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Crypto Mania Is Coming to Banking

Crypto Mania Is Coming to Banking

Cryptocurrency and Banking

Two decades ago… an obscure act ignited one of the greatest merger waves in the history of the banking industry. On November 4, 1999, the Gramm-Leach-Bliley Act passed, repealing part of the Glass-Steagall Act. The Glass-Steagall Act of 1933 was an emergency measure to prevent bank failure during the Great Depression. It separated Main Street banking services like home loans and checking accounts… from riskier investment banking business like securities trading and services.

Upon Glass-Steagall’s repeal, banks went on a merger boom. All of a sudden, traditional banking giants could leap into the highly lucrative investment banking field. They realized if they could get scale in the traditional banking area, they’d have access to cheap capital they could put to work in the investment banking business. Big banks scooped up regional banks… Regional banks picked up community banks… And some big banks even grabbed financial firms like brokerages and insurers to add new products and services. From 2000–2002, we saw a total of 1,467 banking deals.

Takeover premiums surged. The average premium on a bank acquisition was 45% – almost double what it was in prior years. Hundreds of deals closed at 50%-plus premiums. And dozens more closed at 100%-plus premiums. Why am I talking to you about this today?

This breakthrough will Mint the FINAL Wave of 5G Millionaires

It all has to do with a little-talked-about rule change that could spark a brand-new wave of merger mania. But unlike the repeal of Glass-Steagall, which touched just about every bank, this rule change will directly impact just a small subsector of banks.

Crypto Mania Is Coming to Banking

As crypto assets have grown in popularity, a glaring problem has emerged… the lack of banking services.Both large and small crypto businesses have had a tough time securing banking services. This is an even more acute problem now because the World Economic Forum projects blockchain technology will grow 295,762% by 2027.

As you can see, this is clearly a massive opportunity for banks. But the big banks have been terrified of offering banking services for blockchain projects out of fear of running afoul of regulators. Without an approved framework to work within… most banks have shunned the industry. But that hasn’t stopped a handful of smaller banks from venturing into the blockchain space. That’s incredibly important to you, because a recent ruling has finally opened a pathway for banks to officially work with crypto assets and blockchain companies.

On July 22, the Office of the Comptroller of the Currency (OCC) issued guidance that banks can store and work with cryptocurrency. If you haven’t heard of the OCC, it regulates all U.S. banks. It’s one of the most powerful federal agencies in the country.

Here’s the key passage from its landmark guidance:

We conclude a national bank may provide… cryptocurrency custody services on behalf of customers, including by holding the unique cryptographic keys associated with cryptocurrency.

This is incredibly bullish news for blockchain…

Buffett Dumps $800M Of Apple, Buys This Instead!

The OCC ruling has given the traditional financial system the green light to come into crypto. And it means every U.S. bank can safely get into crypto without fear of regulatory blowback. This move will rapidly accelerate adoption of blockchain technology and crypto assets. For the first time, banks now have specific rules allowing them to work directly with blockchain assets and the companies that issue and work with them. And we’re seeing that happen already…

Just last week, Wyoming granted crypto exchange Kraken a state banking charter. It’s the first crypto firm to become a U.S. bank. The bank is called Kraken Financial. And according to its CEO, as a state-chartered bank, Kraken Financial now has a regulatory passport into other states…

That means it can operate in other jurisdictions without having to deal with a patchwork of state regulations. I’ve been predicting that we’d see banks open in the crypto space because they’ll offer a new lucrative source of revenueAnd that’s the reason Kraken got into this space. Its CEO says crypto banking will be a major driver of revenue from new fees and services. So I wouldn’t be surprised if a large global bank swoops in and buys up Kraken Financial.

Ready for Prime Time

Let's put this opportunity in perspective. Right now, an estimated 35–50 million Americans own crypto. That’s 10–15% of the U.S. population. The U.S. banking system touches the lives of over 300 million Americans. And it holds north of $20 trillion in assets. As more people, businesses, and institutions warm up to crypto… we’ll see billions – even trillions – of dollars flow into blockchain and crypto companies. Don’t you think the banks would want a piece of that pie?

The short answer is yes. Fees are the lifeblood of banking. It’s estimated that financial firms rake in about $439 billion per year from fund management fees alone. This is Wall Street’s gravy train. But this gravy train is drying up… Over the last decade, Wall Street profits from managed funds and security products have decreased by about 24%. So they’ll soon turn to crypto financial products as a new revenue source. And the OCC just gave them the green light to do so. Banks are licking their chops…

As a brand-new asset class, they can charge above-average fees on any crypto-related business they undertake. It’s the same reason Kraken launched Kraken Financial. Eventually, we’ll see a wave of traditional financial firms buy up these smaller crypto banks. And that’s bullish for the entire crypto ecosystem.

