Tag: investment

"Buckle Up" For Bitcoin's Next Bull Run, Cameron Winklevoss Says

Gemini CEO and co-founder Cameron Winklevoss believes that the next Bitcoin bull run coming up will be “dramatically different,” due to the innovative financial resources that crypto investors have access to nowadays and to the current economic infrastructure.   

Winklevoss Anticipates Next BTC Bull Run

Compared to previous bull markets, the billionaire crypto philanthropist said that with the rise of infrastructure, the influx of capital, and better projects at hand, Bitcoin (BTC) is set for its next bull run:  

“The next Bitcoin bull run will be dramatically different. Today, there’s exponentially more capital, human capital, infrastructure, and high-quality projects than in 2017. Not to mention the very real specter of inflation that all fiat regimes face going forward. Buckle up!” 

The Winklevoss brothers are on the same page regarding Bitcoin. Last week, Cameron’s twin brother and co-founder of Gemini, Tyler Winklevoss, commented on the US Federal Reserve’s economic stimulus strategy having a positive impact on Bitcoin and its pricing on the crypto market. Winklevoss stated that the Federal Reserve had set the stage for BTC’s next bull run. He referred to the fact that the US government is actively printing money in bulk in order to deliver an economic stimulus package to its citizens, to provide pandemic relief.  

Americans Use First-Time Stimulus Check for BTC

What seems to be interesting however, is that according to a report by Coinbase CEO Brian Armstrong, instead of using their funds towards goods and services, many Americans directd their first-time stimulus checks of $1,200 towards investing in BTC funds. 

So despite coronavirus and the economic downfall happening worldwide, things appear to be looking up for the cryptocurrency market. Data points hint that crypto investors’ capital have been on the rise. Furthermore, with the increase in regulatory policies and the clarity of them, the infrastructure of the crypto market has been improving considerably.  

Why Was More Money Involved In the Last BTC Rally?

Researchers looked at two key points to explain why more money has been involved in the latest Bitcoin rally, where the dominant cryptocurrency underwent a huge surge. 

First of all, Tether(USDT), the market capitalization of Tether, the biggest stablecoin on the cryptocurrency market, has surpassed $10 billion in assets. Secondly, Grayscale Investments, the big-time cryptocurrency investment firm, has recently achieved a new high in the Assets Under Management (AUM) department. 

Stablecoin Tether On Top of Its Game

Tether has been up to now the biggest stablecoin on the crypto market. Investors worldwide have therefore relied a lot on the stablecoin to trade crypto. Countries with poor regulatory policies revolving around cryptocurrency regulation have favored Tether, as it is a stablecoin. With the rise in market cap of Tether to $10 billion, this may mean that cryptocurrency exchanges might be on the brink of a huge money influx, with more funds being used on them. 

As to further explain why more money has been involved in the latest BTC bull run, researchers turn towards Grayscale’s crypto-asset trusts as an explanation. The crypto asset trust funds of the large-scale investment firm are arguably the most utilized investment vehicles employed by businesses and networks looking to gain exposure to cryptocurrencies.  

Grayscale Investments Reaches $5.1 Billion

Recently, the assets under management by Grayscale Investments have achieved a new record, reaching an all-time high of $5.1 billion.  

On the subject matter, CEO of Grayscale Investments, Barry Silbert, said that Bitcoin has too much support from US government officials to ever be dismissed and shut down. The CEO thinks that blockchain firms’ success with regulatory policies put forth by officials can be attributed to pro-blockchain groups, such as Blockchain Association. The latter is a group who has advocated for digital firms by appealing to the US Securities and Exchange Commission in the past.

Silbert thinks that the blockchain industry has come a long way, with more and more investors looking at Bitcoin as an interesting hedge. In a Twitter post, he spoke about his own personal experience with his cryptocurrency investment firm. Silbert said that in 2013, when his company launched a Bitcoin investment fund, everyone thought they were crazy. “Well, look at us now…,” he added. 

This Week’s Bitcoin Bull Run

Overall, projects and companies in the Bitcoin and crypto industry seem to be increasing in quality. With the latest Bitcoin rally that happened earlier this week, there seems to be an indication that the cryptocurrency industry is on the rise.  Bitcoin surged past the $10,000 mark on Monday, creating a buzz in the financial industry. 

