Day: August 9, 2020

Global Stocks in ‘Bubble Territory’ — But Bitcoin Traders Aren’t Fazed

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According to the Buffett Indicator, the global stock market has entered a “bubble territory,” says Welt market analyst Holger Zschaepitz on Aug. 9. The recent correlation between Bitcoin and stocks could mean BTC is also at risk of a pullback. The global stock market enters bubble territory. Source: Holger Zschaepitz, Bloomberg Stocks have continuously rallied in recent weeks, buoyed by the surging appetite for risk-on assets. In the past month, the Dow Jones Industrial Average (DJIA) rose from 25,706 points to 27,433, by 6.7%. Why stocks are showing hints of…

A General Strategy on How to Select a Crypto Fund, Part 2

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With about 800 crypto funds relying on a new asset class, which has its own properties, it is essential to assess them through an appropriate framework. We provide a basic framework of useful metrics to assess the true risk of a crypto fund as a quantitative screening tool. Short-listed funds can then be assessed in more detail through a classic due diligence process. Assessing the return/risk profile of a directional trading crypto fund Assessing the expected return of a directional fund Investors in a directional fund should first have a…

Evan Shapiro: Bitcoin’s Stolen Revolution

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Evan Shapiro is CEO and co-founder of O(1) Labs, the team behind Coda Protocol, a lightweight chain that affords all participants fully P2P, permissionless access from any device. A hint: It’s not you. And it’s a far cry from the decentralized utopia many claim it to be. Systems of power are rapidly asserting control over Bitcoin. And their incentives are not your incentives. As an industry, we’re at a critical juncture, and we have to choose. We either demand that the properties of user ownership and censorship resistance pioneered by…

Warren Buffett Buys Berkshire Hathaway Stock Worth $5.1 Billion

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Berkshire Hataway to writedown a whopping $9.8 billion as losses from its aircraft industrial manufacturing company Precision Castparts. However, its biggest common stock holding in Apple Inc has helped the company register an 87% jump in net revenues during Q2 2020. On Saturday, August 8, Warren Buffett-owned Berkshire Hathaway (NYSE: BRK.A) announced its second-quarter earnings, as the company faces a major impact with the Coronavirus pandemic. While the company made only one big investment in Dominion Energy, Buffett has been watching the situation carefully. Rather than putting his money in…

Here’s Why Ethereum Holding Above $400 Could Unlock a Massive Surge

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For the umpteenth time in the past week, Ethereum was rejected at the critical $400 resistance during Saturday’s rally. The cryptocurrency failed to decisively hold above that level despite the rallying in the value of altcoins. As of the time of this article’s writing, ETH trades for $395, just shy of the aforementioned resistance. Analysts say that Ethereum holding above $400 on a macro basis could be the precursor to an even greater surge in the weeks and months ahead. Related Reading: Crypto Tidbits: Bitcoin Explodes Past $11k, Ethereum 2.0 Nears,…

Cryptocurrency Mining Profitability in 2020: Is It Possible?

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Miner profitability metrics are based on a handful of factors regulating difficulty and emission, which are hard-coded into the blockchain’s attributes, making it predictable to work with. While predictability does not always immediately translate into profitability, it gives a blockchain certain parameters to rely on when predicting when mining cryptocurrency will become profitable, at which price level, and at which difficulty level during the emission cycle. Some cryptocurrencies, such as Bitcoin (BTC), go through emission cycles with events such as the halving. In Bitcoin’s case, halvings occur once every 210,000…

Brian Tockey: Bitcoin, Regression Theorem, and Defining Money

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It’s relatively common to see the regression theorem being mentioned in economic discussion, especially when it comes to whether or not something is money. This is surprising because the regression theorem has absolutely nothing to do with money or the definition of money. Regression theorem only involves prices and is really more a direct restatement of common sense. To understand the regression theorem, we must understand the Austrian description of the establishment of prices – where does price come from? How do we know how much to sell good X…

Yield Farming Fuels Buzz Around DeFi, but Fundamentals Are Lagging

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The hype surrounding decentralized finance is sometimes credited with triggering a wider market rally in July, as new protocols began releasing tokens that were immediately posting gains of many times their initial value. Despite undeniable price growth, however, it is not immediately clear if the sector as a whole has grown, as reliable metrics to measure the fundamental performance of DeFi protocols are incredibly hard to come by.  The projects lend themselves to fairly rigorous analysis methods, as they will often have well-defined revenues and expenses. But the rise of…

XRP Price Could Soon Rally 30% Towards $0.40 After Parabolic Surge

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Over the past 24 hours, many facets of the altcoin market have ripped higher as Bitcoin, Ethereum, and XRP have entered a short-term consolidation pattern. As reported by NewsBTC, Chainlink (LINK) posted a 40% one-day performance at one point in the past 24 hours. Countless other altcoins, even other large-caps, posted similarly as impressive performances. XRP, as aforementioned, did not participate in this rally. According to Coin Market Cap data, the third-largest cryptocurrency has gained a mere 0.40%, underperforming Bitcoin’s 1.2% performance. Analysts think the asset will soon rip higher,…

South Korea’s Largest Bank Unveils Bitcoin Custody Services

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KB Kookmin Bank (KB), the largest commercial bank in South Korea, has agreed on a deal with blockchain venture fund Hashed and crypto exchange Cumberland Korea to offer bitcoin custody services. In January, the government-owned bank filed its trademark application for digital assets custody with the Korean Intellectual Property Office. The trademark is called Kbdac. It covers more than 20 crypto-related areas. According to a statement on August 7, KB said it predicts that the crypto industry will evolve beyond virtual currencies to include other traditional assets such as real…