Bitcoin Outperforms Traditional Assets For Legendary Fund Manager

Legendary hedge fund manager, Bill Miller, can boast bumper performance for including Bitcoin as part of his investment strategy. A fund launched three years ago has posted impressive gains this year according to reports.

Bitcoin Boosts Fund 46 Percent

A Bloomberg report has cited an investor document revealing that the fund launched by Miller three years ago has made 46% so far this year. It then quipped;

“That’s enough to make plenty of people in the hedge fund industry jealous.”

Miller spent three decades at American investment management firm Legg Mason where he selected beaten-down securities that trade at a discount to intrinsic value. The Bitcoin bull bet right this time with a bullish wager on the king of crypto. The document suggests that BTC’s performance this year is largely responsible for the impressive fund gains.

Bitcoin started the year trading at a lowly $3,800 and surged over 260 percent to an eighteen month high of $13,800. Even including the current 30 percent pullback, BTC is still up over 150 percent so far this year.

Those impressive figures have made it one of the top performing assets, outpacing traditional investments such as stocks, commodities and real estate. By comparison, gold – which is trading at a six year high, has only made 11 percent since the beginning of the year.

Miller also made investments in Amazon, security systems firm ADT Inc, and Avon Inc. The fund has assets of $126 million with Miller overseeing $2.3 billion in total from his Baltimore-based firm. added that the fund has been volatile over short lifespan. It soared 182% in first full year of trading in 2017, but lost 34% last year as stocks slid.

Miller is also doing well in the world of mutual funds. The Miller Opportunity Trust, which has $1.5 billion in assets, is up 18% this year through, outperforming almost 90% of its peers according to the report.

BTC Still In Retreat

Since its 2019 high in late June BTC has retreated around 30 percent to current prices. The doom mongers are cheering but the pullback has been expected, and largely anticipated. Over the past 24 hours Bitcoin has dipped back below five figures in a fall to $9,650. Failure to return to $10,200 or above will result in further losses back to support which currently lies around $9,200.

Traders and analysts are expecting these declines with several eyeing the $8,000 level as a buyback zone. are also of the opinion that the longer term outlook is good and BTC well hit a all-time high as the halving approaches in May next year.

Image from Shutterstock

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Source: newsbtc
Bitcoin Outperforms Traditional Assets For Legendary Fund Manager

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Like Traditional Markets, Cryptocurrency Trading Likely on Autopilot

Cryptocurrency trading

In
2000, Goldman Sachs, one of the ’s most significant cash equities trading
desk, had 600
traders
. In 2017, only two equity traders were operating the floor,
supporting automated trading programs. Two hundred computer engineers, in
return, found new positions at Goldman Sach’s New York headquarters.

Unlike traditional markets, crypto trading market has not had to go through the whole evolutionary process. Invented at the peak of the computer age, crypto trading bots have integrated with it, without much disruption.

Trading
bots generally use computer algorithms to search out and recognize trading
trends. At first, these tools of the trade were the preserve of well-endowed
hedge funds. Their use has, however, ballooned with time.

As an illustration, JP Morgan estimates that it is a paltry 10 percent of all trades today that are executed by humans. Bots execute these trades at an inhuman speed for profit. They not hindered by intuition, past experiences or emotion but rather by data. This means that they will hardly veer off course when trading pressure mounts. 

Cryptocurrency Trading Bots on the
Rise

These bots are now available for use by private investors in the crypto market. With cryptocurrency prices rising by the day, there has never been a better time to integrate bots in crypto trades.  Coinbase’s user accounts have, for instance, eclipsed those of the Charles Schwab Corp. As cryptocurrency awareness increases, so will digital asset traders and overall market cap.

Digital
currencies started as a rebellion against “The Man.” Savvy traders,
nonetheless, have found one use case that brings much ire and excitement in
equal measure in the crypto-verse. They have become an investment class for
profit-minded individuals and institutions. Bitcoin, for instance, has been
bringing in more returns than any other asset class out there in 2019. 

Digital
currencies, however, are incredibly volatile. This means that the emotion that
drives traders to the brink in traditional markets is amplified in the crypto
market. The HODL was coined to steady lads watching their cryptocurrency
fortunes rise and crash in moments.

Bot trading is “evil”

If crypto bots took over, trading traders would not need to concern themselves with the volatility. They could use this feature to maximize their returns and minimize trading mistakes.

reason to have bots in cryptocurrency trading is the competition that established old-world money market traders are bringing to the market. The cryptocurrency market has been a niche market of technology fans and computer scientists. These are not professional traders. Bots can give them an edge in the growing market.

