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Financial Crash Coming? Hedge With Bitcoin and Gold?

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Several pundits including Peter Schiff, Marc Faber and Ron Paul have been saying that a financial crash is imminent. The Federal Reserve kept interest rates too low for far too long and that QE infinity will come back to bite the world economy. The latest to comment is Kim Dotcom.

Kim Dotcom, also known as Kimble and Kim Tim Jim Vestor, is a German-Finnish Internet entrepreneur, who rose to fame in the 1990s in Germany as a teen hacker. He even received a 2 year suspended sentence for selling identities that he had siphoned from telephone operators’ client database. He is mostly known for founding the now-defunct file hosting service known as Megaupload (or Mega). He has on numerous occasions been called one of the world’s ‘largest tech entrepreneurs’.

Kim has most recently got into the crypto industry and recently tweeted the following with regards to crypto, gold and the USD.

“Trust me. Buy crypto and gold. Your USD will become worthless. With US economic collapse all old money currencies will crash. Times will get tough. But you’ll be fine if you hedge some of your assets in preparation for the crash. The big crash is coming 100%.”

USD No Longer Backed By Gold

Back in 1971, the United States stopped backing the USD with gold or silver. This meant that this was the beginning of US Citizens using paper money that cannot be redeemed with gold or silver at the Federal Reserve. The Federal Reserve confirm this on their website through the following statement.

“Federal Reserve notes are not redeemable in gold, silver, or any other commodity. Federal Reserve notes have not been redeemable in gold since January 30, 1934, when the Congress amended Section 16 of the Federal Reserve Act. Federal Reserve notes have not been redeemable in silver since the 1960s. The Congress has specified that Federal Reserve Banks must hold collateral equal in value to the Federal Reserve notes that the Federal Reserve Bank puts in to circulation. This collateral is chiefly held in the form of U.S. Treasury, federal agency, and government-sponsored enterprise securities.”

What if there is a complete financial crisis?

Since the USD is not redeemable in gold, silver or any other commodity, once the USD plummets like the Turkish Lira, then cryptocurrencies and gold would be the only valuable assets. This then means that Kim Dotcom is right in saying that we should diversify our assets into crypto and gold.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Bitcoin about to drop to 4k, how will the market recover?

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It’s no secret that the cryptocurrency market (including Bitcoin) has been under a bearish run since last December 17th and it’s been going down steadily over the previous eleven months. But nobody was ready for the way in which the bears hit the market this November 14th.

It was just insane. The market capitalization for crypto went to its lowest point in a very short time. Bitcoin, which is crypto’s canary in a coal mine (so to speak) dropped below the 5k mark. It’s trading at $4,443 as we write this article and is expected to hit the 4k mark if things keep going in the same direction.

Can the trend change? Is there any good news to report? Any reason to be hopeful? The answers are: yes, yes, and yes.

The trend can and will change. We know this because drops as dramatic as the current one have already happened four times over the last ten years. Every time the market has bounced back to reach previously unexpected (allegedly impossible) heights.

About good news to report. There’s plenty. Blockchain projects like Ripple, Cardano, Stellar Lumens, Tron, and some others have reached impressive milestones this year. They are gaining adoption, becoming useful in the real world and securing strategic partnerships.

Also, even in the bearish climate, the crypto infrastructure has kept snowballing so you’ll be hard pressed to find any place in the world in which you…

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What’s Wrong with Crypto?

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Sponsored by Global Coin Report and ICOsuccess

Hey! Are you fed up with the crypto market?

Hungry to see the charts bursting with green again?

The purpose of this very short survey is to get your thoughts on what is holding back our industry and collectively brainstorm ideas for turning it around.

We are looking to get a couple thousand responses over the next couple of weeks, and we’ll be sharing the aggregated results with you once we’re done!

Click below to do your share in bringing back a thriving crypto market!

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First crypto ETP gets approval from Switzerland, XRP takes a significant bite

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Bitcoin is currently at the lowest price it’s had in a year and, yet, confidence and interest among the traditional financial industry (which has been very skeptic since it all started) keeps growing at an unprecedented rate. Switzerland, the world’s quintessential banking country, has green-lighted the world’s first exchange-traded product tracking multiple cryptocurrencies.

It will be called Amun Crypto ETP and will go online next week on Zurich’s Six exchange. It’s designed to track five cryptocurrencies and to index their market performance. The five digital assets in question are Bitcoin, XRP, ETH, Bitcoin Cash, and Litecoin.

Having your tokens managed by Amun will set you back by 2.5%. It’s expected for Bitcoin to be responsible for about half of the trade, with XRP doing a quarter of business and the three remaining coins at smaller percentages.

The Swiss exchange parent company is Amun, a fintech company based in London and founded by Hany Rashwan. Mr. Rashwan assured to the press that the ETP is built to meet all the same standards valid in conventional exchange trade used by investors all over the world. Mr. Rashwan added,

“The Amun ETP will give institutional investors that are restricted to investing only in securities or do not want to set up custody for digital assets exposure to cryptocurrencies. It will also provide access for retail investors that currently have no access to crypto exchanges due to local regulatory impediments.”

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