Bitcoin is on the rise and many investors are excited about its potential. The question is, why is Bitcoin so precious? Although it is too early to know, it appears that many people are interested in Bitcoin as a way to store value. This could help to ensure more long-term success.
Some theories suggest that some Bitcoin buyers may be hedging against other investments, such as gold and equities. This is the right time to invest in Bitcoins if you are an investor who wants to diversify your portfolio by buying digital currency.
This blog will discuss three major reasons why Bitcoin is so popular.
Institutional Adoption of Bitcoin
Institutional investors are increasingly interested in Bitcoin. Two major Bitcoin ETFs (exchange traded fund) have recently been released. This has resulted in a significant increase in institutional trading and investments of Bitcoin and other crypto tokens, as well as by mutual funds, pension funds and hedge funds. You can visit CryptoEngine to start investing in bitcoins.
Cumberland Mining raised $1 billion to fund crypto. According to the firm’s founder, ‘the whole world is moving digital’ and it makes sense to invest in this space. Goldman Sachs, Citigroup and Nasdaq offer bitcoin futures contracts that allow them to trade on behalf of clients.
Two of the most widely used cryptocurrencies are Ethereum and Bitcoin. PayPal recently announced that it will accept Bitcoin for certain transactions via its Braintree Payments subsidiary.
This is a major move by one of the biggest online payment processors. It indicates a shift in the way we pay for things online. Investors may be able to buy cryptocurrency faster with their PayPal account than traditional methods such as bank transfer or credit card, which can take weeks.
This announcement, which comes on the heels of Ethereum and Bitcoin’s recent market caps, could bring in significant money for these currencies as well as big returns for investors who make their investments now before prices rise.
The Impact Of Bitcoin Halving on Its Price
Bitcoin’s public ledger is updated with transaction records by Bitcoin mining. Bitcoin is not like other currencies that are printed by central banks or backed by governments. Instead, it relies on individuals and businesses who use specialized computers to solve complex mathematical problems.
To release new Bitcoins into circulation, these miners perform energy-intensive computations. The Bitcoin protocol states that miners will receive a half-off reward every four years until 21 million Bitcoins have been mined. This is known as a Bitcoin halves.
The inflation rate for bitcoins is reduced by the bitcoin halving. This encourages long-term investments in Bitcoins rather than short-term trading and speculation. This event causes less supply, but the demand for bitcoins remains constant or increases until equilibrium is restored. The demand for Bitcoins is increased by halving its value, which in turn increases its popularity.
Accelerate will plant 3,450 trees per $1 million CA (788,200 US) of investment in The Accelerate Carbon Negative Bitcoin ETF (TSX.ABTC). Accelerate projects that each tree planted will capture 1,000 tons of carbon dioxide.
According to Accelerate’s website, the company plans to sequester ‘over 100 percent of the carbon dioxide emissions estimated to be attributable bitcoin transactions to which ABTC is indirectly exposed.
This year, Bitcoin has been criticized for its environmental impact. Bitcoin consumes approximately 116 trillion watts annually, which is 0.5% of all the world’s electricity.
Accelerate hopes that it can tap into the expanding market for ESG (environmental. social. and governance) investment products. Accelerate, which plants trees, offers tangible environmental offsets that are more tangible than ESG funds. Many of these ESG funds also buy carbon credits.
H3M Environmental Ltd. has been listed as the fund’s Environmental Advisor. This will be responsible for the ABTC’s decarbonisation efforts, including tree planting.
The fund won’t hold Bitcoin, but will provide investors exposure to Bitcoin performance via Bitcoin futures contracts that are traded on the Chicago Mercantile Exchange.
ABTC will trade on Tuesday at the Toronto Stock Exchange. There is a 0.69% management fee. As the principal portfolio manager, Julian Klymochko (President, Director, CEO, and CIO at Accelerate) will be responsible for managing and advising the fund.
In February, Canada launched the Purpose Bitcoin ETF (TSX.BTCC.B), its first Bitcoin ETF. The Purpose Bitcoin Exchange Trade Fund (TSX:BTCC.B) is physically backed. This means that the fund can hold Bitcoin directly. Since its inception, the fund has managed an impressive $1.1 trillion.
A man from Ohio who ran a cryptocurrency laundering company has pleaded guilty in federal court to money laundering conspiracy.
