Thursday, 19 January 2017

Bitcoin price ready for the big move...


Bitcoin is on the news again and this time it is not due to its price rally or dive but due to the inauguration of the 45th president of the united states: Donald J. Trump.
Bitcoin had a fall back some weeks ago due to China currency control and lost a fifth of its price but has not been able to get below the support mark of $860. It has been howering around that value upto $880. This has been on for some days now and it seems it is rallying for a big jump. Don’t believe it, let me tell you why.
China currency controls had been tweeted overly by the soon to be President of the United States: Donald J. Trump.  Donald Trump sees China as a country ripping others off by currency controls and they just recently caused the price of bitcoin to lose a fifth of its value by publishing a statement to its people that bitcoin has no value backing it and therefore no currency for exchange of value, this was after holding a meeting with the biggest bitcoin exchanges in China inorder to consolidate the use and value of its Yuan. The President elect of the US has been talking …no tweeting about China Currency controls…and they know immediately he steps into power he would be watching them like a hawk for any such changes.
Investors have also been on the lookout for changes in the dollars immediately the inauguration takes place as events within the inauguration would decide which way the dollars slides against other fiat currencies especially the euro and the yuan.


US-China trade war coming

The battle for manufacturing supremacy is about to begin as the US and China go head to head as each looks to fuel demand and inject more growth into their respective economies. Will the US currency be the next one to devalue because unlike before China is ready for them now.

Bitcoin is at the right place and at the right time and a safe haven for investors. Its value would most likely climb to be $2000 and with over 30+ banks in negative interest rates, things could only get worse for fiat currencies. 

Wednesday, 18 January 2017

Online Scam detection - How to know it is fake

I would be teaching and helping readers right now as there is a great need for education on online scam detection. We have so many scams online today and it baffles me that people keep falling for these scams daily and keep losing their hard earned money. We will do a review of some of the things you look out for in an online investment. We won’t be displaying the names of the scam sites but we would be telling you factors to use and identify a scam investment online.

First of all, all investments require a level of trust.
This trust would be gotten from assessing the investment based on several factors.
There are many other factors we can consider but we would be going through some very critical factors that must be in place before you commit.

This can serve as a guideline for online scam detection but you need to add more as you become more adept: let’s just say this is the minimum requirement from any online investment you want to invest in.
Online scam detection guidelines

The online investment must be regulated - EU, US or Country Regulated - and there should be documentation to support this. Such regulations website should be online and you can check them up if you think the document is false.

The online investment should be trading or investing in a physical asset e.g Oil and gas, Forex, Commodities etc…some would argue this as bitcoin is not a physical asset. Bitcoin is an exception.

The online investment opportunity should not be a HYIP- High Investment Yield Program - you invest $100 and get 150% in 5 days…that is totally unrealistic and you know its crazy to achieve but you invest because you are greedy. Such high returns don’t happen overnight and you should stop being greedy.

The online investment should have a track record. This I cannot overemphasize. If they claim they have been investing since 2014. Then we should see the daily trading details from then on and there should be investors that have been with then since then. You can find this out in results.

The online investment should have a social media page for investors and you can assess them to see user comments and complaints and how it is being resolved.  
 Such investment should have a good support line for people investing to enable them resolve issue within minutes of reporting.

Scam sites are on the increase today especially with the rise in price of bitcoin and so many are receiving bitcoin for their "supposedly investment" so the need to educate readers on online scam detection. if you get scammed you can submit your comment here inorder to help others from being scammed...and yes! i have been scammed before, you are not the first nor would be the last. Lick up wound and start all over again. 


Tuesday, 10 January 2017

Commodities rally may charge into 2017

These four commodities rallied in the last quarter of 2016 into 2017. As shown in the graph above:
C01 Comdity is ICE Brent Crude Oil. This represents the price index of brent crude oil.
XAU Curncy is the price increase for one troy ounce of gold.
LMCADS03 Comdty is London Metal Exchange LME Copper 3 Month Rolling Forward.
T101 Comdty is the Iron ore traded as a commodity. 

These are the major commodities traded on the exchange floor and these all had a boost at year end 2016.

One of the greatest influence on commodity price for 2016 was the increase in the price of crude oil.The price of crude oil was said to have increased from $38 per barrel to $52 per barrel and with it went the prices of some of these commodities.



