Turner Wright


‘We can liquidate it any day of the week, any hour of the day,’ said Michael Saylor.

Michael Saylor has said that all $400 million of business intelligence firm MicroStrategy’s Bitcoin reserve holdings could be liquidated at any time.

In a Sept. 22 interview, Saylor told Bloomberg that although “volatility isn’t really a reason to sell,” he would not hesitate to dump MicroStrategy’s 38,250 Bitcoin (BTC) at a moment’s notice if an alternative asset’s yields were to jump.

Though MicroStrategy acquired Bitcoin in a carefully orchestrated series of 78,338 separate off-chain transactions, the CEO said offloading them would be much simpler.

“We can liquidate it any day of the week, any hour of the day,” Saylor said. “If I needed to liquidate $200 million of Bitcoin, I believe I could do it on a Saturday.”

There is, however, no reason to think that Saylor intends to sell the company’s newly acquired Bitcoin anytime soon, particularly with the CEO estimating that so-called asset inflation will surge to more than 20% a year, eroding purchasing power. “We feel pretty confident that Bitcoin is less risky than holding cash, less risky than holding gold,” he said.

MicroStrategy announced on Aug. 11 that it had purchased 21,454 BTC for $250 million, adopting the cryptocurrency as its primary reserve asset. Following the initial investment, the firm bought an additional 16,796 Bitcoin for $175 million.

Its total holdings are now valued at roughly $401.5 million with the crypto asset’s recent 6% drop, meaning a negative 3.2% return after six weeks. However, Bitcoin in general has been on the rise in 2020, up from the $7,000s in January to testing the $11,000 barrier in September.

Though initially claiming “Bitcoin’s days are numbered” in 2013, Saylor has since become a major advocate for crypto, even seemingly embracing a Bitcoin maximalist mindset in a Sept. 20 tweet by calling BTC one of the few “crypto-asset networks.” In his Bloomberg interview, he predicted that other companies would likely invest in Bitcoin within six months.

Author: Turner Wright

Source: Coin Telegraph: MicroStrategy CEO could ‘liquidate $200M in Bitcoin on a Saturday’

As Bitcoin reaches a new yearly high of $12,470, its market cap is now greater than Bank of America and New Zealand’s fiat currency.

As Bitcoin gets more support from first-time investors, its market capitalization has risen past Bank of America’s market valuation, putting the leading cryptocurrency within striking distance of PayPal’s.

According to AssetDash data at the time of writing, Bitcoin’s (BTC) current market cap sits just over $226 billion, having risen 3.2% in the last 24 hours. Meanwhile, Bank of America’s market cap has fallen more than 2% today to $224.4 billion. This bullish behavior from Bitcoin and slight drop in BoA means the analytics site ranks BTC as the 25th most valuable asset by market capitalization, just behind PayPal at $230 billion.

However, Bank of America was not the only fiat-based institution to fall behind the crypto asset today, which reached a yearly high of $12,470. FiatMarketCap, a site that tracks BTC’s rise against major fiat currencies, states that Bitcoin’s market cap now puts it ahead of that of the New Zealand dollar.

Bitcoin is now ahead of the site’s estimate for the total number of NZD in circulation at 346.4 billion, or roughly $227 billion. This would make Bitcoin the 34th most valuable of all fiat currencies.

Traditional investors choosing crypto

Bitcoin’s price has grown substantially in 2020 as the Federal Reserve has pushed many controversial measures to lessen the economic impact of the pandemic, prompting prominent figures in finance to consider crypto for the first time.

While billionaire Warren Buffett has made his feelings on cryptocurrencies well known, saying they “basically have no value,” others such as Morgan Creek Digital’s Jason Williams have predicted that Buffett’s multinational conglomerate holding company, Berkshire Hathaway, could invest in Bitcoin soon. Williams said that “young managers and analysts” at the firm would make the decision to buy BTC, even if Buffett were unaware of their actions.

Buffett isn’t the only billionaire to potentially consider crypto as a way to hedge his bets in this economy. Paul Tudor Jones, the founder of hedge fund Tudor Investment Corporation, is also still bullish on Bitcoin since revealing the crypto asset was part of his portfolio in May.

Another possible new face to the crypto world is Barstool Sports founder, Dave Portnoy, who recently spoke with Gemini exchange founders Tyler and Cameron Winklevoss. With the assistance of the twin brothers, Portnoy purchased $200,000 in Bitcoin and $50,000 in Chainlink (LINK), some of his first crypto purchases.

Author: Turner Wright

Source: Fool: Bitcoin Is Now Bigger than Bank of America and NZ Dollar by Market Cap

Researchers behind the June report from the Crypto Research Report used Bitcoin’s target addressable market to predict a rise to $397K.

