A revolution of epic proportions

Monday, 30 April 2018
Melbourne, Australia
By Bernd Struben

  • A race to the top
  • The towers of the future
  • What to expect

It defies all five of our senses.

You can’t touch it. You can’t smell it. You can’t taste it. You can’t hear it. You can’t even see it.

Yet its global value currently sits at US$160 billion.

What is it?

If Gollum had asked Bilbo Baggins this riddle in The Hobbit he might well have stumped him. And kept hold of ‘my precious’.

You, on the other hand, may have already guessed the answer.

Bitcoin.

But bearing in mind the old adage, what you see is what you get, how can something so intangible be worth so much?

The answer, as crypto guru Sam Volkering highlighted at Port Phillip Publishing’s ‘Paradox of Prosperity’ conference, lies largely in its scarcity. That, and in the banks’ inability to leverage more bitcoin out of thin air.

You’ll be hearing more from Sam, as he’s taking over the Friday edition of Port Phillip Insider from publisher Kris Sayce. Sam’s also the editor of four paid advisory services. That includes the highly popular Secret Crypto Network.

(Details here.)

We’ll get back to the riddle that is bitcoin, right after a look at the markets.

Markets

Over the weekend the Dow Jones Industrial Average closed down 11.15 points, or 0.05%.

The S&P 500 gained 2.97 points, or 0.11%.

In Europe the Euro Stoxx 50 index finished up 12.75 points, or 0.36%. Meanwhile, the FTSE 100 gained 1.09%, and Germany’s DAX rose 80.40 points, or 0.64%.

In Asian markets, Japan’s Nikkei 225 is up 148.26 points, or 0.66%. China’s CSI 300 is closed for Labour Day holiday. The CSI 300 re-opens on Tuesday, 2 May.

In Australia, the S&P/ASX 200 is up 29.96 points, or 0.50%.

On the commodities markets, West Texas Intermediate crude oil is US$67.99 per barrel. Brent crude is US$74.35 per barrel.

Gold is trading for US$1,324.95 (AU$1,747.96) per troy ounce. Silver is US$16.54 (AU$21.82) per troy ounce.

And as we’re on the topic of bitcoin today, have a look at the one month price chart below:



chart image

Source: CoinDesk
Click to enlarge


After hitting a low of US$6,620 on 6 April, one bitcoin is currently worth US$9,343.80. That’s a 41% gain in just over three weeks. Yet the mainstream financial news has gone almost quiet on it.

So how about the Aussie dollar? It’s worth 75.80 US cents.

Don’t lose this key!

Now…back to bitcoin’s scarcity.

There will never be more than 21 million bitcoins. That limit was part of the original blockchain design by creator — or creators — Satoshi Nakamoto.

As of today, crypto miners have produced roughly 16.8 million bitcoins. That leaves about 4.2 million out there in the ether, waiting to be mined. While bitcoin is divisible — you don’t need to buy or trade in whole bitcoin units — that final number remains fixed. Forever.

That sets it well apart from fiat money.

Central banks, as you know, can print off billions more dollars, euros, or yen at the drop of a hat. In some cases, this is to meet increased demand for a currency. In others it’s intended to stoke inflation, or otherwise manipulate the currency markets.

And then there’s fractional reserve banking. This is where your local neighbourhood bank magically turns $100 into $1,000. And they do this ever time they make a loan. (Although the reserve requirements vary between nations and even within the banking industry, 10% is a common obligation.)

This means that there is far less actual cash in the world than what you might believe.

For example, that $10,000 term deposit your bank is safeguarding for you likely only has $1,000 in it. The rest of your money has been lent out to become someone else’s debt. And rest assured, the bank is charging them a lot more than the 2.5% you’re getting on your term deposit.

As Sam Volkering points out, this is not the case with bitcoin. There is one bitcoin — even if you can’t touch it — for every one that you own. Not 10…or 50…or 100.

But as Sam also cautions, bitcoin can be as easy to lose as your cash…or even easier. Rumour has it as much as 30% of the 16.8 million bitcoins already mined have been lost. And they’ll likely never be recovered.

This can happen if you send your bitcoin to the wrong recipient address. Or if the computer or external drive you’ve stored your coins on crashes. Or if you lose the flash drive or even the piece of paper on which you’ve recorded the key.

In the world of cryptocurrencies there’s no recourse for sending your bitcoin to a wrong address, or for a lost key. Gone is gone.

Safeguarding your bitcoin, and other cryptos, is one of many topics Sam covers in detail over at Secret Crypto Network. And it’s especially important if you plan to hold onto your virtual tokens for any length of time. That secret little hiding place you have today may turn out to be a secret from you as well after a few years have gone by.

You can find out more — a lot more — about buying, selling, and storing cryptos here.

A 62.14% gain last week…what now?

Of course, the crypto world has grown far larger than just bitcoin. Which means that there is almost always a rising star among them at any given time. Even when most other cryptos are falling, you can make huge gains…if you get into the right one.

At the moment, EOS is running ahead of the pack. And while it’s the fifth largest crypto by market cap, few people have heard of it.

From CoinDesk, last Wednesday, 25 April:

EOS is reporting gains on a down day for the wider crypto markets and may soon rally to fresh all-time highs.

As of writing, the world’s fifth largest cryptocurrency by market valuation is changing hands at $14.61 — up 7.6 percent in the last 24 hours, according to CoinMarketCap.

Meanwhile, most other major coins are flashing red. For instance, bitcoin is reporting 1.2 percent drop, bitcoin cash and IOTA are down 12 percent each and names like ethereum (ETH), Ripple (XRP), cardano and stellar are down at least 8 percent each.’

The article included the handy graphic below:



chart image

Source: CoinDesk
Click to enlarge


As you can see, EOS gained an impressive 62.14% over the week. That’s as of last Wednesday, when it was trading for US$14.61.

How has it done since then?

At time of writing one EOS token is worth US$19.68 — a 34.7% gain following on a stellar run.

With figures like this in mind, you can see why Sam has already made 11 different crypto recommendations at Secret Crypto Network. You never know which one will be the next to rocket in price.

The ‘Paradox of Prosperity’ video package

By the way, the film crew we hired to record every presentation, every breakout session, and every one-on-one interview at our ‘Paradox of Prosperity’ conference is busily putting the whole package together. Along with a complete written transcript, if you prefer to read at your own pace.

That includes two gangbuster presentations from Sam Volkering, and the taped interview I conducted with him afterwards.

I’ll let you know as soon as that’s available to order.

And finally, here’s this from The Australian Tribune:

Canada Joins China on US Priority Watchlist

O Canada! What have you done?

Poor border enforcement. Counterfeit goods. Shoddy intellectual property protection for US pharmaceuticals…

The laundry list of accusations from the Trump administration is unlikely to smooth the renegotiations of NAFTA currently underway. But, perhaps, that is precisely Trump’s intention. Rattle your opponent, push hard, then reach a new agreement more suited to US interests.

The Trump administration has labelled…’

If you’re fed up with sanitised, politically correct dogma cut and pasted from one mainstream source to another then The Australian Tribune is for you.

And it’s absolutely free.

Sign up here to get The Australian Tribune delivered free to your inbox five days per week.

You can visit our website at https://www.theaustraliantribune.com.au/ to read the complete article above now.

Cheers,
Bernd