Heroes of Ukraine

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

Saturday, 24 October 12:40 (GMT -05:00)



Foreign exchange market

Bloomberg: Crypto Is Better Than Gold In 2020


According to the recent Bloomberg report, cryptocurrencies are way better than gold in terms of investments in 2020. Which is interesting, most cryptocurrencies have been growing much faster than gold this year. It's not a secret that gold is considered a safe-haven asset amid crises. Bloomberg Galaxy Crypto Index (BGCI) has gained 66% this year,while gold has gained only 20% over the same period.
 
Managing Decentralized Finance (DeFi)
 
The sharp increase in the market of cryptocurrencies was caused by an increased interest to DeFi. According to Bloomberg and NordFX, the introduction of DeFi was growing throughout the year and eventually raised the price of Ethereum (ETH) up to 481 dollars per coin. Since Ethereum makes up for almost 12% of the entire cryptocurrency market cap, and DeFi relies heavily on ETH as its major implementation, the rally of ETH apparently caused a major impact on BGCI.
 
DeFi
 
Decentralized Finance (DeFi)
 
DeFi was created in order to recreate conventional finance but without any third parties involved. Simply put, DeFi makes it possible to implement many conventional transactions, including lending and borrowing money. Basically, this is something that caused the recent ETH market rally. According to DeFi Pulse, the total cost of the DeFi smart contract increased from 676 million dollars all the way up to 9,51 billion dollars in a matter of just 9 months. This literally means that the entire DeFi market increased by as much as 1300% over the mentioned period.
 
Will DeFi Keep Growing?
 
At the same time, skeptics say that cryptocurrencies and DeFi won't be able to back big profits. Digital assets have always been unstable and volatile. Just consider the recent drops we have seen over the past few trading days: Bitcoin lost 700 dollars, Ethereum dropped down to 335 dollars per coin.
 
On September, 22nd, Bloomberg Galaxy Crypto Index started seeing losses as well. It lost 8% on that day. Since peaking in August, the index has already dropped by 20%.
 
The total cost of the blocked DeFi (TVL) has decreased as well. In just a few days, TVL has dropped from the peak at 13.35 billion dollars all the way down to 9.41 billion dollars.
 
However, this not prevents miners and institutional investors from entering the market. Famous investors such as DG Lab Fund, Framework Ventures, ParaFi Capital, 3Arrows, as well as the veterans of the cryptocurrency market such as Pantera and Multicoin Capital, keep on investing in DeFi.
 
Cryptocurrencies Turn Into Safe-Haven Assets
 
Earlier in 2020, both BTC and ETH reached their 12-month highs. The cryptocurrencies became safe-haven assets for many investors, mostly because of the endless monetary easing, which boils down to massive money printing. It seems like such financial assets work well during financial and economic crises.
 
HTe latest news only contribute to the growing interest in cryptocurrencies. Not so long ago, MicroStrategy, a company listed on NASDAQ, bought a considerable portion of BTC. All in all, the company invested around 475 billion dollars into Bitcoin. The company's managers think that Bitcoin is a perfect assets to secure funds against inflation and the recent purchases is part of the company's new investment plan.

 

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

 

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

Tape Patterns Indicator

Traders often use various kinds of technical indicators these days. The list can be rather long, from popular ones like RIS, MACD etc. to less popular ones like Tape Patterns.
Publication date: 30 September 08:52 AM

Bitcoin's Getting Ready For a Strong Rally

While Bitcoin could have been more volatile over the recent weeks, the king of cryptocurrencies stoped in the range between 10K and 11K dollars per coin. Do BTC miners know in which way the coin is going in the near future?

Publication date: 30 September 04:07 AM

Gold Prices Drop Below $1860/oz, Seeing A Major Downtrend

On Thursday morning, the spot price of gold dropped roughly down to $1850/oz withing the scope of a strong downtrend started earlier this week, with a strong gap from the consolidation level. The key factors contributing to the price drop was the sudden strengthening of the U.S. Dollar.

Publication date: 25 September 07:39 AM

Texas Authorities Spot New Crypto Scams

The TSSB, which is the financial regulator of Texas, is reported to have revealed a couple of potential scams in the international market of cryptocurrencies. These are named Forex Birds and PEK Universe. From now on, both of these projects cannot work in Texas anymore. These projects were banned on September, 3rd.

Publication date: 18 September 01:07 PM

Cryptocurrencies On Sale: ChainLink and TRON Go Down, Bitcoin Is Stable

Wednesday's session is bringing a retracement in the market of digital assets, which is affecting the entire crypto market cap. Chainlink (LINK), TRON (TRX), and Tezos (XTZ) have been the biggest losers over the last 24 hours. They lost 9,7%, 8,7%, and 5,5% respectively. Bitcoins remains stable and one of the very few tokens among the top 20 that are still showing some gains, though modest ones.

Publication date: 16 September 12:04 PM

What's Next For Bitcoin?

Some analysts argue the future of Bitcoin, also known as the digital gold. Last week, the Winkelvoss brothers stated that the BTC price may skyrocket all the way up to 500.000 dollars per coin in the near future. This opinion is shared by Bloomberg analysts. But on the other hand, Bitcoin may see the opposite scenario, which is a major crash to make it as cheap as dirt.

Publication date: 10 September 03:00 AM

How To Get Ready For Bitcoin Boom 2020?

Cryptocurrencies keep on growing in value. If you are going to buy your first coins, this is what you should do first.
Publication date: 30 August 11:27 AM

U.S. Tech Companies Increase Stock Buyback

Publication date: 20 August 06:10 AM

Altcoin Mining Account For Over 30% Of Overall Crypto Mining Consumption

Scientists for the University of Munich urge the regulators to go beyond the BTC scope when it comes to crypto mining affecting the environment. They say that Bitcoin accounts for over 66% of the entire energy consumed by crypto mining, based on the basic algorithms, the current hashing speed, and the mining equipment used, while altcoins account for the rest of it. Consequently, altcoins add almost 50% on top of Bitcoin's energy demand, which in itself may result in considerable damage to the environment.

Publication date: 09 August 11:06 AM

GBP Prospects After BoE's Interest Rate Decision

The United Kingdom's financial authorities have published the information on its money-and-credit policy:
- The interest rate decision: 0,10% (prediction: 0,10%, previously: 0,10%)
- BoE's MPC: votes for interest rate cuts: 0 (previously: 0)
- BoE's MPC: votes for interest rate hikes: 0 (previously: 0) 
- BoE's MPC: votes for keeping the interest rate unchanged: 9 (previously: 9) 
- BoE's total QE: 725 billion pounds (prediction: 725 billion pounds, previously: 725 billion pounds)
Publication date: 06 August 08:32 AM