Cryptocurrencies might never be able to work as actual money, according to UBS. Reason: Cryptos volatility renders it unreliable as a store of value.

The fundamental flaw inherent in cryptocurrencies is that supply cant be reduced when demand is slumping, in most cases, said Paul Donovan, chief economist at UBS Global Wealth Management, in a video on the banks website. That means they cant be considered currencies, he said.

Theres no doubt that crypto is one volatile commodity. Bitcoin, by far digital currencys largest entry, has been on a wild ride just this month. Right after New Years Day, it started out at $29,228, then shot up to $41,555 a week later, and as of Friday settled at $32,163.

A proper currency, as Donovan termed it, must be a stable store of value, providing certainty that it will be able to buy the same basket of goods in the future as it buys today.

That confidence stems from the ability of the Federal Reserve and other central banks to shrink supply amid dropping demand. There is no such mechanism, he said, for switching off supply on most cryptocurrencies, and therefore their value can slideleading to a collapse in spending power.

People are unlikely to want to use something as a currency if theyve got absolutely no certainty about what they can buy with that tomorrow, Donovan said in the video. Can cryptocurrencies perhaps evolve over time to something more stable? I dont think they can, he said.

Bitcoin futures are listed on the Chicago Mercantile Exchange alongside contracts for most major currencies. But the difference in daily trading volumes indicates that some investors dont, or dont yet, consider crypto as a bona fide currency. When Bitcoin sank 11% on Thursday, trading on traditional currencies such as the Japanese yen, which hasnt moved much lately, were far larger.

UBSs negative take on crypto stands in contrast to a growing number of financial heavyweights embracing the digital denominations. For instance, Paul Tudor Jones, CEO of hedge fund firm Tudor Investment, has invested about $600 million in Bitcoin for his Tudor BVI global fund, which has solid institutional support. If I am forced to forecast, my bet will be Bitcoin, he said last year, speaking of its prospects.

VanEck Securities just applied to federal regulators to launch a Bitcoin exchange-traded fund (ETF), an easily traded vehicle that large investors are comfortable with.

JPMorgan Chase, Guggenheim Investments, and Duquesne Capital (Stan Druckenmillers family office) are all fans: They are buying crypto or, in JPMs case, clearing trades for it. Yales and Harvards endowments are investors.

Whats more, a recentFidelity Investmentsstudy found that 27% of institutional investors were in Bitcoin and other crypto denominations, up from 22% in 2019.

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Bitcoin Will Never Be Real Money, Says UBS, Because It's Too Volatile | Chief Investment Officer - Chief Investment Officer

Harvard Professor of Economics and former Chief Economist at the International Monetary Fund (IMF) Kenneth Rogoff believes that governments will not allow bitcoin to flourish on a large scale. The regulation will come in. The government will win, he said. The professor also discussed the likelihood of a bitcoin bubble.

Harvard University Professor Kenneth Rogoff shared some thoughts about bitcoin regulation during an interview on Bloomberg Surveillance last week. Rogoff is the Thomas D. Cabot Professor of Public Policy and a professor of economics at Harvard University. He also served as Chief Economist at the International Monetary Fund (IMF) from 20012003.

Its speculative, he began. Ive been a bitcoin skeptic and certainly the price has gone up. However, Rogoff argued, theres sort of an ultimate question of whats the use. Is it just valuable because people think its valuable? That is a bubble that would blow up.

He continued: I can see bitcoin being used in failed states. Its conceivable it could have some use in a dystopian future. Nonetheless, he emphasized, I think the governments are not going to allow pseudonymous transactions on a big scale. Theyre just not going to allow it. The Harvard economics professor elaborated:

The regulation will come in. The government will win. It doesnt matter what the technology is.

So, I think over the long run if theres not a use, the bubble will burst. I hope theres not such a valuable use but I suppose its a hedge against dystopia, he further opined.

Rogoff was then asked, would you advise Secretary Yellen at Treasury that the U.S. should be proactive in instituting that regulation which could collapse the price of cryptocurrency?

He simply replied: Yes, thats just true across the board. It needs to be regulated I think governments are on it. Its not being used that widely and I suspect although the bitcoin lobbyists have been successful in getting it in some places, that wont last.

Rogoff has long been a bitcoin skeptic. In 2018, he told CNBC that the cryptocurrency was more likely to be worth $100 than $100K a decade from then. Basically, if you take away the possibility of money laundering and tax evasion, its actual uses as a transaction vehicle are very small, the former IMF chief economist said.

