I just came accross an article on CNBC about a trader from Saxo Bank who predicts that Bitcoin will be worth $100,000 in 10 years time, as cryptocurrencies gain market share in the highly liquid foreign exchange market. While 10 years is still a long time to wait for such a bold prediction to materialise, investors at least have the comfort of the digital Bitcoin already being worth more than one ounce of gold.
But, while predictions may or may not come good for several reasons, the questions arising on the sustainability of the recent panic buying of crypocurrencies are many. Will some cryptocurrencies really replace physical money? And if that happens, will the government allow monetary policy to be taken out of the hands of the central bank? What is the intrinsic value of a digital asset that was created out of thin air? Is Bitcoin really like gold – or even better? Are cryptocurrencies good hedges against market crashes like the dollar is?
by Zak Mir| Trading| 1 mins. to read The lesson which has become clear to me at the relatively late age of 50 is that the only resources companies which are really worth getting on the back of are those who are actually producing. This means one gets away from all the risk of jam tomorrow and thousands of ounces here, and billions of barrels there.
by Evil Knievil| Evil Diaries| 2 mins. to read I have lately spent nine months corresponding with the Financial Ombudsman Service and achieved an adverse result (in my opinion I have been improperly debited by a broker for c. £100,000). I was surprised by this since mine is a slam dunk case.
by Zak Mir | Trading | 1 mins. to read With GCM Resources' technicals looking so appealing right now it's a case of having to dial down enthusiasm levels. On the fundamental front the latest positive news for GCM Resources is related to a recently signed consultancy agreement for the proposed development of a 2,000 megawatt power plant in Bangladesh.
by Victor Hill | Economics | 11 mins. to read Here in Scotland, the British general election is a referendum on whether there should be a second referendum on independence. Increasingly, it is a binary choice between the Scottish Nationalists and the Tories.
by Nick Sudbury | Funds | 5 mins. to read A few weeks ago I wrote about the mixed fortunes of the peer-to-peer investment trusts with the poor performance of P2P Global Investments (LON:P2P), the largest fund in the sector, prompting the Board to initiate a review of its investment management arrangements.
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