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Cryptocurrency

5 major reasons it’s good to buy Bitcoin

The world’s most attractive cryptocurrency has an edge that smart investors can not afford to ignore.

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Bitcoin, 5 major reasons it's good to buy Bitcoin

The present trends and macros surrounding the world’s flagship crypto Bitcoin suggest that there seem to be more than meets the eye. Nairametrics computed five major fundamentals that give the world’s most attractive crypto an edge that a good investor can’t afford to ignore.

1.The decline of Bitcoins on crypto exchanges is at a record low

When coins on spot exchanges drop, it’s a sign that new buyers are coming in to scoop coins off the markets and move them into cold storage HODL, and we are seeing new HODLers right now. Very macro bullish.

READ: GTBank, Zenith Bank, MTN record gains, investors up by N50 billion

With so much demand, especially from institutional investors like Grayscale and Microstrategy, it might just be a matter of time for the world’s flagship crypto to jump the bullish wagon in the long term.

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The decline of  BTC exchange balances signals reduced selling pressure. In August 2020, 2.6 million BTC was being held on exchanges. This is significantly lower than the last time Bitcoin hit a local top a year ago (2.8 million), and lower than before the sell-off in March (2.9 million).

READ: Nigeria’s Broadband subscriptions peak at 82.7m – Prof. Danbatta

2. The number of entities with a balance equal to or above 1000 BTC continues to rise

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The signs are bullish, as we still haven’t broken the upward trend line, despite the dip at the start of September.

As BTC whales accumulate BTCs, Bitcoin’s circulating supply reduces, and this can weaken any bearish trend that BTC finds itself in. This means that over time, it’s possible that as Bitcoin approaches its fixed supply of 21 million coins, the price of BTC will go up, with BTC’s present demand factored in.

READ: Ripple opens 1,000,000,000 XRP

3. Many Bitcoin holders are refusing to sell

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Recall that Nairametrics about two months ago, revealed how investors remain bullish in the long term, despite the blurred global economic outlook and resurgence of the COVID-19 virus.

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The percentage of supply owned by entities holding ≤ 10 $BTC grew from 5.1% to 13.8% in 5 years, while the percent held by entities with 100-100k BTC declined from 62.9% to 49.8%.

READ: Tron Whale transfers 306 million TRX

These show that more retail investors are grabbing a stake in the most popular crypto asset, thereby diminishing the strength of BTC whales.

4. Bitcoin has safe haven properties

Bitcoin has a significant first-mover advantage, not only because it’s the first crypto as we know it, but because it was the first one with a gold-like store of value properties.

READ: PZ incurs N1 billion in exchange rate loss 

As such, it enjoys tremendous network effects (not dissimilar to those experienced by social networks like Facebook and Twitter) due to its vibrant community of users, developers, miners, exchanges, custodians, etc.

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Nothing demonstrates this better than the fact that Bitcoin is an open-source project that can be copied or forked by anyone in the world at any moment. And yet despite being forked many times over the years, it remains the dominant crypto (store of value or otherwise) both in terms of market capitalization and liquidity. This race is Bitcoin’s to lose.

READ: Bitcoin robbers transfer stolen BTCs worth $13.2 million

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5. Public-listed global brands are using Bitcoin to hedge inflation

Some weeks back, MicroStrategy, a publicly-traded company based in America, adopted Bitcoin as a treasury reserve asset to hedge against fiat inflation. This is a big deal, as BTC is being used as intended – a hard money/savings instrument.

“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” said Michael J. Saylor, CEO, MicroStrategy Incorporated.

READ: U.S public listed company allocates $425 million into Bitcoin

“This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash,” he added.


 

Disclaimer: The objective is to give the needed insight on the world’s most valuable crypto prevailing in the ever-changing global financial market. This should not be seen as a piece of investment advice or guide, as Nairametrics advises one to seek the services of a certified financial advisor for such.

Readers should also note that the historical performances of this financial asset do not guarantee future performance. Therefore, Nairametrics doesn’t bear any responsibility for any trading loss you might incur as a result of using this data.

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading and Financial Market Analysis. Member of the Chartered Financial Analyst Society. You can follow Olumide on Twitter @tokunboadesina or email [email protected]

3 Comments

3 Comments

  1. Aisha Ahmad

    October 8, 2020 at 12:35 pm

    Very very

  2. Smart

    October 8, 2020 at 12:43 pm

    Thanks

  3. Adekeye Ola

    October 8, 2020 at 4:42 pm

    Thanks so much Mr Olamide please I to know more about Tron. Thanks God bless you.

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Cryptocurrency

Large entity moves Bitcoins valued $244 million

BTC whale moved about 18,901 BTC estimated to be worth about $244million, some hours ago.

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3 BTC whales move 140 million worth of Bitcoins from Binance

As the price of the Bitcoin, the world’s flagship crypto breaches above $13,000 price levels, a growing amount of large entities in recent times have been increasing their transactional volume at the world’s most popular crypto.

Data obtained from Whales Alert, a crypto analytic tracker, revealed that an unknown BTC whale moved about 18,901 BTC estimated to be worth about $244 million, some hours ago.

READ: 5 major reasons it’s good to buy Bitcoin

READ: Jaiz Bank reports 45.3% profit increase in H1 2020, involved in 21 litigations

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READ: PenCom okays N2.58billion for relatives of 591 deceased workers in three months

Meanwhile, at the time of writing, Bitcoin traded at $13,064.05 with a 24-hour trading volume of $18,700,010,754. BTC price is down -1.8% in the last 24 hours. It has a circulating supply of 19 million coins and a max supply of 21 million coins.

