Peter Schiff Believes Wealthy Investors And Institutions Won’t Buy Bitcoin When Inflation Finally Kicks In

By Brenda Ngari – November 25, 2020

The past couple of months have been remarkable for the bitcoin markets. The number one cryptocurrency which was trading at $3,800 just the other day, breached $19,000 for the first time since the 2017 bull market.

Despite the extraordinary performance, gold bug Peter Schiff continues to criticize the OG cryptocurrency. This time, the Euro Pacific Capital chief claimed that large investors and institutional clients will not turn to bitcoin once they start worrying about the next big inflation wave.

Institutions Will Choose Gold Over Bitcoin: Peter Schiff

According to Peter Schiff, big-money investors and institutions are still not worried about inflation. This is manifested by the low bond yields. But when they begin to fret, they will purchase gold, not the flagship cryptocurrency.

The crypto-hater goes on to state that bitcoin only attracts small speculators and a handful of asset managers who are taking advantage of the speculators.

He said:

“Large investors and institutions are still not worried about inflation, as evidenced by low bond yields. When they finally start to worry, they will buy #gold, not #Bitcoin. The main buyers of Bitcoin are small speculators and a few fund managers who are taking advantage of them.”

Unless you’ve been living under a rock, you’d know that Schiff is a serial bitcoin naysayer. He uses every chance he gets to taint bitcoin’s image while calling attention to his precious commodity gold. With his latest tweet, he is sending the message that institutional investors and other large investors don’t view bitcoin as an inflationary hedge.

This is, however, not the case. While gold has long been the first choice as a hedge against inflation, the yellow metal is slowly losing its luster in a digital world. More importantly, bitcoin has totally crushed gold this year in terms of YTD gains. While gold has gained only 24% since the beginning of the year, bitcoin is enjoying blockbuster 172% gains.

Unfortunately for Schiff, Millenials like his son Spencer are increasingly preferring the top cryptocurrency instead.

Peter Schiff’s Son Dismisses His Dad’s Advice And Accumulates BTC

Even though Peter Schiff has over 30 years of investment experience, his son, Spencer Schiff, is not having any of his father’s advice about bitcoin. In early September, Schiff revealed that Spencer had purchased even more bitcoin against his advice. At the time, bitcoin was experiencing a correction around the $10,000 level and it appears that Spencer saw this as a good opportunity to add to his holdings.

Peter Schiff asked the Twitter community whether they would opt for financial advice from a 58-year old veteran like himself or an 18-year college freshman who has never even held a single job. An overwhelming majority of the respondents chose Spencer, not his dad.

Gold pundits like Schiff are often skeptical about bitcoin because the cryptocurrency threatens to take market share away from the yellow alloy, not to mention the coveted title as the preferred store of value. Since bitcoin is only getting started, I fully expect Schiff to find new angles to try to tear down the benchmark cryptocurrency in the near future.

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

US intelligence is looking at Chinese CBDC as a national security threat

The Director of National Intelligence wants to have the SEC’s leader briefed on the dangers of the U.S. falling behind in crypto.

Image courtesy of CoinTelegraph

            NOV 25, 2020

The United States national security apparatus is warning other agencies about China’s upcoming digital currency.

On Wednesday, news outlet the Washington Examiner reported on a letter that National Intelligence Director John Ratcliffe had sent Securities and Exchange Commission Chairman Jay Clayton earlier in the month.

According to the report, Ratcliffe offered to have staff brief Clayton on the security issues that derive from China’s dominance in crypto mining as well as the country’s progress in digitizing the yuan. Ratcliffe’s letter also apparently pushed Clayton to ensure that U.S. crypto firms remain competitive.

Cointelegraph has reported extensively on the race for a central bank digital currency, or CBDC. Among major economies, China seems to be closest to launch.

Since Bretton Woods in 1944, the U.S. has enjoyed a privileged status as the issuer of the world’s reserve currency, the U.S. dollar. To this day, almost all international trade is settled in dollars, though that is changing for countries like Russia and China, which are subject to extensive U.S. sanctions.

