Bitcoin can reach $400K in 2021 as ‘risk-off reserve asset’ — Bloomberg

Bitcoin (BTC) still gets criticized for being too volatile, but one Bloomberg analyst believes that it conversely is becoming a “risk-off” choice for investors.

In a tweet on March 25, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said that this year marked a watershed moment for the largest cryptocurrency.

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$400,000 BTC would “rhyme” with history

McGlone uploaded a chart of the BTC/USD average price and the Bitcoin Liquid Index, a price ticker specially created for institutional use.

“Well on its way to becoming a global digital reserve asset, a maturation leap in 2021 may be transitioning Bitcoin toward a risk-off asset, in our view,” he wrote.

A potential price peak this year, with previous behavior as context, could be as much as $400,000 per coin, the chart shows. This dwarfs other estimates, such as that of stock-to-flow, which calls for an average of $288,000 between now and 2024.

BTC/USD price indices chart. Source: Mike McGlone/ Twitter/ Bloomberg Intelligence

While McGlone did not provide exact details of the factors behind Bloomberg’s view, the idea of Bitcoin reducing, rather than increasing portfolio risk is the talking point of the year among corporates. New reports of treasury allocations to BTC appear frequently, with appetite unfazed by price action.

“My mission right now is to fix the balance sheets of the world,” Michael Saylor, CEO of MicroStrategy, one of the largest Bitcoin treasury investors, said in an interview with TIME this week.

Saylor kickstarted a trend among public companies last summer, which has seen over $52 billion converted to BTC on a cost basis, now worth over $73 billion, according to monitoring resource Bitcoin Treasuries.

What risk?

Ahead of Morgan Stanley becoming the first major bank to open up access to Bitcoin funds for high net worth investors next week, however, naysayers continue to peddle familiar arguments against exposure.

“Morgan Stanley limiting crypto access to 2.5% of high net worth individual accounts, that have over $2 million in assets and have been active for over six months, shows that the bank realizes Bitcoin is very risky and wants to limit legal liability from investors who lose money,” gold bug Peter Schiff recently claimed.

Meanwhile, Fed Chair Jerome Powell likened Bitcoin to a “substitute” for gold, to Schiff’s displeasure, but added that it did not pose a risk to the dollar or to financial stability.

As Cointelegraph reported, average returns for BTC/USD have topped 200% every year since the cryptocurrency’s inception.

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Elon Musk Shows Support For DeFi Amid Ongoing Industry Criticism ⋆ ZyCrypto

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If there’s one thing Elon Musk is consistently doing, it’s expressing his views on anything from rockets, spacecraft, art, and cryptocurrencies. When it comes to the latter, Musk seems to have a lot to say, casually and mordantly.

This was the case with Musk and the Twitter-DeFi community, whom he may have just stood up for when he decided to speak up about DeFi amid several berating takes flying around. It happens that the Billionaire may have come across some of these tweets, (not impossible, as Musk seems to spend a decent amount of his time on Twitter) which may have caused him to say “Don’t defy DeFi” in one of his most recent tweets, perhaps in response to the critics.

Quickly, Cryptocurrency personalities flooded his post, asking him a series of questions concerning DeFi. Although he is yet to respond to any of these comments, the questions are very valid regardless. Founder of the Tron network, Justin Sun asked the Billionaire if he could include DeFi tokens to its electric vehicle platform.

“Can you have Defi on Tesla? For example, you can drive and earn TESLA tokens. The more you drive the more you earn!” He asked. Even though the comment may have been lost between thousands, the idea seems like a creative way to diversify both networks. Getting Tesla tokens for driving could make users of the vehicles more excited about the rewards they could simply get from driving, making it yet another interesting way to integrate DeFi into another real-world platform.

Justin has closely been keeping up with Musk, as he continues to create more publicity for the Tron (TRX) token and the Tron network, part of which is dedicated to advancing DeFi. After Musk made the big reveal on Wednesday, Sun was amongst one of the cryptocurrency personalities who revealed he was going to be buying a Tesla with Bitcoin.

