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BITCOIN HAS BEEN PROFITABLE FOR 98.66% OF ITS HISTORY

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Bitcoin holders have made easier profits than traders who buys and sells it consecutively, according to data provided by Rhythm Trader.

BITCOIN HAS BEEN PROFITABLE FOR 98.66% OF ITS HISTORY

Bitcoin holders have made easier profits than traders who buys and sells it consecutively, according to data provided by Rhythm Trader.


The prominent cryptocurrency analyst found that bitcoin has been profitable for 3,817 days out of 3,869 days of its existence. That makes 98.66 percent of its history. He added that the only people who lost money in the bitcoin market are the ones who exited during downtrends. On the other hand, the ones who kept holding the cryptocurrency regardless of bias pressure made the maximum profits.

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Green shows where buying bitcoin has been profitable | Image Credits: Rhythm Trader

TO HOLD BITCOIN OR NOT

The revelation came amidst an ongoing discussion about whether or not bitcoin is an ideal store of value asset. Those who support the narrative believes bitcoin is no less than gold, i.e., it exhibits a similar scarcity as the yellow metal but excels when it comes to storing and transacting it without permission. Those who are against the narrative believes bitcoin’s underlying price volatility makes it a poor store of value asset.

Between the two narratives are traders who treat bitcoin as a pure speculative vehicle. Their day job is to make money off the cryptocurrency’s intraday price fluctuations. If they are whales, they could move the market exponentially to either direction. And if they are small fishes, they could merely tail the bias until it stops making a profit for them.

The volatility tends to go down if speculators either turns into a believer, i.e., a holder, or an outright hater who do not want to do anything with bitcoin. With the store of value narrative becoming more popular, thanks to the gloomy macroeconomic outlook that is sending investors looking for non-correlated assets for hedging, bitcoin is promising to bring more speculators to its market. It means they would come under the cryptocurrency’s roof to take shelter from an economic storm, but their decision to stay under the roof entirely depends on whether or not they find bitcoin impressive.

Famous trader and cryptocurrency analyst Tony Vays believes bitcoin has enough use-cases to impress an outsider.

“Bitcoin might be the greatest store of value in the history of the world. Yes, it’s volatile — as it’s only been useful for about seven years — but its ‘un-confiscability’ property is unmatched. That is its true store of value, as gold is confiscatable and all other assets even easier.”

THE CASE STUDY CALLED GOLD

Supporters also cite Gold for its volatility in the earlier years as a store of value asset. After former US President Richard Nixon switched from the Gold standard to the US dollar standard in 1971, it unhooked the yellow metal from its stability for years.

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The comparison puts bitcoin in the category of the potential store of value assets. If the narrative develops any further, the investors under the bitcoin’s roof might turn into long-term holders.

Now that people know that holders have made reasonable profits, the narrative appears to be developing already.

Are you a bitcoin holder or trader? Tell us in the comments below.

Bitcoin News

Billionaire investor Ray Dalio trashes Bitcoin as ‘too volatile,’ praises Libra

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“Cash is trash,” said billionaire investor Ray Dalio in an interview with CNBC yesterday at the annual World Economic Forum in Davos, Switzerland. But Bitcoin’s no better. 

“Cash is trash,” said billionaire investor Ray Dalio in an interview with CNBC yesterday at the annual World Economic Forum in Davos, Switzerland. But Bitcoin’s no better.

“There are two purposes of money; a medium of exchange and a store holder of wealth. And Bitcoin is not effective in either of those cases now,” he said. “It’s too volatile. Because of the volatility, you can’t go next to it,” he added.

Dalio runs Bridgewater, one of the world’s largest investment funds, with around $160 billion in assets, according to the firm’s website.

Dalio was more optimistic about Libra, the so-called stablecoin network run by the Facebook-led Libra Association. The value of its stablecoin is pegged to a basket of fiat assets, such as the pound and the dollar, with the Libra Association determining the ratio of the baskets. Dario said this could make Libra more stable than Bitcoin.

