Connect with us

Blockchain

JPMorgan: BTC Cannot Diversify Portfolios Like We Think

Avatar

Published

on

JPMorgan keeps talking about bitcoin as of late. Recently, analysts from the financial giant claimed that if it didn’t spike back to $40,000 soon, traders would likely see their portfolios dwindle and their stashes were likely to experience major suffering. With the asset’s recent $9,000 drop after reaching its new all-time high, one must wonder if it will take a while before BTC jumps into $40,000 territory again.

JPMorgan: Bitcoin Is Not as Strong as We Think

Now JPMorgan is claiming that the digital currency is not the best way to diversify one’s portfolio. They claim that the recent attitude of bitcoin serving as a hedge tool is not entirely true, and that in the past, it hasn’t done well when it comes to knocking out the effects of drooping assets.

Ever since the coronavirus pandemic began battering the world’s financial markets, bitcoin and cryptocurrencies have taken on new forms. It used to be that bitcoin, for example, was nothing but a speculative asset; something that was risky, but that could still make a person rich overnight if they played their cards correctly.

However, following the introduction of COVID-19, many people view bitcoin in an entirely new light. They see it as an asset that could potentially keep their portfolios straight and safe during times of economic strife. As a result of this newfound respect, the asset has spiked into hardcore five-figure territory, and many analysts believe the asset could see six-figure territory of $100,000 or more before the year is out.

But JPMorgan doesn’t quite agree. In a recent report, the financial firm states that the asset remains mostly popular with retail investors and claim that’s why bitcoin is still hugely tied to “cyclical assets.” Thus, major selloffs and dips aren’t likely to disappear from bitcoin’s future anytime soon.

John Normand and Federico Manicardi – analysts with the company – wrote in the report that bitcoin was the “least reliable hedge during periods of acute market stress.” They also said that while they can understand why investors would be so intrigued by it, bitcoin isn’t likely to behave like a “traditional defensive asset” at any point in the coming future.

They write:

The mainstreaming of crypto ownership is raising correlations with cyclical assets, potentially converting them from insurance to leverage.

They also stated that while in previous years the asset has had low correlation with precious metals and fiat, in recent days it is moving more in tandem with standard investing tools, and thus it isn’t likely to perform the diversification that many traders believe it will.

The analysts say:

If sustained, this development could erode diversification value over time.

The Biggest Surge in Financial History?

Still, not all their sentiment was negative. The report ends with:

Whether cryptocurrencies are judged eventually as a financial innovation or a speculative bubble, bitcoin has already achieved the fastest-ever price appreciation of any must-have asset.

Tags: , , Source: https://www.livebitcoinnews.com/jpmorgan-bitcoin-is-not-a-hedge-tool-not-likely-to-be-in-the-future/

Blockchain

NFTs are changing the world of art and it is just getting started

TL;DR Breakdown Non-fungible tokens (NFTs) are changing the way art works in a crypto-related world. The subsector is bringing power back to the artists by ensuring authenticity and originality. The industry has seen a re-emergence in recent times as record sales are being recorded. If you mention the words “Bitcoin,” “Ethereum,” or “Cryptocurrency” next to […]

Avatar

Published

on

TL;DR Breakdown

  • Non-fungible tokens (NFTs) are changing the way art works in a crypto-related world.
  • The subsector is bringing power back to the artists by ensuring authenticity and originality.
  • The industry has seen a re-emergence in recent times as record sales are being recorded.

If you mention the words “Bitcoin,” “Ethereum,” or “Cryptocurrency” next to any digital savvy individual, they probably have an idea of what you’re talking about. But if you should mention NFT, only a few familiar with the cryptocurrency market and blockchain technology would actually be able to understand you. A non-fungible token (NFT) is a cryptographic token that represents something unique. They are ideal for unique digital items. While they are built on a blockchain network like cryptocurrencies, its difference lies in the fact that one token cannot be interchanged with another.

