As Warren Buffett Ditches The Dollar, Max Keiser Believes Bitcoin Could Crack New Record High Soon

By Brenda Ngari – September 1, 2020

The bitcoin price has started the new week trading higher and is presently hovering at around $1.9k, up 0.48%. After the recent drop below $11,400 and subsequent quick recovery following news of FED’s new plan to increase inflation, it is clear that the bulls are determined to push the prices higher.

Just ask the host of Keiser Report — a financial program broadcast on RT —, Max Keiser, who is also a known bitcoin permabull. Keiser recently reasoned that Warren Buffett exiting the US dollar is an indication that bitcoin is on the brink of hitting a new record all-time high.

Buffett’s Move Into Japan Means Bitcoin Is About To Set New Record: Max Keiser

Reuters reported on Monday that billionaire investor Warren Buffett had purchased a 5% stake in Japan’s five top trading firms. Combined, the investment totaled to $6 billion and is indicative of Buffett’s diversification outside of the United States.

Respected industry advisor and entrepreneur, Max Keiser, is interpreting this move to mean that the Oracle of Omaha is “getting out of USD BIGLY”. He then postulated that the US dollar is currently in a downward correction and is actually on the verge of breaking key support.

As USD loses value, Keiser expects bitcoin to post a new high in the immediate future.

Warren Buffett’s new investment in Japan comes after news that he had dumped banks stocks and instead took a position in a Canadian gold mining company, Barrick Gold. His move to Japan also comes in light of the Federal Reserve’s policy shift that will allow inflation to run hotter than normal in a bid to boost the economy. Analysts think the Fed’s new stance will have dire consequences for the US dollar.

Is Keiser’s Prediction Credible?

Max Keiser is known to make ultra bullish forecasts about the bitcoin price. After Buffett bought gold, Keiser predicted that this move would push BTC to $50,000. During that time, Morgan Creek’s Jason William had suggested that Buffett would be buying bitcoin next after his gold purchase.

Nonetheless, Buffett has been an outspoken bitcoin naysayer. He has maintained that he will not be investing in bitcoin or any other cryptocurrency any time soon, even after his luncheon with the CEO of Tron, Justin Sun, earlier in the year.

So, is a full-blown bull run around the corner? Who knows? Technical analysis suggests that $12K is a stubborn barrier that is keeping bitcoin from skyrocketing. Keiser’s prediction, however, is based on investors turning to SOVs like bitcoin, gold, and silver amid a weakening dollar.

As things stand, it’s difficult to tell whether Keiser’s theory is anything to go by. But don’t be surprised if bitcoin actually shatters new highs in the near-term.

Markethive Advertisement

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

Fed’s Inflation Policy Shift Will Greatly Benefit Crypto, Says Ripple CEO Brad Garlinghouse

By Brenda Ngari – August 29, 2020

Two days ago, Federal Reserve Chairman Jerome Powell announced a landmark policy shift to its inflation goal. This implies that the central bank is comfortable allowing inflation to go past its 2% target in the coming years.

According to Ripple CEO Brad Garlinghouse, the Fed’s new approach to inflation is laying the ground for more debasement of the US dollar in the near-term which will ultimately be a boon for crypto.

Federal Reserve Makes Monumental Shift In Monetary Policy Framework

On Thursday (August 27), Fed Chairman Powell announced a major shift in its strategy to the interest rate policy that lets inflation run above 2 percent while keeping the rates lower for an extended period of time. Powell emphasized that the Fed’s main focus now is to boost employment in such a way that benefits the low-and moderate-income communities.

Notably, the Fed’s decision to let inflation run hot is likely to reduce the purchasing power of the dollar which will in turn push the prices of assets like gold and bitcoin higher. True to form, the price of the flagship cryptocurrency jumped 1.9% during Powell’s speech to reach $11,600. The top crypto has since retraced slightly to $11,550.25 at press time.

Fed’s Policy Shift Will Give Crypto A Competitive Edge — Garlinghouse

Commenting on the Fed’s historic decision to spur inflation, Ripple’s Brad Garlinghouse suggested that the move will be highly favorable for the crypto industry.

Garlinghouse is betting that the US dollar will face further debasement in the near-term. As this happens, bitcoin will become more attractive to investors who will flock to it to protect their capital from the weakening dollar. 

He tweeted:

“The pandemic is throwing so many playbooks out the window… yesterday’s action flies in the face of decades of precedent. Signs point to further dollar debasement in the near term (leading to further diversification of assets which will certainly be good for crypto).”

Ultimately, this overwhelming bullishness has a price. The Winklevoss brothers, for instance, have predicted that bitcoin is likely to climb to $500K one day owing to the fact that it is literally the only long-term hedge against the FED-induced inflation. Those who jump on the crypto bandwagon late will be the ones to pay.

