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Deutsche Bank Envisions Post Covid-19 Economy Accelerating Digital Payments

Deutsche Bank Envisions Post Covid-19 Economy Accelerating Digital Payments

Since the covid-19 outbreak wreaked havoc across the world’s economies, the global multinational investment bank Deutsche Bank has been encouraging the use of digital currencies. The firm’s Twitter account and macro strategist Marion Laboure have been tweeting regularly about how coronavirus infection risks could “accelerate digital payment systems across the world.”

Also read: 5% Over Spot: Gold-Backed Tokens Tether Gold and Digix Sell for Higher Premiums

Deutsche Bank’s Macro Strategist Envisions a Digital Payment Transformation Post Covid-19

The coronavirus is surely changing the way we look at things and how we operate in our everyday lives. For years now, society has been aware that physical currencies can be dirty and the covid-19 outbreak has exemplified this fact. Researchers have reported that paper currency can carry a higher number of microorganisms than your toilet. It has been said that the seasonal flu virus can survive on a banknote for roughly 17 days. These statistics have caused governments across the world to store notes in separate locations and even scrub them. Last month, the U.S. Federal Reserve was storing repatriated USD from Asia in a different location. The month prior, when covid-19 was ravaging China, the People’s Bank of China (PBoC) explained that repatriated yuan notes were being disinfected.

Germany’s Deutsche Bank AG and the financial institution’s macro strategist Marion Laboure think trends like these will bring about a number of digital currency concepts. On April 3, the bank’s official Twitter account stated:

The covid-19 pandemic is accelerating the rise of central bank digital currencies as many governments see the handling of cash as a potential risk factor. This will likely add to calls to move towards digital cash according to our Deutsche Bank research colleague Marion Laboure.

The bank’s macro strategist Marion Laboure has been tweeting about the coronavirus accelerating the use of digital currencies and causing a “transformation.” “The recognition of the infection risk will likely accelerate the push towards digital payment systems across the world,” Laboure said. In a recent report called “The Covid-19 Cash Out,” authors Juergen Braunstein, Marion Laboure, and Sachin Silva wrote about a possible transformation.

Deutsche Bank Envisions Post Covid-19 Economy Accelerating Digital Payments

“Because the hand-to-hand exchange of physical currency could transmit the coronavirus, countries around the world are being forced to reconsider the use of cash,” the researchers detailed. The report highlights that the authors can’t predict what will happen in a post covid-19 economy, but they can envision a new type of payment structure. “Digital versions of cash currency, such as Sweden’s recently announced e-krona, are promising examples of what could be in store,” the report concludes.

Deutsche Bank Envisions Post Covid-19 Economy Accelerating Digital Payments

‘Digital Payments Could Rebalance Global Economic Power,’ Says Deutsche Bank Researchers

Various other tweets and reports by Laboure and the official Deutsche Bank Twitter account mention central bank digital currencies (CBDCs). The financial institution’s reports also talk about digital assets that exist today like bitcoin, e-wallets, stablecoins, the possibility of a digital yuan, and balancing the monetary system. Various quotes from the bank’s researchers stress things like “By 2025, e-wallets are expected to be the second-most preferred method of payment after cards – and the first among millennials” and how the “transition to digital payments could potentially rebalance global economic power.”

Of course, the bank is shilling CBDCs and stablecoin concepts that represent digital fiat reserves. These new digital systems would be no different than the digits citizens use today, except it would use a blockchain. It’s not very likely a CBDC will rebalance any power because it’s centralized. Society has already seen what modern central banks worldwide will do to the citizenry’s money over time. With cryptocurrencies like bitcoin, on the other hand, Satoshi created a financial system that is not controlled by a single entity, corporation, government, or central bank.

Deutsche Bank Envisions Post Covid-19 Economy Accelerating Digital Payments
“The root problem with conventional currency is all the trust that’s required to make it work,” explained Satoshi Nakamoto on Feb. 11, 2009. “The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.”

It might be small right now, but this is why the crypto economy is worth close to a quarter of a trillion U.S. dollars. People find value in cryptocurrencies that can give people financial privacy, censorship resistance, and allow them to transact in a peer-to-peer fashion. Deutsche Bank is right that physical banknotes are dirty but the financial incumbent’s digital transformation ideas are questionable, to say the least. Ever since the modern central bank was born and the many that followed after, the monetary system has been plagued with busts and booms.

What do you think about Deutsche Bank shilling digital currencies because of covid-19? Let us know in the comments section below.

The post Deutsche Bank Envisions Post Covid-19 Economy Accelerating Digital Payments appeared first on Bitcoin News.

Source: Bitcoinnews.com

Virgin Galactic’s Chamath Palihapitiya: Bitcoin Could Go to $1 Million, Everybody Should Own Some

Virgin Galactic's Chamath Palihapitiya: Bitcoin Could Go to $1 Million, Everybody Should Own Some

Virgin Galactic Chairman Chamath Palihapitiya has shared his bitcoin investment strategy, predicting that bitcoin’s price could reach a million dollars. He further suggested that everybody should have 1% of their assets in bitcoin since it is “a fantastic hedge.”

Also read: IMF Declares Global Recession, 80 Countries Request Help, Trillions of Dollars Needed

Bitcoin’s Price Could Reach $1 Million

Chamath Palihapitiya, the chairman of Virgin Galactic and founder of investment firm Social Capital, recently discussed bitcoin and how to invest during the current financial crisis. In a podcast interview published last week with Morgan Creek Digital co-founder Anthony Pompliano, Palihapitiya was asked about his bitcoin investment strategy. Responding to questions about whether he had bought, sold or changed the bitcoin allocation in his portfolio in any way, the venture capitalist revealed:

In 2013, I bought a lot and at one point I think I had almost 5% of all the bitcoins. My basis is about 80 bucks a coin. I’ve never bought more.

“Most of my bitcoin now sits with a company and they use it for trading purposes. They use it to run a bunch of other strategies,” he added. “I did that mostly for safety and security and peace of mind. I didn’t want to deal with it. I wanted to own equity in the business. That equity can be hedged. That equity can be tax structured advantageously, and then it allows them to run a big business which generates cash, and I can get a cash and dividend stream.” He proceeded to confirm, “so I have not bought since I initially basically wrote that article for Bloomberg in 2013.”

Virgin Galactic Chair Chamath Palihapitiya Bullish on Bitcoin, Project $1 Million
Chamath Palihapitiya, Chairman of Virgin Galactic and founder of investment firm Social Capital, believes that bitcoin could be worth $1 million a coin. He bought a bunch when they were about $80 a coin.