The crypto industry has been with us for close to a decade but NFTs did not start gaining public attention until the Crytptokitties project became popular around 2017. Cryptokitties is a game on the Ethereum network in which players buy, sell, and breed cats which are represented by unique tokens that are created by a smart contract. The game made many people aware of NFT and opened many to its potential, however this was short-lived. But towards the tail end of 2020, the crypto subsector began to re-emerge and today, news of how multimillion sales are being made dominates the headline.

One sector that has benefited most from NFT is the art world. For years, digital artists have struggled with protecting their copyrights and monetizing their works online. This has now changed with NFT. With these tokens, digital artists are able to create their works and sell them online, with the buyer getting a unique token which certifies authenticity. 

NFTs and its Smart contract possess unique attributes like owner identity, accurate location of the artwork, web links, etc., which can be embedded in the work of art. Beyond this, Defi platforms and apps such as Raribles, Zora, Nifty Getaway, Foundation, and SuperRare have also emerged. All these platforms enable creatives of any kind, including digital artists, to monetize their creations.

What has spurred the growth of this space is the quest to own collectibles. For years, people have paid huge amounts of money to own physical collectibles like baseball cards, Pokémon Go cards, etc. This mania is now re-enacting itself in the digital space as well. Dapper Labs, the company that created CryptoKitties is leading the scene with NBA Top Shots.

The growth of the digital art space due to non-fungible tokens is unprecedented. In the opinion of some analysts, it is reminiscent of the Renaissance period in art. According to Ben Gentili, the digital artist whose work Block 21 sold for more than $130,000 back in 2020, “non-fungible tokens have created a paradigm shift in the art world with power returning to the hands of the artist.” He made reference to a similar scenario during the Renaissance. 

What he forgot to mention is that the present phenomenon has more in common with the Renaissance than just giving the artists the power back. According to Art historian Alexander Nagel, concepts such as authenticity and forgery meant nothing in art until the Renaissance period. Today, it is that same concept of authenticity that NFT is bringing back to art. This is what made it possible for Chris Torres to sell his Nyan cat meme for $590,000 by adding an NFT, which distinguished that particular copy from the millions that are on the internet.

Recently, the musician Grimes collaborated with the digital artist Max Boucher to release the WarNymph collection that sold for a record $5.8 million. This is quite close to the record made by Beeple with his $6.6 million sale of CROSSROADS on Nifty Getaway. At present, the total value of NFTs sold is over $250 million.

The traditional art auctioneers are not missing out on the action either. As far back as October 2020, Christie’s auctioned Ben Gentili’s digital artwork, Block 21, which had 18 bidders and sold for more than $130,000. In its first purely digital art auction, a collection of Beeple artworks reached over $1 million in bids under 10 minutes of going up for sale. These further point to how in-demand NFT artworks are at present.

NFT and the crypto space

The crypto market stands to benefit a lot from the growing popularity of NFT. This boom also means that the adoption of crypto will increase substantially as the transactions for these non-fungible tokens are usually in cryptocurrencies. Even Christie’s is accepting ETH for its latest digital art collection auction.

With the ability of NFT to be applied across various industries such as art, gaming, ticketing and events, collectibles, and even in real estate, the growth of NFT will spur crypto adoption at an incredible rate.

Is NFT all glittering?

While NFT is already making waves and has a lot of uses and potential, it is important to understand that it is still in its early stages. Even the blockchain technology it is built on is still evolving. Thus, it is not without its challenges.

At present, the technicalities involved in using NFT platforms are a major challenge. The additional charges also represent a challenge, and the safety of the artwork, which is generally not stored on blockchain but a different website, remains questionable. However, it is too early to know how these challenges will be dealt with.

Conclusion

There is no doubt that NFTs have disrupted the paradigm of the art world, giving digital artists control over their works. While many critics have criticized the simplicity of the artworks that sell for so much, it is impossible to ignore the positive possibilities that this means for the industry as a whole.

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://www.cryptopolitan.com/nfts-are-changing-the-world-of-art/

Continue Reading

Blockchain

Marc Lasry and former CFTC chair Giancarlo invest in BlockTower Capital

BlockTower Capital, a crypto industry investment firm, has received investments from billionaire hedge funder Marc Lasry and J. Christopher Giancarlo, the former CFTC chair.

