Bitcoin price decouples from gold strengthening its store of value properties It seems that Bitcoin has decisively decoupled from gold for the Token Metrics uses machine learning to predict future prices. #DASH was mentioned several times. I’m not saying you should or shouldn’t buy the digital virtual currency, but if you do decide to buy it, do it in your IRA or some other tax-sheltered account. The iGaming industry, which consists of online casinos, sports betting, poker, bingo and lotteries has also been slow to adopt cryptocurrencies. For the most part, for the same reasons as many other service providers.
It seems that Bitcoin has decisively decoupled from gold for the first time in years as the correlation coefficient is dropping fast. In November 2018, Bitcoin price and gold price were inversely correlated, with gold seeing a 12% rally in the following four months while Bitcoin dropped from a high of $6,500 to a low of $3,228 in just one month.
The Ethereum 2.0 staking is gaining traction. The dedicated smart-contract deposit has already received the number of coins required for the developers to start rolling out Beacon Chain, the critical component of the new version of Ethereum protocol, also known as Serenity. However, investors continue pouring money into the project even though their coins will be frozen for an indefinite time.
On November 24, Zilliqa price had an initial small breakout above the parallel channel at $0.0251 with a ton of follow-through in the following 24 hours exploding towards a high of $0.036 and still aiming to hit $0.045.
Author: FX Street
Bill Noble, Chief Technical Analyst was interviewed KitcoNews about which cryptocurrencies have the best investment potential for 2021.
November 26, 2020 1:11 am
Token Metrics uses machine learning to predict future prices. #DASH was mentioned several times.
About the author
tungfa is responsible for social media communications, and posts both original stories and links to news coverage of Dash from around the web.
Why the only place you should invest in bitcoin is in your IRA
I’m not saying you should or shouldn’t buy the digital virtual currency, which is booming once again. I’m just saying, if you do decide to buy it, as an investment or a trade, do it in your IRA or some other tax-sheltered account. (A growing number of these let you own bitcoin).
That way you can ride the latest mania, maybe make a quick profit—and not have to pay any tax when you cash out.
The IRS treats bitcoin as “property,” meaning any gains you make outside of a sheltered account will count as ordinary income.
Bitcoin has risen 70% since the start of October and is nearly at record highs. It’s more than doubled in price in a year. Ah yes, the boom times are back. The bitcoin fanatics are reappearing after their three year hibernation. Cryptocurrency “experts” will soon be cropping up on cable TV, if they aren’t already.
Traders riding this high risk bandwagon are making out like bandits…for now, anyway.
And then there’s Thanksgiving.
It was Thanksgiving three years ago that sent the cryptocurrency mania into orbit. Relatives who’d made money from bitcoin passed on the news to other relatives over the turkey, and explained what bitcoin was and how it worked. The other relatives went home and joined in. Bingo.
Bitcoin tripled in about a month.
Could it happen again this time around? Sure. Why not? Nobody knows.
You could make a quick profit. There again, you could make a quick loss.
But if you want to play and keep down your risks, just play with the house’s money.
It’s an old Wall Street trader’s trick, explained to me by an investment analyst years ago early in the dot-com bubble.
Start by buying, say, $1,000 worth of bitcoin (or $100, or $100,000, or whatever suits your budget). If it rises, and you start to show a profit, buy a bit more. Each time it rises, and your profit grows, buy a bit more…and a bit more…
But do not buy if it starts falling. And cash out if it falls to a trigger point you set in advance, such as 20% from the peak price. Be willing to take a loss and walk away.
Ride the train while it keeps going. Just remember to get off before it hurtles over the cliff.
The disastrous end of the last crypto bubble was signaled quite clearly in advance: A front-page article in the New York Times Style section cheering on the bubble, entitled, “Everyone Is Getting Hilariously Rich And You’re Not.”
That was the peak of the market. Bitcoin then plunged 80%. Other cryptocurrencies collapsed even more.
You can set your watch by these things.
Bitcoin has been around for over a decade now. Technologists and fanboys say that the software and design behind it is quite brilliant.
But of course that has nothing to do with investing.
Bitcoin is a largely useless asset. I am still waiting for a single bitcoin fan or expert to explain to me what bitcoins are really useful for, other than money laundering. I already have my pick of other, legal currencies and gold. It’s quick and easy these days to transfer money online.
Some suggest bitcoin could provide cheap banking services for the poor and “unbanked” around the world. Goat herders in Turkmenistan will keep their money in cryptocurrencies and manage it on their smartphones.
I will believe it when I see it.
I asked a crypto fanboy the other day what the legal utility of bitcoin was. “Attestation,” he replied. I asked him to explain what he meant, and he sent me a link to an online dictionary.
Attestation: “A proof of concept.” OK. Big deal. Why would that make it valuable?
Admittedly, cryptocurrencies are excellent for laundering money. If I was in the business of selling illegal drugs, evading taxes, supporting terrorists, or blackmailing local authorities and hospitals with computer viruses, I would love this stuff.
Meanwhile, remember the bitcoin market is effectively a Ponzi scheme. Old investors can get paid out only with money from new investors. No, it’s not the same with stocks and bonds. Bitcoins generate no earnings of their own. They pay no coupons or dividends.
So you may buy bitcoin at $18,000 hoping to sell it to someone else at, say, $20,000. Why would that person buy it from you? They’d be hoping to sell it to someone else for, say, $25,000. And why would that person pay $25,000? They’d be hoping…
You get the picture.
