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THIS WEEK’S EDITORIAL
BITCOIN IN THE NEWS AGAIN
ANOTHER CRYPTO VENTURE FAILS: On April 14th, the price of Bitcoin hit its all-time High of US$ 64,662. It then started to fall. At the end of June, it had fallen below $30,000. It is now struggling to hold around US$33,000 – 34,000. If it falls decisively below $30,000 again, it will certainly be in trouble as a wealth storage asset. Confidence could then fall if sellers persistently accept lower prices offered by buyers. Such price falls do not require large numbers of sellers. One seller is enough to cause a collapse as long as they hold a large volume and persistently take lower bids as they slowly reduce their position or make their exit. The majority of holders do not have to sell to see this scenario take place. Prices are set “at the margin” in all asset markets. Relatively small numbers of investors can have significant impacts especially if most holders of an asset are inactive in the market. In fact, daily trading volumes recently peaked on May 20th and have been in decline since then.
Bitcoin is a digital asset which is priced in fiat currencies, but especially in US Dollars. If such a seller is desperate to get back into US Dollars, then they will push the clearing price lower and lower while the “true believers” remain inactive. A crash happens if the true believers lose confidence and start to sell as well.
In regard to the Crypto market capitalization as a whole, Bitcoin has dropped to a “dominance” figure of just 45.3%. In January this year, it was almost 70% of the market. In 2013, it was 96.6 % of the market. So there has been a steady erosion of its value in regard to other Crypto alternatives. In January 2018, it reached 32.8% which was its all time Low. It is still a significant player in the Crypto world but has clearly fallen out of favour again in the last 6 months. Some recent events will not help.
BITCOINS MISSING IN AFRICA: Last week, it was reported that two brothers in South Africa had fled with $ 3.6 Billion of clients’ money after closing down their online Crypto investment business called Africrypt. Reportedly, they had full control of their clients’ Bitcoin and Crypto holdings through Africrypt. However, since then, one of the brothers has said that the total was much more like US$ 200 Million and that “only” $ 5 Million was missing. But, nevertheless, they are now apparently in hiding from some of their disgruntled investors.
Africrypt had offered “decentralization” of finance via the use of so-called “Crypto-currencies”. Magical thinking seems rampant in the Crypto world. Advertisements are common suggesting that Millions (or even Billions) can be made. This appeals mostly to people who crave wealth but are not interested in building it slowly over time. Speed is always emphasized.
BINANCE IN TROUBLE – NATIONS TAKE ACTION TO PROTECT INVESTORS: Last week, one of the world’s largest crypto-exchange networks, Binance, was ordered to shut down all regulated activities inside the UK. The Financial Conduct Authority (FCA) in the UK issued a warning to consumers about Binance Markets Limited; the network’s only regulated UK entity.
“A significantly high number of crypto-asset businesses are not meeting the required standards” under money-laundering regulations, the FCA said. This will not affect Binance operations outside of the UK. However, it is not a good look.
Recently, Japan’s financial regulator issued a statement saying that Binance is not registered to do business in that country. Again, this will not affect Binance operations outside of Japan significantly but it is not a good look. These developments have occurred after China recently took action to stop Crypto currency mining operations inside their borders.
One month ago, on 23rd May, BOOM wrote — “BOOM expects further declines in Bitcoin price. Most Crypto exchanges are not regulated in any significant way. It is the wild, wild west.“
The Ontario Securities Commission (OSC) in Canada also recently started legal action against unauthorized virtual currency exchanges operating there. The OSC said that some crypto businesses are not adhering to Ontario’s securities laws.
With the recent crack down from the Chinese, UK, Canadian and Japanese money authorities, BOOM expects the price of Bitcoin to weaken further from here. But the US is the big player in this space because the US Dollar is the currency of choice for most Crypto holders to acquire if they sell out.
The US financial regulators have already expressed their discontent about the Crypto world inside their borders but they have not yet taken decisive steps to stop conversion into US currency outside their borders. That may be the next step. Or it may not be — as perhaps the US authorities favor a global market in Crypto -US Dollar exchange?
https://www.rt.com/business/527767-uk-bans-cryptocurrency-exchange-binance/
WAGES GROWTH IN THE USA: The annual percentage change in Average Hourly Earnings in the US is currently around 3.5 %. This was the figure way back in 1964. Since then, it has averaged about 7 % over more than 5 decades. In 1981, at the height of CPI inflation in modern times in the US, it reached 9 %.
Last Friday, the US Bureau of Labor Statistics reported a strong figure for Non-Farm Payrolls for June with 850,000 jobs added. However, the unemployment rate rose from 5.7 % to 5.9 %. Average hourly earnings increased by only 0.3%, below forecasts of 0.4%. This indicates that CPI inflation may remain in check in the future, at least for the rest of this year.
Strength in all bond market prices continued with no reaction apparent to the good number. It seems that bond investors continue to be adamant that CPI inflation risk is in check in the United States.
DR ROBERT MALONE BLOCKED: BOOM has reported on Dr Robert Malone’s recent statements about Covid 19 and the Covid injections. You will recall that Dr Malone is the inventor of mRNA Vaccine technology and that he refers to the Covid injections as “experimental genetic vaccines”. Sadly BOOM must report that Dr Malone has since been banned by LinkedIn.
Dr Malone, the discoverer of in-vitro and in-vivo RNA transfection and the inventor of mRNA vaccines, had this to say elsewhere.
“Yes, I have been locked out of LinkedIn and my account has been shut down. #censorship in the time of COVID. I have had to submit copies of my driver’s license and LinkedIn will now make a determination about reactivating my account.“
He also said — “regarding the censorship – I predict it will get worse.”