Larry Dean Harmon, 38 years old, from Akron, Ohio, confessed Tuesday to operating ‘Helix,’ which is a Darknet Bitcoin mixer. Harmon also pleaded guilty to the charges and agreed to forfeit over 4,400 bitcoin, which is worth more than $200,000,000 at Wednesday’s market price.
Harmon could face a maximum sentence of 20 years imprisonment, a $500,000 fine or twice the amount of the property in the scheme, and a term of supervised freedom of no more than three years. Harmon also faces mandatory restitution.
Customers who purchased ‘Helix’ between 2014 and 2017 were permitted to send bitcoin to individuals in a manner that concealed the’source or ‘owner of the bitcoin.
Harmon also operated ‘Grams’, a Darknet search engine that customers used to conceal their transactions from law enforcement. Helix promoted ‘Grams’ to both new and old users.
Harmon disclosed that he had worked with many Darknet markets, including AlphaBay and Evolution, Cloud 9 and other companies to provide customers with bitcoin money-laundering services. Helix processed over 350,000 bitcoin for customers, which was worth more than $300 million at the time. Darknet markets accounted for the majority of bitcoins.
Harmon also stated that he collaborated with Darknet service administrators and Darknet operators to launder bitcoins derived from drug-trafficking crimes.
Assistant Attorney General Kenneth A. stated that Harmon was being held accountable. This has prevented illegal money laundering by these criminal enterprises. Polite Jr., of the Justice Department’s Criminal Division released a press release.
Polite stated that the Justice Department will continue to work with law enforcement and regulatory partners to pursue enforcement actions to identify those who use illicit means to gain financial gain and those who use Darknet to conceal their criminal activities.
In a press release, Acting U.S. attorney Channing D. Philips for the District of Columbia stated that “Darknet markets” and dealers selling opioids and other illegal drugs are a growing problem.
They may hide their identities or launder millions of dollars through Helix technologies. Phillips said that the department and its law enforcement partners would shine a light upon their activities, dismantle any infrastructure these criminal markets depend on, and prosecute those responsible.
At this time, no trial date has been set.
Bitcoinmania is back and prices have risen 50% in the last week. How can you trade it? Bitcoin is volatile, both on the upside and down, and it also doesn’t offer a steady income stream.
Options are a great way to generate income. We also get exposure to blockchain technology.
Coinbase (COINWe could also look into options income strategies for that stock.
Another, perhaps less volatile way, would be to trade covered calls on the Amplify Transformational Data Sharing ETF ( BLOK).
Although this exchange traded fund can still be volatile, it should be less volatile than Bitcoin or some crypto stocks.
BLOK includes stocks of companies involved in the development and use of blockchain technologies such as PayPal (PYPL),Square (SQ), Marathon Digital (MARA (Nvidia (NVDA).
Let’s take a look at what a covered call trade might look like on BLOK.
How to Trade Bitcoin: Building The Covered Call
A 100 share purchase of BLOK would run around $5,100.
Monday’s trading price for a September-expiration 55 call option was $1.55 per share. This generated $155 in premium per contract.
The call option can be sold for a total of 3.13%, which is equivalent to around 30% annually.
The trade also has upside potential by selling the call out-of-the money.
If BLOK closes higher than 55 on the expiration day, the shares will be called out at 55. The trader will make a total profit $555 (gain from the shares purchased at 51 per share plus the $155 option bonus). This is a 10.9% return.
The downside to trading this Bitcoin-linked ETF, however, is the possibility that it could drop. This could result in a loss of any profits from selling the call.
Remember that options can be risky and investors could lose all of their investment.
This article is not intended to be a trading recommendation but an educational tool. Always do your research and consult your financial advisor before you make any investment decisions. He is a specialist in income trading with options. He is conservative in his approach and believes patience is key to trading success. Follow him on Twitter @OptiontradinIQ
Non-crypto users may be familiar with the term “bitcoin”, while Polygon and Matic are yet to become viral in all senses of the word. It is easy to see why Indians believe in foreign cryptocurrency more than they do their own.
Bitcoin is one of the oldest and most popular virtual currencies. Bitcoin is widely used to bypass currency controls not only in China but also in Greece and other countries. Bitcoin is very popular in India. The volume of rupee trading in Bitcoin has exploded this year, with more than 2,500 Indians trading bitcoins every day.
