The state of the world economy has pushed institutional investors to look for alternative methods of investment. And more and more often, Bitcoin ( BTC ) is becoming such a tool. Since August, business intelligence firm MicroStrategy has purchased BTC worth a total of $425 million . At the same time, digital asset manager Grayscale Investments raised record amounts of money in both the first and second quarters of this year ($1.4 billion in total). But should we celebrate institutional investors as the “saviors” of crypto? Or, on the contrary, are they the ones that will lead to the digital asset industry’s downfall? Related: Why institutions suddenly give a damn about BitcoinBefore I answer the above questions, let’s look at the main reason that institutions are eyeing crypto. There is a worldwide crisis when it comes to generating returns from the traditional market’s safe assets. Low-risk instruments, such as savings accounts and high-quality bonds like U. S. Treasurys, have been providing minimal yields in recent years. The returns are so low for these assets that inflation often eats away the profits and leaves investors with a negative return on investment , or ROI. Furthermore, some nations such as Denmark, Switzerland and Japan use negative interest rates to boost the economy. While it’s a good way to fight deflation, negative and low interest rates discourage people from investing in safe assets. However, this doesn’t mean that traditional instruments are failing investors. Instead, we are going through a phase in the world economy’s development where low-risk investments don’t yet provide decent returns to investors. With that said, this will drive interest in cryptocurrencies until the global economy advances to a phase where traditional assets start performing well again. Compared with the general market, the digital asset industry has been developing at a much faster pace, with multiple reasons behind this phenomenon. The regulatory scrutiny surrounding the market is limited, and crypto projects have a different mindset. Also, the current technology level allows and encourages businesses in the space to innovate. As a result, crypto has become a maturing industry that has a history of providing excellent returns to investors. Furthermore, even in the middle of a global economic crisis, Bitcoin’s volatility is at record-low levels . And the less volatile an asset is, the lower the risks are for investors. While the above makes crypto attractive for individuals, the current digital asset market offers institutional investors a way to meet their investors’ ROI expectations. The stakes are high, and they are looking into Bitcoin for a very good reason. People in crypto often think that institutional investors will be the main facilitators of the next Bitcoin boom. However, that’s not exactly the case here. And the opposite — that institutions will corrupt the crypto market with their whale-sized investments — is not true either. Instead of “destroying” the crypto market or launching Bitcoin “to the moon,” institutional investors help the crypto market mature, making it more efficient. For example, when BTC is underpriced, they use this inefficiency to drive it up, and they bring it down when the digital asset is overpriced. Because institutional investors are seasoned investors with vast money-market experience, they follow the above practices to limit their risks and maximize their returns. This dampens the volatility and increases the market’s liquidity. However, factors like Bitcoin’s adoption rate and the current macroeconomic situation have a more substantial impact on the underlying long-term BTC price movement than do institutional investors. On the flip side, a more mature market also means the potential gains from crypto investments will also decrease. But this won’t lead to the digital asset industry’s downfall. Instead, it’s a sign of the natural development that all new markets go through as they enter into the mass adoption phase, which will result in a more mature, more stable, less volatile cryptocurrency sector. Related: Will PayPal’s crypto integration bring crypto to the masses? Experts answerWith that said, taking strong positions in crypto, like what MicroStrategy did recently, provides a buying signal to other institutional investors that will see cryptocurrency as a serious asset class. It’s important to note that MicroStrategy’s case with Bitcoin bears great significance, considering that the firm is a publicly traded company listed on the Nasdaq stock exchange. Therefore, it has strict requirements for financial diligence to its shareholders. By acquiring substantial amounts of BTC, MicroStrategy believes firmly that this move won’t have adverse effects on its share price or corporate social responsibility. If a private business — no matter how large — had taken the same position in crypto, it wouldn’t be a major news story like MicroStrategy’s. In 2017, we di
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Preethi Kasireddy talks about Childhood, Art of Learning, CryptoCurrencies | Born To Grow Podcast
00:00 Intro Music
00:37 How was Preethi as a kid?
1:54 Preethi’s time spent in India
02:34 Preethi’s take on female minority in the Tech & Programming field
03:58 Your parents want you to play safe
04:53 Why is Preethi such a big fan of learning?
06:30 Preethi is more of generalist
08:43 How Preethi explored her interest for writing?
12:44 Preethi’s Learning Curve in the field of coding
15:35 Preethi’s advice to people who aren’t able to learn
17:53 On shutting down Trustory
20:59 Three Important lessons for the budding entrepreneurs/future founders
24:42 Preethi’s email course on Cryptocurrency. Her plans on writing a book on cryptocurrency and the video course on crypto
26:47 Can people from the non-technical background learn cryptocurrencies easily?
28:52 If Preethi were to convince Warren Buffett into crypto investing, what would she say to him?
31:33 Given the highly volatile nature of bitcoin and other cryptos, would you suggest going long on bitcoin for a moderate risk taker?
32:40 Future of Cryptocurrency in India? How long before Bitcoin is accepted as payment method in India?
37:35 Preethi’s Discord Community & Inner Circle for Women
40:37 Why does Preethi keep losing her airpods?
42:04 Outro music. Isn’t it awesome?
