If you have not contemplated how the advent and rise of crypto currencies will soon affect everything from the way you pay for transactions to your investment and retirement portfolios, now would not be too early a time to start. Events taking place around the world over the last year aggressively pushed the world farther into the arms of Bitcoin and its many inspired derivations such as Ether.
Look at the earth-shaking events of 2016, and you will begin to understand. In this one year alone, Britain emerged as the first EU nation (but will not be the last one) to vote to withdraw from the European Union. The Prime Minister Narendra Modi of India outlawed an incredible 86 percent of all paper money in the country in a single night. Venezuela’s government took out half of all circulating paper money as it deflated away its own currency.
China also became involved in the currency moving-events by both devaluing its own currency the Yuan and simultaneously restricting the amount of money that could flee the Middle Kingdom. All of this occurred in only one year. Each destabilizing currency event forced investors around the globe into the crypto currencies at a record pace.
Bitcoin and the crypto currencies responded appropriately to the surging interest and skyrocketing demand. During the month that led to Brexit in June, the BTC currency roared higher by 76 percent. The day after the actual referendum vote, it rocketed up 13 percent in only a single trading day. This chart below demonstrates Bitcoin’s performance versus gold’s over the last three years:
As India outlawed its larger bills, the Bitcoin volume within India quickly doubled. In only 18 days, the Indian Bitcoin price on the biggest Indian exchange roared higher from $757 to $1,020 per BTC. This represented a 34 percent price surge. Similarly in China, the tightening of capital controls created a Bitcoin buying spree in the second half of 2016. The leading crypto currency responded by rising upwards of 91 percent by the end of the year.
It was a similar story in Venezuela. After the government trashed the country’s paper money supply, trading in Bitcoin there exploded. The volume for the year roared 350 percent higher verses the prior year.
Not only Bitcoin, but also the smaller rivals throughout the crypto currency universe skyrocketed as well. They might not have enjoyed the same glowing media coverage as their better known grandfather BTC, yet their gains were far higher than Bitcoin’s percentage wise.
These events in 2016 were not one offs either. In 2017, the Euro zone has decreed that it will eliminate the 500 euros notes in a move reminiscent of both India and Venezuela. By next year, the ECB will no longer issue these second most popular of European bank bills. The loss to physical cash in the EZ system will amount to approximately 35 percent of all paper purchasing power.
Is Your Retirement Portfolio Protected by Gold Against the Disruption of the Usurping Crypto Currencies?
This Euro Zone development is a much bigger deal than what happened in Venezuela and India. The European Union total economy is 34 times bigger than Venezuela’s and even five times bigger than India’s. It means that the crypto currencies will become even more mainstream, sought after, and highly valued over the remainder of this year. This is ultimately a dollar-negative event as Bitcoin and Ether vie with each other to see which one will finally knock the dollar out of world’s de facto first place for transacting currency of choice.
Whatever happens with the dollar, gold will survive and go on from strength to strength. In scenarios where disruption occurs forcefully, as with the crypto currency takeover, the yellow metal boasts a remarkably stable track record for smoothing out the ensuing financial impacts. Click here now to get your free, no-obligation gold IRA rollover kit from best in class Regal Assets so that you will possess all of the important information you need to protect your retirement accounts via a partial diversification of your IRA assets into physically held gold.