Bitcoin is “still a speculative instrument and it’s too speculative for it to be reliable,” Palihapitiya opined. “So if you are going to make the case that it should replace fiat currency, well one thing you have to look at is the volatility of the U.S. dollar and you can’t replace it with something that’s nine sigmas more volatile. It doesn’t work.”

He then shared his prediction of how high he thinks the price of bitcoin could be over the next 10 years. “It is a 10-year trajectory,” he began. “I’ve always thought of bitcoin as a very binary investment, whether it goes from 80 to 8,000 to 6,000 to 3,000 to 13,000, it doesn’t matter.” Noting that bitcoin’s price will be “either zero or it’s millions,” Palihapitiya asserted:

What it will do is it will create a quasi gold standard. It’ll create an index, except instead of having to own gold where gold is owned by central banks, it is an instrument that has value that’s determined in between its participants, and it’s owned by everybody.

Palihapitiya has founded six companies and currently serves on the board of nine others, including Syapse Inc. and Remind101. He also previously worked at Facebook, Mayfield Fund, AOL, and Winmap.

Virgin Galactic Chair Chamath Palihapitiya Bullish on Bitcoin, Project $1 Million
Chamath Palihapitiya believes that bitcoin is still a speculative instrument, but everyone should have at least 1% of their assets in bitcoin since it is “a fantastic hedge.”

Everyone Should Have Bitcoin

Palihapitiya also discussed bitcoin investing in an interview with CNBC last month. The Virgin Galactic chairman reiterated that his view on bitcoin remained unchanged since he authored the Bloomberg article on the subject in 2013, elaborating:

Everybody should probably have 1% of their assets in bitcoin specifically. I still believe that today and I think it [bitcoin] is just a fantastic hedge.

When asked about his thoughts on what Berkshire Hathaway CEO Warren Buffett said about bitcoin, Palihapitiya emphasized that the billionaire “is completely wrong and outdated on this point of view.” Buffett insists that he does not own any bitcoin and never will. Repeatedly saying that it has zero value, he once called the cryptocurrency “rat poison squared.”

Virgin Galactic Chair Chamath Palihapitiya Bullish on Bitcoin, Project $1 Million
Chamath Palihapitiya said that regarding bitcoin, Berkshire Hathaway CEO Warren Buffett “is completely wrong and outdated on this point of view.”

Palihapitiya clarified to CNBC that investing in bitcoin should not be event-driven. “When you wake up and you see a coronavirus scare and the Dow down 2,000, you should not be going in and buying bitcoin — that is an idiotic strategy,” he opined. “I think a reasonable strategy is to say 1% of my net worth should be in something that is completely uncorrelated to the world and how the world works.” The Virgin Galactic chairman suggested going into bitcoin “quietly” and letting the investment accumulate. He concluded, “Then you just never look at it again and hope that that insurance under the mattress never has to come due,” adding:

But if it does, it will protect you because that thing will be hundreds of thousands or a million dollars a coin.

What do you think about Chamath Palihapitiya’s view on bitcoin? Let us know in the comments section below.

The post Virgin Galactic’s Chamath Palihapitiya: Bitcoin Could Go to $1 Million, Everybody Should Own Some appeared first on Bitcoin News.

Source: Bitcoinnews.com

5% Over Spot: Gold-Backed Tokens Tether Gold and Digix Sell for Higher Premiums

5% Over Spot: Gold-Backed Tokens Tether Gold and Digix Sell for Higher Premiums

Digital asset markets have been gathering some gains during the last few days and tokens like stablecoins have seen massive demand since the start of the market carnage. Alongside stablecoins, gold-backed digital assets like Tether Gold, Pax Gold, and Digix Gold have seen tremendous trade volumes as well. In fact, cryptocurrencies that claim to be backed by gold are selling for 1-5% above gold’s .999 per Troy ounce spot price.

Also read: Hyperbitcoinization: Visions of Bitcoin Fueling the Post Covid-19 Shadow Economy

Gold-Backed Crypto Assets Shine

Crypto assets are doing well on Tuesday following the rebound equity markets saw the day prior. In addition to digital currency markets, precious metals have been rising on April 7 as well. At the time of publication, the price of gold per Troy ounce is hovering around $1,654. Gold has been considered a safe-haven asset during these uncertain economic times that were sparked by the covid-19 outbreak. Similarly to crypto assets, gold prices took a hit on March 12 but gold values have regained those losses since then. There’s been a lot of demand for gold and reports have noted during the last two weeks that gold dealers have seen “big shortages of small bars and gold coins.”

“People want to buy, not to sell gold,” Mark O’Byrne, the founder of the firm Goldcore told the press on April 2. “We have a buyers’ waiting list and we emailed our clients seeing who wished to sell their gold. At this time there are roughly only one or two sellers for every 99 buyers,” O’Byrne added.

5% Over Spot: Gold-Backed Tokens Tether Gold and Digix Sell for Higher Premiums

The demand for gold assets has found its way into the cryptocurrency industry as well. The number of projects that claim their tokens are backed by physical gold has seen increased buying and premiums in the last few weeks. Coins like Tether Gold (XAUT) and Digix Gold (DGX) are swapping for 1-5% above gold’s .999 per Troy ounce spot price. For instance, the XAUT token is selling for 1.5% more than spot prices on Tuesday. According to the firm Tether Limited, a full XAUT “represents one troy fine ounce of gold on a London Good Delivery bar.” With the current gold spot price trading for $1,654, a single XAUT is trading for $1,679 to $1,688 per token depending on the exchange used.

5% Over Spot: Gold-Backed Tokens Tether Gold and Digix Sell for Higher Premiums

Digix Tokens Close to 5% Above Spot Gold

Then there’s the Ethereum-based gold project Digix with its DGX coin, a token that’s allegedly redeemable for 1 gram of gold per DGX. If one was to obtain a hair over 31 DGX on Tuesday, April 7, they would spend 4.47% more than gold’s spot price at $1,728 for the lot of 31.1 tokens. Pax Gold today is trading for a touch less than the spot price of gold as each PAXG is swapping for $1,651 per token. The company Pax Global claims that “every PAX Gold token is backed by an ounce of allocated gold.” Users who hold PAXG can utilize a tool that looks up the serial number and information about the physical gold’s source.

