Bitcoin has planted itself firmly back in the financial news as the digital currency is again above or near all-time highs, not seen since the crypto run faded in 2018. However, this time Bitcoin could be around to stay.
PayPal (NYSE: PYPL), Square Inc (NSDQ: SQ), and dozens of other companies recently announced they would begin accepting cryptos by the end of 2020. Not only that but cryptocurrency experts like Anthony Pompliano, AKA The Pomp, have made Bitcoin and Ethereum price predictions that show the assets could remain a bullish market.
As Bitcoin and other cryptocurrencies gain endorsements and acceptance from companies like PayPal, Microsoft, and AT&T, it’s time to evaluate their potential role in a diversified portfolio. Does Bitcoin have a place in your IRA? Should you invest in Bitcoin or invest in Ethereum? Or should you continue with only the old-school mix of stocks and bonds? A lot will depend on your own individual goals and risk tolerance, but you might be surprised to learn how far Bitcoin has come in a short time frame.
What are Stocks?
A stock is a little piece of paper that says you own a tiny stake in a public company. Stock certificates used to be sent in the mail. Today, you won’t get a certificate (or even a little piece of paper) since most trading is done electronically or over the phone. However, buying a stock still allows you access to a portion of an operating company’s profits.
When public companies want to raise capital, they have a few options. They can issue debt in the form of bonds, which act as loans purchased by investors or institutions. Bonds are basically IOUs — you lend your capital to the company and they promise to return it at a specific future date, along with some income payments during the life of the debt (called a coupon). But bonds don’t entitle you to any profits, just the return of the money you originally lent out.
Companies can also issue equity in the form of stock to raise money. During an offering, a public company will sell off little pieces of itself as shares of stock to investors. Stocks are riskier than bonds since the company’s performance dictates how much the stock returns, unlike the preset parameters of a bond. If the company does well, the shares could balloon in value, plus investors could be rewarded with dividends on any excess profit. However, if the company struggles and sales don’t meet expectations, the value of the shares will likely decline, and investors will have no recourse for their lost capital.
Pros of Stocks
- Historical precedent: Stocks have been around for centuries and today’s public markets still contain firms that were operating back in the 1800s. Over time, stocks in the S&P 500 tend to return around 10% annually.
- Ability to diversify: Buying individual stocks can be risky, but you can still invest without ever buying an individual company’s shares. Through mutual funds and ETFs, stock investors can buy a basket of equities which prevents the risk of any single company sinking your portfolio.
Cons of Stocks
- Time horizon: If you want to get rich fast, then a diverse basket of equities likely won’t excite you. Sure, occasionally you can pick winners and losers correctly, but stocks are a long game and may disappoint if you have a short time horizon.
- Bottom of the totem pole: Should the company you invest in go under, you likely won’t be compensated for your loss. Stockholders are the last ones paid out in bankruptcy, which is why diversification is so important. That’s why diversifying in other assets is important.
- Evaluating your risk tolerance: How well would you handle a 20 percent drawdown in stocks? It’s a difficult question to answer unless you experience it firsthand. Investing can bring out a lot of emotions since our hard-earned money is involved, which makes less sophisticated stock buyers prone to panic and irrationality. If you want to trade stocks successfully, you need to be honest about your own tolerance for risk.
What is Bitcoin?
Bitcoin is a cryptocurrency developed to run through a digital ledger known as the blockchain. Developed in 2009 by Satoshi Nakamoto, the goal of Bitcoin was to provide a decentralized currency for online transactions. The idea behind cryptocurrencies wasn’t a new one, but Nakamoto was the first to offer a solution to the inherent security issues behind a non-centralized digital asset.
By utilizing blockchain technology, Bitcoin would create a ledger of transactions that was both secure and unchangeable. Each transaction would be recorded and stamped to verify its uniqueness, which would prevent Bitcoins from being manipulated or spent twice. Basically, Nakamoto’s currency would prevent digital counterfeiting without the input of a central authority.
