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Ethereum restaking: Blockchain innovation or dangerous house of cards?

“Restaking” involves reusing staked Ether to earn fees and rewards. The restaked tokens can then help secure and validate other protocols. But many…



“Restaking” involves reusing staked Ether to earn fees and rewards. The restaked tokens can then help secure and validate other protocols. But many fear restaking could disrupt Ethereum’s chain itself.

Ethereum restaking proposed by middleware protocol EigenLayer is a controversial innovation over the past year that has some of the brightest minds worried about the potential ramifications.

Restaking involves reusing staked or locked-up Ether tokens to earn fees and rewards. The restaked tokens can then help secure and validate other protocols. 

Proponents believe restaking can squeeze additional security and rewards from already staked ETH and grow the crypto ecosystem in a healthier way based on Ethereums existing trust mechanisms. Restaking could serve as a security primitive for exporting Ethereums trust generated by its validators to other projects.

Yet Ethereum co-founder Vitalik Buterin and a number of key devs worry that restaking is a house of cards that will inevitably tumble. Some of those Ethereum devs have even proposed a fork to head off restaking platform EigenLayer. 

Why the projects founders promote trust as a service from Ethereum without the Ethereum founder and others willingness to participate is still to play out. Will the whole concept result in an Ethereum fork to protect the network from catastrophic failure? 

Staking and restaking

Staking is a crypto-native concept. On Ethereum, it means putting up a security bond in ETH so that the validator (validators of new transactions who maintain the security of the blockchain) will behave honestly in verifying transactions rather than lose their staked tokens. Stakers are then paid rewards for locking up this ETH. 

In essence, stakers lock up their tokens to commit to producing Ethereum blocks  an on-chain way of supporting development, regardless of fluctuations in highly volatile token prices. 

So what is restaking?

In short, restaking works in that already staked Ethereum tokens can be rehypothecated (when a lender re-uses collateral posted from one loan to take out a new loan) to secure a wider variety of applications and accrue additional rewards.

But restakers also get penalized or slashed for non-performance of their staking tasks. (More on that below).

So restaking is a crypto primitive for generating economic security from Ethereums nine years of concerted developer activity and project track record. 

Its an extension protocol to extend what Ethereum can do, scaling out Ethereum stakers beyond Ethereum to other bridges and oracles that need to be secured, EigenLayer founder Sreeram Kannan tells Magazine.

He says EigenLayer is commoditizing ETH staking to make it more general purpose, as, in crypto parlance, staking is the root of trust. 

Kannan is an academic on leave from the University of Washington, and EigenLayer began as academic research into exported trust as a consensus protocol. Basically, he sought to piggyback the trust generated by Ethereum to other ecosystems. 

Kannan essentially seeks to export the trust generated by Ethereum for other projects across the ecosystem and other chains. In crypto, mechanisms for trust mean that investors need skin in the game. The pseudonymous world needs carrots and sticks whereby validators are distributed. He calls it permissionless innovation. 

The best each chain has to offer

The big idea for EigenLayer is to bridge blockchains and create super applications, taking the best each chain has to offer. Kannan says every ecosystem is better in some dimension, but not all dimensions, and EigenLayer enhancing decentralized tech stacks will actually benefit the industry. 

Kannan said that what can be built with EigenLayer fits roughly into two categories.

Firstly, EigenLayer allows for the construction of bridges from chain to chain, say Ethereum to Avalanche. EigenLayer acts as a marketplace for decentralized trust, connecting stakers seeking yields, projects built on EigenLayer offering risk-reward structures for yields, and operators acting as bridges between stakers and projects.

Secondly, a set of smart contracts on Ethereums chain lets ETH stakers opt to run other software. EigenLayer could, for example, improve Ethereum transaction finality speeds. ETH stakers can now take the layer-1 blockchain Fantom chain (for better transaction finality times) and fork it on EigenLayer, thereby running a layer as a super fast finalization layer with an EigenLayer trust layer.

But its all still theoretical.  

The idea of restaking makes sense theoretically, helping projects build off Ethereums security layer but the problems worry many. 

In theory, its like the NATO security alliance; each country is still a sovereign country, but their mutual defense pact is secured by the sum of their military power, Sunny Aggarwal, co-founder of Osmosis Labs and creator of a similar restaking system Mesh, on Cosmos chain told Magazine. 

