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Trading - Jan 20, 2018

My name is Jordan and I'm a trader. Having traded for over 8 years with both good and bad stories to share, the best thing I can do is continually share the lessons I have learned as the opportunity to present them comes along.

To the Crypto Community, My 'Fundamental' View on Bitcoin and Overall Crypto Markets

I've taken part in markets of many kinds, for a while now.

Yesterday at 11:59 PM the US government shut down. ow at the surface this may seem like a serious economic event. In reality it can be. The US debt ceiling as it's called has been reached. The house and the Senate must pass a bill to increase this limit in order for the government to remain functioning. At 11:59 the Senate failed to get the necessary votes to increase the limit. As of right now the government is essentially on strike. The Only things that remain in place are things like border control, customs and the military (unsurprisingly so).

Watch the price of bitcoin at 11:59 PM it immediately spiked $900. I am developing a theory that going forward crypto currencies will be the antithesis of future economic crisises, whether serious or not.

If you look post-08 when the meltdown happened in the financial sector, gold eventually soared tremendously. As bitcoin is proving in front of all our eyes, it is fast becoming the digital gold. I believe that this is the start of it and in any serious economic event you will see the value of these coins skyrocket.

You must all be wondering what is that catalyst. Believe it or not I have the answer for you. Interest rates. Remember post 08 until about 2016 we have lived in a world of below trend interest rates. In Canada our overnight rate was raised .25% to 1.25% the highest level since 2010. In the middle of those 8 years consumers, businesses and governments have all stacked up on cheap money to take advantage of low rates to invest, purchase new cars and all the like.

I promise you the only thing that can cause a true collapse is an interest rate spike to a point where nobody can handle it. Given we are in a high interest rate environment and a recessionary cycle had not hit us for over 8 years, my only view is that when not IF a massive interest rate spike happens, we will see a sharp pullback in economic activity.

This time though, we will have cryptos on our side and instead of being the ones who lose our jobs and stuck in the hole, we will be holding the digital gold.

Watch interest rates globally. Ask questions if you need clarification and always safely only trade what you can afford to lose.

Kindly, Your fellow trader,

Jordan Bigford, Toronto


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