On the heels of some wild trading in Bitcoin, this dire warning was just issued…
Bitcoins are millennials’ gold
November 29 (King World News) – Gerald Celente sent the following email to King World News:
“Bitcoins are millennials’ gold, and partially for the same reasons about the endless money printing by governments…only so many crypto’s can be printed and their digital currency is as valuable or valueless as all of the governments digital currencies…printed on nothing and backed by nothing. It will also hurt banks since people won’t need them…
Another important element is that it is global. The big rise came when the Chinese Yuan was sinking back in early 2016 and the people, rather than seeing their currency become more worthless, went into Bitcoin…that was the big driver up in its price. And, with the world going more cashless there is no love of country attached to currencies as in the past.
Of course I could be wrong, but as a trend forecaster, I try my best to look objectively at this compared to gold, and one reason physical gold sales are down is because people are going into cryptos. Will there be a major correction…Bitcoin going from $9,500 to $1,500? Yes, there are too many of them and they keep correcting…but growing, but I don’t see them vanishing. And look at gold prices…remember when it went to nearly $900 back in 1980 to the $200 range years later…and stayed low for two decades!”
King World News note: This is a portion of an outstanding article that was featured in the Wall Street Journal and it came with a warning about the ongoing mania in Bitcoin:
BY PAUL VIGNA AND STEVEN RUSSOLILLO (Wall Street Journal)
For the year, it is up 933%, having started 2017 at $968.23. It continued to surge Tuesday evening, and by 10:40 p.m. had traded as high as $10,358.31.
It is one of most notable surges in a generally positive year for asset prices. Through trading Tuesday, the S& P 500 is up 17% in 2017 and the Dow Jones Industrial Average has jumped 21%. The Nikkei 225 is up 18%.
Gold has added about 13%, and copper 23%.
… For all its appreciation among investors, bitcoin is still controversial. South Korea’s prime minister on Tuesday warned that the lure of fast money could prove detrimental and encourage crime.
The manic rally “has led to cases where young people and students get involved with cryptocurrencies to earn money,” Prime Minister Lee Nak-yon said in remarks at a Tuesday cabinet meeting released by his office. “If we let things continue, I feel that it will lead to some serious distorted or pathological phenomenon.”
Most individual investors aren’t making much money from the rally. About 75% of bitcoin addresses, also known as wallets, have less than 0.1 bitcoin in them, according to research site BitInfoCharts.
…But the currency’s growth has also attracted critics like J.P. Morgan Chase & Co. CEO James Dimon and Berkshire Hathaway Chairman Warren Buffett, who have argued that governments likely will ultimately crack down, crushing bitcoin’s price.
“Bitcoin is a speculative bubble that will pop at some point,” wrote Michael Oliver, a market analyst at Momentum Structural Analysis, in North Carolina. Much like the dot-com bubble, however, the sector he argued will become more mature after its reckoning.
While bitcoin’s $166 billion market value now rivals that of General Electric Co. or the monetary base of Venezuela, the use of bitcoin’s network isn’t keeping pace. The number of bitcoin transactions on a daily basis has been consistent in 2017. In January, daily transactions averaged between 250,000 and 300,000. It fell during the summer, then regained near-peak levels in the fall.
Bitcoin’s price rise has come during an intense feud within the industry over the currency’s future. Because of its growth, the bitcoin network can’t efficiently process all the transactions its gets, forcing users to offer fees in exchange for faster trade confirmations. Those fees average around $5, but rose to nearly $20 earlier this month.
Partially in response to such fees, some bitcoin market participants wanted to expand the network’s capacity, but their efforts have fallen short for now. That makes bitcoin less useful as a means of exchange, leaving it as more of a store of value.
In other words, coffee-shop customers may no longer be interested in paying for their morning order in bitcoin instead of with a credit card. But if they invested in bitcoin, they could probably afford to buy a cup for all their friends. —Eun-Young Jeong contributed to this article.
***KWN has now released the powerful audio interview with London whistleblower and metals trader Andrew Maguire and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: Here Are Two Important Charts CLICK HERE.
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