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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.

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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.

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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.

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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.

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading. Featured Financial Market Analysis for a Fortune Global 500 Company. Member of the Chartered Financial Analyst Society. Follow Olumide on Twitter @tokunboadesina or email [email protected]

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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.

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OUSD: Stablecoin that pays you interests like a bank

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

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READ:  Ethereum whale transfers $78 million worth of Cryptos

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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.

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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.

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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

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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.

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Ripple locks 800,000,000 XRP, prices push up

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

READ: Ripple’s big players move XRP worth over $50 million

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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.

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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

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Cryptocurrency

Ripple is selling 33% of its ownership in MoneyGram

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Ripple helps MoneyGram records 100% growth on digital transactions 

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.

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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.

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