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Will Bitcoin skyrocket as gold did in 2013 after the ETF approval?

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Gold has exceeded many challenges over the last centuries, and it is seen as the best place to invest. However, some investors are proposing that Bitcoin (BTC) can be an excellent competitor to gold and that it has the greatest opportunity to dethrone gold as the safest haven to invest in.

Over the years, there have been other contenders to gold: florins, salt, and ducats; and none of them have been able to keep up with the market.

Bitcoin is a decentralized digital asset, and it is seen as the biggest competitor to gold’s value at the moment. During the closing part of 2017, the price of Bitcoin increased from $1000 to $19,000, and it is taking the same path as gold as a substitute for fiat currencies.

Gold and Bitcoin market chart

Gold had a big run-up in the 1970s. At that time, however, Richard Nixon unsealed the United States Dollars from gold, and that increased the worth of gold as a result of demand and supply. Gold increased from $20 to $30 an ounce to about $600.

However, the price of gold became bearish and decreased to $300 an ounce. In the year 2003, the gold-backed ETF was introduced into the market by the Rothschilds and the Deutsche Bank; and this skyrocketed the price of gold to $1300 an ounce, which is a 300% increase.

Similarly, if we are to take a look at Bitcoin at the moment, Bitcoin has an all-time high of about $20,000 – at the time of writing, the price of Bitcoin sits at $7,465, with a market capitalization of $128.09 billion, according to CoinMarketCap.

Bitcoin and gold charts look very much alike. Bitcoin (BTC) currently has the same bullish and bear runs as gold had in the year 1980s. It is important to know that gold’s chart happened in a 20-year cycle, while that of Bitcoin occurred within a year, but both charts look very similar. In Bitcoin’s case, it occurred within a year at a fast pace due to demand and supply.

The introduction of ETF could boost Bitcoin’s price to $60,000

As stated earlier, when ETF was approved on gold, there was a massive increase. And now, in the case of Bitcoin, ETF is set to be approved very soon, and we could actually see a massive bullish run if the approval isn’t a lock-down scenario. As in the case of the 300% increase on gold, Bitcoin’s price could rise to $80,000. But let’s just keep 26% off to be on safe side, so even if Bitcoin jumps in value by 273% instead of 300% as Gold did, it could rise to $60,000 – which will be a 940% return.

The market capitalization of gold – with all the gold that has been mined – is about $8.7 Trillion. However, if Bitcoin attains a $60,000 price mark, then, its market capitalization will be about $1.26 Trillion with a circulating supply of 21 million.

Bitcoin’s market capitalization at $60,000 has the tendency to increase further, if it gets more regulation clarity, and if a supreme country backs their currency using Bitcoin (BTC) as a reserve currency. There could be a whole lot more that can increase the market capitalization of Bitcoin at that $60,000. Meanwhile, as things stand, this is the right time to invest in Bitcoin due to the fact that great things are coming up.

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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.

Image courtesy of Maxpixel.net

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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