In practice, EigenLayer provides two ways to restake: whitelisted liquid staking derivatives can be restaked with EigenLayer or an EigenPod (a smart contract can be created to run a validator while restaking). But most restakers wont run their own validator, so new networks can build projects without their own communities of validators. 

EigenLayer isnt live yet, and its impact is still highly speculative, according to Anthony 0xSassal Sassano, a full-time Ethereuem educator, founder of YouTube channel The Daily Gwei and an early investor in EigenLayer.

To date, theres only a smart contract for staked ETH to bootstrap the EigenLayer network, and perhaps given EigenLayers hype, people are depositing their ETH into that network, expecting to farm an unconfirmed airdrop of native EigenLayer tokens. 

A force for good or evil?

To be successful, new consensus protocols need a balanced alignment of incentives. Trust is like a scale weighing competing interests. And trying to export Ethereum security layers to different blockchain ecosystems worries some. Many are still trying to understand if its a force for good or evil or both.

There are two camps: those excited by broadening the use case of ETH staking, and then there are those that worry about potential attack vectors on Ethereum and potential negative consequences for Ethereum if something goes wrong with EigenLayer. My view is in the middle; I understand the concerns and the excitement. Sassano says.

Inherently, all of this is complex; it depends which rabbit hole you want to go down. The simple answer is that Ethereum, as a network, currently has over 25 million ETH at stake thats tens of billions of dollars. So restaking is asking, what if we could harness that economic security for other purposes than just securing the Ethereum chain?

Sassano continues: Thats exactly what EigenLayer is trying to do, to generalize the security that Ethereum has with its stakers and expand that to other things like an oracle network or a data availability network. Its inherently more technical and complex than that, but thats the gist of it. 

There are two types of danger that restaking could pose: first for restakers and then for Ethereum itself. 

Restaking creates too much leverage

Restaking is controversial as it is akin to leveraged investing through borrowing. Some argue that the danger here is that the hunger for real yields or actual revenue that emerged in crypto in 2022 leads to unsavory developments, like restaking. 

Jae Sik Choi, portfolio manager at Greythorn Asset Management, told Magazine that securing networks through restaking could work, but restaking is akin to leverage:

Just like how Terras over-leveraged safe collateralization of Luna was, there would always be a risk of participants over-leveraging into this new concept, and such a risk wont be quantifiable until we see more data sets throughout the emergence of this new restaking narrative.

Dan Bar, chief investment officer at Bitfwd Capital a boutique crypto assets hedge fund agreed that restaking amounts to leverage, telling Magazine: While moderate schemes of restaking could be beneficial for capital efficiency purposes, any crypto assets manager and finance professional worth their salt knows too well how easily and quickly leverage can turn into a slew of synthetic toxic financial instruments that bring disasters into even the most healthy of ecosystems.

And maybe thats the first major problem. Investors will only see restaking as quick, easily leveraged financial products. EigenLayer building an open-source, decentralized network security may fail to convince doubters.

Risks to Ethereum itself

One fear is that slashing on EigenLayer will affect Ethereum itself.

Ethereums proof-of-stake trust system keeps everyone in check with slashing conditions essentially non-performance penalties. Programmable slashing means restakers have additional computational responsibilities and face consequences for non-execution.

Ethereum co-founder Vitalik Buterin fears an overload of the chains consensus, basically, computational overloads, if the blockchains computational power is suddenly redirected elsewhere. 

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Kannan admits that Vitaliks concerns are valid. We dont want to shard Ethereums trust layer, and we dont want contagion of nefarious actors leveraging Ethereums trust system.

Sassano also notes that the functionality of Ethereum proof-of-stake was designed to make sure that there wont be a sudden influx or outflux of validators, which would affect the core properties of Ethereums consensus mechanism. 

The issue is that EigenLayer will decide where to take ETH from, but they cant slash a validator on Ethereum.