Interest in bitcoin has exploded since the November 8 demonetization of 86% Indian currency. According to some estimates, rupee-denominated Bitcoin trades generate the third largest volumes of bitcoin transactions after the Yen and the dollar. As trading volumes increased, bitcoin prices shot through the roof. Bitcoin was trading at $429 per currency in January 2016. It reached $4,969 in February 2016.
The virtual currency was created to facilitate transactions between people who didn’t know each other. There is no oversight from central banks or governments. Each bitcoin is made up of unique computer codes. Each bitcoin can be divided into fractions, and each fraction is identified with unique codes.
In honor of its creator, the smallest fraction is called the “Satoshi”. A combination of private and public keys can identify each coin and its owner. The coin is identified by the public key, which everyone knows. Only the owners have access to the private key, which allows them to identify themselves. Or, to put it another way: owners are the owners because of their private key.
The Details of Matic, Polygon
Polygon – An Indian origin network, Polygon was created by Jaynti Kanani (Sandeep Nailwal), Anurag Arjun (Mihilo Bjelic) The startup is located in Mumbai. Polygon, which is described as “Ethereum’s Internet of Blockchains”, is emerging as a viable option for a few exceptional projects. Ethereum 2.0 is still in development. Because of its high throughput and low gas costs, it has been popularized by developers and clients.
Bitcoin is more popular than Matic (Polygon).
This idea of “going with the trends” is the basis of the whole concept of cryptocurrency’s growing popularity. The majority of cryptocurrency buyers follow the trend. In an interview, Sandeep Nailwal (previously Matic), Co-Founder and COO at Mark Cuban-backed Polygon, stated that most of the crypto community still invests in speculative assets.
This is why so many people are buying Bitcoin. Polygon is a platform that is technology-driven and has a solid infrastructure. It focuses on expanding the ecosystem of blockchain developers. Polygon, Ethereum and similar tech-centric goods have been preferred by people who understand crypto technology and consider it a long-term investment option. Bitcoin’s popularity is due to its accessibility to trading platforms, the lack of understanding by people about crypto technology, as well as endorsements from famous figures.
Ironically, given CEO Jamie Dimon’s long-standing distrust of the industry and JPM organ’s alleged role in making it the first major US bank to offer all wealth-management clients access to cryptocurrency funds , JPM organ is reportedly the first US bank to do so.
JP Morgan’s $630billion wealth management division now allows advisors to accept orders to purchase and sell five cryptocurrency products. These include Grayscale’s Bitcoin Trust and Bitcoin Cash Trust, Ethereum Trust and Ethereum Classic products and Osprey Funds’ Bitcoin Trust. According to an internal memo obtained from Business Insider, the policy change was effective July 19.
All JPMorgan clients are subject to the new policy, which includes self-directed clients who use the Chase trading app, wealthy clients of JPMorgan Advisors and the highest tier of private bank clients. Clients must request to trade crypto, and advisors cannot recommend crypto products.
JPM previously only allowed private clients to invest in a bitcoin fund that was actively managed. Crypto firm NYDIG provided custody services.
JPMorgan clients now have greater access to crypto products. This is especially true after bitcoin reached its record-breaking price of $65,654 in April 2021. The market has declined since then – bitcoin trades at $32,263 at the time of writing – but there is still strong retail demand to gain exposure to volatile assets as a store-of value or portfolio diversifier. Mary Callahan Erdoes, JPMorgan’s asset and wealth-management chief, told Bloomberg in July that many of the bank’s clients want to invest in digital currencies.
Watchers will be watching to see if any other Wall Street banks offer limited crypto exposure to selected clients. Morgan Stanley offered clients with assets of at least $2,000,000 access to three bitcoin-exposed funds in March. Goldman Sachs started offering crypto futures trading in June to institutional clients.
At the time of publication, Osprey, Grayscale and JP Morgan had not responded to requests for comment.
United States city Jackson, Tennessee continues to explore cryptocurrencies and is now accepting Bitcoin ( BTC) as property tax payments.
Scott Conger , Jackson Mayor, announced that the city’s Blockchain Task Force had launched a study to determine how Bitcoin could be used to receive property taxes payments.
The blockchain group will also examine how employees can dollar-cost average Bitcoin or buy smaller amounts over a regular time period. The best strategy to accumulate Bitcoin is dollar-cost averaging Bitcoin purchase, multiple research confirmed.
