Category Archive : GSB daily blog

Bitcoinomics, Chapter 15: Bitcoin Trading Price Analysis

[heading]Bitcoinomics, Chapter 15: Bitcoin Trading Analysis[/heading]

“Bitcoin is the most important invention in the history of the world since the Internet.” – Roger Ver Read More

Bitcoinomics, Chapter 14: “Varying Levels Of Bitcoin Legality”

[heading]Bitcoinomics, Chapter 14: “Varying Levels Of Legality”[/heading]

“The Bretton Woods Monetary System Is Much More Dangerous Than Bitcoin.” – Jeff Berwick, The Dollar Vigilante

“It is not so simple to answer the question ‘Is Bitcoin legal?’

Read More

Bitcoinomics, Chapter 13: Hacking Bitcoin

[heading]Hacking Bitcoin[/heading]

In the Bitcoin network’s transaction database, the original entry has a note by Nakamoto that reads as: 

“The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”  Read More

5 Reasons Why Bitcoin Is Not Anonymous

[heading]5 Reasons Why Bitcoin Is Not Anonymous[/heading]

Last Monday the DHS was sent a letter from the US Senate Committee on Homeland Security and Governmental Affairs asking for “any information, plans or strategies on how it currently plans to treat virtual currencies, including Bitcoin.

Posted on the Committee’s website, the letter explains the attractiveness of the currency for investors and entrepreneurs with its potential for profit and quick payment solutions. But it also warns that its “near anonymous and decentralized nature has also attracted criminals who value few things more than being allowed to operate in the shadows.” Read More

Bitcoinomics, Chapter 12: Bitcoin Mining

[heading]Bitcoinomics, Chapter 12: Bitcoin Mining[/heading]

“I am pretty confident we are the new wealthy elite, gentlemen.” – Atlas Read More

Bitcoinomics, Chap. 11: The Future Of Money & Property Or The Gospel Of Layers

[heading]Bitcoinomics Chapter 11. The Future of Money & Property or the Gospel Of Layers[/heading] Read More

Germany Recognizes Bitcoin As “Private Money”

[heading]Germany Recognizes Bitcoin As “Private Money”[/heading]

Is Bitcoin legitimate? Is Bitcoin illegitimate? This is something for individuals to decide, not countries. But, what does it mean that country’s are adapting to decentralized currencies, and what effectiveness will they show in the long term? Only time will tell.

Bitcoin’s legitimacy continues to be asserted as yet another government has gone so far as to give the decentralized virtual currency “private money” status.

Germany has recognized Bitcoin for legal and tax purposes, meaning it is the first country to take an official stance on the status of using the online currency as money. Read More

Bitcoinomics, Chap. 10: Bitcoin Uses

[heading]Bitcoinomics, Chap. 10: Bitcoin Uses[/heading]

“Right now Bitcoin feels like the Internet before the browser.” – Wences Casares, Technology Entrepreneur

Read More

Bitcoin To Replace Pennies & Nickels?

[heading]Bitcoin To Replace Pennies & Nickels?[/heading]

In this month’s edition of Futurist magazine, an article asked experts what they did not expect to be around in thirty years. One individual in particular, Virginia Holbert, responded:

 “pennies and other coins are becoming less useful, as parking meters, tolls, and public transits use smartcards and RFID technologies to streamline payment. Presumably by 2030 we will also see widespread acceptance of virtual currencies such as Bitcoin.”

Read More

Bitcoinomics, Chap. 9: Responsibility & Bitcoin

[heading]Bitcoinomics: Responsibility and Bitcoin[/heading]

“There are 3 eras of currency: Commodity based, politically based, and now, math based.” –  Chris Dixon, Technology Investor  Read More

Facebook Entering PayPal’s Payment Processing Turf

[heading]Facebook Entering PayPal’s Payment Processing Turf[/heading]

With Facebook looking at PayPal as possible new competition, the social media behemoth is look beyond the obvious solution in front of their eyes: their use of Bitcoin.

Instead, Facebook will still with the old electronic method of payment – the credit card – despite mounting evidence that a new era of virtual currencies is upon us.

Facebook will be testing a new payment product that would enable online shoppers to make purchases on mobile apps using their Facebook login information, according to sources familiar with the company’s plans. Read More

A Silver Lining In Golden Opportunities?

