‘You might get fired if you don’t own Bitcoin’: CoinShares on CNBC
There could now be a career-risk for a portfolio manager to not have Bitcoin in their portfolio — the CoinShares chairman talks Bitcoin sentiment on CNBC
Published on December 2, 2020
CoinShares chair and former JP Morgan commodity trader Danny Masters told CNBC that the financial landscape has changed to the point where not having exposure to Bitcoin could be a riskier move for portfolio managers than investing in it.
Interviewed on Power Lunch, the head of the digital asset management firm referred to the fact that in the past it was seen as risky for asset managers working in institutions to put money into Bitcoin. But he claimed that the “perceived career-risk for having Bitcoin in your institutional portfolio, as a portfolio manager, is fast migrating into a career-risk for not having Bitcoin in your portfolio, and that’s a really stunning development.”
CNBC host Kelly Evans summarized the statement:
“That is perfectly well-stated, you’re not going to get fired anymore if you had some Bitcoin, but you might get fired if you didn’t.”
Masters believes that perceptions of Bitcoin as an extremely volatile asset had subsided because “the volatility of other asset classes has proved to be a lot more volatile than people expected.”
He said that Bitcoin has shed its former negative stigma among mainstream investors and that it’s no longer a question of if companies will get exposure to the digital asset, but when and how much, citing investments from Square, Microstrategy, and Paypal.
These companies “are outperforming the market because they are going public with their exposure to Bitcoin,” and as a result:
“Sentiment is electric, there is no doubt about that.”
In October, Masters stated that Bitcoin was increasingly resilient and in a very strong position as its price refused to falter despite news around charges being laid against the founders of major derivatives exchange BitMEX that would have driven a price reduction in the past:
“Having been around crypto during MtGox, the China ban, Bitfinex Hack, Trump comments and many of the other market-smashing stories that punctuate bitcoin’s history I was struck by the lack of negative price movement, particularly around BitMEX,”
The Fear & Greed Index is sitting at 92 out of 100, indicating a sentiment of extreme greed. These levels had not been seen since June 2019 when the index hit 95.
First Mover: Ether Eyed as Value Play With Bitcoin Pressing $20K
Bitcoin was rising back toward the all-time high price of $19,920 notched earlier this week.
“So far, prices remain constrained, either with sellers unwilling to part with their coins at any lower price or buyers unwilling to take further bets on a rally,” Matt Blom, head of sales and trading at the cryptocurrency-focused financial firm Diginex, wrote Thursday.
In traditional markets, European shares slid and U.S. stock futures pointed to a lower open after coronavirus-related fatalities in the country surged Wednesday to at least 2,760, the deadliest day since the pandemic began. Gold strengthened 0.4% to $1,838 an ounce.
Those new to crypto, such as the institutional investors recently buying into bitcoin’s “digital gold” narrative, might now be looking around for the next big thing.
With the long-anticipated arrival of the Ethereum 2.0 upgrade on Dec. 1, that could be the network’s native token, ether. But analysts say ether should be judged on its own merits and not as a bitcoin replacement.
“I’ve always thought this digital asset space is huge – and it’s not just bitcoin – because there are going to be different applications for different things,” Raoul Pal, CEO and co-founder of financial media group Real Vision, said in Real Vision’s documentary “Ethereum – An Investigation,” which was released on Nov. 30. “I think of the two [bitcoin and ether] as having a very nice combined asset allocation.”
For Pal, an early bitcoin investor, the rationale seems even more plausible these days: As bitcoin’s price hits a new all-time high, the number one cryptocurrency by market capitalization is now more expensive and thus potentially a riskier bet for new investors.
It can be expected investors are looking for a new opportunity in crypto at affordable prices. Given that ether is trading roughly 59% below its all-time high of $1,432.88, it is tempting to believe there’s a bargain to be had. What’s more, the Ethereum 2.0 upgrade to increase the network’s scalability, security and energy efficiency has generated a lot of hype.
Bitcoin is locked in the range of $18,000 to $20,000 since Tuesday, having nearly doubled to a record price of $19,920 in the past eight weeks.
“Large sell orders near $20,000 and consistent dip demand have led to price consolidation, according to Patrick Heusser, a senior cryptocurrency trader at Zurich-based Crypto Broker AG. “If either side breaks, I believe we would see fireworks, especially to the upside.”
