Sunday, July 3, 2022

Is Crypto Here To Stay

Are Bitcoin And Other Crypto Assets Here To Stay

Is crypto here to stay?

The price of one bitcoin is currently about $9,000. With a volatility commonly exceeding 100%, next month its price could easily be twice or half that. It can be traded on thousands of different crypto asset exchanges, or transferred directly on the Bitcoin and other public blockchains. Few of these venues or channels are regulated, yet this highly speculative crypto asset is rapidly becoming a core element of the financial system. It is an excellent diversifier for multi-asset funds and it is the underlying asset for a myriad of derivative products including perpetual swaps, variance swaps as well as standard futures and options.

Other crypto assets have a value that is defined by a utility they are not just a means for transferring payments, or speculation. For instance, ether is used to pay the Ethereum network to process smart contracts. Smart contracts are self-enacting legal agreements that are coded on a blockchain like Ethereum, or EOS. Each step in the contract executes automatically and almost instantly, leaving an error-free audit trail.

Carol Alexander is Professor of Finance at the University of Sussex Business School and leader of the Quantitative Fintech research group in the Business School. Her expertise on crypto assets and their derivatives has informed the crypto asset industry through many media outlets and in collaboration with major exchanges and data providers.

Former Us Treasury Secretary: Crypto Is Here To Stay

Crypto has received words of confidence from a former U.S. Treasury Secretary, who says it could remain a permanent fixture on global markets as a kind of digital gold.

In an appearance on Bloomberg TVs Wall Street Week, Lawrence Summers said that cryptocurrencies allowed investors an alternative asset that they could keep separate from the day-to-day workings of governments.

My guess is that crypto is here to stay, he told David Westin on the program. And probably here to stay as a kind of digital gold.

His comments came just days after the catastrophic cryptocurrency price collapse on May 19. The event, attributed to a number of root causes including Chinas ban on cryptocurrency services and Elon Musks tweets, saw a plummet in the price of many of the worlds top tokens.

Westin asked Summers if this price crash mattered, the former U.S. Treasury Secretary remarked:

Does it matter to the overall economy the standard of living of Americans no, to all of those questions. Summers went on to opine that crypto had a chance of becoming an agreed form in which people who are looking for safety can store their wealth.

My guess is that crypto is here to stay and probably here to stay as a form of digital gold.

David Stevenson: Crypto Is Here To Stay So Learn To Profit From It

As it is the summer silly season, I thought I would talk about the silliest investment class of all: bitcoin and digital currencies. I would argue theres been a long campaign to vilify digital currencies among our more grey-haired readers, and I couldnt help but smile when reading comments about Ruffers , depending on your viewpoint, to invest in bitcoin.

I have been watching this space for many years and have made a few comments in the past and also a few investments but over the last few days I have settled a few debates in my own mind.

The first is that bitcoin is here to stay. Despite all the best efforts of older investors, central banks and regulators to kill it, it is not going to vanish.

In fact, I now laugh out loud when I read about incredibly confident market sages predicting bitcoin will go to zero. Really? I concede that many of the fundamentals underpinning bitcoin and its peers are shaky. In most cases pricing for cryptocurrencies is primarily driven by liquidity flows, momentum and confidence inspired by slightly surreal news articles and crypto whales who control an inordinate amount of the liquidity in markets.

But let us be honest. We equity investors cannot say we have not seen this before an equity class where multiples are disconnected from any fundamentals and basically momentum-driven.

Read Also: What Cryptocurrency Should You Buy

Waiting For Markets To Mature Takes Time: Crypto Is Ready

Rance Masheck is President and Founder of iVest+, a next generation stock and options trading platform.

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When I teach people about investing, one of the things I try to get across is there is no rush to get involved in new markets. It seems like every few years, there is always a hot new thing that lures people in. Whether it is futures, forex, single-stock futures, contracts for differences or now cryptocurrencies, all of these investment vehicles have markets that take time to mature. But not all markets are created equally or in equal time, and cryptocurrencies appear to have reached maturation at this point and seemingly faster than most of their predecessors.

Consider futures. Futures have been around in the U.S. since the Chicago Board of Trade formed in 1848. However, it has really only been in the past 20 or so years that an average investor might dabble in futures contracts. What did it take for that to happen in the futures market? First, the contracts had to become liquid and most of them are so that investors have the confidence they can get in and out. Contract sizes also make a difference. The E-mini S& P 500 is the most commonly traded futures contract, but there are full-size contracts, minis and now even micros. This lowers the barrier to entry for smaller traders to get involved.

Whats Behind The Latest Bitcoin Drop

Crypto is Here to Stay? Microsoft Includes Bitcoin Sign to ...

Many investors see Bitcoins price swings as part of the game, but volatility is tough for individual investors to deal with, Noble says. Like Yang, he warns against selling too fast.

While this recent drop is reminiscent of 2017s sell off, Bitcoins presence has grown a lot since then. New short-term investors who are selling their holdings in reaction to the drop may be influencing the continued dip in Bitcoins value, according to a recent report from Glassnode Insights, a blockchain analysis firm.