In Ethereum, theres also a queue for validators to enter or exit each day. So lets say, in an extreme example, 30% of all staked ETH begins staking with EigenLayer and say that all 30% gets slashed by EigenLayer. While it depends on what the slashing condition was, lets say all this ETH was lost because they tried to do something really bad. Even if all 30% had to be exited, theres a limit on how much can exit per day. It would take literally years to exit 30% of ETH stake. So I understand peoples concerns, but at the same time, other things built on top cannot dictate what happens on Ethereum.

So, restakers should have to play by Ethereums rules. 

Yet Sassanos biggest concern is around the calculus of ETH staking, which may one day become a question of whether stakers get more from staking on EigenLayer than Ethereum itself. This could erode the Ethereum staking model in time.

He is confident, though, that Ethereums tech offsets those systemic risks: Its not a critical risk to Ethereum if you are slashed on EigenLayer. You are not slashed on Ethereum. EigenLayer cannot cause you to be slashed on Ethereum because Ethereum has its own slashing conditions built into the protocol. And EigenLayer has its own separate slashing conditions built into its protocol as well.

Anything built on top of Ethereum introduces additional complexity and risk. Juan David Mendieta Villegas, co-founder and chairman at crypto market maker Keyrock, tells Magazine:

EigenLayer is an interesting development but creates additional attack vectors without providing explicit benefits to the Ethereum ecosystem itself. If we take a step back, its important to note that ETH staking has introduced a base benchmark yield for the industry, and that is a good development. You can almost think of it as a risk-free rate. Any additional layers, such as liquid staking derivatives and re-staking mechanisms, of course, can carry more concerns such as concentration risk, security and smart contract.

But Villegas wishes EigenLayer well. Overall, were advocates of the innovations that are happening around staking and want to see multiple protocols win as this will assist in the decentralization and democratization of the network.

In other words, he wishes for competitors to EigenLayer to create similar products. 

Restaking could make or break new projects

Cosmos Aggarwal believes restaking will only benefit those blockchains with existing network effects for those with existing economic alliances or overlapping communities.

He also sees restaking protocols akin to a venture capital arm for layer 1s that might discourage solo stakers and further centralize networks. 

In the end, competing layer-1 blockchains probably wont engage in restaking across chains. For that reason, he feels that EigenLayers design could be improved. 

While EigenLayer is designed as a security system importing trust from Ethereum, builders will create their own tokens and revenue models. This has pluses and minuses. 

In some cases, dodgy new tokens may benefit from Ethereums trust layer. Choi thinks this trust layer benefit could potentially be moot due to the tokenomics that these alt layer 1s would want to try and attain (i.e., the use of their own token their own agendas) could be problematic and so any supposed trust exported from Ethereum is lost anyway.

On the other hand, experimental, well-meaning projects may now have a chance at success thanks to EigenLayer. Thats why Choi thinks the ultimate potential benefit EigenLayer is proposing is that other blockchains that do not want to spin up their own validator and staker sets have a chance at scaling to success. 

Aggarwal also notes that with appropriate checks, restaking should be set within parameters to control risk. Restaking primitives need cleverly programmed governance, such as discounted voting power to restaked tokens on another chain. For example, one restaker cant have more than 20% of the vote for another chain.  

So, is restaking a good thing for Ethereum?

The purists would say Ethereum should only be securing the Ethereum Beacon Chain and nothing else. [They] shouldnt be exporting Ethereum security to anything else. But I dont think that is necessarily a bad thing to get node operators to do other work, says Sassano. 

If it can happen on the Ethereum network, it will happen. If the network cant resist it and Ethreuems chain becomes insecure because of it, and there are adverse effects because of it, then Ethereum as a protocol was not designed correctly and needs to be improved.  

Well find out soon enough.

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Bitcoin on Wheels: The Story of Bitcoinetas

Meet the Bitcoinetas, a fleet of transformative vehicles on a mission to spread the bitcoin message everywhere they go. From Argentina to South Africa,…



You may have seen that picture of Michael Saylor in a bitcoin-branded van, with a cheerful guy right next to the car door. This one:

Ariel Aguilar and La Bitcoineta European Edition at BTC Prague.

That car is the Bitcoineta European Edition, and the cheerful guy is Ariel Aguilar. Ariel is part of the European Bitcoineta team, and has previously driven another similar car in Argentina. In fact, there are currently five cars around the world that carry the name Bitcoineta (in some cases preceded with the Spanish definite article “La”).

