Bitcoin Price Rises in Tandem With Central Banks’ Balance Sheets — Data

Bitcoin Price Rises in Tandem With Central Banks’ Balance Sheets — Data

Charts show a pleasing correlation between central bank Coronavirus fallout and Bitcoin returns, with anticipation building around an investor influx.

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Bitcoin (BTC) is becoming investors’ favored escape from fiat misery and punitive economic policy — and central banks are only helping.

In a tweet on Aug. 11, popular commentator Holger Zschaepitz described Bitcoin as the “new darling” for those seeking shelter from hurdles such as negative interest rates.

Bitcoin primed to become “fastest horse”

The past few months have seen the United States Federal Reserve, in particular, intervene in traditional markets, buying huge swathes of control at a cost of trillions of dollars added to its balance sheet.

As the money printing expanded, so did Bitcoin’s value, Zschaepitz noted.

“Bitcoin is the new darling among investors in time of negative real rates and as the price of cryptocurrency follows the combined balance sheet of Central Banks,” he summarized.

Zschaepitz linked to favorable Bitcoin exposure in German mass media outlet Die Welt, which highlighted belief in Bitcoin over gold and silver by Robert Kiyosaki, author of “Rich Dad Poor Dad.”

Kiyosaki is famous for his Bitcoin support, continuing elsewhere last week as the largest cryptocurrency topped $12,000.

“GOLD is up 35% in 2020. S&P only 3%. Silver is still the best, still 30% below all time high. Best because it is limited in quantity, used in industry and still affordable for those with tight budgets,” he tweeted

“The sleeper is Bitcoin. I suspect it is about to become the fastest horse.”

Central banks’ balance sheet versus BTC/USD

Central banks’ balance sheet versus BTC/USD. Source: Holger Zschaepitz/ Twitter

Last week, Raoul Pal, CEO and founder of Real Vision, highlighted that Bitcoin was the only asset to outperform central bank balance sheet rises.

Fed keeps 3% “junk” bonds

The relationship with ballooning central bank debt thus shows Bitcoin delivering on its original premise — to shield users from risk engineered by the parties in control of the currency.

As Cointelegraph has often reported, the release of the Bitcoin whitepaper coincided with a now-infamous article in the United Kingdom newspaper, The Times, which contained a front-page headline “Chancellor on Brink of Second Bailout for Banks.”

Meanwhile, data from the U.S. Fed underscores the extent of this year’s interventions — at present, a staggering 3% of its corporate bond holdings are rated “BB,” commonly known as “junk” status.

The numbers form part of the Fed’s Coronavirus response package, which has itself come under repeated heavy criticism from pro-Bitcoin parties. Among them is RT host, Max Keiser, who has accused the U.S. of returning the country to a state reminiscent of the Middle Ages, something he calls “neo-feudalism.”


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Charts show a pleasing correlation between central bank Coronavirus fallout and Bitcoin returns, with anticipation building around an investor influx.

Bitcoin’s Price Moves in Tandem With S&P 500, says Tom Lee

Bitcoin’s Price Moves in Tandem With S&P 500, says Tom Lee

Bitcoin is positively correlated with the S&P 500 and is not a hedge against macro turmoil, according to Fundstrat Global Advisors co-founder Tom Lee

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Fundstrat Global Advisors co-founder Tom Lee has stated that Bitcoin (BTC) is positively correlated with the S&P 500 market index and is not a hedge against macro turmoil.

Lee voiced his opinion during an interview with industry news outlet The Block published on Oct. 1.

Bitcoin moves according to macro factors

During the interview, Lee admitted that his opinion is unpopular given that many believe Bitcoin to be a hedge against macroeconomic turmoil. That being said, while he agrees that some crises can have a positive influence on Bitcoin’s price — citing the crisis that took place in Cyprus — overall, he is confident that BTC operates in accordance with macro factors, not against them. Lee stated:

“If I had to say Bitcoin’s a macro hedge then I would say that the evidence should mechanically show bitcoin price does best when the S&P has a bad year. Let me give you the evidence in the years when the S&P has been down since bitcoin’s inception — bitcoin has averaged a negative 19% annual return.”

Bitcoin is up when the S&P 500 is up

Lee also noted that in the years during which the S&P index was below its long-term average return — Bitcoin’s average gain was 300%. At the same time, in the years that have seen the index gaining 15% or more — BTC’s average gain was 1,800%. Lee concluded:

“Bitcoin’s best years have all taken place in the years where the S&P has performed very well.”

Lee’s stance is in contrast with the ideas expressed by the CEO of crypto payments firm Circle, Jeremy Allaire, who suggested at the beginning of August that macroeconomic turmoil is responsible for the growth that Bitcoin has seen at the time.


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Bitcoin is positively correlated with the S&P 500 and is not a hedge against macro turmoil, according to Fundstrat Global Advisors co-founder Tom Lee

Share Internet Data Launches Banking App in Tandem With LDJ Capital

Share Internet Data Launches Banking App in Tandem With LDJ Capital

Internet crowdsourcing company Share Internet Data has launched a banking app in an effort to provide free service to the unbanked

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Internet crowdsourcing company Share Internet Data Ltd (SID) has partnered with private equity firm LDJ Capital to launch a blockchain-based digital banking solution. The new digital banking app is called LDJ Digital, according to a press release on July 16.

According to the announcement, LDG Digital can function as a debit card and it supports both fiat money and cryptocurrencies. Moreover, the professed goal of LDJ Digital is to provide banking services to the unbanked, as per the report.

LDJ Digital will reportedly be a part of the existing SID platform and is based on its core technologies and principles. The SID and blockchain technology underpinning LDJ Digital will purportedly make banking accessible and affordable for the unbanked, the press release says.

SID reportedly allows users to provide Internet to other users via its mobile app, somewhat like a mobile hotspot. However, SID users do not have to acquire a password in order to gain hotspot access; instead, the app automatically generates a one-time-use password when SID users are in proximity of one-another. 

As per its website, SID has completed an Initial Token Offering and uses blockchain-based contracts to trade tokens in exchange for Internet usage.

LDJ Digital CEO Jose Merino commented that financial inclusion is a natural upshot of a free Internet ecosystem:

„Free access to the internet opens the floodgates of access to a host of other global resources. Financial inclusion is one of logical results of this. The SID ecosystem is setup to support a robust community that embraces educational, social, and financial inclusion among others.“

As previously reported by Cointelegraph, Napster creator Shawn Fanning’s company Helium performed a limited launch of the company’s Internet of Things (IoT) hotspot devices in June. This project also aimed to create a decentralized Internet ecosystem, and further intended to provide an array of use cases harnessing the devices’ sensing mechanisms. Use cases included tracking pets and preventing bike theft via location-detecting sensors.


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Internet crowdsourcing company Share Internet Data has launched a banking app in an effort to provide free service to the unbanked