The dollar’s special status affords the Federal Reserve extra flexibility in printing more dollars without running into hyperinflation, as there is huge demand beyond U.S. shores. It is also this special status that allows U.S. sanctions to be such useful instruments of international influence.

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A successful digital yuan could challenge the status of the dollar in international trade. The flip side, however, is that many see a digital yuan as a tool of surveillance for the Chinese Communist Party. While that might reduce demand, the upgraded access to information may be another factor that Ratcliffe is worried about.

Original article posted on the CoinTelegraph.com site, by Kollen Post.

Article re-posted on Markethive by Jeffrey Sloe

DAiM Rolls Out 401(k) Plans With Bitcoin For Any Sized Business

By RTTNews Staff Writer | Published: 11/24/2020 9:24 AM ET

Digital Asset Investment Management (DAiM) has rolled out the first ERISA-compliant employer-sponsored 401(k) retirement plans that support Bitcoin (BTC). Employers of any size can adopt these plans for the benefit of their employees.

DAiM is the first licensed Registered Investment Advisor for Bitcoin and digital assets. It was approved by the State of California in June 2018 and is responsible for selecting, managing, monitoring, and benchmarking the investment offerings.

DAiM will serve as the advisor and fiduciary to help companies create a 401(k) Plan with access to Bitcoin that offers several recommended model portfolios of varying risk to traditional assets and allocation of up to 10 percent to Bitcoin. The employee also has an option to allocate more to Bitcoin.

The company executed the very first employer-sponsored 401(k) plan in October 2019 and is now launching scalable 401(k) plans that provide record keeping and administrative services.

All the invested Bitcoin will be held securely in Institutional Cold Storage Custody with Gemini Trust, DAiM's partner for its primary Investment Advisory services. As and when an employee leaves a particular company, their Bitcoin will be able to transfer with them.

DAiM said it can work with companies of any size, to either switch plans from their current provider or by implementing a first time employer-sponsored 401(k) plan with key tax credits.

However, DAiM noted that companies which are interested in offering an employer-sponsored 401(k) plan with Bitcoin for 2021, the plans need to be put in place by mid-December of this year.

For comments and feedback contact: editorial@rttnews.com

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Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe

PayPal CEO Dan Schulman Reveals Bullish Stance On Bitcoin

By Erie Maxwell – November 1, 2020

In a recent interview with CNBC, Dan Schulman, CEO of PayPal has stated that “Early next year, we’re going to allow cryptocurrencies to be a funding source for any transaction happening on all 28 million of our merchants.”

One of the main criticisms about PayPal and the support for cryptocurrencies is that it will most likely not allow external deposits or withdrawals of crypto. However, the platform would be required to back its database with actual holdings. The only caveat is that PayPal would be moving the crypto within.

Either way, the integration of cryptocurrencies with PayPal will drive the market to new highs in the near future. It will also help with the scalability of blockchain which is still an issue for many cryptocurrencies including Bitcoin.

BTCUSDT Chart By TradingView (Click image for larger view)

The flagship cryptocurrency is currently trading at $18,349 after hitting a peak of $18,965 on November 21. Despite several mini crashes, Bitcoin has recovered strongly and aims to hit $19,000 in the short-term.

PayPal could be the initial spark of a new colossal bull rally

It’s clear that Dan Schulman thinks Bitcoin is a valuable asset, and he actually owns some coins as well. Schulman stated that the value of cryptocurrencies comes from trust and the issues with fiat money. The CEO believes most people simply don’t want to handle cash anymore, something that is happening in the financial world as well. 

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One of the main things that PayPal looked for when debating whether to support cryptocurrencies or not was their utility in the real world. Allowing customers to use cryptos as a funding source is a significant booster to the utility of digital assets.

When a customer buys Bitcoin or any other cryptocurrency through PayPal and wants to make a transaction with a merchant, the platform will automatically calculate how much of that cryptocurrency the user needs to pay -avoiding any potential volatility issues.

PayPal is one of the largest online payment systems in the world founded by Elon Musk and others. The support of Bitcoin and other digital assets will most certainly benefit the entire cryptocurrency market in the long-term.

DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Erie Maxwell and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Bitcoin price dips below $18K — Time to watch these 'whale cluster' support zones

Bitcoin price has lost the $18,000 support level but several whale clusters below suggest that the dip will get aggressively bought up.

Image courtesy of CoinTelegraph

            NOV 22, 2020

Bitcoin (BTC) price dropped below the $18,000 support level on Nov. 22. This comes after BTC continuously saw high over-the-counter (OTC) and institutional volume throughout November.

BTC/USD 1-hour chart. Source: Tradingview (Click image for larger view)

Data suggests that the growing institutional demand was likely one of the main catalysts behind the BTC price rally to $18,965.

According to the data from Skew, Grayscale Bitcoin Trust’s volume on OTC Markets increased significantly in the fourth quarter.

OTC Markets is a securities exchange in the U.S. that allows institutional and accredited investors to purchase various securities. The Grayscale Bitcoin Trust trades on OTC Markets, similar to an exchange-traded fund (ETF).

Grayscale Bitcoin Trust daily volume. Source: TradingView.com (Click image for larger view)

This is an institution-led Bitcoin rally

There is a clear difference between the ongoing uptrend and the 2017 rally. This time, Bitcoin has shown more composure and stability throughout the uptrend, consecutively reclaiming major resistance levels.

Bitcoin saw a large spike in spot volume, futures exchange open interest, and institutional demand. Yet, various metrics such as Google Trends have shown the mainstream interest for Bitcoin is relatively low.

The combination of the two above mentioned factors suggests institutions have likely been the primary driving force of the recent rally.

The heavy involvement of institutions in a prolonged Bitcoin rally is optimistic because institutions are likely to accumulate BTC with a long-term strategy.

This trend explains why most of the major dips Bitcoin saw in November were aggressively bought up. As Cointelegraph reported, Dan Tapiero, the co-founder of 10T Holdings, said “big boys will buy dips now."

Tapiero also emphasized that real fundamentals are driving the ongoing rally, unlike the 2017 mania. He said:

“3rd wave up to dwarf the 2017 move and should persist for several years.”

Michael Novogratz, the billionaire Bitcoin investor, also said that Bitcoin has become an institutional asset along the way.

In recent months, more institutions, hedge funds, and investment banks have started comparing BTC to gold. Novogratz said on CNBC:

“Bitcoin is now an institutional asset. Period. The good thing is most institutions aren’t in yet. It’s why 2021 will be as good or better than 2020.”

3 whale clusters to watch as BTC dives below $18,000

Whales, or high-net-worth investors, typically use OTC and exchanges simultaneously to accumulate Bitcoin.

Throughout November, analysts at the on-chain analysis firm Whalemap found the emergence of major whale clusters.

Whale clusters are price levels where whales buy BTC and do not move their holdings. Clusters often signify areas where whales buy Bitcoin.

Bitcoin whale clusters throughout November. Source: Whalemap (Click image for larger view)

The data from Whalemap show that $16,411, $16,278 and $15,691 remain as the big whale clusters. Hence, even if BTC sees a short-term pullback, the aggressive accumulation from whales in November has established crucial support areas.

In the near term, following BTC’s recent minor correction from $18,865 to below $18,000, whale clusters are expected to act as important support levels. The $17,300 and $16,411 price levels remain as the major support levels.

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Original article posted on the CoinTelegraph.com site, by Joseph Young.

Article re-posted on Markethive by Jeffrey Sloe

The Bitcoin Dragon Will Eat the Kingdom of Gold – Microstrategy CEO

John P. Njui   •   BITCOIN (BTC) NEWS • CRYPTOCURRENCY   •   NOVEMBER 21, 2020

Quick take:

• Microstrategy CEO, Michael Saylor, has compared Bitcoin to a dragon that will eventually eat the Kingdom of Gold
• His comments were in response to the CIO of BlackRock, talking about Bitcoin eventually replacing Gold as a store of value and a choice of investment amongst Millenials
• Bitcoin devouring Gold’s market cap of $9 Trillion means BTC will eventually be valued at $500k

The CEO of MicroStrategy, Michael Saylor, has compared Bitcoin (BTC) to a dragon that will eventually devour gold. Mr. Saylor’s exact words were as follows.

