Archive for Cryptocurrencies

What are stablecoins? A blockchain expert explains

By Stephen McKeon, University of Oregon 

Stablecoins are a type of cryptocurrency linked to an asset like the U.S. dollar that doesn’t change much in value.

The majority of the dozens of stablecoins that currently exist use the dollar as their benchmark asset, but many are also pegged to other fiat currencies issued by governments like the euro and yen. As a result, the price of stablecoins is meant to fluctuate very little, unlike high-profile cryptocurrencies like bitcoin and ethereum that are prone to sudden ups and downs.

The first stablecoin, created in 2014, was Tether, which many other stablecoins are modeled after. Users receive one token for every dollar they deposit. In theory, the tokens can then be converted back into the original currency at any time, also at a one-for-one exchange rate.

As of May 11, 2022, there were about US$83 billion in Tether outstanding, or a bit less than half of the $172 billion market capitalization of all stablecoins worldwide. The next-largest is known as USD Coin, which has a market cap of about $49 billion.

Why stablecoins matter

Originally, stablecoins were primarily used to buy other cryptocurrencies, like bitcoin, because many cryptocurrency exchanges didn’t have access to traditional banking. They are more useful than country-issued currencies because you can use them 24 hours a day, seven days a week, anywhere in the world – without relying on banks. Money transfers take seconds to complete.

Another useful feature of stablecoins is that they can work with so-called smart contracts on blockchains, which, unlike conventional contracts, require no legal authority to be executed. The code in the software automatically dictates the terms of the agreement and how and when money will be transferred. This makes stablecoins programmable in ways that dollars can’t be.

Smart contracts have given rise to the use of stablecoins not only in seamless trading but also lending, payments, insurance, prediction markets and decentralized autonomous organizations – businesses that operate with limited human intervention.

Collectively, these software-based financial services are known as decentralized finance, or DeFi.

Proponents hold that moving money via stablecoins is faster, cheaper and easier to integrate into software compared with fiat currency.

Others say the lack of regulation creates big risks for the financial system. In a recent paper, economists Gary B. Gorton and Jeffery Zhang draw an analogy to the middle of the 19th century era when banks issued their own private currencies. They say stablecoins could lead to the same problems observed in that era, when there were frequent runs because people couldn’t agree on the value of privately issued currencies.

A reminder of those risks came in May 2022 as a so-called algorithmic stablecoin known as TerraUSD, or UST, plunged in value. Algorithmic stablecoins use a complex system of burning, or creating tokens for profit, to maintain their peg.

As a result of these issues, regulators have taken greater interest in them recently.

About the Author:

The Conversation U.S. publishes short, accessible explanations of newsworthy subjects by academics in their areas of expertise.

This article was updated to add reference to UST and algorithmic stablecoins on May 11, 2022.The Conversation

Stephen McKeon, Associate Professor of Finance, University of Oregon

This article is republished from The Conversation under a Creative Commons license. Read the original article.

 

The cryptocurrency market digest (BTC, LUNA). Overview for 13.05.2022

Article By RoboForex.com

It seems like the worst expectations for the BTC are coming true. Yesterday, the major crypto asset dropped to $25,401. Right now, it is trading around $30,629.

The technical picture remains the same: the asset may plummet to $20,000 unless it is able to fix between $29,000 and $30,000. The next bearish target is at $8,700 and then $5,000. In this light, there is no sense to draw comparisons between the crypto sector and the US stock market. Both are plunging.

Coinbase: a common area of responsibility

Coinbase attracted a lot of attention this week. The company released its quarterly report and announced amendments to the User agreement. According to the new draft, all users of the crypto exchange are now its loaners. So, if the company goes bankrupt – this is a possibility – then the token owned by users may be used to clear debts of Coinbase. Of course, no one is talking about bankruptcy, but these nuances in the User agreement didn’t make investors happy – the stock plunged over 27%.

UST: too much volatility

Some days ago, the United States secretary of the treasury Janet Yellen called for passing a stable coin related law. There are too many activities and emotions around TerraUSD – the token suffered from a massive withdrawal of assets, plummeted, and then tried to regain its positions. It all started when one of the investors requested to sell UST worth $300 million. It caused a panic in the market and a decline in the rate.

We remind you that the cost of LUNA, which is a part of the Terra ecosystem, plunged. Last week, it was $80 and now it’s $0.06. early in May, LUNA was in the Top 10 of the cryptos with the biggest capitalisation.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Could Mijem’s New Scholarship Finally Get Gen Z Into Crypto?