If there was ever a time to get into the crypto space, it’s now. The OCC’s regulatory guidance… and Kraken’s leap into banking services… proves crypto is ready for the prime time. If you don’t already, you should absolutely own some bitcoin. It will be the reserve currency of the entire crypto banking space. And its current price will look like peanuts once crypto banking explodes. Let the Game Come to You!

P.S. As I mentioned above, we’ll see bitcoin – and crypto – adoption skyrocket over the coming months as crypto banking takes off. And I believe it’ll spark a once-in-a-lifetime opportunity… But starting with its underlying blockchain technology, I believe we’re about to see the biggest wealth and power shift in U.S. history. Those who take the right steps now could fantastically grow their wealth… Those who don’t will be left behind.

By Teeka Tiwari, editor, Palm Beach Daily

 

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Thomas ClaimCo.in

Is Bitcoin Cash BCH a Reliable Investment Now in the Second half of 2020

Is Bitcoin Cash (BCH) a Reliable Investment Now in the Second half of 2020

Viability of BCH

There are a number of points that need to be covered to understand if this particular cryptocurrency is viable for investment. First of all, it heavily depends on what the expectations are from the investor’s side. Is it something where you want to keep your money in case of a rainy day? Or is making a revenue your primary objective? It is obvious that there must be a certain kind of reassurance for the trader to decide to invest. This can be anything starting from the long-term development perspective to the overall safety of the investment. These two and many other smaller aspects are all directed by some outside factors, such as whether the development team is actively working on the project or if there is a community of enthusiasts supporting the concept. Bitcoin Cash provides certain types of advantages. The core idea is that there are low transaction fees, which are, on average, about $0.0080, meaning that it is a very affordable endeavor. The block size limit is 32 MB, which means that transactions will be quick for the foreseeable future, and there is a limited amount of supply of 21 million. The idea of BCH has always been the cryptocurrency for everyday transactions, hence its features. In comparison, Ethereum has a significantly higher transaction fee sitting at around $1.7.

Is Bitcoin Cash Worth It in Present Days?

Currently, there is a potential for a breakout in pricing for BCH. Making a reliable prediction is extremely hard when the market is so volatile. The price of BCH has risen quite a bit in the last year. However, the latest analytics show that BCH has recovered slightly in August, reaching $311 per unit, but since then dropped the support by almost $100, where it is trading at $220 at the moment of writing this article.

BCH prices are impacted by anything starting from political news, investments from companies and people with high notability, mining possibilities, support from exchanges, and surges of Bitcoin. So, the recovery may happen at any moment. However, it must be said that BCH failed to capitalize on Tim Draper’s tweet of praise during the last month, which seemingly came out of nowhere and was attributed to a hack, but then confirmed in an interview that he authorized it. It is worth highlighting that the market is extremely volatile even in less “interesting” times but right now, with the novel coronavirus pandemic, the unemployment rates are rising like no other, and people are searching for options to make some worthy investments to diversify their risks, and Bitcoin Cash is one of those opportunities.

Conclusion

The short-term future of BCH stands quite strong. It is currently the fifth most popular crypto coin and boasts a hugely supportive community around it. Bitcoin Cash, with its lightning speed transaction times and small fees, provides a better alternative to most of the other cryptocurrencies. All in all, there are some downwards trends going on, and thus it may be a perfect time for some bullish investors to chip in. Bitcoin is expected to surge in price, and if we believe past trends, traditionally, altcoins follow suit as well, so this may be just the right time.

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Lavinia C.

Lavinia is an editor who takes care of the accuracy and veracity of the texts on the website. She plays a creative role in the company and brings general content ideas to provide more relevant and engaging articles. So, just keep calm and enjoy reading.

https://coindoo.com/is-bitcoin-cash-bch-a-reliable-investment/

Thomas ClaimCo.in

Bitcoin is Steadily Changing Our Lives in the Greatest Ways Possible

Bitcoin is Steadily Changing Our Lives in the Greatest Ways Possible

Bitcoin
Bitcoin has already brought our world some of the most incredible innovation we have seen, but the best is yet to come. 

