Month: April 2018

The privatization of cash….

Thursday 26th April 2018

The privatization of cash….

Cast your mind back to the 80s and the conservative administration of Margaret Thatcher….

It’s a long time ago. And I know that it might be painful to recall a time when we all had more hair and trimmer waistlines – a time when much of what is now behind us still lay ahead, full of promise and potential….

But there is purpose in my request….

I want to briefly revisit the era that saw the Iron Lady – in cahoots with her long-time Trade Secretary, Keith Joseph – dispose of more than 50 nationalized British industries into the private sector….

  • From public to private….

You might recall that the process began with the privatization of British Petroleum in October 1979. The privatization of British Aerospace followed in February 1981….

Then British Telecomm in 1984. British Gas – via the ‘Tell Sid’ television campaign – in 1986. Rolls Royce in 1987. Then British Airways and the water utilities in 1989. The electricity boards were the next domino to fall in 1990….

The privatization of British Rail began in 1994 – with track and infrastructure passing to the private sector. Passenger services headed the same way later….… Click here to read more

The beginning of the big rebound?

Wednesday 18th April 2018

Good morning, Oliver,

The beginning of the big rebound?

Bitcoin has been one of the biggest – if not the biggest – story in the world of money over the last 12 months….

This column has done its bit to chart the various ups and downs. You can revisit our output in the archive on the Money Truths website….

Without ever setting out to do so, I’ve written extensively on the subject – learning as I go….

Perhaps the most interesting feature of the whole exercise for me was to observe how my own mind operated during the peak of the Bitcoin mania….

Even though I knew that Bitcoin was in the grip of a mania and that the huge increases in the price of Bitcoin were the direct result of a speculation bubble – I stillfound myself grappling from time to time with the fear that I was missing out….

  • The fear of missing out….

Towards the end of 2017 a lot of people believed that getting rich was as easy as buying Bitcoin and holding on to it for a week or two before selling it on at a massive profit….

People were buying the cryptocurrency on their credit cards….… Click here to read more

Looking beyond the foreground….

Thursday 12th April 2018

Looking beyond the foreground….

Futures contracts are a recent addition to the cryptocurrency sector….

The Chicago Board Options Exchange (CBOE) went live with Bitcoin futures contracts in mid-December last year.

Just a week later, the CME Group (CME) – the world’s largest futures exchange – followed suit….

At the time, Bitcoin was trading close to its all-time high. It seemed like all you had to do to get rich was to buy as much of the cryptocurrency as you could afford, wait a few days and sell to the next willing buyer….

Many Bitcoin players, pundits and sideline observers saw the introduction of futures contracts as the catalyst that would lift the cryptocurrency to even greater heights….

But things seldom work out as expected. And that’s how it proved in this instance….

The introduction of Bitcoin futures contracts acted as the catalyst that has seen Bitcoin fall from $20,000 to $6945.26 this morning….

Given the opportunity to go long and short on Bitcoin, traders took the opportunity to call out what they clearly believed was an over-extended Bitcoin price. And it’s been downhill all the way ever since….

  • The catalyst that re-ignites the boom?

There are signs that market expectation is beginning to stir again….… Click here to read more