Source: Streetwise Reports   05/10/2022 

With today’s college students scrambling to save money, technology firm Mijem is using $5k crypto scholarships to drive followers to its buy-and-sell marketplace. Here’s how it all works.

Gen Z

Mijem Newcomm Tech Inc. (MJEM:CSE), a Canadian social media company, is coming for Facebook Marketplace and Kijiji with its growing app. Established in 2014, the technology company offers a buy-and-sell marketplace aimed at Generation Z students in the United States and Canada. The company’s growth slowed during the pandemic when many campuses switched to remote learning. While college and university campus activity slowed down, Mijem took the opportunity to build new features in its app and subsequently completed its IPO in January 2022.  

Hybrid Tuition Scholarship

As tuition costs and student debts rise, Mijem has launched an unconventional tuition program. “We’re offering a scholarship giveaway that combines dollars and cryptocurrency. The winner will receive $5,000—half of it in dollars and the other half in Bitcoin SV (BSV),” Laurie Freudenberg, chief executive officer, shared in an interview with Streetwise Reports.

Cryptocurrency reward programs are gaining in popularity. Shake Shack announced a Bitcoin rewards program to attract younger customers earlier this year.

With an approximate market value of $1.5 billion US, BSV may not be as well known as cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), or Dogecoin (DOGE).

“BSV is perfect for this scholarship giveaway because it has a lower environmental impact than other cryptocurrencies, which is important to Gen Z,” Freudenberg shared in an interview.

The resource impact of cryptocurrencies has been controversial in recent years. Business Insider has estimated that mining Bitcoin produces an estimated 40 billion pounds of carbon emissions. In comparison, Google Cloud produced approximately 1,322,773 pounds of carbon emissions.   

The company offers two scholarships in its contest: one to students based in the United States and one to students in Canada. Announced in April 2022, the deadline to apply for the scholarship is June 13. To qualify for the contest, students must meet the eligibility criteria and be starting or returning to college or university in the summer or fall of 2022.

Loyalty Program With Cryptocurrency

In addition, the business has a loyalty program to encourage transactions with cryptocurrency. “For every $1 US transacted through Mijem’s platform, the loyalty program rewards both the buyer and the seller with 1 point each. The points can be converted at the user’s option to Bitcoin SV (BSV) and deposited into their integrated digital wallet,” Freudenberg explained. 

The business charges a transaction fee of 12.5% on each transaction made through the platform. 10.5% percent of the fee goes to the company as revenue, with the remainder of the fee funding the company’s loyalty program.

Cryptocurrency reward programs are gaining in popularity. Shake Shack announced a Bitcoin rewards program to attract younger customers earlier this year. In addition, several credit cards offer cryptocurrency rewards in the US, including BlockFi Rewards Visa Signature Card and the Gemini Credit Card.

Helping Students Buy and Sell

Mijem’s core business offering is a buy-and-sell marketplace for students. “The most popular item sold on the platform is textbooks. It’s a huge expense for students, even in a digital world,” Freudenberg commented. Other popular items in the market include electronics, clothing, and household goods.

Mijem earns revenue by charging a transaction fee on each sale completed on the platform. The app itself is free for students to download. App users can make payments through the app or pay outside the app. 

Debt and Affordability Concerns Drive Interest In Mijem

Every dollar saved by using Mijem means less debt for Gen Z. That’s significant because of the high level of student debt. According to the Federal Reserve, the average college debt is $32,731. In contrast, the National Association of Colleges and Employers found that the average college graduate’s starting salary is $55,260. 

Mijem also helps users list and find sub-leases for apartments. That capability is significant because rent prices have risen to historic highs in many cities. For example, the average rent for a one-bedroom apartment in New York is $3,450, a 38% increase compared to the previous year. 

In Toronto, Canada’s largest city, low vacancy rents contribute to higher rents. In the first quarter of 2022, the average rent for a one-bedroom apartment in Toronto was $2,145, a year-over-year increase of 17.8%. These economic pressures may be expected to drive students to seek ways to save money by using services like Mijem.

Building a Community App Experience

There is a limit to how often students will buy and sell textbooks, furnishings, and other products. Mijem has invested in adding additional community features to maintain and grow user engagement. 

