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Bitcoin is a Better Inflation Hedge Than Gold: deVere CEO

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The Bitcoin rally stalled on heightening global worries about inflation, but, says the CEO of one of the world’s leading financial advisory, asset management and fintech firms, it remains “a better shield than gold.”

The largest cryptocurrency by market capitalization ended three consecutive days of healthy gains, before stabilizing, after U.S. Federal Reserve Chair Jerome Powell said on Tuesday it may be time to stop using the term “transitory” as a way of describing the current wave of inflation.

Meanwhile, inflation in Europe has ballooned to the highest on record.

Mr Green says: “Bitcoin is perceived by many investors as a hedge against inflation due largely to its strict supply controls.

“As such, it would be assumed that its price would automatically rise when the U.S. central bank suggests that it would consider speeding up the reduction of its asset purchase policies that have boosted the stock markets.

“But for other investors, including some major institutional investors who have piled into Bitcoin in recent months, the cryptocurrency is still perceived as a risky asset.

“So when they sell-off riskier assets, despite the longer-term outlook and based on short-term hawkish policies from the world’s de facto central bank, Bitcoin, like equities, also becomes vulnerable.”

A long-term, high-profile crypto advocate, Mr Green remains confident that “Bitcoin is today a greater inflation shield than gold”, which has long been the standard go-to inflation hedge.

He says: “Gold has always been regarded as the ultimate inflation hedge – but the world is a much different place now. Our lives and the global economy is increasingly run on tech and digital solutions and this megatrend is only set to become more dominant.

“Gold is likely to be dethroned within a generation as millennials and younger investors, who are so-called ‘digital natives’, are going to be more comfortable with Bitcoin as a hedge than a physical metal.”

The deVere CEO goes on to say: “Bitcoin is often referred to as ‘digital gold’ because like the precious metal it is a medium of exchange, a unit of account, non-sovereign, decentralized, scarce, and a store of value.

“Yet, the cryptocurrency, Bitcoin is superior to gold as a medium of exchange or form of payment.

“Unlike gold, it is a fixed unit of account and easily divisible and transportable. Gold is not easily immediately divisible, and there are potential issues with purity and verification. Whereas Bitcoin is easily traced on blockchain technology and this is going to be a considerable advantage, especially in cross-border transactions.”

Mr Green concludes: “Gold and Bitcoin can, and perhaps should, complement each other in a portfolio.

“But as the world continues to pick up momentum in its shift towards tech, and as millennials become a more dominant part of the world economy, we should expect Bitcoin to also take an increasingly influential role in financial markets, including in regards to being an inflation hedge.”

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Merchant Use of Bitcoin As Payment Method Dropped by 27 Percent in 2021 – Bitpay

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Bitpay one of the leading crypto payment service provider reported a decline in Bitcoin’s dominance in crypto payment methods in 2021. According to Bitpay, merchant use of Bitcoin has dropped by 27 percent from 92 percent recorded in 2020 to about 65 percent in 2021.

Bitpay revealed that merchants are increasing the use of other cryptocurrencies to process their payments on its platform. Ethereum now accounted for 15 percent of the total transactions, stablecoins accounted for 13 percent while two leading meme coins, Dogecoin and Shiba Inu coin with Litecoin accounted for 3 percent of total transactions in 2021.

The decline in the use of Bitcoin was partly due to the rise and acceptance of stablecoins for cross-border payment, likewise, unlike bitcoin where the price is not stable, the value of stablecoins is steady irrespective of the market trend.

Despite the volatility in the crypto market in the last quarter of 2021, Bitcoin price rose by 57.64 percent from $29,374.15 it traded on 1st of January, 2021 to $46,306.45 it closed on 31st of December 2021. However, the volatility did not deter investors from holding on to the Bitcoin in their wallets.

BitPay founded in 2011, processes an average of 66,000 transactions per month and $1 billion in annual transactions with over 80 employees. Chief Executive Officer Stephen Pair said the company’s overall 2021 payment volumes rose 57 percent year over year.

Pair Said, “our business ebbs and flows to some degree with the price, when the price goes down, people tend to spend less, we have not experienced as much of a decline in volume with this recent pullback. It’s probably just a reflection of more and more companies that need to use this as a tool to conduct payments.

As merchants begin to accept crypto payments, more companies are also stepping in, indicating the growing adoption of crypto in the payment industry. Last week, Investors King reported that PayPal was planning to launch its own stablecoin called PayPal Coin.

Pair said, “PayPal getting into this space has been great for our business because it causes companies to start asking the question of should they accept crypto payments”.

Bitcoin is 37.87 percent down from its All-Time High of $68,789.63 traded on the 10th of November 2021. At press time Bitcoin is down by 1.25 percent trading at $42,566.12

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The Fed’s Failure on Inflation is Bullish for Bitcoin: Nigel Green

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The U.S. Federal Reserve’s failure on inflation will help drive the price of Bitcoin skywards, predicts the CEO of one of the world’s largest independent financial advisory, asset management and fintech organizations.

The assessment from deVere Group’s Nigel Green, a high-profile crypto advocate, comes as the U.S. consumer price index jumped 7% in 2021, the largest 12-month gain since June 1982. The widely followed inflation index increased 0.5% from November, exceeding forecasts.

