Silver
Daily Ramble
I’ve been thinking, today, about the attention the silver market is getting. Until this morning, I was hooked on the narrative that the WallStreetBets crew were taking on the incredible short interest suppressing silver prices. Now, I’m not.
I was listening to my favorite daily podcast, The Breakdown, when I realized, I was getting manipulated myself. The silver narrative that’s suddenly exploding across the Twitterverse and mainstream media is not being driven by the WallStreetBets group. The group has grown to almost 8M individuals since they stepped into the limelight last week with their play on GameStop last week. That’s up from a couple of million. Their forum has been overrun by messaging bots in the process — automated messaging services. The moderators are doing their best to delete these posts and users, but the spam continues. The spam may be telling members to buy silver, but the top messages on their boards are saying to avoid silver at all costs.
What? Aren’t they supposed to be driving the retail ship into the silver play to crush the banking industry? Who really knows what’s going on, but it’s clear that someone is trying to get people buying silver and it’s not the WallStreetBets crew. The most fascinating point is that Citadel, a firm hurt by Melvin Capital’s short exposure to GameStop last week, has a substantial long position in silver at the moment. Are they trying to make up their losses and get even at the WallStreetBets retail crowd? No clue, but keep your eye on silver this week. What started with GameStop last week, is not even close to being over.
Favorite Thing on the Interwebs Today
A fascinating tale about the last time someone tried to take on the silver market.
Bitcoin Price Prediction
Yesterday: $32.1k - $35k
Today: $32.3k - $38k
Tomorrow: $33.5k - $40k
Yesterday, I suggested we’d have a decision, up or down, in the next day and the decision has been made: the bulls have it. The downtrend we’ve been in the last 3 weeks was broken with substantial volume coming into the market. It’s still possible that we reject the breakout today, but the odds are low enough that I’m calling it a trend shift. It doesn’t mean we’ll see the price exploding in the next couple of days, but it does mean that the market should see more people take long positions leading to higher prices. It may take another week or two to break the current high at $42k, but the door has been opened.
Bitcoin Ed Bite
Q: Is Bitcoin a monetary network?
A: Absolutely.
The idea of money being a networking technology is a new concept for many people, but it’s highly accurate. If you step back a moment and drew a chart showing how fiat currency notes, a $5 bill for example, pass from one person to another, it would look no different than a network topography map.
The information provided through posted prices for goods and services can be thought of like a job posting on LinkedIn or an Instagram photo — it provides something for the rest of the network to react to.
The point being, Bitcoin is the first stand-alone digital monetary network the world has seen. And just as the social networks like Facebook, Instagram, and Twitter took some time to catch on, they did so exponentially. Bitcoin has been growing exponentially as well — just pull up its price chart to see for yourself. It may not seems significant yet…but neither did Facebook in 2004.
Thanks for reading,
Kent
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