Explore Data on the Nairametrics Research Website

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What this means: From a macro level, the increase in the number of these large entities can be considered bullish.

  • At the time this report was drafted, Bitcoin was still trading around the $13,000 support levels, as investors have kept buying BTC at its support levels.
  • Nairametrics believes the increased buying pressures by notable institutional brands are partly responsible for the non-dilutable crypto recent highs while it is difficult to predict market movements. BTC whales have shown historically that they often determine the BTC trend.

READ: Two strange Bitcoin whales transfer $290 million worth of Crypto

Quick fact: At the BTC market, investors or traders who own large amounts of Bitcoins are typically known as Bitcoin whales.

  • This means that a BTC whale would be an individual or business entity (with a single Bitcoin address) owning around 1000 Bitcoins or more.
  • As BTC whales accumulate BTCs, bitcoin’s circulating supply reduces, and this can weaken any bearish trend bitcoin finds itself in.
  • This means that over time, it’s possible that as BTC approaches its fixed supply of 21 million, the price of BTC will go up, with BTC’s present demand factored in.

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Cryptocurrency

Bulls on rampage, Ethereum wallets now record high

The number of Ethereum addresses (EOAs) holding at least 0.1 ETH just crossed the 10,261,111 million mark for the first time.

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Number of contract calls on Ethereum rises by 300%

Retail investors are rushing big time, over owning a stake in the world’s second most valuable crypto by market value. Its rise has not been surprising to many crypto experts in the crypto-verse, as the rise of DeFi Crypto partly helped Ethereum usage reach an all-time high coupled with the fact that it’s now trading over $400.

According to reports recently released by Glasscode, the number of Ethereum addresses (EOAs) holding at least 0.1 ETH just crossed the 10,261,111 million mark for the first time.

READ: FG liberalizes the Mining sector, grants 5 years tax concession to miners

“The increase in gas usage indicates a continuous growth in the use of Ethereum’s platform, as measured by the number of transactions, as well as demand for block space, as measured via gas per transaction,” said Wilson Withiam, research analyst at data provider Messari.

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READ: There are now 10,016 Bitcoin ATMs globally

Data from Coingecko at the time this report was written showed Ethereum traded at $408.30 with a daily trading volume of $11 billion. ETH price is down -1.6% in the last 24 hours. It has a circulating supply of 110 million coins and a max supply of ∞ coins.

Quick fact; Ethereum is a cryptocurrency designed for decentralized applications and deployment of smart contracts, which are created and operated without any fraud, interruption, control or interference from a third party.

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READ: Buying sign: Number of Bitcoin Big players at record high

Ethereum is a decentralized system, fully independent, and is not under anybody’s authority. It has no pivotal point, and its platform is connected to thousands of its users through their computing system around the world, which means it’s almost impossible for Ethereum to go offline.

Gas is the token that energizes Ethereum’s blockchain. It is the standard used to calculate the number of charges an individual needs to pay in order to make transactions on Ethereum’s blockchain.

READ: Ethereum whales move over $50 million of Ether to Uniswap

Like with many other crypto assets, speculating with Ethereum can be highly profitable and has had a good history of giving its investors huge returns. However, there are also many other options to make income from Ethereum. These options include Ethereum mining, Ethereum faucets, and Ethereum staking.

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Cryptocurrency

Crypto for music, AUDIO up by 500%

Binance Labs, the investment and incubation arm of Binance, has made a strategic investment in Audius.

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A newly designed crypto is presently gaining waves with the aid of the world’s biggest crypto exchange Binance.

A few days ago the decentralized music streaming platform Audius (AUDIO) launched its crypto. The coin traded as low as $0.04 on launch day, according to Coinmarketcap.

READ: Crypto: UniSwap gives each owner over $2,000

However that became history as the macro, showing Binance would be supporting the pretty unknown crypto catalyzed a steep upward price movement that sent it as high as $0.50, which represents a surge of 1,125% in a span of a few hours, before presently trading at the time this report was drafted at 0.21140 with a gain close to 500% since its launch.

The macro making this crypto asset blue hot amidst thousands of crypto is largely attributed to these statement released by Binance

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READ: OUSD: Stablecoin that pays you interests like a bank

Binance Labs, the investment and incubation arm of Binance, has made a strategic investment in Audius – a decentralized streaming protocol giving everyone the freedom to distribute, monetize, and stream any audio content. Specifically, Binance Labs led an extension round for Audius worth $1.25 million.

With 750,000 monthly active users (MAUs) and over a million streams each month across more than 100,000 tracks, Audius has teamed up with top artists like deadmau5, 3LAU, and RAC to help crypto cross the chasm.

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READ: Crypto: Popular Hedge Fund, Grayscale record best quarter ever

Audius features a native platform token – AUDIO – that is staked for security, feature access, and governance. AUDIO is earned by users to shape future iterations of the protocol, creating a community dynamic in ownership unique to a music industry full of middlemen.

The means of artists being able to connect directly with fans is one that speaks to the ethos of web3, and one that the Audius community will be exploring closely over the coming months.

READ: Crypto exchanges with most valuable crypto-assets in the world 

“Audius and its approach to mainstream crypto adoption are among the strongest we’ve seen. We’re glad to have Binance supporting this vision as we are both heavily aligned in creating a more accessible future for crypto,” Head of Binance Labs Wei Zhou said about the investment.

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That said, the popularly known Binance founder Changpeng Zhao shared the news about the company’s investment in Audius via Twitter

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