Economist Jim Rickards forecasts that gold prices could surpass ,000, emphasizing that this projection is not made for attention or shock value. “It’s the result of rigorous analysis,” he clarified. This represents a significant increase from his previous estimate of ,000 by 2026. Jim Rickards’ K Gold Prediction Explained Economist Jim Rickards shared his prediction […]
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‘Big Short’ Investor Michael Burry Goes Hard on Gold, Invests $10 Million in Q1
Michael Burry, an investor famous for making a fortune by anticipating the 2007 subprime mortgage crisis, made a sizable bet on physical gold. According to regulatory filings, Burry’s Scion Asset Management purchased over 440,000 Sprott Physical Gold Trust units, a closed-end fund that invests and holds its assets in physical gold bullion. Big Short’s Investor […]
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US Inflation Data Indicates Slight Cooling in April; Gold, Silver, and Cryptos Climb
The latest report from the U.S. Labor Department’s Bureau of Labor Statistics reveals that the consumer price index (CPI) for April climbed by 0.3%. Over the last 12 months, the CPI increased by 3.4%, primarily driven by higher costs for shelter and gasoline. Relief Rally in Financial Markets as April CPI Data Shows Subdued Inflation […]
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Peter Schiff: Gold, Silver ‘Ready to Explode Higher’ — Sees ‘Biggest Precious Metals Bull Market in History’
Gold advocate and economist Peter Schiff has predicted an explosive rise in gold and silver prices. While encouraging investors to “Take advantage of what could be the biggest precious metals bull market in history,” Schiff calls bitcoin “dead money,” expecting outflows from spot bitcoin exchange-traded funds (ETFs) to “soon put significant downward pressure on bitcoin.” […]
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Analyst Heralds Multi-Year Bull Market For Gold: $8,000 per Ounce at Play
Jan Nieuwenhuijs, a gold market analyst, has predicted a new multi-year bull market for gold. According to different factors, including the low percentage of gold as part of the global international reserves, and the size of the equity market, gold prices might be preparing to rise, putting prices of ,000 per ounce in the realm […]
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Analysts: Gold Rush In China Is Propping Prices Up
The interest and high demand for gold products in China is one of the factors that is propping the price of the precious metal up in international markets. Several analysts believe that the loss of confidence in traditional investment options in China, and the geopolitical factors and U.S. sanctions have contributed to this end. China […]
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Analyst: Gold and Silver Set to Rally Amidst a Collapse of the US Financial System
Egon von Greyerz, a former banker and gold analyst, claims that gold and silver are set for a price rally amidst an upcoming collapse of the U.S. financial system. Von Greyerz states that interest rates will exceed 10% in a hyperinflationary environment, fueled by the issuance of unlimited debt and the loss of trust in […]
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Stablecoin Giant Tether Strikes Gold: Achieves Record Net Profit Of $4.5 Billion In Q1
Stablecoin issuer Tether, a prominent player in the cryptocurrency market behind the widely used USDT stablecoin, has released its audit statement for the first quarter of 2024, accompanied by a report conducted by independent accounting firm BDO.
The report, which provides additional financial information beyond the reserves backing Tether’s fiat-denominated stablecoins, shows the company’s profit for the first quarter of the year, which saw an increased influx of capital into the market.
Tether Q1 2024 Financials Soar
Digging into the numbers, the first quarter of 2024 proved highly profitable for Tether, with a net profit of .52 billion.
The main contributors, the entities responsible for issuing stablecoins and managing reserves, reportedly generated approximately billion of this profit from net operating gains, primarily from US Treasury holdings. The remaining profits were attributable to mark-to-market gains on Bitcoin (BTC) and gold positions.
The report also highlighted Tether’s success in increasing its direct and indirect holdings of US Treasuries to over billion. This includes indirect exposure through overnight reverse repurchase agreements collateralized by US Treasuries and investments in US Treasuries through money market funds.
In a sign of significant growth, Tether also disclosed its net equity for the first time, revealing a figure of .37 billion as of March 31, 2024. This is an increase from the .01 billion equity reported as of December 31, 2023.
The report also highlighted a billion increase in excess reserves, which support the company’s stablecoin offerings, bringing the total to nearly .3 billion.
