Cryptocurrency
Why U.S biggest Bank, JP Morgan Chase is bullish on Bitcoin
America’s JPMorgan Chase has given valuable insights on why it believes the odds are with Bitcoin.
America’s biggest bank, JP Morgan Chase, recently released a rare statement on the world’s flagship crypto, where it said that Bitcoin has what it takes to challenge gold’s status as the go-to alternative financial asset.
When compared to other financial assets like gold and crude oil, Bitcoin looks relatively small, considering that it has a market capitalization of $242 billion, compared to the precious metal’s (Gold) $2.6 trillion market value. However, this means the crypto has more room for upside and can potentially compete with gold as the preferred alternative currency.
READ: JP Morgan responds to FG’s Malabu court case
In a report credited to Business Insider, America’s most valuable bank, JPMorgan Chase, gave valuable insights on why it believes the odds are with Bitcoin to keep rising in value.
“Even a modest crowding out of gold as an ‘alternative’ currency over the longer term would imply doubling or tripling of the bitcoin price,” JPMorgan Chase said.
READ: Large entity moves Bitcoins valued $244 million
And over time, Bitcoin could be held for other reasons such as for making payments, not just for being a store of wealth as gold is, according to JPMorgan Chase.
“Cryptocurrencies derive value not only because they serve as stores of wealth but also due to their utility as a means of payment. The more economic agents accept cryptocurrencies as a means of payment in the future, the higher their utility and value,” JPMorgan Chase explained.
READ: Gold prices settle lower, amid President Trump’s COVID-19 infection
What you should know
It’s important to note that such a bullish call by an American elite bank is coming on macros that BTC has a circulating supply of 19 million coins and a max supply of 21 million coins, meaning there are about 2 million left to be mined.
READ: JPM coin: What it is and what it means for Cryptocurrency
- Taking into account that about 4 million Bitcoins have been lost forever as a result of BTCs’ owners dying, and their next of kin not having access to such cryptos, it is fair to say there are only about 15 million BTC presently in circulation to cater for over 7 billion people fighting to have a stake in Bitcoins. This means that as BTC becomes scarce and more popular, it is only a matter of time before crypto asset valuation will hit the roof.
- As the general economic law states, when demand is high and supply is limited, prices of such products usually go up.
- Another strong fundamental increasing the odds on the world’s most popular crypto is that it’s almost impossible to forge, and has strong durability characteristics.
- Thanks to its complexly designed decentralized blockchain network, it will take you more than a supercomputer to make such an attempt. Also, you have to confuse all players in the blockchain network, in accepting such forged digital coin.
Cryptocurrency
Investors fast using stablecoins rather than money in keeping their profits
USDC, a stablecoin project, in recent days has shown significant use among crypto investors.
In recent times the use of Stablecoins has gained momentum amid high volatility and the strong bullish trend currently in play at the crypto market.
Such evidence was attributed to the daily trading volume seen in the world’s leading stablecoins, which at the time of writing Tether’s price was $1.00 with a daily trading volume now at 43.4 billion.
Also, the fast-rising USDC, a stable coin project founded by Circle and Coinbase, in recent days has shown significant use among crypto investors.
Data retrieved from Glassnode revealed over 12million USDC were moved in just two transactions some hours ago.
READ: Bamboo says USD Wire Transfer option is no longer available for deposits
🐋 4,005,200 $USDC (4,005,393 USD)
withdrawn from #huobi to unknown walletView live on-chain exchange flow metrics:https://t.co/0pfW4ubkCQ
— glassnode alerts (@glassnodealerts) November 29, 2020
🏠 8,002,839 $USDC (8,002,969 USD)
moved in-house by #binanceView live on-chain exchange flow metrics:https://t.co/0PjZqBMbdi
— glassnode alerts (@glassnodealerts) November 29, 2020
READ: Ethereum whale transfers $78 million worth of Cryptos
What are Stablecoins?
Stablecoins are cryptocurrencies created to minimize the price swings that occur in an asset. They are usually pegged to fiat currencies and often exchange-traded commodities.
Global Investors and traders are using it to give their investment portfolios exposure to the US Dollar during these times when uncertainty is high as a result of the worst pandemic (COVID-19) known to man.
Recall Nairametrics, a few months ago broke the news on, U.S national banks now permitted to hold reserve currencies for stablecoins (Tether, Circle), meaning more investors now use stable coins in hedging against the volatility often prevalent in the crypto market.
The letter which was released by the Office of the Comptroller of the Currency (OCC) responds to questions regarding the application of stablecoin-related bank activities.
It concludes that national banks and federal savings associations may hold ‘reserves’ on behalf of customers who issue stablecoins in situations where the coins are held in hosted wallets.
