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Brian Kelly Talks Bitcoin (BTC) ‘Halvening,’ Gives Portfolio Recommendation

Brian Kelly Bitcoin Halvening Price 2019

Brian Kelly, CEO of digital currency investment firm BKCM LLC and regular pundit on cryptocurrency, appeared on CNBC to explain Bitcoin’s current run to $8000 and how he imagines the price could rise even further.

Speaking with CNBC’s Fast Money program on May 21, the fund manager highlighted Bitcoin’s upcoming ‘halvening’ as a potential multiplier for the price of the currency. While the next reduction in mining rewards–when the payout falls from 12.5 to 6.25 BTC per block mined–is still a year away, Kelly believes the market ramifications will be felt even earlier.

In exactly 365 days we will experience the third bitcoin halving in history. This event marks a 50% decrease of block rewards, lowering the total supply of bitcoins mined from one block to only 6.25 BTC. How will you celebrate this event?

At present, Kelly claims that miners are hoarding BTC in anticipation of increased demand and a higher valuation in the future. While the 12.5 BTC reward payout gives them the luxury to retain some Bitcoin, as opposed to immediately selling it on the market to recoup operating and electricity costs, Kelly predicts that will be less convenient following the halvening. In addition, miners are looking to the growth of institutional investment and adoption to take the price of Bitcoin well beyond its current $8000 range.

In conjunction with a 50% reduction in new Bitcoin creation, the growth of cryptocurrency into institutional and retail use-cases will further drive demand. Increased demand and dwindling supply is what makes Kelly think that Bitcoin is in for a bullish cycle ahead, both in the lead up to the halvening and its in aftermath.

Kelly commented on the four year market cycle that characterizes each halvening, concluding that the current period has historically been good for the price of Bitcoin,  

“You generally have a rally a year into it, and a year out of it. And so we’re just at the beginning of that stage […] a supply cut is generally bullish.”

In addition to sharing his insight on the halving and what it means for upcoming Bitcoin prices, Kelly also gave a recommendation for asset allocation. He advised investors to dedicate between 1 and 5 percent of their overall portfolio to Bitcoin and cryptocurrency, while the price of BTC is still hovering at the $8000 mark.

Analysts have been split between bullish and bearish for Bitcoin following the massive rally that kicked off in early April. While the price of BTC is up over 100 percent since the start of 2019, some analysts see the bullish rally as short-lived and could see BTC retesting $6000 before generating continued price momentum.

Others have begun to point to geopolitical factors and economic policy as being the key drivers for Bitcoin price growth. With a trade war brewing between the U.S. and China, economic uncertainty over the USD/Yuan exchange rate has certain investors turning to Bitcoin as an alternative investment.

The rise of mainstream adoption for cryptocurrency also continues to be a major talking point for digital assets. Facebook has relaxed its policy on cryptocurrency advertisement in anticipation of launching its own stablecoin. Jack Dorsey’s payment platform Square also announced cryptocurrency adoption to be “inevitable,” giving an indication of the shifting sentiment towards Bitcoin compared to a year ago.

Disclaimer: Investing in cryptocurrency is inherently risky.

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Report: Bitcoin (BTC) Futures Trading Approaching All-Time High in May

Bitcoin BTC Futures Trading CME 2019

According to a new report published by The Block, the month of May is on pace to set a new all-time high in Bitcoin futures trading for the CME Group.

In a note sent to clients on May 21, the Chicago-based firm and backer to one of the largest Bitcoin futures trading exchanges, claims that May is “shaping up to be the strongest month ever for CME Bitcoin Futures.” The firm also reports a record day of trading on May 13, with 33,677 contracts being traded for the equivalent of $1.3 billion in BTC. Daily volume for Bitcoin future trading has also spiked during the month of May to 14000, up from 9900 in April.

CME Group continued,

“Since launch in December 2017 we have traded over 1.6MM contracts (+8MM equivalent bitcoin) representing over $50BN in notional value ($4.2BN per month).”

Beyond daily volume for futures trading, new account creation is also on the rise for the group. CME reports that the number of accounts for Bitcoin futures trading has climbed to an all-time high 2500, which the group interprets as a booming desire for traders to hedge on the risk of BTC,

“The number of unique accounts continues to grow showing that the marketplace is increasingly using BTC futures to hedge bitcoin risk and/or access exposure.”

Despite the seemingly bullish market for Bitcoin and cryptocurrency, with the price of BTC up close to 100 percent since the start of April, traders remain divided over the future valuation for the coin. BTC Futures, such as those offered by the CME Group’s exchange, have become a popular alternative for traders looking to speculate on the market movement for Bitcoin. Futures contracts have long been one of the more dominant products for the traditional financial markets.