5% Over Spot: Gold-Backed Tokens Tether Gold and Digix Sell for Higher Premiums

A number of other digital assets that allege to have physical gold backing are doing far better than the spot price of physical gold bars. Of course, obtaining real bars and coins made of gold are also carrying similar premiums. Local gold dealers are desperately contacting wholesalers to get their hands on smaller bars and coinage. While retail buyers are allegedly spending 10-15% more to get their hands on physical gold, it seems crypto tokens backed by gold are seeing similar premiums.

What do you think about the demand for tokens that claim to be backed by physical gold? Let us know in the comments below.

The post 5% Over Spot: Gold-Backed Tokens Tether Gold and Digix Sell for Higher Premiums appeared first on Bitcoin News.

Source: Bitcoinnews.com

Sweden’s ‘Lagom’ Response to Coronavirus: No Masks, Keep The Economy Going With a “No Limit” Printing Press

Sweden's 'Lagom' Response to Coronavirus: No Masks, Keep The Economy Going With a "No Limit" Printing Press

Pundits globally are flabbergasted Swedes still go to cafés, to restaurants and to hang out in parks without face masks on. The Coronavirus in Sweden has so far claimed 611 deaths, with 7,849 confirmed cases. Swedish people still send their kids to school and are not hoarding much of anything compared to countries like the U.S. But just like in most of the world many businesses are hit hard, and the country’s central bank has started the printing presses.

Also read: Major Swedish Bank Fined $386 Million for Hiding Money-Laundering Evidence

The Swedish Central Bank Has Started The Printing Presses

The Swedish Central Bank, the oldest-running operation of its kind in the world, called “Riksbanken” has predictably responded to the crisis by starting the printing presses. They’ve promised the banks a 500 billion SEK ($55B) credit line to “grease” the wheels, making sure there is enough liquidity in the system. Riksbanken’s chief Stefan Ingves has also stated that there are no limits to how much these presses can print, while carefully avoiding the term QE, or quantitative easing. Ingves has also previously stated at a press conference last month:

The Riksbank stands ready to do more if and when necessary to help the Swedish economy get through this crisis as well.

Citing liquidity problems on the financial markets, the Swedish central bank is now planning to buy government, corporate and mortgage bonds, and is auctioning USD denominated loans for around $70 billion. Riksbanken has already increased its government bond-buying target by $30 billion, after leaving their most important interest rate, the overnight repurchase rate, at zero percent.

Sweden's 'Lagom' Response to Coronavirus: No Masks, Keep The Economy Going With a
Few wear masks in Sweden.

Swedes Don’t Let The Recently Elected Leader Call All The Shots

One of the explanations for the Swedish approach to lockdowns is it’s rather unique governance system. Swedes don’t let the recently elected political leader call all the shots; here the local authorities are actually in charge. Or at least that is the design of the Swedish system, and Sweden’s unique response to the coronavirus pandemic may be viewed in this light. It’s a form of democracy comparable to the systems in Finland and Switzerland, where the state apparatus has also aimed for the decentralization of power for centuries. In contrast to the never-ending stream of decrees from “strong leaders” like Trump or Erdogan – and their citizens’ (apparent?) quick obedience – in Sweden the centuries-old authorities often have a larger say in how things should progress than the prime minister, and its people actually listen.

Sweden's 'Lagom' Response to Coronavirus: No Masks, Keep The Economy Going With a
Many pundits and politicians worldwide are wary of the course taken by the swedes, whose ideas on how to flatten the famous curve will undoubtedly be analyzed in great detail in the aftermaths of the covid-19 pandemic.

Consequently, the Swedish public has followed closely along to the Swedish health authorities’ daily TV broadcasted explanations on which measures might be effective; washing hands is, physical distancing as well, wearing masks maybe not so much. Protecting the risk groups is a priority, but schools, workplaces, and restaurants stay open for all else – albeit not crowded, and with new safety routines to avoid spreading the virus. This approach may be summed up by the unique Swedish word “lagom”, which means something similar to “just right”, or “not too much, not too little”. Lately, though reports of spreading covid-19 infections have been seeping out from many elderly homes in Sweden. A daily updated map on the number of cases and deaths in Sweden can be found here.

The Swedish “Lagom” Measures Will Be Analyzed in Great Detail

In the aftermath and analysis phase of the coronavirus pandemic, the Swedish responses to the coronavirus and the results from those “lagom” actions taken will be analyzed in great detail. Still today, April 7, many cafés, restaurants, and shops stay open even in the most afflicted areas of the capital city of Stockholm.

Sweden's 'Lagom' Response to Coronavirus: No Masks, Keep The Economy Going With a
By helping guests to practice safe distances (no serving in the bar, only table service) and washing their hands many cafés and restaurants in Sweden stay open.

The nordic confidence in the established authorities culls Swedish elected politicians urge to decree “tough” measures like a “lock-down”. They are not afraid their popularity ratings will fall if they do not act “tough”, as few Swedes find the “tough” authoritarian leader attractive. The prime minister is temporary, but the central bank and the Swedish Health Authority are persistent organizations, the former in operation since the 15th century.

The country is also one of the world’s most secularized societies with the least religious folks in the world, turning to science rather than faith when combating covid-19. The Swedish Health Authority Folkhälsomyndigheten (FHM) reigns supreme. Swedish politicians can avoid some of the responsibilities of “knowing best”, and can defer decisions on rules for social distancing and public transport, among other things.

Sweden's 'Lagom' Response to Coronavirus: No Masks, Keep The Economy Going With a
Sweden’s prime minister Stefan Löfven has taken a back seat somewhat and allows the appointed authorities to prognosticate and steer what actions are to be put in place.

The Swedish prime minister Stefan Löfven often refers to letting “the experts” steer, instead of having himself prognosticating the future and deciding on actions to counter-act a never-before-seen virus.

Swedish Central Bank Testing It’s Own Digital E-Coin

In the meantime, while the coronavirus has reached at least one employee at the bank, the Swedish central bank is testing its own digital dollar, the “e-krona”. When asked about the project it’s chief Stefan Ingves has repeatedly told journalists that “Bitcoin is not money”, but that a digital dollar is needed to keep up with the times.

“The Riksbank sees potential problems with the marginalisation of cash and has therefore initiated a pilot project to develop a proposal for a technical solution for Swedish kronor in electronic form, an e-krona.” – Quote from Riksbank.se (pictured above: The Riksbank/Central Bank offices in central Stockholm).