[heading]A Silver Lining In Golden Opportunities?[/heading]

 

“Bulls don’t read. Bears read financial history. As markets fall to bits, the bears dust off the Dutch tulip mania of 1637, the Banque Royal of 1719-20, the railway speculation of the 1840s, the great crash of 1929.”  – James Buchanan

 

Saving money reduces stress. It gives us the cushioning we need to make the decisions we want to make.  Many investment advisers will impart that most of their time is spent telling people where not to put their money. Why the emphasis on this? Read More

Bitcoinomics, Chap. 8: Using Bitcoin In Business

[heading]Bitcoinomics, Chap. 8 Using Bitcoin In Business[/heading]

“[Bitcoin is] very attractive to the libertarian viewpoint if we can explain it properly. I’m better with code than with words though.” – Satoshi Nakamoto Read More

Where Broken Dreams Reside: The End Of Gold’s Bull Market & The $70 Trillion Debt

[heading]Where Broken Dreams Reside: The End Of Gold’s Bull Market & The $70 Trillion Debt[/heading]

“The gigantic, decade-long rally I don’t think will be repeated, at least in my lifetime,” said Michael Aronstein, 60, president of Marketfield Asset Management LLC, which manages more than $13 billion in New York. Aronstein predicted the 2008 slump in commodities prices and the 2009 rebound.

Yet, the demand of goldbugs remains stalwart indeed. How can one argue with a metal that has kept the attention of humans since it was fashioned into decorative objects and jewelry on the coast of the Black Sea 6,000 years ago?

In mainstream press epistemes, however, the gold bull market is over. Read More

Bitcoinomics, Chapter 7: Getting Started With Bitcoin

[heading]Bitcoinomics, Chapter 7: Getting Started With Bitcoin[/heading]


“Bitcoin is the beginning of something great: a currency without a government, something necessary and imperative. But I am not familiar with the specific product to assert whether it is the best potential setup. And we need a long time to establish confidence. I only talk from skin-in-the-game. If I had money in bitcoin, I would have reported it. But I don’t yet. I am waiting to understand it better, not with my brain, but with my experience…” – Nassim Taleb Read More

5 Things Silverbugs Could Learn From Bitcoiners

banneradsensebitcoinomics

[heading]5 Things Silverbugs Could Learn From Bitcoiners[/heading]

Amongst goldbugs and silverbugs there was at first a deep-seated skepticism of Bitcoin. A virtual currency? Backed by nothing?? Read More

Bitcoinomics, Chapter 6: The Bitcoin Market

[heading]Bitcoinomics, Chapter 6: The Market[/heading]

“I am getting less and less sympathetic to individuals who refuse to upgrade their payment methods.” – Trace Mayer  Read More

Could Gold Still Hit $1,600 By Year’s End?

[heading]Could Gold Still Hit $1,600 By Year’s End[/heading]

More and more people all the time are allocating increasing amounts of their financial portfolios into precious metals, in particular gold.

Many see it as a great time to buy, what with gold down 20% YTD.  This year large institutions have been selling gold and silver, while individuals are holding and retail demand strong. But, as of July, this started to change: demand began outpacing supply. Read More

16 Reasons Why Silver Is Still An Investment Of A Lifetime

[heading]16 Reasons Why Silver Is Still An Investment Of A Lifetime[/heading]

Forget silver. It’s not going anywhere. After all, it hasn’t for two years!

Since silver bullion tested the critical $50 psychological level, a two+ year consolidation period has left sentiment at an all-time low. While the mainstream was once enamored with silver bullion, since April 2011 the mainstream has gone quiet.

But, rest assured, there are still a myriad reasons why silver is a great investment, and here are 20 of them. Read More

Bitcoinomics, Chapter 5: Bitcoin Fundamentals

[heading]Bitcoinomics, Chapter 5: Bitcoin Fundamentals[/heading]

“It seems to me that simple altruism can suffice to keep the > network running properly.” – Satoshi Nakamoto Read More

Bitcoinomics Chapter 4, Historical Precedents For Bitcoin

[heading]Bitcoinomics Chapter 4, Historical Precedents For Bitcoin[/heading]

“A new scientific truth does not triumph by convincing opponents and making them see the light, but rather because its opponents eventually die, and a new generation grows up that is familiar with it.”  – Max Planck Read More

Bitcoinomics, Chapter 3: What is Bitcoin?

[heading]3. What is Bitcoin?[/heading]

“Yes, [we will not find a solution to political problems in cryptography,] but we can win a major battle in the arms race and gain a new territory of freedom for several years. Governments are good at cutting off the heads of a centrally controlled networks like Napster, but pure P2P networks like Gnutella and Tor seem to be holding their own.” – Satoshi Nakamoto Read More

Weak Dollar, Weak Precious Metals, Where Is One To Turn?

