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A new report by the World Gold Council shows that there is global demand for harder forms of money than fiat currencies. Such demand points to a bright future for Bitcoin given that it represents an even harder form of money than the precious metal.

A total of 61 percent of those surveyed in the report said that they trusted gold more than they did fiat currencies. Historically favoured for its somewhat limited supply, the only thing going for gold and not Bitcoin is time.

WGC Report Shows Wide Understanding of Fiat’s Shortcomings, Bitcoin set to Benefit (Eventually)

The recent World Gold Council report asked 18,000 individuals from around the world for their investment preferences. It shows that gold remains one of the most popular forms of investment globally. Savings accounts are by far the most popular, with life insurance next, and gold in third place.

Cryptocurrencies, like Bitcoin, remain way down the list in 10th position.

Although it is still much too early in the Bitcoin story to expect the masses to suddenly believe in it as a long-term store-of-value, the conclusions drawn by the WGC report show that there is a reasonably high level of distrust of fiat currency around the world.

A total of 61 percent of those asked said that they trusted the precious metal more than they did any national currency. Meanwhile, 67 percent said that they believed gold to be a good safeguard against inflation of currency instability.

Although the analogy between gold and Bitcoin has been repeated many times before, it still rings true. For the same reasons gold has historically made a better form of money than the paper money prevalent today, Bitcoin represents an even harder form of money still.

Gold found its use as a monetary unit thanks to its scarcity and how difficult it is to forge. However, recent scientific evidence suggests that gold is nowhere near as scarce as once thought. There are huge reserves of it within the earth itself, as well as out in space. Once mining or space exploration allows the tapping of these resources, the overall supply of gold will suddenly increase massively. It seems highly doubtful that its demand for jewellery making, so often highlighted by gold bugs as providing its “inherent value”, could absorb such a sudden growth of supply.

With Bitcoin, there will only be 21 million units and no more. This fact alone makes it a harder form of money than gold. Then there are its advantages when it comes to both storage and transportation. You don’t need a guarded vault to keep Bitcoin safe and it can travel the world very quickly.

The one thing that Bitcoin does lack when compared to gold is history. However, this could change quicker than many people think. If it’s to succeed as a digital form of gold, it won’t take thousands of it do it. Already, every child below the age of 10 has never known a world without Bitcoin. In another ten years, every individual under 20 will be in the same position. Bitcoin just needs to continue doing what it’s doing and it will naturally become more trusted. Meanwhile, constant examples of both the control banks wield over their customers and the often-reckless monetary policies of world governments will continue to ensure there is a demand for hard forms of money.


Related Reading: Peter Schiff Fires Back After Facebook Crypto Head Calls Bitcoin “Digital Gold”

Rick D. , 2019-11-14 01:00:28

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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