Gold Hold; Bitcoin Under Pressure
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I received the email below this morning and wanted to address the comments. Â
“For the first time since August 22nd, the USD price of Bitcoin has dropped below $4,000 -- down over 20% from its record highs on September 1st. Crackdowns by China (on ICOs and more recently confusion over Bitcoin exchanges) combined with JPMorgan's Jamie Dimon's comments today saw selling pressure extend as China opened. Maybe you should be worried about tax-evading frauds such as Bitcoin that are going broke as we speak.”
Markets rally and sell off all the time and I would not call Bitcoin or the cryptocurrency space a fraud or a tax-evading scam. The technology is already being used by China and many others, and if you listen closely, you will hear the term Blockchain used on IBM commercials. Governments don’t like them because they take away their power to manipulate fiat currencies.
There are many bad people that used to accumulate cash that was just as illegal as using the cryptocurrencies. The biggest problem is the change from the way we have always done things, which is why the world is in such a mess. The technology will help us eliminate or at least cut down the power of the worst organizations in the world, the Fed.
We know that markets go up and down just has gold has done for years. Tuesday gold held support and rallied moving back towards $1,340 as expected. The bull market in gold looks to have started but the cryptocurrencies are a viable competitor for those dollars. One sell-off in either does not signify the death of either.