Bitcoin, cryptocurrencies, blockchain. While often regarded as mere industry buzzwords are actually the fundamentals of something far greater. Things like borderless currency, decentralized business, open-source software, collaborative technology, shared computing. These are just a scant few of the underlying principles that are taking our technology and daily lives into the future. Should these sciences be embraced, it will be a bright future indeed. It has become ever more transparent that humans today are living in fear. If nothing else, 2020 has brought the tidal wave of anxiety and distrust that many live in the shadow of, to a terrifying apex. We are all just waiting for the crash. While some flock to literature, or social media, or their favored news outlet, others flock to exchanges. Using platforms like the newbie friendly Bitvavo to place their bets on the future, on what could be, and what already largely is. Bitcoin and the technology that underpins its innermost workings are a preparation for a better tomorrow. An investment in a future that is already changing our lives today. 

The Point Behind the Hype 

In 2008, when Satoshi Nakamoto wrote the bitcoin white paper, few paid attention. It took years to gain adoption outside of the elite tech savvy forums and deep web blogosphere. However, it didn’t stop the white paper from being ultra-relevant, even then. While a large majority of the population still has trouble grasping the real importance behind decentralized currency, crypto still has a massive following- even if it’s just for the value. But the point behind the currency wasn’t one of monetary worth and gain, instead something a bit more noble. The fallout following the subprime mortgage crisis of 2007, the entire world was looking at a crippled economy and massive recession. Entire countries were devastated following the dubious investments made by US bankers. But it wasn’t just bankers shouldering the blame; but an entire litany of centralized financial mega-players, including regulators, credit agencies, government housing policies, consumers, and many, many more. 

What the Bitcoin white paper offered was a better way to take control of personal finance. A more responsible paradigm that didn’t revolve around intermediaries making money- but instead individuals. People. Everyday residents use their finances in the way they were meant to be used. Anonymous, fungible, decentralized money. An immutable public ledger that could be viewed and validated by the people themselves, cutting out the ability to speculate on things like high-risk loans. Removing the system that instigates quantitative easing practices, which often lead to devastating periods of hyperinflation or deflation. It offered a system that was built, run, and verified by the very people who use it most, with an intrinsic value that only rested on utilization. This was bitcoin. A borderless currency system that didn’t require a credit history, or any history. Just an online wallet and some imaginary coins. 

Decentralized, For Your Convenience 

While not all of these principles have made the final cut of bitcoin as we know it today, there are still a number of the original values that dictate the way the network behaves. Perhaps the most important being the concept of decentralization. Cryptocurrencies have brought in the ability for people to self-manage. And it’s not just about finance anymore. Entire businesses are now being built on decentralized platforms, using a democratic structure to exist. Smart contracts are removing arbiters and lawyers. A number of different cryptocurrencies completely extinguish the need to transfer funds into several different currencies before reaching a final destination, which also removes stacks of astronomical fees. Decentralization could become the norm in the future, which is really just the process of removing middlemen. Putting individuals in a position of greater control, with a much lower likelihood of human error or influence on whatever system is becoming decentralized. While bitcoin brought us the idea of decentralization when it comes to currency, other popular cryptocurrency platforms are beginning to incorporate decentralization with a number of other valuable services.  

Many people seem to get a bit twitchy when confronted with the idea of decentralization and “imaginary coins”. However, if you’d like to test the effectiveness of systems already in place, consider what would happen if everyone withdrew all of their money from their bank accounts at once? In America, there already exists a parable for this. It was called the Great Depression. The dollar you hold in your hand has no more “real value” than a bitcoin in your online wallet. The institutions that we put in place to control and safeguard these imaginary dollars? Well, let’s just say that their value isn’t much different, and perhaps oftentimes, much more destructive. What bitcoin has, and will continue, to offer is a better power structure that eliminates the need for externality. A system that breeds self-sufficiency. Which is arguably something that mankind has been struggling to obtain since the dawn of time. A paradigm in which there are no leaders, just users.

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Globalcoin

Independent ICO Research and Reporting on the Biggest Cryptocurrency Winners From a Top 10 Crypto News Site
 

Thomas ClaimCo.in

MSTR Stock Up 921 on Tuesday and Up 8 Today MicroStrategy Adopted New Treasury Reserve Policy Focused on Bitcoin

MSTR Stock Up 9.21% on Tuesday and Up 8% Today, MicroStrategy Adopted New Treasury Reserve Policy Focused on Bitcoin

After investing in BTC for the first time last month, MicroStrategy yesterday announced that it had purchased more Bitcoins.

Business intelligence company, MicroStrategy Incorporated (NASDAQ: MSTR), is leading in the list of companies that have adopted Bitcoin as their reserve currency. Earlier last month, the company expressed its belief that the virtual currency powered by a public blockchain is superior to cash over the long term, claiming it to be a “reasonable hedge against inflation.” After investing in Bitcoin for the first time earlier last month, MicroStrategy yesterday announced that it has purchased more bitcoins. Apparently, the company now controls Bitcoin worth almost half a billion dollar according to the market value at the time of publication, around $10,900. Notably, MicroStrategy (MSTR) stock jumped 9.21% to close Tuesday trading at $155.75, and continued with the rise during Wednesday’s pre-market, trading around $160.