CEO of financial consultancy firm deVere Group, Nigel Green, was even bold enough to state that the cryptocurrency is set to potentially “knock gold from its long-held position” of being a safe-haven asset. 

Image source: Shutterstock

South Korea to Pump In a Whopping $12.8 Million into Blockchain Industry

The adoption of blockchain technology is set to reach unprecedented levels in major countries, as recently announced by China’s President Xi Jinping. South Korea intends to follow suit based on the revelation made by the Ministry of Science and ICT that USD 12.8 million will be channeled to blockchain projects in 2020.

This investment strategy seeks to enable South Korea to stamp its authority as a notable blockchain hub across the globe. The ministry has highlighted that the amount will be driven to both private and public sector blockchain projects. Additionally, blockchain experts will be nourished and nurtured through specialized courses nationwide. 

Part of the funding will be availed by the Korea Internet and Security Agency (KISA). It is stipulated that at least USD 8.6 million will be set aside to develop and establish several blockchain projects, 

On the other hand, the rest will be given to the government-run National IT Industry Promotion Agency (NIPA) to launch a wide range of blockchain-associated courses. 

Both KISA and NIPA will be mandated with undertaking intensive research on more blockchain regulations as many South Korean investors, and companies have aired their concerns about the government’s stance on the overall blockchain policy. 

As reported by Blockchain.News on Oct 18, Vietnam is witnessing a sea of activities as Korean blockchain firms seek to close business deals and get new sources of revenue. The Southeast Asian nation has emerged to be a reckoning force in the worldwide blockchain spectrum.

Image via Shutterstock

Grayscale Announces the Launch of its Diversified Crypto Investment System for Trading

Grayscale Investments, the American-based crypto management fund, announced a plan to launch its diversified crypto investment system for trading. This investment product is known as Grayscale Digital Large Cap Fund (GDLCF), and trading will begin in no distant time with access to US securities.

Being Grayscale’s fourth investment product made open to the public, the following shares will be available to investors: Grayscale Bitcoin Trust (OTCQX: GBTC), Grayscale Ethereum Classic Trust (OTCQX: ETCG), and Grayscale Ethereum Trust (OTCQX: ETHE).

Matthew Beck, Grayscale’s Director, Investments, and Research, commented that cryptocurrencies are a new and significant source of profits to investors and which also allows for diversification. He then noted that this new initiative would help investors who wished to have new ways of gaining profits.

“Digital assets represent a new and important alternative source of return for investors. Their unique market opportunities, use cases, and risk exposures can also enhance diversification. A well-constructed, diversified investment product like Grayscale Digital Large Cap Fund is an important tool for investors seeking to build more balanced portfolios with higher risk-adjusted returns,” Beck said.

Through their registered investment accounts, investors have the opportunity to buy and sell without restrictions tradable Grayscale Digital Large Cap Fund shares. This opportunity parallels their beforehand ability to buy and sell unregistered securities; the only difference is that they have to look for the symbol: GDLCF.

Image via Shutterstock

PwC Singapore's Venture Hub, on the Investment Sentiment of Blockchain Startups

November has been a busy month for FinTech and the blockchain industry in Singapore. The Singapore FinTech Festival (SFF) and the Singapore Week of Innovation and TeCHnology (SWITCH) held 11 – 15 Nov gathered over 60,000 participants from 140 countries to foster the development of FinTech in Singapore. The Monetary Authority of Singapore (MAS) also announced key initiatives such as the joint development of FinTech Research Platform connecting investors and FinTech startups.

We arranged an interview with Lim Shu Ning, Director in PwC Singapore’s Venture Hub specializing in Blockchain during the SFF, which Shu Ning shared with us the investment sentiment of Singaporean blockchain startups and the state of enterprise blockchain adoption in Singapore.

Can you give us an overview of the Blockchain team in PwC Venture Hub? What is the scope of services that the team provides? 

