Category Archives: Bitcoin

TipRanks

A new year, a new addition to the stock portfolio what can make more sense than that? The right time to buy, of course, is when stocks are priced at the bottom. Buying low and selling high may be a bit hackneyed, but its true, and truth has staying power.But the markets are up. The NASDAQ rose 43% in 2020, and the S&P 500 showed a gain of 16%. With a market environment like that, finding stocks that are caught in the doldrums is harder than it looks. That's where the Wall Street pros can lend a hand.We used TipRanks' database to pinpoint three stocks that fit a profile: a share price that has dropped over 30% in the last 12 months, but with at least double-digit upside potential, according to analysts. Not to mention each has earned a Moderate or Strong Buy consensus rating.Esperion (ESPR)We will start with Esperion, a company that specializes in therapies for the treatment of elevated low-density lipoprotein cholesterol levels a major factor contributing to heart disease. The companys main product, bempedoic acid, is now available in tablet form under the brand names Nexletol and Nexlizet.In February 2020, both Nexletol and Nexlizet were approved as oral treatments to lower LDL-C. Bempedoic acid remains in clinical trials of its efficacy in risk reduction for cardiovascular disease. The trial, called CLEAR Outcomes, is a large-scale, long-term study, tracking more than 14,000 patients with top-line data expected in the second half of 2022. The study covers 1,400 locations in 32 countries around the world.Esperion shares peaked last February, after the FDA approvals, but since then, the stock has declined. Shares are down 65% since their peak. Along with the drop in share value, the company showed a fall in revenue from Q2 to Q3, with the top line collapsing from $212 million to $3.8 million. Since the Q3 report, Esperion announced pricing on a $250 million offer of senior subordinated notes, at 4%, due in 2025. The offering gives the company a boost in available capital for further work on its development pipeline and its marketing efforts for bempedoic acid.Chad Messer, covering ESPR for Needham, sees the note offering as a net positive for Esperion. We believe this cash position will be sufficient to support Esperion through 2021 and to profitability in 2022... We believe this financing should help put to rest concerns regarding Esperion's balance sheet. Despite a challenging launch for NEXLETOL and NEXLIZET, product growth has continued in 3Q against the backdrop of a contracting LDL-C market. This growth trajectory suggests potential for a rapid acceleration when conditions improve," Messer wrote.To this end, Messer rates ESPR shares a Strong Buy, and his price target, at $158, suggests the stock has room for huge growth this year up to 481% from current levels. (To watch Messers track record, click here)Overall, Esperion has 6 recent reviews on record, with a breakdown of 5 Buys and 1 Hold to give the stock a Strong Buy rating from the analyst consensus. The shares, trading at $27.16, have an average price target of $63.33, implying a one-year upside of 133%. (See ESPR stock analysis on TipRanks)Intercept Pharma (ICPT)Liver disease is a serious health threat, and Intercept Pharma is focused on developing treatments for some of the more dangerous chronic liver conditions, including nonalcoholic steatohepatitis (NASH) and primary biliary cholangitis (PBC). Intercept has a research pipeline based on FXR, a regulator of bile acid pathways in the hepatic system.FXRs action affects not just the bile acid metabolism, but also the glucose and lipid metabolisms, and inflammation and fibrosis around the liver. The lead compound, obeticholic acid (OCA), is an analog of the bile acid CDCA, and as such can take a role in the FXR pathways and receptors implicated in chronic liver disease. Treating liver disease through the FXR biology has direct applications for PBC, and is showing promise treating complications from NASH.ICPT shares dropped sharply last summer, when the FDA rejected the companys application to approve OCA for treatment of NASH-related liver fibrosis. This delays the drugs potential entry to a lucrative market; there is