Mijem has significant growth potential. Today, the company has 91 Canadian schools (i.e., about 33% of Canadian post-secondary institutions) and 1419 American schools (i.e., 36% of American institutions) with users on the app. The three largest schools by users are the University of Buffalo, the University of Waterloo, and Wilfrid Laurier University.

While the company has focused on students, the company does not require a school email address to sign up. Users can join several communities, including urban areas (e.g., the Toronto community) and academic-based communities (e.g., the University of Toronto).

Business Model

Seasonality is a significant factor in the Mijem business model. “App usage often increases at certain times of the year like August and September when students return to school,” Freudenberg commented. The seasonality trend is driven by students seeking housing, buying textbooks for courses, and equipping their accommodations. 

Maintaining student engagement and app activity levels during off-peak periods such as June and July is a challenge for the company’s business model. However, this limitation may be partially mitigated by the growing popularity of the summer semester and Mijem’s loyalty program.

 

Disclosures

1) Bruce Harpham compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee. They or members of their household own securities of the following companies mentioned in the article: None.  They or members of their household are paid by the following companies mentioned in this article: None. Their company has a financial relationship with the following companies referred to in this article: None.

2) As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Mijem Newcomm Tech Inc. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional, and any action a reader takes as a result of the information presented here is their own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice, and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services, or securities of any company mentioned on Streetwise Reports.

4) From time to time, Streetwise Reports LLC and its directors, officers, employees, or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in the securities mentioned. Directors, officers, employees, or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Mijem Newcomm Tech Inc., a company mentioned in this article.

Is Bitcoin Headed to Zero?

“40% of bitcoin investors are now underwater”

By Elliott Wave International

Charlie Munger is Berkshire Hathaway’s co-chairman, and on April 30 at the firm’s shareholder meeting, he said:

[Bitcoin] is stupid because it’s very likely to go to zero.

Berkshire Hathaway chairman Warren Buffet also expressed a negative sentiment toward the cryptocurrency.

Bitcoin’s recent price action appears to support the views of the two billionaire investors, at least at this juncture.

Here’s a CNBC headline from the evening of May 9:

Bitcoin dips below $30,000, drops more than 56% from its all-time high

Keep in mind that just days ago, the cryptocurrency was trading north of $40,000. The last time Bitcoin traded below $30,000 was last July. As you might imagine, many crypto investors were quite fearful then.

Indeed, a July 9, 2021 Bloomberg headline captured the sentiment of the global chief investment officer of a major financial firm:

Bitcoin ‘Crash’ Risks Taking Its Price Down to $10,000

However, the cryptocurrency’s Elliott wave structure suggested that its price was poised to move higher. The July 2021 Global Market Perspective, an Elliott Wave International monthly publication which provides analysis of 50-plus worldwide markets, said:

Bitcoin [is] at or near the end of its fourth wave-correction.

In other words, the then slide in Bitcoin’s price was a countertrend move.

After that July 2021 low, Bitcoin went on to hit an all-time high of $68,906 in November 2021.

Of course, Bitcoin’s price has taken a tumble once again.

Might this time be the time of a collapse?

It sure feels like it to a lot of investors (May 9, CNBC):

40% of bitcoin investors are now underwater, new data shows

These investors are naturally wondering, “what’s next?”

The recently published May Global Market Perspective once again provides an Elliott wave perspective on Bitcoin’s price action.

Remember, Elliott waves are a direct reflection of the repetitive patterns of investor psychology and these patterns offer “predictive value,” as noted by Frost & Prechter’s Wall Street classic, Elliott Wave Principle: Key to Market Behavior.

This doesn’t mean that Elliott waves guarantee an exact future price path of a financial market, yet, Elliott waves do offer context.

One thing’s for sure, there’s a wide chasm between Charlie Munger’s comments that Bitcoin will likely go to zero and other forecasts that say Bitcoin is headed toward a million dollars.

Elliott waves help you to put the big Bitcoin picture into perspective.

You’ll find our Bitcoin analysis [as well as analysis of other cryptocurrencies], which includes charts, commentary and a video, under the “Cryptocurrency” section in the May Global Market Perspective.

Here’s the good news: Now through May 18, you can test-drive the Global Market Perspective for only $9. That’s a $50 savings!

See what Elliott Wave International’s global analysts anticipate next for 50-plus global markets: U.S., European and Asian-Pacific stocks, FX, cryptos, bonds, oil, gold and much more.

