Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Tuesday, 19 June 00:21 (GMT -05:00)



Foreign exchange market

Bitcoin and other Altcoins – Currencies or Commodities?


The cryptocurrency phenomenon has been the most discussed to topic related to financial markets this year. International experts have been discussing the essence and prospects of digital currencies.
 
Just 12 months ago, you could read about Bitcoin and other cryptocurrencies in financial editions. Today, all mass media are highlighting the topic in detail. Even housewives seem to be getting interested in digital currencies.
 
In case you don’t know, Bitcoin is the world’s first cryptocurrency. This year, it has been setting new all-time highs over and over again. Since early 2017, the BTC exchange rate has increased by as much as 1000%!!! Each Bitcoin rally is followed by a certain kind of panic and doomsday forecasts predicting financial bubbles that are about to burst. However, everything has been going the opposite way so far. They say big-scale investors are now getting increasingly interested in cryptocurrencies.

 

For instance, in August 2017, 70 major hedge funds announced their investments in Bitcoin. Today, the number has increased up to 120 hedge funds. Better yet, Bitcoin derivatives (like futures) are about to come into existence. The CME and CBOE have already announced that. Even NASDAQ is now ready to join in. it seems like big-scale institutional investors are about to enter the cryptocurrency market as well.
 


Cryptocurrency can be seen as an innovative asset. What do you actually compare cryptocurrencies to? Currencies, stocks, commodities? Jeff Curry, global head of commodity research for Goldman Sachs, shared his opinion with us during his interview to Bloomberg

To start with, Bitcoin has recently shown the trait that has been scaring away many of those big-scale investors. Specifically, we are talking about volatility. Indeed, cryptocurrencies in general and Bitcoin in particular have always been rather volatile, with a constant roller-coaster thing. He thinks that is a natural process for relatively young assets. Today’s Bitcoin market cap is $160-170 billion. On the one hand, that’s quite a lot. But on the other hand, these figures cannot be compared even close to the ones of gold. The gold market cap is $8300 bn. The point is, gold has been a reliable investment asset for centuries while digital currencies are babies with a couple of years of history. If digital currencies survive and last for decades, they may see their market cap boost and their volatility decline. 

 


He compared cryptocurrencies to rare-earth metals like cobalt, lithium etc. Those commodities have also increased in value quire a lot over the last few years, and the prices are still going up from time to time. This market is also subject to low liquidity, which also leads to high volatility. For example, those metals went up in value instantly after the demand for electro-cars started increasing worldwide. However, after going up in value, they also started being rather volatile, almost like cryptocurrencies. So, the bottom line is, volatility is a infant disease typical of all low-liquidity assets. But cryptocurrencies are getting more liquid and they will definitely get rid of this disease over time.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Today’s Bitcoin Rate Signals Growing Risks in Banking Sector

Yesterday, the BTC exchange rate suddenly started growing, probably as a part of a recovery move against the existing downtrend. According to CoinMarketCap, the current BTC exchange rate is somewhere above 7500 USD/BTC. Over the last 24 hours, the world’s first cryptocurrency has gained some 5%, trying to recover from May’s downtrend (in case you don’t know, the coin has lost 20% since early May before starting to recover yesterday).

Publication date: 31 May 08:33 AM

Bitcoin Goes Down Before Another Rally?

The BTC exchange rate keeps on going down while being driven by a number of factors and circumstances. International experts say that the price of the world’s first and most popular cryptocurrency is currently going down just to gain some momentum later and skyrocket to new highs.

Publication date: 29 May 11:19 AM

Masterforex-V Analysts name Successful ICOs in May 2018

For those of you who don’t know, an Initial Coin Offering (ICO) is all about raising funds. To be more specific, startups sell their underlying crypto tokens in exchange for existing crypto currencies, mostly Bitcoin, Ethereum and other altcoins out there. This resembles an IPO in the stock market where investors buy a newly offered stock.

Publication date: 23 May 12:14 PM

Bitcoin Will Hit $20K, CoinShares Says

Bitcoin is really capable of getting back to the all-time high at $20K per coin. This is what founder of Coinshares Danny Masters thinks on the matter. He is not a rookie in this business. His company has been creating investment products for the cryptocurrency market and conducting blockchain-related research for years. Mr. Masters believes in the future of Bitcoin and altcoins. However, he thinks the market is yet to pass a few development stages. 

Publication date: 20 May 08:38 AM

German Stock Exchange Börse Stuttgart Welcomes Cryptocurrencies

Soon enough, maybe this fall, German stock exchange Börse Stuttgart is going to start working with cryptocurrencies. For that purpose, the exchange is expected to use its branch. Trading cryptocurrencies will be implemented through the Bison app. The expected trading turnover is around 100 billion dollars.

Publication date: 17 May 12:00 PM

Bitcoin Goes Down, Getting Closer to 8000 USD/BTC

Earlier today, the world’s first and most expensive crypto currency was going down while continuing the downtrend seen a day before. According to CoinMarketCap, the BTC exchange rate dropped below 8300USD/BTC, though it recovered a bit later on. Over the last 24 hours, the currency lost more than 5% of its dollar value. 

Publication date: 16 May 11:51 AM

Bitcoin Rallies Despite Criticism from Buffet and Gates

This trading week, Bitcoin is unlikely to conquer another major threshold located at 10000 USD/BTC. The thing is that some Bitcoin investors were cooled down by the statements made by investment guru and billionaire Warren Buffett, founder of Berkshire Hathaway, as well as by Bill Gates, founder of Microsoft and one of the richest people on the planet.

Publication date: 10 May 09:05 AM

Will Bitcoin Rate Exceed $10K This Week?

This week, the BTC exchange rate may well break above 10000 USD/BTC, most of the experts interviewed by PRIME think.

Publication date: 09 May 12:51 PM

Bitcoin Prospects Look Vague Against Altcoins

The situation in the global market of cryptocurrencies has been changing for a while. Bitcoin seems to be gradually losing its status of the world’s biggest and most popular digital currency.

Publication date: 05 May 10:53 AM

Bitcoin Exchange Rate Goes Up Rapidly, Over $9600 Already

Over the last few days, the Bitcoin exchange rate has been going up continuously. On Thursday, the rate conquered two strong levels of resistance at 9300 and 9400 dollars respectively. On Friday morning, the rate changed to 9600 dollars and continued its way up to new local highs.

Publication date: 04 May 02:08 PM