no current treatment for NASH, and the first drug to win approval will have the lead in reaching a market estimated at $2 billion to $5 billion in potential annual sales. The effect on the stock is still felt, and ICPT remains at its 52-week low point.In reaction, in December of 2020, Intercept announced major changes in top-level management, as CEO and President Mark Pruzanski announced he's stepping down effective January 1 of this year. He is succeeded by Jerome Durso, formerly the companys COO, who will also take a post on the Board of Directors. Pruzanski will remain as an advisor, and will hold a directors position on the companys Board.Piper Sandler analyst Yasmeen Rahimi takes a deep dive into Intercepts continuing efforts to expand applications of OCA and to resubmits its New Drug Application to the FDA. She sees the leadership transition as part of these efforts, and writes, [We] believe that Dr. Pruzanski's dedication to transform the liver space is still strong, and that he will continue to guide ICPT's progress as an advisor and Board member. Additionally, we have had the pleasure of working closely with Jerry Durso and believe that he will transform the company and lead ICPT's success in growing the PBC market and the path to potential approval and commercial launch of OCA in NASH.Rahimi takes a long-term bullish stance on ICPT, giving the stock an Overweight (i.e. Buy) rating and an $82 price target. This figure indicates an impressive 220% upside for the next 12 months. (To watch Rahimis track record, click here)Wall Street is somewhat more divided on the drug maker. ICPT's Moderate Buy consensus rating is based on 17 reviews, including 8 Buys and 9 Holds. Shares are priced at $25.82, and the average price target of $59.19 suggests an upside potential of 132% for the next 12 months. (See ICPT stock analysis on TipRanks)Gilead Sciences (GILD)Gilead has had a year like a firework fast up and fast down. The gains came in 1H20, when it appeared that the companys antiviral drug remdesivir would become a prime treatment for COVID-19. By November, however, even though remdesivir had been approved, the World Health Organization (WHO) was recommending against its use, and the COVID vaccines now on the market have made remdesivir irrelevant to the pandemic.This was only one of Gileads recent headwinds. The company has been working, in conjunction with Galapagos (GLPG), on development of filgotinib as a treatment for rheumatoid arthritis. While the drug received EU and Japanese approval in September 2020, the FDA has withheld approval and Gilead announced in December that it was suspending US development efforts on the drug.Even so, Gilead retains a diverse and active research pipeline, with over 70 research candidates at varying stages of the development and approval process for a wide range of diseases and conditions, including HIV/AIDS, inflammatory & respiratory diseases, cardiovascular disease, and hematology/oncology.On a positive note, Gilead posted Q3 earnings above estimates, with the top line revenue, of $6.58 billion, beating the forecast by 6% and growing 17% year-over-year. The company updated its full-year 2020 guidance on product sales from $23 billion to $23.5 billion.Among the bulls is Oppenheimer analyst Hartaj Singh, who gives GILD shares an Outperform (i.e. Buy) rating and $100 price target. Investors stand to pocket a 69% gain should the analysts thesis play out. (To watch Singhs track record, click here)Backing his stance, Singh writes, We continue to believe in our thesis of (1) a dependable remdesivir/other medicines business against SARS-CoV flares, (2) a base business (HIV/oncology/HCV) growing low-single digits over the next couple of years, (3) operating leverage providing greater earnings growth, and (4) a 3-4% dividend yield. What does the rest of the Street think? Looking at the consensus breakdown, opinions from other analysts are more spread out. 10 Buys, 12 Holds and 1 Sell add up to a Moderate Buy consensus. In addition, the $73.94 average price target indicates 25% upside potential from current levels. (See GILD stock analysis on TipRanks)To find good ideas for beaten-down 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.