By introducing its own electronic currency and moving away from paper cash the central bank could actually continue lowering the interest rate into negative territories. Sweden is already maybe the world’s most cashless society. When few have access to actual cash – few can benefit from those negative interest rates by hoarding cash under the mattress. The beneficiaries of some loans will reverse – the lender will have to pay, while the beneficiary of the loan will receive extra interest from taking out a loan. Already in Germany people are paying to lock-up cash in 30-year government bonds, and in Denmark negative interest rate mortgages have been introduced. Where these strange actions will take the economy is hard to say. Is this whole process, in the end, giving the central bank a new tool to “reverse-inflate” away loans?

The reactions to the Covid-19 pandemic by politicians and their central bankers may lead to disastrous effects on the economy long-term, as politicians print way too much currency trying to fix the current slow-down, inadvertently inflating away people’s savings and paychecks over the longer-term. Printing paper is not the same as “creating money”, as currency isn’t money. Gold is money, however, as is bitcoin. Keynesian central bankers are now hoarding gold, while Austrian libertarians and anarchists are hoarding bitcoin. The future will tell who was right.

What do you think about the Swedish “lagom” approach to the pandemic? Let us know in the comments below.

The post Sweden’s ‘Lagom’ Response to Coronavirus: No Masks, Keep The Economy Going With a “No Limit” Printing Press appeared first on Bitcoin News.

Source: Bitcoinnews.com

Market Update: Traders ‘Buck the Trend’ Pushing Crypto Market Cap Above $200 Billion

Market Update: Traders ‘Buck the Trend’ Pushing Crypto Market Cap Above $200 Billion

Digital currency markets have been rising again as the entire market capitalization of all 5,000+ coins has jumped above the $200 billion mark. The increase in crypto trade volume and coin values has followed alongside the recovery traditional equity markets saw on Monday. On Tuesday, most of the digital assets in the top ten are up between 4-14% and crypto trade volumes have doubled in the last 24 hours.

Also read: Hyperbitcoinization: Visions of Bitcoin Fueling the Post Covid-19 Shadow Economy

Top Ten Crypto Assets Gain 4-14% in the Last 24 Hours

During the last few weeks, digital currency proponents and crypto traders have been wondering what will happen to bitcoin and the slew of other coins in the crypto industry. For instance, the entire cryptocurrency market capitalization lost a whopping $44 billion on March 12, 2020, otherwise known as ‘Black Thursday.’ BTC prices dropped to a low of $3,870 on March 12. The following day, BTC regained some of the losses when it was hovering between $5,300-5,600 per coin on March 13.

Market Update: Traders ‘Buck the Trend’ Pushing Crypto Market Cap Above $200 Billion

Since then, BTC has gained 30% since the low and on April 7, prices are currently meandering between $7,300-$7,425 during Tuesday morning’s trading sessions. BTC has gained about 4% in the last 24 hours and the coin is up 15% for the week. Ethereum is priced around $174 per ETH and has gained 13.3% today. Behind ETH is XRP, which is swapping for $0.20 per coin as XRP markets are up by 6.8%.

Market Update: Traders ‘Buck the Trend’ Pushing Crypto Market Cap Above $200 Billion

Bitcoin Cash (BCH/USD) Market Action

Bitcoin cash (BCH) is trading for $259 per coin today and has gained 7.2% in the last 24 hours. BCH is up 18% for the week and has also gained 8.5% during the last 90 days. The top trading pair with BCH on Tuesday is tether (USDT) which is capturing around 63% of all BCH trades. This is followed by BTC (20.71%), USD (9.42%), KRW (2.19%), ETH (1.65%), EUR (0.91%), and JPY (0.82%).

Market Update: Traders ‘Buck the Trend’ Pushing Crypto Market Cap Above $200 Billion

Bitcoin cash has a liquid market cap that’s hovering around $4.8 billion on Tuesday and BCH is the fifth most trade crypto below EOS and above LTC. BCH reported trade volume is around $4.8 billion but messari.io’s “real volume” statistics note it’s around $35 million. In 22 hours, BCH will be the first major SHA256 branch to experience a halving. After April 8, BCH miners will go from receiving 12.5 coins per block to 6.25 coins plus transaction fees.

Market Update: Traders ‘Buck the Trend’ Pushing Crypto Market Cap Above $200 Billion

Digital Currency Market Prices ‘Buck the Trend’

Market analyst from Etoro, Simon Peters, noted in a recent investors’ report that last week’s financial data was far more worrisome than this week’s changes. “Economic data released last week was worrying, to say the least,” Peters wrote. “Midweek figures revealing a drop in exports from big Asian economies, such as Japan and South Korea, hit equity markets globally, resulting in the S&P 500 and the FTSE 100 both dropping considerably.” Peters remarked that cryptocurrency markets, however, have managed to “buck the trend.”

Market Update: Traders ‘Buck the Trend’ Pushing Crypto Market Cap Above $200 Billion

“From a crypto asset point of view, however, both bitcoin and altcoins have performed well during this difficult period,” the Etoro analyst added. “Bitcoin has been in a consolidation phase, remaining steady in between $6,000 and $7,000. There has been the odd spike, both to the upside and the downside, but overall, I am happy with the solidity of the price at the moment. With the Fed carrying out its policy of unlimited quantitative easing, buying assets left right and center, I think bitcoin is going to be pushing towards $7,500 in the short term.

Crypto Investors ‘Shrug Off Pessimism’

While BTC prices remain above the $7K region and a slew of other digital assets follow suit many market strategists believe crypto investors are less worried. In just a week’s time, sentiment among crypto traders and investors has changed from bearish to bullish. “[Bitcoin and cryptocurrency] purchases follow the signs of improving sentiment in the stock markets,” noted Alex Kuptsikevich, Fxpro’s senior market analyst. “As soon as risk assets start to attract demand actively, institutional investors may also increase their positions in the cryptocurrency,” Kuptsikevich added on Monday.

Market Update: Traders ‘Buck the Trend’ Pushing Crypto Market Cap Above $200 Billion

Additionally, Naeem Aslam the chief market strategist from Avatrade remarked that crypto investors are far more optimistic now. “Investors are shrugging off the pessimism,” Aslam wrote. However, Aslam said that covid-19 might not be over so quickly and the virus could make it so “we could be in for a longer period of recession.”

The Verdict: Post Covid-19 Uncertainty Remains

Overall digital assets have outshined U.S. stock markets and precious metals as well. The price of BTC has surpassed the S&P 500’s gains and the rest of the top indexes. Since equity markets started showing signs of recovery gold has moved very little and has only gained 2% since the start of the year. Despite social media and forums showing a lot more optimism among crypto investors, the multifactorial Crypto Fear & Greed Index (CFGI) shows “extreme fear” is still in the air.

