The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Wednesday, February 28, 2018

While most unbacked cryptos continue to tread within ranges well below their December highs, a gold backed one just hit a new all-time price level

Since the severe corrections of late December and most of January in the cryptocurrency markets, there has been one segment of virtual currencies that have avoided most of the market's wild volatility.  And in fact earlier today on Feb. 28, one within this group just reached a new all-time high.

DGXDAO, or also known as the DGD coin, traded today for just under $600 which is an all-time high for the gold backed cryptocurrency.

DGD coin, the gold-backed cryptocurrency, has reached an all-time high on Tuesday with the coins trading at just under $600 each. 
Valued at $584, as of 13:30 GMT, DigixDAO has a market cap of $1.16bn. The circulating supply is at its hard cap of 2m. 
The coin, which began trading in May 2016, has steadily risen since November and on the 2nd of February had reached a record high when it was valued at $480; today’s valuation is over $100 higher than its previous record. – The Market Mogul

The Daily Economist update for Feb. 28 2018 - Finance and Economics Report

How did your cryptocurrency do for the month of February?

With over 1400 cryptocurrencies to choose from, and with an average of more than one per day being created, it is sometimes difficult to sift between the wheat and the chaff when it comes to putting your money in these speculative investments.  And while the turmoil of the equity and bond markets led to massive volatility in their own right during February, it also hit the crypto sphere as here is a list of the winners and losers in the cryptocurrency sector for the month.


Litecoin has enjoyed a very productive month beginning at around $150 and jumping over 20% to end closer to $221.
Neo has made small gains during the past month, beginning at around $130 on the first, falling to a low of $65 in the big dip and recovering well to end 10% higher at $143.
Monero has made some ground in February starting out at around $270 on the first and taking a huge drop on the 3rd to $188 and the 6th to $149. Since the start of the month XMR has made an 11% gain to finish it at just over $300.
Ethereum Classic has risen from $27 on February first to $36 at the end representing a 33% price hike for the original fork of ETH. 
OmiseGO has had an impressive month starting out at around $14.5 and ending on $20.5. The 40% jump makes OMG one of the top performing cryptocurrencies in the top 25 by market capacity. 
Zcash is also marginally up on the month trading at $416 from $390 at the beginning of it. 
DigixDAO also needs a mention, sitting outside the top 25 at number 30 it has performed extremely well in February doubling in price. Trading at around $240 at the beginning of the month the gold based token has jumped an impressive 108% to end the month trading just over $500.


Ripple’s XRP has also lost out this month beginning at around the $1.10 level and falling back to $0.95 at the month’s end.
Bitcoin Cash has slid back in February starting at around $1,450 and ending the month 12% lower at around $1,274.
Cardano has been a big loser in February, starting the month at over $0.50 and ending it over 35% down at $0.33.
Stellar Lumens has also had a terrible month with XLM starting at over $0.50 and ending at $0.36.
EOS started out well trading above $12 but has slid back throughout February by over 27% to around $8.90 where it currently trades.
Both Iota and anonymous altcoin Dash have been pretty flat trading marginally lower at the end of the month than the beginning. 
Nem has suffered the worst, XEM has slumped this month by almost 50% from just under $0.80 at the start to just under $0.42 at the end. – News BTC

Bill Gates goes full retard in correlating cryptocurrency use with people dying

It is a sad state of affairs when business moguls and Hollywood actors feel they can mandate changes to society simply because some members of the public may idolize these individuals for their work or accomplishments.  But as we have seen over the decades, celebrity opinions are often not for the benefit of society, but rather to support ideological agendas or in placating their own guilt trips.

One such individual is of course Bill Gates, who is best known for dropping out of college and accidentally revolutionizing the personal computing world through the purchase of an operating system license from a third party company.

Yet since his retirement from Microsoft, Gates has been extremely busy in what he calls 'humanitarian endeavors', but even these pursuits have not stopped the billionaire from using his influence to try to instigate changes to society, which now appear to include using propaganda to deter the growing cryptocurrency industry.

Microsoft founder Bill Gates has expressed major reservations about cryptocurrencies, warning that due to their use in the purchase of illegal dangerous drugs, crypto is actually killing people “in a fairly direct way.” 
During a Reddit ‘Ask Me Anything’ session on Tuesday – his sixth on the forum – Gates discussed various issues, from quantum computing, to how automation will affect society, and the technological advances he’s most looking forward to over the next decade. 
Then Redditer Askur1337 posed the question: “What’s your opinion on Crypto Currencies?” The tech billionaire responded with a word of caution, flagging his concerns over both anonymity of cybercurrencies and, more ominously, their role in “causing deaths.” 
Because of the anonymity it provides its users, cryptocurrencies such as bitcoin – unlike credit cards – can be used to buy fentanyl and other drugs on the dark web, Gates described it as “a rare technology that has caused deaths in a fairly direct way.” – Russia Today
You would think a 'highly intelligent' and successful businessman would come up with a much better reason to discount cryptocurrencies than this badly constructed straw man case of 'buying drugs anonymously', because the reality is, the dollar is used much more frequently in drug purchases than cryptocurrencies are, and the banks themselves make a killing on the laundering of money for the drug cartels.

Like with recent reports from both Bank of America and JP Morgan, the elite despise cryptocurrencies because they are a threat to their financial controls.  And thus Bill Gates is simply another Meryl Streep type celebrity who believes their opinion should dictate policy over the lives of people who want little more than to make their own choices.

Trump's nomination for the Fed Board of Governors wants to RFID cash to allow for negative interest rates while also taxing people who hold and use it

Contrary to popular belief, the agenda to ban or eliminate cash has not fully gone away.  And instead it is now being replaced with an idea from a potential new Fed Governor who wants to put RFID chips on every bill so those who want to deal in physical currency can be taxed just for holding it.

Marvin Goodfriend is a Keynesian economist who has ironically been nominated for the Fed Board of Governors by President Donald Trump, and who is a strong advocate of the central bank being able to control individuals through their use of money.

