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BPSAA | Blockchain Privacy, Security & Adoption Alliance

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BPSAA (Blockchain Privacy, Security Adoption Alliance) goes live assembling crypto gurus from multiple projects for the good of cryptomanity. BPSAA aims to bring collaboration through BPSAA verified projects in order to enhance Privacy, Security, Adoption for users in the crypto realm.

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Projects in the Alliance:
Pirate Chain (Most Anonymous Crypto) https://bpsaa.vision/pirate-chain
Turtle Network (Interoperable DEX w/fiat) https://bpsaa.vision/turtlenetwork
Ether-1 (Decentralized Storage) https://bpsaa.vision/ether1
Sentinal (Decentralized VPN) https://bpsaa.vision/sentinel

Source: https://cryptocoremedia.com/bpsaa-blockchain-privacy-security-adoption-alliance/?utm_source=rss&utm_medium=rss&utm_campaign=bpsaa-blockchain-privacy-security-adoption-alliance

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Adding Coins And Reducing Fees: Will BitMEX Survival Efforts Help Despite The Mandatory KYC?

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BitMEX, one of the world’s leading Bitcoin margin trading exchanges, appears to be taking major steps to increase its value proposition.

In a couple of recent announcements, the exchange said that it’s going to reduce some of its fees while also adding more cryptocurrencies for trading. This comes months after the exchange had to introduce mandatory KYC procedures and following its clash with US regulators.

BitMEX Reducing Fees and Adding Coins

BitMEX used to be the world’s leading Bitcoin margin trading exchange in terms of daily volumes. Now, according to CoinMarketCap, it rests on the third spot after Binance Futures and Huobi.

A couple of days ago, the exchange announced a fee reduction on its linear futures contracts. First, the take fees are reduced to 0.075% on the ALTXBT linear futures contracts, while also adjusting the maker fee to -0.025%. Both changes are to take effect today, October 23rd.

“This change, which applies to all future ALTXBT listings, is intended to align the fee structure across our products and optimize the overall trading experience for this product segment.” – Reads the announcement.

Additionally, the exchange is taking extra steps to add more cryptocurrencies for trading. BitMEX will open trading for Binance Coin, Polkadot, and Yearn Finance’s YFI token based on quanto futures contracts starting October 30th, 2020.

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“These three contracts aim to provide our users with quality coverage of highly liquid products. We plan to introduce several more altcoin product listings before the end of the year.”

Survival Efforts?

It’s no wonder that BitMEX is doing its best to catch up with its competitors. What was once the world’s leading derivatives trading platform is now taking serious steps to catch up.

Binance Futures has introduced a myriad of features for its traders, for the time being, with Huobi following suit close by.

Meanwhile, BitMEX has other issues to worry as well. Towards the beginning of October, the US Commodities and Futures Trading Commission charged the owner-operators of BitMEX with illegally running a derivatives platform. Shortly after, CEO Arthur Hayes and other top-level executives stepped down, highlighting the seriousness of the situation.

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Source: https://cryptopotato.com/adding-coins-and-reducing-fees-will-bitmex-survival-efforts-help-despite-the-mandatory-kyc/

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$300 Million In A Day, $1 Billion In The Last Week – Grayscale’s Impressive AUM Growth

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Amid the most recent cryptocurrency price developments, Grayscale Investments has increased its assets under management (AUM) by over $1 billion in a week. Perhaps even more impressive is the AUM increase in a day – a “cool” $300 million.

Grayscale’s AUM Explodes In October

CryptoPotato reported Grayscale’s Q3 2020 record-breaking earnings last week. The company highlighted that it purchased over $720 million worth of BTC on behalf of its clients. Adding the price performance of the different cryptocurrencies assets under its management, the total AUM grew to $5.9 billion.

Although October started a bit sluggish in terms of price movements, the situation changed approximately a week ago. The total market cap grew with over $40 billion in that time. Most of the gains came after news from PayPal that it will enable its US-based customers to buy, sell, and store cryptocurrencies.

Naturally, as the prices started seeing fresh highs, Grayscale’s AUM felt the effects, and the company reported its growth to $7.3 billion. This meant a $1.4 billion increase in less than a month and a $1 billion expansion in a week.

