Crypto Guides, Knowledge & Insights

Former Bitcoin opponent says crypto is an effective hedge against currency debasement

George Ball, who serves as Chairman of Sanders Morris Harris, believes cryptocurrencies like Bitcoin are an “attractive” part of a well-balanced portfolio.　　Financial industry veteran George Ball believes investors would be prudent to allocate a “small part” of their portfolio to cryptocurrencies — marking a major departure from his previous stance towards digital assets.　　In an interview with Yahoo Finance, Ball described cryptocurrencies like Bitcoin (BTC) as an “attractive” option for investors looking to hedge against currency debasement. His comments came as Congressional lawmakers mulled a $1.9 trillion relief bill that would put provide up to $1,400 in direct stimulus payments to Americans impacted by Covid-19.　　“Ive never said this before, and Ive always been a blockchain, cryptocurrency and Bitcoin opponent. But if you look now, the government cannot stimulate markets forever, the liquidity flood will end,” Ball said.　　He continued:　　“With the cryptocurrencies, I think there is a fundamental hydra-headed shift that makes them attractive as a part, a small part, of almost any portfolio.”　　If higher inflation leads to currency debasement over the long term, Ball said, “then the cryptocurrencies have a great deal of allure.”　　Ball, who served as Chairman of Prudential Financial between 1982 and 1992, began to change his tune on Bitcoin

2021-03-05Deep Dive

BIS and SWIFT Intensify Race With Crypto For Cross-Border Payments

Major players of the traditional financial industry are looking for new ways how to keep their positions, threatened by the emerging cryptoasset and decentralized finance (DeFi) industries.　　The Bank for International Settlements Innovation Hub (BISIH) and the Society for Worldwide Interbank Financial Communication (SWIFT) have teamed up to host a hackathon to highlight the potential of the new ISO 20022 payments standard and application programming interfaces (APIs) to make cross-border payments “faster, cheaper and more transparent.”　　The participating teams are invited “to develop and showcase solutions that improve cross-border payments, using the ISO 20022 standard for payments messages and APIs,” the organizers said in a statement.　　“By 2025, SWIFTs global cross-border payments community will fully transition to ISO 20022, as part of an enhanced SWIFT platform,” according to the organizers. By then, “more than 90% of [High-Value Payments Systems] value worldwide will move on ISO 20022 rails.”　　Three winning teams will showcase their solutions at the forthcoming BIS Innovation Summit on March 23-25. The eight-day virtual hackathon that starts on March 11 invites the teams to apply ISO20022 and APIs to address opportunities in cross-border payments. Participants are allowed to adapt their existing product to make use of ISO 20022, or build and demonstrate

2021-03-05Deep Dive

Japan Edges Closer to its First IEO – an NFT Platform

Japan is about to welcome its first initial exchange offering (IEO) – and yes, you guessed it, as with almost everything else that is currently happening in the crypto world, its non-fungible token (NFT)-flavored.　　Per a press release from the crypto exchange Coincheck, which will host the IEO, and a joint release from the companies behind the launch, the project also has a manga bent.　　In a plan first formulated back in August last year, the IEO involves the launch of a platform named Hashpalette, a joint venture that involves the Tokyo Stock Exchange-listed firm Link-U, a software developer for manga-related apps, and HashPort, a business consulting provider that makes use of blockchain technology.　　Coincheck will issue and list the projects palette token (PLT), which is initially launching in testnet phase on its own Palette Chain network, but will have cross-chain operability on the Ethereum (ETH), Neo (NEO) and Ontology (ONT) protocols.　　The exchange said that it would “provide technical support” to the project and has also joined the Hashpalette consortium, which includes members such as crypto exchanges OKCoin Japan and Huobi, as well as IOST, the ICON Foundation, the crypto-keen internet marketing company and crypto exchange operator Ceres and the equally crypto-keen mobile

