Topic: [2017-09-12] Gold And Bitcoin Surge On North Korea Fears (Read 2180 times)

FTFY so-called financial journalist




Look, it's really simple Forbes Magazine, either capital runs the system or violence does. We all know you guys are in favour of the violent gangsterism version of reality, quit your idiot analogies and get real. No-one wants to hear your sycophantic bleating in favour of the cryptocurrency world now, you've been talking 99% nonsense about cryptocurrency ever since you began covering it.

If the finance world is to take you seriously, start here: an unmitigated apology to the cryptocurrency industry, and to capitalism, period. Until then, do be quiet.

Gold experienced a decent boost since the first of January of this year. Of course it's nothing compared to what sort of roller coaster Bitcoin has gone through, but for Gold standards, this is a pretty decent increase. If we at some point manage to convince whatever entities to buy themselves into Bitcoin instead of Gold, the Bitcoin market will climb towards a $1000B market cap within 10 years, to put it conservatively. Bitcoin is superior in basically every way, aside from the physical aspect that allows people to use it as currency tool whenever they want - an internet connection isn't needed. It will be interesting to find out how long Gold will need to get back to its previous all time high of just over the $1900 level, per TO.

If you’re familiar with ABC’s popular reality show Shark Tank, you should already be familiar with the concept behind the San Antonio Angel Network (SAAN). Select entrepreneurs and innovators pitch their startup ideas to accredited investors, who can choose to make early-stage investments in a potentially successful company.

I attended an SAAN meeting last week at Ferrari of San Antonio, and what struck me the most was how fluid and seamless the whole thing is. Other professionals in attendance, including lawyers and CPAs, had a similar opinion, with some of them saying it was because there wasn’t any bureaucracy or red tape to hamstring the presenters.

This is unlike the world of mutual funds, which I believe has become excessively regulated.

As I’ve said numerous times before, regulation is essential, just as referees are essential to a basketball game. No one disputes that, because otherwise there would be chaos.

Similarly, the new and very unregulated world of cryptocurrencies has grown dramatically, beyond bitcoin and ethereum. Did you know there are over 800 cryptocurrencies? These new initial coin offerings, called ICOs, are like initial public offerings (IPOs) but with little regulation or accountability. As I’ve commented before, if the refs get too powerful or too numerous, and the rules too complex, the game becomes nearly unplayable.

Cryptocurrencies Still Draw Investor Attention Following China Crackdown

Bitcoin, ethereum and other cryptocurrencies have had a meteoric year, with more than $2 billion raised in ICOs so far in 2017, according to Bloomberg. Approximately $155 billion in cryptocurrencies are in circulation around the world right now. Bitcoin by itself is at $78 billion, which is close to the $90 billion invested in all gold ETFs.



Like gold, cryptos are favored by those who have a deep distrust of fiat currency, or paper money. Money, after all, is built on trust, and the blockchain technology that bitcoin is built on top of automates trust through an electronic ledger that cannot be altered. Every transaction is anonymous and peer-to-peer. The system is entirely decentralized and democratic. No monetary authority can see who owns what and where money is flowing.

This, of course, is a huge reason why some world governments want to crack down on the Wild West of virtual currencies, especially with bitcoin surging close to $5,000 this month.

China did just that last week, putting a halt to new ICOs and crypto transactions. In response, ethereum tumbled as much as 15.8 percent last Monday, or $55 a unit. Bitcoin lost $394 a unit.

China’s decision comes a little more than a month after the SEC said cryptocurrencies are securities and therefore should probably be regulated as such. At this point, though, the implications are unclear.

What’s clear to me—after seeing firsthand how easily and quickly transactions are made—is that there’s no going back. It’s possible cryptocurrencies will one day be regulated. But I’m confident bitcoin, ethereum and some other virtual currencies offer enough value to weather such a potential roadblock.

I also believe there has to be a happy medium between the excessively regulated fund industry and the potential chaos of the cryptocurrency. This is what I witnessed at the SAAN event I mentioned, which allowed the professionals in attendance to gain information, ask questions and make informed decisions.

Continue reading: https://www.forbes.com/sites/greatspeculations/2017/09/12/gold-and-bitcoin-surge-on-north-korea-fears/#54f1070d4240