A new report from a crypto research group suggests that the price of Bitcoin could approach $400,000 in the next 10 years, with altcoins following its bullish example.

In the June 2020 edition of the Crypto Research Report, researchers predicted the price of Bitcoin (BTC) and other altcoins — Ether (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and Stellar (XLM) — would get a huge surge before 2025, which may continue for at least five years.

“We believe that Bitcoin is still at the very start of its adoption curve,” the report states. “The price of $7,200 at the end of 2019 suggests that Bitcoin has penetrated less than 0.44% of its total addressable markets [worth $212 trillion]. If this penetration manages to reach 10%, its non-discounted utility price should reach nearly $400,000.”

That would mean a price increase of more than 4,000% for BTC by 2030, but ETH, LTC and BCH are also looking bullish in this scenario, with surges of roughly 1,600%, 5,000% and 5,400%, respectively. However, XLM would see the largest increase: more than 11,000% from $0.07 to $7.81.

‏‏The ‎Liechtenstein-based research group analyzed cryptocurrencies based on their target addressable market, or TAM, a metric used “to estimate a cryptoasset’s implied future price.” According to the report, TAMs for cryptocurrencies include remittance, tax evasion, offshore accounts, store of value, online transactions, micropayments, crypto trading, gaming, online gambling, consumer loans, reserve currency and others.

‏On-chain velocity decreasing, off-chain increasing

The report also observed on- and off-chain velocity metrics for altcoins and concluded that the “growth in the number of speculative transactions on exchanges is faster than growth of utility transactions to buy goods and services.”

“On-chain velocity” is a metric measured by transactions on a blockchain, while “off-chain velocity” is determined by trading activity on crypto exchanges. When analyzing Bitcoin, the researchers noted the price of the cryptocurrency and its activity on exchanges both increased at roughly the same time:

“If cryptocurrencies gain adoption for long-term hoarding purposes or for short-term spending on speculation or coffees, the price of crypto assets will go up,” the Crypto Research Report stated. “High velocity on-chain and low velocity off-chain suggests that crypto assets are becoming increasingly used for speculation and not for store of value.”

The September edition of the Crypto Research Report will be distributed on Cointelegraph.

Author: Turner Wright

Source: Coin Telegraph: Crypto Research Report Predicts $397K Bitcoin Price by 2030

Investor Jim Rogers thinks Bitcoin is still in a bubble and the cryptocurrency will eventually go to zero and disappear.

The investment guru who said Bitcoin was in a bubble as early as 2017 recently speculated that all cryptocurrencies will be gone eventually.

In an interview with the Asahi publication AERA dot on Friday, investor Jim Rogers said cryptocurrencies including Bitcoin (BTC) “will be in decline eventually and everything will go to zero.”

“Those who use cryptocurrency think they are smarter than their governments,” Rogers said to AERA dot. “In fact, I think they are correct. But their governments have something that crypto people don’t have. That is guns. The reason why I think cryptocurrency will be gone eventually is that it is not based on the armed force of governments’ power.”

There has been some unproven correlation between the rising and falling prices of cryptocurrencies and governments acting more authoritarian. When United States President Donald Trump ordered the forced dispersal of peaceful protesters near the White House grounds on June 1, the price of Bitcoin surged more than 8%.

Crypto is “just gambling”

Cointelegraph reported in November 2017 that Rogers said BTC “looks and smells” like a bubble. This was prior to the cryptocurrency reaching its all-time high price of over $20,000 in December 2017.

”Cryptocurrencies didn’t even exist a few years ago, but in the blink of an eye they became 100 and 1000 times more valuable. This is a clear bubble and I don’t know the right price. Virtual currency is not an investment target. It’s just gambling.”

Along with billionaires such as Warren Buffett and George Soros, Rogers is considered one of the largest investors in the world. His views in the AERA dot interview echo those of Buffett, who said “cryptocurrencies basically have no value” in February.

Author: Turner Wright

Source: Coin Telegraph: Investment Guru Jim Rogers: The Value of Bitcoin Will Drop to Zero

Crypto analyst Mati Greenspan noted the annual inflation rate of Bitcoin would fall from 3.65% to 1.8% once the halving happens in May.

Once the Bitcoin rewards halving goes through on May 12, the annual inflation rate of the cryptocurrency will be about half of the global average.

As crypto analyst Mati Greenspan noted on Twitter on April 26, the annual inflation of Bitcoin (BTC) will fall from 3.65% at the time of press to 1.8% once the halving happens in 15 days. The global annual inflation rate for 2019 was 3.41%, and is approximately 3.56% so far for 2020.

Though many have pointed out a low inflation rate would not necessarily cause new buyers to flock to BTC, the fact remains that once the halving happens in two weeks, the cryptocurrency will have a rate both lower than the global average and that of gold — approximately 2.5% at the time of press. Bitcoin has been more closely correlated with the asset following the March 13 downturn.

