate in, institutional investors are turning to the possibility of Bitcoin as a substitute store of value and alternative to the traditional markets. In addition, the entire industry has been vetted and supported by the entrance of social media giant Facebook and Wall Street stronghold J.P. Morgan Chase.

The vote of confidence for cryptocurrency is in; now it remains to be seen how the industry can move past the FOMO and price speculation that led to January 2018’s massive collapse in valuation. It’s possible that the looming global recession for the world’s markets–after 12 years of bullish prices–could force the hand of investors and cryptocurrency. But given the economic uncertainty being generated by both a looming trade war and a delayed Brexit, it could be only a matter of time before crypto takes a more central stage as a currency and digital asset.

Either way, the valuation for cryptocurrency appears tied up in larger factors than retail price speculation.

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Bitcoin Bull Run: Why This Time it’s Different to 2017 – Silbert

Barry Silbert Grayscale Investments

Barry Silbert founder and chief executive of the Digital Currency Group and Grayscale Investments, made an appearance on Bloomberg at the end of a fretful week in crypto, and as expected is un-phased by the Bitstamp-induced correction, predicting this bull run won’t pop like in December 2017.

With bitcoin currently priced at $7,350, there’s every reason to be comforted by the fact that nothing goes up in a straight line, and a correction of sorts was expected by some observers, as EWN reported.

Silbert has seen it all before and is convinced that this bull run will not be derailed. More than that, he says that this time the bull run will be different, by which he means it will not be another bubble rippening for a pop.

How will it be different this time?

So how will it be different? First, he addressed the chart technicals.

“Sentiment, the technicals are great… 80% draw down in price happened what three of four times before. Every time that happens…. record highs. As soon as you get the price going back up animal instincts come back.”

But the really crucially consideration is how the lay of the
land differs, and that comes down to infrastructure.

“The difference between this increase in price versus the bubble in 2017 is the infrastructure is much different. You have custodians now, compliance software, trading software. People are more educated about the asset class. This time it’s different,” says Silbert.

He also addressed the question of trust in the space, interjecting that he thought the ICO phenomenon was at the centre of those worries, and had helped power the bear market.

“All of the demand from ICOs went away. Projects were trying
to stay in business and selling bitcoin.”

Drop gold, buy bitcoin

Grayscale Investments is doubling down on the notion that bitcoin is digital gold, as seen in the recent launch of a nation-wide US TV advertising campaign themed Drop Gold. The ad had been previewed a couple of weeks ago.

Indeed, Silbert partly credits the ad with helping to
generate the buying fever behind the recent bitcoin mega rally.

Although the ad was previewed two weeks ago, the national campaign
only started running t the end of this week.

Silbert makes no bones about the fact that they are targeting a new generation of investors who will soon be coming into the family inheritance and will be more susceptible to the pitch from the issuers of bitcoin financial instruments.

Ad hits the mark with a million views and counting…

It’s a hard-hitting ad. “The ad is designed to be
provocative,” Silbert explains. “This has already gotten over a million views.”

“So what is the number one thing to break in terms of view
points regarding getting gold bugs into bitcoin, he was asked.

The ad is basically aimed at getting into the heads of millennials. “It’s important to start the conversation… there’s a generational shift happening,” he contends. “Anyone who has a phone can access this new asset class”, unlike with unportable gold bullion, as the advert makes clear.

“For the younger generation, money is digital… $68 trillion
in wealth being handed down over the next 25 years.”

“It’s not all going to go into bitcoin, but whatever is in gold is going to diversify into something else.”

But what about the solidity of gold built up over millennia,
how can computer code compare?

“Where gold has history and cultural significance it lacks in
utility. Bitcoin as a financial rail has the potential to be incredibly value
from an intrinsic potential.

In fact, Silbert argues that “gold’s use and utility is going
down”, pointing to its drop in use in electronics, which he says has fallen by
30%.

On who is buying gold he says: “It’s central banks buying. So basically, if you are buying gold you are betting on the central bankers, which is weird because gold bugs think that central bankers are idiots and don’t know monetary and fiscal policy.”

He continues: “So, there’s a real  disconnect – so OK I’m going to be betting on the bankers doing the right thing yet they’re the ones who are buying gold right now.”

Silbert is not the only one talking about digital gold, with Tyler Winklevoss also weighing in, as the EWN report here shows.

The Digital Currency Group is probably the nearest thing that crypto has to a conglomerate, with its fingers in many pies.

Abra, Bitflyer, BitPesa, Circle, Chainalysis, Coinbase, CoinDesk, Decentraland, Etherscan, eToro, Grayscale, Korbit, Kraken, Ledger, Parity Protocol Labs, Ripple, Shapeshift, Xapo and Zcash, are just some of the companies DCG has a stake in, or owns outright.