2021-03-05Deep Dive

Former Goldman CIO Urges Tesla to Get Out of Bitcoin as Stock Plunges 30 Percent

Former Goldman Sachs executive Gary Black, who has served as the chief investment officer of the banks asset management unit, says that Tesla could reignite its fading momentum by getting out of its Bitcoin position in a recent tweet.　　He is certain that the e-car manufacturer should use the cash from this sale to authorize a stock buyback.　　While claiming that such a decision would find overwhelming support among Teslas shareholders, Black concedes that the company is “highly unlikely” to do away with its cryptocurrency trove.　　Bitcoin has nothing to do with Teslas rout　　Teslas stock has plunged over 30 percent since its announced $1.5 billion purchase on Feb. 8.　　Image by tradingview.com　　However, its sell-off obviously has nothing to do with the cryptocurrency that has already made it more profits than a whole year of car sales. In fact, all top electric vehicle stocks are under severe pressure as of now.　　Stock market investors are currently concerned over rising bond yields that could threaten risk-on assets (particularly, such high-growth companies as Tesla).　　Bitcoin and the tech-heavy Nasdaq Composite dived sharply after Federal Reserve Chairman Jerome Powell signaled that the central bank wouldnt hike interest rates earlier today.　　The benchmark 10-year Treasury yield jumped above 1.5 percent earlier today

2021-03-05Deep Dive

Bitcoin Correlation With S&P 500 at 5-Month High: Is This Bearish for BTC?

Bitcoin and traditional financial markets have been highly correlated over the past couple of months. This was clearly displayed over the past couple of weeks where the cryptocurrency followed stocks closely.　　BTC and S&P 500 Correlation Surging　　Data from the cryptocurrency analytics resource skew shows that the realized correlation between Bitcoins price and the S&p 500 has surged to a 5-month high. The last time it was at these levels was back in November 2020.　　Bitcoin – S&P 500 Realized Correlation. Source: Skew　　There are plenty of reasons for which this might be the case, but perhaps the most obvious one is the involvement of institutional investors in the cryptocurrency field.　　It was reported on numerous occasions that institutional interest in the nascent asset class is surging as big-name companies flooded the market to get their slice of the pie. Grayscale, which is one of the main avenues for smart money to access exposure to BTCs price without having to worry about custody, saw its asset under management skyrocket over the past few months.　　In fact, as CryptoPotato reported earlier in February, the companys CEO, Michael Sonnenschein, said that institutional interest in Bitcoin is accelerating in 2021.　　In any case, there are a few implications of the

2021-03-05Deep Dive

How 8 billionaires, from Elon Musk to Warren Buffett, feel about bitcoin

Bitcoin is once again dominating financial discourse and making headlines as it sees tremendous gains.　　The cryptocurrency first went mainstream — and drew both attention and huge gains — in 2017. Just as quickly, it (and other cryptocurrencies) slumped the next year.　　But bitcoin has always had an elusive appeal; its creator, known as “Satoshi Nakamoto,” is still a mystery. Celebrities from Gwyneth Paltro to Snoop Dogg hopped on the cryptocurrency train.　　And now, with bitcoins latest rally of 300% growth in 2020 and some experts forecasting an even more successful 2021, some skeptics are changing their minds.　　Millennials are getting on board, and some investors see it is a strong alternative that doesnt feel the effects of pandemic-induced inflation.　　While the cryptocurrency is still volatile, it has many strong ultrawealthy fans. But it has also drawn critics and doubters.　　Heres how 8 billionaires feel about bitcoin.　　 Elon Musk has expressed mixed feelings.　　Musk has tweeted some contradictory things. Photo: Amy E. Price/Contributor/Getty Images　　He recently tweeted a meme that suggested being tempted by bitcoin. Crypotcurrency advocate and entrepreneur Michael Saylor replied and told Musk he should consider converting Teslas balance sheet from dollars to bitcoin; Musk then inquired if transactions that size were even possible.　　But Musk didnt

2021-03-05Deep Dive

DeFi Taxes 2021: How to Pay Tax on Borrowing, Lending, Yield Farming, and Liquidity Pool Funds