PwC Singapore’s Venture Hub adopts a one-stop shop approach to providing solutions, services and collaborating with motivated entrepreneurs, venture capitalists, incubators and accelerators within the venture ecosystem to help them expand into their key markets.

Our team focuses on fast-growing Tech startups including blockchain companies, using our expertise and experience to help founders grow their businesses. We work closely with the companies on areas such as fundraising, strategy, branding and M&A, IPO/ICO advisory to audit & regulatory compliance, legal & tax services and governance advisory.

What are the key pain points faced by blockchain startups in Singapore? What are some of the best advice you can give to these startups? 

Blockchain is clearly a large part of what the Singapore Government sees to be an important and innovation-filled future for Singapore’s financial sector. Despite being a potential game-changer, there are also clear emerging doubts.

One particular concern is cost and efficiency. Given that the amount of resources and money spent, some perceive that substantial progress has not yet been achieved. Of the various use cases we see in the market, a large number may be still at the ideation stage, some might be in the developmental stage but not many are widely adopted or see the widespread application.

This leads to another pain-point which is to identify the right ecosystem partners. The value of blockchain is maximized when partners in the ecosystems work together and operating on a common chain. Currently, we see different organizations in the same industry sector developing many different chains and this is detrimental to the growth of blockchain. That being said, we do see potential interoperability across different blockchain solutions which help to harness efficiency for the ecosystems.

Blockchain companies should focus on creating solutions to solve real business problems through the trust that the blockchain brings, to ensure their products are viable and scalable. Blockchain technology is not the solution to everything, the right application to the right problem statement is the key. 

Are there challenges to find the right talent for the fintech/ blockchain industry? What initiatives have been done to tackle talent shortages? 

As with any new technology, blockchain is relatively new and will continue to evolve. At the moment, we note that there is indeed a limited supply of people with developed skills in this space. On the other hand, the demand for qualified talent is increasing and costly. And this is particularly challenging here due to Singapore’s relatively small population size.

Singapore has the potential to become an Asian Blockchain Hub with its blockchain-friendly regulations and government support in nurturing blockchain development.  With the government’s support, we believe that Singapore will continue to attract and groom the right talent in the near future.

How would you describe the enterprise blockchain adoption in Singapore and what are the interesting use cases in blockchain there? 

In PwC’s Global Blockchain Survey 2018, we noted that 46% of enterprise blockchain adoption resides in the Financial Services industry, 12% in the Industrial products and manufacturing, 12% in Energy and utilities, 11% in Healthcare. Other segments include government, retail and consumer sectors. This trend is quite in line with what we observe in Singapore as well. 

Some of the interesting blockchain use cases we see include (just to name a few):

– Digital identity: Blockchain to create an auditable source of personal identity information shared and verified across multiple organizations. This also empowers users (like us) to have control over our digital identity and personal information.

– Supply Chain visibility: Blockchain eases the existing pain points of buyers, sellers and various parties across the supply chain. Some of the track & trace blockchain solutions we have seen allow traditional businesses to digitize their traditional products include food products into traceable digital assets to tackle some of the key issues in global trade including food safety and wastage.

– Record keeping: Blockchain provides a method for collectively recording and notarizing any type of data. This could include education records and certificates, healthcare records and more.

– Provenance: Blockchain offers an immutable and irreversible source of information that tracks true ownership as well as the authenticity of a product. We see more relevance for this application in the retail luxury products sector and high-value collectibles.

How would you describe the market sentiment on investing in Singaporean blockchain startups in terms of M&A deals and fundraising? 

Market sentiment into investing in Singaporean blockchain startups is picking up. Previously investment was mainly in the form of token sales which are more speculative in nature. However as the market matures, sophisticated investors, as well as corporates, entered the fray seeing the potential of adding blockchain technology to traditional business or seeing the potential blockchain technology brought to different industries. Investment is now into the equity of the startup itself rather via a token sale. 

Through our partnership with Tribe accelerator, we have seen first hand the kind of solutions that corporates are on the look-out for and that they have invested in. While most investments in startups are focused on taking a stake, we may see a growing number of M&A buyouts as these startups grow and as their solutions become more concrete.

