Monday, June 14, 2021

Bitcoin Blasts Through $8,000… and In Zimbabwe Tops $13,500 As Mugabe Regime Crumbles Again

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by Jeff Berwick, The Dollar Vigilante:

Bitcoin has just blasted to another new all-time high of $8,055!

But, that is the US dollar price.

Bitcoin often trades at higher prices in relation to other currencies, but none so much lately as the Zimbabwean “New Zim dollar.”

Here’s a little tip. If you have already run one of your fiat currencies into the ground, putting adjectives like “Strong”, as in Venezuela’s “Strong Bolivar” or “New” as in the Zimbabwe “New Zim dollar” in front of the name doesn’t make it automatically better.

In fact, if you have the same corrupt, criminal, communists running the country you will very quickly end up with wheelbarrow money again.

This is what is currently going on in Zimbabwe, where thousands of people have been protesting and uprising in the streets of Harare, after president Mugabe failed to announce his expected resignation today.

The Republic of Zimbabwe has been controlled by a dictating regime led by Robert Mugabe who regained control more than three years ago and has been causing extreme hardship as a result of his party’s reckless government spending which has sent public debt surging as a consequence of the country’s massive money printing.

To finance its deficits, the government of Zimbabwe created a currency called the “New Zim dollar.” This, despite being issued at par to the US dollar, trades at a significant discount to the US dollar.

The insane inflation rate of this new currency currently sit at 348{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} per year and is, in turn, constantly and rapidly expanding the nation’s money supply.

This new currency will eventually suffer the same fate as all fiat and the previous Zimbabwe dollar which was suspended indefinitely as of April 2009 after inflation levels in the nation soared over 5 billion percent.

But, because this isn’t the first time the nation has been sold down Victoria Falls, the oppressed citizens of this African nation have turned to bitcoin to help preserve their wealth and purchasing power.

Similar to the way Venezuelans have begun mining and investing in bitcoin because of president Maduro’s socialist regime who had hyperinflated the bolivar and forced many in the country to have to kill stray animals to survive because of a severe lack of food, the Zimbabwean military began seizing power this past Wednesday and has caused the price of bitcoin to skyrocket to the equivalent of $13,500 US!

That’s an almost 70{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} premium over exchange averages!

While the recent record highs in bitcoin have brought lots of newcomers into the cryptocurrency markets, many common investors are unaware of just how incredibly high the premiums for bitcoin can go especially in places where the local fiat currency has been largely debased like in Zimbabwe.

That is the beauty of the free-market at work. It has allowed people who previously couldn’t, to order food and supplies online by paying in bitcoin. Many have no choice but to use cryptocurrency since people cannot send money outside the country or pay for international transactions using formal banks.

After all, bitcoin was created as a peer-to-peer payment system that allows common people to circumvent the need for local and debased fiat currencies.

Bitcoin knows no borders, nor can it be stopped by a forceful government agency because it doesn’t exist in any one central location.

And one of it’s most valuable attributes is that it cannot be inflated because there are a finite number of bitcoins that will ever be created.

What is currently going on in Venezuela and Zimbabwe will happen in Europe, the US and throughout the West… it’s just a matter of time.

Read More @ TheDollarVigilante.com

Bitcoin Drops to $5,860, Lowest since October 2017. True Believers with Fake Hopes Got Cleaned Out by Early Movers

by Wolf Richter, Wolf Street:


Down 70% from the peak. This is just not fun anymore.
Bitcoin dropped to $5,860 at the moment, below $6,000 for the first time since October 29, 2017. It has plummeted 70% in six months from the peak of $19,982 on December 17. There have been many ups on the way down, repeatedly dishing out fakes hopes, based on the ancient theory that nothing goes to hell in a straight line (chart via CoinMarketCap):

What Will You Be Holding When The Dollar Dies?

from SGTreport:
Thanks for tuning in for this wide ranging update with the founder of Smaulgld, Louis Cammarosano.

https://www.youtube.com/watch?v=nNG1uoSzGAo

Bitcoin Blasts Above $12,000, Soars To New All Time High

from Zero Hedge:

After slowing down fractionally in its relentless ascent after topping $11,000 for the first time less than a week ago, Bitcoin has brushed off the weekend selloff and on Wednesday morning (Asian time) exploded higher following a renewed burst of buying out of the usual Asian suspect exchanges – and Bitfinex – surging above $12,000 for the first time ever, and trading at a new all time high of $12,200 at publication time.

For those keeping track, this is how long it has taken the cryptocurrency to cross the key psychological levels:

  • $0000 – $1000: 1789 days
  • $1000- $2000: 1271 days
  • $2000- $3000: 23 days
  • $3000- $4000: 62 days
  • $4000- $5000: 61 days
  • $5000- $6000: 8 days
  • $6000- $7000: 13 days
  • $7000- $8000: 14 days
  • $8000- $9000: 9 days
  • $9000-$10000: 2 days
  • $10000-$11000: 1 day
  • $11000-$12000: 6 days

The skeptics can take heart: at least the rate of ascent appears to have slowed down.

There has been no news to catalyze the move, and as most recent buying, it has been attributed to excitement over the upcoming December 10 CFTC bitcoin futures launch.

And speaking of bitcoin futures, the CEO of ICE, the owner of the New York Stock Exchange, Jeff Sprecher told a Goldman investor conference on Tuesday that that “we may be stupid for not being first on that” adding that “I don’t have the answers, I wish I knew” how the investments will evolve, he said. “I don’t know what to make of cryptocurrencies.”

In a surprising tangent, Sprecher gave another impetus for the bulls when he questioned the existence of natural sellers of bitcoin futures, or investors who short the contract, noting that much of the wealth in the bitcoin world has been amassed by data miners in China and algorithmic traders.

“To short that, that means they’re deciding to exit” the market through a futures market, Sprecher said. He decided that may not be a good scenario for one of his exchanges.

They may have a reason to do that if there are additional state crackdowns: one emerged on Wednesday morning in South Korea, where according to a Yonhap report a private association of cryptocurrency exchanges in South Korea which has emerged as one of the most active trading venues for cryptocurrencies, said that it will voluntarily restrict cryptocurrency transactions with bank accounts starting next year, in a bid to prevent such transactions from being used for money laundering and other crimes.

However, contrary to some headlines that South Korea would restrict crypto transactions, all this means is that the Blockchain Association, an industry group of some 30 cryptocurrency exchanges, including Bithumb and Korbit, said it will encourage customers just one bank account in the selling and buying of cryptocurrencies.

Under the voluntary restrictions, which will be implemented Jan. 1, customers will be discouraged from using multiple bank accounts, the association said. Currently, customers use virtual bank accounts when they buy or sell cryptocurrencies.

South Korea is home to one of the world’s largest bitcoin exchanges, with about 1 million people estimated to trade the digital currency.

Read More @ ZeroHedge.com

The Empire State Moves Against Bitcoin

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by Jim Rickards, Daily Reckoning:

Bitcoin got hammered yesterday after New York Attorney General Eric Schneiderman announced an investigation into some of the major cryptocurrency exchanges.

I’ve been warning about a coming government crackdown on bitcoin for several months, and now we’re seeing it happening around the world.

From China to Japan to South Korea and here in the U.S., the regulators are closing in on bitcoin. And all those who thought their bitcoin was invisible to the IRS are getting a rude awakening these days.

Bitcoin was the classic bubble. Market bubbles are nothing new. In the 17th and 18th centuries we had the Dutch tulip bubble, the French Mississippi bubble and the U.K.’s South Sea bubble.