Continue reading here:
Bitcoin prices could really go haywire if this happens in 2021 - Yahoo Finance

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.

Story continues

Related: First Mover: As Bitcoin Rally Pauses, DeFi Keeps Astounding

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?

More here:
Why Ive Changed My Mind on Bitcoin - Yahoo Finance

Representation of the Bitcoin cryptocurrency is seen in this illustration photo taken in Poland on ... [+] January 4, 2021. (Photo Illustration by Jakub Porzycki/NurPhoto via Getty Images)

You may have noticed that everyone under the sun is talking about Bitcoin following itsmeteoric rise to $30,000. But far less people are talking about GPU mining. Maybe because the idea of turning on your computer and having it magically generate an income feels elusive to you. And maybe because GPU mining and cryptocurrency are considered dirty words to PC gamers.

Especially to PC gamers lookingto build their own rig in a retail landscape thats seen the prices of graphics cards from AMD and Nvidia inflate once again to atrocious levels.

But for those of you who already own a gaming PC, you might be surprised how much money you can make mining with it, and just how effortless it is.

Back in 2013 when I first started mining, getting a client up and running was a serious challenge. Basic knowledge of Linux and terminal commands were hard requirements. But now its a snap to get up and running on a Windows PC using software called NiceHash.

No command lines, no messy configuration files although theyre there if you need them. Just an installer, some quick auto-benchmarks, and then your GPU gets to work.

The software even generates a Bitcoin wallet address for you, and lets you start mining automatically when your PC is idle.

A basic status and profitability overview on Nicehash.com

Never take any advice blindly. Read these notes before deciding to dive in.

So, lets talk money.

Radeon "monogram logo" from the Radeon VII graphics card

For the values below, I used the NiceHash Profitability Calculator and assumed a 0.13 USD/kWh electricity cost (the national average in the US as of December 2020), meaning youre seeing profits after paying for the power consumption of that GPU. Your mileage may vary is an understatement here. And kudos to you if your electricity costs are cheaper!

The value of Bitcoin is in constant flux, and these calculations are based on a Bitcoin to USD exchange value of $31,392.98 on January 5, 2021. As the value of Bitcoin climbs, so do your potential profits. The reverse is of course true, so always exercise caution.

But its worth pointing out that 3 years ago in January 2018, 1 Bitcoin was worth only about $11,000. . .

All of the GPUs listed below were tested in the companys labs, and are pulled from actual profit numbers from users, not estimated ones.

I can personally vouch for the accuracy of the Radeon VII, Radeon RX 6800 XT, and RTX 2080 Super estimates.

Monthly profit for select Nvidia GeForce cards:

While I dont advise buying any GPUs exclusively for the purpose of mining (costs are much higher than MSRP and your ROI return on investment would take quite some time), right now the RTX 3060 Ti seems to be best overall value. If you can find one

Monthly profit for select AMD Radeon cards:

Yes, believe it or not the Radeon VII is still the compute king. And AMDs last-gen RX 5000 series still puts up excellent numbers. Even Polaris cards like the RX 480/580 are performing decently, provided they are the 8GB VRAM models.

What About CPUs?

Even a beefy Ryzen Threadripper CPU has the potential to turn a profit.

Yes, you can use higher-end CPUs (Nicehash will primarily use these to mine Monero and convert it to BTC), but it will render your PC unusable for day-to-day tasks. Unless youre rocking newer AMD Ryzen Threadrippers, the daily profit for most gaming CPUs (less than $0.50) probably isnt worth the hassle.

What About Gaming Laptops?

You can use NiceHash with your gaming laptop, but that doesnt mean you should. If its your only option and you want to give it a shot, I caution against putting both your GPU and CPU to work simultaneously due to thermal and throttling concerns. The majority of gaming laptops dont have full-fat GPUs either.

Conclusion

Obviously these profit numbers will fluctuate for you, especially since youre probably going to use your rig and not dedicate it solely to mining. Then again, if you have a spare GPU youre not using, you can easily slot that into your PC and tell NiceHash to use that one and not your dedicated gaming GPU.

Better to have it collecting Bitcoin than collecting dust.

See more here:
How To Earn Bitcoin With Your PC In 2021 - Forbes

Some in the financial establishment seem to have been won round

Jan 4th 2021

TWELVE YEARS ago, on January 3rd 2009, a headline on the front page of the Times read: Chancellor on brink of second bail-out for banksa reference to the British governments efforts to save the countrys financial system from collapse. When Satoshi Nakamoto, the mysterious inventor of bitcoin, created the first 50 coins, now called the genesis block, he permanently embedded the date and that headline into the data. The hidden text was a digital battle cry. Mr Nakamoto had decided it was time for something new: a decentralised cryptocurrency, free from the control of governments and central banks.

Mr Nakamoto has vanished from public view, but his invention has gained prominenceand lately has been soaring in value too. It first gained widespread attention in 2013 as a financial curiosity, when its price climbed above a then giddy-looking $400. In 2017, in a frenzy of speculation (and Google searches), the price spiked just shy of $20,000. It quickly plummeted. In December 2018 it sank to $3,200. As recently as October it was worth just $10,600. But then it began to climb again, passing its old peak on December 17th and ascending to a new high, above $34,000, on January 3rd. It fell back a bit the next day.

