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Bitcoin [BTC]: US-China tensions fueled the cryptocurrency’s growth, says Tom Lee

Bitcoin [btc]: us-china tensions fueled the cryptocurrency’s growth, says tom lee

Bitcoin [BTC]: US-China tensions fueled the cryptocurrency’s growth, says Tom Lee

Bitcoin [btc]: us-china tensions fueled the cryptocurrency’s growth, says tom lee

Tom Lee, Co-founder of Fundstrat, spoke about bitcoin’s [BTC] recent hike over $8000, during an interview with CNBC Fast Money. Tom Lee pointed out the possible reasons that were acting as catalysts for this surge and also spoke about the future position of cryptocurrencies.

Lee stated that the cryptocurrency was seeing a “steady rise” over the past few months, adding that it started to look “more parabolic.” He further stated that there were several events that occurred recently, thereby fueling bitcoin’s upward move. One among them was the Consensus conference taking place in New York. On this, the Co-founder stated that the event brought together the entire cryptoverse in a “much more higher quality form,” while also highlighting the fact that scams and ICOs have seen a significant decrease.

This was followed by Lee stating that one of the “notable” catalysts was the “tension between the US and China.” He stated that “it’s really sort of sparked this potential risk of some sort of systematic meltdown and crypto is correlated.”

Further, Tom Lee spoke about what would happen next with bitcoin. He stated that crypto-winter was practically over and that the largest-cryptocurrency was “technically above its 200 days.” He also stated that there have been several positive developments, including announcements made during the Consensus conference, like Bakkt launch and merchants accepting the coins for payments.

Lee also stated that the halving, which is set to occur next year, was also one of the reasons contributing to the rise. He pointed out that this phenomenon had occurred previously, where bitcoin’s price starts to rally about 12 months before the halving season. He went on to state,

” […] then of course in Asia, there’s been a couple of events that has affected the supply because there was a hack on an exchange in Asia and for the past week, there have been restrictions on either withdrawing or adding funds to anyone on the exchange. That’s again affected supply, this supply and demand are obviously affecting bitcoin […]. “

Additionally, he stated that bitcoin closing the gap to the $10,000 level was driving positive sentiments among investors. Additionally, Lee was asked about his opinion on bitcoin playing the role of a major safe haven in the future, if central banks had a possible meltdown. He stated,

“[…] I think its going to be an asset that will look attractive in the event of a tail risk. A tail risk event of either the loss of state and central banks, that’s the original reason cryptocurrencies were developed. So, you know and that sort of spectrum deep risk, I think bitcoin is the epic digital gold […]”

The post Bitcoin [BTC]: US-China tensions fueled the cryptocurrency’s growth, says Tom Lee appeared first on AMBCrypto.

Published at Thu, 16 May 2019 08:48:15 +0000

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Gold Mine Worth More Than Bitcoin’s Entire Market Cap Found in China

A gold mine discovered in China’s Shandong province is reported to have a potential value of more than $22 billion USD or more than the entire market cap of bitcoin. 

Eureka!

Announced by the Shandong Gold Group Co. at a press conference on March 28, 2017, it is believed to be China’s largest gold deposit in history, People’s Daily Online reports.

The discovery is located in the Laizhou-Zhaoyuan region of northwest Jiaodong Peninsula, east China’s coastal province of Shandong. The region’s special geological characteristic helped form the country’s major gold deposits cluster, which is home to China’s largest gold reserves and production.

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According to reports, the deposit is over 2,000 meters long with thickness of up to 67 meters. The amount of gold reserves is prospected to be at 382.58 tons with an average gold grade of 4.52 g/t.

In two years, it is expected that the mine will yield 550 tons of gold with an estimated value of over $22 billion (150 billion RMB). Moreover, at full capacity of 10,000 tons per day, the Shandong mine can produce gold for the next 40 years.

‘Digital Gold’ More Scarce Than Gold

bitcoin is often referred to ‘digital gold’ as it’s increasingly exhibiting store-of-value properties similar to the precious metal. (The argument over which gold — digital or physical — will be worth more in the future was already covered here.)

It should be noted, however, that while gold is known for its scarcity, bitcoin is considerably more scarce at just 21 million units that are also called bitcoin (with a small “b”) or BTC. Both are used as a hedge against inflation and both are the pinnacle of their asset class.

The recent discovery in China, however, raises the supply of the precious metal, currently worth around $1,250 per ounce. Previously, gold above-ground stocks were estimated at 183,600 tons according to the World Gold Council, putting gold’s market capitalization at over $8 trillion compared to bitcoin’s $17 billion.

Orocoin

Admittedly, this is still a drop into the gold supply bucket and it will be interesting to see how this news will impact the gold price. At the same time, the possibility of discovering more physical gold persists, marking two key differences between the two asset classes.

First, the supply of bitcoin is forever capped at 21 million digital units. This controlled supply is agreed upon by all of its users and plays a major part in bitcoin’s price discovery across global exchanges.

Second, bitcoin’s emission schedule is set in stone, which means everyone knows when and how much bitcoin will be in existence at a specific moment in time (currently north of 16 million).

On the other hand, the supply of physical gold is ever expanding as more deposits are found on earth, and potentially even more, with the advancement of mining technology, on other planets and asteroids in the future. Also, discoveries could happen unexpectedly, which could have an unforeseen negative impact on gold price.

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Recently, the price of one bitcoin surpassed that of a gold troy ounce, leading economists such as Holger Zschaepitz to call it a “defining moment in history.”

This is probably an arbitrary comparison, however, as the price of bitcoin must get to about $500,000 per coin to match the gold market. The rising demand for “digital gold” — and the concept of “digital scarcity” as a whole — should become an increasingly attractive idea to investors as we delve deeper into the digital age.

You can read more on the correlation between Gold and bitcoin in this article.

Would you rather have physical Gold, bitcoin or both as an investment? Share your thoughts below! 

Images courtesy of Shutterstock, Twitter 

The post Gold Mine Worth More Than Bitcoin’s Entire Market Cap Found in China appeared first on Bitcoinist.com.

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