Crypto Guides, Knowledge & Insights

‘Ether Should Outperform Bitcoin Over the Long Run,’ Says JPMorgan

Ether (ETH) has ascended to the apex of cryptocurrency in the last couple of weeks, taking the top spot from bitcoin (BTC).　　As of this writing, ether has grown 40.23% so far since April 1 to a new all-time high of $2,700. In the same period, bitcoin has experienced a drop off of 7.39% from $58,772 on April 1 to $54,428, this morning.　　Difference between ether and bitcoin　　JPMorgan points out the difference between ether and bitcoin as it pertains to this study. Bitcoin is much more a commodity than a currency at this juncture, competing with gold as a store of value. On the flipside, ethereum is “the backbone of the cryptocurrency economy and serves as an exchange medium.” JPMorgan commented:　　“To the extent owning a share of this [ethers] potential activity is more valuable, the theory goes, ether should outperform bitcoin over the long run.”　　They go on to say, “As a consequence, a higher proportion of ether tokens behave as if highly liquid than bitcoin, 11% versus 4% by some estimates over the past month.” In a market with significantly higher spot turnover, it is plausible that the underlying base of long exposure is less reliant on leverage in the form of

2021-04-29Deep Dive

Why VISA Thinks Bitcoin Has Potential In Cross-Border Transactions

Payments giant Visa has been expanding its involvement with Bitcoin and cryptocurrencies. Per their Q2, 2021, Earnings Call, the company has a long roadmap and many plans to integrate these assets into its payment network.　　Al Kelly, Chairman, and CEO at Visa talked about the “opportunities” the company is and would like to explore with BTC and digital assets. Kelly said he views this cryptocurrency as a “digital gold” due to the fact that people “hold” on to it.　　In the crypto industry, Visa will focus on 5 areas. The first is to allow consumers to purchase Bitcoin and other cryptocurrencies. The executive said Visa is working with exchange platforms and wallets to enable this feature. Kelly added:　　I would say that this is a space that we are leaning into in a very, very big way and I think are extremely well-positioned.　　Later, the payments giant is working on allowing customers to use a crypto cash-outs service. Thus, Visas network can convert funds in BTC or other cryptocurrencies into fiat. The converted funds will be available to make purchases at the 70 million Visa merchants. Kelly believes this will give “immediate utility to the digital currency”. He added:　　We‘ve got over 35 digital-currency platforms

2021-04-29Deep Dive

‘Bitcoin is not a hedge against anything,’ concludes ‘Black Swan’ author Nassim Taleb

Bitcoin (BTC) is not “a hedge against anything,” concluded “Black Swan” author and risk analyst Nassim Nicholas Taleb after inviting his 727,000 Twitter followers to debate on whether there is any correlation between BTC and inflation.　　“CONCLUSION: not a single reasonable argument that #BTC is a hedge against inflation, or, as a matter of fact, a hedge ag. Anything,” Taleb tweeted yesterday, adding that “I hate the Fed, THEREFORE Bitcoin” is the “most common fallacy.”　　As CryptoSlate reported, Taleb recently criticized Bitcoin in an interview with CNBC, arguing that “theres absolutely no reason it should be linked to anything economic” and that BTC “has characteristics of an open Ponzi scheme.”　　“[Bitcoin] has characteristics of an open Ponzi, everybody knows it‘s a Ponzi,” Taleb said. “Basically, there’s no connection between inflation and Bitcoin. None. I mean, you can have hyperinflation and Bitcoin going to zero. Theres no link between them.”　　Public opinion　　To further drive this point home, Taleb later appealed to his Twitter followers, asking them to explain how Bitcoin can be a hedge against inflation.　　“I am still trying to get an answer on how #BTC can be a hedge against inflation since it went up 1000% over a period when inflation was 1-3%？ Also,