Conger had previously taken to Twitter to criticize the U.S. Dollar devaluation and ongoing inflation, saying that Bitcoin was the “only solution”.
Why accept inflation? 6.3% in two years. In my lifetime, 172.8%. Each year, our dollar is worth less. There is no rebound.
This is the only solution. #Bitcoin
Mayor Scott Conger (@MayorConger).July 16, 2021
This announcement updates Jackson’s larger crypto-related plans, which Conger announced in April. The city is actively looking at ways to pay its employees in cryptocurrency. This includes adopting Bitcoin mining operations, and adding BTC to the city’s balance sheets. Conger suggested previously that payments could also be made in Ether (ETH) or Litecoin( LTC) by the city.
As previously reported, Conger followed the lead of Miami Mayor Francis Suarez who was pushing for the adoption of tax and salary payments made in Bitcoin. Conger is also well-known for his adoption of ‘laser eyes’, a part the flash mob that supports Bitcoin’s potential rise to $100,000. According to data compiled by CoinGecko, Bitcoin trades at $31,732, a 2.5% drop over the last 24 hours.
Most major cryptocurrency have enjoyed relative peace and quiet over the past seven days, led by bitcoin. According to crypto data aggregator COIN360, Bitcoin and Ethereum have traded at -0.69% and respectively -4.46% for the week. Binance’s BNB has gained 6.95% in the same time period and Dogecoin is down 8.28%.
At 8.06 AM ET, bitcoin was still at resistance at $33,576 ET, bitcoin still faces resistance at $33,576 but on-chain metrics have become more bullish. shared data from Blockchain Data and Intelligence provider Glassnode that ‘bitcoin exchange accounts have begun to show signs of sustained inflows’. Over the past three weeks, approximately 40,000 BTC (or $1.37 billion) have been withdrawn, reverseing weeks of inflows that occurred during the 50% market crash. These withdrawals indicate that traders are shifting their funds to other wallets and not looking to sell in near future.
There have been some notable altcoins. EOS, the native cryptocurrency on the EOS.IO Blockchain platform, rose nearly 11% over the past few days after the announcement by crypto startup Bullish that it is preparing to go public via a $9B SPAC deal. Bullish, the company behind EOS, received a $100 million capital injection and digital assets from Block.one. After the transaction closes, Bullish’s chairman will be Brendan Blumer, Block.one CEO.
Terra (LUNA) is another altcoin winner for the week. It is a native token of the protocol that issues fiat-pegged stablecoins. This is up 30.86%. After the volatility of May, the token appears to be back on its feet. Terraform Labs, creator of the project, contributed approximately $70 million on July 7 to increase the reserve of Anchor’s savings protocol Anchor. LUNA’s market capitalization has jumped from $300 Million to $3.4 Billon since January.
All eyes will be on the Grayscale Bitcoin Trust’s (16,240) largest release of locked shares (GBTC), which is scheduled for July 17. In total, 40,000 shares are set to be unlocked over the next few weeks.
Trusts are private placements where qualified investors can purchase shares directly from Grayscale. Investors must hold their shares for six month before selling them on secondary markets. Institutions looking to gain exposure to bitcoin quickly saw a lot of interest in GBTC in the late 2020 and early 2021.
There are many opinions on the impact of this event on the market. JPMorgan strategists believe that selling will increase pressure on cryptocurrency. The bank’s analysts wrote that the selling of GBTC shares after the six-month lockup period in June and July had been a headwind for bitcoin. This note was issued earlier in June. “Despite some improvements, our signals remain overall bearish.”
However, analysts at cryptocurrency exchange Kraken disagree. They believe that market structure does not suggest that the unlock will have a significant impact on BTC spot markets, if any, as some claim. It is one of the most anticipated events this week, regardless of whether or not it creates price action.
Based on the computing power available on the network, the bitcoin network adjusts the difficulty of finding a block every two weeks. This means that new blocks are added approximately every 10 minutes. The market is showing signs of slowing down, but the miners remaining, particularly those from outside China, will be able to make higher profits in the short term.
Bitcoin is still struggling to break the $34,000 mark. As of 6:50 AM, it was trading at $34,618. ET. Coinbase data shows that bitcoin’s price ranged between $33,197 to $35,909 in the past five days with a 5-day variation of +2.4%.