Users can open long or short positions on BTC futures, depending upon where they see the price of the currency moving. With Bitcoin hovering near the $8000 mark for its second day in a row, both the bears and bulls are holding their breath over the next price movement for BTC. Some analysts are now calling for the currency to fall back to $6K before making another run at the all-time high. Considering the massive gains and bullish rally Bitcoin went on since the start of April, after more than 12 months of declining price and ‘crypto winter,’ some investors are anticipating a correction.

However, others see Bitcoin entering a perfect storm of market conditions for renewed investment. Given the economic uncertainty being generated over deteriorating negotiations between President Trump and President Xi, a looming U.S.-China trade war has bullish indicators for the price of cryptocurrency.

In addition, the mounting adoption of cryptocurrency by major industry players such social media giant Facebook and investment bank JP Morgan Chase have given a vote of confidence for BTC that was not present during 2017’s bull run. While FOMO will continue to drive the price of crypto, in both directions, the growing futures market provides another avenue for would-be speculators.

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BlockFi Slashes Ethereum (ETH) Interest Rate, Bumps BTC

Ethereum ETH Bitcoin BTC Blockfi 2019

Cryptocurrency lending firm BlockFi has announced an update to their interest rates for Bitcoin and Ethereum, with the latter experiencing a severe cutback.

According to the monthly update published on May 21, BlockFi reports that the month has been “fantastic” for the crypto ecosystem, and predicts the bear cycle is likely reaching its end. The company highlights the thousands of fans, traders and entrepreneurs who attended the 2019 Blockchain Week held in New York City as a testament to the industry’s growth. In addition, BlockFi reports that that their interest account now commands over $100 million in digital assets being managed, marking a substantial milestone for the financial product since its launch earlier this year.

Last week BlockFi published an article outlining the market forces driving their ability to lend cryptocurrency and the metrics they use for generating interest rate returns. Citing that guideline, the lending company reports that the demand for Bitcoin borrowing and lending has been on the rise, describing it as a “vibrant and growing field.” However, BlockFi claims that interest in Ethereum, in terms of the market for loaning ETH, has been lackluster in comparison and points to other cryptocurrency lending platforms who have drastically scaled back on the market for Ether,

“Ether lending market over the last couple quarters has become as stagnant as we’ve ever seen it. According to the Q1 report put out by Genesis Capital last month, just 3% of their overall loan portfolio is in ETH. Additionally, platforms like Poloniex and Compound are offering borrowing rates on ETH as low at 0.01%.”

As a result of falling market demand in Ether borrowing, BlockFi has announced a slashing of the Ethereum interest rate, while providing a slight bump in BTC. According to the new guidelines found in the official post:

  • BTC Balances above 25 BTC will earn 2.15% interest (up from 2% previously). All balances between 0.5 BTC and 25 BTC will continue to earn 6.2% Annual Percentage Yield (APY)
  • ETH Deposits between 25 ETH and 100 ETH will change from 6.2% to 3.25% APY. Balances above 100 ETH will earn 0.2% APY

BlockFi’s announcement comes as a disappointing setback for Ethereum investors who were hoping to make secure and somewhat guaranteed annual returns on their coins. While the crypto markets throughout 2019 have produced 105 percent and 86 percent returns for Bitcoin and Ethereum, respectively, BlockFi provides an additional boost in ROI for investors not looking to cash their coins in any time soon. Instead, crypto investors are able to lend to would-be borrowers through BlockFi, as opposed to keeping their currency dormant in wallets or exchanges.

BlockFi’s monthly dispatch also reports updates coming to their dashboard in the next few days. Including the ability to view interest earned to date, total account balance in USD, and calculators forecasting potential earnings. BlockFi utilizes Gemini for its custodial services in storing and securing client cryptocurrency.

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Analyst: Bitcoin (BTC) Is Tracking USD/Yuan Exchange Rate

Bitcoin BTC USD Yuan

A contributing author and Asian markets analyst on Forbes has pointed out that the non-correlation of cryptocurrency–that digital assets fluctuate to their own market devices–does not tell the full story. Instead, William Pesek argues that prices for Bitcoin are moving with the price of the Chinese Yuan versus the U.S. dollar, as opposed to the dominant assumption being placed on USD movements alone. According to Pesek,

“There’s an easily trackable correlation between bitcoin and the dollar/yuan exchange rate…No, bitcoin doesn’t track the dollar’s zigs and zags–except when we’re talking about its moves versus China’s currency. A sliding yuan tends to be bitcoin positive.”

