Tag Archives: Bitcoin

  • Podcast

    Doug Noland: There Will Be No Way Out When This Market Bubble Bursts

    Financial assets will become toxic to hold
    by Adam Taggart

    Monday, December 11, 2017, 7:07 PM

    10

    This week Doug Noland joins the podcast to discuss what he refers to as the "granddaddy of all bubbles".

    He certainly shares our views that prices in nearly every financial asset class have become remarkably distorted due to central bank intervention, first with Greenspan's actions to backstop the markets in the late-1980's, and more recently (and more egregiously) with the combined central banking cartel's massive and sustained liquidity injections in the years following the Great Financial Crisis.

    All of which has blown the biggest inter-connected set of asset price bubbles the world has ever seen. Noland foresees tremendous losses as inevitable, as the central banks lose control of the monstrosity they have created:

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  • Blog
    stocksmasters.com

    If You Don’t Own Any Bitcoin, Read This

    This week it hit $19,000. What's next?
    by Adam Taggart

    Saturday, December 9, 2017, 12:50 AM

    98

    Bitcoin's price has gone 'beyond exponential' this week.

    Just yesterday, while I was working on this article, it shot up 22% — from $14,000 to $17,000 (hitting an intraday high of $19,000). And that's after a mind-blowing upwards rocket ride over the past several months. I think it's safe to say that the vicious melt-up in price over such a short timeframe has surpassed the expectations of even the starriest-eyed Bitcoin fanboys.

    The whole world, especially the 99.99% of us that own zero cryptocurrency, is asking: What happens next? And, What should I do?

    Is this insane trajectory going to continue for a lot longer? Do I need to get in now to avoid missing this once-in-lifetime fortune-making opportunity?

    Or is this a classic bubble blow-off top? Is this the deadliest time to enter, right before the price implodes?

     

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  • Insider

    Off The Cuff: The Central Banks Are Starting To Really Worry

    About the Frankenmarkets they've created
    by Adam Taggart

    Friday, December 1, 2017, 4:29 AM

    5

    In this week's Off The Cuff podcast, Chris and Wolf Richter discusses:

    • Worried Central Banks
      • The risks of financial instability are mounting
    • The Cryptocurrency Conundrum
      • Can the central banks afford not to contain it?
    • Too Much Leverage
      • When credit tightens, the system will crash
    • Housing Harm
      • Many regional real estate markets are poised to burst

    Wolf watches the minutes of the Fed and ECB closely, and concludes they are (finally!) becoming very concerned about the market imbalances that years of central bank liquidity and intervention have resulted in. They desperately want to cool things off, but have no idea how to do so without pricking the massive asset bubbles they have created. Whether they figure out a graceful way to do it or not (and he and Chris bet "not" is much more likely), he sees a fast-approaching sudden end to the era of ever-rising asset prices.

    Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
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  • Insider
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    Off The Cuff: Increasing Signs The Long Bubble Cycle Is Ending

    Long-standing trends are beginning to reverse
    by Adam Taggart

    Monday, November 20, 2017, 7:01 PM

    11

    In this week's Off The Cuff podcast, Chris and John Rubino discuss:

    • End-Of-Cycle Signals
      • Long-standing trends are changing
    • Big Trouble In Saudi Arabia
      • Now a powderkeg with a short, lit fuse
    • Central Bank Culpability
      • It's scary how such powerful entities are so clueless
    • Bitcoin Today, Gold Tomorrow
      • Hot capital will seek trusted shelter when crisis arrives

    In this podcast, John enumerates the growing number of market indicators he sees that suggest major trend changes are afoot in the economy. He believes the long-standing bull cycle, now at bubble-level extreme asset valuations, is set to reverse.

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  • Podcast

    Patrick Byrne: Why Cryptocurrencies Matter

    They make freedom from the central banking cartel possible
    by Adam Taggart

    Sunday, July 30, 2017, 7:28 PM

    10

    This week we talk with Patrick Byrne, CEO of Overstock.com, and rare courageous voice within corporate America raising concern that powerful interests on Wall Street are destroying US companies for profit, robbing investors and destabilizing our financial system in the process. 

    Byrne has been an early advocate for digital currencies and their potential to protect financial wealth from the massive policy missteps being undertaken by the Federal Reserve. (In 2014, Overstock.com became the first major retailer to accept Bitcoin payments.) 

    In this week's podcast, Byrne details out the promising potential of cryptocurrencies and the blockchain, as well as his thoughts as to whether they will be able or not to evade subversion by the world central authorities.

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  • Blog

    What To Do With Your Cash?

    Is it folly to hold cash right now? Or brilliant?
    by Adam Taggart

    Saturday, July 22, 2017, 4:19 AM

    43

    Have you moved a material percentage of your financial portfolio to cash? Have you become so concerned about the meteoric ramp upwards in asset prices that you find it wiser instead to move to the sidelines, build "dry powder", and wait to re-enter the markets at saner valuations?

    If so, you have my sympathies.

    The past 5+ years have been brutal for savers pursuing this strategy. I know this well, as I'm one of those folks, too.

