Category Archives: Clem Chambers

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Trade War CNY Devaluation Could Be Real Cause of Bitcoin Rally

CEO of ADVFN, Clem Chambers, thinks that devaluation of the Chinese yuan (CNY) due to a growing trade war between the United States and China is the real reason for the July 2018 Bitcoin rally.

The Bitcoin bear market has abruptly reversed into a rally during the latter half of July 2018, with Bitcoin’s price increasing from USD 6,100 to as high as USD 8,500. Many experts and speculators thought this rally was in anticipation of the approval of the first Bitcoin exchange traded fund (ETF) by the United States Securities and Exchange Commission (SEC). However, the SEC rejected the Winklevoss Bitcoin Trust ETF and thoroughly explained how they will not be approving any Bitcoin ETF anytime soon, yet the Bitcoin market barely reacted. As of this writing on 29 July 2018, after the ETF rejection news has had days to sink in, the price of Bitcoin is hovering above USD 8,200.

Chambers says Bitcoin is the new gold but far better. Like gold, Bitcoin can be used as a safe haven investment when fiat currencies are losing value. Unlike gold, Bitcoin can be purchased instantly, held on a computer, sent anywhere in the world instantly, and then converted back to fiat instantly. This whole process can be practically invisible with Bitcoin, whereas with physical gold the process is cumbersome and risky.

The Bitcoin rally occurred two days before a devaluation of the CNY, and Chambers believes this was insider trading. Even though CNY to Bitcoin trading is banned, it is still easy to do due to the decentralized and worldwide nature of Bitcoin.

The exchange rate of the CNY to USD has declined from 0.156 to 0.147 (7%) since June. This is due to the growing trade war between the United States and China which has seen hundreds of billions of dollars of tariffs issued. Devaluing the CNY is a mechanism by which the People’s Bank of China can gain an upper hand in the trade war, since it increases the trading surplus with the United States, increasing the impact of Chinese tariffs against the United States. Simultaneously, CNY devaluation is accomplished with massive amounts of money printing, which swells China’s treasury.

Chambers told Forbes that if the trade war goes into “meltdown” then Bitcoin’s price will “moon”. Based on this logic, Bitcoin investors should keep an eye on news about the trade war and the CNY/USD exchange rate, since it might have a bigger impact on Bitcoin’s price than anything else at this point.

 

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ADVFN CEO Says Bitcoin’s Price Will Decline to $2K Before Rising to $100K

The CEO of ADVFN, Clem Chambers, foresees Bitcoin declining to USD 2,000 before eventually rising to USD 100,000.

Chambers says, “The blockchain will be the way of the future which will be like the internet was to the generation before. Bitcoin will probably be part of that future in the long term. Will Bitcoin go back over from its previous high? It will probably hit USD 2,000 before it hits USD 20,000. But will it hit USD 20,000? I think so. Will it hit USD 100,000? I think that’s quite likely.”

ADVFN is a financial markets website founded in 1999 that monitors over 70 stock exchanges around the world, and is well-known for its internet forums. Chambers now joins the ranks of many other financial and cryptocurrency experts that expect Bitcoin’s price to rise by orders of magnitude in the long term.

Ethereum co-founder Charles Hoskinson thinks tens of trillions of dollars will be entering crypto markets as institutional investment into crypto becomes mainstream. Cryptocurrency expert Michael Strutton thinks the approval of the first SEC-regulated Exchange Traded Fund (ETF) for Bitcoin will drive Bitcoin’s price up to USD 35,000. The CEO of BitMEX, Arthur Hayes, has made a similar prediction, saying a Bitcoin ETF will cause a rally to USD 50,000.

Additionally, Chambers says, “Governments will make their own crypto, they will come and they’ll be great.”

There have been several countries considering the idea of a state-backed cryptocurrency, but so far the Bahamas and Venezuela are the only countries to have made official announcements that they are creating a native cryptocurrency.

Deputy Prime Minister Kevin Peter Turnquest of the Bahamas says, “The production of a modern fully digital payment service is the way forward for this era of governance. A digital Bahamian currency is especially important for the many Family Islands as they have seen many commercial banks downsize and pull out of their communities, leaving them without banking services. As an island nation, where transportation can be an inconvenience for many, especially the elderly, and costly, we must offer financial services digitally and securely.”

Chambers further says, “There’s a shortage of actual money in the world. That’s what people, I don’t think, have worked out. They are not creating enough money to make the world go around. The cryptocurrencies are filling that vacuum. Because that’s an economic suction going on there and the cryptocurrencies are filling that vacuum. It will generate an economic lift.”

 

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