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Bitcoin of 2020: On the Rise, Better Established, and Much More Stable

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Why Bitcoin is Continuing to Climb, from More Solid Ground Than Ever

Last night saw Bitcoin once again soaring up the market, with a 6% increase over the course of three hours. This continues a fantastic start to the year for the world’s largest decentralized currency, which is up 30% since January 1st, and pulling along with it several other primary cryptocurrencies, including Ether, Litecoin, Ripple, and Dash.

A Significant Moment for Bitcoin

January 2020 is certainly proving highly significant for Bitcoin. The sharp increases and painful falls of the past pale into comparison with now, as the current increase seems to come from a far better-established position with much more stability. Furthermore, the activity around Bitcoin is expanding in exchanges, banks, and other financial institutions, together with its legitimacy and relevancy.

World Economic Forum 

Last week, at the World Economic Forum annual summit at Davos, Switzerland, Bitcoin, cryptocurrencies, and blockchain technology were honored guests. Many of the billionaires, bankers and treasury ministers who gathered in Davos are still fairly skeptical about the decentralized economy, but despite this, they also realize that they cannot stop it.

The World Descends into Chaos, And Bitcoin is on the Rise

It seems that the more agitated the world agenda, the more Bitcoin’s popularity grows, and strengthens its status as a hedge against the traditional markets. The continuous climb of the stock exchanges is increasing concerns of a coming crisis, but in January there were new worries blending with the slow growth in the global economy, the unstoppable printing of fiat money, and the huge debts in the balance sheets of the biggest countries.

Crisis as a Catalyst

Things happen so fast in today’s world that it’s hard to remember that the geopolitical turmoil between the United States and Iran was only three weeks ago. These led to plummeting world exchanges, and a flood of investors running to safe havens, such as Bitcoin whose price jumped sharply in early January – initiating the strong trend for the month. The latest potential crisis is the coronavirus, which is causing the spread of red screens in stock exchanges all over the world, as the number of victims increases. The concern regarding a global epidemic grows – a situation that is seriously hurting China, but more importantly, an effect that far transcends its borders.

The Age of CBDC

One important sign of the growing recognition in the crypto market is the discussions about national digital money, dubbed Central Bank Digital Currency (CBDC). The Chinese are continuing to prepare for the launch of a digital Yuan later this year. As expected, from the moment China announced its intention to launch CBDC in 2020, many countries that had previously been at a standstill on the issue, have now stepped up their efforts. Canada, England, Japan, Sweden, Switzerland, and the EU have set up a CBDC launch group, and other countries are also moving towards this.

While CBDC is not a cryptocurrency, and in some ways is actually the opposite of crypto due to its centralized control by governments, it has a very positive effect on the decentralized market. CBDC speeds up the understanding among users and decision-makers at the government and financial level about the digitization process that is underway in the investment and payments world.

One of the clear, albeit somewhat concealed, motivations driving central banks and governments to issue CBDC is to compete with the usability and innovation of crypto. They fear the moment when the public will increase the usage of the cheap and efficient solutions that the crypto world can offer.

Furthermore, the platforms that will be built to distribute CBDC are expected to enable collaboration with blockchain platforms, thereby accelerating their use. The existence of government-controlled digital money is sharpening the need for financial tools that are censorship resistance, private and safe, much like Bitcoin and other cryptocurrencies.

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World’s Richest 22 Men Are Worth The Same As All 325 Million Women In Africa — New Oxfam Report Reveals

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“Wealth inequality remains shockingly high.” This is the sobering conclusion of Oxfam’s latest report, published on the eve of the World Economic Forum Annual Meeting 2020.

The 162 richest people on the planet boast the same wealth as the poorest 50 percent — 3.85 billion — in the world.

From Tuesday, January 21, close to 3,000 delegates — including 53 heads of state — from 117 countries, will participate in the WEF summit in Davos-Klosters, Switzerland. According to the website blurb, the WEF Annual Meeting is “the foremost creative force for engaging the world’s top leaders in collaborative activities to shape global, regional and industry agendas at the beginning of each year”.

This year’s topic, for the great and the good of the business world and politics, is “stakeholders for a cohesive and sustainable world”. While the hellish fires raging in Australia fan the flames for climate change, the perverse irony that most of the 774 public speakers will have been flown into the summit will not be lost on the people who are truly concerned about the heating of the world.

Similarly, that many of the wealthiest people in the world will gather to no doubt use the WEF platform to further boost their richest, through additional business deals and contacts, while vowing to help those less fortunate is alarming to Oxfam. Hence…

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Cryptocurrency Prices Rally Towards Double-Digit Gains in 2020

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The cryptocurrency market has started 2020 with a huge bang, expanding by an impressive 23% within the first two weeks of the year. The overall market capitalization of the cryptocurrency market – a measure of the size of the market – has grown from $192 billion at the start of the year, to well over $240 billion by the middle of January.

Leading the pack is Bitcoin (BTC), which constitutes more than 65% of the overall market size. Going from just under $7,200 at the end of 2019 to a high of $8,800, Bitcoin recorded double-digit gains within two weeks. January 14 saw a spike of more than 11% in Bitcoin’s price, fuelling speculation that the two-year-long cryptocurrency recession could finally be over.

Bitcoin Price Chart

Among the many factors that contributed to Bitcoin’s price increase was the geopolitical upheaval emanating from increasing tensions between the USA and Iran, which led to a flight of safety capital by investors, to safe-haven assets such as gold. Already established as a manifestation of digital gold, it seems hardly coincidental that the prices of both gold and Bitcoin went up.

Another catalyst for the increase was the official launch of the CME Bitcoin options on January 13. The…

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The Recipe that Causes Bitcoin to Rise: Economic and Geopolitical Uncertainty

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As the world anxiously watched the turbulent events in the Middle East this week, investors have turned to the known safe havens for times of crisis. Throughout history, gold has been a proven investment vehicle during similar tumultuous times, from wars to crises to economic depressions. Yet, over the last week, we saw a notable development that should be carefully analyzed. The increasing heat within the Middle East fueled an event that many anticipated, which allowed the digital heir of gold to demonstrate its intensity and power for (almost) the first time. Who is this heir? Bitcoin, of course.

The assassination of Iranian general Qasem Soleimani and the Iranian missile attacks on US forces in Iraq gave rise to aggressive statements by both the US President and Iran’s leaders and raised genuine concerns regarding potential escalation crossing into other parts of the world. “Third World War” headlines were even spotted in certain media outlets. The response of investors was short and sharp: the global stock markets fell, and everyone rushed for financial cover, many to buy Bitcoin.

Historically Speaking

Throughout history, the acknowledged destination for investment in such situations has been Gold: a scarce asset that retains its value and is detached from the possibly harmful influence of governments and the ordinary markets. And indeed, this week Gold hit a seven-year high (together with a hike in oil price, also directly related to the…

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