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Meanwhile, Musk has continued to stay vocal on his Crypto-related views. But they have continued to receive their fair share of criticism. The Billionaire who became the world’s richest man this year lost the position to Jeff Bezos in a week and reclaimed it once again. Musk could continue to get richer, thanks in part, to Bitcoin.

Musk’s Tesla gains from Bitcoin will certainly add to his personal wealth, and the result of accepting Bitcoin payments could bring about a net worth that continues to increase significantly.

But critics have already begun calling the Billionaire out on being greedy, and Musk seems to have a fitting response for them, at least for now.

“I am accumulating resources to help make life multi-planetary & extend the light of consciousness to the stars.” He explained.


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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.


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Bridgewater’s Chief Says Bitcoin Ban is Likely

Hedge fund manager Ray Dalio recently made a case that the US government could ban Bitcoin in the country if deemed necessary

A Bitcoin ban in the US is not a far-fetched notion in the opinion of billionaire Ray Dalio. The hedge fund manager is convinced there is a good probability that the US outlaws Bitcoin. Dalio, who is the chief executive of Bridgewater Associates, the biggest investment hedge fund in the US, shared his thoughts on the future of the flagship crypto while speaking in an episode of Influencers with Andy Serwer.

He referenced the Gold Reserve Act of 1934 when the US government, at the time, banned private possession of Gold in an attempt to secure its monetary system. The Act, as he explained, was implemented to prevent Gold from competing with fiat money as a wealth standard.

Dalio likened the case to the probable outlawing of Bitcoin (which has flourished even as the dollar and other traditional assets struggle) if need be. The billionaire investor explained that central banks love controlling the supply and demand waves in their country in a monopolistic fashion. He added that these banks might feel threatened by other forms of money like digital assets as they tend to create a demand and supply they can’t control.

“Every country treasures its monopoly on controlling the supply and demand,” he said. “They don’t want other monies to be operating or competing because things can get out of control. So I think that it would be very likely that you will have it under a certain set of circumstances outlawed the way Gold was outlawed.”

The Bridgewater Associates chief drew attention to India’s current situation where the government is weighing up the option to ban cryptocurrencies, including Bitcoin. It has barely been three weeks since India’s Finance Minister made remarks on the country’s stance on crypto, asserting that there was only a window to experiment with crypto assets.

Dalio argued that a government ban would mean a slump in demand. The hedge fund manager remained sceptical that privacy of the crypto asset could be guaranteed while conceding that he was not savvy of bitcoin and its underlying technology.

“Now, can they do it? Yeah. Now we get into the particulars. My understanding from people who are sort of in government surveillance is yes, they can understand they can track it. They can know who’s dealing with it. I don’t know, like, I’m not an expert on that. But, you know, there’s a whole way, is it private wallets? Is it not private wallets?”

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Serena Williams also invests in Lolli: the Bitcoin Back startup

A $5 million round has just been collected by Lolli, the American Bitcoin Back startup, and among the participants was the “Queen” of tennis, Serena Williams

According to Lolli, the leading bitcoin rewards company that gives users free bitcoin when they shop at top retailers (bitcoin back), the funds raised will be used to finance the development of the mobile app and its expansion.

Participating in the fundraising are a group of investors including Serena Williams with Serena Ventures, Casey Neistat, Phil Defranco, Cody Ko, Noel Miller, Ian Borthwick, and Gabriel Leydon.

Not only that, Williams’ husband Alexis Ohanian with his venture capital fund and Night Media, the management company representing YouTuber MrBeast, also participated in the pre-Series A round. 

On that note, here is how the Queen of Tennis, Serena Williams, described her participation:

“I’m excited to announce my investment in Lolli, a company on a mission to make bitcoin more accessible. Earning and owning bitcoin is a step towards financial inclusivity for all people”.