Last week, Joe Bidens pick for the U.S. Treasury Secretary, Janet Yellen, stated that cryptocurrencies are mainly used for illicit financing. She later softened her stance slightly and promised to work with the Federal Reserve Board and other regulators to implement an effective crypto regulation. A week prior, the president of the European Central Bank (ECB), Christine Lagarde, called on countries to regulate bitcoin, claiming that the crypto has conducted some funny business and some totally reprehensible money laundering activity. Despite regulators belief, an industry report found that in 2020 crime accounted for only 0.34% of all crypto transactions.

Meanwhile, several U.S. lawmakers have said that governments should not try to stop bitcoin. Rep. Patrick McHenry previously said:

Due to the nature of the technology of Bitcoin, governments cannot kill it, nor should they.

Furthermore, the U.S. now has a bitcoin-friendly lawmaker. Senator Cynthia Lummis has vowed to ensure Congress understands that bitcoin is a great store of value. She is a hodler, who believes that bitcoin has shown great promise and may rise as a viable alternative store of value to the U.S. dollar both on the institutional level and the personal level.

What do you think of the Harvard professors view on bitcoin? Let us know in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Harvard Economics Professor: Governments Will Not Allow Bitcoin on a Big Scale and They Will Win Regulation Bitcoin News - Bitcoin News

Among such countries in Africa. For the past few years, the economy of Africa was going through a turmoil situation. In such a scenario, the adoption of Bitcoin in Africa helped it to recover from that situation.

In 2016-2017, the African nationals were suffering from a high inflation rate in their economies. After the inclusion of Bitcoin, this inflation rate reduced to a great extent. Many sectors of the country are now getting the benefit of regulating Bitcoin in Africa.

If you want to know how Bitcoin is helping the African economy, this article will help you get the correct information. Therefore, lets explore some of the crucial factors regarding this matter.

The circulation of Bitcoin will control the inflation rate in the country. It will help the government to develop the African economy in the country to a great extent. The system will be smoother, and the value of Bitcoin will help to boost its economy.

The rate of increasing inflation in the country makes the economy crumble, and for the African nation, these factors are becoming more common every day. Therefore, the circulation of Bitcoin will boost the economy. Visit bitcoin up login and you will get more information about it.

The transaction system of Bitcoin is virtual and will help improve the countrys banking system structure. Cryptocurrency is unregulated in many countries globally, and so it will make the transaction faster and easier.

It will help you to develop the economy of many nations worldwide. More investors will show their interest in investing their money in the banking and financial instruments in Africa.

The fraudulent activities in the financial sector of Africa are increasing at a rapid rate. Due to the application of Blockchain Technology, these problems will no longer crop up in the system. It will make the system safer, and the chances of data theft will be significantly reduced.

If you want to develop your financial system, then the application of Bitcoin is a must for the African economy. The only thing that you must remember here is to keep your private keys in safe wallets so that you may not lose them.

When the African government has introduced Bitcoin in their country, then the demand for this currency has increased a lot. These have resulted in the reduction of the dependence on fiat currency.

It will pose serious competition to the other currencies of the country. It will help the economy grow as the other currencies will also try to upgrade their value. Therefore, gradually, the African economy will grow, reducing the rate of poverty in the nation.

The requirement for Bitcoin is increasing in Africa because the African economy is suffering from many financial problems for the past few years. It will increase the investors interest to invest their money in the African economy. If you want to develop your economy faster, then adopting Bitcoin will help you achieve it.

Hence, if you are an African citizen, you must be happy to know that introducing Bitcoin in your economy will help your country reduce the countrys poverty rate. Many countries in the world will show their interest in increasing their investment in Bitcoin.

It is the correct time to invest your money in Bitcoins if you are an African citizen. Bitcoin is improving the economy of Africa gradually. It will boost the economy to grow further. The development rate in the financial sector will be there in the country. Try to make use of Bitcoin in your transaction to help your economy to grow.

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How Bitcoin Is Helping Africans Escape the Clutches of Poverty - Onrec

1. Bitcoin (BTC USD) Latest News, Quote: Prices Sink With XRP, Ether  Bloomberg
2. Bitcoin falls as record-breaking rally loses steam  CNBC
3. JPMorgan Predicts Bitcoin Price Could Rise Over $146,000 in Long Term - CoinDesk  CoinDesk
4. Bitcoin plummets 17% for its biggest drop since March as its record-shattering rally stumbles  Business Insider
5. Four factors that are pushing investors into buying bitcoins  Mint
6. View Full Coverage on Google News

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Bitcoin (BTC USD) Latest News, Quote: Prices Sink With XRP, Ether - Bloomberg

SINGAPORE Bitcoin's record-smashing rally seen in recent weeks was partly driven by the entry of more big, institutional investors into the market, according to PwC's global crypto leader Henri Arslanian.

