Connect with us

Bitcoin

Here Is Why Even Goldman Sachs’ CEO Is Warming Up To Bitcoin (BTC)

Published

on

Bitcoin
READ LATER - DOWNLOAD THIS POST AS PDF

A while back, a seasoned trader once advised this author that whether you love Bitcoin (BTC) or not, the cryptocurrency is the King of The Markets. This means that BTC dictates the general direction of all other crypto assets out there. Whenever Bitcoin is doing well or is experiencing sideways movement, the rest of the coins and tokens either increase in value or also experience sideways movement. The converse is also true. If BTC tanks, the entire market falls with it. Referencing old sailing boats such as those popularized by Pirate movies, BTC is the sail needed to carry this ship of cryptocurrency markets to our preferred destination of The Moon!

Similar sentiments have been echoed by the current CEO of Goldman Sachs, Lloyd Blankfein. He says that critics who believe Bitcoin and cryptocurrencies have no future are wrong 100%. Mr. Blankfein has been open-minded about the entire cryptocurrency markets since last year and had this to say at a conference of the Economic Club of New York:

“If you go through that fiat currency where they say this is worth what it’s worth because I, the government, says it is, why couldn’t you have a consensus currency?”

During an earlier interview with CNBC, Mr. Blankfein had reminded the audience that there was a period in US history when the US government abruptly abolished the gold standard and replaced it with a currency of ‘no value’,. This replacement currency was the USD. Back then, everyone embraced the change and has been the case till now where even foreign governments hold their reserves in the US Dollar.

He used this example to reiterate that Bitcoin could one day replace the regular fiat currency used around the globe. He expressed his opinion by saying that:

“A five dollar gold coin was worth five dollars because it had five dollars worth of gold in it. Then they issue paper money that is backed by gold in the treasury. Then one day, they issue paper money that does not have the backing of gold. There was no pledge that if you turn it in, I’ll give you five dollars of gold. It is fiat money. I say this piece of paper is worth five dollars and so therefore it is five dollars and a lot of people did not take that for a long time.”

loading...

By this statement, we can conclude that the acceptance of Bitcoin and cryptocurrencies will be a matter of trusting that the asset holds value the same way paper money was eventually trusted as being a store of value.

Mr. Blankfein would later add:

“You move a little bit further and you get bitcoin that is not a fiat currency so I don’t trust it and I don’t like it. On the other hand, if it works, I say maybe it was a natural progression from hard money to digital money.”

In summary, the adoption of Bitcoin will have to come from a global change of mentality that it is a trusted asset that holds value. This will happen in a manner similar to how the USD came to be accepted as the natural store of value across the globe. It might sound ridiculous that the USD is simply paper, but there is a global consensus that it is valuable.

For the latest cryptocurrency news, join our Telegram!

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.

Image courtesy of Fortune Live Media via Flickr

Bitcoin

Ethereum Flippening Bitcoin In 5 Years?

Published

on

Ethereum flippening Bitcoin
READ LATER - DOWNLOAD THIS POST AS PDF

The dominance of Bitcoin (BTC) in the crypto markets due to the bear market, currently stands at 55.2%. Ethereum’s dominance is a distant second at 10.8% of the total cryptocurrency market capitalization. This is despite the fact that the value of ETH is still shaky with many traders postulating that it could get worse for the digital asset before it gets better. Ethereum’s decline has been blamed on three factors outlined below:

  1. Congestion issues on the network
  2. ICOs cashing out the ETH raised in the ICO boom of last December to late February this year
  3. Traders shorting ETH due to the above two reasons

Ethereum Flippening Bitcoin?

In a tweet on the 18th of September, Weiss Ratings stated that ETH will grab 50% of Bitcoin’s market share in 5 years. Doing the math, this means Ethereum flippening Bitcoin in the markets with a dominance that will be around 38%. BTC would be at half its current value, and at 27.6% of the total crypto market cap.

The full tweet from Weiss Ratings would go on to explain why this would happen:

“#Bitcoin will lose 50% of its #cryptocurrency market share to #ETH within 5 years, due to it offering more uses and being backed with superior #blockchain technology. We completely agree – unlike #BTC, which is a one-trick pony, the limit of…

Continue Reading

Bitcoin

Crypto News: What Happened To Bitcoin?

Published

on

crypto news
READ LATER - DOWNLOAD THIS POST AS PDF

The crypto news of the day is what the heck happened yesterday in Bitcoin? In a matter of 2 hours, we saw the Bitcoin price go from 6320 to 6080 on Bitmex and then rocket higher to 6580. In the process, stops were cleaned out for both longs and shorts.

For all of 2018, Bitcoin has been a perfect vehicle for swing traders. The market has been playing support and resistance levels perfectly. The play has been to buy Bitcoin around the 6000 level and sell above 7000. Until this pattern changes, it’s what traders and investors need to keep doing. Yesterday’s price action, while crazy and extreme, does still support this strategy.

Why the crazy move in Bitcoin?

There are a number of thoughts as to why Bitcoin made the move that it did. They are technical related and don’t involve a fundamental reason. The first is that there are bots on Bitmex that go hunting for stops. The bot utilizes inside knowledge of where the orders are clustered. If the bot can move the market to where the stops are, it can get filled.

The second is that yesterday was the expiration of the CBOE futures contract. I am an ex-futures trader (now crypto) and know that expiration days can see some crazy moves. This is because it’s the last day to close a position on that futures contract.

Continue Reading

Bitcoin

XRP Rally Lifts Bitcoin and Ethereum

Published

on

XRP rally
READ LATER - DOWNLOAD THIS POST AS PDF

It’s quite surprising to be writing this, but the XRP rally lifted Bitcoin and Ethereum off yesterday’s lows. As I wrote yesterday in covering Bitcoin, my bullish enthusiasm was dampened by Bitcoin’s $300 drop. XRP rising has given renewed hopes that the lows for the year are in and higher prices are ahead.

XRP Rally

The most frustrating part about the XRP rally was the news put out by our competitors. We read the XRP rally was due to xRapid launching soon and also that a major Saudi Arabian bank had joined the Ripple network for international payments. I’ve been trading cryptocurrencies long enough to know that no one knows the exact reason why something happens in the market. This is a major buy spike that came out of left field.

Bitcoin

I am certainly feeling better about Bitcoin now than I was 24 hours ago. The lack of volume and the price action felt like the market was heading lower. Today, however, we are back around the 6350 levels.

The problem is that it still not enough to make me buy more Bitcoin. We are still in the middle of the range between 6100 and 6500. This neutral zone is not an area that I want to be putting on trades. Yesterday’s jump was indeed positive, but need proof that it was not…

Continue Reading

Trending