The post Marc Lasry and former CFTC chair Giancarlo invest in BlockTower Capital appeared first on The Block.

Avatar

Published

on

BlockTower Capital, a crypto industry investment firm, has received investments from billionaire hedge funder Marc Lasry and J. Christopher Giancarlo, the former chairman of the Commodity Futures Trading Commission.

The investments were reported by Bloomberg. With the investments, the amount of which was not disclosed, BlockTower is added the co-founder of private equity firm Avenue Capital Group as well as a former regulator and proponent of a digital dollar to its investor ranks.

Lasry notably predicted in the summer of 2018 that bitcoin’s price could top $40,000, as reported by CNBC at the time. He also said that he’d personally invested in bitcoin. At press time, the price of bitcoin is roughly $47,750, according to Coinbase.

According to Dealroom, BlockTower’s portfolio includes Dapper Labs, the blockchain startup behind NBA Top Shot and CryptoKitties, Solana and Origin Protocol.

Disclosure: BlockTower is an equity investor in The Block.

Related Reading

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://www.theblockcrypto.com/linked/96888/marc-lasry-former-cftc-chair-giancarlo-invest-in-blocktower-capital?utm_source=rss&utm_medium=rss

Continue Reading

Blockchain

ChiliZ To Expand Operations, Will Invest $50 Million in the US

Avatar

Published

on

Following milestone partnerships with sports teams in Europe, ChiliZ have their eyes set on conquering the United States. The fintech platform will open a new office in one of the world’s major commercial cities, New York.

ChiliZ To Set Up New York Office

Maltese blockchain giant, ChiliZ is scaling up operations after securing several partnerships with top European sports franchises. Reuters reported earlier today that the fan engagement platform would open an office and invest $50 million in the United States. According to its chief executive, Alexandre Dreyfus, the move should bring the firm within reach of top United States sports outfits. He told Reuters :

“A huge focal point for us in our global growth plans is the U.S.. That’s why we’re opening a New York office and investing $50 million into the country’s sports industry in order to launch Fan Tokens with leading franchises from the five major U.S. sports leagues”

On launching Fan tokens, ChiliZ has made headway through its subsidiary, Socios. It has partnered with football behemoths like FC Barcelona, Juventus, Paris Saint-Germain, AS Roma, Galatasaray, and Atlético de Madrid to launch branded fan tokens. These permit owners to engage in club polls, access VIP rewards, and partake in chat forums.

The company currently has offices in Malta, France, Turkey, Korea, Switzerland, and South America. It had earlier announced that it would open offices in New York and Madrid. With the New York office inching towards reality, Chiliz is undoubtedly advancing towards global growth.

Aims To Double Up on 2020 Revenue

Speaking further about the expansion, Dreyfus boasted about his company’s capacity to generate returns for its partners in the sports and entertainment industry. He said:

“We head to the U.S. with a proven track record in generating millions of dollars of revenue for some of Europe’s biggest sporting organisations. In 2020, we shared more than $30 million with our partners, but this year we’re targeting a minimum of $60 million.”

Revenue from the company’s partnership with seven-time European champions AC Milan proves Dreyfus is not bluffing. The Italian football giant launched its token ($ACM) on Binance on February 24th. Within hours of the launch, over $6 million was generated as trading volume hit $50 million in the first 30 minutes.

Big Market For ChiliZ?

For Joseph Edwards, Enigma Securities head of researcher, there is no better time to seize the initiative. He opined that the soaring interest in NFTs indicates a big market. He elaborated further that NFTs bridge the gap between fans and their subject of interest, especially as Covid-19 caused a disconnection.