Pesek continued,

“As the yuan weakens, after all, moneyed mainlanders are increasingly desperate to spirit their wealth beyond the prying eyes of Beijing’s tax collectors.”

The argument for the relationship between the Bitcoin and the USD/Yuan exchange rate hinges on the voracious appetite of Chinese investors for Bitcoin and digital assets. Despite the Chinese government and President Xi’s massive crackdown on Bitcoin, which culminated in the outright banning of BTC trading and initial coin offerings (and rumors of mining to be targeted next), savvy Chinese investors have continued to find ways to buy digital assets at an impressive pace.

Pesek also points out that the brewing trade war between China and the United States, stemming from the failed negotiations of both President Trump and President Xi, have thrown the USD and Yuan into flux. Similar to how the looming possibility of a no-deal Brexit pushed European investors into Bitcoin, the deterioration of U.S.-Chinese trade relations has mainlanders looking to BTC and digital assets favorably. Despite its historic volatility, Bitcoin is beginning to resemble the digital gold safe haven that has long been held up by supporters.

However, while the uncertainty kicked up over a possible trade war is good news for Bitcoin bulls, it also harbors deeper implications for the broader global economy. Pesek anticipates that fiscal policy by President Trump and the Chinese government will force further deterioration, and ultimately lead to even greater investment by the Chinese mainland into Bitcoin.

As evidenced in places of extreme economic mismanagement, such as Venezuela and Argentina, cryptocurrency has become an alternative asset for investors looking to harbor their funds against uncertain government fiat. While the U.S. and China represent two of the more historically stable economies, and the global powers driving financial markets, the lack of confidence inspired in the fluctuating USD and Yuan could make otherwise conservative investors take a glimpse at the digital gold of BTC.

At the Consensus 2019 event, billionaire investor and crypto bull Mike Novogratz shared his opinion that Bitcoin had likely maximized its utility as a store of value asset. While Novogratz commenting more on the room for innovation in Bitcoin as digital gold, it remains to be seen how digital assets handle a possible fortuitous turn in the coming years, with the combination of Brexit, a U.S.-China Trade war and inevitable recession looming on the horizon.

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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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New Research Shows Bitcoin (BTC) Conversation Has Matured Dramatically

Bitcoin BTC Conversation 2019

The recent price rally for Bitcoin and cryptocurrency has a number of analysts and investors scratching their head and asking the question: what’s different between now and 2017?

While coin prices fell through the majority of last year, leading analysts to label 2018 a crypto winter, the market reached an all-time high in late 2017 following a massive bull rally for Bitcoin. Despite currently trading at under $8000, the price of BTC reached an all-time high of $19700 in the final weeks of December 2017. At the time, it appeared that Bitcoin was finally receiving the adoption and investor interest it deserved after nearly a decade on the market.

However, it quickly became apparent that market prices had outstripped valuation and usability, and the entire landscape of cryptocurrency collapsed with coin’s falling 80 percent or more over twelve months. In the aftermath of the price fall, analysts pointed to Fear Of Missing Out (FOMO), unrealistic expectations and greed as primary contributors to the spectacular boom and bust cycle for Bitcoin.

Bitcoin Conversation Evolving

Compared to eighteen months ago, alternative data provider Indexica believes that Bitcoin has matured as an asset since the last bull rally, and has published research supporting their claim. The group created a custom index processing the language contained in thousands of text documents related to cryptocurrency and Bitcoin, and found that the industry, as a whole, has matured greatly over the last several years.

According to their findings, professional discourse around Bitcoin has continued to grow throughout 2019, marking a key price indicator for the currency’s rally since the start of April. As outlined by Bloomberg, Indexica’s findings show three main drivers for growth:  “a more complex conversation surrounding Bitcoin, fewer concerns about fraud and a shift in the tense of how Bitcoin is talked about from the past to the future.”

‘Complexity of Bitcoin’–defined as a measure of the quality of discourse surrounding the asset–made up the majority (24 percent) of the conversation related to BTC. Indexica attributes the increased quality of discussion to the growing pool of academics and professional investors now populating the space of cryptocurrency, moving beyond the niche technology market it represented just a few years ago.

Bloomberg cites the entrance of Fidelity Investments getting into the cryptocurrency game for institutional investors as one strong indicator that the marketplace for Bitcoin has changed dramatically over the last eighteen months. In addition, Wall Street investment bank JP Morgan Chase has also given a vote of confidence to the utility of digital assets, by creating the in-house JPMCoin.