In the state’s relentless pursuit to scrutinize and control every citizen, including monitoring, tracking, and especially taxing their income, untraceable physical cash has long been a shield against such tyranny. However, thanks to Donald Trump’s nomination to the Federal Reserve Board of Governors, anonymous purchases, deposits, and savings with cash could soon be a thing of the past. 
Goodfriend is a central banking insider who’s spent decades moving in and out of government and central banks and his ideas are nothing short of Orwellian. 
Goodfriend’s idea was to insert magnetic strips into the bills. Each time the cash was returned to a bank, the money would be taxed at a pre-determined rate. That would discourage individuals from hoarding cash and remove one obstacle for central bankers in setting negative rates. 
Goodfriend is an advocate for both negative interest rates and tracking your cash—and this person is about to have a leadership position inside America’s central bank. 
Under the ostensible idea of reducing quantitative easing, Goodfriend would apply a tax directly to cash—stealing money from already taxed dollars—by tracking who is using it. According to Goodfriend, US currency should include tracking devices that let the government tax private possession of dollar bills—for your own good, of course. 
“The magnetic strip could visibly record when a bill was last withdrawn from the banking system. A carry tax could be deducted from each bill upon deposit according to how long the bill was in circulation,” Goodfriend wrote in his proposal. – The Daily Sheeple
As we here at The Daily Economist have been saying since 2008, the only way to win against the dollar, central banks, and the system is simply not to play. 

Tuesday, February 27, 2018

The Daily Economist update for Feb. 27 2018 - Gold, Bitcoin, and Cryptocurreny Report

As Fintech and Blockchain technologies accelerate in scope, the potential for new monetary systems built on gold and silver increase exponentially

Ironically, the same technologies that the banking system hopes to use to create a completely controlled cashless society are also the technologies that could potentially kill them as an institution.  And by this we mean that even now when the blockchain is in its infancy, there are dozens of different alternatives to using a bank to conduct your monetary affairs.

Cryptocurrencies like Bitcoin, along with gold backed financial services like GoldMoney, right now provide individuals and businesses an alternative to holding their cash in both dollars and in a legacy bank.  And when you add in one of the most important functions that banks used to provide prior to the 2008 financial crisis, there are also an ever growing number of ways to borrow capital outside of these institutions.

The keys to this potential of course are threefold.  First is the question of what type of assets, commodities, or resources are necessary to be able to handle a transition away from fiat currencies and sovereign banking systems.  Second is the question of whether retailers will accept new alternatives, especially if they become pressured to avoid these payment systems by corrupt and crony political authorities.  And lastly is the most crucial... will there be enough people willing to change their long-standing paradigm of relying on the banking system and venture out into the unknown world of the blockchain.

An example of the stubbornness of people I always like to use is when salaries and wages began moving away from printed checks to instead be directly deposited into their assigned bank accounts.  It took well over two decades for many workers to finally succumb to this evolution, because human nature is such that change can often be difficult to digest for many.

This type of change often requires either force or a crisis, and ironically the 2008 financial one that nearly brought down the entire banking system wasn't even enough to engender individuals to look for alternatives en masse.  This was because the majority of people's trust and security was much stronger in the government being able to find a solution rather than in themselves taking the time, effort, and responsibility to seize control over their own finances, as well as to protect their own future.

In a recent video over the weekend, long time metals analyst David Morgan spoke with The Daily Coin on one such platform on the blockchain that is being developed that could utilize silver as a medium of exchange, and an alternative to a corrupt and dying fiat currency system.  And this is but one of dozens of possibilities available to both businesses and individuals right now to proactively prepare for the inevitable dying of the current financial system that is a ticking time bomb just waiting for the right catalyst to bring it down.

Growing abhorrence to the dollar leading over 100 countries to line up to buy Venezuela's Petro cryptocurrency

Just when we thought Venezuela's oil backed cryptocurrency scheme was simply an attempt for Nicholas Maduro to hang onto power a little while longer, a funny thing happened when sales of the Petro went online.  And that is that there are now nearly 130 countries lining up to buy the Petro according to a government announcement.

True resource backed securities have almost become an anomaly in today's financial markets as nearly everything is tied purely to paper rather than to a physical commodity.  And this can be seen in the fact that the largest single sector in the world is that of the derivative markets.

But perhaps what is also underlying this sudden interest in a sovereign cryptocurrency being issued by a completely insolvent government is the even greater desire for nations to get out of the dollar, and find alternative ways to purchase their oil in currencies outside the global reserve.

According to Maduro, investors from 127 countries have requested the purchase of the Venezuelan oil-backed cryptocurrency petro. 
“Petro is the future of Venezuela and the world. This cryptocurrency is linked to the future of economy, production and finances in the region,” Maduro said during his speech at the ceremony in Caracas. 
The Venezuelan President has also clarified that 87,200 users in total have requested the purchase of el petro, out of which 3,520 were enterprises, while 83,760 were individuals. Some of those numerous requests were from Australia, Germany, Belarus, Brazil, Cuba, Spain as well as the US, France, Saudi Arabia, etc. – Sputnik News
Indeed, if reports are correct, Petro sales have already surpassed $1 billion in just the first two days of their ICO.  And when you couple this alternative model with China's soon to be initiated Yuan-denominated oil contract, the ability for nations to bypass the 45 year old Petrodollar system without too much fear of retaliation by Washington will open the door to not only how countries purchase oil, but also in the creation of methodologies on the Blockchain for an entirely new financial system that doesn't require a reserve currency.

Monday, February 26, 2018

Cryptocurrency sector increasingly being swallowed up by Wall Street as Goldman Sachs backdoors into a cryptocurrency exchange

If you can't beat them, co-opt them.  This is a Daily Economist modification for a well known axiom.  And when you are Wall Street and cannot do the former, then what remains is to simply take over a given industry, asset, or paradigm to then control it yourself.

Wall Street's co-opting of the cryptocurrency sector began in earnest back in December when the CME issued its first Bitcoin futures contract.  And now just two months later, Goldman Sachs of all entities has expanded this foundation through a company it backs in the purchase of a cryptocurrency exchange.

Circle, a cryptocurrency-focused financial-services firm, will announce today that it is buying crypto exchange Poloniex—a move that immediately makes Circle one of the largest and most influential companies in the industry. Fortune’s Robert Hackett profiles a company that hopes to leverage the technology behind Bitcoin to become the bank of the next century. - Fortune
Ironically this move appears to have been taken well by the cryptocurrency markets as Bitcoin spiked back over $10,000 per coin shortly after news of this takeover came out.

Korean company to create new gold backed cryptocurrency focused on miners exchanging their output from other cryptocurrencies

While there are several new gold backed cryptocurrencies that actually appear to be beneficial in their business models, some of course seem to be stretching their missions and scopes to absurd levels.  And perhaps one of the most curious of these is a new gold backed cryptocurrency coming out of Korea that is focusing on crypto miners and their output from other cryptocurrencies.