The digital currency surged over $30,000 for the first time on Saturday and had advanced more than 300% in 2020, Reuters reported. On Monday afternoon in Asia, Bitcoin traded at around $32,668.93, according to CoinDesk.

The cryptocurrency has been around for a little over a decade, but it only began to rise in popularity among mainstream institutional investors last year. Crypto bulls have said that bitcoin is seen as a hedge against inflation, similar to gold.

"When you look at this bitcoin rally that we have been seeing in the last couple of weeks and months, really, there's two big elements driving it. One is the continuous entry of institutional players," Arslanian said Monday on CNBC's "Street Signs Asia."

Bitcoin's price resurgence last year was in part fueled by well-known Wall Street billionaires publicly backing the cryptocurrency. Analysts said their endorsement gave confidence to otherwise skeptical, mainstream investors. Investors such as Paul Tudor JonesandStanley Druckenmillerhave both put money in bitcoin and pointed out its potential as an inflation hedge.

studioEAST | Getty Images

Large financial companies likePayPaland Fidelity have also made moves in the cryptocurrency while the likes ofSquareandMicroStrategyhave used their own balance sheets to buy bitcoin.

Arslanian said he expects that trend to continue over the coming months, pointing out that there are various instruments now that allow institutional players to get exposed to bitcoin. "But also there's a lot of regulated players as well. This was not the case a couple of years ago," he said.

A second development driving the current bitcoin rally is retail investors and their fear of missing out, according to Arslanian. He said a lot more people today have accounts on crypto exchanges than before as buying cryptocurrencies is easier now than before.

"With these two big elements driving it, there's a lot of momentum going on in the space. There's a lot of optimism in the crypto markets as well," he said.

Bitcoin's recent performance is reminiscent of its frenzied rally to nearly $20,000 in 2017, which was followed by a sharp pullback in 2018, wiping out billions of dollars in the market capitalization of major cryptocurrencies. But crypto fans say the current rally is different as it is driven by institutional buying rather than retail speculation.

For his part, Arslanian said one big difference between this rally and the one seen in 2017 is clarity in regulations, which was scarce back then. Today, he said, most regulators around the world have people working on crypto internally. Many of the large financial centers have "pretty good regulatory clarity on crypto markets and that is giving comfort, not only to institutional investors but also retail investors as well coming in the market," he said.

While Arslanian declined to put a price target on bitcoin for this year, he said the current momentum remains optimistic. "More than the price of bitcoin, I'm watching the number of new institutional players coming in, which I think have an outsized impact on the markets," he added.

CNBC's Ryan Browne contributed to this report.

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Bitcoin is breaking records because bigger investors are buying it now, says PwC - CNBC

There comes a point in every investors journey when he must admit he is wrong about something.In my case, I was wrong about bitcoin and whether it would ever be considered a legitimate asset class.This realization dawned on me in the last month when the price of bitcoin passed its December 2017 highs of $20,000. My prior belief was that bitcoin wouldnt surpass these highs for many years, if at all.I didnt think that bitcoin was going to zero, but I also didnt think it would eclipse its December 2017 peak anytime soon.

Nick Maggiulli is chief operating officer at Ritholtz Wealth Management and author of the Of Dollars and Data financial blog, where a version of this article first appeared.

Now that it has surpassed that peak by over 50%, I have come to realize that bitcoin isnt theone-trick ponyI thought it was. As Paulo Coelho wrote inThe Alchemist:

Well, here we are again. Bitcoin is on another spectacular bull run and investors are taking notice.Now that bitcoin has survived (and thrived) beyond its 2017 peak, many investors who used to see it as a joke are now realizing it isnt one.I am one of them.

I have changed my tune on bitcoin, but not because of many of the arguments put forth by bitcoin bulls.For example, bitcoin bulls have claimed that bitcoin would be used as a currency, that the U.S. dollar would plummet in value and thatthe halvingin May 2020 would increase bitcoins price.They were wrong on all counts, yet bitcoins price has still gone up.