Connect with Pooja Sharma on social media
In a recent interview with Cointelegraph, Binance CEO Changpeng Zhao, aka CZ, has lent his expertise on how to set up a global cryptocurrency exchange and outlined four key criteria to follow in order to ensure success. CZ stressed that having a “global mindset” is a must, as cryptocurrency exchanges who claim to be “global” often tend to focus on just one particular region, thereby greatly limiting their international presence.“First, I’d say you need a global mindset. Many crypto exchanges claim they are a global exchange, but if you look at them closely, they are focused in one region, usually where the majority of their team is. Their products are only available in one or two languages, their customer service is only available in one or two languages, and they only organize offline events in their own region. As a result, most of their users are from that region, too.”Achieving “a true global mindset” is a difficult task in itself, CZ continued:“If the founder(s) have not lived and worked in multiple places in the world, it’s very hard for them to have a global view. If you have a global mindset, the rest are execution. Execution is also super hard.”Additionally, Zhao laid out four key elements for crypto businesses to focus on in striving to become global. The first is having a sustainable business model. “Business owners need to evaluate whether they have a successful business model with a clear profitability path before growing its size rapidly or blitzscaling to the globe,” CZ clarified. The other major factor is knowing audiences’ preferences, which can vary greatly depending on the region, and the ability to tailor services in accordance:“When a company is serving multiple markets, it has to make sure the product offering is tailored to the local markets and keep on providing value or incentives for users to stay with the business. It’s the same for crypto exchange. We should adapt to changes quickly, keep on building and bringing forward innovative products to suit the various and increased demands of local markets.”Being in touch with the regulators and acknowledging the responsibility before the customers are also key, according to CZ.“A global crypto exchange should work closely with local governments or regulatory agencies so that the local users can trade on the platform without concerns. A centralized exchange provides custodial services to a large amount of funds and hosts the personal data of users, so it should continue to optimize its tech and security systems to keep user funds and data safe.”Finally, CZ noted that the cryptocurrency exchange industry is still in its infancy, especially when compared to traditional financial markets. “There is roughly one crypto user out of 1,000 people,” he observed, adding that the adoption rate is still very low. Thereby, according to CZ, leading industry players “should take the responsibility of building the industry, raising the industry standards, driving massive adoption of cryptocurrencies and growing the crypto industry on the whole”. CZ elaborated that it’s not a universal blueprint for crypto exchanges aiming for global presence, as new challenges tend to arise when the business grows larger. In his view, the ability “to constantly adapt to changes, put users first and ensure profitability” will help businesses to flourish in the long term. Binance has established itself as the world’s largest cryptocurrency exchange by trade volume, although some competitors would find that debatable . Originally founded in China prior to the 2017 blanket ban on crypto, Binance promptly moved overseas and is currently headquartered in the Cayman Islands and Seychelles. Its team operates in over 40 countries and develops products available in more than 20 languages, which makes it one of the most global businesses in the industry. It claims to serve over 15 million customers. In May, CZ described the African continent as an untapped environment for exchanges.
All data is taken from the source: https://cointelegraph.com/
Article Link: https://cointelegraph.com/news/cz-says-crypto-exchanges-need-global-mindset-to-grow-internationally
#global #veracrypt #coindealers #cryptocurrencynews #cryptocurrencyexchange #cryptonews #cryptoexchange
CZ Says Crypto Exchanges Need ‘Global Mindset’ to Grow Internationally: https://www.youtube.com/watch?v=XyIpnsdHp9E
Happy to share recent collaboration with the team at Dharma Labs – a product with a bold aesthetic and quite a lot of traction in the field of crypto right now.
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Bitcoin (BTC) has found some stability in the time followings its capitulatory selloff seen over the past few days, with bulls stepping up and ardently defending against a drop below $8,800 – which appears to have become a near-term support level for the cryptocurrency. Analysts are now noting that the ongoing pullback has led BTC’s price right to where it is “supposed to be,” with it still maintaining above a key growth curve that has been guiding its decade long uptrend. This comes as investors begin growing highly fearful, which is typically a bullish sign that can be used as a counter-indicator. At the time of writing, Bitcoin is trading down just over 1% at its current price of $8,880, marking a notable decline from daily highs of over $9,300. It is important to note that BTC has been able to find solid support within the mid-$8,000 region, with the cryptocurrency’s bulls posting a strong defense of this level during the intense overnight selloff. In the near-term, the crypto still remains in precarious territory despite its stability, with its ongoing downtrend doing significant damage to the highly bullish market structure that had been formed throughout the first two months of 2020. This recent movement has also done damage to the euphoria of many investors, with the crypto’s “fear and greed index” showing that investors are growing increasingly fearful. Mr. Anderson, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, saying:It is important to keep in mind that Bitcoin is still trading significantly above a critical growth curve, with its current trading phase marking a bout of consolidation before it is able to begin climbing higher. Dave the Wave, another popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, explaining that it should “allay anxieties.”If Bitcoin continues inching lower in the near-term, it is probable that investors’ fear will continue to mount, potentially acting as a bullish counter-indicator.
All data is taken from the source: https://www.newsbtc.com/
Article Link: https://www.newsbtc.com/2020/02/27/bitcoin-is-right-where-its-supposed-to-be-as-investors-grow-fearful/
#cryptocurrency #cryptonomicon #bitcoinunconfirmedtransactions #cryptocurrencynews #cryptocurrencyexchange #cryptonews #cryptoexchange
Bitcoin is “Right Where It’s Supposed to Be” as Investors Grow Fearful: https://www.youtube.com/watch?v=yuIYMGwOh_k
Ed Sappin gives insight on how market turmoil and China are helping Bitcoin and the Blockchain grow.
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