We also note that investors are more keen to invest in blockchain startups with specific industry-focused solutions and where they are combining with other technologies such as IoT and AI; rather than blockchain developer companies.

PWC Singapore's Venture Hub: A Breeding Ground for Singaporean Unicorns

Following Part 1 of the interview, Lim Shu Ning, Director in PwC Singapore’s Venture Hub specializing in Blockchain analyzed the key challenges for startups to become a “Unicorn” in Singapore and shared with us how PwC Singapore’s Venture Hub partners with local regulators and accelerators to foster FinTech innovation in Singapore.

The World of Unicorns 

What do you consider as the biggest challenges to overcome to become the next “unicorn” in Singapore? 

In the last few years, we do see an unprecedented rise in the number of start-ups globally and also in Asia. Singapore is at the centre of all this action thanks to its location and strong support from the  government, with PwC’s APEC CEO survey 2018 finding city-state emerging as the country with the right conditions to produce the next unicorn. However, with more opportunities opening up, the level of competition in Singapore and the region is growing too.

Some notable challenges include :

1) Lack of talent with the right skills – we note that companies are struggling to find the right people with the right talent and the right skillset. And this is particularly evident here in Singapore due to the country’s relatively smaller population. 

2) Costs of expansion strategy – one of the key success factors for “Unicorns” is scalability and ability to find the right markets to expand into. Expansion into new markets could be costly and would require making choices in selecting the right strategic connections/partners as well as in-depth knowledge of these markets. 

3) Ability to constantly innovate – becoming a unicorn does not happen overnight. After several years, if a company is unable to keep up with changes in technology, regulations and to continuously be on top of their competition it is unlikely that they will be the next unicorn. 

Compared to other jurisdictions, what do you think is lacking in Singapore compared to countries such as China and the US where most of the unicorns exist? 

We believe that Singapore has strong Unicorn potential outside of China and the US, ahead of Hong Kong and Japan due to its macroeconomic strength, strong public sector support, political stability and market growth potential. 

Compared to China and the US, one of the challenges we note is that due to its small size, domestic demand in Singapore is vastly lower than that in China and the U.S.. The ability to tap into huge domestic markets will allow the company to scale up quickly as compared to scaling up across multiple markets, which will take a longer time. 

In general, Asian/Singaporean investors are more conservative than their western counterparts and look for companies with a track record for generating revenue. There appears to be a lack of fund flows to companies with ideas but no clear track record, even if the solutions are exceptionally innovative and potentially ground-breaking, due to the risk appetite of investors in the region.

In addition, Singapore CEOs are seen to be actively prioritizing future investments and business improvements over the next two years to raise their game in the digital space. Business leaders also face challenges hiring due to the limited talent pool.

Where does PwC Singapore’s Venture Hub stand in terms of partnerships with local regulators in Singapore? 

We at PwC Singapore’s Venture Hub regularly work with ecosystem partnerships to broaden our network and champion necessary change in the industry. Some of the key partners we work with are the regulators such as the MAS (Monetary Authority of Singapore), IMDA (Infocomm Media Development Authority), SGX (Singapore Exchange), Enterprise Singapore. We work with them on several levels including co-organising of educational events, providing general advice for startups, and serving as mentors for companies. 

We do see increased efforts in recent years by the local authorities and government agencies to increase support for innovation and talent development to foster the right environment and ecosystem for businesses. PwC Singapore’s Venture Hub will continue to support the regulators and provide our feedback/opinions in consultation papers or new regulations.

In addition to the regulators, we also partner a number of accelerators to support this fast-growing industry.

According to the APEC CEO survey in 2018 by PwC, artificial intelligence seems to an untapped industry. What are the reasons for the lack of innovation in this area? What has PwC been doing to boost innovation? 

On the contrary, we do not think there is a lack of innovation in artificial intelligence. In fact, we observe a number of entrepreneurs who are building startups focusing on deep tech including AI, that tackle globally relevant challenges.

However, what we observe is that actual use cases of artificial intelligence may be currently muted due to various regulatory and ethical considerations. While there aren’t necessarily “correct” answers at the moment, we believe that regulations and laws will continue to evolve in order to keep up with new issues that AI brings about.  

