Connect with us

Bitcoin

Andrew Yang Wants To Turn NYC Into Hub For Bitcoin

Published

on

Tony Spilotro



Bitcoin could soon take over Wall Street completely, more so than it already has in recent months. According to NYC mayoral candidate Andrew Yang, if elected, he would invest in turning the city as the country’s financial epicenter into a full fledged hub for BTC and other cryptocurrencies. 

Is this the start of major United States cities fully integrating a Bitcoin standard?

Mayoral Candidate Aims To Turn New York City Into Bitcoin Hub

Bitcoin adoption is spreading like wildfire ever since the pandemic struck. Aside from being an all-digital, contactless alternative to cash, its scarcity related benefits are what have become most attractive.

Amidst unprecedented stimulus money “printing,” the hard-capped 21 million BTC supply is proving to be extremely valuable. The idea of a better form of hard money, has finally captured the interest of hedge funds and institutions.

RELATED READING | GRAYSCALE FOUNDER EXPECTS “A TIDAL WAVE OF CAPITAL” TO FLOW INTO CRYPTO

Institutional adoption has pushed the price per BTC to nearly $50,000, rocketing the crypto asset into superstardom. The retail community combined with well-known tech leaders are now pushing politicians to consider paving the way for a Bitcoin-centric future, and interestingly, they’re listening.

Miami is breaking ground as committing to study the use of Bitcoin as a reserve, and means to collect taxes and pay government salaries. But now New York City could follow suit with turning the financial center of the world into a hub for Bitcoin, according to mayoral candidate Andrew Yang.

bitcoin nyc andrew yang

Bitcoin approaching $50,000 and a market cap of $1 trillion has even politicians paying attention | Source: BTCUSD on TradingView.com

 

Yang Leads Polls Making Crypto-Centric NYC A High Possibility

The latest polls show that Yang has earned a commanding lead, which means his vision for a Bitcoin-centric New York City and Wall Street could come to fruition. Yang was a popular candidate when he was running for the US Presidency, due to his commitment to emerging technologies like crypto, but ultimately the democratic frontrunner was Biden.

Yang refocused his political efforts to New York City, which has been hit especially hard by the pandemic.

RELATED READING | GLOBAL MACRO INVESTOR: THE STRONG PART OF BITCOIN UPMOVE HASN’T EVEN STARTED YET

New York is also home to Wall Street and is essentially the financial capital of the US and the world. Having Bitcoin soon take over Wall Street is a sign of a changing of the guard, and that cryptocurrencies are the future of money markets. At the center of it all, could soon be Bitcoin, and if everyone in New York City and Wall Street was encouraged to use crypto, the adoption we’re seeing now is barely scratching the surface of what’s possible.

Featured image from Deposit Photos, Charts from TradingView.com





Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Bitcoin

This bullish Bitcoin options strategy lets traders speculate on BTC price with less risk

Published

on

By

Cointelegraph By Marcel Pechman

Historical data shows that it is nearly impossible to consistently predict Bitcoin’s price action and many traders that attempt this end up losing money. Now that Bitcoin trades near $50,000, the ultimate goal for most traders is to hold on to their current holdings and incrementally add to them in a way that is not terribly risky. 

Options strategies provide excellent opportunities for traders who have a fixed-range target for an asset. For example, using leveraged futures contracts might be a solution for a scenario where one expects a price increase of up to 28% over the next month. Of course, using a tight stop loss lessens the viability of the trade.

On the other hand, using multiple call (buy) options can create a strategy that allows gains that are four times higher than the potential loss. These can be used in both bullish and bearish circumstances, depending on the investors’ expectations.

The long butterfly strategy allows a trader to profit from the upside while limiting losses. It’s important to remember that options have a set expiry date; therefore, the price increase must happen during the defined period.

The Bitcoin (BTC) calendar options below are for the March 26 expiry, but this strategy can also be used on Ether (ETH) options or a different time frame. Although the costs will vary, its general efficiency should not be affected.

Profit / Loss estimate. Source: Deribit Position Builder

The suggested bullish strategy consists of buying 1 BTC worth $48,000 call options while simultaneously selling double that amount of $56,000 calls. To finalize the trade, one should buy 1 BTC worth of $64,000 call options.

While this call option gives the buyer the right to acquire an asset, the contract seller gets a (potential) negative exposure.

As the estimate above shows, if BTC is trading for $48,700, any outcome between $49,380 (up 1.5%) and $62,630 (up 28.6%) yields a net gain. For example, a 10% price increase to $53,570 results in a $4,000 net gain. Meanwhile, this strategy’s maximum loss is $1,350 if BTC trades below $48,000 or above $64,000 on March 26.

This allure of this butterfly strategy is the trader can secure a $4,050 gain, which is 3x larger than the maximum loss, if BTC trades from $53,550 to $58,460 expiry.

Overall it yields a much better risk-reward from leveraged futures trading considering the limited downside.

The multiple options strategy trade provides a better risk-reward for bullish traders seeking exposure to BTC’s price increase and the only upfront fee required is the $1,350 which reflects the maximum loss if the price is below $48,000 or above $64,000 at the expiry date.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.