Interestingly, Indexica’s study also found that the tense of conversation surrounding cryptocurrency has changed within the last month. Futurity of Bitcoin, which logged 15 percent of the indexed conversation, gives an indication that discussions are geared towards the future of BTC–as opposed to what has already transpired. SInce the start of April, the future for Bitcoin and the crypto markets has been a dominant topic of conversation, providing another indicator on the direction of the industry.  

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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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Shark Tank’s Kevin O’Leary Calls Bitcoin (BTC) ‘Garbage’

Shark Tank Kevin O'Leary Bitcoin

One of Shark Tank’s most prominent investors has taken aim at Bitcoin and cryptocurrency.

Kevin O’Leary, who also goes by the nickname ‘Mr. Wonderful’ on the show, recently appeared on CNBC’s Squawk Box and gave his negative opinion of Bitcoin. O’Leary told the host that Bitcoin is neither a valuable asset or a currency, but rather constituted a “digital game.” He also called BTC “worthless,” explaining that its difficult for institutional investors to trade in the asset as receivers want some guarantee of value,

“To me, it’s garbage, because you can’t get in and out of it in large amounts.”

Despite Bitcoin frequently being compared to digital gold, O’Leary–who is the chairman of O’Shares ETFs–furthers the argument that the digital asset lacks intrinsic value. While gold and other precious metal stores of value may suffer from the same argument that their price is largely a social construct, O’Leary finds particular fault in Bitcoin. O’Leary gave the example of his failed attempt in using BTC to purchase Swiss real estate. According to O’Leary, sellers are wary of accepting Bitcoin without having a guarantee that ultimately amounts to being tied back to the U.S. Dollar.

He continued,

“Let’s say you want to buy a piece of real estate for $10 million in Switzerland. They want a guarantee that the value comes back to the U.S. currency. You have to somehow hedge the risk of bitcoin. That means it’s not a real currency. That means the receiver is not willing to take the risk of the volatility it has. It’s worthless.”

In spite of Bitcoin being up over 100 percent since the start of 2019, ‘Mr. Wonderful’ still finds fault in cryptocurrency as a worthwhile digital asset to invest in. O’Leary also told his show hosts that he had previously invested in cryptocurrency as a “challenge” while teaching a course at Harvard University in 2017. The Shark Tank VC only put in a small amount, but watched as his investment shrunk 70 percent with the falling market,

“I bought all the crypto crap. I put $100 in. It’s now worth $30. That’s a 70% loss.”

O’Leary then went on to caution current investors to avoid succumbing to FOMO, particularly in light of the recent price hike for Bitcoin. While the currency may be pushing a relative high for the year, with analysts shifting to a bullish outlook in price for cryptocurrency, O’Leary thinks the price is to volatile to guarantee any worthwhile or long-term projection,

“People should understand today the hot digital is bitcoin. Tomorrow it could be whatever.”

O’Leary is not the first high-profile investor to take aim at Bitcoin since the price rally started in April. As reported by EWN, Charlie Munger–long-time Berkshire Hathaway partner to Bitcoin critic Warren Buffett–compared cryptocurrency investors to the biblical figure Judas Iscariot.

Despite the backlash, the price of Bitcoin has continued to reach new heights since the start of the year. Following on a bullish rally in April, the price of BTC went exponential over the weekend, gaining $1500 in the span of days.

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Is Facebook Driving Bitcoin (BTC) Price Rally?

Facebook Coin Bitcoin BTC 2019

Facebook’s interest into cryptocurrency, with the forthcoming Facebook coin likely to be announced in Q3 2019, is finally having its effect on the crypto markets.

The blockbuster rumor that Facebook was in the process of developing a stablecoin for its messaging platform had a small impact on the crypto markets at the time, in large part due to the “crypto winter” for coin prices throughout 2018. Plain and simple: excitement and investor interest in cryptocurrency hit a lull at the end of last year and beginning of 2019, as weary traders and retail investors all but fled the market. The rise in coin prices throughout the first quarter of 2019 have been enough to reignite digital assets, with Facebook making a serious foray into cryptocurrency grabbing the attention of institutional investors.

Some have called Facebook’s stablecoin a primary competitor to Bitcoin, representing the first established company to issue its own currency. However, Facebook’s impact upon the marketplace for cryptocurrency and its adoption has been more in favor of the entire of the industry than seeking to crush it through competition.