Market Update: Traders ‘Buck the Trend’ Pushing Crypto Market Cap Above $200 Billion

Traders understand that digital currencies are doing very well but economic uncertainty, in general, is clouding most people’s predictions. As far as BTC prices are concerned and a few other digital assets, key resistance has started to form. If crypto assets can’t break these regions then another pullback could be in the cards. Despite the looming doubt researchers believe that the response to covid-19 from governments and central banks will be a positive influence on crypto assets.

“We believe that the downstream impact of the government’s fiscal and monetary response to the crisis will be strongly positive for crypto,” Bitwise’s Global Head of Research Matt Hougan remarked in the firm’s April 2020 Investor Letter.

Where do you see the crypto markets heading from here? Let us know in the comments below.

The post Market Update: Traders ‘Buck the Trend’ Pushing Crypto Market Cap Above $200 Billion appeared first on Bitcoin News.

Source: Bitcoinnews.com

Hyperbitcoinization: Visions of Bitcoin Fueling the Post Covid-19 Shadow Economy

Hyperbitcoinization: Visions of Bitcoin Fueling the Post Covid-19 Shadow Economy

With the recent coronavirus spread and its overall effect on the global economy, some people believe the powers that be are preparing a financial reset. During these times, a number of bitcoiners think a bitcoin-induced form of fiat currency demonetization will take place, otherwise known as ‘hyperbitcoinization.’ However, a few speculators believe digital assets in the crypto economy are actually meant to further the underground shadow economy. In a world filled with overbearing politicians and malicious data-collecting corporations, the surveillance state could easily make cryptocurrencies far more valuable by fueling the world’s shadow markets.

Also read: Evidence Shows Politicians and Wall Street CEOs Expected the Market Crash Well Before Covid-19

A Different Kind of Hyperbitcoinization

A number of bitcoiners think that someday, bitcoin could grow so popular that it becomes the most used money in the world. These speculators believe that the protocol will be uncontrollable and eventually be adopted by everyone leading to hyperbitcoinization. But what if bitcoin covers only a fraction of the global economy, and more specifically the black and gray markets that operate beneath the legal system. Adoption of a crypto that fuels the shadow economy would still be a threat to the manipulated fiat system and it could remain uncontrollable. In fact, estimates show that the shadow economy is the second-largest economy in the world. When bitcoin was born in 2009, the Organisation for Economic Co-operation and Development (OECD) predicted that by this year in 2020 “more than two-thirds of the world’s workers will work in the shadow economy.”

Hyperbitcoinization: Visions of Bitcoin Fueling the Post Covid-19 Shadow Economy

The shadow economy or ‘System D’ isn’t just black market trades like drugs, weapons, and items the government has banned. System D participants include any paid workers who don’t report their financial transactions to the government and the funds remain untaxed. Traditionally, the general public has always assumed that the shadow economy exists in regions with fewer laws and in underdeveloped parts of the world. But that’s not the case at all, as underground financial systems exist in countries with a lot of wealth, high taxes, and significant amounts of regulation. The top countries in the world with the biggest shadow economies include places like the United States, Brazil, Italy, Russia, Germany, France, Japan, the United Kingdom, and Spain.

Hyperbitcoinization: Visions of Bitcoin Fueling the Post Covid-19 Shadow EconomyWith the coronavirus plaguing the world and industry shutdowns squeezing the economy, some individuals think that governments and central bankers are planning a financial reset. Speculators assume that it’s the perfect time to usher in a “New Deal” similar to the way Wall Street and Franklin D. Roosevelt (FDR) restructured the American monetary system. Governments and central bankers are already pushing forms of digital cash and a cashless society, but the systems are centralized and meant to monitor people’s everyday transactions. The nation states could easily reset the financial system right now by creating a cashless system that’s maintained by central bankers and bureaucrats. Bitcoin and decentralized cryptocurrencies could still experience a smaller form of hyperbitcoinization by people who want to escape the “Green New Deal.” Cryptocurrencies could grow immensely valuable, even though they would only be used within the underground financial system. Digital money like bitcoin could easily be valued for far more than six-figures if entire the shadow economy adopted the decentralized asset.

Hyperbitcoinization: Visions of Bitcoin Fueling the Post Covid-19 Shadow Economy

Cypherpunks Write Code – E-Money & Daemon

The cypherpunks in the ‘90s discussed the rise of a private digital cash system that bolsters market anarchy and a new monetary system. In the 1994 Wired article “E-Money – That’s What I Want,” the editorial describes how the cypherpunks envisioned a brave new world that leverages a digital cash system. “The killer application for electronic networks isn’t video-on-demand,” explained Wired columnist Steven Levy. “It’s going to hit you where it really matters – in your wallet. It’s not only going to revolutionize the net, but it will also change the global economy,” Levy stressed. Back then, no one had heard of Satoshi Nakamoto and people’s concepts of digital cash stemmed from people like the renowned cryptographer David Chaum, the founder of Digicash. Other cypherpunks like Tim May and Wei Dai, however, envisioned a world with untraceable digital cash and the concepts of crypto anarchy.

Hyperbitcoinization: Visions of Bitcoin Fueling the Post Covid-19 Shadow Economy

These visionaries who came before Nakamoto predicted systems that not only increased economic efficiency, but also the ability to transact across any border without censorship. Of course, individuals like Tim May forecasted that an underground electronic cash system could make big problems for the nation states. With an untraceable digital asset, it could destroy the benchmark rates of legal tender, increase tax evasion and money laundering, and disrupt the world’s money supply. If digital cash is just as convenient as today’s credit cards but also facilitates private financial transactions, it will likely continue to grow stronger. But unfortunately, it also will be attacked a lot more as well, as a true untraceable electronic cash system that’s not controlled by a single entity would be the nation states’ archnemesis.

Hyperbitcoinization: Visions of Bitcoin Fueling the Post Covid-19 Shadow Economy

The techno-thriller “Daemon” written by novelist Daniel Suarez describes a system that is similar to decentralized cryptocurrencies like bitcoin. In the novel, an individual publishes a new type of software that creates a cyber-space fueled shadow economy. Essentially, system users are rewarded for developing “decentralized hubs” and peer-to-peer networks by leveraging the Daemon. The very same thing could happen to bitcoin and the crypto economy to where the poor, middle class and even the rich can participate in hiding money from big brother’s watchful eyes. In the novel Daemon, Suarez tells the readers about online web markets that are hidden from the general public and operatives leveraging the financial system to exchange important data. 12 years before Daemon was published, the cypherpunk Eric Hughes also envisioned “anonymous systems.”