Not every crypto fan, however, thinks that trading bots in crypto is good news. This move will hand over cryptocurrency profits back to 0.01 percent of the world’s population that has been living off fiat manipulation. there is no data to ascertain just how much of crypto trading is run by bots, pundits predict that the numbers are high.

This is especially so, in the light of the massive long and short liquidations happening on exchanges. One Reddit user says:

“I view this type of trading as evil because rich corporations can afford the computers to do it, but average humans can’t. Some computers place orders and cancel them a tenth of a second later. It is part of manipulating prices”.

What trading traditional future markets in crypto means

The latest results released by the Futures Industry Association (FIA) show some extremely encouraging signs. Not only is the traditional futures industry growing exponentially, 2018 saw a record number of contracts changing hands globally. Futures and options climbed by 20.2 percent from the previous year to 30.28 billion contracts, an all-time record.

The global futures industry is a multi-trillion-dollar one and demand keeps on rising. But it’s also an industry that’s rife with inefficiencies, middlemen, hefty commissions, and decidedly favorable conditions for institutions and the ultra-wealthy.

Everyday retail traders get an extremely raw deal they want to try their hand trading these . If there were a primed for disruption, it’s futures.

Thanks to the power of blockchain technology, traders have been buying and selling cryptocurrency futures contracts without the need to be an accredited investor or use an expensive broker. But we’re still testing the waters as far as futures trading and the blockchain go.

Taking Futures Trading to the Next Level

Traders can currently trade cryptocurrency futures on many different pairs, from BTC against the USD to ETH against the GBP. But, there still are no exchanges that allow cryptocurrency futures traders to trade traditional futures markets as well. So, why not–and what if there were?

By adding traditional futures markets like gold, bonds, stocks, and indices, to cryptocurrency trading, exchanges be effectively taking the cryptocurrency game to traditional retail traders. We’re talking abou the self-directed trader who currently trades his or her favorite markets without a advisor while paying high brokerage fees.

Out of all millennial retail traders worldwide (cryptocurrency’s largest target), around 72 percent describe themselves as “self-directed investors.” This means that they don’t rely on a financial advisor, trader, or broker to invest their or offer advice. With this new demographic more willing to trade online in new ways, cryptocurrency futures exchanges can tap a massive and expanding market.

Not only would the cryptocurrency industry be tapping into the multi-trillion-dollar futures industry, but it would be disrupting the status quo and giving traditional retail traders a better deal.

Giving Opportunity to Retail Traders

Allow me to reiterate. We’re not talking about market caps in the millions or billions here–we’re talking about the trillions of dollars. Allowing for the trading of traditional futures markets on cryptocurrency exchanges has the potential to bring more fiat on-ramp and make crypto potentially huge, onboarding traditional retail traders.

Not only they benefit from lower commissions (or even zero) on the markets they’re comfortable trading, but they’ll also get exposure to cryptocurrency trading for the first time.

The types of markets that can be added has almost limitless potential. Alongside cryptocurrency pairs, traders can speculate on gold, stocks, oil, indices, forex, and more–all the time taking market share away from the enormous futures industry. This will help cryptocurrency exchanges grow and reach more types of traders.

Even if they were only able to unlock a minute percentage of the trillions of dollars generated from the billions of contracts registered by the FIA, they could give traders the potential to make enormous gains!

Giving Cryptocurrency Traders Exposure to Traditional Futures

At the same time as bringing fiat on-ramp and widening the pool of traders, cryptocurrency futures exchanges will also be allowing everyday crypto traders who previously had restricted access to get in on a trillion-dollar market. For the very first time.

This would mean unlocking a ton of value that’s traditionally been held in paper contracts and only available for a select few to trade. Crypto traders of all styles in all places can get their feet wet in an entirely diverse and burgeoning industry. It’s impossible to understate the potential of marrying traditional futures trading with the crypto industry. This revolution is just getting started.