Macro factors point to a continued bull run. The U.S. 10-year breakeven inflation rate, which represents how the market foresees long-term inflation, rose to 1.85% on Wednesday. That’s the highest level since May 2019. The Dollar Index, which tracks the greenback’s value against major currencies, is seen near 91.00 at press time, a level last seen in April 2018, according to TradingView.
The USD drop and rising inflation expectations typically force both institutions and retail investors to buy traditional store-of-value assets such as gold. This year, institutions have increasingly poured money into bitcoin, reinforcing its use as an inflation hedge. The trend may well continue, with Morgan Stanley predicting another 10% decline in the dollar over the next 12 months.
A breakout, if confirmed, would shift the focus to $20,300, where sizable open interest appears to be building in the options market. Alternatively, acceptance under $18,000 would expose the Nov. 27 low of $16,218.
USD Coin (USDC): Visa may issue USDC credit card after adding Circle to “fast track” program.
XRP (XRP): Brad Garlinghouse, CEO of Ripple, provider of XRP-based payment network, walks back threat to leave U.S.
Ampleforth (AMPL): supply-rebalancing stablecoin launches on Tron, Pokadot and NEAR blockchains.
U.S. lawmakers introduce bll that would require stablecoin issuers to obtain bank charters (CoinDesk)
4 charts showing why bitcoin is an alternative risk asset, according to Damanick Dantes (CoinDesk Opinion)
U.S. President-elect Joe Biden calls $908B stimulus proposal a “at best only a down payment” (Bloomberg)
Prospect for Federal Reserve bond purchases helps keep lid on 10-year U.S. Treasury yields (WSJ)
Dollar skids to fresh 2.5-year low as U.S. stimulus talks revive (Reuters)
Congress sets stage for exiling Chinese stocks from U.S. over audit dispute (WSJ)
CFOs feel confident Biden won’t be able to raise the corporate tax rate to 28%, according to CNBC survey (CNBC)
Federal Reserve’s Boston branch says regional business executives estimate daytime office occupancy rates at about 20% (Reuters)
U.S. private payrolls miss expectations in November as coronavirus infections spread, according to ADP, with growth of 307K versus an estimated 410K and 404K the prior month (Reuters)
Judy Shelton, longtime proponent of return to gold standard, appears to lack sufficient support to advance in nomination as Federal Reserve governor (WSJ)
Gasoline-powered cars may be a thing of the past in Japan as island nation plans to ban them outright by 2030s (Nikkei Asia Review)
U.S. private equity firm Blackstone Group has purchased over $1 billion of real estate in Japanese urban areas (Nikkei Asia Review)
Canadian Restaurant Sends a Bitcoin Message To SMEs
Whereas extra huge firms and traders are turning into bitcoin (BTC) in seek for a reserve asset and hedge in opposition to inflation, one Canadian small enterprise exhibits that it would assist smaller enterprises too.
Canadian restaurant chain Tahini’s, which calls itself the “finest Center Jap restaurant on the planet,” has been banging the BTC drum once more, calling the token “digital gold” and reaffirming its choice to transform its fiat reserves to BTC.
The chain serves Center Jap meals at 4 places in Canada, with three extra set to open, and was based in London, Ontario.
It first made headlines within the crypto world in August this yr, when it took to Twitter, asserting that it was changing its “whole” money provide to BTC.
And in a current series of tweets, the agency as soon as once more voiced its beliefs – like these of American software program agency MicroStrategy – that companies will profit over the long-term from ditching money in favor of BTC-buying.
Tahini’s wrote that its “present macroeconomic setting implies that there’s going to be 10 to 15% enlargement” to its financial provide “yearly for the subsequent three to 5 years (or extra).”
The agency added that “Property are going to inflate. Bitcoin is digital gold and it’s going to have the very best actual yield as a result of you’ll be able to’t make any extra [of] it.”
The restaurant proprietor additionally took time to take a swipe at different asset courses, together with gold, including,
“All the opposite investments are overvalued trades. Bonds are unethical, shares are grossly overvalued, gold is a shitty retailer of worth that debases by 2% a yr. Gold in 2020 is a rip-off, you’ll see governments and establishments pumping it to dump on retail misinformed traders as a result of bitcoin is 1000x higher throughout all points.”
And the chain claimed that it will proceed to transform money revenues to BTC in “coming years and possibly eternally if we do not have a necessity for the fiat,” including that “We is not going to look forward to S&P 500 to start out doing so.”