“We the Cypherpunks are dedicated to building anonymous systems,” Hughes wrote in 1993. “We are defending our privacy with cryptography, with anonymous mail forwarding systems, with digital signatures, and with electronic money,” he added. Hughe’s continued:

Cypherpunks write code. We know that someone has to write software to defend privacy, and since we can’t get privacy unless we all do, we’re going to write it. We publish our code so that our fellow Cypherpunks may practice and play with it. Our code is free for all to use, worldwide. We don’t much care if you don’t approve of the software we write. We know that software can’t be destroyed and that a widely dispersed system can’t be shut down.

Hyperbitcoinization: Visions of Bitcoin Fueling the Post Covid-19 Shadow Economy
Read Satoshi Nakamoto’s Bitcoin White Paper Here.

Shadow Market Money Could Be the ‘Ultimate Expression of Intentionality’

Of course, a number of people begging governments to approve cryptocurrencies like bitcoin and who hope the status quo adopts a strong digital currency, really don’t want the shadow market associated with the technology. Despite what they think, crypto transactions are still being used to skip taxes today and pay for things on the darknet. For instance, a report published in 2018 finds that illegal activity stemming from BTC transactions accounted for 44% of all transactions. It’s quite possible that bitcoin and cryptocurrencies won’t serve the white markets and traditional bankers and a slew of bitcoiners will be fine with that type of result. In 2015, the founder of Defense Distributed (DD), Cody Wilson told me in an interview how he would probably celebrate bitcoin being driven underground.

“Without a big expression of intentionality to what is considered not the polite things to do with bitcoin — specifically money laundering, specifically private access to your coin, holding your own keys,” Cody stressed during our interview. “Without projects that express these principles, you have nothing of what you want with a revolution. This leaves me to proclaim that most people involved with bitcoin were not serious about that in the first place.”

What do you think about a shadow economy hyperbitcoinization event? Let us know in the comments section below.

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Source: Bitcoinnews.com

Blind Faith in S2F Models: Analysts Question Measuring Bitcoin’s Price With Stock-to-Flow

One of the most bullish charts for predicting the price of bitcoin is the infamous stock-to-flow (S2F) model. The S2F analysis shows the price of BTC could reach $55,000 in the near future. One advocate of the S2F model, the Twitter account known as ‘Plan B,’ wrote a report about the subject and the article was extremely popular and translated into multiple languages. However, skeptics believe the S2F model is faulty and it’s most prominent supporter has said S2F is not entirely accurate, but “an order of magnitude right.”

Also read: Evidence Shows Politicians and Wall Street CEOs Expected the Market Crash Well Before Covid-19

Can We Measure Bitcoin’s Value with Scarcity? Stock-to-Flow Model Suggests Its Possible

There have been hundreds of bitcoin price predictions over the last decade, but most of them stem from people pulling numbers out of thin air. Even when a myriad of analysts and crypto luminaries pick digital currency prices out of a hat and get it wrong, no one really cares. Although, there are a few models and charting techniques that many strategists and traders wholeheartedly believe in, like the signals from Bollinger Bands and Elliott Wave Theory. The analyst known as Plan B (@100trillionusd) has popularized the stock-to-flow (S2F) model, which measures the price of BTC using the number of coins in circulation and the flow or issuance rate. Plan B’s editorial called “Modeling Bitcoin’s Value with Scarcity” has gone viral and has been translated into a variety of different languages.

Blind Faith in S2F Models: Analysts Question Measuring Bitcoin's Price With Stock-to-Flow
Precious metals have been measured with stock-to-flow models for years. Plan B’s popular post called “Modeling Bitcoin’s Value with Scarcity” shows how BTC is the first scarce digital object known to man.

Essentially, S2F divides abundance with demand by treating BTC like commodities such as gold or platinum. So any analyst can use the model to evaluate the current BTC in circulation against the number of coins mined during a specific year. The bitcoin halvings, the period of time when the block rewards are cut in half, play a crucial role in the S2F model. Because the halvings make it harder for miners to stock crypto inventory the division of this rate by the value of measured abundance. Bitcoiners didn’t make the S2F model as it’s been used for quite some time with gold, the commodity with the most S2F ratio. In Plan B’s research article, he notes that bitcoin is the “first scarce digital object the world has ever seen [and] it is scarce like silver & gold, and can be sent over the internet, radio, satellite etc.”

The first stock-to-flow (S2F) chart that can be found in Plan B’s analysis “Modeling Bitcoin’s Value with Scarcity.”

“I calculated bitcoin’s monthly SF and value from Dec. 2009 to Feb. 2019 (111 data points in total),” Plan B wrote in his report. “Number of blocks per month can be directly queried from the bitcoin blockchain with Python/RPC/bitcoind. Actual number of blocks differs quite a bit from the theoretical number because blocks are not produced exactly every 10 minutes (e.g. in the first year 2009 there were significantly less blocks). With the number of blocks per month and known block subsidy, you can calculate flow and stock.” Plan B further states:

I corrected for lost coins by arbitrarily disregarding the first million coins (7 months) in the SF calculation. More accurate adjusting for lost coins will be a subject for future research.

Plan B’s S2F Model Predicts Bitcoin’s Price Will Touch $55K – Skeptics Say S2F Model Surrenders People to Beliefs of the Crowd

Plan B’s report concludes that the “[S2F model predicts a bitcoin market value of $1 [trillion] after next halving in May 2020, which translates in a bitcoin price of $55,000.” However, not everyone thinks the S2F model is accurate and a number of skeptics have attempted to invalidate the S2F concept in relation to bitcoin’s price.

Crypto Twitter and digital currency forums are filled with S2F skeptics who think the model is pure hopium and silly.

A recent report published on April 1, by the Seattle-based crypto hedge fund called “Lost in Space – Bitcoin and the Halving,” describes why SF2 econometric models are too simplistic. The firm Strix Leviathan details halving theories and stock-to-flow models could be false narratives as the report underlines that people should “not [exert] blind faith in one specific outcome.”

“Doing so leaves one’s investment subject to the whims and beliefs of the crowd while surrendering returns to the randomness of luck,” wrote Strix Leviathan portfolio manager Nico Cordeiro.