Korean startup GoldMining announced that it would exchange mined cryptocurrency for gold at Korea Exchange Gold Market, store the gold at Korea Securities Depository (KSD) and issue a gold-backed digital currency. 
“Our project is to become a bridge connecting the cryptocurrency market to the real economy in order to pioneer a digital currency market based on gold. Gold will sit safely in KSD vaults operated by a government agency. Tokens will be valued by gold, the safest ever in human history” 
Pre-sale of tokens will start on April 1. 
GMC and GSC tokens will be issued. GMC stands for Gold Mining Cryptocurrency. GMC tokens can be bought through the token sale. One Ethereum represents 30,000 GMC tokens. Pre-ICO is offering up to 30 percent bonuses for early buyers. The earlier you buy tokens, the more bonuses you will get. 
GSC stands for Gold Standard Cryptocurrency. This cannot be purchased through the token sale. Gold stored at KSD is allocated proportionally only to GMC token holders. 
A total of five rounds of token sale will be held with the goal of raising about $50 million. 
If the token sale comes to a successful conclusion, GoldMining will be able to buy and store more than 100 kilograms of gold a month and secure more than 1 ton of gold within a year. – Businesswire
If this ICO doesn't intrigue you to believe that the ongoing cryptocurrency mania isn't similar to the Dot Com bubble era, then perhaps you should look into the resurrection of the Beanie Baby bubble, which astoundingly is making its own comeback in the collectible markets.

Like clockwork, here come the Neo-cons and Neo-libs to go after Venezuela for threatening dollar hegemony

At this point in history there are a few sure things in life.  The sun will rise each morning, the human body needs sustenance to function properly, and the U.S. will do anything to protect their place as the singular authority over the global reserve currency.

The 21st century is chock full of examples of what happens to nations and leaders who even remotely dare to threaten dollar hegemony.  Iraq, Libya, Iran, and even Russia are just a few of the countries that have been attacked with either military or economic war by the U.S. in the past two decades, and even China is not immune as the White House is beginning to threaten them with a trade war just weeks before the implementation of a yuan-denominated oil contract.

So it should come as no surprise that shortly after Venezuela ICO'd a sovereign cryptocurrency meant to help their economy bypass the dollar, neo-conervatives and neo-liberals in Congress are already calling for economic sanctions to be placed on the South American nation despite the fact that it is very likely this new cryptocurrency will result in little more than a nothingburger.

Venezuela on Tuesday announced the launch of its own oil-backed cryptocurrency called the petro which, it claims, is the world's first sovereign cryptocurrency. The petro may allow the country to combat US-imposed sanctions amid a deep economic crisis in the country. 
Venezuelan President Nicolás Maduro said he hopes the petro will become an alternative national currency to the bolivar, which is now only worth 0.00003 USD — following years of hyperinflation. According to the president, the petro token had raised $735 million on its first day of a pre-sale. 
Late last month, Menendez, together with fellow Republican Marco Rubio, co-authored a letter to US Secretary of the Treasury Steven Mnuchin condemning the creation and use of the petro. 
"We are concerned that a cryptocurrency could provide Maduro a mechanism by which to make payments to foreign lenders and bondholders in the United States, actions that would clearly thwart the intent of US imposed sanctions," the Senators wrote. 
The lawmakers urged the Treasury Department to monitor the petro's progress and offered insight into what actions the department could take to foil the token's use as a means to bypass US sanctions. – Sputnik News
It is ironic that the U.S. cares little for the plight of millions of Venezuelans who are even now starving to death under mass hyperinflation, and instead are completely bent out of shape in Maduro creating a oil and gold backed cryptocurrency that may or may not survive when put onto international financial markets.  But sadly that is the world we live in, where the imperialists of today function in the same capacity as the imperialists of the past.

Cryptojacking is the Word, and the Word is cryptojacking as Office application exploit allows hackers to use your pc for crypto mining

Microsoft Word is one of the most highly used applications on personal computers (PC's) around the world.  So it should come as no surprise that cyber-hackers would focus on this and other types of common applications to find exploits in which to conduct their illegal activities.

And sadly it appears they have succeeded thanks to certain functions within Microsoft Word that allows malware to exploit its video feature to turn your pc into a cryptocurrency mining node.

Graphic use courtesy of Null Byte
Microsoft Word's Online Video feature essentially allows an online video to be inserted into a document without actually being embedded, so as not to increase the file size. 
However, cybersecurity company Votiro warns that this particular widget may be exploited by criminals seeking to hijack your computer in order to make themselves some digital currency. 
The videos viewed via Word’s Online Video feature runs as an HTML code in an encapsulated iexplore.exe process, and "as only basic sanitization is performed on the provided HTML, it poses several security risks," Votiro points out.For example, criminals may ‘cryptojack’ their target’s computer by posting the video on a website containing a script that forces a CPU to mine cryptocurrency for as long as the browser is open. 
Also, this possible vulnerability allows a computer to be infected with an exploit-kit, potentially turning it into a criminal’s "own remote money-maker machine" if they infect it with a cryptocurrency miner, or to be used in phishing schemes. – Sputnik News
Just when you thought it was safe to jump back into the Word processing pool. 

Bitcoin anonymity is no match for the IRS as largest U.S. exchange to hand over transaction records

On Feb. 23 the largest cryptocurrency exchange in the U.S. sent out official notices to over 13,000 customers of an impending data dump of their trading transactions to the Internal Revenue Service.

Focusing primarily on individuals who conduct high volume trading through the exchange due to a court ruling last year, the IRS is using the power of taxation to crackdown on Bitcoin and other cryptocurrency trading in U.S. markets.

US-based cryptocurrency exchange and wallet service Coinbase sent an official notice Friday, Feb. 23 to approximately 13,000 of its customers whose information it is legally required to turn over to the US Internal Revenue Service (IRS). 
The IRS had initially asked Coinbase in July 2017 to hand over even more detailed information on every one of its then over 500,000 users in an attempt catch those cheating on their taxes. However, another court order in Nov. 2017 reduced this number to around 14,000 “high-transacting” users, which the platform now reports as 13,000, in what Coinbase calls a “partial, but still significant, victory for Coinbase and its customers.” 
On Friday, Coinbase told the around 13,000 affected customers that the company would be providing their taxpayer ID, name, birth date, address, and historical transaction records from 2013-2015 to the IRS within 21 days. – Coin Telegraph
Back in 2013 a Federal court out of the jurisdiction of New York ruled that Bitcoin and other cryptocurrencies were determined to be securities, and as such subject to capital gains taxes.  And rather than attempt to fight the validity of what the industry itself calls 'digital currency', government and elected officials have remained neutral in choosing whether to attack cryptos on the grounds of legal tender laws and instead are focusing on using taxation as the means to regulate the industry.

