Author: gsbtc

Mitsubishi Head of Business Dev: “Smart Money” is Turning to Gold as a Hedge

Central banks continue to buy gold after a summer rally that stalled as the calendar turned to fall. The latest Mitsubishi precious-metals update says many factors could sour 2020, and so therefore “smart money” is looking to gold as a hedge.

“Illustrating lingering macroeconomic concerns, the importance of diversification away from dollar assets and tail risk hedging, central banks around the world have continued to be net buyers of gold: November saw Turkey, Russia, Poland and newcomer Serbia (which bought 9 tons of gold) all add to their holdings of the yellow metal,” wrote Mitsubishi head of business development Jonathan Butler. Read More

Here’s How Goldman Sachs Private Equity Clients Prepare for Recession

Goldman Sachs’ private equity clients are bracing for a recession. “Every one of our clients is focused on being prepared for a recession,” said Alison Mass, the bank’s chairman of investment banking.

While interviewed on Bloomberg TV, Mass said the bank’s clients are creating checklists of ways in which to navigate a recession. Read More

Shipping Containers Housing Bitcoin Mining Equipment Topple During Colorado Gale

Shipping containers housing bitcoin mining machines topped over amid high winds. Those containers, which are stacked four high, fell amid high winds on Nov. 29 and 30.

“As you may know, a wall of shipping containers came crashing down at Bldg 1625 — 3G Venture II — during the high winds of this past Friday and Saturday, 29 & 30 November, 2019,” wrote Graham Becker in an email to officials with the city, Fire Department and Pikes Peak Regional Building Department. “Fortunately, as far as I know, no one was killed or injured. Very fortunate, indeed.” Read More

Top US Financial Regulators Warn Against Perils of Stablecoins

The Financial Stability Oversight Council (FSOC), which was set up in 2008 to combat risks to the financial sector after the financial crisis, believes stablecoins could cause potential problems if they gained wider use.

“If a stablecoin became widely adopted as a means of payment or store of value, disruptions to the stablecoin system could affect the wider economy,” the regulators stated in its financial report for 2019. “Financial regulators should review existing and planned digital asset arrangements and their risks, as appropriate.” Read More

Moody’s Downgrades Outlook for Global Banks

Moody’s Investors Service has downgraded the outlook for global banks. Slowing growth, low interest rates, and volatile operating conditions turned the ratings firm’s outlook on banks from stable to negative.

Trade tensions between the U.S. and China “appear entrenched, with negative consequences for banks in those countries as well as in other export-oriented economies and for banks funding trade,” Moody’s said. Read More

SEC: A Bitcoin ETF Approval Forthcoming

Dalia Blass, the director of the Division of Investment Management at the Securities and Exchange Commission, says the agency could soon approve a Bitcoin ETF.

The unlisted, closed-end interval fund will not provide daily redemptions nor be subject to considerable and unexpected liquidity demands during short periods, she commented during a keynote speech for the iCI Securities Law Development Conference. Read More

Court Upholds Nordea Bank’s Ban on Employee Bitcoin Purchases

Nordea, a Danish Bank, won a court case allowing it to prevent staff from buying Bitcoin and other cryptocurrencies.

Nordea first banned its employees from owning bitcoin in January 2018, after which Danish finance and workers’ rights figures threatened legal action. Read More

Survey: Bitcoin Mining Firm Finds Nearly One-Third of Americans Think US Dollar Backed by Gold

Genesis Mining, a cryptocurrency miner, found that one-third of Americans believe the US Dollar is still backed by gold. The dollar has not been backed by gold since 1973.

The survey, conducted in late September, included 1,000 participants. Its goal: to determine just how much U.S. citizens understood money. In late October, the miner found that 29% of those surveyed believed a gold reserve backed the U.S. dollar. 24% of respondents answered that the Federal Reserve was tasked to secure the nation’s gold reserve. Read More

China Forms Alliance to Fast-Track Blockchain Development

China’s state-backed blockchain alliances features big cryptocurrency and financial companies. One of the first name brands to join the ‘Blockchain Services Network Alliance’ (BSN) is Huobi China.

Huobi China, which is a part of global bitcoin and crypto exchange conglomerate Huobi Group, revealed its participation at the Blockchain Service Network Partner Conference.

