Geopolitical Turmoil good news for Bitcoin?

in bitcoin •  7 years ago  (edited)

For those of you that don't believe Bitcoin is a store of value, check these charts out:

This is a daily chart of Bitcoin over the last couple months. Specifically check out the price action over the last 4 days.

Straight up.

Now contrast that with this chart of the S&P U.S. Stock Index:

Again this is a daily chart covering the last couple months, but look specifically at the last 4 trading days.

As you can see it has been pretty rough in the stock market over this time, almost straight down.

More to the story...

Obviously there is more to this situation than just geopolitical uncertainty as Bitcoin is coming out of a period of uncertainty regarding Bitcoin Cash and SegWit.

That combined with massive demand has created a moon shoot for BTC.

However, it is interesting to note that Bitcoin seems to be moving inversely to the stock market and more in line with gold.

Specifically because Bitcoin has often been referred to as digital gold because it tends to behave more like an asset than an actual currency.

Digital Gold indeed!

It seems as global uncertainty spikes, so does the price of Bitcoin.

Bring on the uncertainty, from a purely Bitcoin price perspective! :)

Stay informed my friends.

Image Sources:

https://bittrex.com/Market/Index?MarketName=USDT-BTC

http://stockcharts.com/h-sc/ui

Follow me: @jrcornel

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Hey @jrcornel, in my opinion, geopolitical unrest is a major driver, but only one of the many reasons due to which bitcoin has soared to the highest it has.
1- Changing outlook of people towards crypto currencies as a whole.
2- Acceptance of bitcoin at major relailers and merchants, across the globe.
3- A wave of hype and anticipation for bitcoin to reach $5000 mark in the short term.
4- Segwit uncertainties out of the picture.

In times of uncertainty, money looks for safety. Traditionally that has been metals but more so now, people are viewing crypto as a store of value and as a safe haven.

Indeed @grizgal. Totally second your take on the crypto being a store of value. But this value is also very subjective and demand/hype driven. Don't you feel so?
I mean these new crypto firms raising hundreds of millions of dollars in their ICOs, with no proof of concept. My mind boggles to comprehend. Cryptocurrently that solves some of the real world issues are the once which are in true sense the gold mine of value, or as you said a "safe heaven". Let me know what do you think of this? Peace..!!

I completely agree. There are around 981 different t coins now, most of which add no value and solve no real world problems. ICOs (as you mention) are raising billions with a bear a loose concept. I think people have seen prices go up and are scared of missing out, so but anything.
When the market turns there is going to be a blood bath but when the dust settles, those remaining will be a part of the future!

Well said @grizgal..

I think the latest growth is related to the points you mentoined. It’s really interesting because I think we cannot just overtake the exact same rules from “normal” markets to crypto... There aren’t any geographic borders any more and therefore I don’t think that it will behave the same as a stock market in traditional way - very interesting times! Well written article also:)

Thanks for the great info as always.

You got it!

:)

Interesting correlation. Seems money will flow from stocks to virtual currencies when geopolitical tension rises as a safe haven. Perhaps even over taking gold one day, much to the chagrin of all the gold bugs and bullion hordes ;)

Yes, good analysis. And if you look at the total amount of money pouring into the markets the banks are sure to follow (if they're not already going in deep along with governments). But hey, if you're holding a good amount of bitcoin, I guess that's good news for you.

I think there's something to be said about that. A few years back - when I traded options - I spent some time comparing news stories about war and terror to the stock movements of the biggest weapons/military equipment providers. The correlation was clear. Great post.

Thank you. It's interesting that Bitcoin has become a store of value to investors. Although, Bitcoin seems to go up no matter the environment lately. :)

I know. I'm still very curious to see how the banks entering the crypto market will affect the whole thing. It's a bit disturbing to think that one (1) financial institution has the power (at least theoretically) to dump huge amounts of coins in one chunk.

haha...the biggest buyers and holders of bitcoin is wall street...the fight is against namely Eth allegedely Russia and China (look out for NEO)..They buy bitcoin just to maintain the huge gap between the other coins...who do you think let all this freedom of making coins be...the (g)banksters!! hahaha...

haha ... when u know insider info u will know it can only go up :)) ...on long run 99.95% of all crypto will convert to the top 5 coins...then we will be at 1 minute before midnight ...

You think so?

I believe so, yes! the mujahedin got unprocessed uranium now smuggled from Afghanistan by the CIA...it will be a last card to use but...it will be

For your support i do wanna share the proof check this out!