Brent
Brent crude UK:LCOG7 went up around 46% year to date as of December,2016 had done a bit better than West Texas Intermediate crude‘s US:CLF7  nearly 38% climb so far in 2016.
Gold
Gold GCG7, +0.09%  looks set for yearly gain of nearly 8%, recouping most of 2015, 10.5% drop, while silver’s SIH7, +1.00%  up over 22%, following a loss of almost 12% in 2015.
Iron Ore led commodity gains in 2016; oil, gold also bounce back
Iron ore
While many commodities rebounded from last year’s steep declines, iron ore made the largest move by far—making a full U-turn in 2016 from the previous year’s devastating losses.
“When you look at what iron ore did in 2015—a considerable downtrend—it had nowhere to go but up this year, and it did,” said Joseph Innace, metals content director at S&P Global Platts.
“The trend has been up all year, reaching a recent peak of $82.30 [per dry metric ton] on December 7, 2016,” he told MarketWatch on Dec. 8—a surge of 92.7% year to date, based on S&P Global Platts IODEX daily price data.
“As Chinese steelmaking goes, so goes iron ore,” said Innace. The annualized 2016 rate of steel production from China is at nearly 810 million metric tons, while most predictions saw it coming in under 800 million metric tons, he said.
Copper
Copper was also among the worst performers in 2015, but last year came up in among the largest gainers.
Expectations that U.S. President-elect Donald Trump’s plans to improve the nation’s infrastructure will boost industrial commodity demand helped provide an extra late-year lift.
Copper futures HGH7, +2.93%  settled at $2.605 a pound on Comex Wednesday. It trades over 20% higher year to date.

Oil and Natural Gas
Oil and natural-gas futures bounced back after two years in a row of steep losses.
Yearly gains of nearly 45% for Brent UK:LCOG7  and almost 38% for West Texas Intermediate crude US:CLF7 were impressive, but not as impressive as the more than 52% jump seen for natural-gas futures.

“Supply and demand is slowly rebalancing and we should start seeing inventories start declining in 2017 with demand exceeding supply,” Brian Youngberg, senior energy analyst at Edward Jones, told MarketWatch.

During the year, 2016. The energy market saw a continued decline in investment, which translated into falling production in the U.S. and elsewhere, he said. “Demand growth is solid and better than expected, led by India and the developing world.”

And the Organization of the Petroleum Exporting Countries’ recent agreement to cut back output “has helped push prices up with expectations that the rebalancing will occur a bit earlier in 2017 than otherwise thought,” said Youngberg.

Many oil producers outside of OPEC also agreed this month to reduce output by 558,000 barrels a day and OPEC’s top producer Saudi Arabia, said that it may even cut more than promised.
These commodities are good commodities to watch out for and trade on this newyear. They did well last year and will do even better this year.

Friday, 6 January 2017

Bitcoin price plunges by a fifth

Bitcoin price


Bitcoin price has been on the rise for some time now and most including myself, thought this ride would continue for a long time. The ride took the high ride of a roller coaster from January 1st this year and had an all time high for the second time in its history on the 4th of January, 2017 going for $1149 to a bitcoin then falling within two day by $250 which is about 5% of its previous day price.

This rise would have continue for reasons I had stated in my previous post but it took a dive just today due to a meeting this week between  the People's Bank of China (PBOC) with representatives of its major bitcoin exchanges in China to urge their compliance with "relevant laws and regulations". BTC China, OKCoin and Huobi  - all exchanges in China - accounts for the bulk of the world's bitcoin volumes, according to data from Bitcoinity.

An informal translation of the document reads:
"Bitcoin is not a currency and shouldn't be viewed as such. Those who invest in bitcoin should accordingly be aware of the risks it poses and protect their investment."
The public statements aimed to serve as a reminder to citizens who may be considering the digital currency as an investment, and both quoted a government circular released in 2013 saying that bitcoin is a virtual good and doesn’t have legal tender status.
Pete Rizzo (2017): http://www.coindesk.com/ China's Central Bank Issues Warnings to Major Bitcoin Exchanges.

China is not new to the world of currency controls especially if it has to do with its people and its currency. They have been known to devalue its currency time and again to keep its currency cheap and enable its manufacturers, manufacture cheap but sell high to foreign countries. This was important to increase their GDP and move them to a world power position but now that they are seeking the world’s acceptance of its Yuan as a rival to the dollars. They wouldn’t want her people to use more of another currency causing its value to decline in use and value. 

This again shows the vulnerability of Bitcoin as a currency. As it has been accepted around the world, the numbers game would come to play. The country with the highest volumes can control the price for the rest of the world due to its currency policies like China has shown. Bitcoin may not be controlled by the Government of China but they can influence its price by the control on their people and currency causing the laws of demand and supply to kick in and cause bitcoin's price to either go up or down, causing the rest of the world to simply accept the new price. So brace up, we would most likely see some more of this in this new year.

