MAY 2019 / NO. 1
TAGS: BITCOIN, GOLD, CYCLES, SATOSHI NAKAMOTO, NSA, HEDGE FUND, ASSET MANAGER, FINANCIAL ADVISOR, PREDICTIVE, FORESIGHTS, STRATEGY, INTELLIGENCE
SECTOR: CRYPTOCURRENCY, PRECIOUS METALS

Gold cycles, correlations & a grand design for Bitcoin?

“It is indeed true that the stock market can forecast the business cycle.”
– Paul Samuelson
“In action be primitive; in foresight, a strategist.”
– Ed Koch
 
On the 22nd of May 2010, Laszlo Hanyecz made the first real-world transaction using Bitcoin paying for two pizzas in Jacksonville, Florida, United States. His bill at the time; 10,000 BTC. In current day value of Bitcoin this would have cost him nearly $54,762,500.- (as of the 24th of April 2019). A healthier option might have been, to make himself a sandwich.

 

Origin of Bitcoin

Bitcoin has known many controversies over its short life span, especially in relation to its creator(s) and the infrastructure behind it. Most people believe that a single Japanese man by the name of Satoshi Nakamoto is behind its creation, however, most likely, a pseudonym for another man, woman or group of people. Wild speculation have ranged from, Craig Steven Wright an Australian Academic to Elon Musk CEO of Tesla, being the likely candidates, however till date none have turned out to be Satoshi Nakamoto. Others have pointed to the National Security Agency (NSA) being the likely candidate, as it was the first organizations to describe a Bitcoin-like system was the designer of the secure hashing algorithm called “SHA-256” used by Bitcoin. It was a group of NSA information security researchers, about twelve years before Satoshi Nakamoto published his legendary white paper, who published a paper entitled “How to Make a Mint: the Cryptography of Anonymous Electronic Cash” in two prominent places. The first being an MIT mailing list and the second being much more prominent, The American Law Review (Vol. 46, Issue 4). NSA has much to benefit from this unsecure and transparent form of payment. We will probably not know in the short-term who was really behind its creation.

 

Bitcoin & Gold Correlations?

On the 6th of September 2018 a very interesting tweet appeared online in which a user by the name of Nunya Bizniz uploaded two charts, headed by the title “BTC vs Gold (Both Log Scale) Uncanny pattern resemblance between Golds 43 years of chart data and Bitcoins 9[sic] years.” In these charts he showed a comparison between the Gold price over 43 years and that of Bitcoin over a ±5 year period. The results were amazing. Bitcoin followed the same trend as Gold but over a shorter period of time.
People have speculated about this correlation and given different opinions on it, often without any foundation.
Below you can find these charts reproduced for your convenience. Pay particular attention to the red arrows pointing to areas of particular clear correlations.
[the chart will take a few seconds to load]

You can clearly see identical periods for these different markets. There are periods that correlate very well for different periods of time, years against months, weeks against days. What Nunya Bizniz and other probably didn’t realize at the time, that this behaviour is most likely FRACTAL in origin, that results in Bitcoin having similar patterns as Gold over different periods of time. There are cycles harmonics at play here. There are other examples of fractals over different markets, in the past for example between Blockbuster Video and ExxonMobil, which showed to follow each other.

 

Predictive Foresights of Bitcoin

So how do these cycles influence Bitcoin today? Having identified the cycles that mostly influence Bitcoin, we can now make the Predictive Foresight. Below you can find two charts. Each chart shows the Predictive Foresight for Bitcoin for the next month. If we identified the correct cycles, the Bitcoin price will be (indirectly) influences by them, and follow our Predictive Foresight with 65+ percent preciseness.
[Keep in mind, it is the “turning points” & “direction” that we are looking for, not the amplitude/height. if scaling flattens the actual price line, Use the zoom function to see the actual price line follow the Predictive Foresight line again nicely]

 

How to use this knowledge?

Having access to this kind of knowledge is non trivial. Knowing when Bitcoin or other financial assets might increase or decrease can help manage them. Hedge fund and Asset managers can make more safe investments. Financial advisors can better advise their clients and limit the exposure to asset and/or market crashes like the one of 2008. In general, managers, professionals & Business Leaders can make short & long term adjustments to their forecasts based on over 80 years of scientific research. Companies can stay ahead of their competitors by building a solid strategy using Predictive Foresights. Have you got access to this knowledge yet?

 

“Knowledge is power, but knowing the future is magic for the people that have no idea how you’re doing it”
– John Guta

 

Would you like to stay ahead of your competitors and build a solid strategy for your company? I’d encourage you to learn more about becoming a member of our Predictive Foresights™ Premium Service. We provide, with more than 65+ percent preciseness, Predictive Foresights on many subjects!
You can learn more about our Predictive Foresights™ Premium Service HERE.
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