Apart from PwC Singapore’s commitment of close to S$10 million over the next two years to develop the digital skills of our over 3,500 employees; PwC has assembled new teams including the Digital Innovation Office and Experience Centre both based in Singapore. These teams aim to solve problems for our clients using technology and innovation as well as to help traditional companies with their digital implementation to improve their current processes.

What are some goals that PwC Venture Hub Singapore aims to reach in the next 5 years in terms of producing more unicorns and supporting local startups?

PwC Singapore’s Venture Hub aims to enhance the ecosystem by working with entrepreneurs and investors, creating transformational value for our clients.

We will continue to support the growth and enhance the startup ecosystem. We can expect that over the next 5 years, we will embed ourselves more deeply into the ecosystem, connecting investors, entrepreneurs, incubators and accelerators, locally and globally with the wider PwC network. 

Crypto Investors Unable to Access Their Money: 8 Things to Consider Before Investing in Cryptocurrency

The New York Times recently announced that the US and Canada crypto investors are unable to access their money amounting to $250 million. This drama started after the founder of Quadriga CX cryptocurrency exchange –Gerald W. Cotten – was reported dead.

The shocking revelation leftinvestors finding themselves unable to retrieve money in their accounts. The company’s operations were encrypted, and Gerald Cotten was the only person who knew the password required to move the funds. 

The Cause of Cotten’s Death 

In January this year, the wife of the crypto exchange founder testified that her husband unintentionally took at least $137 million of customer assets to the grave when he died without giving anybody the password to his encrypted laptop. 

 In February, Cotten’s wife submitted an affidavit claiming that her husband suddenly died while having a vacation in India, at the age of 30. She alleged the cause of Cotten’s death was complications associated with Crohn’s disease. 

Thus, Quadriga CX cryptocurrency exchange lost control of over $137 million of customer assets because the company’s operations were stored on a laptop, which – according to the window’s affidavit – only Cotten knew the password. 

Basic Things to Put into Consideration 

So, here are 8 things crypto investors should consider before investing in cryptocurrency. 

1. Never Invest Above Your Means 

It’s advisable that crypto investors only to invest money, which they are willing to lose. It must be money you don’t need in your day-to-day life. If you lose that money, then your life should not be affected. Furthermore, it would help if you don’t take a consumer loan to invest. 

2. Ensure You Know What You Are Buying 

The Russian proverb says that “trust but verify.” 

Therefore, you should not blindly trust anyone. You don’t need to be an expert in cryptocurrency to make the necessary evaluations. But you just need to take time to help you understand what you are investing in and how comfortable you are making such an investment after you have understood the information at hand. 

There are over 2000 cryptocurrencies, which are actively being traded every day.  So, you need to take time and learn about cryptocurrencies existing. 

3. Find A Trustworthy Crypto Exchange 

If you want to begin investing in cryptocurrency, then crypto exchanges will be essential. But only invest in reputable cryptocurrency exchanges that are legally accredited by relevant authorities. 

4. Diversify Your Investments  

If you have money to invest, then you must be aware of the saying that “you should not put all your eggs in one basket.” If you put all your eggs in one basket and it falls, then you lose everything. So, if you have 10 eggs, then divide them evenly into 5 baskets. 

It is prudent to apply the same reasoning approach to your investments. You should divide them, such as some of your investments go in real estate, others channeled to actions, and part in the cryptocurrencies. 

5. How to Buy Cryptocurrencies 

It is appropriate to begin investing in very popular cryptocurrencies like Bitcoin, Ethereum, or Monero and to diversify into other few altcoins. Smaller coins normally carry more risk of failure and are more volatile, and it’s hence advisable to avoid them. 

6. Secure Your Cryptocurrency 

The need to secure your cryptocurrencies should be the main priority for a long-term investor.   

7. Watch Out for Scams 

You need to be vigilant about scams and avoid them as much as possible.  

8. Find Trusted People You Can Follow 

Don’t walk alone. You need to find reliable people who can help you with your investments. The environment is filled with scammers or individuals who only want to manipulate you for their advantage. So, you should be vigilant and choose people carefully. 