Over the years bitcoin has spawned an entire crypto-ecosystem, including lots of copycat currencies, such as Ethereum, a rival token, and Dogecoin, a joke digital coin; and several exchanges to trade cryptocurrencies, such as Mt. Gox, now defunct, and Coinbase, founded in 2012. Many have dismissed investing in it as a pursuit for those on the financial (or even legal) fringe.

But the cryptocurrency has minted a handful of bitcoin billionaires and scores of millionaires. Others are eager to join their ranks. Last week it was reported that Russell Okung, of the Carolina Panthers, would become the first player in Americas National Football League to be paid in bitcoin (he will get half his pay that way). The London Underground is plastered with advertisements wooing potential investors. And the latest surge seems to have been spurred by interest from the financial establishment, most of which long scorned it.

Paul Tudor Jones of Tudor Investments, which manages $22bn, has said his fund could increase its bitcoin position to as much as a low single digit percentage of his fund. Bill Miller of Miller Capital has opined that the chance of the tokens value falling to zero was lower than it had ever been. Stanley Druckenmiller, a former protg of George Soros, has also warmed to the idea of using bitcoin as a hedge in place of gold, which is often used as a financial bet on anarchy, or against inflation. On December 23rd Coinbase filed to go public. A long predicted bitcoin exchange-traded fund (ETF) may finally come to fruition in 2021.

If some portfolio managers have come around to investing in bitcoin, its value could climb further; at least, there may be a floor to its value. If the masses pile in via an ETF, that would also maintain demand. But other investors, such as the managers of huge pension funds, are likely to keep steering clear. They typically invest in things that generate reliable future cashflows, like bonds or stocks, and tend to shy away from things that dont, such as gold, other commoditiesand bitcoin.

Bitcoin was conceived as a currency, for payments and transactions. For that it would need to be stable and easy to use. Yet Mr Druckenmiller likes bitcoin because it is precisely the opposite: thinly traded and thus less liquid and more volatile than gold. It is increasingly treated by those who buy and sell it, and by regulators, as an investment. It may be good news for those holding bitcoin that others are piling in, but speculators enthusiasm suggests that cryptocurrencies will fall far short of their founders lofty goals.

Read more:
Daily Chart - The price of bitcoin has soared to record heights | Graphic detail - The Economist

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.

Disclaimer

Read the original here:
Stocks and bitcoin are massive bubbles, long-time bear David Rosenberg warns - CNBC

Bitcoin continued its unabated rally on the third day of 2021. The most popular cryptocurrency surged past $34,000 on Sunday, the day of Bitcoin Network's 12-year anniversary. The development came within 24 hours of Bitcoin crossing the $30,000 milestone.

With yet another above $1,000 surge, Bitcoin's value has increased around $5,000 in the within the first three days of 2021, bringing its year-to-date returns to 12 per cent, reported Coindesk.

On Saturday, Bitcoin had crossed the $30,000 mark for the first time. During early trade on Sunday, the digital currency reached an all-time high of $34,544.94. It later gave up some gains to hover around $33,000. At the time of writing this report, Bitcoin was trading at $33,900.50, up 10.59 per cent.

Bitcoin's continuous surge during the past three days comes in the backdrop of a historic year when the digital currency gave more than 300 per cent returns, surpassing even safe-haven investment avenues like gold and silver.

Last year, Bitcoin had fallen 25 per cent in March amid the coronavirus crisis. It managed to bounce back, breaching the $20,000 mark for the first time at the end of November. The cryptocurrency then continued to surge, rising 50 per cent in December alone. By the end of December 31, Bitcoin had risen $10,000.

The main reason behind the rise of Bitcoin may be bulk buying by big US investors. They expect to make quick gains amid some positive developments around the cryptocurrency, including speculations that it could become a mainstream payment method.

A major jump in Bitcoin price - from $5,000 to $25,000 - was seen after online payment major PayPal announced in March that it'll enable its account holders to use Bitcoin. This marks a colossal 400 per cent increase in the past eight months. ZebPay, one of India's largest cryptocurrency exchanges, has predicted that Bitcoin's value could hit over $135,000 by 2030.

As Bitcoin grows in popularity, Indian government is planning to impose 18 per cent GST on its transactions. The Central Economic Intelligence Bureau (CEIB), an arm of Finance Ministry, has put forward a proposal to impose 18 per cent GST, saying it could potentially gain Rs 7,200 crore annually on bitcoin trading. The CEIB came to the conclusion based on a study on levying GST on cryptocurrencies.