Sunday, February 25, 2018

Cryptocurrencies are starting to look like Dot Com bubble companies as nearly half have collapsed without having a viable product

The middle to late 1990's was a unique period in financial history as trillions of dollars were pushed into equity companies all because their business models were tied to the internet craze.  And when the dust settled following this Dot Com bubble crash in 2000, the majority of these companies simply disappeared because they never really had any viable products or services.

2017 saw the rise of a new market mania thanks to the evolution of the Blockchain and the success of cryptocurrencies like Bitcoin.  And in many ways this craze is looking exactly like the Dot Com era since the number of crytocurrencies rose from 600 at the beginning of the year, to over 1300 by the end of it.

The total value of all cryptocurrencies in the world will hit $1 trillion in 2018, the CEO of one of the world's largest digital wallet platforms told CNBC Monday. 
There are over 1,300 cryptocurrencies in the world such as bitcoin and ether with the total market capitalization totaling over $587 billion, according to data from industry website Market cap refers to the total value of all of the digital coins in circulation. - CNBC
However 2018 has not started out the way most cryptocurrency advocates have imagined it would, and in a new report out on Feb. 25, nearly 50% of all the cryptos created last year have already fizzled out in a similar way that Dot Com companies did almost two decades ago.
The rapid rise of Bitcoin’s value in 2017 has prompted a number of new cryptocurrencies to pop up. Now, a lot of these cryptocurrencies have already seen their fall. 
According to and Tokendata, around 902 cryptos were launched in 2017. Forty-six percent of this number have fizzled out since then. Some failed right from the funding stage, while more either ran off with the money or could not get enough publicity. A few of those that ran off with investor money even managed to raise over $10 million (about P500 million). 
Apart from this 46 percent, around 113 are classified to be semi-failed. It’s either due to the lack of activity in social media or a community that’s too small to support the fledgling cryptocurrencies. - Inquirer
Interestingly however, one of the areas within the cryptocurrency sphere that has grown here in 2018 are the resource or commodity backed cryptos, especially those being backed by physical gold.  And in many instances these companies are also building payment systems as well as banking models which provide alternatives to the current financial systems being run and controlled by sovereign entities.

There was alot of money to be made for the quick and agile during the Dot Com bubble, just as there is today in the mania that is cryptocurrencies.  But as we are also seeing today, the sudden demise of these cryptocurrencies is mirroring the sudden demise of most internet based companies who sought to simply profit from the feverish markets of the late 90's, and the greed of individuals looking for a fast buck.

Austrian Finance Minister to push for EU wide rules on cryptocurrency trading by using same regulations as gold and derivative markets

A couple of weeks ago we published an article on how finance ministers in both Germany and France are pushing for a global cryptocurrency framework at the upcoming G20 meeting in Buenos Aires.  Now on Feb. 23 the Austrian Finance Minister is looking to offer his own regulatory framework for the European Union as a whole which would put cryptocurrencies in the same boat as gold and derivatives trading.

Graphic use courtesy of BTC Manager
Austria’s Finance Minister Hartwig Löger is considering basing cryptocurrency regulations on the trading rules already in place for gold and derivatives as a way to prevent crypto from being used in money laundering, Bloomberg reported Friday, Feb. 23. 
Löger spoke with Portugal’s Finance Minister Mario Centeno about his plans for pan-European Union crypto regulations on this basis yesterday, according to local news outlet
During the meeting with Centeno, Löger discussed an action plan for the EU Commision in Brussels to form a working group in March to accept EU proposals about how to deal with fraud in cryptocurrencies. 
Löger said, "the case in Austria is enough for me to take action in this area," reported, referring to the recently uncovered Optioment Bitcoin (BTC) pyramid scheme. 
Löger has also brought up the idea of a Fintech Regulatory Council to be organized by March, where crypto experts will examine how crypto regulation will work with EU institutions. 
As part of Löger’s plan, crypto investors would report trades of more than $12,300 to the financial intelligence unit, and crypto trading platforms would be supervised by the Austrian Financial Market Authority (FMA). 
Additionally, Initial Coin Offerings (ICO) would be based on “digital prospectuses” that would need to be approved by the FMA, and regulations against market manipulation and insider trading would be applied to ICOs, just as they already are for share and bond offerings. – Coin Telegraph
As noted above, thus regulatory proposal would potentially remove the transparency mechanism for cryptocurrency trading by limiting the amount of money traders can earn before they must be reported to an EU financial body.

Despite their slow integration as a medium of exchange, one major bank fears cryptocurrencies as a serious threat to the banking system

In their annual SEC filings, Bank of America made it quite clear that they believe cryptocurrencies pose a serious threat to their business, as well as the banking system as a whole.

In fact earlier this month BofA, along with JP Morgan Chase and Citigroup, banned the use of credit cards in the purchase of cryptocurrencies, leading many to speculate that this action was tied directly towards competitive fears rather than as process to protect customers from potential frauds or scams.

Graphic use courtesy of Cointelegraph
Bank of America considers cryptocurrency a material risk to its business, public records reveal. The bank has made efforts to restrict its customers’ use of bitcoin and other virtual currencies. 
In its annual filing with the Securities and Exchange Commission, the bank admitted cryptocurrency poses a competitive threat to its business on three separate occasions within the document. The bank said there is a risk that its customers could turn to cryptocurrencies adding that, "Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies." 
Bank of America, Citigroup and JPMorgan Chase have banned purchases of cryptocurrency on their credit cards, starting February. Bank of America has also placed restrictions on its Merrill Lynch brokerage clients when it comes to bitcoin-related investments, the Financial Times reports. – Russia Today

Saturday, February 24, 2018

Planned ICO will not only create a gold backed cryptocurrency for payments, but also establish a private central bank on the Blockchain

The 32nd known gold backed cryptocurrency is now in the works as an announcement on Feb. 24 by Golden Currency is seeking to take the Blockchain to new heights by creating not only a gold backed currency payment system, but also a 'private central bank' for the purpose.

Golden currency will be both a physical and digital currency that will offer all the protections of a Blockchain crypto while also acting as the payment processor for its use as a medium of exchange.

The project of the first global private money is planning an USD 200 million ICO (initial coin offering). The new currency will be used both for cash and electronic payments, will be 100%-backed by gold, will provide fast and cheap crypto currency and fiat currency exchange and payments, and will provide many other advantages to successfully compete with fiat money.  Golden Currency. 
The name of the new currency that will be issued is Golden. The project involves not only the establishment of “private Central Bank” and issuance of the currency, but also all the infrastructure for it, including global bank network with ATMs, bank cards, POS-terminals and crypto-fiat-currency exchange.