At the time of writing, MicroStrategy stock is $7.64% up, trading at $167.65. With a market capitalization of around $1.51 billion through Tuesday, approximately 33% of it is in Bitcoin. The company has been increasing its Bitcoin reserve and dramatically reduced its fiat reserves. According to SEC filings, the company purchased 38,000 BTC worth $425 million at an average price of $11,111. “We just had the awful realization that we were sitting on top of a $500 million ice cube that’s melting,” CEO Michael Saylor told the media.

MicroStrategy Decisions about Bitcoin That Pushed MSTR Stock Higher

The decision to use Bitcoin as its reserve currency might be one of the best the company will ever take or the dumbest ever. This is primarily because Bitcoin is highly volatile and its value derived from mere speculation. “This will go down in history as one of the smartest or worst CEO decisions of all time. Case studies and books will be written about it. Either way, it took enormous guts for a public company CEO and I commend him for the courage,” said Barry Silbert, the CEO of Grayscale. Bitcoin increased demand has sustained its market price above $10K for around two months. With institutional investors pumping more cash into the Bitcoin market, governments will be compelled to create policies to govern the industry.

As a result, the cryptocurrency industry will eventually be globally adopted both by institutions and retail investors. The likelihood of other companies following MicroStrategy’s footsteps are very high. “MicroStrategy is adopting a #bitcoin standard. Other companies will follow. Finally, central banks will follow (Switzerland likely to be the first.) A new gold standard for the digital age. A neutral store-of-value will create more checks and balances for governments,” said Datavetaren, a pseudonymous software engineer. MSTR investors are hopeful that the company will certainly experience huge gains which will exponentially increase its value. This is perhaps the main reason that MSTR stocks keep on rising each and every other time the company purchases more Bitcoins.

Article Produced By
Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

https://www.coinspeaker.com/microstrategy-stock-policy-bitcoin/

Thomas ClaimCo.in

Why Bitcoin is a popular means of payment in Africa

Why Bitcoin is a popular means of payment in Africa


Originally designed as a means of payment, many use Bitcoin only as an object of speculation.

Not so in some countries in Africa.Chainalysis has now observed traffic and trading patterns related to crypto transactions. It turned out that Bitcoin in particular is used as a means of payment in some African countries.

As Chainalysis claims to have found out, the volume of monthly Bitcoin transfers under $ 10,000 to and from the African continent grew to a total of $ 360 million in June 2020. This corresponds to an increase of 55 percent over the previous year. These transactions are typical of individuals and smaller businesses. The pure number of monthly transfers has also almost doubled to 600,700. Chainalysis was able to locate the majority of its activities in Nigeria, South Africa and Kenya.

The transactions are less about everyday purchases such as groceries. However, traders, who often source their goods from China or the United Arab Emirates, unanimously report to Reuters that their trading partners have asked to switch to cryptocurrencies. The advantages are obvious: Payments can be made faster and more conveniently, there are no exchange fees. However, the practice is far from risk-free; the exchange between the national currency and Bitcoin is carried out via unlicensed brokers. The Nigerian state is also making it clear that this is not a legal tender and that investors are not protected. Nonetheless, Nigeria saw nearly 50 percent more small-scale transactions in June this year, to $ 56 million. The number of all transactions rose by 55 percent to 120,000.

The fact that Bitcoin is enjoying this increasing popularity in African countries of all places is only surprising at first glance. Many countries on the African continent are characterized by an above-average young and tech-savvy population. Hard dollars – the de facto currency in global trade – are hard to come by with weak currencies. And complex bureaucratic structures make financial transactions even more difficult. Frankline Kihiu, a crypto broker from Nairobi, Kenya, knows this too, and in an interview with Reuters she confirms: “People are very quick to adopt technologies that make their lives easier. In most African countries, there are many government restrictions. With Bitcoin you can ignore it. “

Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest. Everything on this website can be seen as Advertisment and most comes from Press Releases, TheBitcoinNews.com is is not responsible for any of the content of or from external sites and feeds. Sponsored posts are always flagged as this, guest posts, guest articles and PRs are most time but NOT always flagged as this. Expert opinions and Price predictions are not supported by us and comes up from 3th part websites.