Learn more about this rare chance to test-drive the Global Market Perspective for only $9 — which means access to the May 2022 issue — by following this link.

Australia is investigating a digital currency, or e-dollar, but its benefits seem slight and the risks to privacy large

By Nafis Alam, Monash University 

– We are used to thinking of money as notes and coins, the kind most of us hold in our wallets. But most money – in Australia it’s 96.3% – is digital, held by financial institutions and moved around via bank transfers, debit cards and credit cards.

Late last year Treasurer Josh Frydenberg promised to consult about introducing a third type of currency, a central bank digital currency, and asked the treasury to come up with a position by the end of 2022.

A central bank digital currency (CBDC) would be an “e-dollar”, each one worth $1 dollar, but able to be held digitally without being put into a bank – such as on computers or in digital wallets on phones.

It could allow direct consumer-to-consumer and consumer-to-business payments without the intervention of financial institutions, and allow people who don’t want to use banks to hold funds in a form that’s safer than cash.

It could also head off attempts by private firms – such as Facebook, which proposed something called Libre – to do the same sort of thing.

For transactions, it would have a clear advantage over so-called cryptocurrencies such as Bitcoin, whose values fluctuate because they are not tied to a currency.

Many central banks are investigating the idea, but most say they are unlikely to issue a retail CBDC in the foreseeable future.

Australia’s Reserve is particularly unenthusiastic, declaring there is “currently no strong public policy case to introduce a CBDC for retail use”.

Whereas in much of the rest of the world the use of cash is shrinking, in Australia there are more banknotes in circulation as a proportion of the economy than at any time since the introduction of decimal currency in 1966.



Most of the cash appears to be used to store money rather than execute transactions. But if ever Australians could be weaned off cash, there would be savings for the Reserve Bank in the cost of printing and distributing cash, and also, most likely, fewer robberies.

But how the idea would work isn’t clear.

Like bus and train cards

One model would be to produce a digital token almost exactly the same as cash. Like a banknote, it could be passed from one person to another in anonymity, with no central authority involved.

The bus and train cards used in some parts of Australia are like this – unless an owner chooses to register ownership, there is no record of who used the card.

One downside is that, unlike cash, very large sums could be held on very small devices, which could be stolen or lost. A New Zealand study notes that cash is relatively bulky, “making it unlikely that consumers would carry
large amounts on their person or store large amounts in their homes”.

And it could facilitate illegal transactions. The current Coalition government is so concerned about the use of cash for illegal transactions that it introduced legislation – never enacted – which would have banned the use of cash for payments over A$10,000.

Banks and other organisations are already required to report transactions of $10,000 or more to the Australian Transaction Reports and Analysis Centre.

Or more like Bitcoin

An alternative, the one most often talked about as a consumer digital currency, would use blockchain technologies of the kind used in Bitcoin and other cryptocurrencies to register and track ownership, and verify transactions.

With blockchain, every transfer is recordable and hard to delete. The central bank (in Australia’s case, the Reserve Bank) would be able to track transactions.

It can be thought of as an account at a central bank, which could be used to transfer money to other accounts. In most models, the account would pay no interest.

And the central bank could limit transactions. Some, such as Bank of England Bank of England deputy governor Jon Cunliffe, see this as an advantage.

He says it could be like

giving your children pocket money but programming the money so that it couldn’t be used for sweets

In his book The Future of Money, Cornell University economist Eswar Prasad warns about societies in which central bank digital money becomes “an additional instrument of government control over citizens”.

China’s ‘programmable’ e-currency

China became the first major economy to pilot a digital currency in 2020.

The consulting firm Oliver Wyman says the digital Yuan will be “programmable” and could be set to only be used for payments after “activation” when certain predefined conditions are met.

China’s government, but not other users, would have the ability to monitor transactions in real time, in what China calls “controlled anonymity”.

This isn’t what much of the rest of the world seems to want. A survey of European consumers finds the thing they most want from an e-currency is privacy (43%) ahead of security (18%) and offline usability (8%).

The United States is continuing to investigate the idea, pointing to benefits including getting payments quickly to people in times of crisis (assuming there are working electricity and internet connections) and providing services to the unbanked.

Privacy is the roadblock

Privacy isn’t of concern in the other arena central banks are moving ahead with plans for a digital currency – wholesale money. Australia’s Reserve Bank is well advanced on Project Atom, which would allow financial institutions to transfer money between each other more quickly.