For years, cryptocurrency adoption ran into the roadblock of not having major names using or developing digital assets of their own. While was one of the larger online retailers to accept and support Bitcoin, industry pundits remained skeptical on whether a larger enterprise would both using digital currencies. Walmart and Amazon appeared favorites during the bullish run for crypto in 2017, owing to the fact that both companies operate on a large enough scale to benefit from the improved efficiency of blockchain.

However, Facebook has become the frontrunner in establishing massive interest for cryptocurrency. The Facebook coin will likely find a following amongst the 2+ billion users of the social media platform, particularly in developing countries where digital payments provide a welcome alternative to untrustworthy government fiat.

Nonetheless, the real industry growth comes from the exposure of cryptocurrency to such a massive user base. The current divide between a service like Venmo or PayPal and that of Bitcoin is still large enough to buffer otherwise tech-savvy users. With Facebook bringing cryptocurrency to the masses, the advent of token payments and digital alternatives to fiat becomes all the more appealing, particularly when targeted to the global audience that the social media platform commands.

The massive rise in valuation for Bitcoin, which took the coin above $6000 for the first time this year, is in no small part being drive by positive sentiment generated out of Facebook. The company recently announced a landmark shift in its cryptocurrency advertising policy that is clearly paving the way for their own stablecoin. Rather than repelling the industry and generating all-too familiar stereotypes of vagrancy, Facebook is now becoming one of the primary platforms of embracing the industry.

While Facebook Coin may become a substantial competitor to Bitcoin in the future, for now news of the social media platform is having a synergistic effect. Institutional and retail investors alike are changing their predicted outlook for cryptocurrency, and funneling their investment into the increasing market dominance of Bitcoin.

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Billionaire Charlie Munger Compares Bitcoin Investors to ‘Judas Iscariot’

Charlie Munger Bitcoin BTC Cryptocurrency

In a bizarre turn of events, Charlie Munger–one of Wall Street’s most recognizable figures and long-time partner to Warren Buffett–compared cryptocurrency investors to the biblical figure of Judas Iscariot.

The billionaire investor and Vice Chairman for Berkshire Hathaway continued his criticism of Bitcoin, which has been ongoing for several years. Munger’s comments follow on the heels of the most recent remarks by partner Warren Buffett, who last week called Bitcoin a “gambling device.” Buffett, who is worth over $90 billion, lamented the state of Bitcoin and cryptocurrency investing as a stage for fraudsters and charlatans, despite the growing valuations for digital assets.

Instead, Buffett used the opportunity to renew his attack against the leading cryptocurrency by market capitalization, claiming that Bitcoin was responsible for a series of frauds and “disappearances” related to the digital asset. Munger echoed the comments of his esteemed investment partner, as reported by news outlet Markets Insider in a post on May 4.

The comments were made in relation to Munger being invited to a cryptocurrency event by an unnamed digital assets group. Despite declining the invitation, Munger managed to sneak in his views towards Bitcoin and cryptocurrency, which amounted to more negative press for the industry in the vein of comments made by Warren Buffett.

The most recent comments by Munger are not the first detraction by the billionaire towards cryptocurrency. A year ago, Munger claimed that cryptocurrency trading was equivalent to “just dementia,” going on to say,

“And I think the people who are professional traders that go into trading cryptocurrencies, it’s just disgusting. It’s like somebody else is trading turds and you decide, ‘I can’t be left out.’”

While Munger and partner Warren Buffett found substantial traction in criticizing Bitcoin throughout 2018, when the asset class fell over 80 percent and the crypto markets entered what many analysts called a “crypto winter,” the recent rally in digital assets has made the comments fall on deaf ears.

Sentiment towards both cryptocurrency and Bitcoin took a 180 degree turn in the last month, with Bitcoin approaching the $6000 mark for the first time in the last six months, since November 2018. While the markets faltered at the beginning of last week, when news broke that the New York Attorney General’s office accused Bitfinex of defrauding investors and manipulating the market of cryptocurrency, the price of Bitcoin has since recovered. BTC market dominance has approached a relative high of 56 percent, up nearly 12 percent since the start of the month.

SFOX, a cryptocurrency analytics firms, has published a ‘mildly bullish’ outlook for Bitcoin into the fifth month of the year, continuing on four months of growth to start 2019. However, other analysts have pointed to the $6000 mark for cryptocurrency as a potential barrier for the digital asset, claiming that retail investors who lost substantial money last year will be looking to recoup losses.

While BTC is up nearly 100 percent since the start of 2019, Bitcoin suffered a sudden drop in price from around $6000 to $3000 during November 2018. The precipitous and sudden fall for Bitcoin has some analysts wondering just how steep the price resistance will be as BTC approaches its $6k marker.

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