What the bitcoin bullswereright about was increased adoption and the ability of many bitcoin owners to hold (HODL) even as prices rose dramatically.These two effects (more demand from buyers and reduced supply from sellers) have helped to boost bitcoins price and cement it as a legitimate asset class within the investment community.As a result, bitcoin has become a form of digital gold.You may not agree with this assessment, but if you still think bitcoin is going to zero you should reconsider your assumptions.

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Related: SkyBridge's Bitcoin Cache Rises to $310M as New Fund Launches

The problem with arguing that bitcoin is going to zero is there are too many investors who are willing to buy it at a price far above $0.I remember speaking to many non-crypto investorsbeforethe recent run-up in price who said they wouldnt buy bitcoin at $10,000, but if it dropped to $1,000-$2,000 they would surely jump in.

Well, guess what?Now that the current price is above $30,000, some of those investors have likelyincreasedthe limit at which they would consider buying bitcoin.Instead of buying at $1,000 these same investors may be happy to jump in closer to $10,000.And every time the price goes up in the future, these mental buy limits go up as well, increasing the likelihood of bitcoins future survival.

But Nick, bitcoin doesnt have any intrinsic value!Well, guess what?Neither does gold,which has a $10 trillion market capitalization!So if you want to argue against bitcoin on intrinsic value terms, then you have to argue against gold, too. Because both the price of gold and the price of bitcoin are based around one thing and one thing alone belief, the belief that these assets will have value in the future.

See also: Pondering Durian Why >15% of My Net Worth Is in Bitcoin

And right now the collective belief in bitcoin is increasing.The cult is becoming areligion.Dont just take my word for it though.There are plenty of articles (seehere,here andhere) that discuss this increased adoption within the investment community. And if this trend continues (as it probably will), then we are evenlesslikely to see a future without bitcoin.

Now that bitcoin is here to stay, you might be wondering how it will behave in the future.Will increased adoption lead to higher prices?I have no idea!What I do know is bitcoin is a speculative asset class. Therefore, we should look at other speculative asset classes as a guide for how bitcoin might behave.And I believe there is no better speculative asset to use for this comparison than the early years of gold as an investment.

While gold has been around for millennia as a form of money, it wasnt untilAugust 1974 in the U.S.that it was an investable asset class.And in the six years following its reintroduction to the investment community (1974-1980), gold tripled in value in real terms (i.e., the yellow line below):

But since that tripling, it hasnt performed all that well.Though bitcoin is unlikely to follow a similar path to gold, it is likely to exhibit similarbehavior. This means bitcoin will continue to have huge run-ups in price followed by violent crashes that may last years (and possibly decades) in the future.We have already seen this kind of behavior from bitcoin before and I am quite confident we will see it again.

The difference between bitcoin and gold is that bitcoin is still gaining adoption among investors.

The difference between bitcoin and gold is that bitcoin is still gaining adoption among investors. Will that continue at its current pace into the future?Who knows?However, if bitcoins market capitalization were to match that of gold, it would be worth over $500,000 a coin. This is why some investors are so bullish on bitcoin.

However, there are still some reasons to be bearish.The main one is that bitcoin is associated with some of the most speculative investment activity out there.This is most apparent when comparing its price movement to the price movement of another speculative cryptocurrency dogecoin.Though you may not have heard of dogecoin, it is an alternative crypto currency (altcoin) that is kind ofan inside joke on the internet.

And since dogecoins price is aclearindicator of speculative behavior, if we look at the correlation between dogecoin and bitcoin we can get a better feel for how much speculation might be occurring in bitcoin at any point in time:

As you can see, over the last three years the correlation between dogecoin and bitcoin has been quite high, with the most recent correlation reading around 0.8.

But if we compare dogecoin to gold, we see that the correlation between their prices tends to center around 0:

This is just more evidence that bitcoin is associated with speculative activity and will continue to behave like a speculative asset in the future.

Though I have changed my mind on bitcoin, I havent necessarily changed my view on how one should invest in it. I believe the only prudent way to invest in this asset class without any long-term negative repercussions is to holdno more than2% of your portfolio in it. I wouldnt recommend this approach for everyone, but it may work for some people.By limiting your exposure to 2% of your portfolio youre unlikely to get rich, but youre unlikely to go bankrupt either.

Why 2%?This was the allocation I gotwhen I worked out the optimal portfolioback in October 2017.Anything more than 2% adds too much risk (per unit return) to your portfolio and anything less than 2% reduces your returns (per unit risk) too much.Of course, the optimal portfolio is the best solution for the past, not the future.Either way, I dont see the harm in a 2% allocation, but please do your own research first.