So what about some numbers, hard data on the institutional side?

In the first quarter Grayscale Investments saw 70% of inflows coming in from institutional investors and family offices, Silbert reveals.

What was the money buying? According to Silbert “right now it’s just bitcoin”. He said 90% went into bitcoin.

What about the rest of the crypto field?

He was asked what investors are to make of the rest of the field.

Would it be a sea of many or just a few from the 2,000 and more crypto offerings available that would prove their worth.

Silbert said there will be:

“winners in particular use cases, for digital gold bitcoin,  privacy will be very big use case,  Zcash and Horizon, … we like Ethereum Classic (ETC) for smart contracts.”

Grayscale has been a long-term supporter of the old Ethereum chain that was left behind after the DAO hack forced a hard fork that was followed by majority mining nodes.

Ethereum Classic is not much used, and fell victim to a 51% attack as a result in January, so at this point would be a risky pick for executing smart contracts on.

In July last year Silbert revealed that DCG held five coins, and the choices, bitcoin aside, were surprising,

“So, we have 50% in Bitcoin, 25% in Ethereum Classic, 15% in Zcash, 5% in Decentraland, and our newest one is 5% in ZenCash,” he said at the time

Silbert reiterated that there are “going to be a handful of winners”, so let’s hope he’s changed and rebalanced the holdings in that portfolio of crypto from 10 months ago, for Grayscale investors’ sake.

And what to say about the proliferation and oversupply of
tokens?

“The ICOs brought in a lot of capital… but there were some negative consequences.”

“More discipline and certainly more infrastructure came out
of it,” he concludes.

He didn’t let the opportunity miss to remind his audience about Grayscale Bitcoin Trust is “the only publicly quoted bitcoin fund out there” The fund has assets under management of $1.5 billion and he thinks it “will be one of the first that gets approved”.

Although it has a year to date return of 132% it trades at a premium of 29%, above its net asset value, ie is priced 29% above the value of its underlying bitcoin holding. That makes it 29% more expensive than buying bitcoin directly.

SEC approved collective investment vehicles still look a long way off in the US. The SEC recently delaying again a decision on the Bitwise Bitcoin ETF, thought to be one of the strongest offerings so far in terms of addressing custody and price discovery issues.

The Grayscale Ethereum Classic Trust has done even better than its bitcoin cousin, with a year to date return of 212%, but trades at a hefty premium to NAV – this time an eye-watering ridiculous 200%.

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BTC May Have Dropped Because of a Sell Wall Placed by a Manipulator, However T.A Shows it is Still Bullish

The recent BTC Bullrun increased the hype not only around
this crypto but also around the rest of the altcoins.

However, although the technical indicators were optimistic,
BTC experienced a sharp drop of more than $1,000 in a few hours.

But instead of a simple correction, it seems that this
drop was because of a wall set by some anonymous trader to manipulate the
markets to buy BTC at low prices.

A recent tweet from Dowey Wan explains how one person (most likely) placed a sell wall of over 5000 BTC at 6686 USD when the minimum bid was around 7208 USD.

A later tweet from Crypto Loomdart shows that more than half
of those 5000 BTC have already been traded. However, the wall continues even
though the bearish trend achieved some stability over 7000 USD.

The fact that the resistance close to 7000 USD has been strong enough to overcome the sell wall shows that regardless of the manipulation, the market is still bullish and the sentiment does not seem to reverse.

BTC is Alive…

Beyond this explanation, the BTC’s technical indicators also show a rather optimistic outlook:

BTC Daily Chart

Fibos:

A quick look at the Fibonacci retracements shows that BTC
bounced back on the first support around 7200 USD. Currently, it is possible to
observe how the shadow tested that zone, dropping a little but returning to a
higher value.

MACD:

The MACD cross still shows that the bullish trend can be
maintained for a few days. Of course, the recent dump in the prices showed an
anomaly in behavior that suggests caution over the next few days. However, the
trend is so strong that no signals have yet been given confirming a reversal of
the trend.

RSI:

The RSI also shows a rather optimistic outlook. After
unusually high values, the indicator returns to a “normal” zone. Despite being
still high, the normalization of this indicator provides some confidence for
traders who believe that market sentiment is fundamental to their positions.

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Bitcoin is Starting a Parabolic Bullrun That May Lead it To New ATHs, eToro’s Mati Greenspan Says

Bitcoin seems to be leaving behind the bearish streak of 2018, and an increasing number of analysts are sure that it bottomed at around 3200 USD.

Mati Greenspan is bullish about Bitcoin
Mati Greenspan

After making similar claims about the altcoin market, Mati Greenspan, chief analyst of the social trading platform eToro shared his impressions about the current situation of BTC.