Bitcoin, and the blockchain technology behind it, is apparently fabulous technology. But so what? Without a compelling application it’s just a very clever bit of tech, like the old joke about the inventor who comes up with an ingenious kitchen appliance that can scramble an egg inside the shell. Yes, it’s brilliant. But why do I want it?
If I weren’t writing about bitcoin, I’d probably be trading it. Never let a bubble go to waste. So maybe you can make money (real money, measured in U.S. dollars or the equivalent). It’s high risk. But good luck.
Just remember: Save yourself taxes and headaches by doing it in a tax-sheltered account, like an IRA. Oh, and watch out for the end of the track.
Author: Brett Arends
Will the iGaming Industry Embrace Cryptocurrencies – 2020 Review
Bitcoin and other cryptocurrencies have been seeing slow, but gradual adoption by retailers as a method of payment. It’s now possible to use Bitcoin, Ethereum and a few other tokens to pay for day-to-day items like a Starbucks coffee.
Despite the growing rate of adoption, cryptocurrencies haven’t enjoyed the widespread acceptance by the mainstream that was touted by many a few years ago. As Bitcoin’s value skyrocketed from around $900 to almost $20,000 in 2017, newspapers, the internet and TV were all filled with commentators speculating about its future, and the future of cryptocurrencies and blockchain in general.
Some outlets predicted spectacularly high values reaching as high as $100,000 per Bitcoin, while others focused on the fact that we would all soon be replacing our fiat currencies with digital tokens.
However, most of these predictions turned out to be accurate. In fact, early 2018 saw Bitcoin and other cryptocurrencies tank in value, dropping by around a half in just a month, and falling from nearly $20,000 to just over $3,000 by the end of the year.
Early adopters, particularly those in the technology sector, even began receiving their salaries in Bitcoin. Even today, news reports continue to emerge where companies announce they’re beginning to offer to pay staff in Bitcoin, Ethereum, or Litecoin. One of these was CoinCorner, a crypto exchange firm based in the Isle of Man, which started paying all of its staff in digital tokens in August 2019.
But the reason that this makes the news is that it still isn’t the norm, and the rate of adoption is much slower than many of these pundits predicted.
Many consumers are unsure about digital currencies and prefer to stick to what they know and have used for their entire lives. This position is strengthened by the fact that numerous exchange failures and thefts have seen people losing thousands of dollars of Bitcoins and other cryptocurrencies.
The volatility can also put some people off as their risk-averse attitude to investing makes it difficult to justify speculating on the price.
With that said, we’re seeing a similar meteoric rise in the value of Bitcoin in late 2020 as investors look for ways to protect their assets from low interest rates and declines in the value of some stocks.
At the same time, there is a growing number of businesses that are looking to accept cryptocurrencies. This includes small independent businesses and big brands, including Starbucks, Microsoft, and Whole Foods.
Although you can now walk into some branches of Starbucks and buy a flat white with Bitcoin, you still can’t do it at many other franchises. You also can’t spend cryptocurrencies in the vast majority of retail stores. Moreover, some popular sites that used to accept crypto have even begun to reverse that decision.
For example, the travel site Expedia used to allow bookings to be made through its site using Bitcoin. However, this feature was quietly removed a few years ago.
Part of the reluctance among businesses to begin accepting digital currencies is simply because there isn’t enough demand for them. And consumers that would like to pay with their Ethereum will still hand over cash of a credit card if there are no other options.
The iGaming industry, which consists of online casinos, sports betting, poker, bingo and lotteries has also been slow to adopt cryptocurrencies. For the most part, for the same reasons as many other service providers.
Cryptocurrencies are much more volatile than fiat currencies which creates bigger risks. If a business holds a reserve of Bitcoin and its value decreases, then it stands to lose a significant amount of money. On the other hand, if Bitcoin appreciates, the business could profit.
For some people, this may sound like a reasonable bet to make, but many businesses prefer certainty. The same is true for traditional currency exchange, with many larger companies using the futures market to get certainty.
Most iGaming brands choose not to be exposed to this volatility, and opt to only accept fiat currencies like dollars, euros and pounds.
Additional regulation in the iGaming sector can also make it more difficult. For example, companies are required to undertake “Know Your Customer” (KYC) checks, which are designed to prevent money laundering and other nefarious activities. It can be more difficult to do this when a customer makes a deposit using a cryptocurrency as it can be difficult to trace the source of the funds.
There are some ways that cryptocurrency enthusiasts can still use Bitcoin and other tokens whenever a casino or online poker room accepts debit cards from Visa and Mastercard. Since the majority of sites, even those that accept payments for play chips like PokerStars accept these methods, players can use cards issued by exchanges like Coinbase and Cryptopay to charge their accounts.
Payment wallets like Neteller and Skrill also allow users to deposit cryptocurrencies into their account and then make deposits to casinos and bookmakers in a fiat currency.
Some iGaming brands have been accepting cryptocurrencies via third-party services like Coinbase. This works by converting the dollar, euro or pound amount into Bitcoin at the live exchange rate, deducting this from the customer’s account, and then transferring the fiat currency to the iGaming operator.
This means they’re not exposed to the volatility while still letting their customers pay in the way they want.
While these third party operators may offer a lower risk way for casinos and sportsbook operators to accept cryptocurrencies, there is clear evidence of the reluctance in the industry to fully embrace digital money.
There are now some casinos that accept only cryptocurrencies, but this is uncommon, and most are not licensed by a regulatory body.
Given this slow rate of adoption among consumers, the third-party solutions, and the lack of appetite for risk, it seems unlikely that the iGaming industry will be embracing cryptocurrencies any time soon.
Author: Pepe Harris