See also: Ajit Tripathi Why Im Long Crypto, Short DLT

The biggest risk I see to owning bitcoin going forward isnt a price crash (which is inevitable), but the possibility of a government ban on ownership.This might seem outlandish but in April 1933 the U.S. governmentbanned the ownership of gold bullion/coinagefor all U.S. citizens.The reasons for that ban are very different from a bitcoin ban that could happen today, but withthe recent Securities and Exchange Commission complaint against Ripple I wouldnt rule it out completely.

Lastly, I might be wrong on many of the things I have stated today or in the past.But I dont blog so that I can be right. I do it so I can learn more about investing and get closer to the truth.As economist John Maynard Keynes (or Paul Samuelson)supposedly said:

When the facts change, I change my mind. What do you do, sir?

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Why Ive Changed My Mind on Bitcoin - Yahoo Finance

TipRanks

Weve turned a new page on the calendar, Old Man 20 is out the door, and theres a feeling 21 is gonna be a good year and so far, so good. The markets closed out 2020 with modest session gains to cap off larger annual gains. The S&P 500 rose 16% during the corona crisis year, while the NASDAQ, with its heavy tech representation, showed an impressive annual gain of nearly 43%. The advent of two viable COVID vaccines is fueling a surge in general optimism.Wall Streets top analysts have been casting their eye at the equity markets, finding those gems that investors should give serious consideration in this new year. These are analysts with 5-star ratings from TipRanks database, and they are pointing out the stocks with Strong Buy ratings in short, this is where investors can expect to find share growth over the next 12 months. We are talking returns of at least 70% over the next 12 months, according to the analysts. ElectraMeccanica Vehicles (SOLO)Electric vehicles, EVs, are growing more popular as consumers look for alternatives to the traditional internal combustion gasoline engine. While EVs simply move the source of combustion from under the hood to the electric power plant, they do offer real advantages for drivers: they offer greater acceleration, more torque, and they are more energy efficient, converting up to 60% of their battery energy into forward motion. These advantages, as EV technology improves, are starting to outweigh the drawbacks of shorter range and expensive battery packs.ElectraMeccanica, a small-cap manufacturer from British Columbia, is the designer and marketer of the Solo, a single-seat, three-wheel EV built for the urban commuter market. Technically, the Solo is classed as an electric motorcycle but it is fully enclosed, with a door on either side, features a trunk, air conditioning, and a Bluetooth connection, and travels up to 100 miles on a single charge at speeds up to 80 miles per hour. The recharging time is low, less than 3 hours, and the vehicle is priced at less than $20,000.Starting in Q3 2020, the company delivered its first shipment of vehicles to the US, and expanded into six additional US urban markets, including San Diego, CA and Scottsdale and Glendale, AZ. ElectraMeccanica also opened four new storefronts in the US 2 in Los Angeles, one in Scottsdale, and one in Portland, OR. In addition, the company has begun design and marketing work a fleet version of the Solo, to target the commercial fleet and car rental markets starting in the first half of this year.Craig Irwin, 5-star analyst with Roth Capital, is impressed by SOLOs possible applications to the fleet market. He writes of this opening, We believe the pandemic is a tailwind for fast food chains exploring better delivery options. Chains look to avoid third party delivery costs and balance brand identity implications of operator- vs. company-owned vehicles. The SOLO's 100-mile range, low operating cost, and std telematics make the vehicle a good fit, in our view, particularly when location data can be integrated into a chain's kitchen software. We would not be surprised if SOLO made a couple announcements with major chains after customers validate plans.Irwin puts a Buy rating on SOLO, supported by his $12.25 price target which implies a 98% upside potential for the stock in 2021. (To watch Irwins track record, click here)Speculative tech is popular on Wall Street, and ElectraMeccanica fits that bill nicely. The company has 3 recent reviews, and all are Buys, making the analyst consensus a unanimous Strong Buy. Shares are priced at $6.19 and have an average target of $9.58, making the one-year upside 55%. (See SOLO stock analysis on TipRanks)Nautilus Group (NLS)Based in Washington State, this fitness equipment manufacturer has seen a massive stock gain in 2020, as its shares rocketed by more than 900% over the course of the year, even accounting for recent dips in the stock value. Nautilus gained as the social lockdown policies took hold and gyms were shuttered in the name of stopping or slowing the spread of COVID-19. The company, which owns major home fitness brands like Bowflex, Schwinn, and the eponymous Nautilus, offered home-bound fitness