CEO Emphasizes Transparency And Stability
The BDO confirmation reiterated that Tether-issued tokens are 90% backed by cash and cash equivalents, underscoring the company’s stance on maintaining liquidity within the stablecoin ecosystem. Furthermore, the report revealed that over .5 billion worth of USDT was issued in the first quarter alone.
Tether Group’s strategic investments, which exceed billion as of the report date, span various sectors, including artificial intelligence (AI) and data, renewable energy, person-to-person (P2P) communication, and Bitcoin Mining.
In response to the latest report, Paolo Ardoino, CEO of Tether, expressed the company’s commitment to transparency, stability, liquidity, and responsible risk management.
Ardoino highlighted Tether’s record-breaking profit benchmark of .52 billion and the company’s efforts to increase transparency and trust within the cryptocurrency industry. Ardoino further claimed:
In reporting not just the composition of our reserves, but now the Group’s net equity of .37 billion, Tether is again raising the bar in the cryptocurrency industry in the realms of transparency and trust.
Featured image from Shutterstock, chart from TradingView.com
In a Sea of Mining Giants, One Solo Miner Strikes Digital Gold by Finding Bitcoin Block 841,286
While bitcoin mining has become increasingly difficult and block rewards have dropped from 6.25 bitcoins to 3.125 bitcoins, a solo miner discovered block 841,286. Bitcoin’s Harsh Mining Climate Yields Treasure for One Solo Entity Mining bitcoin (BTC) has become significantly challenging, with the network’s difficulty reaching an all-time high of 88.10 trillion. This complexity, coupled […]
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Bitcoin Miners Strike Gold: $107 Million Profit From Runes-Fueled Minting Spree
Bitcoin miners have struck a proverbial goldmine, reaping an astonishing 7 million in profits, according to data from Glassnode, a leading analytics platform. This unprecedented windfall, amassed on April 20th, underscores a significant shift in the revenue dynamics of Bitcoin mining operations.
The meteoric rise in transaction fees serves as a bellwether for the evolving economic landscape of Bitcoin mining. As the network adapts to new market demands and technological advancements, transaction fees have emerged as a crucial revenue stream for miners. This trend is particularly noteworthy given the scheduled reductions in block rewards, highlighting the resilience and adaptability of Bitcoin’s economic model.
According to glassnode, affected by the Runes minting activity, on April 20, Bitcoin miner revenue reached US6.7 million, of which 75.444% came from network transaction fees, both reaching record highs. https://t.co/lVSyqn1UaE pic.twitter.com/xjkkTor2I9
— Wu Blockchain (@WuBlockchain) April 21, 2024
Runes-Fueled Minting Spree Boosts Miner Revenue
Driving this surge in profitability is a recent minting spree focused on Runes, a pivotal development that has left a tangible mark on the network’s dynamics. Reports indicate that a staggering 75% of the total profits stemmed from transaction fees, marking a new pinnacle in the distribution of revenue among BTC miners.
Runes is similar to Ordinals; they both let users permanently store data directly on the Bitcoin blockchain, like an inscription etched in stone. But there’s a key distinction in what they store: Ordinals are one-of-a-kind digital collectibles, similar to fancy trading cards.
Runes, on the other hand, are designed to act more like meme coins, those widely tradable and often humorous tokens that have been a recent craze in the crypto world.
This paradigm shift in income composition underscores the growing importance of transaction fees as a vital income source, especially as block rewards face planned reductions in the context of Bitcoin’s halving system.
This financial triumph comes amidst ongoing debates surrounding the sustainability and profitability of mining activities. With escalating energy demands and mounting regulatory scrutiny, the viability of mining operations has been called into question. However, the recent data paints a reassuring picture of the economic vitality of Bitcoin mining, demonstrating its resilience in the face of external pressures.
Implications For Bitcoin’s Future
Beyond the immediate financial gains, the surge in transaction fees holds profound implications for the future trajectory of Bitcoin. The unprecedented collection of fees signifies robust network activity and user engagement, indicating strong demand and utilization of the Bitcoin blockchain.
This bodes well for the long-term sustainability and development of Bitcoin as a prominent digital currency, bolstering confidence among stakeholders and enthusiasts alike.
Featured image from VistaCreate, chart from TradingView