Pankaj Balani (CEO of the crypto derivatives platform Delta Exchange) wrote that Bitcoin is currently in a consolidation phase, between $30,000 and $42,000, and that it will spend the next few week testing this range on either end. There are not many catalysts that could cause a break in the upside for the near term. However, the weakness in economic data is a concern.
A weakness in the wider markets or a reduction in liquidity could cause bitcoin to drop sharply. This is reflected in options data, with puts trading at an advantage over calls for July and august expiry.
These observations are in line with a general cooling of the market following volatile weeks. The short-term volatility has now fallen to 2-months, reports Norwegian crypto analytics company Arcane Research.
Crypto Whales are still hungry
Analysts are trying to find clearer signals in the wider market amid this relative calm, and crypto whales (individuals/entities with large crypto holdings) are ostensibly purchasing.
Will Clemente, an analyst on the chain, stated that 18 new whales appeared on the blockchain on July 2. The total amount of bitcoin held by whale entities jumped by 82.760 BTC (or $2.87 billion at current price). Clemente writes that the spike “leads to me to believe that we may finally see some new big buyers” (a bullish signal).
A new survey from Nickel Digital Asset Management, a $200 million U.K. cryptocurrency hedge fund, revealed that 82% institutional investors and wealth mangers from the U.S.A.E., U.K. and France were interested in investing in cryptocurrencies. Who are currently exposed to cryptocurrencies or digital assets and expect to increase their crypto holdings in 2023.
However, not everyone believes we are out the bearish woods. Jarvis Labs is a trading and analytics platform that employs crypto economist Ben Lilly. ‘While it would not surprise us to see the price rise, we are leaning toward downside movements in the short term.
This means that even if the price rises, we believe it will lose momentum and eventually retest the $32-30,000 support.
Other top cryptocurrency coins like Ethereum, BNB and Cardano are also up by 4.2% to 9.2%, 2.8% to 2.1% and 2.1% respectively.
Despite the worldwide pandemic that has impacted the global economy, the cryptocurrency market has been booming. To meet the growing demand for Bitcoin and other cryptocurrency, there have been many startups in the crypto market.
The value of Bitcoin has increased significantly over the years. This has led many companies to accept crypto for payment and transactions. Many companies are now paying their employees in Bitcoin. It is not unusual for crypto businesses to pay their employees with local coins.
Let’s take a look at the top companies that pay their employees in Bitcoin.
GMO Internet Group is focused on the development of internet infrastructure, online media, internet finance, cryptocurrencies, and internet advertising. GMO works with families, financial intermediaries, and sophisticated institutions to offer innovative solutions that meet customer needs.
GMO announced last year that employees would begin receiving Bitcoin payments. This was done to promote and develop cryptocurrencies. GMO Japan Headquarters offered the opportunity to 4000 employees.
Spot.IM, formerly known as OpenWeb is a platform that aims to democratize online conversations and improve their quality. Spot.IM uses AI and machine-learning to encourage healthy dialogue, reduce toxicity and increase engagement among diverse communities.
The company opened its own cryptocurrency Exchange where all monthly salaries will be converted into Bitcoin and sent to employees’ digital accounts. The average of the highest Bitcoin value on the date of transfer is used to determine the amount of payments.
SC5 is an internet technology company in Finland that develops software and other services. It also performs migration assessments and technical evaluations. The company also develops and implements solutions, from concepttion to post-analysis. SC5 began paying its employees in Bitcoin in 2013
Fairlay is both a Bitcoin prediction/betting marketplace and a cryptocurrency exchange. The company was founded in 2013 and aims to provide reliable information for everyone. Its predictions were primarily based on sports. With the development of the company, the company moved towards crypto predictions. It now offers one of the most popular cryptocurrency betting platforms.
Fairlay, a crypto-exchange, has been paying its employees in Bitcoin since the beginning.
Purse.io was founded in 2014. It provides users with unused Amazon gift certificates and allows them to purchase products from Amazon using crypto. Purse.io’s employees are paid in Bitcoin Cash. This service is designed to make crypto more usable. It allows users to identify their discounts when shopping on Amazon. It allows shoppers to exchange Amazon gift cards for Bitcoin.
Bitwage provides services such as payroll, invoicing and digital assets to help companies and workers. Over 5000 people have applied to Coinality’s service, which pays in Bitcoin, since its inception in 2013. Bitwage is a service that converts fiat currency salaries to cryptocurrencies. It is available for all employees in Europe, the US and the UK.