Could we be heading toward $5,000 gold?
Last week, there was a big sell-off in the bond market. Yields on the 10-year Treasury soared 11 basis points in one day. Global stock markets sold off the following morning and US stock markets followed suit. This week, things really got really ugly on Wall Street. The Dow dropped over 1,300 points in two days. In a video for SchiffGold, Peter Schiff said stock market investors “finally took notice of the carnage that was going on in the bond market.”
On Thursday, the price of gold popped, rising nearly 3%. But despite all of the action this week, most people in the mainstream remain complacent. The narrative is that this is a normal bull market correction. Peter said nothing could be further from the truth.
The economy is even a bigger bubble than the stock market.”
Paul Krugman said gold is dead. In fact, “Bitcoin has more utility than gold,” according to the popular lefty economist.
Krugman made the comments at ChainXChange, a blockchain artificial intelligence and innovation conference in Las Vegas.
Will bitcoin someday replace gold as the preeminent store of value?
One economics professor said it won’t because it will become more and more vulnerable to attack as its value increases.
University of Chicago economics professor Eric Budish lays out his case in a National Bureau of Economic Research paper titled “The Economic Limits of Bitcoin and the Blockchain”
Bitcoin and the blockchain are joined at the hip – so much so that a lot of people don’t distinguish between the two. Cryptocurrency and blockchain have almost become synonymous. But in fact, they are two different things, and it’s important to understand the distinction.
The blockchain is a technology. Cryptocurrency is a medium of exchange or a store of value that operates on that technology. You can have a blockchain without cryptocurrency, but you can’t have cryptocurrency without a blockchain. In fact, there are a lot of other possible uses for the blockchain beyond serving as a platform for bitcoin.
It’s no secret that Bitcoin has tumbled since its meteoric rise late last year. After nearly touching the $20,000 mark, the cryptocurrency is trading at around $6,600 today. Other cryptocurrencies such as Litecoin, Ripple and Ethereum have also all shed big chunks of their value. But at least these cryptocurrencies are still alive and kicking. Hundreds have simply died.
Deadcoins.com lists over 800 cryptocurrencies that no longer exist or have a value of 1 cent or less.
Remember when Bitcoin was knocking on $20,000? Today it’s it’s in a freefall, trading in the $6,000 range.
Crypto markets tumbled again last week after Japan’s financial regulator ordered several cryptocurrency exchanges to beef up anti-money laundering practices. The move prompted the country’s largest crypto exchange to suspend creation of new accounts. Bitcoin fell nearly 9%.
In his most recent podcast, Peter Schiff hit a number of subjects including oil prices, bond prices, Bitcoin, the dollar and tariffs. Peter said he thinks we’re seeing a lot of movement in a number of markets that are counter to the long-term trends. For instance, oil dropped late last week, but he expects it’s long-term trend to continue upward. The dollar has picked up strength, but the broader trend is toward a weaker dollar. And bond yields fell, but the overall trajectory for interest rates is up.
Twitter has announced a ban on cryptocurrency ads.
The social media company’s announcement is more bad news in what has turned into several bad months for cryptocurrencies.
SchiffGold’s It’s Your Dime features “straight talk” interviews with movers and shakers in the world of precious metals, investing and economics.
In this episode, host Mike Maharrey talks with SchiffGold senior precious metals specialist Joel Bauman. In an interview recorded earlier this month, they discuss the current state of the precious metals market and Joel talks about where he thinks it’s heading in the near future. Along the way, Joel and Mike get into several interesting subjects including gold and silver’s role as a portfolio hedge, ETFs vs. physical gold, counterparty risk and the cryptocurrency phenomenon.