Wednesday, 4 January 2017

Poor returns for over a month now


There has been poor returns from the merchant shares investment from mid December last year till now first week of January 2017.  The daily returns have failed to reach 2.0% for all sectors day after day except for cryptocurrency sparingly biweekly.

These compared with the returns for December 2014 and December 2015 has been the poorest so far, December 2014 being the best so far with weekly returns over 2.0% and some slow in the forex and stocks only. 2015 was worse off than 2014 but still got some good returns. December 2016 compared with the former look very poor.

Talking about poor returns for December 2016, you must realize some factors conspired to make that happen. The outcome of the American presidential election caused fluctuations in the forex market causing unusual volatility especially on currency pairs with the dollars. This I stated in my last post concerning the reasons for bitcoin price soaring.

According to Bloomberg Commodity Index BCOM: Commodities price being on a 10 years low finally bounced back in December 2016, indicating global economic and inflation normalization. Commodities can be difficult to track as there are so many commodities and even though crude price went up during the period, the commodities invested in may have been precious stones, minerals or food items.

From the graph above. A lot of Commodities and stocks went up this period and that should have reflected in the returns for Merchant shares investors but that was not to be. Justifiable reasons fellow investors are not so pleased over returns in december.

Nevertheless, Merchant shares still remain the single most credible investment platform with real and verifiable trading turnovers. So don’t hesitate to get started and see how the compound effect of earning can make your investment grow high in a very short time. Get started and lets help you grow your finances.

Tuesday, 3 January 2017

Bitcoin still soaring higher...

Dollars struggle against Bitcoin


Bitcoin seem to keep soaring higher amidst skeptics and cynics who had thought this is just a fa├žade. Bitcoin today is the new safe haven for investors against currency fluctuations due to uneven government policies, currency control or even hyperinflation. For instance, at the eve of Donald trump’s presidency. The Mexican Peso fell against the dollar because of the many utterances of Donald trump against the Mexican government and investors started selling off the Peso to buy the dollar because they were afraid there would be a tightening of policies against Mexico. 

A similar thing happened with the exit of Britain from the European union in June of 2016. This rocked the British pounds to its lowest in 30 years, making millions loose money. 

These and many other government policies on money have caused investors to move to a more safe currency, one that cannot be inflated nor controlled by any goverment. Crypto currencies seems to be a special breed. A currency that violates all rules of fiat money and still retain value. It is like the X-Men movie where we have special breed of mutants cum super heros. The greatest of these mutants is Bitcoin. Who would believe a currency that is not backed by anything, not a physical matter, limited in quantity and mined by mathematical calculations can be worth above $1000 today and still climbing.

The whole rule has changed and perhaps it comes at a time when even the rules like we are used to have been overturned. A paradigm shift has taken place and we may soon be through with civilization like we know it. Bitcoin is the safe haven today for all people of the world against their currency fluctuations and bitcoin is going even further in its rise against the dollar. 
So if I were you, I would jump on this moving train and profit from its global acceptance as you may just have come to know this for such a time as this.

Monday, 2 January 2017

Merchant shares: Investment review for the month of December, 2016



Trading took a slow turn during the last month of 2016.

Investment In all 3 sectors of Forex, Commodities and Stocks took a gridlock movement at the last month of 2016 for merchant shares and crypto coins was the investment focus of the month. This was to enable it get a boost to a major investment sector in merchant shares.

This was not strange as crypto coins took a high even in the last month of the year. Bitcoin’s price jumped a total of $240 in just one month and ended at $990. This not withstanding, it still went further, getting over $1000 in price in just the first 2 days of the new year.

If you are wondering why or how? Read my previous post on this here.

Crypto coins looked like a not so good sector to invest in when if lagged behind for months and kept offering a percentage of between 0.25 – 0.95 and just last month it performed better than all the other sectors.

Web Ads that I thought would make the highest returns last month, failed in expectation. Considering December is the month of holidays and most people would be away from their desk with family and friends and let’s be realistic -  with family and phones. Lol.  So there would be much clicking away on web adverts on their mobile devices and so it would generate more returns in revenue but that was not to be as it offered the poorest percentage all month.

Forex, Commodities and Stocks had to take a slow as it was a period the exchanges were winding up for a year close and also there was a need to play safe so we can continue in the new year.

Tops of all, my merchant shares investment gave me returns everyday for the month and I look forward to better returns this new year.