Argentina: the original La Bitcoineta

The story of Bitcoinetas begins with the birth of 'La Bitcoineta' in Argentina, back in 2017. Inspired by the vibrancy of the South American Bitcoin community, the original Bitcoineta was conceived after an annual Latin American Conference (Labitconf), where the visionaries behind it recognized a unique opportunity to promote Bitcoin education in remote areas. Armed with a bright orange Bitcoin-themed exterior and a mission to bridge the gap in financial literacy, La Bitcoineta embarked on a journey to bring awareness of Bitcoin's potential benefits to villages and towns that often remained untouched by mainstream financial education initiatives. Operated by a team of dedicated volunteers, it was more than just a car; it was a symbol of hope and empowerment for those living on the fringes of financial inclusion.

The concept drawing for La Bitcoineta from December 2017.

Ariel was part of that initial Argentinian Bitcoineta team, and spent weeks on the road when the car became a reality. The original dream to bring bitcoin education even to remote areas within Argentina and other South American countries came true, and the La Bitcoineta team took part in dozens of local bitcoin meetups in the subsequent years.

The original La Bitcoineta from Argentina.

One major hiccup came in late 2018, when the car was crashed into while parked in Puerto Madryn. The car was pretty much destroyed, but since the team was possessed by a honey badger spirit, nothing could stop them from keeping true to their mission. It is a testament to the determination and resilience of the Argentinian team that the car was quickly restored and returned on its orange-pilling quest soon after.

Argentinian Bitcoineta after a major accident (no-one got hurt); the car was restored shortly after.

Over the more than 5 years that the Argentinian Bitcoineta has been running, it has traveled more than 80,000 kilometers - and as we’ll see further, it inspired multiple similar initiatives around the world.

Follow La Bitcoineta’s journey:



El Salvador: Bitcoin Beach

In early 2021, the president of El Salvador passed the Bitcoin Law, making bitcoin legal tender in the country. The Labitconf team decided to celebrate this major step forward in bitcoin adoption by hosting the annual conference in San Salvador, the capital city of El Salvador. And correspondingly, the Argentinian Bitcoineta team made plans for a bold 7000-kilometer road trip to visit the Bitcoin country with the iconic Bitcoin car.

However, it proved to be impossible to cross so many borders separating Argentina and Salvador, since many governments were still imposing travel restrictions due to a Covid pandemic. So two weeks before the November event, the Labitconf team decided to fund a second Bitcoineta directly in El Salvador, as part of the Bitcoin Beach circular economy. Thus the second Bitcoineta was born.

Salvadoran’s Bitcoineta operates in the El Zonte region, where the Bitcoin Beach circular economy is located.

The eye-catching Volkswagen minibus has been donated to the Bitcoin Beach team, which uses the car for the needs of its circular economy based in El Zonte.

Follow Bitcoin Beach:


South Africa: Bitcoin Ekasi

Late 2021 saw one other major development in terms of grassroots bitcoin adoption. On the other side of the planet, in South Africa, Hermann Vivier initiated the Bitcoin Ekasi project. “Ekasi” is a colloquial term for a township, and a township in the South African context is an underdeveloped urban area with a predominantly black population, a remnant of the segregationist apartheid regime. Bitcoin Ekasi emerged as an attempt to introduce bitcoin into the economy of the JCC Camp township located in Mossel Bay, and has gained a lot of success on that front.

Bitcoin Ekasi was in large part inspired by the success of the Bitcoin Beach circular economy back in El Salvador, and the respect was mutual. The Bitcoin Beach team thus decided to pass on the favor they received from the Argentinian Bitcoineta team, and provided funds to Bitcoin Ekasi for them to build a Bitcoineta of their own.

Bitcoin Ekasi’s Bitcoineta as seen at the Adopting Bitcoin Cape Town conference.
Bitcoin Ekasi’s Bitcoineta as seen at the Adopting Bitcoin Cape Town conference. Hermann Vivier is seen in the background.
South African Bitcoineta serves the needs of Bitcoin Ekasi, a local bitcoin circular economy in the JCC Camp township.