In an interview with Bloomberg, the well-known analyst explained that, from his perspective, BTC beat the negative trend and is now approaching a period of parabolic growth.

Mr. Greenspan explained that historically BTC shows a cyclical behavior, and after big crashes like the one of 2018 (where it lost almost 85% of its value) there are important periods of equivalent growth.

When asked for an explanation behind the recent Bullrun, Greenspan commented that the simplest theory is purely technical and based on BTC’s cyclical behavior.

There’s a lot of explanations. The simples one is we’re just actually part of a larger cycle. Bitcoin has gone through several cycles before this massive Bullrun (we’re talking about 10000 to 15000% gains within a short period of time) and it has these massive retracements that can be 80% or even 90%.

For Greenspan, the optimism amongst investors is not simply fueled by technical analysis. He cited as fundamental examples Microsoft’s decision to use Bitcoin blockchain for securing its customer data, as well as the decision of other international companies such as Starbucks and Whole Foods to accept Bitcoin (BTC) as payment thanks to the integration with Flexa app.

Bitcoin Should Not Be The Only Crypto to Trigger Your Bullish Sentiment

Mati Greenspan is not only a Bitcoin enthusiast. He has also been able to analyze the rest of the crypto markets. As previously reported by Ethereum World News, the well-known expert declared in mid-March that from his point of view the 2019’s Alt Season had already begun.

“Of course, there’s no telling how long this could last but the signs are all in place. Global volume across crypto exchanges is holding steady at around $30 billion per day, yet Bitcoin’s volume is less than a third of that figure. Sure, Bitcoin exchange volumes are still about double what they were in early February, but some coins like Litecoin, EOS, and BNB have more than tripled their daily volumes in the same time frame.”

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Max Keiser is Bullish on Bitcoin (BTC,) “My Price Target is $100,000 and Beyond”

BTC Trading

Max Keiser has always been a proponent of Bitcoin, not only because of the evolution of its prices but also because of its fundamentals. In an interview for Kitco News, the host of the well-known TV Show “Keiser Report” pointed out that Bitcoin can “capture” a part of the global gold market (the most important asset used as storage of value).

The famous investor also told that despite the strong bearish streak of
2018, he still believes that it is perfectly possible for Bitcoin to reach
$100,000 adding that he does not expect to make any significant sales unless
this value is surpassed: 

To capture a piece of the gold market, you’re talking $60-, $70-, $80-, $100,000 to Bitcoin. I have not sold any Bitcoin because my price target is $100,000 and beyond.

Keiser explained that from his point of view, BTC bottomed close to 3200
USD, however, he did not come to this conclusion for technical reasons. The
explanation was mainly political.

 “When the Federal Reserve bank signaled that they were going to permanent quantitative easing, I said look, that’s the bottom for bitcoin, that was about $3,200 on bitcoin, because they’re making it clear now that there’s going to be no accountability by the Fed. They’re going to print ad infinitum, ad nauseam, there’s going to be no rollback, no kind of attempt to balance their books,”

Is Bitcoin Gold 2.0, Fiat 2.0 or just Bitcoin?

Max Keiser Believes Bitcoin can capture a piece of the gold market
Max Keiser

For Max Keiser, one of Bitcoin’s advantages over traditional fiat money is precisely that there is a fixed and immutable amount of tokens. This prevents a controlling entity from generating an excess of circulating BTC that could cause a drop in prices as a result of inflation.

This has been described by Max as irresponsible and he stressed that “bubbles” and price changes are normal because BTC is going through a transition stage that gave it several different characteristics (store of value, commodity, medium of Exchange, etc).

Bitcoin’s advantages over gold have been highlighted by other expert financial analysts. One of the most prominent has been Mike Novogratz who is sure that Bitcoin could “easily” surpass gold in 20 years.

“Gold’s got an $8 trillion market cap, or a $7.5 trillion market cap. And so, we’re 100x off on that. We’re not going to get there in Bitcoin in the next year or two. But over a 20-year period, could that happen? Easily. Easily.

However, Max explained that investors don’t have to decide between one and
the other. From his point of view, owning both is important to diversify risk.

“I own a lot of gold, I bought a ton of silver, but I also own a big position in Bitcoin”

Bitcoin vs Gold in one chart. BTC is increasingly bullish. Gold is more stable. In 2019 Bitcoin (BTC) has been bullish whereas gold has been slightly bearish
Historic evolution of the prices of Bitcoin (BTC) (green) VS Gold (orange)

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Coinbase Eyeing $50 Million Acquisition of Bitcoin (BTC) Custody Provider Xapo

Coinbase Xapo Acquisition Bitcoin Cryptocurrency

Just days after Coinbase CEO Brian Armstrong revealed his company managing more than $1 billion in cryptocurrency assets through their custodial service, reports are surfacing that the exchange is negotiating an acquisition of Xapo.