Key Takeaways　　Capital gains tax and income tax apply to DeFi earnings depending on the activities and platforms in question.　　Liquidity pool tokens are typically subject to capital gains, while native tokens are more commonly subject to ordinary income tax.　　You can take out a crypto loan to pay taxes without triggering another tax event by selling crypto -- just be careful of margin calls.　　Taxes are one of the more opaque issues in crypto, with many investors still unsure how to calculate taxes on earnings or whether they owe taxes at all. The DeFi space, in particular, has many moving parts when it comes to taxation and asset classes.　　Crypto Briefing has put together a brief guide that lays out how users DeFi income might be taxed, as well as ways they can save money come tax season.　　DeFi Taxes Ordinary Income vs. Capital Gains　　Users will need to pay either capital gains tax or ordinary income tax on any profits from loaning crypto on DeFi platforms. Check the DeFi platforms documentation to see whether capital gains or income tax applies.　　Platforms paying crypto directly to users wallet balance are generating ordinary income for their users. If users loan BTC and receive BTC in return, users

2021-03-05Deep Dive

Jim Rogers Regrets Not Buying Bitcoin but Warns Governments May Outlaw Cryptocurrencies

Renowned investor Jim Rogers, who co-founded the Quantum Fund with billionaire investor George Soros, now regrets not buying bitcoin. However, he is still worried that governments can outlaw bitcoin if it becomes a viable currency.　　Jim Rogers Bitcoin Regret　　Jim Rogers said in an interview with Real Vision this week that he wished he had bought bitcoin years ago. Rogers is George Soros former business partner and the co-founder of the Quantum Fund and Soros Fund Management.　　He believes that bonds are in a bubble and expects the prices of gold and silver to skyrocket. As for bitcoin, he said:　　 “I wish I had bought bitcoin. I will point out that many cryptocurrencies have already disappeared and gone to zero. We all hear about bitcoin. We don‘t hear about the dozens that don’t exist anymore.”　　The price of bitcoin has surged about 54% this year, 612% since the beginning of last year, and 1,152% since the start of 2019. Surpassing previous all-time highs multiple times this year, the BTC price is currently $46,577 at the time of writing with a market capitalization of $871 billion, based on data from markets.Bitcoin.com.　　Jim Rogers Warns Government May Outlaw Cryptocurrencies　　However, Rogers is still in the mindset that governments

2021-03-05Deep Dive

Ripple Pilots Private Ledger for Central Bank Digital Currencies

The CBDC platform will be powered by the same blockchain technology as Ripples public XRP Ledger.　　Ripple is piloting a private ledger to provide a platform for the issuance of central bank digital currencies (CBDCs).　　The CBDC Private Ledger will be powered by the same blockchain technology as Ripples public XRP Ledger (XRPL).　　This means the ledger will be built both for payments and issuing digital currencies, according to a blog post Wednesday.　　The CBDC ledger will aim to move money at low cost and with the speed and volume demanded by central banks, while also meeting their standards of security.　　Ripple will also need to ensure CBDC products built with XRPL will be interoperable with existing financial infrastructure.　　“The core technology behind this new CBDC Private Ledger has been running for more than 8 years without incident and with billions of dollars of value transacted everyday,” according to Ripples post.　　Around 80% of central banks are looking at launching a CBDC, per the post, with the Bahamas Sand Dollar being the first to launch and Chinas digital yuan thought to be nearing fruition.

2021-03-05Deep Dive

Top 5 DeFi Trends To Keep An Eye On In 2021

As a matter of reality, technological developments are taking us in direction of an unpredictable way forward for social upheaval. Particularly the pandemic 12 months gives a variety of alternatives to provide you with progressive tech options. New tech has fallen into sure classes. Trendy technology is liable to digital currencies reminiscent of ripples XRP, bitcoin, ethereum, stablecoin. 2020 was certainly the 12 months of decentralized finance (DeFi), particularly for the blockchain sector.　　Blockchain caught the bug of DeFi whereas the remainder of the globe was gripping on pandemic concern. Crypto fanatics had been livid about “FOMO-ing” on mining liquidity, borrowing stablecoins, and lending protocols. For brief, DeFi dominated the dialog throughout the biggest a part of the 12 months and the outstanding emergence was noticed in non-traditional monetary establishments throughout COVID-19. Complete Quantity Locked (TVL) was gathering momentum at a breakneck tempo in February and handed the determine of $1 billion. This determine represents the greenback worth of belongings closed in DeFi treaties and ended the monetary 12 months above $13 billion.　　Some largest developments of 2020 estimated what developments may show to be influential for blockchain in 2021. Lets have a deep perception into some most evolving developments within the

2021-03-05Deep Dive

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