Bitcoin transaction processing speed has been lapped by some new entrants like Ethereum and Bitcoin Cash in the cryptocurrency space. Still, Bitcoin is an intriguing high-potential growth asset worthy of discussion for your portfolio, especially in a crypto IRA or 401k.
Pros of Bitcoin
What are the pros of investing in Bitcoin?
- Scarcity: One of the biggest factors when determining the value of an asset is scarcity. This concept was widely on display during the early stages of the pandemic when the prices for N95 masks and other forms of PPE skyrocketed as demand surged and supply dwindled. When it comes to the economics of Bitcoin, when demand increases quicker than supply, prices go up.
- Inflation hedge: In years past, investors would turn to assets like gold as a store of value if they perceived inflation on the horizon. While gold and the S&P 500 certainly don’t move in lockstep, physical gold can be expensive to own and impractical to use or transport. With Bitcoin emerging as a legitimate asset, it could create a better inflation hedge than gold since Bitcoin has a maximum quantity of 21 million. That’s why some investors are choosing to invest in Bitcoin rather than gold.
- Possibly the best crypto to invest in: Hundreds of different cryptocurrencies and coins exist, but none have become synonymous with the entire asset class in the way Bitcoin has. While Bitcoin may not be the cheapest to mine or use the blockchain most efficiently, it does have the benefits of brand recognition. Plus, there are many crypto experts who have incredibly positive Bitcoin price predictions of $100k or more.
Cons of Bitcoin
- Volatility: Bitcoin is a single entity, like an individual stock or bond. When you buy stocks, you can buy ETFs to own a basket of securities and take a little of the edge off your portfolio. Not so with Bitcoin. Bitcoin can be a volatile asset, which could be scary if you’re risk-averse or investing in the short-term.
- Not widely available through brokers: Most brokers don’t have a way for their clients to access the cryptocurrency markets yet. But our Bitcoin IRA platform makes it easy for investors to buy cryptocurrencies and even gold.
Which is better: Bitcoin or Stocks?
Stocks are typically less volatile, whereas cryptocurrencies are newer and have potentially more risk and reward.
But one thing is for certain, Bitcoin has been significantly outperforming the S&P 500 in 2020 by a giant magnitude in 2020. To be more specific, the S&P 500 increased by around 18%, while Bitcoin went up nearly 350%.
Source: Yahoo Finance
Overall, these investment choices differ significantly so the decision is based on each investor’s personal preference and includes factors such as time horizons and risk appetite.
Many financial experts say it’s important to diversify your investments to decrease risk. Investing can be complicated, but online sources, such as Benzinga, CoinDesk, or Investopedia, can be one of many sources you can use to learn about investing.
Recommended article: How Bitcoin IRA works
Amplifying Her Voice
- 200+ Speakers, 75+ Countries, 5 Continents, 3 DAYS International Women’s Day Global Virtual Summit
- Topics Include: Blockchain, Digital Assets, FinTech, Artificial Intelligence, Women in Space Exploration, Global Women’s Entrepreneurship & Leadership, Podcasting, Healing & Wellness
You are cordially invited to join us for this GLOBAL Virtual Summit celebrating the voices of women & girls around the world as we discuss new paradigms in reshaping the global digital economy and celebrate the launch of The State of Women Podcast Network in partnership with The State of Women Institute, SHEQONOMI, and Women Investing in Women DIGITAL.
- Inviting all global partners & leaders committed to the economic empowerment of women to join us for various strategic opportunities
- Our 3-day event will engage women entrepreneurs & women owned enterprises build bridges for global international trade & commerce
- Join us in setting a new global standard for the economic empowerment of women, especially small and large scale women entrepreneurs from leading economies, emerging markets, and industry thought leaders and mavericks leading Post-Pandemic Recovery.