According to Grayscale CEO Barry Silbert, the PayPal effect marked the addition of a “cool $300 million in AUM in one day.”

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Bitcoin And Ethereum (Still) Lead The Way

Somewhat expectedly, the two largest cryptocurrencies by market cap are responsible for the majority of Grayscale’s AUM. With over $6 billion, the Grayscale Bitcoin Trust accounts for nearly 83% of the total amount, while Ethereum’s share is significantly lower – about 13%.

It’s also worth noting that those are the only two company products directly reporting to the US Securities and Exchange Commission. The Grayscale BTC Trust received such approval months ago. The Grayscale Ethereum Trust filed a Form 10 with the SEC this summer, and the Commission approved it in early October.

As a result, accredited investors who own or purchase shares from either company products’ private placements can take advantage of enhanced liquidity. This is a direct consequence of the reduced statutory holding period from 12 to 6 months.

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Source: https://cryptopotato.com/300-million-in-a-day-1-billion-in-the-last-week-grayscales-impressive-aum-growth/

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How Bitcoin Became Crypto’s Answer to Wine, Whisky and Watches

As Bitcoin trading volumes decline, the asset is being seen as something more like a rare asset than a tradeable currency.

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In brief

  • Data says Bitcoin is being used more as an investment than a tradeable currency.
  • The currency is seen more as a hedge against volatility in fiat markets.
  • It’s now behaving more like assets including fine wine, rare whiskies and classic cars.

Little over 12 months ago, the amount of Bitcoin sloshing through the markets was double that of the second most liquid asset, Ether, the currency of Ethereum. Today the opposite is true. 

In fact, Bitcoin’s trading volume has been declining since 2018, but as we’ve seen in this year, Bitcoin’s price has been ticking up, surpassing $13,000 for the first time this year. 

Bitcoin’s volumes have been declining. CREDIT: Bitcoinity.org

While we know Bitcoin’s price goes up as well as down all the time, crypto market watchers in 2020 seem to be coming to similar conclusions: the nature and scope of this recent Bitcoin bull run looks and feels different. 

In today’s Market Watch (in association with AAX) we’re going to explore why this is and why Bitcoin is now being treated in a similar way to how investors buy and hold luxury items such as wine, whiskey and watches. 

Bitcoin becomes an asset 

First, let’s take a look at how Bitcoin trader behaviour has changed. 

The number of Bitcoin addresses holding more than 0.1 coins, (currently about $1,188) is at an all-time high, and the number of addresses holding more than 100 coins (currently $1,188 million) has reached a six-month high, according to Glassnode.

The number of crypto whales, those holding more than 1,000 BTC has also hit an all-time high in August of this year.

It’s not difficult to see why. According to analytics site Glassnode: “98% of all unspent Bitcoin transactions (UTXOs) are currently in a state of profit.”

This has been a trend that’s been maturing over several years, according to Grayscale’s valuing Bitcoin report. In the paper, Grayscale noticed a marked increase in the number of holders–people holding Bitcoin for longer than three years–versus speculators, people who have moved Bitcoin in the last 90 days. 

Bitcoin is a HODLers delight. CREDIT: Grayscale

The report also indicates that there has never been a higher level of Bitcoin owned for more than a year. Bitcoin is becoming a store of value, and not a trading currency, which we’ll explore more in the next section. 

Ethereum and Tether become the currency of crypto 

As we said earlier, as little as a year ago, Bitcoin was the lifeblood of the cryptocurrency liquidity markets. But things are different now. 

The Ethereum blockchain is now processing more than twice the daily transaction volume of the Bitcoin blockchain, riding a massive wave of growth in stablecoins and the DeFi apps that use them.

A new report from crypto research firm Messari on Q3 activity in DeFi and stablecoins has revealed that the current rolling 30-day average for Ethereum is around $7 billion; Bitcoin’s is under $3 billion.

If current rates hold, Ethereum is on track to see more than $1 trillion in annual transaction volume, a major reversal from 2019, when Bitcoin transaction volume was more than double that of Ethereum. 

