Cryptocurrencies Have Become Mainstream and Are Here to Stay, Bitcoin Reminiscent of Gold Rush – Featured Bitcoin News

Cryptocurrencies Have Become Mainstream and Are Here to Stay, Bitcoin Reminiscent of Gold Rush – Featured Bitcoin News

S&P Global says cryptocurrencies have become mainstream and appear to be here to stay, as more companies are offering crypto services and adoption is growing worldwide. Meanwhile, an S&P analyst believes that bitcoin’s rise is reminiscent of the U.S. gold rush. S&P Global Says Bitcoin Has Become Mainstream Financial information… ← Previous post With digital-market traders taking GameStop’s stock gyrations as a moment for self-reflection, CoinDesk’s Market Daily is back with the latest news roundup.

S&P Global says cryptocurrencies have become mainstream and appear to be here to stay, as more companies are offering crypto services and adoption is growing worldwide. Meanwhile, an S&P analyst believes that bitcoin’s rise is reminiscent of the U.S. gold rush.

Financial information and analytics firm S&P Global released a special report on the current condition of cryptocurrencies last week. It states:

Once considered an alternative trend, cryptocurrencies have become mainstream and appear here to stay.

The report references a number of factors, such as legacy banks taking “a closer look at the asset class that could be integrated into the products and services offering” and companies like Paypal beginning to offer cryptocurrency services. Crypto adoption is also growing in countries where people “seek to protect their income against inflation and currency controls” or for faster and cheaper remittances.

In addition, Jim Wiederhold, S&P Global’s associate director for commodities and real assets, authored an opinion piece about bitcoin last week. He wrote:

The recent enthusiasm for bitcoin is reminiscent of the Gold Rush in the western U.S. from 1848-1860 … U.S. enthusiasm for gold exploded over this time period.

The analyst explained that “Recently, the parallels between the two assets have grown.” He noted that both are scarce, “have the potential to be held outside of conventional financial markets,” and are good inflation hedges. In addition, they are “uncorrelated to other popular asset classes in portfolios.” However, he pointed out that bitcoin’s volatility over the past five years is multiple times higher than other asset classes.

Pointing out the differences between gold and bitcoin, including the supply limit, he continued, “Concerns of bitcoin theft were rampant a few years ago; though as bitcoin becomes more mainstream, these worries are fading. Although lingering technology and exchange counterparty risks remain.”

The analyst concluded that while gold is a more established asset, bitcoin “is in its infancy, but it is slowly becoming more easily accessible to mainstream investors.”

According to the S&P Global special report:

Cryptocurrency may appear to be a niche or experimental segment for these companies, but industry experts say they are treating it with increasing seriousness.

Do you think bitcoin has become mainstream? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Source: bitcoin-core-news.com

Author: by admin


Staking and Lending – CoinSpectator

Staking and Lending – CoinSpectator

In our first chapter of how to invest, we gave you a 10,000 foot view on what moves and motivates the crypto industry. Today we’re going to be taking a look at one of crypto’s most productive products from a profit point of view: staking and lending. 

Below we explore what they are, how they work, what are some of the potential pitfalls, and why they’re so popular. 

Staking is a financial term that’s fairly unique to the cryptocurrency markets. In a nutshell, as an investor you agree to stump up the crypto you invest in a specific network to help the network validate transactions. In exchange for doing that, you earn rewards, typically in the form of tokens. 

The key to staking is a consensus mechanism known as proof of stake. Bitcoin and many other blockchains rely on a consensus mechanism called proof of work. In this system, miners expend huge amounts of computing power to solve a puzzle that helps the blockchain validate all the transactions inside a block. The first to solve the puzzle earns the reward. 

Polkadot currently has the largest staked value on its network, of nearly $10 billion!

At the time of writing, there is nearly $30 billion locked in staking, with the biggest staking networks including DOT, Ethereum, EOS, Algo and ADA. 

While this is a robust and secure way of keeping a blockchain running, all the computational power expended by all the miners that didn’t solve the puzzle is ultimately wasted. This is why some commentators say proof of work is “inefficient” and why you might see headlines saying Bitcoin uses as much energy as Chile. 

In a proof of stake blockchain however, the mining process is different. Instead of machines competing to solve a puzzle, the network assigns a miner, or node, the right to perform the validation work depending on the amount or stake of tokens that node currently has.  

Once the node is given the nod by the network, it can get to work validating transactions. Once it solves the problem, it’s rewarded with tokens, and the stake is returned back to the investors. 

Like with mining pools, groups of stakers often get together to form staking pools to make the chances of being selected higher. We’ll explore these more below. 

Staking pools are where several investors collect their tokens together into a pool, and then typically a pool operator will do the allocation on the investors’ behalf. This allows investors without a working knowledge of a blockchain network’s machinations to get involved in the network. It also increases the chances of you earning rewards for your stake. 

However, there will likely be fees involved and the reward will potentially be lower as it’s divided among more investors. For investors looking for a more consistent payout, and aren’t as interested in being part of the network, lending might be a better option, which we explore more below. 

While staking helps secure a network, lending allows investors to passively earn interest to help facilitate trading. 

Several DeFi, or decentralized finance companies offer the ability to lend your crypto to other traders and earn interest as a result. At the time of writing, there is more than $8 billion invested in lending companies like Maker, AAVE and Compound.

These companies create lending pools, that your crypto goes into. The pools then create an interest rate-these vary depending on what cryptocurrency you are lending and the rate set by the company itself-and you begin earning interest almost immediately.

The biggest lending platforms include AAVE, Tidex, Nexo and Celsius Network.

Lending pools are what contributed to 2020’s DeFi boom as new lending networks sprung up offering huge returns for investors willing to put their crypto in their hands. But there are some pitfalls when it comes to staking and lending, as we explore below. 