He notes: “Last year, the Federal Reserve said that inflation in 2021 would be at 1.8%.

“However, U.S. prices soared last year by the highest level in nearly four decades, draining the purchasing power of American households.

“Inflation is everywhere, and it could be around for longer than anyone would like.

“So, why didn’t the Fed – the central bank of the world’s largest economy – not see what was coming?

“Could they seriously not see how supply chain bottlenecks and a shortage of qualified workers would drive up prices and erode people’s and firms’ spending power?”

He continues: “Surely, this must be the biggest miscalculation in the history of the U.S. central bank.

“It shows how the traditional fiat system, of which it is a key component as it is charged with maintaining price stability, is dangerously out of step with reality.

“I believe this will fuel the demand – and therefore the price of Bitcoin and other cryptocurrencies.”

Why is this so?

With Bitcoin’s fixed supply of 21 million, and institutional investors increasingly moving off the sidelines and into the crypto market, it’s going to continue to outpace gold as a safe haven for capital, says Nigel Green.

“Money flows to where it gets its best treatment, and with treasuries yielding negative in real terms, moving capital into the Fed is a clear liability for investors.

“In addition, in this current inflationary period, Bitcoin has outperformed gold which, until now, has always been almost universally hailed as the ultimate inflation hedge.”

Bitcoin is often referred to as ‘digital gold’ because like the precious metal it is a medium of exchange, a unit of account, non-sovereign, decentralized, scarce, and a store of value.

“Yet, the cryptocurrency, Bitcoin is superior to gold as a medium of exchange or form of payment,” says Nigel Green.

“Unlike gold, it is a fixed unit of account and easily divisible and transportable. Gold is not easily immediately divisible, and there are potential issues with purity and verification. Whereas Bitcoin is easily traced on blockchain technology and this is going to be a considerable advantage, especially in cross-border transactions.”

He concludes: “The Fed has lost control on prices and investors are looking for safe havens to protect their purchasing power.

“Bitcoin is primed to provide the inflation shield so many are now seeking, especially as our lives and the global economy is increasingly run on tech and digital solutions, and this megatrend is only set to become more dominant moving forward.”

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New Analysis from AI Company Identifies Daily Bitcoin Volatility Peaks

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Bitcoin volatility peaks at 3pm before the New York Stock Exchange closes as well as spiking at 3am Eastern Standard Time, according to new analysis from GNY, the leading blockchain-based machine learning business.

Its analysis of trading data throughout 2021 found 3pm in the US – or 8pm in the UK – is the time to avoid for Bitcoin traders wanting to minimize volatility while 3am in the US – 1.30pm in India – is also a time for high volatility.

GNY’s analysis of 25 input data features found that trading data – whether volumes are high or low on average or whether Bitcoin prices are seeing major positive or negative moves – is the only mathematical relationship with volatility.

Factors such as LIBOR, gold prices, the Federal Funds rate or US inflation have no mathematical relationship with Bitcoin volatility.

GNY analysis reveals daily average Bitcoin volatility was 4.1% last year with daily volatility ranging between 4% and 10% when trading volume is above average and between 2% and 5% when volumes are below average.

GNY’s analysis of the most volatile days for Bitcoin trading in 2021 found August 2nd was the most volatile day with average daily volatility of 18.79% followed by May 19th with 13.83% and January 21st with 13.28%.

Its own research (2) shows one in five (22%) Bitcoin traders who trade at least $1,000 a month in the cryptocurrency expect the level of volatility to increase dramatically in 2022, and further 57% say it will increase slightly. Only 18% expect it to fall or stay the same.

Cosmas Wong, CEO GNY said: “Our mission at GNY is to bring machine learning tools to the crypto community to facilitate smarter business and trading decisions. Predicting Bitcoin volatility is the most impactful metric in blockchain right now.

“Our research has helped us understand the time based fluctuations in price and volume, as well as the patterns generated by market activity. Our nuanced machine learning models allow us to create a superior BTC prediction model.”

GNY recently launched the BTC Range Report, providing some of the most accurate forecasts around Bitcoin volatility of any platform or service available today. Extensive testing of BTC Range Report has delivered a mean absolute percentage error (MAPE) of between 3% and 7% making it one of the most powerful BTC prediction tools in the market. The average of the majority of competitor BTC prediction tools tested by GNY was 10%, but it was as high as 17% for some platforms.

GNY believes that today’s altcoin traders will be tomorrow’s bitcoin traders. So to launch the BTC Range Report GNY entered into an exclusive partnership with CoinSniper which is widely regarded as the #1  source for the best new cryptocurrency projects. Subscribers to the CoinSniper GNY newsletter providers traders with exclusive content and previews to measure the Range Report’s accuracy for themselves.

The BTC Range Report is available every Tuesday at 9am EST and spans a seven-day period. For the price of just $10, it can be purchased with ETH or GNY tokens, and access is provided directly through the user’s Metamask wallet. Version 1 of the GNY BTC Range Report offers:

  • GNY’s daily projected volatility range for BTC as a graph and a table
  • a forecast of which day will hold the weekly high and the weekly low
  • forecast of daily volumes
  • historical daily high and low prediction graph for the last two weeks VS BTC Actuals
  • mean absolute percentage error (MAPE) for GNY historical daily high and low predictions VS BTC Actuals for the previous two weeks

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