The company’s Chinese-based operations do not include the trading of cryptocurrency. “It is not an exchange. It is a fully compliant legal entity in China doing blockchain education and blockchain solutions for large corporations, solely focused on blockchain technology, said Ciara Sun, chief of staff of Huobi Group. Read More

New Bitcoin Exchange Traded Product Launches on Switzerland ‘s SIX Stock Exchange

New York-based WisdomTree launched a new bitcoin exchange traded product (ETP) on Switzerland’s SIX stock exchange. This product, which is physically backed by crypto, will compete on SIX with Amun AG’s similarly-designed bitcoin ETP, and is settled in the underlying asset.

WisdomTree, which has provided gold-based ETPs in Europe since 2003, said its Bitcoin ETP provides investors, “a simple, secure and cost-efficient way to gain exposure to Bitcoin while utilising the best of traditional financial infrastructure and product structuring.” Under the WBTC ticker, it is listed at a total expense ratio of 0.95%. Read More

Weak U.S. Industrial Data Leads Array of Worrying Economic Indicators, Gold Remains Steady

There are several reasons experts presently warn of potential economic downturn. China’s growth has been slowing, despite recent positive reports, as the trade war wages on and geopolitical tensions increase. Among others, countries like Singapore and South Korea, who export manufactured goods to China, are slowing.

Positive economic signs do persist, with consumption remaining steady at 2%, and private residential investment increasing in the third quarter of 2019. (though this has steadily declined since the end of 2017). Despite this, business investment has begun to fall. Read More

Cryptocurrency Trading Basics

Here are some simple trading concepts as they pertain to cryptocurrency. 

Price

The ask price is totally determined by the supply (represented by the ones selling) and demand (represented by the buyers). The price (shown) is the price at which the last trade was done, it is the result of buyers and sellers interacting. When they agree to trade at a certain price, operation takes place and a new ask price is determined Read More

Bank of Russia Supports Ban on Crypto as Payment Method

The Bank of Russia supports a ban on cryptocurrency payments. The Bank says that “private cryptocurrencies cannot be equated with fiat money and cannot be legal tender.”

It added: “If it is decided to ban cryptocurrencies as a means of payment at the legislative level, we consider it appropriate to support this position.” Read More

Chair of Slovakia’s Biggest Party: U.K. “Can Hardly” Be Trusted with Nation’s Gold

Slovakia’s former premier told parliament it should force the central bank to repatriate the nation’s gold, which is stored in the U.K. He said history has shown that allies “can hardly” be trusted.

Ex-Premier Robert Fico now chairs the biggest party in Slovakia. He seeks a special parliamentary session on the issue, claiming the gold isn’t safe in the U.K. because of Brexit and a possible global economic crisis. Read More

Gold Price Declines Monday Due to Bullish Factory Reports Out of China

Gold prices declined Monday with investors turning to other asset classes after reports of an expanding Chinese factory sector and a rising dollar reduced demand.

Spot gold fell 0.3% at $1,459.94 per ounce at 0645 GMT. Prices had earlier reached highs dating back to Nov. 22. U.S. gold futures declined 0/5% to $1,466.

An expansion in factory activity during November in China, which ranks as the world’s second largest economy and biggest consumer of gold, led investors into equity markets. Read More

Ethereum Foundation Researcher Spoke at a North Korea Cryptocurrency Conference. The U.S. Arrested Him.

Federal prosecutors accused Virgil Griffith, a research scientist at the Ethereum Foundation , of helping North Korea evade US sanctions. Formally charged with violating the International Emergency Economic Powers Act, Griffith faces up to 20 years in prison. He allegedly attended the conference after the U.S. government refused him permission to go. Read More

German Bundestag Approves New Law So Banks Can Sell And Custody Bitcoin

German banks will begin to offer the sale and storage of cryptocurrencies under new legislation. The banks had been barred from offering direct access to crypto assets.

The new law, which was written in the fourth EU Money Laundering Directive, rewrites this starting in 2020. Reported by Handelsblatt on Wednesday, the German federal parliament, the Bundestag, passed the bill, which will likely be signed by the nation’s sixteen states. Read More

How Bad is Bitcoin Mining for the Environment? New Research Suggests Not So Bad.