Image via Shutterstock

With 245 Investments and Financing Deals in Blockchain, Will China Carry on Its Expenditure in the Future?

According to a study from Xinhua, a Chinese government-run financial media, and Rhino Data, revealed that the total amount spent in investment deals pertaining to blockchain is responsible for 24 billion yuan ($3.6 billion). On Jan. 15, an official figure has been released by Xinhua, showing that the figures mentioned earlier have declined by 40.8%, within one year. 

Nonetheless, the value and number of deals have substantially risen since 2018 as per the report. The yearly analysis shows that 2018 remains the most advantageous year for Chinese blockchain investment spending to date, as more than 600 deals took place throughout the year. Whereas in contrast, 2017 only witnessed 168 deals. Included in the Xinhua study were disclosures such as Series A funding rounds accounting for 43.3% of early-stage investments in 2019. In addition to this, 292 institutions supported those investments in Beijing, Shenzhen, and Hangzhou.

The Chinese president’s encouragement of blockchain has augmented its adoption. In the latter half of 2019, Xinhua referenced an American study forecasting that China’s overall expenditure of blockchain technology would increase by $2 billion by 2023.  

Image via Shutterstock 

Billionaire Investor Tim Draper: Why Millennials Should Consider Investing in Bitcoin

In an interview with FOXBusiness, the well-known US venture investor, Tim Draper has given invaluable advice for millennials. He suggested that if millennials really want to have a wealthy and successful retirement life, then they need to invest in Bitcoin.

Draper said, “If you are a millennial, then Bitcoin is the best place to invest your money.”  He believes that Bitcoin is the key for young people who want to ensure that they have sufficient money for retirement.

Why Bitcoin is the right place for millennials to save for their future

According to the billionaire venture capitalist, millennials are standing at a point in history where they have the entire future of the world financial systems ahead of them. But the most significant challenge is that millennials have inherited the banking systems from the older generation, which no longer works. Draper criticized the banking systems of putting young people in thousands of dollars of debt.

He reminded millennials that what may have worked for their fathers or their grandfathers will not work for them. He mentioned that putting money away, penny by penny to save for retirement, is no longer working for young people. Millennials are born into a world already buried in huge debts, he said.

Today’s salaries don’t allow millennials to be able to pay off the debt; Draper believes that young people have become renters instead of buyers because they don’t have any choice. Draper added, “Begin building your empire in the new model, which does not require that you have to pay 2.5%-4% every time you swipe your credit card to some bank or another. And does not require all the heavy regulations we have, which are tied to the dollar. If you really want it to work for you, then go to Bitcoin or cryptocurrency.”

Is Bitcoin a safe investment choice?

However, not everyone agrees with Draper that young people should invest in Bitcoin. Since the launch of Bitcoin in 2009, the entire crypto industry has been adversely affected by constant skepticism. In late 2018, Nouriel Roubini, American economist, talked about cryptocurrencies referring to them as “the mother of all scams,” therefore leaving many people wondering if there’s any legitimacy behind Bitcoin.

Furthermore, cryptocurrencies are also known to be extremely volatile. Draper concluded the interview by showing millennials how the future is going to look like. He stated that the future is not going to be tribal anymore nor tied to a geographical border, but is going to be open and global. Draper recognized Bitcoin as the only currency that is global, decentralized, and borderless. He is convinced that the easiest way to participate in the global economic system is to be able to move freely and move goods and capital freely throughout the globe.

Image via Blockchain Echo

PayPal Co-Founder Peter Thiel Injects $30 Million into Crypto Firm BlockFi to Improve Cash Flow and Expand Product Lines

Venture capitalist and PayPal co-founder Peter Thiel is backing New York-based BlockFi in a new funding round of $30 million.

The series B offering was led by Valar Ventures, which is a venture capital company backed by PayPal co-founder Peter Theil. Other investors in the offering round included Winklevoss Capital, Avon Ventures, Morgan Creek Digital, CMT Digital, PJC, and Akuna Capital. New investors included Purple Arch Ventures, Arrington XRP Capital, Kenetic Capital, HashKey Capital, and Castle Island Ventures.   