The ICO of the project is coming in 2018, the seed round of financing is already started and will be live till April. According to preliminary valuation, the ICO could be one of the largest in the market with preliminary USD 200 million target. At the current stage the developers announced the start of the project to examine the demand, to start an open discussion of the project with the wide society and potential anchor investors – the aim of Golden Currency developers is to fulfill all regulations and investors demands to be able to conduct fully legal ICO on the markets, where such regulation is needed (for example, USA).

The Golden currency will be used for cash and electronic payments and wire transfers. The global network of Golden banks will provide online bank and phone apps with integrated currency exchange and global low-cost real time payments. Multicurrency accounts for users will provide the possibility of currency-agnostic payments and real time low-cost fiat and crypto currency exchange. - Digital Journal
While it is still early in the process, it is interesting to see a concept such as this where the attributes of money, gold, cryptocurrency, and a private central bank are all integrated under one roof, and where the model be utilizing the Blockchain platform to ensure security and transparency.

Friday, February 23, 2018

The Daily Economist update for Feb. 23 2018 - U.S. Finance and Economics Report

Where 2017 was the year of the unbacked cryptocurrency, 2018 is revealing itself to be the year of the resource and gold backed one

By a wide margin, 2017 was the year of the Cryptocurrency, with tokens such as Bitcoin, Ethereum, Litecoin, and others providing growth and returns never before seen in any market or asset class.

However since the start of 2018, most cryptocurrencies have fallen well below their all-time highs achieved around the middle of December of last year.  And this even includes the grand-daddy of them all (Bitcoin) as the biggest name in cryptos remains close to 50% below its all-time high price.

But with this being said there is a growing convergence in the cryptocurrency sphere, and it is being driven by a sector that is seeking to differentiate itself from the legacy of unbacked cryptos that primarily were created to try to replace sovereign fiat currencies.

These cryptocurrencies of course are the ones being backed by actual commodities or resources.  And even as the unbacked cryptos struggle to regain momentum following their recent two month bloodbaths, many of the gold backed cryptocurrencies are actually thriving and providing greater returns than either Bitcoin or Ethereum.

The first ever Ethereum-issued ICO, DigixDAO (DGD) has so far had a stellar 2018, even amidst all the price bloodbath faced in the crypto arena following a sharp fall of Bitcoin’s price form an all-time high of $20,000 to lows of $6,000 in early this February. DGD has produced greater returns every single day of 2018 than Bitcoin has. Digix Global, DGD parent company, aims at decentralizing the current gold market by creating a transferrable, tradable and stable coin on the Ethereum smart contracts. The company’s website states that for each of these DGD tokens, a total of 2,000,000 DGD, a gram of London Bullion Market Association (LBMA) gold bullion will be physically stored in a vault in Singapore. 
“The card can then be minted, which is the production of a new DGX token, or redeemed for the physical gold bar. The gold bar can then be collected at their offices or mailed to you through a trusted mailing service.” 
Digix has so far managed to compete favorably against its stable currency rival, Tether (USDT) which currently ranks 17th according to DigixDao (DGD) came into the market a year later and currently ranks 34th with its market cap hitting a high of $ 819,154, 000 in February when the crypto market was still struggling from a plunge. Non-blockchain digital gold storage players such as GoldMoney, Canadian based will soon feel the impact of blockchain’s presence in their line of business. The company had revenue of $ 524 million in 2017 and a significantly lower market cap than that of DigixDao of $ 254 million. - Cryptoglobalist
A viable gold backed cryptocurrency on the Blockchain has the potential to not only compete directly with the world's sovereign gold markets, but also provide an easy avenue for anyone to invest in both gold and cryptocurrencies. 

Gold to silver ratio reaches multi-year high as price relation now over 80 to 1

This week each year is often one of the most difficult for gold and silver as the world's largest physical market is closed during the Chinese New Year holiday.  And subsequently this drop in buying volume aids the bullion cartels in their ongoing quest to keep prices at their current levels, or even to push them lower.

For the most part after a strong decline in the gold price following a boost to the dollar on Monday and Tuesday, the price of gold over the rest of the week held steady in a range of between $1325 and $1335.

Yet while the price of gold remained somewhat steady in its current range, silver was not so lucky.  And even though it was pushed lower by only .25, this was enough to drive the Gold to Silver ratio well over 80:1, and at its highest level in several years.

Silver remains one of the most undervalued assets in the markets, and its upside is extraordinary given that supply issues are leading many producers to seek the miners directly in their demand of metals.

As investors in the U.S. and Europe continue to live by a philosophy of momentum trading, the real profits are always found in assets that reside under the radar, or are depressed in price far below their true values.  And right now there are very few value investments out there that can compete with either gold or silver.

Russia jumps to the forefront of transparency in elections as Eurasian power experimenting with putting voting on the Blockchain

While the United States and Europe promote the illusion of voting through their highly suspect Diebold machines, one nation that is often vilified by the West for 'vote rigging' is doing something about it when it comes to transparency.

Local officials announced recently that they have been experimenting with the use of the Ethereum Blockchain in the capital city of Moscow to record, count, and verify votes in a number of different referendums that could one day lead to being the sole arbiter of transparent voting for all elections.

Even as Russia stands accused of meddling in the 2016 U.S. presidential election, its national capital is taking a leadership role in making democracy more transparent. 
Using an existing program called Active Citizen, the city of Moscow has been allowing residents to cast votes for measures ranging from the name of their new metro train to the color of the seats in a new sports arena. But in an effort to soothe people's concerns over whether to trust the city in its vote counting, it's added a private version of the ethereum blockchain to that project's architecture. 
"Of course, sometimes we hear that not all the votes are trusted," said Andrey Belozerov, the strategy and innovations advisor to the city's CIO. "So, we decided to use a blockchain for the Active Citizen project, as a platform of electronic trust." 
The ethereum-based platform, which allows anyone to audit the open-source results, has been downloaded by more than 100 node operators since its December launch. 
In this way, the city hopes to gain the trust of the citizens of Moscow, but bigger than that, win the trust of state governments around the world. - Coindesk
So while the rest of the world remains focused on creating as many cryptocurrencies as possible on the Blockchain, innovation on the Distributed Ledger platform by a few countries are finding them working towards using the technology as a remedy to help eliminate corruption, and one day bring about a return to confidence in their political and financial systems.

Thursday, February 22, 2018

One sovereign government paid for propaganda to push the fear of a cryptocurrency collapse

One of the biggest tools governments have towards promoting an agenda is the use of the media to push out propaganda.  In fact the United States has perfected this activity down to a science when we saw during the 1930's and 40's the use of documentaries and public announcements to fearmonger citizens on the 'evils of marijuana'.

