Bitcoin price plunges by a fifth

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.

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.

Bitcoin still soaring higher...

Bitcoin seem to keep soaring higher amidst skeptics and cynics who had thought this is just a façade. 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.

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. 

Happy New Year

May this year bring you Joy unspeakable and riches beyond your expectation...Happy new year.