The corporate didn’t present any numbers about its investments. Cryptonews.com has contacted Tahini’s for remark.
On the time of writing (15:21 UTC), BTC trades at USD 18,959 and is down by 2% in a day and 1.5% in every week. The value ralied by 40% in a month and 156% in a yr.
Bitcoin Makes US Greenback Much less Related – BlackRock CEO
Company Treasuries Caught Between an Inflation Rock and Bitcoin
Author: By admin
Bitcoin is the ‘ultimate anti-lockdown investment,’ says Nigel Farage
The United Kingdom Tory Party’s nemesis, Nigel Farage, has gone “full crypto.”
On Nov. 27, Farage sat down for a video interview to discuss all things crypto with Sam Volkering, the editor of Southbank Investment Research, which is, notably, the publisher of Farage’s recently launched investor newsletter “Fortune & Freedom.”
In the interview, Farage derided the government’s “funny money,” which it continues to print throughout the pandemic at warp speed, and concluded that it’s therefore “crucially important” to get one’s head around crypto.
He has elsewhere called Bitcoin “the ultimate anti-lockdown investment,” pointedly on-brand for his newly-launched Reform UK party.
Farage and Volkering’s video interview is apparently just the first in a series, which will educate viewers about how to buy crypto, how to store it and keep it safe.
Journalists at The Financial Times have apparently long expected the politician’s pivot to crypto — “it was only a matter of time,” as Alphaville columnist Jemima Kelly would have it.
The evidence for the “inevitable” crypto pivot is hard to quibble with. Farage’s Fortune & Freedom pitches itself to an audience that aspires to “grow [its] wealth” in a “New Britain, unleashed after Brexit.” Farage, a former commodities trader, tells his readers that having secured political freedom through Brexit, it’s time for them to get their money and their destiny back in their hands.
Other newsletters published by Southbank Investment Research include titles such as “Short the World,“ “Crypto Profits Extreme,“ and “Exponential Investor Premium.“ Volkering is a self-described “authority in the new field of digital assets,” having first bought Bitcoin in 2011 and “followed the cryptocurrencies ‘wild west.’”
He is also the author of a book called Crypto Revolution: Bitcoin, Cryptocurrencies and The Future of Money, also published by Southbank Investment Research. Kelly scathingly recommends the book as an opportune gift choice for FT readers who may have ended up with a despised colleague for their 2020 office Secret Santa.
The FT’s unabashed dislike of Farage and his crypto enthusiast colleague aside, some of the influences on Fortune & Freedom appear to be more eclectic than the alleged free-market fundamentalism of the Brexiteers.
The close ties between the libertarian movement and the arch-Atlanticists of the Vote Leave campaign have, by now, been well documented. One Whitehall source stated that “not even Margaret Thatcher or monetarism at its height had contemplated such shock therapy” as the Brexiteers, with their drive towards a unilateral opening up of the U.K. to the United States market and a radical economic liberalization of the country.
Yet Farage’s partner on the newsletter, Nick Hubble, published a piece on Dec. 3, claiming that both “Keynes and Friedman died of COVID-19” and advocating the “radical future” promised by the proponents of Modern Monetary Theory, or MMT.
MMT takes up the argument that states create the demand for their fiat currencies by taxing the population. Money is therefore seen as a unit of account for credit and debt, which can be created and destroyed at will by sovereign states. MMT popularizer Stephanie Kelton writes that the state can, “afford to buy whatever is for sale in its own unit of account.”
This is a view starkly opposed to many Bitcoiners’ conviction that loose monetary policy represents a putative, inflationary debasement of value.
How Hubble will reconcile his apparent embrace of MMT with his previous view that cryptocurrencies “represent the first reversal of […] government theft in hundreds of years” remains to be seen.
With the U.K. poised to face its worst shock in 300 years due to the combined impact of coronavirus and Brexit, it is perhaps the spirit of the monetarists, if not the letter, that will triumph according to Milton Friedman’s legendary maxim: “Only a crisis — actual or perceived — produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around.”
Whether it be MMT, the crypto revolution or Farage-Hubble eclecticism, something will present itself as being ready to hand for the select few beneficiaries of Britain’s 2020 twofold crisis. It is, after all, the perfect time for someone’s preferred alternative to shift from “politically impossible” to being “politically inevitable.”