But of course the use of paid propaganda is not limited to just one nation or government.  And as we are seeing right now in the country of Poland, they have chosen to use Youtube as the media conduit to push an agenda on the ills of cryptocurrencies.

Poland's central bank paid a YouTube star to make a video about a cryptocurrency crash in order to warn about the dangers of investing in digital coins.  
The National Bank of Poland (NBP) told CNBC it spent 91,221.99 Polish zloty ($26,764) on Gamellon, a YouTube partner network that features a number of well-known bloggers, as well as Google and Facebook's Irish subsidiary. 
Marcin Dubiel, who has nearly 1 million subscribers to his YouTube channel, posted a video titled "Stracilem Wszystkie Pieniadze?!" which translates as "I lost all my money." It follows a character who buys a fake digital currency which crashes. - CNBC
We suspect that Poland's attempts to curb the ongoing mania that is cryptocurrencies through the use of paid propaganda will fail along the same lines that America's 'war on drugs' did in trying to stop people from using illegal narcotics.  But perhaps 20 years from now their video will make a great meme the same way Reefer Madness has for the drug culture during a time when marijuana is once again becoming a legal commodity.

Bitcoin once again falls below $10,000 after peaking just below $12,000 in most recent rally

After falling down below the $6000 handle a couple of weeks ago, Bitcoin had rallied since that time thanks in part to an undisclosed investor who piled in with $400 million worth of buys.  However over the past two days this rally appears to have stalled as overnight selling has pushed the price of Bitcoin back down below $10,000 per coin.

Bitcoin is struggling to stay above $10,000. 
The cryptocurrency fell below the psychologically key level Thursday, failing the latest attempt to recover from a sharp sell-off in the last several weeks.
Bitcoin dropped about 5 percent to a low of $9,878.72, its lowest level in a week, according to CoinDesk's bitcoin price index, which tracks prices from four major cryptocurrency exchanges. 
This is the second straight day of declines and the first time bitcoin has dropped below $10,000 since last Friday. - CNBC
Even at $10,000 per coin, the cryptocurrency remains down 50% from its all-time high achieved back on Dec. 17.

One of the trends we are looking at is how the Bitcoin price will react to the CME's February Bitcoin futures contract which is set to expire on Friday the 24th.  Because it was the implementation of this contract back in December that helped precipitate the hard correction for the cryptocurrency, which has yet to recover fully within 40% of its all-time high.

Maduro feels his Petro cryptocurrency scheme so good, why not create another! Only this one will gold backed rather than oil

Venezuelan President Nicholas Maduro was elated when initial sales of his country's Petro cryptocurrency netted three quarters of a billion in sales on Tuesday.  And to celebrate this 'success', the Socialist dictator wants to double down by creating a second national crypto that will be backed by gold rather than oil.

Venezuela's oil-backed "petro" cryptocurrency raised $735 million in the first day of its pre-sale Tuesday, President Nicolas Maduro has claimed. 
The Venezuelan president said on Twitter that the petro token raised more than 4.777 billion Chinese yuan, or $735 million, and that the state-backed virtual currency "reaffirms our economic sovereignty." - CNBC
Leading into this week's cryptocurrency sale of an oil backed token, the Maduro government was becoming hard pressed financially due to the fact that very few foreigners were willing to lend the nation money following years of business nationalization, asset confiscation, and defaults on their debts.  And even with stellar sales of the Petro, it is unlikely that this 'virtual currency' will stave off the ongoing hyperinflation that has completely ravaged the nation as well as the people.

Unfortunately for Maduro, $750 million is little more than a drop in the bucket, and is perhaps just a single month's buffer to be able to pay a military which is the only thing keeping him in power.  Thus it appears that he must squeeze his cryptocurrency schemes as much as he can while the iron is hot, and this has led on Feb. 22 to his announcement of a second crypto ICO that will be backed by gold reserves instead of oil.
"I don’t want to get ahead of things, but we have prepared a surprise, a gold-backed ‘petro,’ which will have the same parameters as the oil-backed ‘petro.’ This topic will be raised next week," he said. 
On Tuesday, Venezuela launched the presale of cryptocurrency tokens supported each by a barrel of Venezuelan oil. Maduro has estimated early gains at $735 million.
The cash-strapped nation has been struggling with political and economic fallout of a global slump in oil prices and US sanctions after Washington blocked its investors from buying Venezuelan debt. 
In December, Maduro announced the idea to create a cryptocurrency, backed by the country's oil reserves to “to advance the country’s monetary sovereignty." The country has allocated five billion barrels of oil for the cryptocurrency, with reported plans to to set the initial price at $60 per one unit of the currency. – Sputnik News
In the end Maduro's cryptocurrency schemes will likely only provide him a few months breathing room of hard currency infusions.  And with millions of people in Venezuela already starving, and hundreds of thousands trying desperately to flee across the borders into other countries, the Venezuelan President could soon find himself ruling over an empty land, and a socialist 'utopia' with very few people in it.

Wednesday, February 21, 2018

Even Ethereum co-founder says that HODL is not the way to invest or trade in cryptocurrencies

The volatility of cryptocurrencies like Bitcoin, Litecoin, etc... make it difficult to trade or invest based on 'old school' analysis like fundamentals and technicals.  And yet despite many of them moving both up and down by 75% in price over a single month's time, there are alot of 'gurus' of cryptocurrencies who advocate the ideal of Hold On For Dear Life (HODL) trading.

However there is one individual who is a major player in the crypto sphere who is dead set against the HODL mentality, and as a co-founder of the Ethereum cryptocurrency, his opinion carries a great deal of weight in the industry.

Looking for good financial advice? Vitalik Buterin, co-founder of the digital currency Ethereum, jumped on Twitter to offer just that, but it’s probably not the advice you’d expect. He believes traditional assets are still best for those who want to generate lucrative interest from long-term investments. Cryptocurrencies on the whole are still in the infancy stage, and don’t generate interest.   
“Cryptocurrencies are still a new and hyper-volatile asset class and could drop to near-zero at any time,” he states. “Don’t put in more money than you can afford to lose. If you’re trying to figure out where to store your life savings, traditional assets are still your safest bet.”  
The problem with cryptocurrency is that its value is volatile. For instance, on November 19, 2017, one Ether coin valued at $355 in real-world cash. By January 13, 2018, the value skyrocketed to $1,139 and then plunged to $591 per coin by February 5, 2018. Investing in cryptocurrency is obviously risky business.  
Investing in this emerging technology does sound promising, but as Buterin points out, now may not be the time for those looking to build a large investment value over time. Cryptocurrencies appear to be a high-risk investment that require constant monitoring to determine the ideal time to purchase and/or sell digital coins. – Digital Trends

Perfect storm brewing for gold as production continues to fall at a time when investors will soon be looking for safe havens

Last month we published an article surmising that the gold industry may have crossed the Rubicon when it comes to mining output.  And now just one month later, expectations for gold production appears to be getting even worse which is setting up a perfect storm for gold prices since investors may soon be dumping financial assets for reliable safe havens.