Bitcoin mining emissions were on par with Estonia, suggesting that the climate change impact of the first digital asset is less than previously reported. Furthermore, the research seems to suggest that where Bitcoin is mined contributes to how much carbon Bitcoin emits. With so much of the mining being done in China, one might wonder if that country’s infrastructure is more to blame than Bitcoin. Read More

High-End Finance Jobs Will Be Displaced By AI, Too

Artificial intelligence is not just coming for the jobs of barbers and baristas. It is coming for high-paid professions, too. Even financial professionals could see increasing pressure from technology, too.

According to a recent Brookings Institution report, white-collar jobs and occupations requiring higher education, as well as production workers, will see their jobs eaten by AI.  The report uses a new analysis of patent data by Stanford University graduate student Michael Webb. Read More

An Interview with Steve Bellotti, Chairman of TCM Capital, An Advisor on The Perth Mint Gold Token

As we covered here, The Perth Mint Gold Token could prove to be an alternative to U.S. dollar-based stablecoins, such as Tether. While Tether is backed by dollars in a U.S. bank account, the Perth Mint gold token is backed by gold held by one of the most renowned precious metals refineries in the world.

GoldSilverBitcoin fielded answers about the Perth Mint Gold Token from the Chairman of TCM Capital, Steve Bellotti. TCM Capital AM Pty Ltd is the Advisor to the PMGT project. Read More

Poland Repatriates 100 Tons of Gold from Bank of England

Poland repatriated approximately 100 tons of gold from the Bank of England to demonstrate the strength of the nation’s $586 billion economy, according to central bank Governor Adam Glapinski.

The institution also brought 126 tons home in 2018 and 2019, increasing its gold reserves to 228.6 tons. The country is now the 22nd largest bullion holder in the world and holds the biggest reserves of the metal in the European Union’s east, according to the central bank. Read More

Goldman Sachs Bullish on Gold for 2020

Goldman Sachs has a bullish outlook on gold. Analysts at the investment bank see prices pushing to $1,600 an ounce next year. The price of gold currently sits at $1459.62. That is a nearly 10% gain from present day prices. December gold futures are trading at about $1,456.70 an ounce. Read More

Bitcoin Price Falls to Lowest Level Since May

The Bitcoin price fell to $6,558.14 on Monday before rebounding on Tuesday. Now at its lowest level since May, Bitcoin has lost $3,000 in value one month after China cracked down on businesses involved in cryptocurrency operations. Bitcoin is currently trading at $7,222.12.

Bitcoin increased in price to $10,000 last month after Chinese President Xi Jinping spoke highly of blockchain technology, though there were no indications he included cryptocurrencies in that sentiment. Read More

Global Debt Remains At Record High

Global debt will reach more than $255 trillion, according to the Institute of International Finance. Nearly $32,500 for each for the 7.7 billion people on the planet.

At the end of their report, economists warned that “high debt burdens could curb efforts to tackle climate risk.”

The IIF reported: “Global climate finance flows remain far short of what’s needed for an effective transition to a low-carbon economy.” Read More

You Can Now Bank with Metropolitan Bank with Crypto Banking App Cashaa

U.K.-based Cashaa, a cryptocurrency banking platform, has launched bank accounts for U.S.-based crypto firms in U.S. dollars.

Cashaa is offering the accounts through a partnership with Metropolitan Commercial Bank, which saw a more than 300-percent increase, year-on-year, in its non-interest income. Metropolitan Commercial Bank, which is headquartered in New York City, is a full-service commercial bank with banking centers in Manhattan, Boro Park Brooklyn and Great Neck, Long Island. Read More

Royal Bank of Canada Might Not Be Pursuing a Crypto Exchange, But It Ranks Among Enterprise Blockchain Leaders

It had been reported that The Royal Bank of Canada (RBC) –– the country’s largest bank at more than $965 billion in total assets –– might launch a cryptocurrency trading platform. But, those reports turned out to not be true. With that said, according to Forbes, RBC is leading in enterprise blockchain research.