ALSO READ: Bitcoin surpasses $30,000 as rally continues in 2021

ALSO READ: Centre may impose 18% GST on bitcoin trading

ALSO READ: Gold price rose 28% in 2020; check out targets for next year

See the original post here:
Bitcoin crosses $34,000 first time in 12 years, rises $5,000 in 3 days - Business Today

Kenny Malone and Alice Wilder

Kenny Malone and Alice Wilder

Note: This episode originally ran in 2018.

Plenty of people will tell you they're getting rich off of bitcoin. They could be right. But there's another group of bitcoin owners that aren't so ecstatic. Because they might be rich, too, but they lost the passkey that would let them get at their digital fortune. In the decentralized anti-governmental world of bitcoin, you can't file a claim for damaged or lost currency. You've either got the key, or you don't.

Syl Turner is in that second, less glamorous group. When he got around one-and-a-half bitcoins about a decade ago, they were nearly worthless. So worthless he bunked the hard drive that held the key somewhere and now he can't remember where.

We join Syl on a digital treasure hunt, as he ventures into his attic looking for what could be the key to his bitcoin wallet, and tens of thousands of dollars. Then Kimberly Grauer and Jonathan Levin of Chainalysis help us figure out how much bitcoin has been lost and why it's so difficult to track down, and try to figure out if there's any way to find Syl's vanished riches.

Music: "Wild Baby Rock," "Interstate 65," and "Optimist."

Find us: Twitter / Facebook / Instagram / TikTok

Subscribe to our show on Apple Podcasts, Pocket Casts and NPR One.

It's anyone's guess what 2021 will hold for the economy, so stay informed by subscribing to our Newsletter.

Here is the original post:
Billions in lost Bitcoin: the buried treasure that people can never get back : Planet Money - NPR

The rally in Bitcoin and other cryptocurrencies hasnt run out of the steam despite the 500% surge in 2020, says Charles Edwards, founder, Capriole Investment a digital asset management company specializing in cryptocurrencies such as Bitcoin. In an interview with ET, Edwards says the reduction in supply of Bitcoin along with high inflation rates could auger well for digital currencies.

What is your 2021 outlook for Bitcoin? Any price target or estimate as to how the asset will perform in the year?2021 will is a special year in the Bitcoin cycle. A number of factors are aligning for Bitcoin right now:

I go into 2021 with great confidence the next 12 months will be no different.

I expect to see Bitcoin reach prices in the region of $100K-200K in 2021 and would be shocked if it doesnt hit at least $50K. Prices as high as $300K plus are definitely viable.

The return potential for Bitcoin in 2021 is incredible.

From there, each person will need to determine the appropriate amount and way to invest in Bitcoin. A time tested and successful approach to reducing risk and getting great returns over the long term is to dollar cost average allocate a percentage of your income each month to automatically buy Bitcoin. This approach reduces the impact of large downdraws and has historically achieved great returns.

What are the key challenges you see for Cryptocurrencies in the next one-two years?There are only two challenges I consider for Bitcoin over the coming years:

Sooner or later governments will realize that Bitcoin is not a gimmick. It is a fundamental challenger to all fiat currencies. I expect we will receive announcements over the coming years of Bitcoin replacing a number of small country currencies. As Bitcoin grows, into the multi-trillion-dollar market capitalization in 2021 and beyond, this perceived threat will grow clearer to larger countries. The only way an individual country can effectively ban Bitcoin here is to outlaw or excessively regulate Bitcoin to the point that it becomes unusable.

Hacking of the Bitcoin blockchain is also broadly a risk. Again this risk is small today.

See the rest here:
Bitcoin prices may skyrocket to $2 lakh this year: Analyst - Economic Times

Bitcoin got the new year off to a scorching start as investors continued to pile on bets that the digital currencys price will keep rising.

The price of bitcoin rose as much as 19% over the weekend, trading as high as $34,452 on Sunday, according to CoinDesk. It finished 2020 at $28,966, more than quadrupling on the year.

Bitcoin has been on an extended rally since early September, part of the everything rally that has fueled gains in stocks, emerging markets and other assets.

