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Fidelity: Bitcoin to Decouple from Other Investment Assets with Its Market Cap Skyrocketing

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The report by Fidelity depicts that Bitcoin has major fundamentals that put it further from health and economic adverse effects.

Fidelity Digital Assets, a firm focused on researching institutional asset investment, has released a report on the role of Bitcoin as an uncorrelated alternative investment that may provide portfolio optimization benefits.

Fidelity Report on Bitcoin

According to the report, which is the second report in its Bitcoin Investment Thesis series by @riabhutoria, there is a huge potential in the crypto industry especially with Bitcoin for institutional investors. The report by Fidelity noted that Bitcoin has managed to decouple from other investment assets like gold, stocks and other precious metals.

“Bitcoin’s correlation to other assets from January 2015 to September 2020 (displayed in the table below) is an average of 0.11, indicating there is almost no relationship between the returns of bitcoin and other assets,” the report indicated.

Bitcoin has mostly gained institutional investors confidence during the height of the pandemic when the stock market and most global economies came to their knees. Bitcoin together with other cryptocurrencies on the other hand were able to stabilize despite the increased volatility and have managed to climb significantly year to date.

The report by Fidelity depicts that Bitcoin has major fundamentals that put it further from health and economic adverse effects. “Bitcoin has distinct underlying fundamentals that are not affected by the health and economic situation created by COVID-19,” the report stated.

The report also indicated that Bitcoin has gained favor among investors as its success is not predicted on a single purpose. Whereby, the asset can be used as a store of value and a means of exchange.

On the Flipside

Indeed, Bitcoin and other digital assets whose inflation rate is known and fixed are set to largely benefit from the increased global monetary stimulus meant to kickstart the global economy from the coronavirus pandemic.

As governments print more money to solve the economic hardships, Bitcoin and other cryptocurrencies remain under controlled measures. Hereby, Bitcoin’s value is poised to skyrocket in the near future as more institutional investors flock into the industry.

According to metrics provided by CoinGecko, Bitcoin was trading around $11,404.02, having added approximately 37.6 in the past one year. Additionally, the asset was up 10.4%, 5.2% and 7.5% in the past 30 days, two weeks and seven days respectively through Tuesday.

Notably, Bitcoin had a market capitalization of around $211,166,894,135 with its daily trading volume at $19,333,804,475. Having survived a significant portion of the pandemic without failure, institutional investors feel confident in raising their portfolio stake in Bitcoin.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
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Bank of Spain to Weigh Digital Currency Design Proposals, ‘Implications’ Through 2021

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The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.



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Strong ODL and XRP Growth, 2020 ‘Was a Success’

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Ripple launched On-Demand Liquidity using XRP in 2018. Since then, the firm now has over 24 clients including Azimo and MoneyGram.

Ripple CEO Brad Garlinghouse insisted that the company is committed to the XRP token as the “key behind RippleNet”. He was speaking in the opening keynote at the 2020 Swell conference. Brad confirmed that in the 3 years that RippleNet has been live, more than two million transactions have been completed with a nominal value of at least $7 billion. Ripple ODL and XRP were utilized in almost 20% of all these transactions.

They represented a nominal value of almost $2 billion. According to Garlinghouse, the two are essential to Ripple’s global expansion and longevity. He commented:

“It’s also clear to me that XRP is the key behind RippleNet. Its speed, its scalability, and its low cost per transaction make it perfect for instant settlement and exchange of value. It was built for payments. It has real utility; that’s why it works.”

Ripple launched On-Demand Liquidity using XRP in 2018. Since then, the firm now has over 24 clients including Azimo, Flash FX, SendFriend, and MoneyGram. These are the high profile clients that are using On-Demand Liquidity in production. Interestingly, Ripple has great pulling power in Asia.

Target Regions for Ripple ODL

As Garlinghouse said, the majority of the RippleNet volume comes from the Asia Pacific region, both receiving and sending. He also highlighted that Ripple’s clients are increasingly attracted to the emerging markets including Africa, Latin America, and the Asia-Pacific region.

Generally, these regions have been ‘largely abandoned’ by the traditional banking systems in the past ten years. Azimo is a highlight in the terms of on-demand liquidity that Garlinghouse focused on. He commented on the ODL partner and reviewed how 2020 has been.

The Ripple CEO said that Azimo has been saving 30% to 50% when arranging various currency transfers between clients in Europe and the UK and those in the Philippines using On-Demand Liquidity. Thus, 2020 has been a fruitful year for Ripple ODL and there is rapid growth witnessed in the second half of the year so far.

Line of Credit Introduced

The interest from clients has not dwindled and Ripple is excited that even during these quarantine times customers still see value from that. Garlinghouse commented on the Line of Credit (LOC) product unveiled several days ago. He said that companies will benefit greatly from it helping them adapt Ripple On-Demand Liquidity (ODL) which will enable their business to thrive.