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  • Insider
    wikimedia

    Off The Cuff: The Unsinkable(?) Market

    No data is too bad enough to stop its rise
    by Adam Taggart

    Friday, July 21, 2017, 6:06 AM

    0

    In this week's Off The Cuff podcast, Chris and Mish Shedlock discuss:

    • The Unsinkable Market
      • No data is bad enough to stop its rise
    • The Disappearance Of Volatility
      • Gone, but for how long?
    • Failing Pension Plans
      • A truly massive crisis in the making
    • Cash, Gold & Bitcoin
      • The only places for capital to find safety?

    During these doldrum days of summer, where no matter the news, today's "unsinkable" markets continue to march ever upwards, Mish shares his thoughts on what will finally cause asset prices to tank.

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  • Insider
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    The Value Drivers Of Cryptocurrency

    These factors will determine which coin(s) will win out
    by charleshughsmith

    Saturday, June 24, 2017, 1:27 AM

    8

    Executive Summary

    • The critical value of scarcity
    • Understanding the utility of the blockchain
    • Will (can?) governments ban cryptocurrencies?
    • A coming geometric explosion in the price of cryptocurrency?

    If you have not yet read Part 1: Understanding The Cryptocurrency Boom available free to all readers, please click here to read it first.

    In Part 1, we surveyed the exciting but confusing speculative boom phase of cryptocurrencies. Here in Part 2, we will contextualize this mad swirl by running it through two filters: scarcity and utility.

    What’s Scarce? Scarcity Creates Value

    Regardless of one’s economic ideology or system, scarcity creates value and abundance destroys value.  When we say supply and demand, we’re really talking about scarcity and abundance and the rise or fall of demand for the commodity, good or service.

    In classical economic theory, scarcity is met with substitution: ground beef too expensive due to relative scarcity? Buy ground turkey instead.

    But this model has weaknesses.  There aren’t always substitutes, or the substitutes are more expensive or problematic than what is now scarce. 

    As a general rule, profits flow to any scarcity of goods and services with high utility value.  We value what’s scarce and useful, and place little value on what’s abundant and of limited utility.

    Currency has three basic functions: a store of value (it will retain its purchasing power over time), means of exchange (we can use it to trade goods and services, pay debts, etc.) and as an accounting mechanism to track assets, debts, income, expenses and exchanges/trades.

    We assume all currency has this function, but only currency that is easily divisible and easily tradable enables easy accounting.  If a notched stick is a unit of currency, and one stick buys a pig, what do I use for purchases smaller than a pig?

    In today’s world, a currency must be….

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  • Blog
    digitalcoinsexchange.com

    Understanding The Cryptocurrency Boom

    A ground-level assessment
    by charleshughsmith

    Saturday, June 24, 2017, 1:26 AM

    59

    Today, there are hundreds of cryptocurrencies, and a speculative boom has pushed bitcoin from around $600 a year ago to $2600 and Ethereum, another leading cryptocurrency, from around $10 last year to $370.

    Where are cryptocurrencies in the evolution from new technology to speculative boom to maturation? Judging by valuation leaps from $10 to $370, the technology is clearly in the speculative boom phase.

    In trying to predict which forms of cryptocurrencies will dominate the mature marketplace of the future, we know that markets will sort the wheat from the chaff by a winnowing the entries down to those that solve real business problems (i.e. address scarcities) in ways that are cheap and robust and that cannot be solved by other technologies.

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  • Insider

    Estimating Bitcoin’s Fair Value

    Spoiler alert: It's much higher than its current price
    by charleshughsmith

    Friday, January 6, 2017, 3:13 PM

    48

    Executive Summary

    • Why No Nation Truly Has Full Control Over Its Currency
    • Why Sovereign Efforts To Control Currencies Is Driving Capital Into Digital Currencies
    • The Driver's Of Digital Currency & Value
    • Calculating Bitcoin's Fair Value

    If you have not yet read Part 1: Why The U.S. Dollar And Bitcoin Keep Rising available free to all readers, please click here to read it first.

    In Part 1, we reviewed the dynamics of demand and utility that drive the valuation of any tradeable good, service, commodity and currency.  We established that it’s impossible to understand how a fiat currency such as the U.S. dollar can retain a value above its tangible value of zero unless we accept its utility value and its non-tangible sources of value, i.e. the wealth and wealth generation of the issuing nation and state.

    We now turn to the second half of the question posed in Part 1: Why isn’t the market value of a digital currency such as bitcoin zero?

    Or perhaps more interestingly: How high might the price of bitcoin go?

    To answer this question, we must investigate another question: Can any state control the value of its currency and its place in the global economy? I suggest the answer is no. Beneath a surface veneer of status quo continuity, nations and states are losing the ability to control their role in the global economy and thus the utility of their currency.

    To understand why, we turn to socio-historian Immanuel Wallerstein.

    Who Controls a Rapidly Changing World-System?

    Wallerstein is recognized for advancing the concept of world-system, his term for what I call a global Mode of Production, i.e., the political, social, financial and economic system that governs the relations of power, labor, capital, trade and resources (broadly speaking, our understanding of Nature and the extraction of its resources).  In a recent essay China is Confident: How Realistic?, he observed that "countries (have lost the ability) to control what happens to them in the ongoing life of the modern world-system."

    These two paragraphs get to the essence of his analysis…

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