In many respects, what has happened in the first few days of 2021 resembled a stock market short squeeze, said AvaTrade analyst Naeem Aslam. He was referring to the cascade of buying that can happen when investors respond to a price jump by buying back stock they have sold in an effort to keep their losses from mounting.

It wasnt just bitcoin that took a wild ride. The price of ether, the second-largest cryptocurrency, rose as much as 35% over the three-day weekend, trading above $1,000 for the first time since early 2018. Ether eased by 1% on Monday, closing at $998.

Continue reading here:
Bitcoin Surges Into 2021, Rose Nearly 20% Over Weekend - The Wall Street Journal

As the year that felt like a decade on speed starts to draw to a welcome close, some of us are starting to try to make sense of the timeline of narratives and events. Most of us (myself included) are failing. And that in itselfis an intriguing narrative, that sheds light on bitcoins rally.

Bear with me while I try to explain.

On the one hand, we have a rapid rise in the bitcoin price, and coalescing institutional support from traditional investors and companies that see potential in crypto assets and markets.

Related: First Mover: As Markets Turn Ugly, Bitcoiners Thank Secular Trend

On the other hand, we have conflicting economic and social trends. We have blind faith in the power of vaccines combined with rejection of the science of virus transmission; monetary policy designed to encourage lending combined with banks that are unwilling to do so; growing interest in the value of emerging markets combined with escalating risk of default; widening inequality combined with greater power of protest; I could go on.

These conflicting forces and the uncertainty swirling around them should encourage us to look closely at prevailing narratives. Yet, those of us watching the growing institutional interest in bitcoin markets have accepted without question the assumption that bitcoins inflation hedge qualities are behind it.

Lets pick that apart.

First, lets look at another pair of conflicting economic trends.

Related: Blockchain Bites: The Fight for Private, Digital Cash

Most economists seem to believe that a resurgence of inflation is unlikely. Depressed consumption and excess supply, the continuing impact of technology and demographic shifts, the low velocity of money and the weak labor market are just some of the factors they point to. These have already led to deflation in some key economic areas.

The bond market, on the other hand, tells us that inflation concerns are real. The five-year breakeven rate, a proxy for inflation expectations calculated by taking the difference between five-year U.S. Treasurys and Treasury Inflation-Protected Securities, is close to its five-year high.

Story continues

Whats more, the yield curve continues to steepen, signaling expectations of higher interest rates in the future as central banks tackle a looming inflation problem. Taking into account the damage rising interest rates would do to debt-laden economies, this is the bond market telling us that they see trouble ahead.

But does that really matter for bitcoin?

Bitcoin is seen as an inflation hedge mainly because of its limited supply, which is not influenced by its price,and because of its relative attractiveness when real yields head to zero or lower.

Yet, when you buy bitcoin, youre not just doing so to hedge inflation. Youre buying bitcoin to hedge all the other negative consequences that usually accompany it.

True, inflation is not always bad. Good inflation, a result of economic growth and low unemployment that helps to close the gap between supply and demand, encourages investment and even more economic growth.

Runaway inflation, however, exacerbates poverty, heightens uncertainty, demolishes trust in institutions and can lead to the breakdown of social order. This is not isolated to post-WWI Germany we see it today in Venezuela, Zimbabwe, Lebanon and Argentina, to name just a few.

Bitcoin is also a hedge for unstable governments that close bank accounts, police states that want to seize private wealth, broken payments rails due to corrupted systems or outside cyber attack threats, paranoid leaders that want to disenfranchise opponents, export-protecting devaluations that trigger more inflation.

These are less likely in developed economies. But lets not forget that tipping points lurk around unexpected corners, and that Venezuela was once one of the wealthiest countries in the world and one of the more stable democracies in Latin America.

Bitcoin is a hedge against inflation, but also against political instability and social disruption, which if inflation comes roaring back is not a ridiculous thing to prepare for.

Bitcoin is also a hedge against a more gentle but just as pernicious debasement of currency through a loss of trust.

Traditionally, inflation moves in tandem with the strength of the local economy. But it can be triggered by currency weakness, which raises the prices of imported goods.

This is usually corrected when the central bank raises interest rates to combat rising inflation, which increases the attractiveness of the currency compared to others.