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Source: cryptoslate
What trading traditional future markets in crypto means

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Traditional Money Could Be ‘Surpassed’ By E-Money, Stablecoins: IMF Paper

A new IMF paper suggests that cash and bank deposits could be left behind as and -pegged cryptos see greater adoption.
: worldnewsoffice
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Traditional Money Could Be ‘Surpassed’ By E-Money, Stablecoins: IMF Paper

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Traditional Money Could Be ‘Surpassed’ By E-Money, Stablecoins: IMF Paper

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Traditional Money Could Be ‘Surpassed’ By E-Money, Stablecoins: IMF Paper

A IMF paper suggests that cash and bank deposits could be left behind as and -pegged cryptos see greater adoption.
: coindesk
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Bitcoin’s Correlation to Traditional Markets Could be Problematic, Analyst

Bitcoin

Author and financial analyst, Timothy Peterson, believes that Bitcoin’s growing correlation to Japan’s MSCI could end badly if traditional markets sharply correct.


Bitcoin Correlation in Japan’s Markets

Timothy Peterson, the author of Metcalfe’s Law as a Model for Bitcoin’s Value, tweeted a chart comparing the MSCI Japan in USD to Bitcoin in JPY from July 2014 until July 2019. According to Peterson, “Either traders think $BTC is some sort of 10x leveraged Japanese tech stock, or Japan has significant exposure to Bitcoin.” 

The chart shows the correlation between the MSCI ETF and the BTC-Yen pairing and it tightens to nearly lockstep pace starting in April 2016. Correlation between Bitcoin and other markets has long a hot topic of discussion and analysts have continuously debated whether an inverse or direct correlation is best for Bitcoin and other cryptocurrencies. Peterson is of the opinion that the correlation is not positive and he explained that: 

The implications of this are not good btw. You can’t sell BTC’s diversification benefits to institutions if it doesn’t actually diversify. If traders treat BTC like a stock and the market crashed, BTC will crash HARD.

Are Japanese Traders Driving the Market?

Bitcoin trading is extremely popular in Japan and one prevailing theory is that in addition to an uptick in Japanese traders, people edged out of the market by China’s Bitcoin ban have taken their funds to exchanges headquartered in Japan and Singapore instead. Furthermore, previous estimates show that in 2016 Japanese Yen was to purchase nearly 42% off all the Bitcoin in 2016.  

Twitter respondents reacted with mixed reactions to Peterson’s tweet and one follower agreed that 2017 – 2018 witnessed a huge amount of Bitcoins changing hands. @Captain_Reason also speculated that the Bank of Japan is frequently printing money and buying assets which could possibly include Bitcoin. 

While the proposal is a bit of a stretch it’s certainly a possibility, and in 2018 handfuls of Wall Street institutional who previously scoffed at Bitcoin revealed that they had been investing in the digital asset and developing instruments for institutional clients.  

Bitcoin Trading Volumes to Drop as the FATF Cracks Down on Exchanges

Interestingly, Japan has a disproportionately high number of crypto exchange hacks in spite of this, traders continue to invest significant sums into the crypto market. Most recently, Bitpoint crypto exchange was hacked for $32 million and Japan’s Financial Action Task Force (FATF) is reported to be cracking down on exchanges with poor security protocols.

The Nikkei Asian Review recently reported that the FATF is directing the Financial Services Agency (FSA) to exert pressure on exchanges that offer KYC-free and anonymous transactions. It’s possible that as exchanges are forced to implement stringent KYC and AML processes Bitcoin trading volume could drop and perhaps the correlation between BTC and the MSCI could weaken. 

you think Bitcoin correlation to traditional markets is good or bad? Share in the comments below! 


Images via Shutterstock, Twitter: @officialmcafee, @100trillionUSD, @TuurDemeester

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Bitcoin’s Correlation to Traditional Markets Could be Problematic, Analyst

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Bitcoin Beats Traditional Financial Market Investments On ROI

The monumental performance of in 2019 has not gone unnoticed by those who invest in assets. BTC has outperformed pretty much all of the other financial investment options on the table by a massive margin.


BITCOIN BEATS OIL, GOLD, STOCKS

Despite its little downturn recently, bitcoin is still way higher than it was at the beginning of the year. BTC started out on New Year’s Day trading at around $3,750, still frozen solid in the depths of the 2018 crypto winter. Today it is trading at around $11,500 which is a gain of 206%. If we look at the 2019 peak of $13,800 bitcoin made a whopping 268% gain in just six months.

bitcoin

BTC price YTD. Coinmarektcap.com

The uptrend is still solid and trading volume has surged from around $4.5 billion to over $20 billion per day. capitalization as a result has also pumped from $65 billion to over $200 billion over the same period.

To get the scope of how significant these gains are we need to take a look at other top invested and traded assets. Oil is second to bitcoin, but it is a long way back with just a 30% gain in 2019. The NASDAQ is next with 26% since the beginning of January and real estate investment trusts (REITs) have made 22% this year.

