What is Going on with Cryptocurrencies?

May 30, 2017
May 30, 2017 Greg Steinberg

What is Going on with Cryptocurrencies?

Cryptocurrencies are showing their volatility quite a bit lately. Bitcoin has made an incredible run from $1000 at the beginning of the year to around $2700 a few days ago, then crashed down to around $2000 today. Why is this happening?

What is happening is that people from around the world are snatching up cryptocurrencies, forcing the price to shoot up. Why are people in Japan, China, and India doing this? It is because they can’t get their hands on physical gold or silver. There are multiple buyers for the same ounce of gold or silver in foreign countries. Cryptocurrencies do not have that same problem.

Here in the US, gold sellers are doing poorly. Schiff Gold had their weakest quarter ever. Sadly, they are doing better than most other gold companies! People are either too broke to buy gold, or they’re piling into the stock market, rather than precious metals.

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Given overall economic conditions, the price of gold and silver should be through the roof. They aren’t because of manipulation, or the fact that the price is set on the fake, paper market. This has to end sometime. The thing to watch for is when they lose control of the price, meaning that the manipulation won’t keep the price down for long. (If you think this is crazy talk, Deutsche Bank paid a fine for manipulating the silver market.)

So what is going to happen? My guess is what is happening to cryptocurrencies will eventually happen to gold and silver. It is unclear whether silver will perform as well as Bitcoin, but I personally still don’t own any cryptocurrencies, and probably never will. My advise is buy silver. Keep stacking!!

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