Ripple has now taken a bold step into the financial services world with LOC striving to help in the adoption of XRP. LOC helps the hyper-scale firms since they do not need to engage in separate credit agreements in various countries in different parts of the world. However, they can concentrate on investing in their business and enable repayment at a later date.

The unveiling of Line of Credit represents a major milestone in the evolution of RippleNet. Ripple is therefore doubling down on XRP and providing financial services powered by the network. It means that cross-border payments remain the core of their business.

Ripple Is Growing

Currently, Ripple has more than 500 employees. Adding that onto a recent restructuring, the company appears to be better equipped than ever to face the future as it comes. Garlinghous is confident that the company has the best team to take it forward. Also with the new streamline business units that include RippleX andRippleNet, the company is gradually evolving but its core DNA remains the same.

Ripple promises to be the builder and not the disruptor. Its success is notable in the growing number of employees especially during the quarantine period where they added 50 people to their payroll.

LOC and the Bank of America Rumor

This year’s Ripple Swell conference was held in private, but some interesting news and comments have leaked. Also, Ripple shared Brad Garlinghouse’s opening remarks at the conference. According to the CEO, the financial sector has not experienced innovations at such high levels in decades. PSPs (Payment Service Providers) and digital banks are putting a lot of pressure on the current system.

Also, digital wallets are seeing a ‘meteoric surge’ and Ripple is at the center of it all with its Internet of Values vision. The company’s Line of Credit product is managed by Barry Joseph. It substitutes a pre-financing process that took 2-3 months previously. Line of Credit streamlines that process to get completed within 48 hours and RippleNet members buy XRP at pre-determined prices.

In attendance at the Swell conference was an On-Demand Liquidity (ODL) panel with 3 partners. These partners include a “new face” with Sigue Group CEO Guillermo de la Vina, Bitso from Mexico, and Flash FX from Australia.

Concurrently, an unconfirmed rumor emerged which confirms previous leaks that there is a possible partnership between Ripple and Bank of America. The XRP community is divided on that issue. But, footage and screenshots have emerged on Twitter showing an ODL demonstration video of the Bank of America. Nevertheless, that presentation is not confirmed with other sources writing ‘Fast Remit’.

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Wanguba Muriuki is a content crafter passionate about putting everything into writing. He is passionate about Blockchain and Traveling. He is also an experienced creative and technical writer. Everything and everyone has a story to tell. What better way to capture the real story than in words.



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Morgan Stanley Reports Profitable Q3, Revenue Hits $11.7 Billion

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Morgan Stanley has made a big jump following its previous quarter reports that were marred by the influence of the coronavirus pandemic.

Investment banking giant Morgan Stanley (NYSE: MS) has posted a better than expected earnings for its Q3 on Thursday. According to Reuters, the Q3 earning Morgan Stanley reported came as a result of the firm’s blossoming trading business.

Per the financials, Morgan Stanley reported an $11.7 billion net revenue surpassing last year’s figures that were pegged at $10 billion. Net income reported came at $2.7 billion or $1.66 per diluted share, a big improvement from the net income of $2.2 billion, or $1.27 per diluted.

Morgan Stanley’s Chief Executive Officer and Chairman James P. Gorman attributed the company’s performance to key business decisions involving targeted acquisitions made within the quarter. He said:

“We delivered strong quarterly earnings as markets remained active through the summer months, and our balanced business model continued to deliver consistent, high returns. The completion of the E*TRADE acquisition, the subsequent ratings upgrade from Moody’s, and the recently announced acquisition of Eaton Vance significantly strengthen our Firm and position us well for future growth.”

Other performance tickers including the record of a pre-tax income of $3,487 as against $2,710 reported in Q3 2019. The reported net revenue does not just express the sound position of the company to investors, it showed that the company’s business has strengthened across all front despite the ravaging effects of the coronavirus pandemic.

Also, Morgan Stanley reported growth in its investment banking sector with revenues shooting up 11% from a year ago while the company’s Trading and Sales net revenue climbed by 20% from a year ago. With good growths seen in most indices showing an impressive performance in the quarter ended September 30th, Morgan Stanley now stands as one of Wall Street’s big names with a positive Q3 outlook.

Morgan Stanley Q3 Results: How Firm Fared Compared to Previous Quarters

Morgan Stanley has made a big jump following its previous quarter reports that were marred by the influence of the coronavirus pandemic. Despite the acquisition of E*TRADE, a leading online broker that has produced stellar results for the greater part of a decade and that has about $360 billion in assets, Morgan Stanley’s Q1 performance turned out low in the first quarter of 2020.

In Q1, the total net revenue reported came at $9.49 resulting in a plunge of about 7.8% compared to the same period last year. The Q2 performance however complimented the Q1 plunge suggesting that the company’s investments in the previous quarter had started picking up the positive momentum. Morgan Stanley’s Q2 revenue surged to $13.4, an increase over 2019 Q2’s $10.2 billion.

The positive momentum the company has gained as shown in both its Q2 and Q3 will make analysts revise their expectations for Morgan Stanley in the current Q4.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.



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