Markethive Advertisement

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

Fidelity Launches Bitcoin Fund With Minimum Investment Of $100,000

By Vincent Mislos – August 27, 2020

Fidelity investments said in a new filing to the Securities and Exchange Commission that it is launching a Bitcoin fund — the Wise Origin Bitcoin Index Fund I. Managed by a new business unit called Fidelity Digital Funds, this will only be available to qualified purchases with a minimum investment of $100,000. Clearly, the fund is for wealthy investors.

In a statement via Bloomberg, the filing represents Fidelity’s long-term commitment to the future of blockchain technology and to make assets such as Bitcoin more accessible to investors.

Fidelity first dealt with Bitcoin in 2014 and started Fidelity Digital Assets two years ago. This unit manages funds for hedge funds, trading firms, and family provinces. The publication noted that Fidelity is one of Bitcoin’s high-profile proponents on Wall Street.

Fidelity expects demand for this fund because based on the results of its recent survey of 800 institutional investors, 36% of them already invested in digital assets while 60% said they are open to having digital assets within their portfolio.

The firm’s latest announcement is bullish for Bitcoin, whose proponents felt Wall Street has generally disregarded Bitcoin as an asset class because of concerns related to its use by criminals to launder money. (It should be noted that authorities relish criminals to use Bitcoin because tracking is easier).

That institutional investors would soon heavily flock to Bitcoin is a widely expected outcome as the benchmark cryptocurrency continues to attract mainstream attention. Right from when Paul Tudor Jones said he would include Bitcoin in his portfolio, the number of large investors and companies coming to the crypto space has recently increased. Macro investor Raoul Pal called Bitcoin a store of value necessary to hedge against inflation.

The trend to buy Bitcoin and gold stems from the looming economic uncertainty and the weakening of the dollar. A publicly-listed billion-dollar firm called MicroStrategy has allocated approximately $250 million of its dollar reserves into buying Bitcoin equal to that amount. The firm attributed the decision to the decreasing value of the dollar. “If you have large dollar values and you’re hoping for any kind of return on them, that’s faded,” -MicroStrategy.

Markethive Advertisement

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 Vincent Mislos and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

IRS Intends To Ask Every American Tax Filer About Crypto Transactions In 2020

By RTTNews Staff Writer | Published: Published: 8/24/2020 10:19 AM ET

The U.S. Internal Revenue Service (IRS) intends to ask every American tax filer about their cryptocurrency transactions and investments in 2020 filing. This was revealed in a draft Form 1040 released by the IRS for U.S. individuals to file their income tax return for 2020.

After asking for personal details, the draft form asks, "At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?"

This is the latest move by the tax regulator to show its seriousness on taxing cryptocurrency transactions and investments. The form and instructions are only a draft, which are generally subject to approval by The Office of Management and Budget (OMB) before they can be officially released.

The IRS continues to warn taxpayers, who do not properly report virtual currency transactions, that they will be liable for tax, penalties and interest and in some cases they could be subject to criminal prosecution.

The IRS treats virtual currency as a commodity or property, and not as real currency, for federal tax purposes. Therefore, virtual currencies are also subject to capital gains laws.

The current guidance for taxpayers is to file each and every transaction executed using a cryptocurrency. The IRS has also increased enforcement activities against taxpayers who "misreport" their cryptocurrency transactions.

Last year, the IRS had sent out multiple compliance letters to investors of virtual currencies such as Bitcoin, whose tax return information did not match data reported to the IRS by third parties such as employers and banks.

Earlier in July 2019, the IRS had sent letters to crypto investors advising them to report and pay income taxes or file amended returns for transaction not reported properly. These were "educational letters" to more than 10,000 taxpayers to encourage them to make the filing or amend their filing.

For comments and feedback contact: editorial@rttnews.com

Markethive Advertisement

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

Article reposted on Markethive by Jeffrey Sloe

California Court Ruling Solidifies The Crypto Adage “Not Your Keys; Not Your Coins”

By Erie Maxwell – August 23, 2020

The self-proclaimed “Bitcoin obsessive lawyer” Justin Winston Ono Wales takes the saying “Not your keys; not your coins” seriously. He used the recent ruling in the Archer v. Coinbase case to explain just how important the old crypto adage really is.

The Archer v. Coinbase case illustrates that if you do not control your own private keys, a number of things can go wrong that would lead to the loss of your funds. And what’s worse is that there is nothing that the law can do to help you recover the losses.

Coinbase user and plaintiff Darrell Archer sued Coinbase for refusing to provide him with Bitcoin Gold he believes he’s entitled to after a Bitcoin fork.