Bitcoin Ekasi emerged as a sister organization of Surfer Kids, a non-profit organization with a mission to empower marginalized youths through surfing. The Ekasi Bitcoineta thus partially serves as a means to get the kids to visit various surfer competitions in South Africa. A major highlight in this regard was when the kids got to meet Jordy Smith, one of the most successful South African surfers worldwide.

Coincidentally, South African surfers present an intriguing demographic for understanding Bitcoin due to their unique circumstances and needs. To make it as a professional surfer, the athletes need to attend competitions abroad; but since South Africa has tight currency controls in place, it is often a headache to send money abroad for travel and competition expenses. The borderless nature of Bitcoin offers a solution to these constraints, providing surfers with an alternative means of moving funds across borders without any obstacles.

Photo taken at the South African Junior Surfing Championships 2023. Back row, left to right:

Mbasa, Chuma, Jordy Smith, Sandiso. Front, left to right: Owethu, Sibulele.

To find out more about Bitcoineta South Africa and the non-profit endeavors it serves, watch Lekker Feeling, a documentary by Aubrey Strobel:

Follow Bitcoin Ekasi:



Europe: Bitcoineta Europa

The European Bitcoineta started its journey in early 2023, with Ariel Aguilar being one of the main catalysts behind the idea. Unlike its predecessors in El Salvador and South Africa, the European Bitcoineta was not funded by a previous team but instead secured support from individual donors, reflecting a grassroots approach to spreading financial literacy.

European Bitcoineta sports a hard-to-overlook bitcoin logo along with the message “Bitcoin is Work. Bitcoin is Time. Bitcoin is Hope.”

The European Bitcoineta is a Mercedes box van adorned with a prominent Bitcoin logo and inspiring messages, and serves as a mobile hub for education and discussion at numerous European Bitcoin conferences and local meetups. Inside its spacious interior, both notable bitcoiners and bitcoin plebs share their insights on the walls, fostering a sense of camaraderie and collaboration.

Inside the European Bitcoineta, one can find the wall of fame, where visitors can read messages from prominent bitcoiners such as Michael Saylor, Uncle Rockstar, Javier Bastardo, Hodlonaut, and many others.
On the “pleb wall”, any bitcoiner can share their message (as long as space permits).

Follow Bitcoineta Europa’s journey:



Ghana: Bitcoineta West Africa


Introduced in December 2023 at the Africa Bitcoin Conference in Ghana, the fifth Bitcoineta was donated to the Ghanaian Bitcoin Cowries educational initiative as part of the Trezor Academy program.

Bitcoineta West Africa was launched in December 2023 at the Africa Bitcoin Conference. Among its elements, it bears the motto of the Trezor Academy initiative: Bitcoin. Education. Freedom.

Bitcoineta West Africa was funded by the proceeds from the bitcoin-only limited edition Trezor device, which was sold out within one day of its launch at the Bitcoin Amsterdam conference.

With plans for an extensive tour spanning Ghana, Togo, Benin, Nigeria, and potentially other countries within the ECOWAS political and economic union, Bitcoineta West Africa embodies the spirit of collaboration and solidarity in driving Bitcoin adoption and financial inclusion throughout the Global South.

Bitcoineta West Africa surrounded by a group of enthusiastic bitcoiners at the Black Star Square, Accra, Ghana.

Follow Bitcoineta West Africa’s journey:



All the Bitcoineta cars around the world share one overarching mission: to empower their local communities through bitcoin education, and thus improve the lives of common people that might have a strong need for bitcoin without being currently aware of such need. As they continue to traverse borders and break down barriers, Bitcoinetas serve as a reminder of the power of grassroots initiatives and the importance of financial education in shaping a more inclusive future. The tradition of Bitcoinetas will continue to flourish, and in the years to come we will hopefully encounter a brazenly decorated bitcoin car everywhere we go.

If the inspiring stories of Bitcoinetas have ignited a passion within you to make a difference in your community, we encourage you to take action! Reach out to one of the existing Bitcoineta teams for guidance, support, and inspiration on how to start your own initiative. Whether you're interested in spreading Bitcoin education, promoting financial literacy, or fostering empowerment in underserved areas, the Bitcoineta community is here to help you every step of the way. Together, we will orange pill the world!