buffs the equipment needed to stay in shape.The share appreciation accelerated in 2H20, after the companys revenues showed a recovery from Q1 losses due to the corona recession. In the second quarter, the top line hit $114 million, up 22% sequentially; in Q3, revenues reached $155, for a 35% sequential gain and a massive 151% year-over-year gain. Earnings were just as strong, with the Q3 $1.04 EPS profit beating coming in far above the year-ago quarters 30-cent loss.Watching this stock for Lake Street Capital is 5-star analyst Mark Smith, who is bullish on this stock. Smith is especially cognizant of the recent dip in share price, noting that the stock is now off its peak which makes it attractive to investors. Nautilus reported blowout results for 3Q:20 with strength across its portfolio We think the company has orders and backlog to drive high sales and earnings for the next several quarters and think we have seen a fundamental shift in consumers' exercise-at-home behavior. We would view the recent pull back as a buying opportunity, Smith opined.Smiths $40 price target supports his Buy rating, and indicates a robust 120% one-year upside potential. (To watch Smiths track record, click here)The unanimous Strong Buy consensus rating shows that Wall Street agrees with Smith on Nautilus potential. The stock has 4 recent reviews, and all are to Buy. Shares closed out 2020 with a price of $18.14, and the average target of $30.25 suggests the stock has room for ~67% upside growth in 2021. (See NLS stock analysis on TipRanks)KAR Auction Services (KAR)Last but not least is KAR Auction Services, a car auctioning company, which operates online and physical marketplaces to connect buyers and sellers. KAR sells to both business buyers and individual consumers, offering vehicles for a variety of uses: commercial fleets, private travel, even the second-had parts market. In 2019, the last year for which full-year numbers are available, KAR sold 3.7 million vehicles for $2.8 billion in total auction revenue.The ongoing corona crisis, with its social lockdown policies, put a damper on car travel and reduced demand for used vehicles across market segments. KAR shares slipped 13% in 2020, in a year of volatile trading. In the recent 3Q20 report, the company showed revenue of $593.6 million, down over 15% year-over-year. Third quarter earnings, however, at 23 cents per share profit, were down less, 11% yoy, and showed a strong sequential recovery from the Q2 EPS loss of 25 cents.As the new vaccines promise an end to the COVID pandemic later this year, and the lifting of lockdown and local travel restrictions, the mid- to long-term prospects for the second-hand car market and for KAR Auctions are brightening, according to Truist analyst Stephanie Benjamin.The 5-star analyst noted, Our estimates now assume that the volume recovery occurs in 2021 vs. 4Q20 under our previous estimates Overall, we believe the 3Q results reflect that KAR is well executing on the initiatives within its control, specifically improving its cost structure and transforming to a pure digital auction model.Looking further ahead, she adds, delinquencies and defaults for auto loans and leases have increased and we believe will serve as a meaningful volume tailwind in 2021 as repo activity resumes. Additionally, repo vehicles generally require ancillary services which should yield higher RPU. This supply influx should also help moderate the used pricing environment and drive dealers to fill up their lots, which remain at three-year lows from an inventory standpoint.In line with these comments, Benjamin sets a $32 price target, implying a high 71% one-year upside potential to the stock, and rates KAR as a Buy. (To watch Benjamins track record, click here)Wall Street generally is willing to speculate on KARs future, as indicated by the recent reviews, which split 5 to 1 Buy to Hold, and make the analyst consensus view a Strong Buy. KAR is selling for $18.61, and its $24.60 average price target suggests it has room to grow 32% from that level. (See KAR stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that unites all of TipRanks equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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Bitcoin prices could really go haywire if this happens in 2021 - Yahoo Finance

Bitcoin has ended 2020 with a bang. Extending its recent run-away rally, the digital currency breached $33,000 for the first time ever on Friday. Unlike in the past, bitcoin has now caught the fancy of institutional investors and is gaining acceptance as a futuristic store of value. Global fund manager survey by BofA Securities showed long bitcoin" was the third most crowded trade in December, beating gold and corporate bonds.

Bitcoin is now being perceived as an inflation-hedge and an asset with a potential to give mouth-watering returns quickly, analysts said. Bitcoin has almost quadrupled in value this year, outperforming safe havens gold and the US dollar. Foreign research house Jefferies has, for the first time, included bitcoins in its asset allocation for pension funds. It has cut allocation to gold by 5% in favour of bitcoin.

