Where are bond yields going with debt on the rise?  Click here for our latest report.

The Surge
Bitcoin prices have skyrocketed this year as crypto-currency has been a direct beneficiary of Chinese capital outflows.

Having analyzed the flow data, it is fairly obvious to us that the heaviest volume is coming from China. Remember, that as of 2013,  Chinese regulators have designated Bitcoin as a commodity and not currency, which makes it more difficult for the foreign exchange regulators.

As the Chinese fear continued domestic currency weakness, they have loaded up on alternatives such as Bitcoin.

The correlation is staggering. Bitcoin seems to be the valve in which the Chinese are expressing their domestic currency concerns. As we see above, weakness in the Yuan has a very high correlation to rising Bitcoin prices.

Leaving Gold Behind

After many years of underperformance, Bitcoin is chasing gold in the world of alternative currencies.

The Bitcoin – Blockchain Connection

In 2017, Blockchain technology is poised to bring efficiencies to several applications from medical records to smart contracts. One application in particular that has been generating a lot of discussion is blockchain’s potential to bypass the current system of processors and intermediaries deliver real-time payments. This development could solve low-income consumer problems such as overdraft fees.

Under the current system, the Federal Reserve processes debit card transactions once at the end of each day, checks can take 2-5 days to clear, and credit card fees are taken from merchants and divided among banks, issuers, processors, and consumers. Initiatives such as the Fed’s Faster Payments Task Force aim to allow real time payments in a fast and secure manner that eliminates the need for many of the middlemen in the current system.

Click here for our latest report on Blockchain