“Like many other organizations, files patent applications to ensure proprietary ideas and concepts are protected,” RBC spokesperson Jean Francois had told The Logic, before CoinDesk published an update clarifying that RBC had no plans to launch an exchange. Read More

Here’s What You Need to Know About INFINIGOLD & The Perth Mint Gold Token

Last month, Infinigold announced the launch of a digital token, The Perth Mint Gold Token, backed by gold stored in the vaults of Australia’s Perth Mint, a world-leading precious metal refinery. We spoke with Andreas Ruf, the CEO of Infinigold, about working with Perth Mint to launch the token. Read More

Trump Official: Tariff Rollback Rumor Started By “Propagandists Within the Chinese Government”

Beijing and Washington won’t be reducing some punitive tariffs on each other’s goods – at least according to the Trump White House. Talks on the trade war, it would seem, are not progressing as promisingly as reports indicated.

Reports surfaced that a new agreement originated during discussions to iron out a “Phase 1” deal between the two countries. A “phased cancellation” of tariff hikes were agreed to in the event of progressing trade talks, according to the Commerce Ministry spokesman, Gao Feng. Read More

If We Were to Have a Global Digital Currency in the next 5-10 years, Who Would Control It?

350 Bankers and financial industry professionals think the United States will be the first to create a global digital currency – not China.

37% of attendees of the ACAMS anti-money laundering (AML) and financial crime conference, when asked by Chainalysis, said they believe the U.S. would be the first to launch the first worldwide digital currency over the next five to ten years. Read More

Moody’s: The Financial Crisis Traumatized Millennials and Made Them Unhealthy

The poor health of millennials could put a damper on the U.S. economy, according to Moody’s. It is more common for millennials, who are born between 1981 and 1996, to suffer from hypertension, high cholesterol, depression, and hyperactivity than their Generation X counterparts at the same point in their lives.

Moody’s Analytics found the data in a report by Blue Cross Blue Shield, concluding that by the year 2027 health costs for young adults could be 33% higher than they were for Generation X at the same page. This could lead to lower wages, Moody’s argues. Read More

Treasury Secretary Steve Mnuchin, Former Goldman Sachs Executive Says Obama-Era Tax Cuts Are Obsolete

Treasury Department officials are reportedly rolling back a tax rule issued under former president Barack Obama’s administration. The rule sought to prevent American companies from moving money offshore in an effort to avoid US taxes.

The Treasury issued final regulations that eliminated documentation requirements dating back to Obama. The department will propose regulations in the future changing other parts of the offshore tax rules. Read More

Here’s Why Bitcoin Hasn’t Been Regulated Into Oblivion, According to Facebook’s Calibre Head

David Marcus is leading up Calibre, Facebook’s cryptocurrency project. As reported by CNBC, he said Wednesday that Bitcoin is digital gold, and not a good currency for transactions.

“I don’t think of Bitcoin as a currency,” Marcus told an audience at the New York Times DealBook Conference in New York. “It’s actually not a great medium of exchange because of its volatility. I see it as digital gold.” Read More

Chinese Bitcoin Miners Get Reprieve from CCP

China’s National Development and Reform Commission (NDRC) has removed crypto mining activities as an unwanted industry from its Industrial Structure Adjustment Guidance Catalog.

China has long been a mining leader in the crypto industry. As a world leader in computer hardware generally, the country was in a unique position to take lead the way when it came to mining bitcoin and other cryptocurrencies. As in most hardware-intensive industries, the lion’s share of cryptocurrency mining hardware comes from China. Read More

Is This The End of ‘One Country, Two Systems’ Between China & Hong Kong?

One Country, One System?

China could change its “one country, two systems” arrangement that has been in place since 1997. The agreement stipulates that the United States is legally bound to treat Hong Kong separately from mainland China for matters concerning trade and economic policy. With troops from the mainland at the border of Hong Kong, the protests and trade war could escalate. Read More

Perth Mint Gold Digital Token Could Be an Alternative to Stablecoins

InfiniGold is collaborating with the Perth Mint, the world’s largest refiner of newly minted gold, to release the digital token Perth Mint Gold Token (PMGT), which is backed 1:1 by GoldPass certificates issued by the Perth Mint. It could be an alternative to current stablecoins, especially Tether, which is backed by the US dollar. PMGT gives users ownership of government-guaranteed gold stored at The Perth Mint. The Mint touts benefits like real-time trading and settlement thanks to blockchain. Read More

Where’s All The Institutional Demand for Bitcoin Futures?