While fluctuations are expected, Noble says this swing is a bit out of the ordinary. I thought the market was maturing and these things would be less frequent and severe. Boy was I wrong, he says.

This particular drop was caused by a combination of factors that may have made this drop more severe, Noble theorizes, from excitement about low-quality coins, to negative remarks from Elon Musk, to Chinas latest crack down on crypto services. The accumulated response made this sell off all the more violent, says Noble.

He likens the drop to the stock market crash of 1987, from which the markets took months to recover. But because crypto moves a lot faster today than equities did in the 1980s, Noble says we may see a quicker recovery.

Dont panic and puke, Noble says. If you keep your positions small, you can try to tolerate the volatility.

Recommended Reading: What Is Bitcoin Selling For

Explained: The Rise And Rise Of Bitcoin India Investment Rules

Bitcoin enthusiasts are in the middle of an existential crisis. Since its mid-April high, the price of Bitcoin has tumbled by as much as 47%. Meanwhile, China where up to three-quarters of the worlds supply comes from is curtailing mining and trading. And how solid a rock is the worlds largest cryptocurrency when a few cryptic tweets from Tesla Inc. founder can send it wobbling? Institutional investors have been heading for the exit for gold.

But true believers take heart! Other investments require even greater leaps of faith. You can do a lot worse than Bitcoin.

Bitcoin has a simple concept: It is a digital token with a finite supply thats been around for 14 years. By comparison, in the traditional world of stocks and bonds, youll be hard pressed to find assets that have such investor enthusiasm and such a clear story to sell.

Consider the electric vehicle craze. QuantumScape Corp, a $12.3 billion market cap EV battery maker that counts Volkswagen AG and Qatar Investment Authority among its major shareholders, went public via a reverse merger with a SPAC last November. This stock has done worse than Bitcoin, losing almost two-thirds of its value this year. The reason? Its too mysterious.

Read More: Why Bitcoin’s wild ride bodes well for the future of digital cash

In The Know: Is Crypto A Speculative Play Or Here To Stay

In the past few years, cryptocurrencies have certainly attracted speculators given their dramatic price moves, but is there a long-term case for crypto from a practical standpoint, and for more traditional investors? We posed these and other questions to Franklin Equity Group Research Analyst Anthony Hardy, who shares his thoughts.

This post is also available in: Chinese German

Q: Since you first began following cryptocurrencies in 2011, the price of a bitcoin has surged from under US$1 to more than US$50,000. What do you see as some of the reasons for this strong long-term performance?

Hardy: There are many factors behind the strong long-term performance of bitcoin. The path certainly hasnt been straight up thoughthere have been several bull and bear markets along the journey. Demand has significantly grown over the past decade, but at the highest level, there is currently a fixed supply of 21 million bitcoins, the majority of which have already been mined. So, the price will naturally rise because of that.

At a more granular level though, there is a confluence of factors driving the runup over the past few quarters. On the macro side, there is a search for inflation hedges given the unprecedented amounts of money printing from the central banks, and also a search for returns given the low interest-rate environment and frothy equity and bond markets.

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The Only Certainty In Crypto

For all the unknowns that still swirl around cryptocurrency, the industrys leaps in maturity and market share since mid-2020 almost guarantee that large investors will no longer tolerate or dismiss it as a mysterious alternative asset class that isnt subject to rules or norms. Going forward, theyll regard it as an essential asset class that they must approach with the same caliber of data-driven scrutiny that they give any other investment category in their portfolio.

The speed, depth and accuracy of the blockchain analysis that institutional investors rely on will be a determining factor in whether they capitalize on opportunities in the next yearor become an unwilling part of another cautionary tale. And it may not be a tale about the perils of managing risk poorly it may be a lament of missing the early signal of a trend or development that other institutional investors moved on to reap significant gains while still protecting their capital.

Chainalysis can be a data partner and educational partner to institutional investors as they make decisions about cryptocurrency, says Gradwell. And thats not just in buying an asset, but also investing in companies or product development. All these decisions need to be driven by data, and we offer institutional investors the most comprehensive and in-depth view of cryptocurrency information in the industry.

R Kellys Conviction: A Bittersweet Victory

Mohamed El-Erian: Crypto is here to stay but won’t be a world currency

To the Editor:

Re Kelly Convicted of Running Sex Ring for Decades :

Back in August when I saw images of a tribute to R. Kelly written in chalk outside the federal courthouse in Brooklyn, my heart shattered. Growing up, my friends and I would cover our block in colorful chalk drawings, and I love seeing children doing that today. I couldnt look past the irony of using a fun childhood pastime to pen a message of support to a man who recruited underage girls for sex.

Like many Black women and girls, I didnt have faith that R. Kelly would be convicted. His being found guilty on all counts of racketeering and sex trafficking is a bittersweet victory. The victory is for the survivors who sought justice.