But in the current environment, an increase in interest rates may have the opposite effect, given the potentially catastrophic impact on debt-ridden economies. The U.S. bond market is telling us that it thinks interest rates will rise. The dollar continues to head lower, however, and could continue to do so even if those rate increases materialize, as faith in the capacity of the U.S. to employ traditional tools to good effect could be shaken.

And, most bitcoin trading is denominated in dollars. Therefore, if the dollar heads lower without a corresponding fall in the value of bitcoin (and since its unrelated to the economy, theres no fundamental reason why it would), the BTC/USD ratio heads up.

Bitcoin is a hedge for not just the macroeconomic ills that we have been trained to watch out for. It can also provide ballast against the unforeseen problems waiting to be triggered.

This highlights another hidden strength of bitcoin as an investment asset.

It is unlike any asset that we have seen before: programmatic supply, decentralized governance, fragmented market infrastructure that runs on technology developed by an unknown entity yet maintained by miners, developers and validators distributed across many geographies.

It doesnt fit into standard economic thinking and for that reason, it is perfect for our times.

In a world where youve gone from orthodox monetary policy to Keynesian economics to MMT in a few months, there is no longer any trust in the traditional recipes.

To paraphrase G. K. Chesterton, when you stop believing in traditional recipes, your mind is more open to new ones.

Bitcoin in portfolios represents more than a new recipe. It represents the need for a new recipe. It represents a safety play against a world in which old ideas are up in the air, and new ones have yet to take root.

It represents more than a hedge against inflation: it also represents an acceptance that politics and economics can get weird, and that untested ideas that are untethered to macroeconomic features and past assumptions are worth considering.

It represents a hedge against crazy, which is hopefully not what awaits us but the risk of not preparing for that possibility is verging on irresponsible, and not even thinking about it is likely to end up being prohibitively expensive.

The outperformance of bitcoin in 2020 has to set up the asset for even more professional investor attention next year, even though we all know that past performance is not an indicator of future performance. Or is it? The momentum trade seems to be the predominant strategy this year, and given the amount of money sloshing around markets looking for a good return, there is no indication that will end soon.

Then again, all bull markets have to end some time, although the underlying fundamentals and investment theses of bitcoin do not get worse with vaccine disappointments and worse-than-expected economic figures unlike with stock and bond markets.

Investors talking:

Scott Minerd, CIO of fund manager Guggenheim Partners, which manages more than $230 billion worth of assets, told Bloomberg TV hosts this week that his firms fundamental analysis shows that bitcoin should be worth $400,000. This conclusion is based on the assets scarcity, and its relative value to gold as a percentage of gross domestic product. He also revealed that Guggenheim had started allocating to bitcoin when it was trading at around $10,000.

U.K.-based fund manager Ruffer Investment Company has invested approximately $740 million in bitcoin, equivalent to around 2.7% of the firms assets under management. According to the company, the investment was primarily a protective move for portfolios to act as a hedge against some of the risks that we see in a fragile monetary system and distorted financial markets. Ruffer is known in investment circles as a conservative manager focused on capital preservation. It had the top-performing active fund in Europe for January-June 2020: the LF Ruffer Gold Fund produced a six-month performance of over 55%. And now its investing in bitcoin. Ruffer has spoken often in the past about its inflation concerns. This investment makes me want to check in on other active managers worried about inflation their ranks are growing.

One River Asset Management, a $1 billion hedge fund (as of April 2020) specializing in volatility plays, has invested $600 million in bitcoin and ether or institutional clients (including Ruffer, which owns a stake in the company) via its subsidiary One River Digital Asset Management. CEO Eric Peters told Bloomberg that One River Digitals crypto holdings will cross $1 billion in early 2021. Brevan Howard Asset Management co-founder Alan Howard is taking an ownership stake in One River Digital and helping to provide the company with back-end trading services.

Christopher Wood, global head of equity strategy at investment firm Jefferies, has trimmed the recommended exposure in his model global portfolio from 50% gold in favor of bitcoin. This is even more notable given that this particular portfolio is designed with U.S. pension funds in mind. Whats more, he has said that he plans to increase exposure to bitcoin should there be a correction.

Jeff Currie, head of commodities research at Goldman Sachs, told Bloomberg that bitcoin was a retail inflation hedge, and a risk-on growth proxy.