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The ButCoin News – Bitcoin News source since 2012

https://thebitcoinnews.com/why-bitcoin-is-a-popular-means-of-payment-in-africa/

Thomas ClaimCo.in

Weekly Recap: Bitcoin Remains Dormant While Ethereum Resumes Uptrend

Weekly Recap: Bitcoin Remains Dormant While Ethereum Resumes Uptrend 


Bitcoin remains dormant awaiting major price movement.

Bitcoin seems to have entered a consolidation period following the 17% downswing it experienced at the beginning of the month. Its price appears to be contained within a narrow trading range, waiting for volatility to strike back. The ongoing stagnation phase forced the Bollinger bands to squeeze within BTC’s 4-hour chart, which is indicative of a major price movement about to take place. In the meantime, the flagship cryptocurrency continues to trade mostly between the $9,900 support and the $10,400 resistance level. Such a narrow trading pocket was visible throughout the week of August 7th.

Bitcoin kicked off the week at a high of $10,258 and quickly took a 3.69% nosedive to $9,880. This price hurdle served as strong resistance, allowing prices to rebound towards the overhead resistance. By Tuesday, September 8th, at 0:00 UTC, BTC was trading at a high of $10,444, but this supply barrier rejected the upward price action. The rejection was followed by a 5.76% correction that saw the pioneer cryptocurrency move a few dollars below the $9,900 support level. Regardless, this price point was able to hold again. What followed was a 6.53% upswing that extended throughout the next two days. Indeed, Bitcoin reached a weekly high of $10,484 on Thursday, September 10th, at 14:00 UTC. Just like it happened throughout the week, this resistance level rejected BTC from advancing further, triggering a 2.71% correction. Although Bitcoin was able to partially recover, it closed Friday, September 11th, at $10,388, providing investors a weekly return of 1.26%.

Ethereum Breaks Out of Consolidation Pattern Providing 6% in Weekly Returns

Like Bitcoin, Ethereum also entered a consolidation period after the massive 36% nosedive it took between September 2nd and September 5th. While its price was making a series of higher lows and lower highs, it seemed that a symmetrical triangle developed within ETH’s 1-hour chart. This type of technical formation provides an intriguing outlook since an asset can break out in any direction. Nonetheless, several on-chain metrics indicated that as prices were plummeting during the first five days of September, large investors were taking advantage of it. Data reveals that roughly 68 new addresses holding between 1,000 to 10,000 ETH joined the network during the market-wide correction. The spike in buying pressure suggested that there was a high probability that Ether was going to break out of the symmetrical triangle in an upward direction.

While the smart contracts giant spent the first two days of the week consolidating within the aforementioned technical pattern, it was not until September 9th that the breakout took place. On this day, at around 12:00 UTC, several cryptocurrency exchanges recorded an increase in the number of buy orders behind Ethereum. The spike in demand led to an 8.56% upswing that allowed ETH to slice through the overhead resistance to make a weekly high of $377.79 approximately 24 hours later. Following the upward price action, Ether suffered a small correction throughout the end of the week. But it was able to recover and close Friday, September 11th, trading at a high of $373.93. Due to the break out of the symmetrical triangle, ETH provided investors a weekly return of nearly 6%.

Make-or-Break Point on BTC and ETH’s Trend

Despite the upward price action that Ethereum went through over the week, Bitcoin’s price action suggests that the cryptocurrency market sits at a make-or-break point. If the buying pressure behind the flagship cryptocurrency does not increase, its price could slice through support and head towards $9,000. Such a downswing could affect the rest of the market. For this reason, investors seem hopeful that Bitcoin would instead turn the $10,400 into support, which would signal the resumption of the bull rally. While the DeFi market sector continues to attract the attention of most market participants, it remains to be seen what will happen to the top two cryptocurrencies by market capitalization.

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Konstantin Anissimov

Executive Director at CEX.IO. His area of responsibility includes customer relationships with institutional and VIP-clients, overseeing the creation of the company’s development strategy, new products, markets and partnerships. As a member of the board of directors, Konstantin is also responsible for corporate governance.

https://www.coinspeaker.com/bitcoin-remains-dormant-while-ethereum-resumes-uptrend/

Thomas ClaimCo.in

Jack Dorsey still thinks Bitcoin is the strongest contender for an internet-native currency

Jack Dorsey still thinks Bitcoin is the strongest contender for an internet-native currency

The Square CEO remains a vocal champion of the Blockchain space.

The world of cryptocurrency moves at a whirlwind pace but Twitter CEO Jack Dorsey remains committed to its earliest lodestone, Bitcoin (BTC).