Alex Adelman, CEO and co-founder of Lolli, also gave his statement:

“We’re thrilled to be working with Seven Seven Six, Serena Ventures, and a fantastic team of investors in creating the easiest way for people to earn bitcoin when they shop. This is an exciting time and opportunity to accelerate adoption and increase accessibility to bitcoin”.

Lolli’s mission: mass adoption of bitcoin

According to an interview with Coindesk, Adelman said Lolli’s primary mission from the outset has been the mass adoption of bitcoin

“We started out with the idea of educating people about bitcoin. So we just attached it to something that everybody does: shop. People think about investing when they think about bitcoin, but there’s probably less than 1% of the world that would consider themselves investors. Everybody would consider themselves a shopper”.

Currently, the company offers an average of 7% bitcoin-back rewards at retailers such as Kroger, Sephora, Microsoft, Booking.com and Ulta. Lolli users have earned more than $3 million in bitcoin rewards to date. 

The newly raised funds bring Lolli’s total funding to $10.25 million. Before now, the company had raised $5.25 million in two rounds.


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Weekly Roundup of Cryptocurrency News 26/03/21

Here’s a rundown of the significant developments and events that happened across the crypto-verse this week

The list of Bitcoin ETF applicants continues to grow

More firms submitted their Bitcoin ETF applications to the US Securities and Exchange Commission this week. Scaramucci-led SkyBridge Capital, in conjunction with First Advisors, made a joint application earlier this week to have their ETF product accepted. The filing details that the former will be ETF sub-advisor while the latter serves as the advisor of the product.

The two were joined by giant financial service corporation Fidelity Investment which announced on Wednesday that it was looking to launch its Bitcoin ETF product. Fidelity filed an application that would see the Fidelity subsidiary FD Funds Management introduce an ETF product called the Wise Origin Bitcoin Trust.

The ETF will hold Bitcoin and its share value determined using the Fidelity Bitcoin Index. The fund will technically track the price of the leading crypto from major crypto exchanges in the US. This latest bunch of Bitcoin ETF applications come barely a week after Goldman Sachs revealed it was planning to debut its Bitcoin ETF product.

Meanwhile, crypto analysts believe it won’t take long before the regulator starts approving some of the applications since the US lags behind countries like Brazil and Canada. Bitcoin ETF products outside the US have proved to be a success, and US firms are seemingly becoming impatient with the commission that has, so far, been hesitant to emulate other countries.

XRP bounces back with users pushing for the relisting of the asset

A “RelistXRP” campaign was the town’s talk on Monday after the hashtag trended on social media platforms in different regions. Calls to relist the asset were prevalent on socials in the US, Australia, and European countries like the UK. XRP has suffered immense losses since its parent company Ripple got into legal troubles with the Securities and Exchange Commission.

The crypto token is still a bone of contention as both parties struggle to reach an agreement regarding its status. However, this week, XRP received an early boost, rallying to a daily high of around $0.60 on Tuesday. It retraced back to $0.54, where it remained for the larger part of Wednesday. A sharp descent saw its price briefly drop to $0.477 and then $0.43 on Thursday. The crypto asset is currently on an uptrend, having rallied to $0.54 earlier today.

Elsewhere, Ripple executives have claimed that XRP can be tapped to act as the link between different digital currencies currently lacking interoperability. In a paper titled ‘The Future of CBDCs,’ the company explains that while digital currencies are crucial to the fiat system’s survival, they have several differences stemming from their design and differences. These differences make it hard for them to settle cross-border payments – a limitation that the introduction of XRP into the picture would overcome.

Boston Fed and MIT making huge steps in the development of CBDC

Researchers at the Massachusetts Institute of Technology and the Federal Reserve Bank of Boston have made considerable progress on digital currency. The group has worked together for almost a year and will be looking to have digital dollar prototypes launched somewhere in July.