Justin Wales lays out his analysis and explains the pitfalls of not holding your own coins in a Twitter thread.

“‘Not Your Keys, Not Your Coins’ is officially case law thanks to a new California appellate court decision.”

Wales explains that the plaintiff expected to receive a large number of Bitcoin Gold but his own actions ultimately prevented him from ever controlling the new forked coins.

“As we know, BTC can be forked into new currencies for lots of reasons by damn near anyone. BCH, BSV, Bitcoin Gold are examples. As someone that holds Bitcoin you’re entitled to an equivalent number of forked coins. In other words, your Bitcoin includes the value of all its forks. But accessing your forked coins is only guaranteed if you hold your own private keys! If you let someone else custody your crypto it is up to their discretion whether to give you your forked assets.”

The plaintiff expected Coinbase to accept Bitcoin Gold on its platform and handle all of the logistics involved with the fork. But Bitcoin Gold was never included by Coinbase.

“Coinbase honored BCash, but not Gold. That’s what this case is about. Facts:

A person kept 350 BTC on Coinbase and wanted the equivalent Bitcoin Gold (valued at $159k at its height) but Coinbase said no. Dude sued claiming breach of contract, conversion, and negligence but the Court rejected all these arguments because it found that Coinbase had no obligation, contractual or otherwise, to support every fork of bitcoin.”

The Court ruled that Coinbase was not responsible for any of the ‘Bitcoin Gold’ the plaintiff was demanding because he had other reasonable options to hold his original coins.

“There is no requirement that investors keep their coins in exchanges; they can always withdraw the coins to their own private wallets.”

The case is a milestone in the blockchain industry because it provides precedent and solidifies the constantly repeated idea that a crypto custodian could cause you to lose it all and there is nothing that can be done about it. 

“In other words: “Not Your Keys, Not Your Coins” is now precedent in California and I imagine will be highly instructive for other jurisdictions hearing similar claims.”

As Justin Wales puts it, “TL:DR: HODL your own damn coins!”

Markethive Advertisement

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

$11,600 & $11,200, Two Bitcoin (BTC) Support Levels to Watch in Aug.

John P. Njui   •   BITCOIN (BTC) NEWS   •   AUGUST 22, 2020

In summary:

• There is only one week left in the month of August.
• $11,600 and $11,200 are two support levels to watch for the remainder of the month.
• A monthly close above any of these two levels could mean a continuation of Bitcoin’s bullish narrative.

It is Saturday once again and the daily Bitcoin trade volume has gone contrary to the popular observation of decreasing during the weekend. According to Coinmarketcap.com, Friday’s 24-hour trade volume was approximately $20 Billion. The same Bitcoin trade volume currently stands at $24 Billion thus indicating a positive anomaly in the sense that BTC could benefit from the increased trading activity.

$11,600 & $11,200, Two Bitcoin (BTC) Support Levels to Watch in Aug.

With respect to the price of Bitcoin, there is approximately one week left in the month of August and a monthly close above either $11,600 and $11,200 would be bullish for BTC. To note is that December 2017 was the last time Bitcoin opened and closed a month above both price levels. However, back then, the weekly indicators pointed towards a correction that would start in January 2018.

Checking the weekly BTC/USDT chart once again, it can be revealed that Bitcoin still has some bullish momentum and a monthly close above either $11,200 or $11,600 would help maintain Bitcoin’s bullish momentum.

(Click image for larger view)

Also from the weekly BTC/USDT chart above, the following can be observed.

• Trade volume is still in the green for a 7th straight week beginning in July.
• The weekly MACD is yet to show signs of exhaustion.
• However, the weekly MFI is hinting towards an overbought scenario with a possibility for sideways or a minor retracement for Bitcoin in the month of September.

It’s Q4 2016 all Over Again for Bitcoin

In an early August tweet, Bitcoin analyst Willy Woo had pointed out that the Bitcoin bull market began in April 2019 and that we are currently in a situation similar to the fourth quarter of 2016. Below is his tweet analyzing Bitcoin.

Bitcoin Still Has More Room to Grow

Going by Mr. Woo’s analysis and the weekly chart shared above, it can be loosely concluded that Bitcoin still has room to grow in the markets. Given that the last bull cycle peaked in December 2017, it can be concluded that there are at least another 12 months of positive BTC market action in store for crypto traders and investors.

As with all Bitcoin analyses, BTC traders and investors are requested to have an eye out for any major world events that could skew the price of Bitcoin. Given that we are in the midst of a Global Pandemic, a major increment in COVID19 cases would slow down Bitcoin’s bullish climb or even cause a crash like in mid-March.

Markethive Advertisement

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

Article re-posted on Markethive by Jeffrey Sloe