BlockFi CEO Zac Prince said, “We decided to raise the Series B offering to expand our balance sheet and give ourselves the capacity to invest in things we want to do this year.”

Product diversification

BlockFi plans to use the $30 million in new funding to expand its staff team and develop new products.

Prince revealed that having HashKey as a Hong Kong-based investor will assist BlockFi in expanding into Singapore later this year. While BlockFi has been serving consumers in the region, this would be its initial physical presence there. Prince stated that BlockFi aims to attract lots of institutional customers in the Asia Pacific region, given that the number of asset managers, mining companies, and exchange and market maker exist there. The company also intends to attract more retail customers in the region as it translates its products and site into local Asian languages.

Prince stated that the firm intends to diversify its products further beyond the crypto lending sector. He mentioned, “We’ll be more and more be recognized as a diversified financial services entity and less and less associated with the crypto lending category.”

For instance, BlockFi aims to issue reward cards and credit cards that make it easier for consumers to receive crypto rewards or spend cryptocurrency when making purchases.

BlockFi intends to introduce a mobile app and the capacity to withdraw and deposit fiat wire transfers in the first quarter of this year. The company wants to provide an automated clearing house (ACH) payments in the second quarter of this year.

The company reports having over $650 million as crypto assets on its platform, a 160% rise from the $250 million in assets it reported in 2019 August, with a zero percent loan loss rate. In January 2020, the firm announced a slight decrease in yield for customers lending Ether and Bitcoin, caused by a more bullish crypto market.

Since last year, BlockFi offers crypto-backed loans, trading products, and interest accounts. The firm has recently begun to make a push into crypto trading, thus allowing users to swap between different kinds of crypto assets. The company is best known for its crypto lending services – the firm lets users leverage their crypto as collateral for a fiat currency loan or deposit their cryptocurrency in “crypto saving accounts” products that let users earn interests on their Ethereum, Bitcoin, and other cryptocurrencies. But critics claim that such offerings carry huge risks with no or little regulatory conditions on the crypto industry. 

However, the company is seeing significant growth. Prince mentioned that the firm’s revenue increased by 20-fold since January last year.

Image via New York Magazine

Bitcoin Price Could Reach $350,000 by 2044 Depending on Millennials’ Investment Game Plan

According to leading US-based crypto exchange, Kraken Exchange, Bitcoin price could shoot through the roof to $350,000 by 2044 if millennials were to invest more than 5% of their inherited wealth into this digital asset. Millennials represent a generation of persons born between 1981 and 1996 and are depicted by characteristics, such as tech-savvy, risk-takers, achievement-oriented, ambitious, and confident. 

Keeping fingers closed

According to the tweet, a Bitcoin price prediction of $350,000 could be attained by 2044 if millennials invested approximately $971 billion into Bitcoin, assuming a 2% inheritance tax and 5% investment allocation. 

It is estimated that in the US alone, $70 trillion will be transferred from baby boomers, persons born between 1946 and 1964, to Bitcoin-friendly generations like millennials in the coming decades. Notably, 70% of this amount is expected to be transferred in the next ten years. 

Moreover, it is speculated that these estimates are noteworthy as the younger generations have a higher probability of purchasing Bitcoin. 

According to a 2019 survey, 42% of participants aged between 18 and 34 years acknowledged that it was likely for them to buy Bitcoin in the next five years compared to only 8% of respondents aged above 65 years. 

Additionally, an Edelman’s study revealed that 17.2% of millennials already own crypto, and this number is higher for the wealthy ones because 25% of them possess cryptocurrencies, whereas 31% have shown interest.

Millennials prefer tech products

Kraken Exchange also noted that millennials were more likely to invest some money into Bitcoin as this generation favored crowd-sourced information, tech products, transparency, and mobility. Moreover, they had distrust in banks.

It is also speculated that the projections presented could be bigger as the figures were only based on the United States. 

Earlier this year, billionaire investor Tim Draper urged millennials to consider Bitcoin investments. He was of the idea that Bitcoin would be a gamechanger for young people who wanted to ensure that they had sufficient money for retirement.

Image via Shutterstock

Exit mobile version