According to the project leader, James Cunha, the launch will feature two platforms designed to handle transactions involving the digital dollar. It is unknown if the platforms will be based on blockchain. Cunha added that interested third-parties will be allowed to develop the code even further upon unveiling the prototypes.

Many banks are still opposed to the idea of a digital dollar because they stand to lose the most should it be successfully implemented. On the other end of the spectrum, payment services like Visa and MasterCard appear to have embraced digital currencies. The services have even moved to collaborate with central banks on the same.

Bitcoin surges upon news of Tesla accepting BTC payments

Bitcoin’s correction this week has deepened with the asset struggling to stay above $50,000. The leading crypto started the week fairly, notching a price figure above $58k on Monday before a tumble to $53k less than 36 hours later. Bitcoin climbed back to $54k early on Wednesday before pushing to $57k later during the day amid positive Tesla news.

The Chief Executive of the EV automaker, Elon Musk, announced through a tweet that it was now accepting Bitcoin as payment for EV purchases. Musk went on to clarify that the Bitcoin payments upon being received will not be converted. Instead, they will be retained as Bitcoin. However, this option is only available to US citizens at the moment.

The announcement was not really a surprise to many as Tesla had previously hinted it would add crypto support without mentioning a specific date. Several users noted the BTC payment option in the company’s US stores prompting the chief executive to make it official. The company also revealed it was working to make the option available to those outside the US borders.

FCA study details worrying findings of young people investing in crypto

A report conducted by the UK Financial Conduct Authority has shown young people are increasingly becoming invested in crypto. The study further revealed that while the interest was growing, most young people invest in crypto assets for the wrong reasons.

The financial watchdog concluded that the younger generation was getting involved in crypto for the thrill they derive. The young people are said only to want to experience a sense of ownership which is why they are after having stakes in companies. The FCA report additionally stated that young investors could not handle losses that are a common outcome in the turbulent crypto sector.

Another worrying revelation was that most young people perceived crypto investment as a competition that is in stark contrast to the ‘actual’ objective of securing a future. The regulatory body advised that young people understand the risks associated with high return investment products like crypto before diving into them.

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New Zealand Wealth Management Fund Invests 5% of its Assets in Bitcoin

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KiwiSaver growth fund, a retirement growth fund with investments worth $350 million has invested 5% of its total assets in Bitcoin. The chief investment officer James Grigor also promised more KiwiSaver schemes with bitcoin exposure in the upcoming 5 years. He said,

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“Our KiwiSaver is majority built up through traditional assets classes, your bonds and shares, and they will always be the asset classes that compound over time to give people the best retirement they can get.

he added,

But there’s going to be times when it’s not always going to be plain sailing. You may still have a positive view of those asset classes, but other opportunities present themselves,”

Bitcoin’s rising value along with popularity has made it the go-to choice for investors and now even large wealth fund managers. Only yesterday Coingape reported that a Singapore-based $306 billion wealth manager has been buying Bitcoin from miners since 2018. The rising interest of high-value sovereign wealth management funds most of them associated with the government is a clear sign of growing Bitcoin adoption beyond the limited crypto market.

The  Chief Investment Officer of KiwiSaver said that they see Bitcoin as a commodity with properties like gold.

“If you are happy to invest in gold, you can’t really discount bitcoin,”

However, many other rival wealth managers believe the decision would not be good for investors as they see BTC as a speculative asset and believe investing in it is more like gambling.

After Fortune 500 Companies, Wealth Fund Managers and Banking Giants Rust to BTC

The likes of MicroStrategy and Tesla were among the early fortune 500 companies to see the potential of Bitcoin in the future of finance. However, as the bull run continues defying most of the previous records more mainstream banking giants such as Morgan Stanley, BNY Mellon, and Goldman Sachs have started to gain exposure in Bitcoin.

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Now Wealth Fund Managers have also rushing to add Bitcoin to their investment schemes which is a big deal given, most of these retirement and pension funds only invest in assets with very high chances of better return.

To keep track of DeFi updates in real time, check out our DeFi news feed Here.

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