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Cryptocurrencies - Asset Class

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The mere fact that IG are offering Cryptocurrencies for its clients to trade tells me that they are not going anywhere for the foreseeable future.

Whilst there is demand for traders to trade them, brokers, will have to take positions on them and this will create demand. It may not be real demand in terms of real use cases but it will keep the momentum going until the real use cases begin to mature. 

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Guest BTC view

Number of possible reasons.

  • Consensus currently taking place. https://www.coindesk.com/events/consensus-2019
  • A number of providers have said they’re looking to closed Beta test futures trading and looking at BTC deliverable rather than cash settled futures.
  • New crypto ETFs have recently been filed at the SEC.

Outside of fundamentals I think this is sentiment change. Sell side pressure has gone as people think the bottom is in – trade activity is very much range / fib / Pivot traded. The majority of those who hold the underlying will always believe in it being revolutionary and won’t sell, so speculators are moving the price.

We’re also one year out of the bitcoin halving event. Historically there has been a steady rally into the event and then a parabolic move afterwards. I imagine the market thinks this will happen again – news outlets are already talking about it. https://www.coindesk.com/bitcoins-next-halving-rally-coming-soon-in-2019 Block rewards half, sell side pressure from miners who sell the majority of their stake to cover costs will reduce, inflation reduces from 3.6% to 1.8%...

Bitcoin halving countdown https://www.bitcoinblockhalf.com/

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17 hours ago, TrendFollower said:

You can now pay with cryptocurrency at Whole Foods

https://www.technologyreview.com/f/613532/you-can-now-pay-with-cryptocurrency-at-whole-foods/

@PandaFace and @andysinclair this article and the previous post above may be of interest to you both. 

Remember Luncheon Vouchers? Every time I read an article like this I replace Crytpo/Bitcoin with Luncheon Voucher and Blockchain with database 😉:

Quote

 

You can now pay with luncheon vouchers at Whole Foods

Cameron and Tyler Winklevoss want you to pay for groceries, movies, ice cream, and many other everyday retail products using luncheon vouchers. 

The news: The twins’ luncheon vouchers company, called Gemini, has formed a new partnership with payments startup Flexa to incorporate luncheon vouchers-payment capabilities into the scanners that let you pay with services like Apple Pay.

Users can now use an app called Spedn to pay with luncheon vouchers, luncheon vouchers Cash, or Gemini’s dollar-backed stablecoin called the luncheon voucher dollar for items at retailers including Whole Foods, Regal Cinemas, Baskin-Robbins, Starbucks, and others, according to Fortune.

Will luncheon vouchers-payments stick this time? The luncheon vouchers industry has wanted to achieve mainstream adoption in retail for ages. A number of merchants tried to accept luncheon vouchers payments in the past, but it was probably too early: paying with luncheon vouchers had yet to take off, and many retailers stopped taking it. In many cases that’s probably been down to price volatility and slow processing times.

Speed merchant: In this case, Flexa will serve as a bridge between merchants and the database, and will settle the payments in real time using its own network. Merchants can choose to take the payment in either luncheon vouchers or dollars. According to Gemini, processing payments like this will be cheaper than using credit card networks.

Whole Foods is not taking any risk on Bitcoin nor holding Bitcoin on it's accounts - it will simply allow bitcoin to be converted to fiat at it's stores, or rather it's accepting a "voucher" for a coffee, the voucher just so happens to have been bought with Bitcoin.

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@andysinclair,

You are right to challenge some of this. You do have a point as well. However, one must remember that to change the way we pay for goods and services around the world which has existed for many, many, many years requires a lot of time and effort. 

What we are seeing is a layered approach. This is merely a base layer which is trying to lay the foundations for an infrastructure involving Crypto, Blockchain, Tokens etc. to co-exist with Fiat currency. This will require a lot of time. It will not happen quickly or overnight. We are many years away from even getting close but all great and major change requires a starting point somewhere. 

This humungous project may fail but that does not mean they should simply give up. Eventually a consensus will emerge as to the most effective way to bring about this change of Cryptocurrencies, Tokens and Blockchain. 

I totally understand why you may not be so confident. I would be interested to see if you view could become more positive after reading some of the books I suggested earlier on in this thread? I posted the book list on Tuesday and it is on page 1 of this thread. I appreciate that you may have missed it with Caseynotes constantly posting to ensure only his posts are seen and the rest of our posts disappear from the 'Latest Forum Post' page. It does not matter how many posts or when I post, Caseynotes, seems to post pretty much quickly to ensure his posts are at the top. It may just be coincidence but it seems to be happening rather regularly for me to think it is a coincidence. Anyway I understand you may not have the time to read the books or simply may not wish to which is fine. I just think after reading the books you will acquire more knowledge and appreciation of the asset class. This will enable you to appreciate the time this is going to take and how it will happen in small steps along the very long path to the destination. 

 

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@JamesIG,

The link below shows the current Cryptocurrencies in order of their market cap.

https://coinmarketcap.com

What is interesting is that both IOTA and Cosmos (huge potential in my opinion) are ahead of Neo which IG offers. I think IG should consider removing Neo (if there is very little demand) and replacing it with IOTA but especially Cosmos.

It would be nice for IG to offer say Cosmos (before it spikes up in price) rather than afterwards. I accept the liquidity and hedging scenario for IG but it would still be nice. 

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Below are some interesting developments in this space for this asset class.