This is a guest post by Josef Tetek. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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Digital Currency And Gold As Speculative Warnings

Over the last few years, digital currencies and gold have become decent barometers of speculative investor appetite. Such isn’t surprising given the evolution…



Over the last few years, digital currencies and gold have become decent barometers of speculative investor appetite. Such isn’t surprising given the evolution of the market into a “casino” following the pandemic, where retail traders have increased their speculative appetites.

“Such is unsurprising, given that retail investors often fall victim to the psychological behavior of the “fear of missing out.” The chart below shows the “dumb money index” versus the S&P 500. Once again, retail investors are very long equities relative to the institutional players ascribed to being the “smart money.””

“The difference between “smart” and “dumb money” investors shows that, more often than not, the “dumb money” invests near market tops and sells near market bottoms.”

Net Smart Dumb Money vs Market

That enthusiasm has increased sharply since last November as stocks surged in hopes that the Federal Reserve would cut interest rates. As noted by Sentiment Trader:

“Over the past 18 weeks, the straight-up rally has moved us to an interesting juncture in the Sentiment Cycle. For the past few weeks, the S&P 500 has demonstrated a high positive correlation to the ‘Enthusiasm’ part of the cycle and a highly negative correlation to the ‘Panic’ phase.”

Investor Enthusiasm

That frenzy to chase the markets, driven by the psychological bias of the “fear of missing out,” has permeated the entirety of the market. As noted in This Is Nuts:”

“Since then, the entire market has surged higher following last week’s earnings report from Nvidia (NVDA). The reason I say “this is nuts” is the assumption that all companies were going to grow earnings and revenue at Nvidia’s rate. There is little doubt about Nvidia’s earnings and revenue growth rates. However, to maintain that growth pace indefinitely, particularly at 32x price-to-sales, means others like AMD and Intel must lose market share.”

Nvidia Price To Sales

Of course, it is not just a speculative frenzy in the markets for stocks, specifically anything related to “artificial intelligence,” but that exuberance has spilled over into gold and cryptocurrencies.

Birds Of A Feather

There are a couple of ways to measure exuberance in the assets. While sentiment measures examine the broad market, technical indicators can reflect exuberance on individual asset levels. However, before we get to our charts, we need a brief explanation of statistics, specifically, standard deviation.

As I discussed in “Revisiting Bob Farrell’s 10 Investing Rules”:

“Like a rubber band that has been stretched too far – it must be relaxed in order to be stretched again. This is exactly the same for stock prices that are anchored to their moving averages. Trends that get overextended in one direction, or another, always return to their long-term average. Even during a strong uptrend or strong downtrend, prices often move back (revert) to a long-term moving average.”

The idea of “stretching the rubber band” can be measured in several ways, but I will limit our discussion this week to Standard Deviation and measuring deviation with “Bollinger Bands.”

“Standard Deviation” is defined as:

“A measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of the variance.”

In plain English, this means that the further away from the average that an event occurs, the more unlikely it becomes. As shown below, out of 1000 occurrences, only three will fall outside the area of 3 standard deviations. 95.4% of the time, events will occur within two standard deviations.

Standard Deviation Chart

A second measure of “exuberance” is “relative strength.”

“In technical analysis, the relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can read from 0 to 100.

Traditional interpretation and usage of the RSI are that values of 70 or above indicate that a security is becoming overbought or overvalued and may be primed for a trend reversal or corrective pullback in price. An RSI reading of 30 or below indicates an oversold or undervalued condition.” – Investopedia

With those two measures, let’s look at Nvidia (NVDA), the poster child of speculative momentum trading in the markets. Nvidia trades more than 3 standard deviations above its moving average, and its RSI is 81. The last time this occurred was in July of 2023 when Nvidia consolidated and corrected prices through November.

NVDA chart vs Bollinger Bands

Interestingly, gold also trades well into 3 standard deviation territory with an RSI reading of 75. Given that gold is supposed to be a “safe haven” or “risk off” asset, it is instead getting swept up in the current market exuberance.

Gold vs Bollinger Bands

The same is seen with digital currencies. Given the recent approval of spot, Bitcoin exchange-traded funds (ETFs), the panic bid to buy Bitcoin has pushed the price well into 3 standard deviation territory with an RSI of 73.