Libra’s slated to come out in the second half of this year—if it ever comes out at all, that is, since regulators have panned it and many European finance ministers have vowed to block its development. Indeed, the President of Switzerland, the country Dalio was speaking from, and the country the Libra Association is based in, has called Libra a failure.

Dalio’s gripe with cash is that banks can print as much money as they want, meaning it doesn’t have intrinsic value. “The depreciation of the exchange rate and the printing of money, I think, over the next few years, is going to be the biggest thing,” he said.

“If you get a downturn—and there’s a good probability in the next [presidential] term you’ll get a downturn—and you don’t have effective monetary policy and you have people at each other’s throats, I’m worried about that,” Dalio said.

So if not Bitcoin, Libra, or cash, then what?

“You have to have a well diversified portfolio,” he told CNBC. “You have to have a certain amount of gold in your portfolio, or something that’s hard…you have to have balance.”

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Raiz Will Soon Offer A Bitcoin Fund to Australian Retail Investors

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Raiz Will Soon Offer A Bitcoin Fund to Australian Retail Investors
Raiz Will Soon Offer A Bitcoin Fund to Australian Retail Investors

Australian micro-investment startup Raiz is set to bring Bitcoin (BTC) fund options to its users, Australian Financial Review (AFR) reports on Jan. 20. The firm cleared the last legal hurdle with the Australian Securities and Investment Commission (ASIC), the country’s financial watchdog agency. Raiz is a fin-tech startup offering micro-investment services to its 300,000 registered accounts. 

Like the United States-based Acorns and other worldwide startups, it “rounds up” the spare change from the users’ purchases to invest it in a set of investment products, generally comprising exchange-traded funds (ETFs). According to AFR sources, Raiz has been pushing to include Bitcoin in its offering and has reportedly obtained a relief from ASIC to operate the fund. 

This was seemingly the last legal hurdle, paving the way for implementation in the first half of 2020. The proposed Bitcoin retail fund is said to only allocate five percent to a direct Bitcoin exposure, with the remainder composed of ETFs. According to December figures, Raiz has 445 million Australian dollars ($305 million)  in funds under management from 211,000 paying customers.

Regulators have in the past taken a very cautious stance to cryptocurrencies. As reported in May 2019, the country’s regulators released detailed guidelines for miners, exchanges and initial coin offering projects. Specifically, it reiterated the need for cryptocurrency businesses to apply for all the relevant licenses and to adhere to its Anti-Money Laundering and Know Your Customer regulations. Other government representatives remained skeptical of decentralized currencies. 

Australia’s Central Bank published a study arguing that cryptocurrencies are unlikely to replace the Australian dollar, citing primarily usability and scalability concerns. In November, the Australian Minister of Home Affairs warned that cryptocurrencies facilitated terrorism by obfuscating their financial activities.

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Crypto Hater Peter Schiff Lost His Bitcoin

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Crypto Hater Peter Schiff Lost His Bitcoin
Crypto Hater Peter Schiff Lost His Bitcoin

On Jan. 19, famous crypto skeptic and gold bug Peter Schiff claimed on Twitter that he has lost access to his Bitcoin wallet and that his password is no longer valid. Schiff added that his BTC is now intrinsically worthless and has no market value. He also added that:

“I knew owning Bitcoin was a bad idea, I just never realized it was this bad!”

After Schiff tweeted about his loss, the crypto community was quick to jump to the rescue. For example, co-founder and partner at Morgan Creek Digital Anthony Pompliano responding by asking if he forgot his password, to which Schiff has responded that, “My wallet forgot my password.” Pompliano then asked Schiff to email him directly:

“The software just executes the commands that humans give it. It can’t ‘forget’ anything. Email me and I’ll try to help you recover the lost Bitcoin.”

However it looks like the BTC may indeed be gone for good, as Schiff responded:

“Eric Voorhees set up the wallet for me and even he thinks there is nothing I can do. But you’re welcome to try if you have any ideas.”

Schiff is known for being an outspoken critic of cryptocurrencies. Just before the New Year, he claimed that unlike every other asset class, BTC was not rising toward the end of the calendar year. In late November, Schiff claimed in a Twitter debate that the price of BTC would drop to $1,000 to “complete the pattern.”

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