Despite the covid-19 effects on the global economy, BTC prices were initially affected on March 12 (the price dipped to $3,800 per coin) otherwise known as ‘Black Thursday,’ but prices have since risen back above the $7K zone. On April 5, Plan B tweeted a quote from the 19th-century British logician, Carveth Read, which admits predictions are not always correct all the time. The tweet said “‘It’s better to be approximately right than exactly wrong’ – Carveth Read. [The] S2F model is not dead accurate, but an order of magnitude right.” The analyst’s S2F model for bitcoin has been criticized on numerous occasions and especially after the coronavirus shocked the world’s financial system.

Despite the skeptics, a slew of bitcoiners wholeheartedly have faith in the S2F model and ‘stacking sats.’

‘Stock-to-Flow Does Have a Significant Influence on USD Price of Bitcoin,’ Says Report

Still, numerous people believe the S2F model might not exactly accurate, but pretty damn close. Another report published on March 27 tries to invalidate the statistics behind the S2F model, but the report rejects the theories that S2F doesn’t have an important role. “Whilst many tests have been able to be shown to be incorrect or have series errors, we have been able to reject the hypothesis that stock-to-flow does not have an important non-spurious influence on the US dollar price of Bitcoin,” explains the analysis called “Stock-to-Flow Influences on Bitcoin Price.”

“The bounds test for a level relationship in the ARDL model provides very robust evidence to reject the null hypothesis and conclude that stock-to-flow does have a significant influence on the U.S. dollar price of bitcoin,” the report concludes.

Plan B’s latest S2F chart published on Twitter on April 1, 2020.

Despite some criticism from crypto Twitter and other researchers, Plan B still seems confident in his model. “So BTC has been oscillating around S2F value of $7,000 for 2.5 years now,” Plan B tweeted. “Just like before 2016 halving ($300) and before 2012 halving ($6). Excited to see if we are going to add another zero after the halving in May,” Plan B remarked. The researcher also stressed a few days earlier on April 1:

Both bitcoin S2F cross-asset model (based on gold, silver etc) and S2F time series model (historical price path) point to $1 [trillion]+ BTC market cap in 2020-2024 (red circle, where orange and blue line overlap). $1 [trillion]+ market cap translates into $55K+ BTC price.

What do you think about the controversial S2F model? Let us know in the comments below.

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Source: Bitcoinnews.com

2 American Banks Have Failed Since Coronavirus Started Spreading in the US

2 American Banks Have Failed Since Coronavirus Started Spreading in the US

Since the coronavirus started spreading in the U.S., two banks have failed and were shut down by state banking authorities. One was a bank in West Virginia and the other was in the state of Nebraska. The governor of West Virginia has already issued a stay-at-home order due to rising covid-19 cases.

Also read: IMF Declares Global Recession, 80 Countries Request Help, Trillions of Dollars Needed

Banks Failing During Pandemic

The latest bank to fail in the U.S. was a small bank in West Virginia called “The First State Bank.” It was closed on Friday by the state’s Division of Financial Institutions, according to the Federal Deposit Insurance Corporation (FDIC), an independent agency of the U.S. government that aims to protect the funds depositors place in banks and savings associations. The agency explained:

The First State Bank has experienced longstanding capital and asset quality issues, operating with financial difficulties since 2015. The bank’s December 31, 2019 financial reports indicated capital levels were too low to allow continued operations under federal and state law.

2 American Banks Have Failed Since Coronavirus Started Spreading in the US
The Federal Deposit Insurance Corporation (FDIC) announced on Friday that a small bank in West Virginia has failed and has been shut down by the state’s banking regulator. Its deposits and customers have been transferred to another bank.

The FDIC subsequently entered into a purchase and assumption agreement with another bank in the state, MVB Bank of Fairmont, to assume all of the deposits of the failed bank. Depositors of The First State Bank automatically became depositors of MVB Bank. As of Dec. 31, 2019, The First State Bank had approximately $152.4 million in total assets and $139.5 million in total deposits.

The four branches of The First State Bank have reopened as branches of MVB Bank. The agency emphasized that it “strongly encourages bank customers to follow Centers for Disease Control and Prevention guidance on social distancing and utilize online and electronic banking capabilities. In keeping with West Virginia Governor Jim Justice’s Stay-at-Home Order, customers should visit a bank branch only if an in-person visit is essential and only after making an appointment.”

Following the FDIC’s announcement, some people voiced their concerns on social media that more banks will fail due to the pandemic. However, the agency insisted that the failure of The First State Bank was not due to the coronavirus outbreak.

2 American Banks Have Failed Since Coronavirus Started Spreading in the US
Since the first reported covid-19 case in the U.S., two banks have failed and were shut down by state banking authorities: one in West Virginia and one in Nebraska. The FDIC has insisted that the failure was not related to the pandemic that has swept through the states.

First Bank to Fail Since Coronavirus Began Spreading in the US

The first covid-19 case in the U.S. was confirmed on Jan. 21, and the first bank in the country to fail after that was Ericson State Bank in Nebraska. The bank, which had only one branch, was closed down by the state’s Department of Banking and Finance on Feb. 14.

The FDIC subsequently entered into a purchase and assumption agreement with Farmers and Merchants Bank in Milford, Nebraska, to assume all of the deposits of the failed bank. As of Dec. 31, 2019, Ericson State Bank had approximately $100.9 million in total assets and $95.2 million in total deposits.

Prior to The First State Bank and Ericson State Bank, four U.S. banks failed in 2019, none of which were in the first four months of the year. No banks failed in 2018, according to the FDIC.

Do you think more banks will fail this year? Let us know in the comments section below.

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Source: Bitcoinnews.com

Sensorium’s Senso Token Lists on the Top Ten HitBTC Cryptocurrency Exchange

Sensorium’s Senso Token Lists on the Top Ten HitBTC Cryptocurrency Exchange

The move follows a similar listing on the KuCoin exchange and will drive further usage of cryptocurrencies as the innovative Sensorium Galaxy platform is set to attract millions of users worldwide.

Los Angeles, 06 April, 2020: Sensorium Corporation has listed its digital currency Senso Token on HitBTC one of the oldest and most advanced cryptocurrency platforms operating today. The move follows a recent listing of Senso Token on the KuCoin cryptocurrency platform and signals Sensorium’s intention to expand its operations and enable users to engage deeply with Sensorium Galaxy, the unique and industry leading 3D social virtual reality platform.