A dollar near its seven month low, and still precious metals – namely gold and silver – are wet rags.

The consternation of silver investors who went all-in whilst silver was 1000% since 2005 is tangible when the market sits at an all-time high and silver is the years’ worst performer. Read More

Bitcoinomics, Chapter 2: Who Is Bitcoin?

2. Who is Bitcoin?

“Can you bootstrap a currency when it’s doing this crazy price fluctuation thing as people become interested and then become not interested? That’s an open question, … I don’t know if we have any baby currencies we can point to and say, ‘This is the model you should follow’ or ‘This is the model that worked.’ Definitely experimenting here.” – Gavin Andresen Read More

FBI Investigation Of Mysterious Trading Turns Up Holes In System Protecting Economic Data

[heading]FBI Investigation Of Mysterious Trading Turns Up Holes In System Protecting Economic Data[/heading]

The avenues to trade on inside information are a multifarious set to choose from.

Wherever you turn, if you have the right connections, a whirlwind of classified data go across the desks of those with whom you have the chance to  schmooze, either with camaraderie or bribes. Read More

Bitcoin Book

Bitcoin Book

Read More

The Timely New Science Of Spending: Experiences>Commodities

[heading]The Timely New Science of Spending: Experiences>Commodities[/heading]

Former Regulatory Czar for President Obama urges YOU to vacation.

Wait…what?

In a new article, the Havard professor and former Regulator Czar Cass Sunstein lays out why experiences, in some ways, are actually more tangible than commodities. Read More

What Three Things Do Rich People Wish They Did More Of?

[heading]What Three Things Do Rich People Wish They Did More Of?[/heading]

You’re keeping up with the Joneses. Or, rather, you’re trying to keep up with the Joneses.

But, it’s tough. What are their secrets? How did they get so rich? More importantly, how did they get rich and stay rich? For many, staying rich proves to be an even harder task than accumulating wealth in the first place. Read More

World Gold Council: Ben Bernanke Does Not Control Gold Prices

This just in? Ben Bernanke DOES NOT control the gold price. But…that does not mean supply/demand does either…

The World Gold Council has posited in a research paper entitled “Gold and the US interest rates: a reality check” that perhaps Ben Bernanke does not hold as much sway over the gold price as many believe. Read More

Silver Membranes Of The Future: Electronics, Solar & Buying Silver In The Future

[heading]Silver Membranes Of The Future: Electronics, Solar & Buying Silver In The Future[/heading]

The silver market is metastasizing in myriad ways daily in this vibrant day-and-age. With such a vibrant way of life today, there is no wonder that a metal that has been considered money throughout history AND functions as a basis for technological progress has caught the imagination of so many. Read More

From 177,777 Bitcoins Per Platinum Ounce To 6 In T- 4 Years

[heading]Buy Platinum With Bitcoin:From 177,777 Bitcoins Per Platinum Ounce To 6 In T- 4 Years[/heading]

If Homer Simpson were a platinum buyer and not a fat middle class American, AND if Homer knew about Bitcoin, this trade would be a definite: “Doh!”  Wherefore? Read More

JPMorgan Out Of Silver Manipulation Business, CitiGroup In

An apparent off-the-whim “internal review” has led JPMorgan to want OUT of the commodities market.  After years of protested silver manipulation, could this be the end? Is silver set to increase in price now that “the Morgue” is out of the picture?

One thing is for sure, some silverbugs are rejoicing. Others want to know the truth of JPMorgan’s silver position.

The message telegraphed to mainstream media, alternative media and blogs around the globe is that JPMorgan will no longer be able to manipulate silver, because they are getting out after much issue has been taken with their positions. They’ve gotten out gold and made headlines for their oligopoly over commodity warehousing. Another probe has been threatened, and an era has ended. Or has it?

jpmorgan

JP Morgan is “fully committed to traditional banking activities,” but they are looking to sell, spin or ally with strategic partners to shed the position.  Many assume that “physical commodities” means the company’s extensive inventories of tungsten and lesser gold and silver.

Just recently, JPMorgan was manipulating beer prices.

Since Fall-Winter of last year, we have heard much news – coming out of sources like Bix Weir – that Citigroup has entered the commodities market.

Listen to Bix Weir predict the future of silver at SilverVigilante:


On November 1 Jose Cogolludo joined the corporate sales office at Citi with years of experience in commodities sales at JPMorgan and Goldman Sachs before that. The entrance of Citi into commodities, with their office based in London, is  a new position as of last Fall and includes “all commodity products with corporate clients across the world.”