At the retail level, much of the world is moving slowly. Australia’s Reserve Bank says apart from the developed economies of Sweden and Canada, most of the economies advancing the idea are emerging, including the Bahamas, Cambodia, Eastern Caribbean, Ecuador, Nigeria and Ukraine.

They have weaker electronic banking infrastructure than Australia, and populations that can’t easily access physical banks.The Conversation

About the Author:

Nafis Alam, Professor and Head, School of Business, Monash University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

 

The cryptocurrency market digest (BTC, ETH, XRP). Overview for 06.05.2022

Article By RoboForex.com

The BTC dropped after all. On Friday, the major cryptocurrency is trading at $36,435; yesterday’s low is $35,579. At the moment, the asset is moving close to the lows of 24 February.

Over the last 24 hours, the BTC lost 9%.

The current technical picture doesn’t exclude a possibility of a plunge below $35,000. After breaking the support at $37,500б bears got stronger and may continue pushing the asset down to the next support at $35,500. $37,500 is now the key resistance and the bulls may reach it only after fixing above $36,500. Otherwise, the plunge will resume and the price might reach $35,000 and the next target at $34,200.

What has happened? The US fed raised the benchmark interest rate by 50 basis points, just as expected. As a result, market players got exactly what they were expecting and pushed the prices upwards. There is a direct correlation between NASDAQ and S&P 500 and the BTC, so the cryptocurrency responded to the news with a serious growth but then investors realised that the rate would be much higher by the end of the year. After that, global purchases transformed into global sales.

It’s interesting that at the end of the week, the US stock market was in the similar conditions it started the week. However, the plunge in the BTC was much more serious.

Bitcoin chart online

ETH: no good news

The ETH, the major altcoin, continues falling. The market sentiment is not too optimistic and there are no strong fundamental factors to support the digital asset. Today, it is fluctuating around $2,740. The technical picture implies a plunge to $2,600 unless bulls manage to turn the tables.

Ethereum chart online

XRP: attacking 0.5461

Unlike other altcoins, the XRP is looking quite well – it is losing only 1% per day. However, the mid-term trend remains negative. At the moment, the asset is trading at $0.6085. the closest support is at $0.5461. If the price breaks it, the asset may continue falling towards $0.4000.

Ripple chart online

LFG: unconditional trust in BTC

In the meantime, Luna Foundation Guard has bought the BTC worth $1.5 billion – it’s about 37,863 Bitcoins – in two transactions. At first, LFG closed a $1 billion OTC swap with crypto prime broker Genesis for $1 billion worth of UST. It also bought $500 million of bitcoin from crypto hedge fund Three Arrows Capital. Now the LFG is in the Top 10 biggest BT holders. These transactions get the LFG closer to the idea of creating crypto reserves in the amount of $10 billion. It’s twice as much as MicroStrategy has.

It’s good news for the LUNA token. The point is to make a coin stable and decentralised, and this requires other crypto assets to support it. It might well be that others will decide to follow this example, at least TRON.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

The cryptocurrency market digest (BTC). Overview for 04.05.2022

Article By RoboForex.com

On Wednesday, the BTC is balancing at $38,800.

Everyone is waiting. The US Fed’s 2-day meeting will be over later today and the regulator is expected to raise the rate. 100%. The question is – by how much? Average market expectations imply a 50-point hike, yup to 0.75-1.00%. this has already been included in prices, so investors will focus their attention on what Fed Chairman Jerome Powell has to say and how he is going to sound.

If the Fed announces its intentions to raise the rate and cut its portfolio quickly, such indices as NASDAQ and S&P 500 will drop. We remind you that there is a direct correlation between stock indices and the BTC, so if stock investors start selling, the BTC might drop to the support level at $34,800. On the other hand, if the situation remains calm and quiet (it’s very unlikely, but still), the BTC may reach or even break $41,000. If it really happens, it might be a signal for recovery.

The Fed’s stance is also understandable: judging by the GDP Q1 2022 data, the country is already one foot in the economic recession. It can’t happen, that’s why the regulator will try some tools “in real-time mode”.

Loans in the BTC: will there be a demand?

Goldman Sachs offered its clients BTC-based loans. A “pilot” case was successful – the bank’s clients got fiat money collateralized by Bitcoin owned by the borrower. For Goldman Sachs, this experience was interesting because of its structure and 24-hour risk management. There is no guarantee that this product will become global – the BTC is very volatile, so the rates might be non-market. However, if the bank considers this case as experience, it might be very interesting and used in some specific cases.