And — “LinkedIn has provided a list of my thought crimes. An amazing document.” –
And — “We need a new word for what is going on regarding the censorship and integration between government, big tech, and pharma. One example might be “technofacism”. Please teach me better words for this? What do you call it?”
More from Dr Robert Malone here on the Highwire: https://thehighwire.com/videos/mrna-vaccine-inventor-calls-for-stop-of-covid-vax/
SINGAPORE TO LIVE WITH COVID: Singapore has abandoned any plans to eliminate Covid 19. Travellers will not have to undergo the horrors of quarantine and if you are in Singapore and come into close contact with a “case”, you will not have to isolate yourself. They have decided to manage it like they manage Influenza every year. Daily “case” numbers will not be released. This means that Singaporean life will return to Pre Panic Normal; a breath of fresh air and common sense.
THE TRUTH ABOUT THE DELTA VARIANT IN THREE MINUTES: It’s not as dangerous as they imply – watch the 3 minute video from Ivor Cummins: https://youtu.be/TtOu7jx3snQ Send it to your local politician. They might learn something. But they won’t like it.
REINER FUELLMICH BEGINS LEGAL ATTACK ON COVID 19 PROTAGONISTS
LINK: https://beforeitsnews.com/eu/2021/06/an-announcement-by-reiner-fuellmich-2673985.html
In economics things work until they don’t. Until next week -Make your own conclusions, do your own research. BOOM does not offer investment advice.
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“Bitcoin…a wealth storage asset.”
– Austrian Peter
There’s a glimpse of that renown extra-dry British humour one always hears about.
…and it’s gone.
My son, the rocket scientist? Well, he has complete faith that all these electronic gizmos and doodads are going to be with us forever.
Bear in mind, he spent his adolescent and teen years helping us in the preparation for moving out here and yet! After getting his degree in computer science/programming/software engineering (wtf is THAT?) whatever, he rolls his eyes at our corn-shucking countrified ways. He does seem to like my cooking.
He says the network is forever.
Smile Auntie, you’re on Candid Camera 🙂
Who in their right mind hands control of their investments to “Africrypt?”
Africriminals perhaps? A lot of blood money in Africa
I still think everyone should own some bitcoin. But fear of something people don’t understand will keep many away. Just watch as the dollar is printed at warp speed and is worth less and less. Note that bitcoin is stuck at around thirty five thousand. and watch as it goes back up past its 60.000 high. If you look at a graph of what it’s done in the past you will see it goes down and back up. It may take a bit since it’s an investment. You do use your paper dollar to buy bitcoin. You would have to believe that people’s phones and internet connection will fail permanently to make bitcoin not work. I figure people will be paying for stuff with their phone and crypto as the dollar falls or becomes a form of digital crypto itself.
It’s like owning Gold or silver but different.
I own no bitcoin but am starting to come around. Luongo makes a great many solid points in its favor.
i don’t know how to slip a bitcoin into janet yellen’s g-string
Y not use the BTC to aid Salvadoreans,in inward and outward remittances ?
It can also be used to settle import and export payments ,especially since bulk of the imports,are from the USA,and BTC is freely used in USA.
Transfers of funds from 1 BTC to the other,is in less than 1 second,and this is a legit transfer.Even if the transfer is to a money changer in Salvador,he can sell the BTC,and pay the recipient in cash with a cash receipt.
In 1 second,the price will not vary much,and the money changer has to have standing instructions,to sell all BTC inward remittances – in 3 second tranches.BTC or some other currency,can have an option to block the price for 3 seconds,and that quantity of BTC,will NOT BE traded for 3 seconds,and disclosed on the Crypto Exhange.Or in the alternative,some large BTC trader can offer a Put option for 3 seconds – which will be the cost for the remittance.
The savings in time and cost,will far exceed any disadvantage,and Salvadoreans will get more cash in hand,to spend and save.They could cash out in USD,or any other currency,at premium rates.
Salvadorean Money Changers and ADs,will become OBSOLETE soon.Salvadorean bankers,have to make profits from efficiencies, and NOT by gouging money from locals.dindooohindoo
With BTC as the EXCHANGE,the nation should invite PRC and others,to tap into Peak load power plants like Hydel and Geothermal,and invite miners into Salvador,into SEZs with nil Taxes for 10 years,and guaranteed power supply.The Govtt will earn from power tarriffs,power wheeling,tax on power profits and lease charges,on the Miners
Salvador has 23 ACTIVE VOLCANOS AND SITS ON THE RING OF FIRE.THE POWER CANNOT BE USED IN SALVADOR,TO MAKE OR EXPORT ANYTHING.THE ONLY THING THAT CAN BE EXPORTED IS BTC,AND MADE BY FOREIGNERS IN SALVADOR !
IT IS A WIN-WIN !
This can be a new economic model for the nation.
ALSO, SALVADOR HAS MANY PORTS WITH GOOD DRAFTS, WHICH ARE VIABLE FOR RPP – ON RFO OR HSD – WHICH IS A SHIP WITH A POWER GENERATOR,WHICH WILL DROP ANCHOR AT THE PORT,AND GENERATE PEAK LOAD POWER -ON TAP !
WITH LOW COST POWER, SERVER FARMS CAN ALSO BE HOSTED IN SALVADOR !
BTC usage and BTC mining and BTC server farms are the future of Salvador – with its abundance of Active volcanos in the Ring of Fire.
Planned rightly, it could double the per capita income of the nation in a few years.
Deep draft ports,Geo Thermal and Hydro Power with RPP,large land mass,existing transmission grid = PERFECT OPPORTUNITY FOR BITCOIN IN SALVADOR ! dindooohindoo