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While the monetary metals continue to spin their tires in this black-is-white world, the Bitcoin has 'hooked-up' like a top-fuel dragster, printing $500 earlier today. The Bitcoin exchange-rate has more than doubled in a month, but the number of Bitcoins in circulation has not, which is why smart business people and investors will continue to adopt it and recognize it as a superior currency. Many technicians and bankster shills will of course be shouting that the Bitcoin has run too far too fast, conveniently forgetting that Bitcoin is not a stock or bond, nor is it a fiat currency. The Bitcoin is the world's most disruptive technology, and in my opinion, the bid is coming from monied investors who now 'get it' and want a lot more of it! Yesterday I had the opportunity to ask 150 people by a show of hands how many 'owned a Bitcoin' -- three hands went up, and each of them were personal friends. The global market cap of the Bitcoin today is now approaching $6 Billion, approximately 12% the size of BMO or 'just' 5% of RBC. And for the Bitcoin market-cap to equal the size of either of these two banks requires an exchange-rate of $4,000 or $10,000 respectively. So does the Bitcoin have room to run? I sure think so. The question becomes, how long will the other 147 people in the room wait to try a buy one, and will you be at the front or back of that line? Cheers!
Bitcoin Rises Over $500
To answer that (fair value) question, we go to Raoul Pal, head of the Global Macro Investor, and his November 1st recommendation to "Buy Bitcoins" (when BTC was $210): One Bitcoin should theoretically be worth 700 ounces of gold or pretty close to $1,000,000, if we adjust existing supply of both to equal each other. One BTC is currently worth 0.14 ounces of gold. That gives BTC an upside of 5000 times to equal the current price of gold, supply adjusted. Now, before you shake your head, simply go back to the chart of Gold versus the US Dollar and just recognise that it has risen 8750% since the 1920s. And just remember that Microsoft rose 61,000% from its IPO to it's peak.
US has Already Ceded Dominance in Bitcoin Trading
Currently, the top four bitcoin exchanges by volume are located outside of the US, with the world's leading exchange based in China (and) less than 2% of worldwide bitcoin trading and real-time market making occurs within the US jurisdiction. All four of the world's leading exchanges have demonstrated a capacity for serious, engaged banking relationships that would have been unobtainable in the United States.
Winklevoss Twins Say Bitcoin Market To Hit $400B
Given the "buggy" nature of the global financial system, where monetary transfers and transactions go through major institutions, have high costs, and can take up to several days, Bitcoins allows for a more seamless, direct transfer of capital, they said. The fact that it's unregulated, that there is no "Bernanke of the Bitcoin Reserve" as Sorkin put it, is what gives the virtual currency credibility. Trust in "cryptology," Tyler said. Finally, they made it clear that Bitcoin isn't going anywhere any time soon. If regulators choose to attempt to shut it down, they will only push innovation overseas, possibly to China where already companies like Baidu accept it.
Canadian Mining Firm Alix Resources to Pay Contractor in Bitcoins
Alix Resources says Bitcoin will be used to pay for exploration work the company's northwestern B.C.-based Windy Tungsten Project, which it bought last week. The junior miner says it may pitch the currency as a form of payment to other service providers in future. Sounding like a true exploration company, Alix believes it's getting into the bitcoin market at "an early stage."
Connect Your Business to Bitcoin!
Entrepreneurs and business owners can now quite easily accommodate payment in Bitcoin and 'plug-in' now to this phenomenon, before the big rush. The Bitcoin is here to stay, so why wait to attract this new audience, and perhaps some free media (like our friends from Alix Resources)? I will help you open a BTC wallet, receive and send a few bits, and steer you towards a market-maker where you can easily generate invoices and accommodate Bitcoin payment from anyone in the world, which can then be liquidated for cash within seconds (if desired). We are also able to connect hard-money investors looking to allocate some of their silver or gold bullion into Bitcoin, and do it without a bank or broker! Give me a shout when you're ready ..
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Sovereign Exchange International Ltd.
Steven Merrill, President
www.sovereignize.net
phone:
778.835.7667
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Engage a Rich New Audience; Reconcile to your Private Account; Settle for Metal at Any Time. The Sovereign Exchange was founded by Steven Merrill and a small network of individuals from across British Columbia with a vision to embrace Austrian economic principles and provide a sound and stable payment facility than be trusted for commerce and used to store wealth.
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