"When the Bitcoin Dragon emerges from its lair, the first thing it will eat is the Kingdom of Gold."

Bitcoin is More Functional Than Passing a Bar of Gold Around

His comments were in response to a CNBC interview in which the CIO of BlackRock, Rick Reider, explained that Bitcoin will eventually replace Gold. One of Mr. Reider’s main argument was that Bitcoin is ‘more functional than passing a bar of gold around’. His exact commentary on Bitcoin was as follows.

"I think cryptocurrency is here to stay. I think it is a durable…and you’ve seen central banks that have talked about digital currencies.

I think digital currencies and the receptivity, particularly millenials receptivity of technology and cryptocurrency is real…digital payment systems is real. So, I think Bitcoin is here to stay…

Do I think it’s a durable mechanism, do I think it will take the place of gold to a large extent? Yeah, I do, because it’s so much more functional than passing a bar of gold around"

Bitcoin Could Hit $500k With Gold’s Marketcap

The possibility of Bitcoin ‘devouring’ gold’s market cap was recently explored in a report by Tyler Winklevoss in which he pleaded the case of BTC eventually being valued at $500,000. His analysis was based on Bitcoin chipping away at and finally reaching Gold’s market cap of $9 Trillion.

The possibility of Bitcoin ‘devouring’ gold’s market cap was recently explored in a report by Tyler Winklevoss in which he pleaded the case of BTC eventually being valued at $500,000. His analysis was based on Bitcoin chipping away at and finally reaching Gold’s market cap of $9 Trillion.

His analysis of Bitcoin was published in late August and it concluded that Bitcoin was undervalued by a factor of 45x.

This means that Bitcoin investors are relatively early into the game and BTC is still undervalued as it approaches $20k.

Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

Here’s Where a “Bitcoin Bear Whale” Has Put Up a Massive Sell Wall

By Cole Petersen – November 18, 2020 in ETH Reading Time: 2min read

Bitcoin’s price action as of late has greatly favored buyers, with the cryptocurrency being caught within the throes of an intense bout of sideways trading just below $19,000 as buyers try to garner enough buy-side pressure to break through this level.

The selling pressure here has been intense, but it has yet to catalyze any type of intense selloff throughout the past few days.

This seems to point to immense underlying strength amongst buyers and may indicate that near-term upside is imminent. If bulls can break above this level, they may face some resistance around $19,300 before they can push the crypto to new all-time highs.

One trader is noting that there is a Bitcoin “bear whale” that has sell orders placed at this level, which may prove difficult to surmount upon the first attempt.

That being said, one analyst explained in a recent tweet that he is expecting Bitcoin to break above this resistance and set fresh all-time highs in the near-term.

Bitcoin Shows Signs of Strength as Bulls Target $19,000

At the time of writing, Bitcoin is trading up marginally at its current price of $18,750. This is around where it has been trading throughout the past few days.

A strong break above $19,000 could catapult BTC to fresh all-time highs, as the resistance in the lower-$19,000 region level is the last resistance seen before $20,000. Once it sets new all-time highs, the media cycle and retail “FOMO” could send it rocketing even higher.

Because of the current strength being projected by Bitcoin, it does seem like a clean break above this level is imminent.

Once new all-time highs are set, it may enter a price discovery mode that results in it seeing significantly further upside.

This “Bear Whale” May Slow BTC’s Ascent

He also notes that there is a “bear whale” that is putting up some serious sell walls at $19,300.

“Longed BTC: Chad Bear Whale is resting at $19.3k and needs relieved of his corns. But more importantly, we have an all time high to make.”

Image Courtesy of LedgerStatus. Source: BTCUSD on TradingView. (Click image for larger view)

Although it may take some time for bulls to chew through these sell orders, it’s clear skies ahead for the crypto once this resistance is broken.

Featured image from Unsplash.
Charts from TradingView.

The original article was written by Cole Petersen and posted on NewsBTC.com.

Article reposted on Markethive by Jeffrey Sloe