“I am delighted and proud to join Citi, where our client franchise is unrivaled by other institutions, in particular in emerging markets. Our plan is to systematically provide a full range of risk management products to Citi’s global client base, to better integrate our product offering with the rest of the organization, and to strengthen our position as a leading actor in the commodities space,” he said.silverbull

“With these important additions to our sales team, we have made significant strides in strengthening our commodities platform and connecting our complete suite of commodity products with a wider range of the bank’s clients than ever before,” said Stuart Staley, global head of commodities.

What, perhaps, has Citi inherited from JPMorgan? In JPMorgan’s own words:

 

Following the internal review, J.P. Morgan has also reaffirmed that it will remain fully committed to its traditional banking activities in the commodity markets, including financial derivatives and the vaulting and trading of precious metals. The firm will continue to make markets, provide liquidity and offer advice to global companies and institutions that have, for years, relied on J.P. Morgan’s global risk management expertise.

 

The decision regarding whether or not JPMorgan was manipulating the market came in the Fall of last year, as Citi was accumulating further positions. The CFTC would not investigate allegations that the silver price is manipulated by major financial powerhouses, in particular JPMorgan, whose death-by-a-thousand-cuts year might see their Too Big To Fail status tested and endure.

 

Buy Silver With Bitcoin: A Story Of Many Prices

Ever thought: “I should buy silver bitcoin.” Or, how about, “i should sell some silver for Bitcoin.” Well, depending on when you had these thoughts, the idea could have been a great one or a terrible one.

Buy silver for Bitcoin at $50 silver and $1.25 Bitcoin, and you might be no longer with us. R.I.P.

Buy silver for Bitcoin at $266 Bitcoin and $30 silver, you’re probably looking at life through a much rosier hue.

The history of Bitcoin and everything is very short. For that reason, not much data is available in any recognizable historical context, especially when you join two tiny markets: bitcoin for silver.  But, looking at the numbers can give us a sense of where this is heading, especially in the context of pre-conceived notions many of us have about the future, such as dollar devaluation, technological advancement or whatever you feel the future holds.

Read More

InterGalactic BTC: What Does It Mean For Bitcoin To Be One Million Years Old?


[heading]What Does It Mean For Bitcoin To Be One Million Years Old?[/heading]

It is one million years in the future, and human society is intergalactic. We’ve reached the far stretches of the “universe” and maybe even interacted with some other civilizations. Trade is nothing what it once was, and money can’t be pieces of paper. Read More

Buy Silver Online & The End Of The Local Coin Shop?

[heading]Buy Silver Online & The End Of The Local Coin Shop?[/heading]

Does buying silver online mean the end of the coin shop?

How to buy silver online is hardly a no-brainer. There has practically been a rush (pardon the pun) to buy silver online as silver garners a lot of attention in the press and has for the past decade. This spike in interest has taken place during the rise of -e-commerce, and the silver market has not shied away therefrom. However, in 2002-2003 many of those who bought silver, did not buy silver online. They bought silver differently. Is this way of silver procurement going the way of the dinosaur? Read More

Gold’s Best Rally Since 2011

[heading]Gold’s Best Rally Since 2011[/heading]

Hedge funds guessed right when they bet on a gold rally before prices went onto to their biggest two-week gain in 20 months as the Federal Reserve Chairman Ben S. Bernanke speculated that a slowing of quantitative easing appeared to be on the horizon. Read More

What Is P2P Lending & How Does Bitcoin Oil Its’ Gears?

[heading]What Is P2P Lending & How Does Bitcoin Oil Its’ Gears?[/heading]

Albert Einstein was a fan of the “thought experiment,” which is essentially when one uses their imagination to discover something new. Oftentimes these thought experiments served as precursors – a mental blueprint of sorts – to real-world experiments. Read More

House Of Cards in Commodities, From Beer Cans to Silver Bars

[heading]House Of Cards in Commodities, From Beer Drinkers to Silver Bars[/heading]

“Many more of our clients today have commodity exposure than they ever had before, or they ever realized they had. It’s important to our business.” –  Gary Cohn, Goldman president and chief operating officer. “

The gaming of the aluminum market has cost aluminum purchasers an extra $3 billion, an expense that has been passed onto beer and soda drinkers. Read More

The Strained Supply Line of Silver Buying

When in 2008, the price of silver took a 50% haircut, demand did not.  At the time, I heard reports of bullion dealers in the US who were not selling the monster boxes of Silver Eagles they had already. Physical metal was hard to find even amid a riveting selloff.