However, as they say, one mans food is anothers poison. Legendary investor Warren Buffett has referred to bitcoin as rat poison squared" and has said he does not see crypto currencies as an investment-worthy asset class.

Ultra cheap money pumped in by global central banks has found its way into many assets, including bitcoin. We are in a scenario where safe-havens and riskier assets are all rallying simultaneously, which is a theoretical contradiction. So much so that even negative-yield bonds are garnering inflows. It has become like hunting with the hounds and running with the hare," said Hitesh Jain, vice president, research, Yes Securities Ltd.

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Large investors who are put off by a weak dollar are flocking towards bitcoin, despite it lacking inherent fundamentals. Unlike gold, bitcoin is extremely volatile. I dont think bitcoin can replace gold as an inflation hedge," he said.

Some analysts in the bearish camp also drew parallels between the current bitcoin rally with that of 2017. They said a crypto rally, which sees allocation shift from safer to riskier assets, is often followed by a deep correction. In 2017, bitcoin had rallied from the low of around $790 to a peak of $19,041 in December. Interestingly, in a December 2017 BofA survey, bitcoin topped the list of most crowded trades. In 2018, it crashed by 74%.

Easy liquidity has helped bitcoin with an easier route to rally. However, the current rally looks stretched and ripe for a fall," said Sahil Kapoor, chief market strategist, Edelweiss Securities Ltd.

Another indicator that is flashing red is the bitcoin-gold ratio, which has risen from the levels of 1.1 to 15 in recent months. Since both gold and bitcoin have finite supply, the bitcoin-gold ratio gives us a sense about which of the two is overvalued. Data shows that the former is poised for a correction," said Sugandha Sachdeva, vice-president, metals, energy and currency research, Religare Broking Ltd.

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2020 was great for bitcoin but experts are wary of a correction - Mint

Long-time market bear David Rosenberg is warning investors the stock market and bitcoin are massive bubbles.

The economist and strategist cites crowded trades amid a struggling economic backdrop for his concerns.

"Based on our [stock market] valuation work, we are anywhere from 20% to 30% overvalued based on a whole bunch of different metrics," the Rosenberg Research president told CNBC's "Trading Nation" last week.

Rosenberg, who served as Merrill Lynch's top North American economist from 2002 to 2009, is known for his pessimism over the past several years. In 2019, he told investors a recession was virtually unavoidable.

He toned down his market negativity last Spring on "Trading Nation" asserting he didn't hate stocks because the Federal Reserve's unprecedented support could last for years. The key right now, according to Rosenberg, is to be vigilant.

"What's holding the boot together is basically zero interest rates. As long as rates remain where they are, unless we have a real dramatic pullback in economic activity, this bubble that we're in is probably not going to burst any time soon," he said. "We have to understand though we are investing in a bubble."

The major indexes are starting 2021 in record territory. The S&P 500 and Dow closed at all-time highs on Thursday, surging 16.3% and 7.3%, respectively, over the past year. The tech heavy Nasdaq missed a new record high by a hair, but had its best year since 2009 up almost 44%.

Rosenberg is also avoiding bitcoin, which also just completed a monster run. It crossed $30,000 for the first time over the weekend and closed 2020 at record highs. The cryptocurrency jumped 305% this year, for its best annual performance since 2017.

"The parabolic move in bitcoin in such a short time period, I would say for any security, is highly abnormal," said Rosenberg, who considers it the biggest market bubble right now.

For the next 12 months, Rosenberg plans to avoid last year's winners. His top strategy include laggards utilities and energy.

"What I want to do actually in the context of this bubbly stock market is invest in the areas that are not bubbly and that have a lot of catch-up potential," he said. "They do exist."

But there is an exception: Gold, which just completed its best year in a decade. Rosenberg views it as a safe haven asset.

"It has 1/5 of the volatility that bitcoin does," Rosenberg said. "I've been very bullish on gold, and I remain bullish on gold."

The precious metal ended the year at $1,895.10 an ounce, a fraction of a percent below all-time highs.

Disclosure: David Rosenberg is in the process of buying SPX puts. He owns energy and pipelines (utilities) and gold.

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Stocks and bitcoin are massive bubbles, long-time bear David Rosenberg warns - CNBC

12 years ago, Bitcoins inventor Satoshi Nakamoto launched the network after revealing the cryptocurrency concept via the white paper a few months prior. At approximately 18:15:05 UTC, the network launched its first block and since then, over 664,000 bitcoin blocks have been mined. Moreover, on the 12th anniversary of the network coming to life, a large string of 2010 block rewards started moving after more than ten years of sitting idle.