2021-04-29Deep Dive

3 Reasons Facebook Should Buy and Hold Bitcoin

Yesterday, one of the top subjects of conversation on Bitcoin Twitter was initiated when investor Alistair Milne claimed there is a rumor that Facebook will announce they hold bitcoin (BTC) on their books on Wednesday. There is a long history of false rumors and reports when it comes to huge announcements that could affect the bitcoin price, which may be why the cryptoasset didnt move much after Milne shared the rumor on social media.　　While there isnt much point to speculating about whether the rumor is true or not, there is certainly value in pointing out the various reasons as to why it would make sense for Facebook to make this move.　　Specifically, there are three key reasons Facebook should be considering an allocation to bitcoin: it may help them with their reputation issues around user data and privacy, integrating bitcoin into Facebook makes more sense than their Diem project, and theyre bound to earn a return by purchasing bitcoin and then giving the asset their own stamp of approval by publicly disclosing the purchase.　　1. Facebook has a reputation issue　　According to Statista, Facebook is the most widely-used social media application in the world, but there is a certain segment of the population

2021-04-29Deep Dive

South Koreans File Online Petitions Seeking to Remove a Chief Regulator After Harsh Crypto Comments

As the South Korean government keeps strengthening the harsh rhetoric against cryptocurrencies, citizens have become increasingly angry due to the recent words from regulatory authorities. Over the weekend, petitions started to appear on the web, seeking the removal of the head of the countrys Financial Services Commission (FSC).　　Over 141,000 Signatures Collected in One Petition　　The presidential website is now being filed with thousands of petitions from furious people aged 20-39, seeking that Eun Sun-soo, the FSCs chief, resign. The drop that broke the glass were the statements from Eun over the weekend, who stated that crypto has no “intrinsic” value whatsoever.　　But that‘s not something new within the South Korean government’s bodies nor banking institutions. In fact, that‘s the same rhetoric replicated by Seoul’s government and the Bank of Korea regarding cryptos.　　However, Eun has been quite active in his warnings on the new regulations that came into force.　　If domestic crypto exchanges didnt comply by September with the new set of rules enacted by the authorities, they should close, and he even warned that most of the exchanges are at risk of facing such closures.　　As of press time, one of the most popular petitions filed on the government‘s website has 141,659 signatures asking

2021-04-28Deep Dive

JPMorgan and DBS to launch blockchain cross-border payment platform

Major American investment bank JPMorgan is working with Singapores largest bank, DBS, and state investment firm Temasek to launch a new blockchain company focused on global payments and interbank transactions.　　Dubbed Partior, the new firm will use blockchain technology and digitize commercial bank money to reduce the existing friction in cross-border payments, trade transactions and foreign exchange settlements.　　Such functionality would enable instant settlement of payments for various types of transactions, helping banks overcome global payment-related challenges in the current financial system, JPMorgan said in a Wednesday announcement.　　The new platform builds on JPMorgan and Temasek‘s past work as part of Project Ubin, a blockchain-based multi-currency payment initiative initiated by the Monetary Authority of Singapore in 2017. Partior’s platform will launch with a focus on facilitating flows mainly between Singapore-based banks in both the United States dollar and the Singapore dollar, aiming to extend service offerings to other markets in various currencies.　　The platform aims to complement ongoing central bank digital currency projects and use cases, the announcement notes. MAS chief fintech officer Sopnendu Mohanty said that Partior provides a foundational global infrastructure for transacting with digital currencies. “The launch of Partior is a global watershed moment for digital currencies, marking a move from

2021-04-28Deep Dive

Altseason: Bitcoin Dominance Drops To Lowest Level In Years

It happens every cycle. During a bull run, Bitcoin reaches some kind of temporal stability and traders get bored. And if a sharp drop in prices mixes with that, traders run out of the building through the window. It‘s human nature. It’s Altseason. The grass is always greener on the other side.　　And by “greener” we mean, there seems to be a lot more money in the Altcoins. And that can only mean one thing: it‘s Altcoin season. As Arcane Research’s chart shows, Bitcoin‘s percentage of the total market capitalization of cryptocurrencies is at 51.8%. That’s the lowest level in two years.　　Percentage of total Market Capitalization | Source: Arcane Research　　In April, the middle-sized cryptocurrencies by market capitalization took the biggest portion of the cake. Every altcoin outperformed Bitcoin, even the large-sized ones, who also took a beating. And if the indicators are pointing in the right direction, the season is just starting.　　This time is different: Altcoins are performing tremendously　　What a difference seven months make. The previous time an Altseason seemed to appear on the horizon, Bitcoinist told you:　　Sentiment surrounding altcoins has been poor for years, so no money has been coming in. But DeFi, Bitcoin breaking $10,000, and other perfect storm