REGISTER HERE: https://hopin.com/events/sheqonomi
Global investment into women led companies has reached an all time low during 2020. We are seeing many innovative ideas come out of developing nations across the globe that deserve more visibility and connectivity with qualified investors and partners who can help them grow and scale. Amplifying Her Voice will serve as a global platform that will bring such stakeholders together from within Women Investing in Women Digital’s virtual tribe to a broader global community of women entrepreneurs, investors, technologies, and industry professionals to accelerate both communication and unprecedented digital connectivity. This Roundtable will be the beginning of a series of conversations where professionals from within the global innovation ecosystem may listen, learn, and share best practices with the global women’s entrepreneurship ecosystem where our global network of women investors and philanthropists will be invited. Your will have the opportunity to share your CALL’s to Action from local, regional, and global standpoints that will hopefully be a starting for deeper conversations and partnerships leading to change, investment, impact, and transformation.
ABOUT AMPLIFYING HER VOICE (March 8-10, 2021):
A worldwide pandemic, uncertainty, and troubles big and small over this past year have brought increasing challenges and anxiety—but they have also brought together women leaders and innovators around the globe: to share their ideas and innovations, to inspire and lift up one another, and to support women and change the world. Join us as we amplify their voices, celebrate their accomplishments, learn from their vision, and work together to invest in women.
- Join us as we co-create the NEW normal where our voices and our wisdom are valued.
- Listen to innovators, entrepreneurs, investors, and women on the front-lines who have developed solutions to global issues at scale addressing UN Sustainable Development Goals shaping the global economy, education, food security, climate change, space exploration, and more.
- Participate in main stage content and breakout workshops on global women’s entrepreneurship, healing and wellness, and the latest in blockchain and cryptocurrency investing.
- Bring your curiosity and connect with our global community in our breakout sessions and networking receptions.
ABOUT ANU BHARDWAJ
Founder Anu Bhardwaj is a serial social entrepreneur and philanthropist, listed on the 2020 Inc Magazine Global Top 100 Female Founders and one of 7 female Award Recipients of the 2020 Transform Fund from the Islamic Development Bank (from a pool of 5,000 applicants worldwide). Anu also co-chaired the 2nd Annual Blockchain for Impact Summit at the United Nations HQ in 2019, and is the founder of Women Investing in Women Digital with over 1M international followers, The State of Women Institute, and SHEQONOMI which has produced a suite of women-led and women focused podcast APPS on Android, iOS, and KaiOS.
ABOUT THE STATE OF WOMEN INSTITUTE
- The State of Women Institute is a U.S. 501(c)(3) nonprofit organization dedicated to amplifying the voices of women and girls through programs and initiatives that support the creation of various forms of digital media (including podcasts, video documentary, social media related, print, AR and VR). The State of Women Podcast Network, launching Spring 2021 on GooglePlay, Android, and KaiOS, encompassing 300 women podcasters from across five continents. The State of Women Institute will be partnering with Women Investing in Women DIGITAL, SHEQONOMI, and a long list of reputable global non-profits and change makers across 50+ countries worldwide in leading “Amplifying Her Voice” Global Virtual Summit on International Women’s Day 2021.
Contact: ANU Bhardwaj
Mobile: +18587367460 Email: Anu@womeninvesting.in
Source:- Should be Women Investing in Women
NEXT Chain: New Generation Blockchain With Eyes on the DeFi Industry
The cryptocurrency industry is booming throughout the past year, and the increase in the total market capitalization is definitive proof.
The market is, at the time of this writing, valued at about $1.5 trillion. The same can be said about the DeFi industry. The total value locked in various protocols exceeds $39 billion, and the direction has been up only for quite some time.
However, this has also brought certain inefficiencies in different solutions, including Ethereum. Transaction fees on the network surge as it’s clogged by new participants. This is the reason we’ve seen plenty of alternative solutions being developed to tackle these issues.
NEXT chain is a new-generation blockchain that allows the tokenization of various assets, making them instantly tradeable at quick speeds and low fees.
What is NEXT Chain?
NEXT Chain is a blockchain that allows anyone to create and maintain their own digital assets in a manner that’s easy and rather similar to the ERC20 protocol standard running on Ethereum. All assets are tradeable directly as the team’s aim is to deliver transparent liquidity to existing and new projects.