Rari Capital: significant losses

Rari Capital got hacked and over $80 million of crypto assets were stolen. It is already known that the security vulnerability was the reentry point of the protocol smart contract. The platform offered hackers to return crypto assets for $10 million, and it’s not clear how it all pans out.

Otherside: everything was sold out

All available virtual lands in the Otherside metaverse, and that’s 55,000 NFTs, were sold out in three hours. 45,000 more NFTs were included in the distribution to owners of Bored Ape Yacht Club and Mutant Ape Yacht Club tokens. As a result, the company attracted $317 million. All buyers passed obligatory verification – which means that users were not embarrassed to identify themselves.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Quarter of wealthy investors to include NFTS in investment mix

By George Prior 

– More than a quarter of high-net-worth investors will include NFTs, or non-fungible tokens, into their portfolios this year, a new global survey from one of the world’s largest independent financial advisory, asset management and fintech organizations has revealed.

The findings of the poll carried out by deVere Group come as momentum surrounding the new digital asset class continues to build around the world. The Mercedes-AMG Petronas Formula One team, for example, is launching the first in a series of NFT drops. The team is introducing 11 digital art NFTs featuring Mercedes-AMG Petronas cars, created and designed by the artist Mad Dog Jones.  Three of them will be available for auction during the much-anticipated Miami Grand Prix this weekend.

The deVere poll shows that of the 450+ HNW clients surveyed, 26% said that they are looking to include NFTs into their investments before the end of 2022.

The respondents are clients who currently reside in North America, the UK, Asia, Africa, the Middle East, East Asia, Australasia and Latin America, and have more than £1m of investable assets.

An NFT is a digital asset that can be an image, audio clip or GIF and whose ownership is recorded on a tamper-proof digital ledger known as a blockchain.

Of the findings, deVere CEO and founder Nigel Green comments: “The buzz about NFTs, this exciting new digital asset class, is gaining pace.

“More and more investors around the world are understanding and valuing the potential of NFTS as major global sports franchises, fashion brands and household name artists and musicians pile into the market.”

He continues: “As the survey reveals, high-net-worth investors want a slice of the action as they appreciate that there’s inherent value in digital representations of physical things people love.

“They also know that NFTs are making business models, especially in the creative, sports and entertainment sectors, more profitable and rewarding.

“But perhaps for the majority of investors, it’s about diversification.

“Proper diversification of a portfolio across asset class, sector, region, and currency is the best way an investor can position themselves to mitigate risks and to seize opportunities when they are presented.

“NFTs have a very low correlation to other assets, such as stocks and bonds, and can, therefore, lower your portfolio’s overall risk and volatility levels.”

In order to give investors access to this emerging digital asset class, earlier this year deVere launched its own NFTs platform, dV Gems.

At the launch, Nigel Green said: “Investors around the world are, understandably, eager to stake their claim in this new ecosystem.

“There’s enormous opportunity for people to be a part of the creation of the digital financial architecture – and to give our clients access to this, we’ve launched dV Gems.

“This platform will help clients and prospective clients spot the winners of the future.  We’ll guide you to understand the new market and why we believe NFTs have a massive part to play in the future of financial investing.”

The deVere CEO concludes: “The survey shows that more than half of high-net-worth investors are seeking to include NFTs into their investment mix this year.

“We expect this trend will continue to grow with increasing numbers of investors wanting to own digital assets that are immutable and exchangeable, offer a store of value and potentially a decent source of returns.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

 

The cryptocurrency market digest (BTC, ETH). Overview for 29.04.2022

Article By RoboForex.com

The BTC has been successfully recovering for a couple of days but bears struck back. The major cryptocurrency is mostly trading at $39,573.

The key intrigue is the US Fed’s May meeting. Market expectations imply a 50-point rate hike and they are already included in prices. However, after yesterday’s GDP Q1 2022 report, which showed -1.4% q/q after being +6.9% q/q the quarter before, expectations are now less optimistic. The report showed a decline in spending, which is the consequence of the stimulus package closure. People are spending money but there is no guarantee that they could continue doing it for a long time if the economic growth slows down. It means that the Fed might raise the benchmark interest rate but the regulator’s comments are expected to be cautious – it is not certain that the country’s economy is really stable.

NASDAQ and S&P 500 corelate with the BTC, that’s why this data is important for the major cryptocurrency either.