What you should know
Tether is designed as a blockchain-based cryptocurrency whose digital coins in circulation are backed by the same value of traditional fiat currencies, like the U.S dollar, Japanese Yen, or the Euro. It trades under the ticker symbol ‘USDT’.
USDC is a fully collateralized US dollar stablecoin. It is an Ethereum powered coin and is the brainchild of CENTRE, an open-source project bootstrapped by contributions from Circle and Coinbase.
READ: Tether, the most promising stable coin, now the third most valuable cryptocurrency
- USDCs are issued by regulated and licensed financial institutions that maintain full reserves of the equivalent fiat currency in a 1 USDC: 1 USD ratio.
- Investors of stablecoins make money by earning dividends from the newly created digital coins given to them for holding such stablecoin stock.
Explore Data on the Nairametrics Research Website
Cryptocurrency
Ripple gains 12%, CTO owns at least a million XRP
Ripple CTO, David Schwartz disclosed that he owns between 1 million to 10 million XRP.
Ripple CTO, David Schwartz has disclosed more details about his crypto holdings.
What we know: From a series of tweets seen by Nairametrics, Schwartz, who is one of the original orchestras behind the creation of XRP Ledger, revealed he owned at least 1,000,000 XRP, valued at $555,000 at the time of writing. The crypto is up 12%.
READ: Ethereum robber transfers $1.5 million worth of Crypto
Let's just say more than 1 million and less than 10 million.
— David Schwartz (@JoelKatz) November 24, 2020
READ: Ripple’s big players move XRP worth over $50 million
At the time of writing, Ripple traded at $0.614954 with a daily trading volume of $11,844,053,933. XRP price is up 12.3% in the last 24 hours. It has a circulating supply of 45 Billion coins and a max supply of 100 Billion coins.
Recall some months back, Nairametrics revealed how Ripple’s Chief Technology Officer, David Schwartz, had revealed with regrets that he and his wife made bad decisions for their crypto portfolio in 2012 — resulting in the eight-figure worth of missed profit at current prices.
In a series of tweets recently released by Ripple’s CTO, he sold some Bitcoins for $750, and 40,000 Ether (ETH) for $1 each back then — a stash that would be worth more than $15.5 million in today’s prices.
READ: Slack gains 22% on Salesforce buyout offer
Meanwhile, wealthy Rich players seem to be upping their game in Q4, 2020, as regards moving XRP – the third most valuable crypto by market value, as lately seen by Nairametrics.
Many crypto experts anticipate the movement of such cryptos are coming from major stakeholders of Ripple, on the bias some of these wallets contain a significant amount of XRP.
READ: 2,257 investors globally own at least 1,000 Bitcoins
Explore Data on the Nairametrics Research Website
The world’s fast-emerging financial juggernaut, Ripple, recently disclosed it is selling roughly 33% of its stake in MoneyGram. It is its first sale of such shares since Ripple invested in the popularly known American remittance firm in 2019.
Data retrieved from Ripple’s filing with the U.S. Securities and Exchange Commission revealed Ripple owns 8.6% of shares outstanding in Moneygram or 6.22 million shares, including a warrant to purchase another 5.95 million shares for a total equity position of 12.2 million shares or 17% of MoneyGram’s shares outstanding.
Ripple disclosed it will be selling around 4 million shares, approximately 33.3% of its entire stake. After such a sale, the fintech company will still own at least 3.22 million shares or 4.44% of MoneyGram.
What you should know
MoneyGram is a fast-growing platform for cross-border P2P payments and money transfers around many countries.
Recall that Nairametrics exclusively broke the news in June, about MoneyGram receiving $20 million in funding from Ripple to enhance its payment solutions through a partnership system with many leading financial institutions.
- The funding by Ripple completes its $50 million offerings for some stake in MoneyGram to run its experimental program for testing the effectiveness of the digital token XRP.
- The deal would definitely give MoneyGram’s arch-rival, Western Union, a run for its money. Reports from different private sources, seen by Nairametrics, shows that Western Union is now bent on buying MoneyGram to scale its robust growth experienced lately.
No one should get a car that steals his peace of mind – CEO Betacar.ng
ASUU says union has not yet agreed to call off strike
How to build solid financial success system and achieve financial freedom quickly
Airtel, Mobil, FCMB lead Nigerian Stocks Up W/W, investors gain N390 billion
Effects of the recession on families and how to cope
COVID-19 Update in Nigeria
Covid-19: UK to approve Pfizer, BioTNech vaccine, to start immunization December 7
Ripple is selling 33% of its ownership in MoneyGram
Gold drops to $1,700 territory for the first time since June
Cornerstone Insurance Plc projects PAT of N537.4million in Q1 2021