Cryptocurrency proponents are celebrating the invocation of the first computational network to solve the Byzantine Fault dilemma created by the pseudonymous inventor Satoshi Nakamoto. The birth of the Bitcoin (BTC) network is quite special and over the last 12 years, the crypto asset has become extremely valuable reaching a high today on January 3, at $34,800 per unit.

After Satoshi shared his cryptocurrency concept to a few interested individuals online on Halloween 2008, a little more than three months later he launched the hardcoded block reward, otherwise known as block zero or the genesis block.

Block zero or the genesis block has the usual 50 bitcoin reward, but these particular bitcoins can never be spent. The genesis block has two leading hex zeroes as well, which was a common characteristic for early blocks back then. Furthermore, the infamous block zero also contained a message that can be found in the blocks coinbase parameter.

This first blockchain message etched into Satoshis hardcoded bitcoin block says:

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.

The genesis block today not only has the 50 bitcoin block reward that cannot be spent, but also people have sent small fractions of bitcoin to the address ever since it was launched. The genesis block address has seen approximately 2,722 transactions and theres now a cumulative total of 68.35 BTC sitting idle.

These days, bitcoin blocks are quite predictable and are processed every 10 minutes or so by miners. But the block (1) that followed the hardcoded genesis block did not occur until seven days later. The first transaction with the software programmer, Hal Finney, took place in block 9 or three whole days after block 1 was mined.

Now Satoshi Nakamoto also spent time with the community, all the way until December 2010. It is well known that the inventor also mined the crypto asset during those months he spent curating the network with the community.

Interestingly, it is assumed by various academic papers that Nakamoto had mined anywhere between 700,000 to 1.1 million BTC during his tenure kickstarting the network. The inventor did this allegedly with a single Windows-based personal computer. It is also assumed that Nakamoto has not spent any coins since they were initially mined, and his stash of a million bitcoin has sat idle since they were issued.

Quite a lot of old coins that stem from coinbase rewards have not been spent and they have sat dormant for well over ten years. For example, the onchain researchers from Glassnode tweeted on December 18, 2020, that 1.78 million bitcoins have never left their miner address.

Interestingly, last year in 2020, news.Bitcoin.com discovered an old-school miner or miners who spent a consecutive number of 2010 block rewards in strings. Every string spent last year, has been around 20 to 21 block rewards from 2010 and these coins never moved once since the day they were issued.

Surprisingly, the mystery miner or miners have spent another large string of sleeping bitcoins from the Satoshi-era today on the 12th anniversary of the Bitcoin network launch. On January 3, 2021, precisely 20 block rewards from 2010 were spent at block height 664,263. The old school miner from 2010 sent the 1,000 bitcoins worth over $33.9 million to a BTC address that started with 35grPirp.

After the initial consolidation, the 1,000 BTC was split up into fractions following the exact same patterns news.Bitcoin.com discovered with all the other 2010 block strings. Todays 20 block spend was caught by Btcparser.com, and a visual perspective of the string of 2010 blocks spent on theholyroger.coms Satoshi Bags Tracker.

Usually, this miner, if it is one single entity will spend one more 2010 block a little later on in the day to make the tally 21 block rewards spent. Decade-old block reward spends from the Satoshi era are quite rare, but they have been picking up steam since 2020.

It is also worth noting that the old school miner always spends the corresponding bitcoin cash (BCH) block rewards too, but not the bitcoinsv (BSV) rewards. The only time the miner spent block rewards on all three chains was the 21 block rewards from 2010 spent on March 11, 2020, the day before the infamous Black Thursday.

Todays block spends from 2010 are quite special, seeing how they were transferred on Bitcoins birthday, while the crypto asset also touched another all-time price high as well.

We really dont know if these coins were sold or plan to be sold on the open market. The technical term spent simply means the coins left the original address they stemmed from, and it doesnt necessarily mean the coins are being sold on exchanges. Moreover, the term Satoshi-era, also doesnt mean the coins derived from Nakamoto either, as the term simply means the inventor was around during this time period.

What do you think about the 12th year anniversary of the Bitcoin blockchain? Let us know what you think about this subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Btcparser.com, Bitcoin.com, Holyroger.com,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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1000 Decade-Old Dormant Bitcoins Moved Today on Bitcoin's 12th Anniversary - Bitcoin News