Read More

These Indicators Suggest Buying Silver

[heading]These Indicators Suggest Buying Silver[/heading]

Since the onset of 2013, silver is down 35.5% through the weekend. It is the worst commodity of 2013. So, then, why buy silver? Read More

Buying Silver In 2012, A Look Back

If silver’s performance in 2012 could be summarized in one period, then 12/18-12/20 is it. After months of coordinated attacks on silver, sometimes brutal beatings throughout entire trading days, the poor man’s gold nose-dived 7.5% in the 3 days preceding 12/20/12, its biggest drop in more than a year. It wasn’t the only poor day silver had on the year. Late in the year, silver joined numerous assets from copper to the FX in a liquidation in the paper markets. As has been the case for over a decade, nothing has fundamentally changed in asset markets, given currency devaluation and increased central bank gold purchases. Silver stacks up against all other global financial assets, through 2012, finishing in the top ten for the year.

Read More

A 6,000 Year Old War Against “Buy Silver”

[heading]”A 6,000 Year Old War Against “Buy Silver”[/heading]

“Scenes are now to take place as will open the eyes of credulity and of insanity itself, to the dangers of a paper medium abandoned to the discretion of avarice and of swindlers.” –Thomas Jefferson 1814 Read More

Buy Silver Before It’s Too Late! Mergers In Precious Metals Market

It hasn’t been merely the gold and silver price brutalized over the past two years in terms of precious metals. The ecosystem around the precious metals – retailers, in particular – has also been transformed in a play of consolidation and mergers.

Read More

New Jersey Supreme Court Ends Police Searches of Phone Data Sans Warrant

[heading]New Jersey Supreme Court Ends Police Searches of Phone Data Sans Warrant[/heading]

A New Jersey Supreme Court on Thursday ordered that the police must require a search warrant before obtaining tracking information from cellphone providers. Read More

Banked & Poor: The Lose-Lose Of Checkings & Savings

[heading]Banked & Poor: The Lose-Lose of Checkings & Savings[/heading]

As John Cheese at Cracked.com put it: “Being poor is like a game of poker where if you lose, the other players get to fuck you. And if you win, the dealer fucks you.” Read More

10 Things You Must Know About Bitcoin

[heading]10 Things You Must Know About Bitcoin[/heading]

If you’re new to Bitcoin, chances are you are very interested in the concept, but there are some key things you just don’t get. Don’t worry, I’m still scratching my head. Nonetheless, consider this a basic primer. Soon, GoldSilverBitcoin will release Bitcoinomics, a 100 page book on Bitcoin. Read More

As The Royal Family Celebrates With Silver, You Should Too

[heading]As The Royal Family Celebrates With Silver, You Should Too[/heading]

Generally, culture is created by culture creators, who generally are the rich and famous people.  Fans, for example, watch their favorite actors, actresses and musicians and copy their style. Read More

How The NSA Scandal Is Good For The Bitcoin Economy

[heading]How The NSA Scandal Is Good For The Bitcoin Economy[/heading]

The NSA is bullish for Bitcoin.

With each passing revelation, a new and far-reaching picture of NSA surveillance is drawn with even more involvement by telephone and internet companies than originally thought, and the pressing economic problems that come with the pervasive surveillance are growing clearer. Read More

The Coming Bitcoin Welfare System

[heading]The Coming Bitcoin Welfare System[/heading]

Bitcoin creates a unique opportunity for a revolutionary new way of welfare: p2p.

Bitcoin is considered by too many a tool of anarchist, minarchists and libertarians in a pursuit of laissez-faire economic freedom, but this is a misnomer when taken to the extreme. In fact,  as many Bitcoiners know, there are all sorts of different types of users. And, many of these users do not believe, like libertarians and their kindred spirits, that welfare is the root of all statist evil. So, the question this essay attempts to answer is straightforward:  what does welfare in the Bitcoin economy look like? Read More

Many Indian Firms Halt Gold Bullion Sales At Government Request

[heading]Many Indian Firms Halt Gold Bullion Sales At Government Request[/heading]

Did we just get the reason for a renewed down-leg in precious metals?

Showing the clout of government, Indian private firms have agreed to a virtual ban on gold bullion.

Jewelers, banks such as ICICI Bank and Axis Bank, Non Banking Finance Companies and public sector banks throughout India have ceased selling gold coins and bars for six months.

Read More


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