Bitcoin vs Bollinger Bands

In other words, the stock market frenzy to “buy anything that is going up” has spread from just a handful of stocks related to artificial intelligence to gold and digital currencies.

It’s All Relative

We can see the correlation between stock market exuberance and gold and digital currency, which has risen since 2015 but accelerated following the post-pandemic, stimulus-fueled market frenzy. Since the market, gold and cryptocurrencies, or Bitcoin for our purposes, have disparate prices, we have rebased the performance to 100 in 2015.

Gold was supposed to be an inflation hedge. Yet, in 2022, gold prices fell as the market declined and inflation surged to 9%. However, as inflation has fallen and the stock market surged, so has gold. Notably, since 2015, gold and the market have moved in a more correlated pattern, which has reduced the hedging effect of gold in portfolios. In other words, during the subsequent market decline, gold will likely track stocks lower, failing to provide its “wealth preservation” status for investors.

SP500 vs Gold

The same goes for cryptocurrencies. Bitcoin is substantially more volatile than gold and tends to ebb and flow with the overall market. As sentiment surges in the S&P 500, Bitcoin and other cryptocurrencies follow suit as speculative appetites increase. Unfortunately, for individuals once again piling into Bitcoin to chase rising prices, if, or when, the market corrects, the decline in cryptocurrencies will likely substantially outpace the decline in market-based equities. This is particularly the case as Wall Street can now short the spot-Bitcoin ETFs, creating additional selling pressure on Bitcoin.

SP500 vs Bitcoin

Just for added measure, here is Bitcoin versus gold.

Gold vs Bitcoin

Not A Recommendation

There are many narratives surrounding the markets, digital currency, and gold. However, in today’s market, more than in previous years, all assets are getting swept up into the investor-feeding frenzy.

Sure, this time could be different. I am only making an observation and not an investment recommendation.

However, from a portfolio management perspective, it will likely pay to remain attentive to the correlated risk between asset classes. If some event causes a reversal in bullish exuberance, cash and bonds may be the only place to hide.

The post Digital Currency And Gold As Speculative Warnings appeared first on RIA.

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Aging at AACR Annual Meeting 2024

BUFFALO, NY- March 11, 2024 – Impact Journals publishes scholarly journals in the biomedical sciences with a focus on all areas of cancer and aging…



BUFFALO, NY- March 11, 2024 – Impact Journals publishes scholarly journals in the biomedical sciences with a focus on all areas of cancer and aging research. Aging is one of the most prominent journals published by Impact Journals

Credit: Impact Journals

BUFFALO, NY- March 11, 2024 – Impact Journals publishes scholarly journals in the biomedical sciences with a focus on all areas of cancer and aging research. Aging is one of the most prominent journals published by Impact Journals

Impact Journals will be participating as an exhibitor at the American Association for Cancer Research (AACR) Annual Meeting 2024 from April 5-10 at the San Diego Convention Center in San Diego, California. This year, the AACR meeting theme is “Inspiring Science • Fueling Progress • Revolutionizing Care.”

Visit booth #4159 at the AACR Annual Meeting 2024 to connect with members of the Aging team.

About Aging-US:

Aging publishes research papers in all fields of aging research including but not limited, aging from yeast to mammals, cellular senescence, age-related diseases such as cancer and Alzheimer’s diseases and their prevention and treatment, anti-aging strategies and drug development and especially the role of signal transduction pathways such as mTOR in aging and potential approaches to modulate these signaling pathways to extend lifespan. The journal aims to promote treatment of age-related diseases by slowing down aging, validation of anti-aging drugs by treating age-related diseases, prevention of cancer by inhibiting aging. Cancer and COVID-19 are age-related diseases.

Aging is indexed and archived by PubMed/Medline (abbreviated as “Aging (Albany NY)”), PubMed CentralWeb of Science: Science Citation Index Expanded (abbreviated as “Aging‐US” and listed in the Cell Biology and Geriatrics & Gerontology categories), Scopus (abbreviated as “Aging” and listed in the Cell Biology and Aging categories), Biological Abstracts, BIOSIS Previews, EMBASE, META (Chan Zuckerberg Initiative) (2018-2022), and Dimensions (Digital Science).

Please visit our website at​​ and connect with us:

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