HiBTC is one of the world’s top 10 and most popular cryptocurrency exchanges. Users can use the token to make Sensorium Galaxy gaming-related purchases and exchange content. Third party developers can use it to create unique in-location environments and customised events for the 3D virtual environment. Supported trading pair includes SENSO / USDT.

Brian Kean, Chief Communication Officer, Sensorium Corporation said: “This listing on HitBTC reflects our ambitious growth plans. We are in negotiations with world-leading artists and venues to create 3D social experiences unique to Sensorium Galaxy and as such as the platform develops we are anticipating millions of users worldwide. The HitBTC listing will provide these users with the means to buy and sell within the games. It also follows a recent listing on the KuCoin cryptocurrency exchange both of which reflect our strong commitment to and ardent belief in the significant future of cryptocurrencies.”

The Senso Token has been developed on the Ethereum network, the global decentralized platform for digital currencies and meets the ERC20 standard, the de facto technical standard for token implementation on the Ethereum blockchain.

Peter Swen, HitBTC, Marketing team said: “As a company fully committed to the advancement and growth of financial technology we are pleased to integrate the Senso Token into our platform. The inroads that the Sensorium Corporation is making into the digital gaming space are significant and as our industry expands we look forward to working with the Sensorium team.”
Sensorium Galaxy brings a new form of entertainment and social engagement to the world by providing multi-user access to 3D virtual entertainment worlds. For instance, users will be able to visit unique concerts and events with friends, attend in real-time, create their own avatars, buy content and interact with their friends and other attendees at the event, all within a 3D world.

HitBTC is a crypto exchange that has over 800 trading pairs. The platform was created in 2013, and provides exchange, custodial and other related services. The UI was developed to meet the needs of the most demanding and sophisticated traders. User security is reportedly secure via stringent security procedures, including cold storage and encryption technology. HitBTC also offers 2-factor authentication and various whitelists. The platform has an LD4 Data Center in London, which has reportedly decreased its data-access latency while expanding the platform’s technical capabilities.

About Sensorium Galaxy
Sensorium Corporation, together with Redpill VR, is currently developing the Sensorium Galaxy social virtual reality platform which enables the seamless broadcast of synchronized virtual reality content to users all around the globe. This platform signals a radical change in the way users can experience virtual reality, moving beyond its previously solitary nature. Sensorium Galaxy enables users to interact with each other as events are either live-streamed or accessed from a library. Sensorium Galaxy also signals an evolution of social networks, with users not confined to one-dimensional platforms, but able to engage and interact with friends and other users in a virtual environment. Sensorium Galaxy will be comprised of themed planets that present users with different options for social interaction.

About Sensorium Corporation
Sensorium Corporation is a technology company that creates digital simulations of real-world venues and virtual worlds in cooperation with its content partners – globally recognized concert venues, clubs and festivals. Investment in the project to date is approximately $70 million, and it has come from a group of EU companies in both the gaming and entertainment industries.
For more information, visit sensoriumxr.com

About HitBTC
HitBTC is a crypto exchange that has over 800 trading pairs. The platform was created in 2013, and provides exchange, custodial and other related services. HitBTC offers a range of APIs such as REST, WebSocket, FIX API. The UI was developed to meet the needs of the most demanding and sophisticated traders. Users can take advantage of rebates and competitive trading fees via the Trading Fee Tier system.

Contact Email Address
ikonnikova@vincipr.com

Supporting Link
https://sensoriumxr.com/

This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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Source: Bitcoinnews.com

Rich Dad Poor Dad Author Robert Kiyosaki: Dollar Is Dying, Buy Bitcoin

Rich Dad Poor Dad Author Robert Kiyosaki: Dollar Is Dying, Buy Bitcoin

Robert Kiyosaki, the author of the popular book “Rich Dad Poor Dad,” talked about the death of the U.S. dollar and how one should take the government’s free money and buy bitcoin. The best-selling author also explained the cost of free money.

Also read: IMF Declares Global Recession, 80 Countries Request Help, Trillions of Dollars Needed

Take Free Government Money and Buy Bitcoin

The author of Rich Dad Poor Dad has chimed in on the impact of the free money the U.S. government is giving to small business owners on the U.S. dollar. From his Twitter account with over 1.3 million followers, he wrote on Saturday: “Death of dollar. People desperate for money. Very sad. If [the] government gives you free money, take it yet spend it wisely. Do not save. Buy gold, silver, bitcoin. Dollar is dying.”

Rich Dad Poor Dad Author Robert Kiyosaki: Dollar Is Dying, Buy Bitcoin

Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. Over 32 million copies of the book have been sold in over 51 languages across more than 109 countries. It was on the New York Times Best Seller List for over six years. The book teaches the importance of financial literacy, financial independence and building wealth through various methods, such as investing in real estate and owning your own business.

This is not the first time Kiyosaki has advocated for bitcoin. In August 2018, he proclaimed that “The US dollar is a scam,” adding that “the dollar is toast because gold and silver and cybercurrency are going to take it out.” The best-selling author was also quoted as saying: “The US Dollar is gone … In the year 2000 there was one currency, the US Dollar. It was called the reserve currency of the world … and then came bitcoin or cybercurrency.”

Rich Dad Poor Dad Author Robert Kiyosaki: Dollar Is Dying, Buy Bitcoin
Robert Kiyosaki, author of Rich Dad Poor Dad, the best-selling book with 32 million copies sold, has been saying that the U.S. dollar is a scam and people should buy bitcoin.

The Cost of Free Money

Kiyosaki’s tweet advocating for bitcoin on Saturday was one in a series responding to the U.S. government’s Paycheck Protection Program (PPP), which promises $350 billion to small businesses affected by the coronavirus pandemic. “Small biz entrepreneurs offered payroll for employees for free,” he tweeted on Thursday, a day before the program was expected to go live. “Example. If company payroll for 8 weeks [totals] $1 million, banks will give [a] $1 million loan. Don’t have to pay back. Entrepreneurs win again. Socialism for rich.”

While emphasizing that most people want free money, even himself, Kiyosaki questioned, “What is the price of free money?” Assuming the role of a financial literacy teacher once again, Kiyosaki asked his Twitter followers how free money could destroy the U.S. dollar. He explained that by definition, “Money is an idea backed by confidence representing work truly done and is exchangeable.” The Rich Dad Poor Dad author concluded: “Paying people not to work destroys confidence in government $ and [the] exchange of $. Trust gold and silver-gods money [and] crypto-peoples money.”

What do you think of Kiyosaki’s advice to buy bitcoin? Let us know in the comments section below.

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Source: Bitcoinnews.com