In an interview with Reuters on Sept. 10, Dorsey, who also founded the mobile-payment platform Square, said he believes the coin’s potential still outshines

later developments:

“I think the internet warrants a […] native currency and […] Bitcoin is probably the best manifestation of that thus far. I can’t see that changing given all the people who want the same thing and build it for that potential.”

Dorsey connected Bitcoin’s founding principles with the cooperative and decentralized ethos that he considers to be the driving spirit

behind the web:

“The internet is something that is consensus-driven and is built by everyone, and anyone can change the course of it. Bitcoin has the same patterns, it was built on the internet.”

Dorsey lauded the fact that “anyone with a great idea” who wants to be part of Bitcoin can join the community — they “don’t have to be part of a company,” he said. Dorsey appeared committed to both Bitcoin and the internet in an idealized form — free from the specters of oligopoly, the excesses of corporate and government surveillance, and the stubborn asymmetries of power and capital that the advocates of decentralization must necessarily wrestle with. Consistent with this belief in the possibility for grassroots control over the cryptocurrency’s — and the internet’s — future direction, Dorsey told reporters that it’s important to focus on improving users’ experience of Bitcoin in order to foster its widespread adoption.

The cryptocurrency needs to evolve to become as “intuitive” to use and as convenient as existing digital payments infrastructure, he said.  Cost- and time-efficiency, particularly when it comes to transaction processing, are another crucial hurdle to overcome, he added. Dorsey’s commitment to an ideal ethos of the internet and cryptocurrency does not imply he is blind to the gulf between ideal and reality, however. Last winter, Twitter funded a dedicated team of open source architects, engineers, and designers tasked with developing a decentralized standard for social media. Dorsey said that the goal was for Twitter to ultimately be a client of the fruits of their efforts. Outlining the challenges that Twitter faces as a centralized platform, Dorsey identified blockchain, the technology that underpins Bitcoin, as a key technological development that points to the real possibility of a viable, decentralized future. “Much work to be done, but the fundamentals are there,” he wrote.

Article Produced By
Marie Huillet

Marie Huillet is an independent filmmaker, with a background in journalism and publishing. Nomadic by nature, she’s lived in five different countries this decade. She’s fascinated by Blockchain technologies’ potential to reshape all aspects of our lives.

 

https://cointelegraph.com/news/jack-dorsey-still-thinks-bitcoin-is-the-strongest-contender-for-an-internet-native-currency

Thomas ClaimCo.in

Winklevoss Twins Explain How Bitcoin Price Could Reach Over 500000

Winklevoss Twins Explain How Bitcoin Price Could Reach Over $500,000


On Thursday (August 27), the Winklevoss twins, explained why they believe that Bitcoin is “undervalued by a multiple of 45”, which means that its price could reach over $500,000.

Tyler and Cameron Winklevoss are the co-founders of Gemini Trust Company, LLC (which operates the Gemini digital asset exchange) as well as family office Winklevoss Capital Management, LLC. On Thursday, Gemini CEO Tyler Winklevoss published a blog post titled “The Case for $500K Bitcoin,” in which he tried to make the case that “Bitcoin is ultimately the only long-term protection against inflation” and to explain why he and his brother Cameron believe that the price of Bitcoin could reach $500,000. Tyler started by pointing out by explaining why he feels that the U.S. dollar is not a good store of value despite it being the world’s primary reserve currency for “the last 75 years.” He says that the world was “drowning in debt” even before we had the COVID-19 pandemic: “… unfavorable tectonic demographic shifts have been well underway in many developed countries for decades.

“Falling birth rates have inverted population pyramids, which means that shrinking younger generations will increasingly be unable to shoulder the growing debt burdens (e.g., healthcare, pension, social security, etc.) that have been handed down to them by the much larger, older generations.” Next, he says that governments can only reduce their debt in three ways: “They can choose to (i) not pay some portion of their debt (i.e, “hard default”), (ii) adopt austerity measures in hopes of running a budget surplus, or (iii) reduce the value of the debt they owe through inflation (i.e., “soft default”).” He then says that of these three strategies, the one that is likely to be adopted by most governments (including the U.S. government”) is soft default, which he explains as follows: “In this scheme, a government intentionally devalues its currency in order to erode the real value of the debt that it owes. Lenders still get paid the same amount of dollars that they are entitled to, however, because of inflation, such dollars are now worth less in real terms.”

