Bitcoin Surges 55% In Month – Chinese Moving Capital Into Bitcoin and Gold
Bitcoin has been surging in value since mid October and surged more than 20% yesterday alone. At one point, it hit a yearly high of more than $491 (see chart).
CoinTelegraph
In August, bitcoin fell to a low for 2015 near $200 amid turmoil in the Chinese and global stock markets.
But bitcoin transaction volume has been growing. Blockchain.info data shows that unique bitcoin wallet addresses—which are how users manage and trade bitcoin—are at an all-time. Some have multiple bitcoin addresses, but such a spike suggests there are new users as well.
It’s not entirely clear what’s driven the most recent price gains. There is an assertion in an article on the front page of the FT today ( Bitcoin surges as Chinese flock to Russian fraudster’s site ) that the gains are due to Chinese people flocking to bitcoin in a giant pyramid scheme run on a Russian fraudsters website:
The price of the cryptocurrency bitcoin surged on Wednesday to its highest in more than a year amid a wave of Chinese testimonials for a “social financial network” called MMM, which bears the hallmarks of a pyramid scheme.
New members of MMM have to buy bitcoins to join the scheme, which is the brainchild of Sergey Mavrodi, a former Russian parliamentarian since jailed for fraud.
Although the article is unbalanced and simplistic. The truth regarding the root cause of the price movement of any market is of course much more complex – and there are many supply and demand issues to be considered.
Source: CoinDesk
Most bitcoin experts once again see Chinese demand as key. As China has been devaluing its currency, the yuan, throughout the year and the Chinese are aware of the growing risks posed to the yuan and indeed the dollar and other fiat currencies.
Read more on the GoldCore.com blog
DAILY PRICES
Today’s Gold Prices: USD 1107.30, EUR 1024.40 and GBP 724.75 per ounce.
Yesterday’s Gold Prices: USD 1118.00, EUR 1024.09 and GBP 724.99 per ounce.
(LBMA AM)
IMPORTANT NEWS
Bitcoin rockets higher, some blame pyramid scheme – CNBC
China gold consumption rises 7.8% – Chinadaily.com
Gold sits near monthly lows, US jobs, Fed speaks eyed – fxstreet.com
Gold Touches One-Month Low as Fed Rate Speculation Mounts – Bloomberg
PM Narendra Modi to launch gold monetisation scheme today, response seen muted – Reuters
IMPORTANT ANALYSIS
Bitcoin Price Explodes Higher – Gold and Silver Next? – Max Keiser
Bitcoin Is Still Going on a Gigantic Tear – Bloomberg
Mario Draghi gives the V-sign but a dangerous QE day looms – Telegraph
Bullion Bank Leverage Soars to Near 300:1 – Financial Survival Network
There Are Now 293 Ounces Of Paper Gold For Every Ounce Of Physical As Comex Registered Gold Hits New Low – ZeroHedge
Read more News & Commentary on GoldCore.com
Download Essential Guide To Storing Gold In Switzerland
Leave a Reply