Bakkt futures and custodial exchange traded 50 BTC (~$400,000) in daily futures contracts during its second week of trading, a significant decline from its opening week, as reported by WSJ.

$5.8 million was traded on Bakkt, which was created by the Intercontinental Exchange, during its first week. The following week traders moved but $2 million. That is just $400,000 daily trading volume. Read More

Free to Trade: Charles Schwab, TD Ameritrade, and E-Trade Eliminate Commissions

Last week, almost every major online brokerage company – including Charles Schwab (SCHW), TD Ameritrade (AMTD) and E-Trade (ETFC) – stopped charging commissions, making it free to trade.

“For every broker out there, trying to sell services with explicit fees is going to be almost impossible. The next frontier will be centered around providing more financial well-being solutions — expanding beyond just brokerage products,” said Bill Capuzzi, CEO of Apex Clearing, a custodian of securities on behalf of brokerage firms. Read More

Centrals Banks Issuing Digital Currency is Inevitable, says Federal Reserve President

Philadelphia Federal Reserve Bank President Patrick Harker said on Wednesday it is “inevitable” that central banks will issue digital currency. He also said the United States should not be the nation to lead such a move. He had been asked about the Fed’s creation of “FedNow,” its own real-time payments system. The comments were first reported by Reuters.

“Frankly I don’t think we should be the first mover as a nation to do this,” Harker said at a St. Louis community banking conference. He noted the dollar’s status as world reserve currency and underscored the need for experimentation and tests when it comes to such technology. Read More

Japanese Bitcoin Exchange Suffers $32 Million Hack

A Bitcoin exchange in Tokyo halted services on July 12 and announced a major hack. Bitpoint, a Japan-based and licensed cryptocurrency exchange, was hacked for $32 million or $3.5 billion yen. Customers received an email alerting them to the fact that Bitpoint would cease all services while it investigates. Read More

Max Keiser: Bitcoin is a Risk-off Store of Value Safehaven

(GSB) GoldSilverBitcoin CEO Justin O’Connell interviewed Max Keiser briefly at Bitcoin 2019, a conference in San Francisco hosted by Bitcoin Magazine.

What is surprising, novel, ironic or controversial about Bitcoin in Q2 2019?

MK: I think it’s the recognition now by mainstream analysts and media that bitcoin represents a store of value. I think that story, which we’ve been talking about for years, seemed ludicrous a few years ago. But, more and more on the institutional level they’re getting to understand that this does represent a risk-off store of value safe haven. Read More

Bitcoin is Near $10,000

Bitcoin is poised to move beyond $10,000. At the time of writing, it currently sits at $9,922, and has already surpassed $10,000 on Chinese exchanges. Its record high is $19,666. Bitcoin is currently at its highest price since May 2018.

Bitcoin has tested the technical resistance set in April 2018 of $9,949, and the psychological resistance of $10,000 is next. Since April 1, Bitcoin is up 140 percent. Read More

How the Facebook Libra Announcement Affected Shares of Western Union, MoneyGram, PayPal & Square

Western Union shares declined Tuesday amid the Facebook announcement of its new cryptocurrency, Libra, which is supposed to be integrated with Facebook, and its subsidiary apps Instagram, WhatsApp, and more. Western Union, a legacy consumer-to-consumer money sending platform was among the worst performers on the S&P Index on Tuesday, as it fell 2.4%. It closed at $19.57 a share.

Facebook’s cryptocurrency Libra is supported by a legion of well-known companies from both within the crypto industry and outside of it, including payment companies like Visa, Mastercard and PayPal. Blockchain companies involve Coinbase, Xapo and others. The cryptocurrency is expected to launch in the first half of 2020. Read More

25 Lessons From Former Navy SEALs

We did some research on what Navy SEALs are saying about getting after it in real life. Let’s just dig right in.

  1. Common sense won’t work anymore

“Our fathers before us lived in a much less dynamic and competitive time than we do,” writes Former U.S. Navy SEAL Eric Davis for The Epoch Times. “In today’s world, using the simplistic and common sense strategies that were handed down to us is like trying to bring a sword and shield to the modern battlefield. It just isn’t going to work anymore. Read More

A “Digital Iron Curtain” Could Lead to “Real War” Between China and the U.S.