According to sources familiar with the deal, the Block reported on May 16 that Coinbase is advanced talks to purchase the custodial service of Xapo for $50 million in an effort to further their position as the premier institution for cryptocurrency custody. The article also claims that Coinbase is in close competition with Fidelity Digital Assets to acquire the custodial service, with the latter viewing Xapo as a strong entry-point into the industry.

While the negotiation is far from concluded, Xapo would represent a substantial prize for either organization to acquire. Xapo is reported to have over 700,000 BTC under custody, worth $5.5 billion. According to the Block,

Xapo’s core product is cold storage vault custody of bitcoin, with rumors that the company holds as much as $5.5 billion of assets under custody (AUC) at the current $BTC price near $8,000, reflecting ~700K bitcoin under custody. Xapo custodies 226,000 BTC that are part of Grayscale Bitcoin Trust.

Xapo is also helmed by serial entrepreneur and staunch Bitcoin supporter Wences Cesares. Cesares, hailing from Argentina, is one of the more historic figures in the industry of cryptocurrency, earning the moniker “Patient Zero” as the original influencer for cryptocurrency in Silicon Valley.

The anonymous sources seem to believe that Coinbase is edging out Fidelity Digital Assets in the bid for Xapo. The Block claims that Fidelity Investments has been making an effort over the last year in bridging their traditional investment services with cryptocurrency and blockchain, since bringing in Tom Jessop as head of corporate business development in 2018, who holds experience in blockchain startups. Xapo represents a massive amount of leverage for the company to springboard into the industry of cryptocurrency, by targeting high-value institutional investors looking for custodial services.

However, with Coinbase currently in the front-running for purchasing Xapo, the U.S. based exchange is signaling its business model moving forward that will diversify beyond collecting trading fees. Given the cyclic nature of cryptocurrency and the extreme volatility the markets have exhibited thus far, Coinbase could find more steady ground by becoming a premier custodial provider for Bitcoin and other prominent cryptocurrencies,

“The addition of several billion of AUC would be a huge shot in the arm for Coinbase. Under Xapo’s current business model, customers are not charged for storing their bitcoin. Rather, they generate revenue by enabling over-the-counter (OTC) trades for customers using the bitcoin under custody.”

Since its founding in 2012, Xapo has raised $40 million in funding, with David Marcus and Winklevoss Capital included among its list of prominent investors. Adding Xapo would contribute to the list of recent deals Coinbase has been making, including the acquisition of Earn within the past year, which has been reformed into the educational portal Coinbase Earn.

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Ledger CEO: “The Day Binance Got Hacked, Our Sales Doubled”

The recent Binance hack had repercussions on the entire ecosystem. Not only was there a brief dump in prices but also there was serious interest among crypto users to increase their security as much as possible.

According to The Block, Pascal Gauthier, CEO of Ledger explained in a a symposium that after this unfortunate news, the sales of the company’s hardware wallets doubled:

“Binance got hacked, and the day Binance got hacked, our sales doubled,”

This information was shared by Éric Larchevêque’s successor at the Atomic Swap 2019 conference held in New York.

Ledger: Helping to Build a More Secure Ecosystem

Ledger is a French company responsible for manufacturing hardware wallets.
Since its birth, it has conquered a significant market share becoming Trezor’s
main competitor (Trezor is the first company to develop this type
of devices).

The new Ledger Nano X
The new Ledger Nano X

Gauthier’s words come a few days after the announcement of the launch of the Ledger Nano X, a Bluetooth hardware wallet, considered as an evolution of the Nano S model.

Ledger’s CEO explained that while cryptocurrencies have proven to be
successful, there are still certain weaknesses that hinder their global
adoption. Security is one of them:

“We at Ledger believe that there is not enough security to protect those cryptos … We think that it’s a great technology, there’s probably one weakness which is the [securing] of the endpoint and the private keys.

Security is a Key Issue For Anyone Who Wants to Bet on Global Adoption

The new Samsung Galaxy S10 has a built-in crypto wallet
The new Samsung Galaxy S10 has a built-in crypto wallet

It is important to note that thanks to the growth of the ecosystem, more and more companies are willing to contribute to this type of technology. A few weeks ago, Ledger received an investment of 2.9 million dollars from Samsung.

Samsung’s flagship smartphone has a built-in crypto wallet. It seems that the Korean firm is not only focused on the functionality but also on the security of this new feature.

Although CZ, CEO of Binance, stressed that the hack only affected a minor part of the funds stored by the Exchange without actually risking users’ funds, Gauthier remarked that this type of complication is a clear example of the risks associated with a nascent technology. Risks Ledger hopes to combat:

“We believe the security needs to happen, and we are very excited about building the security layer for the industry,”

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