Investment/Trends

China bitcoin arbitrage ends as traders work around capital controls

"The price gap between bitcoins trading in Chinese yuan and those sold for other currencies has evaporated in recent days, highlighting the porous nature of China's capital controls. A key driver of the price gap was China's capital controls, which make it difficult for speculators to swap yuan proceeds from the sale of high-priced Chinese bitcoins into dollars. Analysts say the price convergence also reflects the rapid evolution of the bitcoin market, which began with technology enthusiasts but quickly expanded to include those with the financial know-how to evade China's strict capital controls." Continue reading →

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2013: Year Of The Bitcoin

"Although bitcoin has attracted a lot of attention in the last few months, Babin-Tremblay pointed out that the currency actually started to gain popularity earlier this year as a result of the Cyprus banking crisis. In March the government of Cyprus announced a bail-in for banks, meaning that the financial institutions would have to impose losses on their shareholders, debt holders and even large depositors. After the bail-in was announced people ended up rushing to their bank accounts to withdraw funds. Many put the money into bitcoin, where governments could not touch it. 'Bitcoins were growing slowly until Cyprus. Cyprus was the catalyst for the big increase in the price,' he said." Continue reading →

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Korea decides not to recognize Bitcoin as real currency

"Korean financial authorities said Tuesday that they have decided not to recognize Bitcoin, or cyber currency, as a real legal currency. The conclusion came after a week of debate among officials of the Ministry of Strategy and Finance, the Bank of Korea, the Financial Services Commission and the Financial Supervisory Service. Officials said Bitcoin, which can be traded between individuals online without going through financial institutions such as banks, does not meet standard regulations governing the transactions of currencies via the Internet or commercial institutions. A Bank of Korea official said the currency has been facing high volatility as it does not have an 'intrinsic value.'" Continue reading →

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Keiser Report: Bitcoin Battle

"In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the bitcoin price plunge as Baidu ditches the crypto currency and China bans it for financial firms. Unnoticed at the same time, Germany declares bitcoin to be private money and Merrill Lynch claims it can replace money transfer systems like Western Union. In the second half, Max interviews Dr. Christos Vlachos, CFO of the University of Nicosia, which is now accepting bitcoin as payment and he explains how the volatility in the price won't matter to the university. They also discuss Dr. Vlachos' hope to turn Cyprus into a bitcoin hub." Continue reading →

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Croatian central bank establishes that Bitcoin is legal in Croatia

"Croatian national bank (CNB) gave its opinion that Bitcoin is legal, and the most notable mention was a piece on Bitcoin that got aired on 19:30 national television news on Monday. CNB took the very liberal stand that echoes European central bank document on virtual currency schemes from October 2012, noting that Bitcoin is not illegal in Croatia. They noted that it is not electronic money since it's not debt to the issuer (although it has some similarities with electronic money), and that it is not legal tender in Croatia but can be legally used." Continue reading →

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Bill Bonner: Is Bad News Good News for US Stocks?

"Everyone knows that even a little cutback in the Fed’s buyback program should mean falling stock and bond prices. A trillion dollars a year is a lot of money – in fact, it’s 7% of GDP. Imagine a corporation with annual revenue of $100 billion. Imagine that it buys back its own shares at the rate of $7 billion a year. Then try to imagine what would happen to the share price when the largest single buyer drops out. It doesn’t take a genius to figure it out. Even Fed economists can see it. That’s why they won’t taper. And everybody knows it. That’s why bad news is now good news. And good news is good news. Everything Is Good News!" Continue reading →

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Top Hedge Fund Manager on Global Equity Trends and Blown-Up Markets

"Dr. Conrad certainly participated successfully in his era, and his hedge fund uses the latest diversified strategies and instruments around the world to achieve further success today. He's even purchasing farmland and is expanding his commodity positions generally because he believes US equity markets are going to underperform considerably in the next decade. In today's hyper-regulated environment, the kinds of non-regulated, private, diversified strategies that Dr. Conrad employs stand as testimony to diversifying broadly over assets and instruments. Rockier times are surely coming, though not before a 'Wall Street Party' that may elevate equity positions considerably." Continue reading →

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World powers react to the Bitcoin boom

"World powers have scrambled in recent weeks to react to the rise of Bitcoin, a decentralised digital currency created in 2009. China banned its banks from providing related services and products on Thursday. Meanwhile, on Thursday the French central bank warned against using Bitcoin, because of its volatility and lack of regulation. However, Bank of America Merrill Lynch said in its first research report on the currency that it had the potential to become a major means of payment for ecommerce and a serious competitor to traditional payment methods." Continue reading →

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Your Trip on My Time Machine

"How fast and how far could interest rates rise? How soon would they impact other sectors of the economy? How can you profit from this powerful megatrend? On a quest for the answers, I invite you to a voyage through time: We will visit five critical — and incredible — periods of the past. We will return for a reality check of the even more incredible present-day reality. And then, we will take a quick trip into the future to see, first hand, a scenario that we believe is absolutely unavoidable. Our first stop is over a half century ago." Continue reading →

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