Thursday, November 6, 2014

Ruble Collapse Could Fuel Next Bitcoin Run

Ruble Collapse Could Fuel Next Bitcoin Run

10 hours ago
The Central Bank of Russia has gone to a de facto free float, as Ruble weakness overwhelmed its ability to effectively intervene. Now there are reports that Russia may ban the circulation of US dollars (story here). 
USD v Russian Ruble
image
If this story is true, then wealthy Russians will need a way to convert Ruble holdings into US dollars.  One of the easiest and least transparent channels would be to buy bitcoin and then convert those holdings into other fiat currencies.
It appears this is already happening, as the Ruble price of bitcoin has been outpacing the gain in the US Dollar price of bitcoin.
Bitcoin Priced in USD and Ruble (log scale)
image
Recall that the enormous run in bitcoin during 2013 ($200-$1100) was partially fueled by wealthy Chinese using bitcoin as a channel to withdraw capital from China. Also recall that the price crash in bitcoin was a result of the Chinese government cracking down on this practice.
In the coming weeks and months I will be watching for the Ruble price of bitcoin to far outpace the US Dollar price. Additionally, if bitcoin is being used as a capital flight channel it would not surprise me to see restrictions placed on bitcoin trading in Russia - luckily for us speculators that is probably far into the future…and at much higher prices.
 
3 notes  
 
 View Comments (2)

Recommended for You

  • Despite losses, GMO label backers aren't quitting

    PORTLAND, Ore. (AP) — In the end, not even Oregon's backyard chicken owners and vegan foodies had enough money and clout to persuade voters to pass a ballot measure that would have required labeling of genetically modified foods.
    Associated Press

  • Lululemon: I've Got Some Good News and Some Bad News

    It's that time of the day folks, when we play good news, bad news with Lululemon Athletica (LULU). Now, for those of you who haven't been following along, shares of Lululemon have dropped 30% so far this year, as the company has continued to wrestle with problems of its own making--the transparent…
    Barrons.com
    LULU $42.78 3.61%

  • Boeing Plans New Single-Aisle Jet For 2030

    Boeing (BA) reportedly intends to debut a new single-aisle jetliner, but don't book your flight just yet. The aerospace giant plans to deliver the plane by 2030 to compete with Chinese planemaker Comac, ...
    Investor's Business Daily

  • Confident U.S. Shale Producers Think They Can Outlast OPEC Moves

    Saudi Arabia's rivals in the shale fields from North Dakota to Texas aren't flinching as the Persian Gulf kingdom wages a price war to reclaim market share and chill competition. The U.S. companies believe ...
    Bloomberg

  • Japan restaurant ordered to pay $500,000 damages after suicide

    A Japanese court has ordered a restaurant chain and two personnel to pay more than half a million dollars damages to the family of a man who killed himself after being forced to work nearly 200 hours overtime a month. Tokyo District Court said the president of Tokyo-based Sun Challenge, a steak…
    AFP

  • Costco Said to Weigh Dropping AmEx as U.S. Card Partner

    Costco Wholesale Corp. (COST) , the retailer that replaced American Express Co. (AXP) as its credit-card issuer in Canada, is considering a similar move with its larger U.S. Costco is seeking bids for both an issuer and a payments network for its U.S. New York-based AmEx could be among firms…
    Bloomberg
    COST $137.09 0.43%
  • Play

    Russian ruble hits all-time low as support reduced

    MOSCOW (AP) — Russia's ruble hit an all-time low on Wednesday after the country's central bank said it would dial back its support for the struggling currency in international markets.
    Associated Press
  • Play

    Cramer clears up oil confusion

    Discussing global oil production, CNBC's Jim Cramer says you're not going to see oil rise until the Saudi's make a deal with Venezuela.
    CNBC Videos

  • NYC Trump Co-Op Dwellers Face Million-Dollar Bills

    Manhattan’s surging land costs are leaving the shareholders of an East Side luxury co-operative with a tough choice: pay a hefty price to buy the land under the building, or face increasing bills to keep renting it. The ground beneath Trump Plaza , at 167 E. 61st St., is up for sale as land prices…
    Bloomberg
  • Play

    3 Ways to Calculate Your Retirement Number

    This question is being asked by millions of retirement savers. Here are three methods for calculating your retirement number, along with some helpful tools for each method. Charles Farrell, author of "Your Money Ratios: 8 Simple Tools for Financial Security at Every Stage of Life", recommends…
    U.S.News & World Report LP

  • Toyota Motors Ahead of the Field

    Toyota Motor Corp president Akio Toyoda satisfies his need for speed by jumping behind the wheel of a high powered car in the 24 hour Nürburgring endurance race, a grueling course known for its sharp changes in elevation. The benefits to Toyota Motor Corp (ticker:ticker::7203.JP)/(TM) from the…
    Barrons.com
    TM $119.83 -1.27%

  • Don’t Catch a Falling Knife! ABN Sees Gold at $800 Next Year

    The selloff in gold is set to deepen as the dollar will probably extend gains, according to ABN Amro NV, which forecast that the precious metal may end this year at $1,100 an ounce and finish 2015 at $800. ...
    Bloomberg

  • Millennials: Stop Taking Financial Advice From Mom and Dad

    Where college-age millennials once leaned on parents for everything from spending cash to laundry help, they've graduated to a new facet of dependence that's just coming out in the wash: financial advice.
    U.S.News & World Report LP
    SPHIX $9.27 0.00%

  • Target Is Closing Another 11 Stores

    On Tuesday, Target announced it will be closing 11 U.S. stores, making a total of 19 closures in less than 12 months.
    Money
    TGT $61.89 1.26%
  • Play

    Cash Is King: Gold and Silver Prices Collapse

    Nov. 6 (Bloomberg) -- Gold held near a four-year low as investors extended sales from the largest bullion-backed exchange-traded product. Bloomberg's David Ingles reports on "On The Move Asia." (Source: Bloomberg)
    Bloomberg

  • Microsoft gives away Office apps for iPhone, iPad

    SAN FRANCISCO (AP) — Microsoft is offering free upgraded versions of its Office software for iPhones and iPads, as the software giant further embraces the so-called "freemium" strategy favored by many newer companies seeking success online.
    Associated Press
    MSFT $48.70 1.76%

  • Herbalife's Stock Back to Pre-Ackman Levels

    Following the drama around Herbalife Ltd.and its stock price has been a dizzying ride for nearly two years.
    The Wall Street Journal
    HLF $39.99 0.53%
  • Play

    The Weird & True Story of America's Most Popular Social Security Number

    A woman's Social Security number was misused by more than 40,000 people after her employer used it to sell wallets.
    Credit.com

  • U.S. jobless claims, wages data point to tightening market

    By Lucia Mutikani WASHINGTON (Reuters) - The number of Americans filing new claims for unemployment benefits fell more than expected last week and compensation accelerated in the third quarter, in the latest signs of tightening labor market conditions. Thursday's upbeat data underscored the…
    Reuters
Posted by at

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Subscribe to: Post Comments (Atom)