The gold market is setting up for a perfect storm as the top mining producers’ supply is forecasted to decline right when demand is likely to surge.  The surge in gold demand will occur as the broader stock markets roll over and begin their inevitable massive correction.  Due to the tremendous amount of leverage in the system, the coming market correction will be quite violent at times.  If investors believe the correction is over, and high times are here again, then they haven’t learned anything about the cyclical nature of markets. – SRS Rocco
And this additional analysis comes from Rick Mills.
I’m sometimes reluctant to talk about gold as a commodity, since so much of the gold market is driven by investment, but there are some interesting things happening that makes this a very good time to consider an investment in gold or gold stocks. 
Simply put, the world is running out of gold, especially the stuff that’s high grade and easy to find, and this makes me bullish on the precious metal – irrespective of all the familiar demand factors like safe haven, inflation hedge and store of value.
South African gold production has plummeted below 250 tonnes compared to 1,000 tonnes in the 1970s, and in China, the only country to increase production in recent years, it fell in 2017 by 9%
This has many industry observers talking about “peak gold”. A Thomson Reuters report said 2016 was the first year since 2008 that gold mine output actually fell – by 22 tonnes or 3%. World Gold Council chair Randall Oliphant agreed that the world may already have produced the most gold in a year that it ever will. He predicted gold prices to move as high as $1,400 an ounce in 2018. “Production is likely to plateau at best, before slowly declining as demand rises…” Bloomberg quoted him saying in September. 
As for new gold mines, the bear market of 2012 to 2016 meant most large gold companies slashed exploration budgets and small explorers had an extremely tough time raising cash. – Silver Doctors
“This is a perfect storm that will cause much higher gold prices for investors who are wise enough to see it.” - Steve St. Angelo

Next catalyst for higher gold prices could actually come from Japan rather than from China or India

As China celebrates the Lunar New Year and the transition to the Year of the Dog this week, it is another Asian economy that may actually supersede the Chinese here in 2018 when it comes to gold and gold buying.

Japan is experiencing two events over the next two years that are historically celebrated with the population buying gold.  The first is the coronation of a new Emperor, and the second is the planned Olympics that are going to be held in Tokyo in 2020.

The Year of the Dog is shaping up to be another good one for investors in gold, who may enjoy price rises of 10 per cent to 15 per cent as Japan buys up the precious metal to commemorate its new emperor and the 2020 Tokyo Olympic Game. 
Gold has already risen 10 per cent in the lunar year just ended, and as well as Japanese demand, a weak US dollar, a shift from shaky stock markets and political tensions in Europe over Brexit will keep the outlook for the commodity promising this year, analysts said. 
“According to Japanese tradition, the Japanese government will issue gold coins to celebrate the new emperor ascending the throne in 2019,” said Jasper Lo Cho-yan, a senior vice-president at iBest, part of Haitong International Securities. 
“Japan will also issue gold coins to celebrate the 2020 Olympic Games in Tokyo, and the market expects the Japanese government to start purchasing physical gold in the second half of this year to meet this demand. This will boost the gold price,” he said. – South China Morning Post
Bottom of Form

Tuesday, February 20, 2018

Cryptocurrencies have a new evangelist in Steven Seagal

With the rise of cryptocurrencies there has been no shortage of celebrities who have not only signed on to promote one currency or another, but in some cases create them under their own banner.  But on Feb. 13 one famous actor has signed on to be a evangelist or Ambassador for a cryptocurrency platform as in his eyes it fits well into his beliefs of Zen Buddhism.

Steven Seagal has become the official ambassador for Bitcoiin2Gen, a new cryptocurrency launching its Initial Coin Offering. 
Hollywood actor Steven Seagal has become a believer of Bitcoiin2Gen, the Hollywood action star will be representing the leading cryptocurrency organization, Bitcoiin2Gen, as brand ambassador. 
Steven Seagal is an American actor, producer, screenwriter, director, martial artist, and musician who holds American, Russian, and Serbian citizenship. 
As a Buddhist, Zen teacher, and healer, Steven lives by the principles that the development of the physical self is essential to protect the spiritual man. He believes that what he does in his life is about leading people into contemplation to wake them up and enlighten them in some manner. These are precisely the objectives of the Bitcoiin2Gen to empower the community by providing a decentralized P2P payment system with its own wallet, mining ecosystem and robust blockchain platform without the need of any third party. – Bitcoiin2gen

Hong Kong gold exchange to aid Yuan internationalization by creating gold trade corridor along Silk Road

Hong Kong has long been the conduit to the outside world for China, and this will become especially relevant in their Silk Road project.  And as a compliment to China's planned internationalization of its currency, the Hong Kong gold exchange is looking to expand all along the Belt and Road corridor to provide products and services under the RMB banner.

The Chinese Gold & Silver Exchange Society (CGSE), Hong Kong’s gold exchange, is in talks with Singapore, Myanmar and Dubai to establish a gold commodity corridor to promote yuan-denominated products under China’s Belt and Road Initiative, according to its president Haywood Cheung Tak-hay. 
The gold commodity corridor could be formed by establishing an integrated infrastructure network by using Hong Kong as a base, and connect the proposed bonded warehouse in Qianhai with commercial users and precious metals traders in countries along the Belt and Road, Cheung said on Tuesday at an event to mark the exchange’s first day of trading in the Year of the Dog. 
“The successful linkages of such a gold corridor could probably boost demand from users and investors for kilobar gold,” Cheung said. “This may also increase the turnover of yuan-denominated products by two or three times.” – South China Morning Post

The land of chocolate and banking giving an open arms welcome to cryptocurrencies

On Feb. 18, the Swiss Financial Market Supervisory Authority (FINMA) announced they are planning to encourage crypto and other digital currencies inside their borders, while also providing guidance on ICO issuance.

Wanting to ensure criminal activities such as money laundering are limited through the use of cryptocurrencies, FINMA is in the process of establishing basic guidelines for the establishment of Initial Coin Offerings (ICO's), while at the same time allowing the already burgeoning crypto market to flourish.