Hedge against inflation

As Cointelegraph has reported, Bitcoin could be used as a hedge against the type of inflation the United States might experience following the “unlimited quantitative easing” measures implemented by the government in response to the financial crisis. It already is in countries like Venezuela and Zimbabwe, whose economies are both experiencing hyperinflation.

If the world sees a surge in demand for BTC — with both a fixed supply of coins and low inflation rate following the halving — the asset might be looking more bullish in the near future.

Author: Turner Wright

Source: Coin Telegraph: BTC Annual Inflation Rate Almost 50% of World Average After Halving

Millennials and Generation Xers in the United States currently practicing sheltering in place and social distancing may find some solace that — in addition to saving lives — they may stand to inherit almost $70 trillion from Baby Boomers in the years to come.

Kraken Intelligence, the in-house research team at the crypto exchange of the same name, released a new report entitled “Inheriting USDs & Acquiring BTCs: How ‘The Great Wealth Transfer’ Will Fuel ‘The Great Bitcoin Adoption.’”

According to the report, if American Millennials were to invest at least five percent of their inherited wealth into Bitcoin (BTC), they could drive the price up to $350,000 in 2044. This would effectively give the generational group almost $70 trillion of value from a $971 billion investment.

A generational approach to investments

As Bitcoin has gained popularity, those in older generations with an affinity for traditional assets — including Warren Buffett — have often been unwilling to embrace cryptocurrency.

The Kraken report looks at data on this divide, expanding on cultural profiles of Generation Xers and Millennials and how their upbringing has affected their view of BTC and the crypto market in general.

“…older generations possessed a less favorable view of bitcoin than Millennials and Gen Xers…. 81% of US adults were familiar with at least one type of cryptocurrency, bitcoin being the most popular at 75%, approximately 55% of Millennials and 41% of Generation X familiar with at least one cryptocurrency voiced their belief that cryptocurrencies will become ‘very’ or ‘somewhat’ widely accepted for legal transactions before 2030.”

With many older Americans on the verge of retirement, the report suggests those in younger generations who are not only more familiar with but more accepting of Bitcoin will have more options investing in the future.

“…a disproportionate percentage of the Millennials and Gen X will continue to be the driving force of adoption [of cryptocurrency] for the foreseeable future. While this can be explained in part by the fact that both generations harness a greater technological competence than their elders, we should also consider that bitcoin’s current volatility is unsuitable for individuals nearing or in retirement.”

The Great Wealth Transfer

Baby Boomers in the United States currently control approximately 57% of the total wealth, $50 trillion of which will pass to Millennials and Gen Xers in the next two years. This redistribution is referred to as the “Great Wealth Transfer”.

If younger people were to use just 1% of this wealth to then invest in BTC, the price could rise to $70,000 — if not more — in 2044. This is based only on investors in the U.S., meaning the actual numbers could easily be higher.

Being one of the most crypto-friendly generations certainly has its perks.

Author: Turner Wright

Source: Coin Telegraph: Kraken Predicts Wealth Transfer will Cause BTC Rise to $350K by 2045

Today the cryptocurrency market saw a huge drop in the price of Bitcoin (BTC).

According to the data analytics provider Skew on Feb. 26, over $150 million worth of Bitcoin was liquidated on the trading exchange BitMEX, the most seen since the new year began. Millions of dollars of long and short positions caused the value of the cryptocurrency to fall to $8,580, a decrease of more than 6%.

Though the price of Bitcoin slightly rebounded to $8,813, this may be a difficult recovery for the cryptocurrency. The market value dropped nearly $300 in an hour on Feb. 16, bringing BTC well under $10,000.

Traders are already preparing for the possibility the cryptocurrency value may fall below $8,000. This could affect the impression of Bitcoin before the next halving event, scheduled for the week of May 18th.

However, some observers are more optimistic. Tom Lee, a co-founder of Fundstrat Global Advisors, predicted the Bitcoin price would rise to over $27,000 by this summer based on its 200-day moving average.

Global economy’s impact on cryptocurrency markets

Many crypto exchanges and blockchain technology companies have felt the impact of the potential global epidemic of COVID-19, also known as the coronavirus. Employees at Chinese companies responsible for mining have been forced to stay at home or trapped outside of cities as quarantines are enforced.

Whatever the reason for Bitcoin’s recent drop, this incident serves as a reminder that the cryptocurrency market can be every bit as fragile as traditional investments. The price of XRP crashed by nearly 60% on BitMEX on Feb. 15.

Author: Turner Wright

Source: Coin Telegraph: Price of Bitcoin Drops After $150 Million Liquidated on BitMEX

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