The capabilities of the network include but are not limited to:
- Issuing digital fungible assets such as bonds, stocks, and other securities
- Creating non-fungible tokens (NFTs)
- Creating and managing sovereign and decentralized identities
- Design and run other types of arbitrary-complex smart contracts
It’s also worth noting that the blockchain is up and running since April 2019. It already has almost 200 master nodes, and, as the team reports, it doesn’t have a single failed transaction.
Additionally, the team aims to deliver the most profit for its community by taking advantage of different financial activities while also putting real-backed assets on-chain such as company stocks or commodities like gold, for example. It will also be connected to a fiat gateway, so there’s no middleman if the user decides to swap to EUR or USD, for instance.
The team has implemented a combination of Proof of Work and Proo of Stake consensus algorithms with master node validators acting as a Layer 2 technology. This allows the network to achieve high transactional throughput, typical of PoS networks, while also keeping the PoW principles to guarantee that miners calculate hashes with strong encryption.
Some of the advantages of these integrations include low transaction fees, high speeds, and scalability.
What Are the Benefits for Projects and Investors?
Teams are incentivized to build on NEXT Chain through a variety of different mechanisms, mainly through the capabilities of the blockchain itself.
They can create assets quickly and easily and also take advantage of crowdfunding opportunities. The transactions are quick, and the fees are comparatively lower. The team reports that the blockchain can handle up to 10,000 transactions per second (TPS) which is considerably more than Bitcoin or Ethereum’s chains.
On the other hand, investors can benefit from liquidity farming, staking rewards, master node rewards, mining, as well as from master node governance.
The NEXT Exchange
Another important part of NEXT’s ecosystem is the NEXT Exchange. It’s built on the proprietary blockchain, and it’s fueled by master nodes that allow it to reach a very high transactional throughput.
Each user retains full custody over their funds and gains access to their own private keys. It’s also worth noting that the team is building an alternative to Uniswap and PancakeSwap as the leading decentralized exchanges on Ethereum and Binance Smart Chain, respectively.
In addition to that, there are other initiatives that the project has in store, such as:
- New and updated desktop wallet
- Upgraded block explorer
- A mobile app
- Integrating smart contracts on NEXT chain
- Atomic swaps
Cardano, NEM, Sushiswap Price Analysis: 03 March
Even though the on-chain metrics for Cardano, NEM, and SUSHI pointed to a short-term pullback, the fate of the altcoins rested with the bullish cues from Bitcoin and Ethereum. If the technicals do hold up, the aforementioned coins would need to bypass a period of bearishness, before continuing their northbound movement.
Cardano maintained its position as the world’s third-largest cryptocurrency with a market cap of slightly under $40 billion. Interestingly, a jump of 23% over the last seven days also made Cardano the highest weekly gainer among the top-10 coins by market cap. At press time, ADA was trading just below record levels, while preserving its healthy uptrend on the daily charts.
The Parabolic SAR confirmed the bullish nature of the price as the dotted markers moved below the candlesticks. On the downside, a bearish divergence was spotted on the RSI after the index formed lower highs in the overbought region. With market leaders picking up the pace at the time of writing, bearish predictions for ADA could be offset by bullishness in the broader market.
NEM was another example of a cryptocurrency that registered healthy gains in a largely subdued crypto-market after the price jumped by over 40% in a week even as the market leaders moved sideways. The said hike was boosted by strong bullish momentum, with the same highlighted by the green bars on the Awesome Oscillator.
On the flip side, the Relative Strength Index noted a saturation of buyers in the market and highlighted a bearish pullback. The support level at $0.7 could be in focus in such a scenario. Nevertheless, expect NEM to continue its ascension on the charts post the correctional period.
SUSHI was trading in the red territory at press time as the price dropped by nearly 5%, compared to yesterday. Even though SUSHI picked up from the $17.24-support level on the 4-hour charts, low trading volumes and buying activity meant that a move towards record levels was unlikely over the coming sessions.
The MACD closed in on a bearish crossover as the green bars fell on its histogram. The CMF was optimistic in its outlook as the index rose above the half-way mark and highlighted the flow of capital. In fact, there was a chance that SUSHI could sustain itself above its press time support, even in a bearish scenario.
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