But this verdict comes after decades of harm, and mounting evidence that should have stopped him from causing further harm to Black women and girls. I will never be at peace with that, and I will never stop fighting to hold the systems that have long ignored Black women and girls accountable.

Joanne N. SmithThe writer is the founder and president of Girls for Gender Equity.

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Should We Fear Bitcoin Or Celebrate It

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Re Bitcoin Cosplay Is Getting Real, by Binyamin Appelbaum :

What a sad and sour portrait Mr. Appelbaum paints of Bitcoin.

In their brief existence, cybercurrencies like Bitcoin have grown into a $2 trillion market , spawned entire new industries , led to a flurry of innovation, and created a cadre of millionaires and billionaires.

Financial firms, central banks, regulators, systems designers, investors and national governments are all rethinking as they must the ways in which blockchain-based currency technologies are changing the world around them.

Mr. Appelbaum sees none of the excitement and potential of such a massively disruptive innovation. Instead, he hauls out the tired comparison of Bitcoin to the Dutch tulip craze in the 1600s. Four hundred years later tulips are thriving as a robust part of Hollands economy. We wont need to wait that long to learn if Bitcoin will stand the test of time, but its growth and institutionalization in the space of just a few years strongly suggest that its here to stay.

David SarokinThe writer is the author of The Corporation: Its History and Future.

To the Editor:

Blockchain is best understood as a worldwide criminal enterprise masquerading as an economic bubble. Digital blockchain tokens have no legitimate use, but they have plenty of illegitimate ones.

To the Editor:

Thats How It Always Goes At Bild Those Who Sleep With The Boss Get A Better Job

A junior employee of the German tabloid Bild, to a law firm hired by its parent company, Axel Springer, in the spring to investigate its work practices. Axel Springer, which recently added Politico to a growing stable of digital properties in the U.S., has faced allegations of creating a hostile work environment for women in its home country. The culture at Bild was not up to our standards and does not reflect the broader culture at the company, Mathias Döpfner, Axel Springers C.E.O., said in a statement.

Also Check: How Many Blocks In Blockchain

The Foundational Tech Behind Bitcoin

How could you not love crypto? Crypto is just a great system. Its frictionless. Its decentralized. And young people want their own financial system. So, it is here to stay.

Thoma Bravo participated in FTXs $900-million Series B funding round the largest in crypto exchange history alongside 60 venture capital and crypto firms, including Sequoia Capital, Coinbase Ventures, VanEck and the Paul Tudor Jones family. The funding resulted in FTXs value soaring to a colossal $18 billion, establishing the exchange as a decacorn.

Is crypto here to stay? Absolutely, says .

How could you not love crypto? And on top of that, the underlying technology of blockchain can be very powerful.#DeliveringAlpha

Delivering Alpha

In the interview, Bravo also spoke highly of blockchain, cryptos underlying technology, conveying his belief that it could improve the current system:

The underlying technology of blockchain, regardless of what protocol or what system you are building upon, can be very powerful and sometimes provides better use cases than data-based software.

Subscribing to a similar sentiment is crypto maverick Elon Musk, who spoke to CNBC at Tuesdays Code Conference in California. Musk advocated for the adoption of cryptocurrencies but warned on government invention: It is not possible to, I think, destroy crypto, but it is possible for governments to slow down its advancement.

Related:Bears intend to pin Bitcoin price below $43K until Fridays $700M expiry passes

Shiba Inu Dogecoin Are Here To Stay So Long As Memes Are Alive On The Internet

Giancarlo OUR HERO! Crypto is here to STAY, BITCOIN IS ...

Many investors from around the world are learning about investing in crypto and making some extra cash. While Bitcoin has remained the investors favorite, trends among altcoins keep changing, depending on which TV series is trending, or which breed of Dog is in demand. The latest one is Shiba Inu, which has taken the crypto market by storm.

The digital asset was returning over 700% since October, and this was more than enough reason for a general investor to make a quick buck. The current hype around Shiba Inu as DOGE-killer was moving along with the meme-trend becoming popular in crypto.

It ended up creating a community connected through the dog-themed meme . This communal interest of the people has kept Shiba Inu afloat and also invited the interest of many businesses.

As the digital asset held a relatable quality for crypto users, businesses were sensing this support too. Which is why they were planning on including SHIB as a means of payment or just as a means of investment. Tokens.com, a publicly-traded company acquired 833 million SHIB tokens on 3 November, 2021.

As the market capitalization of the digital asset crossed $30 billion, Tokens.com was going to stake the tokens to earn additional SHIB.

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Banks Cant Win The Fintech Battle Due To Obstacles In Culture And Focus Adds Winters

Bill Winters, chief executive of Standard Chartered, said he personally believes cryptocurrencies have a role to play in portfolios

Standard Chartered plans to go full speed ahead on cryptocurrencies in spite of an impending global regulatory crackdown on the nascent asset class.

Theres a huge role in our future for digital assets in all of their different forms, said chief executive Bill Winters at an innovation conference run by the bank, adding that his personal view is that cryptocurrencies are here to stay.

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