The current technical picture in the BTC shows the sideways channel between $33,500 and $48,500, which was formed early in the year. The closest target for bears remains at $37,000. To start stable growth, bulls must fix above $40,500.

ETH: flat and negative

The ETH is also consolidating – on Friday, the asset is balancing at $2,928. At the same time, the mid-term channel remains valid, and the downside target may be at $2,618 if the market continues to be bearish.

Otherside: prove your identity

The Otherside metaverse is ready to sell the virtual land property “under the hammer” but only to those, who pass the KYS verification. It’s rather unusual: it is believed that in virtual reality it’s possible to avoid revealing one’s true identity. Otherside is a metaverse project that was earlier focused on NFTs. To create its metaverse, Otherside raised $450 million of investments.

Goldman Sachs will study NFTs

Goldman Sachs said it didn’t exclude the possibility of tokenization of real assets. To do this, the company is planning to study the aspects of NFTs in the context of financial instruments. The bank is already working with cryptos: in 2021, Goldman Sachs started offering derivatives on the BTC to its clients, and this March it launched a crypto-based OTC instrument in cooperation with Galaxy Digital.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Which African and Latin American countries next to adopt Bitcoin as legal tender?

By George Prior

– Bitcoin will be adopted as legal tender in at least one more African and one Central or Latin American country in 2022, predicts the CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organisations.

The prediction from Nigel Green of deVere Group comes as the Central African Republic (CAR) on Wednesday adopted Bitcoin as an official currency, becoming the first country in Africa and only the second in the world to do so.

A bill governing the use of cryptocurrency was adopted unanimously by parliament last week, said a statement signed by Obed Namsio, chief of staff of President Faustin-Archange Touadera.

Speaking to Reuters, he said: “The president supports this bill because it will improve the conditions of Central African citizens. He added: “It’s a decisive step toward opening up new opportunities for our country.”

The CAR is one of six central African countries that share the CFA franc – a regional currency that is backed by France and pegged to the euro.

Last year, El Salvador became the first country in the world to adopt Bitcoin as legal tender, alongside the U.S. dollar.

Nigel Green comments: “We can expect an increasing number of countries to follow the example of El Salvador and now the Central African Republic and adopt Bitcoin as legal tender.

“In January I predicted that at least another three nations, besides El Salvador, would declare the world’s largest cryptocurrency legal tender in 2022. One now already has done so.

“I’m doubling down on this prediction. There’s a real sense that momentum is picking up.

“I expect Bitcoin will be adopted as legal tender in at least one more African and one Central or Latin American country before the end of the year.”

He continues: “In Africa, we believe Tanzania could be one of those countries. Its central bank said last year it was working on a presidential directive to prepare for cryptocurrencies.

“In Latin and Central America, it could potentially be Paraguay or Mexico next.

“A Paraguayan bill moving to regulate the trading and mining of Bitcoin and cryptocurrencies in the country passed the Senate in December, which is widely being regarded as the first step to making Bitcoin legal tender.

“Meanwhile I’m confident that a Bitcoin bill will be introduced to Mexico’s Congress this year. Indira Kempis – a high-profile Mexican senator – amongst others, are going on record as saying they want their country to follow El Salvador’s example.”

Low-income countries have long suffered because their currencies are weak and extremely vulnerable to market changes and that triggers rampant inflation.

This is why most developing countries become reliant upon major ‘first-world’ currencies, such as the U.S. dollar, to complete transactions.

However, reliance on another country’s currency also comes with its own set of, often very costly, problems. A stronger U.S. dollar or euro, for example, will weigh on emerging-market economic prospects, since developing countries have taken on so much dollar and euro-denominated debt in the past decades.”

The deVere boss goes on to add: “Adopting cryptocurrency currently is more attractive to those countries with a track record of financial instability.  By adopting cryptocurrency as legal tender these countries then immediately have a currency that isn’t influenced by market conditions within their own economy, nor directly from just one other country’s economy.”

The deVere CEO concludes: “In nations where the current national currencies don’t work as well as they should as a means of exchange, store of value and as a unit of account; where there is unpredictable inflation and an inefficient, out-dated and costly financial system; and where GDP is reliant upon remittances from overseas, Bitcoin is increasingly seen as the answer.

“First, El Salvador, now the Central African Republic – and this is just the beginning. The pace of national adoption is now going to pick up on a global level.”

About:

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.  It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.