Pls do follow me @pvhittalamni

https://steemit.com/bitcoin/@pvhittalamni/minergate-com-mining-bitcoins-everyday

  ·  7 years ago (edited)

I can tell you that gold and silver have been going sideways for sometime now and during this crisis BTC has acted just like an independent free market asset that is a store of wealth and not tied to any government. Physical gold and silver should be keeping pace with BTC because they have very similar properties. However, they are not because the gold and silver markets are bridled by paper sellers who can hold the price down even during a crisis like this. When the big boys get their hooks into BTC watch out for the same thing. I don't know if there is anyway to prevent short selling of crypto currency but it should be looked at. I think you are right in your analysis that with the world in crisis the stock market goes down and BTC goes up but BTC has been outperforming gold every step of the way. Gold is still under $1300 per Troy ounce while BTC recently broke $4000. Gold is wealth with no debt attached and BTC is very similar. The US dollar is a debt-ridden asset. Therefore BTC poses a similar threat to the world currency and taxation systems and will be a target for manipulation just as gold and silver have been. You can consider this pesssimistic or an opportunity to fix something before it breaks. The gold and silver markets are broken, don't let them do this to crypto.


read if ur holding ripple
i have very very bad news for ripple holders i have read the white paper and its not good news at all

xrp tokens will not be used to transfer value they are just ledgers that will be communicating in the network

they can use other tokens also and ignore xrp if they please.
get out while you can guys , oh also this is just xrp is just token its not a real cryptocurrency its not even a blockchain.

help out your fellow crypto investors and warn them of this finding.
https://steemit.com/ripple/@dank-crypomemes/73b8wq-i-have-very-very-bad-news-for-ripple-holders-i-have-read-the-white-paper-and-its-not-good-news-at-all

Will alts ever reach new ATH's vs bitcoin again?

The US dollar index has been dropping since the start of this year, pretty much when BTC has been rallying. The Chinese hold a lot of US Treasuries and they may be slowly dumping them for BTC? Why would they want to hold the USD when it is slowly dying? I know they have been purchasing physical Gold for a while now.

Ty for Share Upvote

I can see the lure of having assets in other then traditional currency. Though we go for silver..

$4000 ✔️
$5000 (Pending Review )

I would not be surprised to see Bitcoin pull back a little from here. $4,000ish might need some digestion before going higher. :)

All this rise means a scary fall and we just don't know when that will be . I just hope it's not insane . A monderate fall to a rise sounds good to me :)

haha don't worry

bitcon is good

great info

Thanks for providing such a useful information
Keep supporting

I tried putting them on the same axis using Yahoo finance a week or so ago looking for exactly the same thing. Its impossible to see a trend beyond the fact that bitcoin blows the other assets away their lines are completely flat.

I agree with everything you say here, very good post.I would like to know why if you actually think all this happens why have you no confidence in Steem?You transfer everything you make in SBD to an exchange to dump as soon as you makeit here.You are not in full power up for the long haul and huge gains you speak of, but you believe this all blows up to mega numbers from where it is now?If you built a 2000 follower money making machine here AND believe theprices and market cap will explode, why not reinvest what you have "built" into a huge profit center 5 short years from now?If I were a new investor in Steem and I read this......it would make me thinkyou are a pump and dumper because of what you are doing with the money you earn here.I have no issue with people taking profits at all, I just wondered why someone would write something this optimistic but still dump thier coins on a weekly basis.!

Thanks for posting this. I think more and more people are seeing the cracking of fiat currency. Bitcoin, gold, silver etc are stores of value.

With Bitcoin apparently on its way to the moon, the BitcoinToTheMoon.com and BtcToTheMoon.com domain names can be a great pickup for Bitcoin startup or even established players in that place.
Thank you very good

From next week the car will drop sharply to 3k5

Thank you for sharing

👌👌👌

Betting on a dollar other than your own, is just the same as calling a short in the market. (Betting against). Hard to think about our dollar surviving. Now I am not scared of the withdrawals as much. When the dollar buys nothing, I will still have crypto.

Peaceful Patriot

Would have also expected ETH to rise more in the past few days as South Koreans are heavy traders of it and is regarded as the hedge of preference for them. Anyways, BTC is doing great and taking money from our precious altcoins. Though i have a very small investment in BTC, would like to see that reverse! Cheers @jrcornel

as per what I have read

Bitcoin is a good hedge against the current financial system

If you own stocks... better hedge it with some bitcoins..

when stocks go down -- this should go up... days of gold and silver are long gone...

(PS: This is just my personal view. Please do not invest anything based on above advice.)

The price of bitcoin is excites me but also makes me feel quite afraid, everything that goes up must come down.

Exactly on point: Bitcoin is not correlated to any other asset class, and the price seem to rise when there is geopolitical turmoil.

What of if global internet shuts down...what happens to bitcoins??

that moment when nuclear war happens and your bitcoin goes up in price 100x
but then you remember computers dont exist anymore

Bitcoin to the moon it is unstoppable right now

the fear from a crash of the value of dollar due to he recent event between north korea and usa that can cause a 3 world war has push investors to invest in bitcoin to protect their investement

can we mining BTC at bittrex.com

  ·  7 years ago Reveal Comment