2021-04-28Deep Dive

Crypto Investors Sacrificing Personal Relationships To Remain In The Game

For some people, digital currencies are an alternative asset that they were either introduced to by a family member or close friend. For others, supporting and investing in the asset comes with a big price to pay. A survey recently poked into the lives of many, who had lost personal relationships, courtesy of their personal convictions and involvement with digital currencies like Bitcoin.　　Much like the conflicts that could sprout in relationships where there are religious differences, a good 60% of cryptocurrency investors have revealed that their personal relationships have suffered due to their financial investment with the asset. A recent survey carried out by the survey platform found that in relationships where one person was investing in Cryptocurrencies, while the other stuck to fiat, financial disagreements were likely to sprout.　　A senior market analyst Jeffrey Halley gave a realistic analogy, saying “The stress on relationships could come from a number of fronts. One person in a relationship investing in cryptos when their partner is a vehement non-believer would create natural stresses — especially when cryptos have such large intraday swings in value and thus, the value of the portfolio.”　　The volatile state of Bitcoin‘s price even adds more salt to injury, as

2021-04-28Deep Dive

“World’s Biggest Blockchain Deployment”: Ethiopian Government To Use Cardano’s Technology To Revamp

Cardano developer IOHK has announced a strategic partnership with the Ethiopian government to use Cardano-based technology to revolutionize the nations education system.　　Cardanos Identity System To Be Rolled Out To 5 Million Ethiopian Students　　Based on the Atala PRISM framework, the identity solution will be deployed throughout Ethiopia in what will be the “worlds biggest blockchain deployment”. In particular, it will be used to create forgery-resistant records of academic performance across 3,500 schools and verify the grades of more than five million local students. The system will also create records of 750,000 teachers, allowing monitoring and lesson planning.　　This means that the Cardano-based identity system will make it easier to authenticate university applications and check the validity of the students‘ grades without depending on third-party agencies. Increasing transparency in the schools’ grading system may create more employment opportunities for rural Ethiopians and increase social advancement.　　IOHK added in the announcement:　　“This partnership is at the heart of Ethiopias Digital Transformation Strategy. IOHK has long recognized how developing world countries could uniquely benefit from blockchain, and this deployment is key in our vision for Africa.”　　IOHKs Grand Vision For Africa　　IOHK touts Cardano‘s Atala PRISM as a game-changer for the world’s second-most populous continent, Africa. Besides education, IOHK

2021-04-28Deep Dive

Goldman Sachs Showcases Crypto Stocks for Wary Investors

So far in 2021, stocks that are related to the cryptocurrency industry have experienced a huge boost as the prices of digital currencies soar. Goldman Sachs has compiled a list of these stocks for interested investors.　　Goldman Sachs has released a study headed up by analyst Ben Snider on stocks connected to crypto and blockchain. Specifically, stocks that could see a sharp spike if bitcoin prices take off again.　　Goldman Sachs studies stocks tied to crypto　　As the prices of cryptocurrencies across the board continue to rise, many companies have risen along with it. In some cases, these companies, viewed as proxies for the asset class, have jumped even more than the cryptocurrencies themselves. The recent Bitcoin rally for example saw a few related stocks propelled to returns up to four times greater than the broader market.　　Snider and strategist David Kostin wrote in a note that:　　“On average, these stocks have dramatically outperformed the S&P 500 during the last several months alongside the surge in the price of Bitcoin. An equal-weighted portfolio of the stocks has demonstrated roughly 60% correlations with Bitcoin and the Bloomberg Galaxy Crypto Index during the last several months, compared with 20% correlations for the S&P 500.”　　The reason behind this

2021-04-28Deep Dive

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