 

Samsung Pay Could Soon Be Adding Cryptocurrency Integration

https://beincrypto.com/samsung-pay-could-soon-be-adding-cryptocurrency-integration/

 

Facebook will reportedly launch cryptocurrency 'GlobalCoin' in 2020

https://www.businessinsider.com/facebook-cryptocurrency-launching-globalcoin-in-2020-2019-5?r=US&IR=T

 

This is demonstrating that large worldwide institutions like Samsung and Facebook are considering both Crypto and Blockchain. It is only once the large institutions are on board will it trickle downwards but this is one of the important layers when it comes to integration and will take some years. There is no guarantee of success but if the large corporations adopt both Crypto and Blockchain then it will have an impact in their supply chains and so their customers and suppliers will end up embracing it. It will only then trickle downwards to the mid sized and smaller businesses. This is a very long term process and could take many years.

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Sunday UK time 9:00 pm and Cryptocurrencies and all blue and all above 5%. For all those Cryptocurrency traders, ignore the weekend at your peril! Some of the best gains are over the weekend when one least expects.

The returns on offer and profit potential is just simply staggering. Bubble or no bubble it is an extremely strong trending asset class.

From a trading perspective and an investment perspective how can one ignore such profit potential? Yes the risk is very high but the reward is so great too. From a risk / reward perspective even if an investor or trader just allocated a very small amount of their investment or trading capital to this asset class then it is surely worth the risk.

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It is 10:50 pm on Saturday 1st June 2019 (UK Time) and all the Cryptocurrencies available on IG's platform are up and in the blue.

I think Asian trading over the weekend plays a significant role for UK Cryptocurrency traders. 

It will be interesting to see how this plays out overnight and what Sunday morning brings for UK Cryptocurrency traders. 

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Cryptocurrency as an asset class is performing from a returns perspective far better than most asset classes around the world since the start of 2019. 

Imagine if you had a Cryptocurrency Trading Portfolio and you were trading Bitcoin, Ether, Litecoin and Bitcoin Cash on the 'Long' side and had smaller positions on the 'Long' side for EOS, NEO, Ripple and Stellar. The returns these have generated just from this one single asset class can supercharge your overall trading portfolio performance. 

 

Is a trader wise if they ignore trading the strongest performing asset class?

Is a trader wise if they do not trade the strongest performing asset class because they ignore the price action and trends and stick to their personal views, bias and let their personal emotions get in the way?

Is a trader wise by missing out on trading the best performing asset class in the world as they forget that they can apply the same technical analysis, signals, indicators and apply the same level of risk management?

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I just read this very interesting article in the Economic Times in relation to India, Cryptocurrencies and the US Dollar. 

Why India should not outlaw cryptocurrencies

https://economictimes.indiatimes.com/news/economy/policy/why-india-should-not-outlaw-cryptocurrencies/articleshow/69933164.cms

I found this article fascinating. I think India will be making a grave mistake if it bans Cryptocurrencies. They need be proactive and lead the way but they are already too far behind. 

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I just read this fascinating article and have to applaud BrewDog for the proactive vision. By accepting ten different Cryptocurrencies now for equity is genius. If these Cryptocurrencies go up in value then BrewDog will benefit greatly. 

One must ask the question why BrewDog who are one of the biggest if not the biggest craft beer company do this? If Cryptocurrencies were garbage and the asset class was nonsense then why would a company do this? The answer is that they believe this asset class is the future and is going to get bigger and bigger. 

BrewDog Now Lets You Buy Company Shares Paying With 10 Cryptocurrencies

https://cointelegraph.com/news/brewdog-now-lets-you-buy-company-shares-paying-with-10-cryptocurrencies

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Cryptocurrencies are taking their pretty normal tumble right now which was more or less expected. 

The only chart that looks bullish out of all the Cryptocurrencies that IG offers is Bitcoin. The Grandfather of the Cryptocurrency Universe.

Cryptocurrencies like Ripple and Stellar have awful looking charts. I tipped them last year to be the best performing in 2019 and boy was I wrong. I could not have been more wrong. 

I think Bitcoin is still going to continue going up but the others are in serious danger if they cannot present to the world concrete and valid reasons why they should have such large market caps. If they cannot then they could soon be replaced with other 'altcoins' which can demonstrate this to the market and the world. 

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I read a lot about money laundering risks with Cryptocurrencies.

Before Cryptocurrencies existed Cash was used for Money Laundering purposes (and still is) because it was and is easier for criminals. I personally think with Cryptocurrencies if it gets Government approval and regulation will be far more difficult to for criminals to use Cryptocurrencies for money laundering purposes. Don't get me wrong. I am sure criminals will still find a way but it is going to be far more complex and technical to do so. It will require digital and computing intelligence of a high level.

Why is the same fuss not being made about CASH! Cash is the king of vehicles for money laundering. Surely we should stop using cash then? Yes Cryptocurrencies could be used for money laundering but it will be far more difficult than cash and it is not a reason not to use Cryptocurrencies or embrace them. There is a flaw with the way this particular argument is being presented by the media. 

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I would love to see any research over the past 10 years on how Cryptocurrencies perform specifically on Sunday. 

I have seen it time and time again over the past few years where Crypto's perform strongly on Sunday. Today is no different. Maybe it is Japan and Asia in general, I don't know. 

I would be interested in any research (which is credible of course) that may have been conducted on price performance for Crypto's on a Sunday. If anyone is aware then please do let me know. 

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Some of you will be very aware of Breven Howard. Well they are launching a $1bn Crypto Hedge Fund. Why? Because they think Bitcoin et all is going to fail and go to zero. Let us not forget all the wealthy and intelligent people that invest in such Hedge Funds, they will think this too. Humour and joking aside, this puts down a serious marker when it comes to investing Cryptocurrencies as an asset class. 

Billionaire Investor Eyes $1 Billion Crypto Hedge Fund

https://www.coindesk.com/billionaire-investor-eyes-1-billion-crypto-hedge-fund

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