Graphic courtesy of Coin Telegraph
While financial regulators across the world are cracking down on bitcoin, Swiss Financial Market Supervisory Authority (FINMA) has decided to encourage digital currencies by issuing guidelines on initial coin offerings (ICOs). 
According to the regulator, Switzerland has recently seen a sharp growth in the number of upcoming ICOs planned to be launched in the country, as well as numerous enquiries about cryptocurrency regulation. In an attempt to encourage the ICO market and blockchain technology, FINMA has clarified how standards around anti-money laundering and securities regulations could be applied to virtual currencies. 
“The application of blockchain technology has innovative potential within and far beyond the financial markets. However, blockchain-based projects conducted analogously to regulated activities cannot simply circumvent the tried and tested regulatory framework,” FINMA chief executive Mark Branson said. 
“Our balanced approach to handling ICO projects and enquiries allows legitimate innovators to navigate the regulatory landscape and so launch their projects in a way consistent with our laws protecting investors and the integrity of the financial system,” the CEO highlighted. – Russia Today
The cryptocurrency market is already 1400 strong, and well on its way to a market cap of over $1 trillion.  And the makeup of cryptocurrencies range from speculative investable securities, mediums of exchanges in commerce, resource backed ones with gold, oil, and diamonds, and hundreds of others tied to specific industries.

GoldX receives Sharia compliance and will begin issuing gold backed cryptocurrencies to the Asian Islamic world

Last year saw the acceptance and introduction of Sharia compliant gold backed cryptocurrencies in and from the Middle East, and now on Feb. 20 we have the first ones provided this approval in Islamic Asia.

GoldX is a gold backed cryptocurrency created by the company HelloGold, and was just given approval by the Sharia Financial council to be able to sell its tokens to Islamic savers and investors in the regions of Malaysia and Thailand, with many more locations expected to become open in the future.

The Malaysia-based cryptocurrency called GOLDX has now received certification from Amanie Advisors, a local Islamic finance consultancy. 
GOLDX, unlike other cryptocurrencies involves issuance of a token which is backed by physical gold.This means the issuance process and audited assets can provide clients with transparency, certainty and immediacy of transactions, which are all important principles in Islamic financial contracts
Islamic finance consultancy firms such as the Amanie Advisors permit the new technology to become “halal” and that allows it to extend its influence to Islamic finance markets across the Middle East and Asia. 
According to the company HelloGold, the next step is to extend its gold platform to Thailand. 
Recently the company also launched a mobile app which is based on blockchain technology. – Sputnik News
The list of gold backed cryptocurrencies has risen to around 31 as of Feb. 20, with two primary ones now being accepted as 'Halal' in the Islamic financial world. 

Monday, February 19, 2018

Here we go again. Elites decry for higher taxes on themselves without voluntarily donating their money to the IRS coffers

We are going to let you in on a little secret... there is nothing stopping you, I, or anyone from making a charitable gift to the U.S. government to help pay down the budget deficit in any amount you see fit.  So when Bill Gates came out recently and whined to pundits at CNN that the government should be making him and other wealthy Americans pay more in taxes, immediately one should look beyond this rhetoric to what they are truly trying to say.

One of the world's richest men, Bill Gates, says he should pay more in taxes and urged the US authorities to require other billionaires to contribute “significantly higher” amounts. 
“I need to pay higher taxes. I've paid more taxes – over $10 billion – than anyone else, but the government should require the people in my position to pay significantly higher taxes,” Microsoft founder said in an interview with CNN. – Russia Today
Ironic wouldn't you say, coming from a billionaire who put most of his money into a non-profit charity so he could still spend it as he saw fit, but without having to pay anymore taxes than he has to under the myriad of legal loopholes.

The Daily Economist update for Feb. 19 2018 - U.S. Finance and Economics Report

Sunday, February 18, 2018

Sell your alcohol stocks? Millennials staying at home to smoke pot versus going out and drinking having major effects on alcohol sales

The marijuana legalization movement is no longer residing on the fringes of society as the advent of its legalization in places like California and Washington D.C. has brought the commodity fully into the mainstream of society.

Yet perhaps what was not anticipated in all of this was how quickly its adoption would bring about economic changes onto the financial landscape, and in this we mean even above that of providing a new revenue stream for government coffers.

As more and more states begin to legalize pot, there are two significant trends taking shape.  The first is the fact that sales of alcohol in states which have legalized pot in either medicinal or recreational form are in severe decline, with an estimated $2 billion so far being transferred over to the pot industry.

joint study by researchers at two U.S. universities and one in South America claims a reduction in the U.S.’s overall alcohol consumption appears directly related to the rise of medical marijuana laws recently enacted in a number of states. Presented by Michele Baggio, University of Connecticut, Storrs; Alberto Chong, Georgia State University, Atlanta and Universidad del Pacifico, Lima; and Sungoh Kwon, University of Connecticut, Storrs, the working paper may add to what many believe will prove definitive regarding the relationship between wine and marijuana consumption. 
Using the 90-chain data, the study compared alcohol sales of states that do not have medical marijuana laws and states with medical marijuana laws (before and after the laws were implemented). The researchers also included demographics (age, race) as well as economics (income) for the study because those areas make a measurable impact on alcohol consumption. 
Over the ten years studied, counties located in medical marijuana states showed almost a 15 percent reduction in monthly alcohol sales. - Forbes
The second growing trend however is one that will most likely carry the biggest impact for the beer and alcohol industry as the now largest demographic in the United States, that of the Millennials, are en masse ditching booze for pot.  And even more, millennials are also ditching the bar scene to instead stay at home to smoke weed while watching Netflix.

This new report reveals that the growing use of cannabis in California will have a significant impact on the alcohol industry. “We found that for millennials, the choice between the two main recreational substances, alcohol and tobacco, has always been an easy one. Growing up with anti-tobacco messaging, the smoking rate for 18–29 year olds in the U.S. has dropped by 22% over the past decade, leaving alcohol as the substance of choice,” said OutCo CEO, Lincoln Fish. “But we are already seeing a decrease in alcohol sales, which means that cannabis is poised to be the new recreational substance of choice for many millennials and beyond.” 
• Beer was the most popular substitution, with 34% of millennials saying they will opt for cannabis over beer. 
• 18% of millennials will substitute cannabis for wine. 
• 14% of the millennial population will substitute cannabis for spirits. - Outco
Businesses, along with much of Wall Street, are both working hard to accommodate the millennial generation, and at the foundations of this demographic is the need for quality over quantity, and experiences over material goods.  And with this in mind their trend of transferring alcohol consumption for that of marijuana is one that could potentially change the future for both industries, and remain a trend for decades to come.