“Fan tokens right now are just hitting the perfect itch at the perfect time – fans are disconnected physically from their fandom, and this helps bridge that gap,”

NBA Top Shots seems to be a perfect example. The NFT platform has continued to gain momentum as interest surges. It reached a record-breaking $231 million in sales over the past 30 days.  Perhaps, ChiliZ is taking a cue from this to target the American sports market.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://cryptopotato.com/chiliz-to-expand-operations-will-invest-50-million-in-the-us/

Continue Reading
Blockchain4 days ago

MicroStrategy Adds More Than $1 Billion in BTC to Its Asset Stash

Blockchain4 days ago

DEX aggregator 1inch expands to Binance Smart Chain

Blockchain4 days ago

Mask Network is About to Airdrop $30 Million Worth of Tokens 

Blockchain4 days ago

Cardano (ADA) Adds Glow to its List of Development Languages

Blockchain5 days ago

MDEX skyrockets in DEX environment

Blockchain5 days ago

Dubai Fund Sells $750 Million of Bitcoin to Buy Cardano, Polkadot

Blockchain4 days ago

Veteran Analyst Explains Why is Bearish on Bitcoin Right Now, Says $100K ‘Years Away’

Blockchain5 days ago

This Week’s Hottest Slots At 1xBit Casino

Blockchain4 days ago

Coinbase Hints Token Issuance, While ADA Goes Up (Feb. 27, 2021)

Blockchain5 days ago

BC.Game Casino Review

Blockchain4 days ago

This was avoidable – The lost Bitcoin fortunes

Blockchain4 days ago

Dubai Crypto Funds Backing Helps Cardano (ADA) Unsettle Binance Coin (BNB) As The Third Largest Crypto

Blockchain5 days ago

Guides To Know Before Spending Bitcoin

Blockchain5 days ago

Claim 20% With Every Deposit At BetChain Casino

Blockchain4 days ago

Ethereum ETF to Launch on TSX

Blockchain5 days ago

Crypto Crash Intensifies as Bitcoin Drops 10%

Blockchain5 days ago

Defiqa Takes DeFi to the Next Level

Blockchain4 days ago

Celebrities Who Are Backing Crypto Growth and Adoption

Blockchain4 days ago

Large Swiss Bank To Offer Crypto Trading to Customers

Blockchain5 days ago

1inch DeFi Exchange Deploys Token on Binance Smart Chain

Blockchain5 days ago

FTX Exchange Premiers Tokyo Olympics Futures Contracts

Blockchain4 days ago

Crypto can be lucrative, but make sure you’re ready for the taxman

Blockchain4 days ago

Cardano’s founder launches RATS pool for ADA staking

Blockchain4 days ago

Dubai Crypto Fund Sells $750 Million BTC to Buy More ADA, DOT

Blockchain4 days ago

Bitcoin Bull Run is Far From Over as FOMO Hasn’t Set in Yet, Analysis Suggests

Blockchain4 days ago

Komodo’s AtomicDEX stress test proves success as a scalability solution

Blockchain5 days ago

Bitcoin’s price falls below $45,000

Blockchain4 days ago

Polkadot price prediction: DOT to decline to $25

Blockchain4 days ago

Grayscale eyes alts such as Cardano, Aave, Chainlink for new investment products

Blockchain5 days ago

CI Global Files World’s First Ethereum ETF in Canada

Blockchain4 days ago

Here’s how IOHK’s glow will simplify smart contract writing for Cardano

Blockchain4 days ago

Why Is Cardano Pumping While Other Cryptocurrencies Are Slumping?

Blockchain4 days ago

US SEC releases framework for future crypto regulations.

Blockchain4 days ago

Ethereum Update: ‘Berlin’ Hard Fork, EIP-1559, ETH 2.0 Beacon Chain, First ETH ETF

Blockchain3 days ago

Binance to Support Cardano (ADA) Upgrade and Hard Fork

Blockchain4 days ago

Anchorage Acquires Banking Charter And Raises $80M

Blockchain4 days ago

CFN Enterprises Inc. Launches Cannabis News Series to Broadcast on Bloomberg, Newsmax & Fox Business

Blockchain4 days ago

Why Are Blockchain Oracles the Life-Blood of Smart Contracts?

Blockchain4 days ago

Will Chainlink find enough momentum for a recovery run?

Trending