This Week in Bitcoin 12.10.2019:
Each week, the Coinme Private Client team sends a weekly email, highlighting the top industry news and stories. Included in that email is “This Week in Bitcoin”, your guide to the state of bitcoin. Here’s the top news in This Week in Bitcoin 12.10.2019.
Last week we saw Bitcoin finished unchanged but oscillated in a 10% top-to-bottom range throughout the week. Across other digital assets we’re seeing a surge of thematic investing with the latest being staking. In a nutshell, staking tokens is a mechanism to reach network consensus while simultaneously earning a yield. While staking is not new, crypto companies are making it much easier for digital asset owners to stake their tokens and earn rewards. As a result, those proof of stake assets can be staked such as Tezos (XTZ) and Algorand (ALGO), rising as much as 30% last week respectively. Thematic investing in digital assets is another step in the right direction towards a maturation of crypto investing. We’ll expand on this idea further in a 2019 Crypto recap webinar that we are performing in January.
What about This Week in Bitcoin 12.10.2019? Look at What People Are Doing; Not Saying.
Bitcoin is the biggest and most important digital asset, as it serves as the educational and physical onramp for just about everyone. So when the price is flat, naysayers may rejoice; however, it would be very wise to look at what others are doing, not what they are saying.
For starters, Charles Schwab released a report detailing how investors by age demographic are investing, and Bitcoin is now the 5th largest holding of millennials. (WOW!)
For those not ready to invest, but are technologically curious, there are also plenty of ways to earn free Bitcoin as well. You can get Bitcoin rewards as “cash back” from shopping online, you can read educational material and be rewarded in Bitcoin, and some companies are even paying employees with Bitcoin. There are even ways for people to request and receive Bitcoin as a gift.
Altogether, adoption is growing and unlike other asset classes where transparency is difficult at best, the growth of Bitcoin is right in front of us. For example, data regarding the cost basis for each individual share of a company’s stock is not available but with Bitcoin, this data can be broken down and analyzed by investors. Cost basis datacan be valuable because it provides insight into the degree of euphoria that investors are experiencing along with fundamental emotions that affect investment decision-making. Simply put, growth is being measured in many ways besides price.
As We Enter 2020, A LOT Is Going On.
There is quite simply a tremendous amount happening in digital assets. To start, product launches are coming fast and furiously. A few months ago, only one institutional product was available for investors to buy Bitcoin, but in the past month, this list has expanded considerably:
- Canadian crypto asset management company 3iQ received approval from the Ontario Securities Commissionto offer an exchange-traded closed-end Bitcoin fund on the TSX. Although not available yet and when it is, it’s only available to Canadians, the fund also represents a significant development for the US as the retail investor profile of Canadians is very similar to Americans. If the fund turns out to be a hit, it may move US regulators to allow the many ETF applications currently on hold.
- Galaxy Digital sponsored a couple of AI-only funds that will invest in Bitcoin, offering AIs, including institutions, the ability to gain exposure to Bitcoin without having to worry about custody and insurance.
- Traditional ETF manager WisdomTree sponsored a Bitcoin ETPthat trades on the Swiss SIX exchange with an overall expense ratio of 0.95%. Besides European investor access, the product could also be accessed by US institutions at a very attractive fee structure that seeks to undercut the competition.
- New York Digital Investment Group (NYDIG) recently received approval by the SEC to offer a closed-end mutual fund that trades cash-settled Bitcoin futures. On a quarterly basis, investors have an opportunity to redeem shares.
- Hut8 and Canaan Creative are large mining firms that went public just a few weeks ago, which means more transparency from miners is on the way.
- Silvergate Bank, one of the most crypto-friendly banks in the U.S, IPO’d this year and the stock has risen 20%.
Away from investing, usage and adoption is growing too:
- HSBC announced that they’re moving private placement records on to the blockchain(~$20B assets)
- Juventus (fútbol/soccer) created a token for incentivizing and growing fan interactions
Lastly, governments around the world are talking about digital assets, and in certain places, are providing more regulatory clarity. The China narrative for exchanges is crystallizing a bit, with an understanding that Huobi/OkEx have the green light to operate while other exchanges may be at risk of no longer being allowed to operate. The US Federal Reserve noted that they are considering letting inflation run above targets, which is seen as a pretty significant policy shift and should create demand for Bitcoin and gold. Deutsche Bank released a report that had a nifty section regarding a hypothetical end of fiat money and potential rise of digital assets.
In short, it’s very hard to ignore what is happening in digital assets with Bitcoin being in pole position!
Here’s the infographic for This Week in Bitcoin 12.10.2019:
We are inside of 6 months from the“Halving” – when Bitcoin’s daily mining production will be cut in half. If you haven’t yet, make sure you own at least $10 worth of this amazing new asset class. Visit our easy and secure kiosks or speak to an advisor today. We do our best at Coinme to make it really easy. Give us a call. Contact us. Check out our partnership with Coinstar and visit a cash to bitcoin kiosk in a grocery store near you!
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