Tyler then tell us that oil is not a good store of value because supply is increasing (“there is much more oil underground than anyone ever thought” and “advancements in fracking have dramatically increased the supply of oil”), demand is decreasing (e.g. due to “the push for renewable energy”), and storage becomes a big issue when “demand dries up.” As for gold (“the classic inflation hedge”) Tyler says that although gold is currently “a reliable store of value”, there are two problems with this use case for gold: (i) “the supply of gold is actually unknown” (assuming that commercial astroid mining becomes a reality); and (ii) it’s hard to move gold (especially during times of crisis, such as when you are in the middle of a war or a pandemic). Next, Tyler argues that Bitcoin is bound to take over from gold as the ultimate inflation edge because it is superior to gold in various ways, the main two being much greater scarcity and much better portability.

Tyler then goes on to point that Bitcoin is not just better than gold: it is “order of magnitude or 10X better.” Although he accepts that for “risk-averse types” gold might be “the right short to medium-term choice,” he believes that “the rate of technological adoption is growing exponentially”, which means that Bitcoin should increasingly replace gold as the best store of value. Tyler says that gold’s current market cap is around $9 trillion. Therefore, if we use “a gold framework to value bitcoin,” we could say that “the bull case scenario for Bitcoin is that it is undervalued by a multiple of 45,” which means that the price of Bitcoin could reach $500,000 if Bitcoin, as he predicts, replaces gold as the ultimate store of value. Furthermore, Tyler points out that this $500K figure could even be considered a conservative estimate if the world’s central banks start converting part of their USD reserves to Bitcoin:  “All of this does not factor in the possibility of bitcoin displacing some portion of the $11.7 trillion dollars of fiat foreign exchange reserves held by governments.

“Foreshadowing this, at least one publicly-traded U.S. corporation has begun holding bitcoin as a treasury reserve asset. “If central banks start to diversify their foreign fiat holdings even partially into bitcoin, say 10%, then 45x gets revised upward towards 55x or $600,000 USD per bitcoin, and so forth.” On August 13, Dave Portnoy, the founder and president of Barstool Sports, sent out a tweet with an attached video that showed him buying Bitcoin (BTC) and Chainlink (LINK) with the help of the Winklevoss twins: As CryptoGlobe reported on June 9, Greg Silverman, a former President of Warner Bros. Pictures and the Founder/CEO of independent content creation company Stampede Ventures is working with Cameron and Tyler Winklevoss to produce a feature film adaption of the 2019 book “Bitcoin Billionaires” by Ben Mezrich. 

According to a report by Variety, Silverman, who “launched Stampede Ventures after departing from Warner Bros. Pictures in 2016”, hired Jonathan Berg (his former colleague at Warners Bros. Pictures) on March 13 as President of Production. Berg’s producer credits include “Elf”, “Doctor Sleep”, “Justice League”, “Wonder Woman”, “The Dark Knight Rises”, and “Aquaman”. Mezrich’s first book about the Winklevoss Twins, “The Accidental Billionaires: The Founding of Facebook“, was originally published in 2019, and was used adapted by Columbia Pictures for the 2010 David Fincher film “The Social Network“. It told the story of how Harvard University student Mark Zuckberg took an idea from the twins and turned it into social networking site Facebook. This resulted in a legal battle between the twins and Facebook. In “Bitcoin Billionaires”, Mezrich’s second book about the Winklevoss twins, he tells the story of what happened to the twins following the end of their legal battle with Facebook, and more specifically how they got into the crypto space. 

Article Produced By
Francisco Memoria
Francisco is a cryptocurrency writer who's in love with technology and focuses on helping people see the value digital currencies have. His work has been published in numerous reputable industry publications. Francisco holds various cryptocurrencies

https://cryptoglobe.com/latest/2020/08/winklevoss-twins-explain-how-bitcoin-price-could-reach-over-500000/?utm_source=vuukle&utm_medium=talk_of_town

Thomas ClaimCo.in

Bitcoin Poised to Benefit from New US Stimulus Proposal If Senate Approves

Bitcoin Poised to Benefit from New U.S. Stimulus Proposal If Senate Approves

 
Americans who have been buying Bitcoin with their U.S. stimulus package may now buy more once the Senate approves the new bill.Bitcoin could benefit from the new U.S. stimulus proposal,

which will include a new round of $1,200 checks. Already, the Senate has rejected a “skinny” stimulus bill as it does not support individual checks.According to a report by Cointelegraph, the Senate will most likely sign a bill that includes direct payments by the end of September. If they approve the bill without the inclusion of direct payments, stocks and Bitcoin may be affected.

Benefits of the U.S. New Stimulus Proposal for Bitcoin

Since there are no restrictions on how Americans can spend the stimulus package, some used the previous payment to invest in stocks and crypto. In May, software and data aggregation company Envestnet Yodlee revealed that many Americans invested in stocks with their stimulus checks. Yodlee president

Bill Parsons said:

“There’s clearly a correlation between COVID and people being reengaged with their money.”