Huawei, the Chinese telecommunications giant the U.S. government fears could be used by the Chinese government to spy and sabotage infrastructure, is a crucial contributor to the development of fifth-generation (5G) mobile networks worldwide. Yet, Washington’s fear led the Commerce Department to add Huawei to its “entity list” in May 2019, forbidding Huawei to buy U.S. goods without permission from the government.

Huawei, which is the world’s biggest seller of telecommunications equipment like new 5G network infrastructure and second-largest smartphone maker, is based in Shenzhen, China. It helps connectivity in some rural areas in the US. Read More

Everything You Need to Know about Binance and its Formal Entry into the US

Binance, the world’s largest cryptocurrency exchange, announced that starting in September it will disallow U.S. residents from using its flagship exchange. Instead, it will launch a U.S.-based service, called Binance US, where U.S. passport holders will face restrictions when using the website.

Binance has been known for letting anyone use its services to trade tokens. The Malta-based exchange will partner with Bam Trading Services, a FinCEN-registered company with links to Binance-backed Koi Compliance, the “fully-managed solutions” department of over-the-counter (OTC) crypto trader Koi Trading. Binance Labs invested $3 million in Koi Trading on January 24. Read More

Ship Attacks in Gulf of Oman, Which US Blamed on Iran, Have Had Little Impact on Oil Prices

Despite increased tensions in the Middle East between the Iranian Republic and the U.S. over attacks on two ships in the Strait of Hormuz, crude oil was down for the week. President Donald Trump said that Iran was behind attacks on two fuel tankers in the Gulf of Oman.

“It was them that did it,” Trump said on Fox. “We will see what happens. We are being very tough on sanctions … We’re going to see how to stop (it),” Trump said, before claiming that because of his policies “they are pulling back from everywhere.”

The President did not outline his plans for a response, and neither did Secretary of State Mike Pompeo, who cited intelligence, the weapons that were used, and the sophistication of the attack as evidence for Iran’s involvement in the assault against “freedom-loving nations.” Read More

This Crypto Trader is Keeping Her Eye on Bitcoin ETFs, Futures and Institutional Interest

Crypto Wendy, who is keeping her eye on Bitcoin ETFs, futures and institutional interest in the crypto market these days, wants you to know that she is no trading expert.

“…I am here to learn and grow with everyone,” she says.

She started out in the space as a trader and hosting free meetups at Cryptospace in San Pedro, teaching and talking about basic trading methods. Three times a week, she does a live stream and discusses news and current events that impact the market on her YouTube channel. She believes we’ve seen the bottom in the crypto market for now. Read More

Protests in Hong Kong, Uncertainty in Asia’s Markets

Tens of thousands of young people – for the most part –  descended upon Hong Kong’s government headquarters on Wednesday, and police fired tear gas and rubber bullets back. The debate was over a controversial bill, allowing fugitives to be extradited to China and other jurisdictions with which Hong Kong has no rendition agreement. Read More

Bitcoin User from Iran: “Bitcoin is the Only Option We Have”

Ziya Sadr spoke with Let’s Talk Bitcoin, a cryptocurrency podcast, about the importance of Bitcoin in Iran. He discussed how it allows great financial freedom for the Iranian people, and how Bitcoin is superior to other cryptocurrencies in Iran.

“The thing about bitcoin is that we are on equal ground with the rest of the world and that is nice for a change,” Mr. Sadr, who is 25 years old, told the long-serving podcast. “We’ve never been on equal ground. We’ve had inflation, we’ve been sanctioned by the whole world. With Bitcoin, we are on equal ground with the rest of the world and this is kind of new.” Read More

Jim Rogers: “Cryptocurrencies are Going to Disappear and Go to Nothing.” The Reason Why Might Shock You.

Jim Rogers believes governments will interfere with the rise of bitcoin and cryptocurrency, but not blockchain.

“The blockchain has a great future,” the famous investor told BBLOKK OFFICIAL. “Blockchain is changing everything we know, and it’s going to change even more. A lot of people are going to lose their job because of blockchain, but a lot of people lost jobs because of electricity, and electricity turned out to be a good thing for all of us; likewise with blockchain.” Read More