Cryptocurrency
Germany’s biggest bank says more people now prefer Bitcoin over gold
Germany’s biggest bank, Deutsche Bank, recently disclosed that more people are beginning to prefer Bitcoin over gold in hedging their money.
Germany’s biggest bank, Deutsche Bank, recently disclosed that more people now prefer Bitcoin over gold in hedging their money.
In a note credited to Zerohedge, the financial juggernaut of Europe’s biggest economy, revealed investors are steadily seeing Bitcoin as a legitimate store of wealth option.
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What they are saying
Deutsche Bank research strategist, Jim Reid, gave key insights into what is changing investors to see Bitcoin more as a tool to hedge their cash better than traditional safe-haven assets like gold.
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“Bitcoin is up another +3% overnight and seems to be creating a momentum of its own. It’s up over 70% in the last six weeks, as more and more investors are starting to see it emerge as a credible asset to invest in. There also seems to be an increasing demand to use Bitcoin where Gold used to be used to hedge Dollar risk, inflation, and other things,” Reid said.
Bitcoin’s strong performance is no shock to some analysts, especially in the context of the benchmark cryptocurrency showing a high correlation with global equity markets.
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“Given that equities are now near, or in some cases above, their highs reached in February, it’s not surprising to see BTC do the same,” said Ryan Watkins, BTC analyst at Messari.
Why compare returns from BTCs to gold or other precious metals? “Gold is bitcoin’s most aspirational asset,” explained Watkins. “Like BTC, gold is a scarce commodity, whose value is derived almost entirely from its monetary premium.”
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What you should know
Nairametrics revealed how the yellow precious metal underperformed BTC by nearly 11% points, despite surging to about 16% in the first half of 2020 and touching eight-year highs last month. Platinum and silver both ended the first half of 2020 with negative gains.
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Bottom line
It is fair to understand the bias of global investors on choosing the flagship crypto, taking into account that gold is up 26.37%, while Bitcoin is up 120% on the year.
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Cryptocurrency
Dogecoin investor loses $12 million on Binance as Doge suffers violent dump
Recent price actions reveal $DOGE lost as much as 25%, dropping as low as $.50 amid record selling pressures.
The fast-rising crypto asset, Dogecoin suffered record losses in the early hours of Sunday despite Elon Musk’s debut on the long-awaited Saturday Night Live which surprisingly led to a violent dump.
At the time of drafting this report the dog meme coin traded at $0.564505 on the FTX Exchange with a daily trading volume of $31 billion. Dogecoin is down 21.34% for the day.
Recent price actions reveal $DOGE lost as much as 25%, dropping as low as $.50 amid record selling pressures.
The largest single liquidation order happened on Binance-DOGE value $12.07 million as over $270 million positions in the Dogecoin assets vanished into thin air.
READ: Dogecoin up 168%, more valuable than Polkadot, Cardano
READ: Altcoin season? Ether, ADA, Doge and others hit all-time highs
Supporters of the fast-growing crypto were earlier hopeful that Elon Musk might offer some strong bullish bias in favour of Dogecoin but that was not to be. Although the Tesla CEO has, many times via social media, stated that Dogecoin remained his favourite crypto, he recently warned fans to invest in the asset with great caution.
Crypto pundits have often frowned at the inflationary properties of Dogecoin considering that it is printed every minute of every day, giving it a potentially infinite supply. The implication of this is that the crypto asset’s unlimited supply could, over time, impact negatively on its price.
Cryptocurrency
How Nigeria’s ethnic diversity is boosting the crypto market
The crypto market has facilitated more economic collaboration and cooperation among Nigeria’s geopolitical regions.
Africa’s biggest crypto market, Nigeria keeps gaining momentum in spite of its exclusion from Nigeria’s financial ecosystem. This reflects dwindling faith in Nigeria’s traditional financial asset classes.
Adding credence to such bias is data retrieved from Paxful. The global leading Peer to Peer trading platform reveals Africa’s biggest economy and home to over 200 million people has now become its biggest market with 1.5 million users. In just four months, about $1.5 billion worth of Bitcoin exchanged hands.
In addition, data retrieved from Google revealed that Nigeria is the only country with a perfect score in regards to its interest in the flagship crypto.
Using local geographical metrics, Delta State has the highest level of interest in the flagship crypto on a state level, followed by Anambra, Bayelsa, Ondo, and Ekiti. This points to Bitcoin’s stronghold in southern Nigeria.
READ: Dogecoin breaks new high, far more valuable than Nigerian Stock Market
However, the same can’t be said of the fast-rising crypto, Dogecoin, which was created in 2013 as a joke, to mock the crypto-mania at that time. Data reveals Dogecoin has its strongest trend in the North-central and some Eastern parts of Nigeria such as Ebonyi, Plateau, Imo, Enugu, Niger, and Nasarawa.
Surprisingly, Borno state, despite being ravaged by conflict showed a high interest in the dog meme coin.
Anambra, Ebonyi, Bayelsa, Imo, and Cross river have the strongest interests in Ethereum that’s already breaching record highs amid the ongoing bullish run, in play at the crypto-verse.
READ: Unknown whale moves $440 million worth of Bitcoin as institutional buying drops
Surprisingly, Lagos, Nigeria’s busiest economic hub on the state level, misses out of the top 10 in any of the rankings despite its strong fintech presence coupled with the fact that it is host to most of Nigeria’s crypto platforms like Buycoins Africa, Quidax, Bittle, and Bundle Africa.
This data reveals how much the crypto market thrives on Nigeria’s ethnic diversity, taking into account that the country, which is Africa’s biggest fintech community and home to Africa’s only two fintech unicorns – Interswitch and Flutterwave, will benefit from policies that encourage diversification and long-term inclusive growth.
READ: Unknown whale moves $272 million worth of Bitcoin
In a country prone to stringent foreign exchange policy and expensive transaction fees compared to other emerging markets, the crypto industry is thriving and already creating jobs at record levels via the Nigerian crypto start-ups, which are facilitating millions of dollars worth of transactions daily and fostering a new wave of crypto-based solutions.
Bottom Line: It is important to note that the crypto market has facilitated more economic collaboration and cooperation among Nigeria’s geopolitical regions further boosting the prospects for a strong political and economic entity that many young Nigerians desperately desire.