Similarly, Americans have also used their checks to purchase cryptocurrency. In addition, the CEO of Coinbase Brian Armstrong posted a tweet that corroborates the investment in crypto. According to the tweet, the percentage of deposits worth $1,200 recently jumped over four times. The surge in deposits coincides with the amount of the stimulus check, which suggests that source of the money. On approval of new stimulus payments, the general crypto market may rise as deposits increase. Before now, the Republican Party revealed details on the second round of the stimulus plan. The second round will still maintain the $1,200 payment checks for individuals and $2,400 for each couple. However, the $500 per child stimulus will now be given to dependents above the age of 17. In late-March, U.S. President Donald Trump signed a one-time stimulus package of up to $1,200 for eligible Americans. The first batch of payment was directly paid into the accounts of eligible citizens.

Senate Rejects Stimulus without $1,200 Checks

For a while now, there have been discussions between the Democrats and Republicans over the next COVID-19 stimulus. The Senate has now failed to approve a new coronavirus stimulus bill. All Democrats and Rand Paul, who is a Republican, opposed it in a 52-47 vote. For approval, the bill needed a total of 60 votes. Over the last few months, banks have been unable to handle the high demand for stimulus. On the 15th of April, banks in the U.S. experienced mass outages on their online platforms. This happened because many Americans repeatedly checked their accounts for stimulus payouts. The banks that were affected include U.S. Bank (NYSE: USB), PNC (NYSE: PNC) and Fifth Third Bank (NASDAQ: FITB). Economists believe the U.S. government should go ahead with another round of direct payments. “Direct checks are the most effective, the fastest way to support American families. In the last six months, we received one $1,200 payment, which is not enough,” said Natalie Foster, the co-chair of the Economic Security Project, speaking with CNBC.

Article Produced By
Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

https://www.coinspeaker.com/bitcoin-benefit-us-stimulus-proposal/

Thomas ClaimCo.in

Events Show That Bitcoin BTC Gold and SampP 500 Are Positively Correlated

Events Show That Bitcoin (BTC), Gold and S&P 500 Are Positively Correlated

 Events Show That Bitcoin (BTC), Gold and S&P 500 Are Positively Correlated

The investors who pump money buying stocks are beginning to see Bitcoin not just as a way to hedge their funds,

but as a viable option to grow their funds over time.Recent events across markets and among investors have shown that Bitcoin (BTC), gold, and the S&P 500 index have a close correlation. The past months have stirred different events that have tumbled the world of finance Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. and investment, with the coronavirus pandemic serving as the main factor stirring the events.

With the coronavirus pandemic, governments had to step up measures to prevent the spread of the disease. These measures resulted in border lockdowns, straining the global supply chain. Most countries also enacted a stay at home order which led to the lockdown of local businesses. In all, the money supply plunged below sustainable levels and governments had to look for ways to remedy the situation. One of the ways economic powerhouses like the United States adopted was to print more money to use as a palliative measure for businesses and households. The resultant effect of such measures is in stirring the devaluation of the U.S. dollar. Consequent to this, the U.S. currency is depreciating, and the Federal Reserve recently made its intention known through Chairman Jerome Powell to let inflation rise above the 2% annual benchmark. The implication of this is that as time passes, people cannot buy the same assets with the same amount of money, a situation that has revealed the potential of bitcoin (BTC) and Gold as a reserve or hedge asset.

Perceived Correlation in BTC, Gold and S&P 500

With increasing interest in gold over the past months, the price of the asset has soared, setting a new record above $2,000 in early August. While always being regarded as the perfect hedge against inflation, investors are also beginning to appreciate the potentials of Bitcoin and this has also led to the increase in Bitcoin price in correlation to that of gold.

As noted, the record correlation between Bitcoin and gold indicates investors don’t really see a difference between the two, as they behave the same and serve the same purpose as stores of value. As Coinpeaker reported back in March at the early stages of the coronavirus induced lockdowns, that Bitcoin and the S&P 500 are perfectly correlated probably as a result of what they both have in common-the American retail investors and corporation bosses. The correlation of the Bitcoin with the S&P 500 was also noted in June. The investors who pump money buying stocks are beginning to see Bitcoin not just as a means to hedge their funds, but as a viable way to grow their funds over time as key crypto figures have consistently projected Bitcoin price surge. The correlations between BTC, gold, and the stock market have given credence to the actions of investors. The correlation indicates the move investors employ to diversify their investment portfolio.

Article Produced By
Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

https://www.coinspeaker.com/btc-gold-sp-500-correlated/

Thomas ClaimCo.in

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