After bitcoin, these are the top three performing traditional assets. Further down the list is the S&P500 which has made 21% and even further down are commodities with an 11% gain. Peter Schiff’s darling, gold, has only managed a 10% increase so far this year, and cash is not even worth mentioning. Investor Charlie Bilello spells it all out:

As mentioned in the comments are other crypto assets that have even outperformed bitcoin. Even with a dump of 30% from its 2019 high, Litecoin has still notched up a gain of over 240% this year at current rates.

That increase is dwarfed by the 400% Binance Coin has made since it was trading at $6.20 on January . The new darling of crypto, Chainlink, has cranked a monumental one percent since the beginning of the year when it was trading below $0.30. Even with them still on the floor, most altcoins are higher now than they were six months ago.

BITCOIN SETTLEMENTS FOR ENERGY

Performance aside, there could well be closer ties between bitcoin and oil and gas before the end of the year. That is at least the prediction from one industry observer who claims there will be settlements or royalties in BTC for energy this year:

We are going to see settlements for oil and gas payments and/or royalties in Bitcoin by the end of 2019.

What is clear is that bitcoin is part of the financial ecosystem now, it not be that big a player yet with only $200 billion market cap, but things are changing and its role in global finance is only going to grow.

How big do you think bitcoin will become on the global stage? Let us know your thoughts in the comment section below!


Images courtesy of Coinmarketcap, Twitter @Charliebilello, @francispouliot_ , Shutterstock

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Bitcoin Beats Traditional Financial Market Investments On ROI

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Unique Zero-Fiat ‘Bitcoin Bond’ Debuts on Bloomberg Terminal

Bitcoin investment

The range of Bitcoin investment options for institutional and retail investors continues to expand as two European companies debut a zero-fiat Bitcoin Bond on Bloomberg Terminal.


This one is for the HODL Crowd

A recently published release shows that the Block (LBX) and Argento have partnered to develop a zero-fiat bond which is denominated in Bitcoin. The UK and Luxembourg-based companies proudly proclaimed that the product is the first ever Bitcoin Bond in existence and according to Argento manager Phil Millo, “The large investment banks really dropped the ball on this one.” 

 

What makes the bond unique is that it is the first regulated product with a dedicated ISIN code and the bond offers zero fiat exposure to investors. Accessible via the Bloomberg Terminal, the product is specifically targeted toward long investors and LBX CEO Benjamin Davies describes the bond being the most suitable for Bitcoin investors looking to their long-term Bitcoin wallets in an institutional grade environment where their are not exposed to traditional currency market fluctuations. 

Institutional Grade Crypto Products Gain Ground Everywhere Except the U.S.

The bond is regulated by the United Kingdom’s Financial Conduct Authority (FCA) and Argento has cleverly titled the various bond durations ‘FOMO’, ‘HODL’, and ‘MOON’, each of which is a standard crypto-oriented acronym commonly used by members of the cryptocurrency community.  

Keen investors will note that the FCA has been stringent in regulated crypto-based financial products and putting a stop to crypto scams, the approval of the zero-fiat bond eclipsed Bakkt’s thrice-delayed debut. Institutional grade crypto-investment products are steadily racking approvals worldwide as the U.S. Securities and Exchange Commission () and the Commodity Futures Commission (CFTC) continue to drag their feet in approving institutional grade crypto-products like Bakkt’s Bitcoin exchange and the long-awaited Bitcoin-based Exchange Traded Fund (ETF). 

Another recent setback to note is Binance’s announcement that US-based users would be barred from using the exchange starting in September as a number of the digital assets listed on the exchange cannot be legally offered to U.S.-based investors. Binance CEO Changpeng Zhao explained that the company intends to launch a regulatory-compliant version of  Binance through its partner BAM but exact details of the exchange and its launch date have yet to be released.  

Do you think investors will rush into this new zero fiat Bitcoin Bond? Share your thoughts in the comments below! 


Images via Shutterstock, Coveware.com

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Source: bitcoinist
Unique Zero-Fiat ‘Bitcoin Bond’ Debuts on Bloomberg Terminal

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Hybrid future of standard ATMs may endorse Cryptocurrencies

With the expansion and awareness related to , digital assets, and blockchain technology, the is moving at a relatively fast pace. Reportedly, there are over thousand ATMs that have been installed all the world. However, cryptocurrency enthusiasts have a concern regarding the of any up gradation of the […]
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