Tether, however, isn’t just the most traded stablecoin—Messari found that over the summer, it grew to surpass even Bitcoin with a rolling 30-day average transaction volume of nearly $3.5 billion.

Bitcoin has been toppled from its traditional perch, which is another reason why Bitcoin’s outlook is becoming more a luxury asset than cryptocurrency du jour. In the last section, we look at the similarities between how Bitcoin behaves and how other luxury assets do. 

Bitcoin the fine wine of crypto 

When investors look at whether an asset or commodity is investment-worthy, one aspect they pay attention to is something called the stock-to-flow model. 

This a figure calculated by dividing the existing supply of a commodity with that commodity’s annual production growth. Commodities with high stock-to-flow ratios include gold, silver, wine, art, classic cars, watches and yes, Bitcoin. Let’s take gold as an example.

The World Gold Council says that approximately 190,000 tons of gold has ever been mined. Let’s call this the stock. Every year, the gold industry pulls out of the ground somewhere between 2,500-3,200 tons. This is the Flow. In this instance, the stock to flow ratio of gold is 59. This means it would take 59 years at the current rate to mine 190,000 tons of gold. Meaning its value will hold very well. 

Bitcoin’s stock-to-flow has behaved with a high correlation to this model. In essence, Bitcoin’s value is predicted to go up as the amount of Bitcoin produced trends down with time thanks to the way the network has been built.  

Bitcoin’s stock to flow model. CREDIT: LookintoBitcoin.com

Assets like these are also seen as a hedge against market volatility. 

Most market watchers look at gold as a symbol of investor intent. When the markets are down, the price of gold tends to go up. Which is true, as the charts below attest. As stock markets have become more volatile this year because of COVID-19, so has the price of gold as investors flock to it as a safehaven.

Gold and silver are hedges against market volatility. CREDIT: Goldinfo

But buying and storing gold is difficult, and involves a legion of middlemen who charge for this privilege. 

When investors can’t get their hands on bullion, they look to other rare assets to put their money in, like wine, whisky and watches, among other luxury items. 

The aforementioned assets have to contend with similar aspects of supply and demand, scarcity and availability, which has made investors seek out rare items to hold as an investment. Take whisky for example.

According to the Knight Frank Wealth Report, the rare whisky sector has grown in value by 564% in the past 10 years, with a 5% gain this year. Fine art is up 141%, wine 120%, cars 194% and watches 60%. As stock market performance has faltered this year thanks to a global recession, investors are picking up the finer things and holding them, because like gold, there isn’t many of these luxuries being producted or coming on to the market each year, so their value increases. Let’s look at watches in more detail, in particular, Rolex. 

Rolex makes approximately 800,000 watches per year, giving it a steady supply. However, the availability of those watches is scarce. Waiting lists for popular models can be as high as five years, and access to those waiting lists are given to existing clients who have bought Rolexes before. 

Rolex also regularly discontinues ranges, increasing their scarcity. For example, one type of Rolex, nicknamed “The Hulk” (because it’s all green) was discontinued this year causing its price to spike 200% in a few months. 

That’s lead to a grey market where the price of Rolex watches surpasses what you’d pay at retail, if you could get hold of one, making them a surprisingly good investment. The same applies to certain types of wine, art and cars: there aren’t a lot of them, and they perform better than other asset classes. Just like Bitcoin. 

Bitcoin isn’t gold 

While Bitcoin is often compared to crypto’s answer to gold, this column contends that it’s more akin to a rare consumer commodity than gold thanks to how it’s managed, bought and sold. 

The supply and distribution of gold is handled by big institutions and state actors. It’s also heavily regulated to prevent fake gold entering supply – although it’s harder to keep counterfeit precious metals out of the supply chain than people first thought. 

The supply and distribution of fine items like wine or watches is not managed in the same way. Instead, it’s a marketplace more akin to buying and selling of cryptocurrency. There are brokers, and exchanges, buying and selling to individuals and companies in a more fluid way without the same federal or institutional oversight. And many people want to keep it that way

Bitcoin, like a fine wine gets scarcer with age, and investors are loving it. 

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This sponsored article was created by Decrypt Studio. Learn More about partnering with Decrypt Studio.

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