Staking and lending do have their downsides. With staking, the network’s volatility, and longevity could have a serious impact on your investment. 

As rewards are paid out in the token of the network, a sudden drop in the network’s value means your asset’s value drops with it. If you decided to stake your coins in a network that gets hacked, the value of your investment could also go down. 

If the network suddenly becomes less popular that too could have an impact. 

With lending, the company you lend to sets the interest rate, and these can vary over time, depending on how popular that particular asset is. 

And both staking and lending facilities can ask you to move your crypto out of your own wallet into a company’s wallet, which might seem at odds with crypto’s ethos of “not your keys, not your crypto.” 

If buying a cryptocurrency and holding it is the first step on the ladder of investing in cryptocurrencies, lending and staking is step two. 

It requires only a few extra steps, and can help increase the size of your holding without having to do very much apart from choosing which platform to give your crypto to. 

Feeling comfortable? Head on over to AAX where you can start earning a passive income using the Savings feature.

Disclaimer: The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

Source: coinspectator.com


Cryptocurrencies Have Become Mainstream and Are Here to Stay, Bitcoin Reminiscent of Gold Rush – Crypto Money Daily

Cryptocurrencies Have Become Mainstream and Are Here to Stay, Bitcoin Reminiscent of Gold Rush – Crypto Money Daily

S&P Global says cryptocurrencies have become mainstream and appear to be here to stay, as more companies are offering crypto services and adoption is growing worldwide. Meanwhile, an S&P analyst believes that bitcoin’s rise is reminiscent of the U.S. gold rush.

Financial information and analytics firm S&P Global released a special report on the current condition of cryptocurrencies last week. It states:

Once considered an alternative trend, cryptocurrencies have become mainstream and appear here to stay.

The report references a number of factors, such as legacy banks taking “a closer look at the asset class that could be integrated into the products and services offering” and companies like Paypal beginning to offer cryptocurrency services. Crypto adoption is also growing in countries where people “seek to protect their income against inflation and currency controls” or for faster and cheaper remittances.

In addition, Jim Wiederhold, S&P Global’s associate director for commodities and real assets, authored an opinion piece about bitcoin last week. He wrote:

The recent enthusiasm for bitcoin is reminiscent of the Gold Rush in the western U.S. from 1848-1860 … U.S. enthusiasm for gold exploded over this time period.

The analyst explained that “Recently, the parallels between the two assets have grown.” He noted that both are scarce, “have the potential to be held outside of conventional financial markets,” and are good inflation hedges. In addition, they are “uncorrelated to other popular asset classes in portfolios.” However, he pointed out that bitcoin’s volatility over the past five years is multiple times higher than other asset classes.

Pointing out the differences between gold and bitcoin, including the supply limit, he continued, “Concerns of bitcoin theft were rampant a few years ago; though as bitcoin becomes more mainstream, these worries are fading. Although lingering technology and exchange counterparty risks remain.”

The analyst concluded that while gold is a more established asset, bitcoin “is in its infancy, but it is slowly becoming more easily accessible to mainstream investors.”

According to the S&P Global special report:

Cryptocurrency may appear to be a niche or experimental segment for these companies, but industry experts say they are treating it with increasing seriousness.

Do you think bitcoin has become mainstream? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Source: cryptomoneydaily.com


Bitcoin News Roundup for Jan. 28, 2021

Bitcoin News Roundup for Jan. 28, 2021

Add Markets Daily to your Alexa Flash Briefing here.

This episode is sponsored by Nexo.io.

Today’s stories:

Digital-market traders found amusement in the GameStop saga. They also saw an opportunity for self-reflection. Here’s what Niall Ferguson, Caitlin Long, Mati Greenspan and Jonathan Mohan said.

“Gotta admit it’s really something to see Wall Streeters with a long history of treating our economy as a casino complain about a message board of posters also treating the market as a casino. Anyways, Tax the Rich,” U.S. Representative Alexandria Ocasio-Cortez writes. (Twitter)

Guggenheim CIO Minerd, who has predicted a bitcoin price of $400K, tells Bloomberg TV the base of institutional buyers is “just not there” to push bitcoin’s price above $35,000 (CoinDesk)

Blockstream buys $25M of bitcoin mining machines from MicroBT (CoinDesk)

Crypto’s young believers stoke craze for penny stocks in companies with exposure to bitcoin (Bloomberg)

Riding the coattails of crypto’s bull run, DeFi token UNI from Uniswap breaks $15 on Coinbase exchange, has nearly doubled in past seven days (CoinDesk)

GameStop backlash could lead to curbs on “memetic disturbances,” or even “the squeezening,” Preston Byrne writes in op-ed (CoinDesk Opinion)

Market chaos fueled by bands of retail traders reportedly leads to counter-measures from Wall Street firms TD Ameritrade and Wells Fargo, as a spokeswoman for U.S. President Joe Biden says the new administration is “monitoring” the GameStop situation (CoinDesk)

U.S. Securities and Exchange Commission “actively monitoring the ongoing market volatility in the options and equities markets” (SEC)

“What seems to be unfolding here is a crypto-esque farce combining volatile trading and chatroom-driven tips reminiscent of cryptocurrencies like bitcoin and penny stocks, all in a market juiced by pandemic stimulus,” Lionel Laurent writes in column (Bloomberg Opinion)

Goldman Sachs strategist joins chorus saying “buy the dip” in stocks (Bloomberg)

Source: www.coindesk.com

Author: Tanzeel Akhtar


Cryptocurrencies Have Become Mainstream and Are Here to Stay, Bitcoin Reminiscent of Gold Rush – Featured Bitcoin News

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