Not an endorsement, but an interesting and potentially useful thread prompted by tech investor Andrew Wilkinson, co-founder of Tiny Capital.

In market developments:

U.S.-based crypto asset exchange Coinbase has filed preliminary documents with the U.S. Securities and Exchange Commission (SEC) to go public. The Form S-1 is expected to become effective after the SEC completes its review process, subject to market and other conditions. TAKEAWAY: Here we go This will create by far the largest listed company in the crypto industry, and has been rumored for some time. As well as attracting even more attention to crypto markets, it is likely to kick off a slate of crypto-related listings, especially given the recent price movements and the swelling of institutional interest. What Im most excited about, apart from seeing how the market values a systemic crypto market infrastructure business, is getting a look at their balance sheet and P&L.

Cboe Global Markets will launch a suite of crypto market tools in 2021 in a licensing partnership with execution provider CoinRoutes, including cryptocurrency indexes, historical data and real-time ticks. TAKEAWAY: Cboe operates the largest options exchange in the U.S. Coming from a traditional market infrastructure player, this deal signals support for the nascent asset group, and points to the introduction of new crypto services and products over the coming years. S&P also recently revealed crypto index plans, and other market data providers are likely to join the race to capture crypto data market share.

The Chicago Mercantile Exchange (CME) will launch a futures contract on ether (ETH) in February 2021. TAKEAWAY: This goes a long way towards validating ETH as a potentially institutional-grade investment. The lack of liquid ETH derivatives for institutional investors has dampened hedging opportunities, and the removal of these barriers could encourage more professional investors to at least consider its merits.

Advisory company Evercore has named PayPal as its top payments stock, in part because it believes that the firms cryptocurrency services could be good for customer engagement and transaction margin. TAKEAWAY: This not only encourages investors to consider companies that are launching crypto asset services; it also encourages more companies to offer crypto asset services, because who doesnt want investors looking at them?

Sovryn, a self-billed decentralized platform for trading and lending Bitcoin, has launched on the Bitcoin sidechain RSK, with $2.1 million in funding. TAKEAWAY: Theres a lot of debate about whether Bitcoin could ever be used for smart contracts. This is a reminder that the jury is still out, and technological progress is pretty good at showing that what many think is impossible is not that impossible after all. If the range of applications that can be built on Bitcoin broadens, that could boost its potential value.

SBI Financial Services, the subsidiary of Japanese tech conglomerate SBI Holdings, has acquired U.K.-based cryptocurrency OTC desk B2C2. TAKEAWAY: This is another example of legacy finance leveraging crypto asset services to broaden its client base, and to sell more to existing clients.

Banca Generali, an Italian private bank that focuses on wealth management for high net worth individuals, is leading a $14 million investment round in crypto wallet provider Conio, with an agreement to offer Conios services to the banks clients. TAKEAWAY: Yet another legacy bank gears up to offer crypto asset services to its clients. We will see a lot more of this in 2021.

You have banks building or buying crypto asset services, and you also have crypto firms trying to become banks. Crypto payments firm BitPay has filed to become a national bank in the U.S., headquartered in Georgia. TAKEAWAY: By becoming a national bank, BitPay will be able to operate in all U.S. states, while its non-bank competitors will need to get money transmitter licenses in each state they wish to operate in. This confers an operational advantage, and also a strategic advantage in that clients could prefer the additional scrutiny borne by national trust banks, compared to firms that dont have a national bank license.

Speaking of crypto firms hoping to become banks, crypto asset platform Paxos (which last week filed to become a federally regulated bank) has raised $142 million in a Series C round. TAKEAWAY: Paxos is emerging as a key player in the developing crypto market infrastructure: as well as a crypto exchange itBit, it is building a full-stack infrastructure service that includes custody, tokenized securities, stablecoins and more. It powers PayPals new bitcoin offering, and also counts Credit Suisse, Socit Gnrale and Revolut among its clients. (Paxos founder, Charles Cascarilla, was named one of CoinDesks Most Influential for 2020.) With this amount of funding, it will be interesting to see which of their many services they choose to build out more, or whether they will be adding new market tools to the mix.

Read the rest here:
Crypto Long & Short: Bitcoin Is More Than a Hedge Against Inflation Its a Hedge Against Crazy - Yahoo Finance