Connect with us
[crypto-donation-box]

Blockchain

Cryptocurrencies — The New Frontier

Python, Mean-Variance Analysis, Efficient Frontier and how cryptocurrencies push the boundaries

Republished by Plato

Published

on

First, we need to import cryptocurrency price data that we can add to that of the 30 US stocks we have analysed so far. In this analysis, I focus on four of the most well-known and biggest cryptocurrencies (in terms of market capitalisation): Bitcoin, Ethereum, Tether and Litecoin.

Plotting the normalised time series of the cryptocurrencies’ prices over time look like this:

A few observations regarding the above time series:

  1. In normalised terms, Ethereum experienced extreme spikes in 2018.
  2. The y-label ticks are in increments of 10,000 (compare that to the y-axis of the stock prices time series in Part 1!).
  3. It appears as though Litecoin, Ethereum and Bitcoin tend to move together (i.e. are correlated) but Tether shows no correlation, or even movement.

Because the time of normalisation in the above graph is August 6, 2015 (which is the first day that Ethereum prices were included on Yahoo Finance), a time when cryptocurrencies were extremely novel and at very low prices, the scale of the y-axis goes all the way up to 50,000. The starting price for Ethereum is $2.77 and in 2018 it reached a maximum of $1,396.42, which is almost 504 times the starting price. This is clearly a very special case and I will comment on this later on.

The above time series shines a light on a rule of thumb that is intuitive to any investor (but arguably also has broader applications in life), which is that higher returns tend to come with higher risks. The returns that one could have experienced from investing in cryptocurrencies over exactly that time period are immense but the time series plots have a lot of ups and downs, and in Ethereum’s case very extreme ones, making them very risky.

After extracting the relevant cryptocurrency prices and computing daily log returns I was curious to see what the correlation of the returns of cryptocurrency prices would be with the returns of stocks. The full correlation matrix can be found in the notebook, but to summarise, there is almost no correlation between cryptocurrency returns and stock returns (at least for the ones included in this analysis) over the time period from mid-2015 to mid-2020.

The fact that cryptocurrencies seem to be close to uncorrelated with any of the stocks in the existing portfolio, in combination with their impressive returns, would indicate that adding them to the portfolio could be beneficial from a mean-variance perspective. Let’s see what that looks like.

In the above visualisation, the blue cluster represents the randomly generated portfolios based solely on stocks and the orange cluster represents randomly generated portfolios based on stocks and cryptocurrencies. The orange cluster is far more spread out over the x-axis, meaning that the randomly generated portfolios based on stocks and cryptocurrencies have a wider range of possible risks, especially towards the riskier end. At the same time, the orange cluster, even for the same level of risk, tends to lay above the blue cluster, indicating a better risk-return profile for the orange cluster.

The Efficient Frontier that can be achieved using both stocks and cryptocurrencies lies above and to the left of that using only stocks and therefore provides a superior return for any amount of risk.

The red stars represent the maximum Sharpe ratio portfolios and, in line with the clusters and Efficient Frontiers, the one constructed using stocks and cryptocurrencies offers substantially higher return, but also comes with more risk. The Sharpe ratios are 1.21 and 1.49 for the stocks-only and the combined portfolios, respectively.

Plotting the respective Capital Market Lines completes the picture:

Adding cryptocurrencies into the mix and combining the resulting efficient portfolio with a risk-free investment provides a superior risk-return profile than would be achievable using only stocks and the risk-free investment.

At this point some people might say “But wait a minute, all you did was add an asset with almost uncorrelated returns to the portfolio, couldn’t you achieve the same with any asset whose returns are close to uncorrelated with the portfolio, such as gold or silver?” and that is a really good point to make. Let’s have a look at that.

Source: https://towardsdatascience.com/cryptocurrencies-the-new-frontier-part-2-7218c6a489f9?source=rss——-8—————–cryptocurrency

Blockchain

Kraken Daily Market Report for May 08 2021

Republished by Plato

Published

on


Overview


  • Total spot trading volume at $2.86 billion, 9% higher than the 30-day average of $2.63 billion.
  • Total futures notional at $797.5 million.
  • The top five traded coins were, respectively, Ethereum, Bitcoin, Dogecoin, Tether and Ethereum Classic.
  • Strong returns from Gnosis (+14%) and Ethereum (+12%).

May 08, 2021 
 $2.86B traded across all markets today
 Crypto, EUR, USD, JPY, CAD, GBP, CHF, AUD 
ETH 
$3914.1 
↑12% 
$797.5M
XBT 
$58953. 
↑2.7% 
$795.7M
XDG 
$0.6368 
↓7.6% 
$636.4M
USDT 
$1.0014 
↑0.05% 
$285.3M
ETC 
$128.55 
↑7.0% 
$104.4M
ADA 
$1.6234 
↓1.9% 
$79.3M
LTC 
$347.39 
↑0.6% 
$50.5M
XRP 
$1.5653 
↓1.0% 
$48.7M
DOT 
$39.923 
↑0.07% 
$43.9M
BCH 
$1400.7 
↑4.4% 
$42.4M
USDC 
$1.0 
↑0.0% 
$40.4M
LINK 
$48.693 
↓1.3% 
$30.8M
EOS 
$10.361 
↓0.26% 
$29.7M
TRX 
$0.1431 
↓3.0% 
$17.1M
FLOW 
$28.668 
↓2.9% 
$16.1M
SC 
$0.0405 
↓4.7% 
$15.6M
STORJ 
$2.2312 
↓0.4% 
$14.7M
ATOM 
$29.510 
↑3.0% 
$11.8M
XLM 
$0.6155 
↓2.5% 
$11.6M
DASH 
$409.86 
↑1.3% 
$11.2M
XTZ 
$6.9881 
↓1.3% 
$10.0M
QTUM 
$25.576 
↓4.3% 
$9.83M
XMR 
$476.08 
↑4.6% 
$9.7M
KSM 
$435.0 
↑1.3% 
$7.39M
ZEC 
$315.75 
↓1.3% 
$6.91M
FIL 
$148.15 
↓1.4% 
$6.82M
WAVES 
$32.449 
↓0.14% 
$6.57M
UNI 
$40.532 
↑2.0% 
$6.55M
ALGO 
$1.5198 
↓3.7% 
$6.03M
DAI 
$1.0011 
↓0.01% 
$6.0M
OMG 
$11.829 
↓0.15% 
$5.87M
LSK 
$8.4918 
↓6.0% 
$3.77M
COMP 
$782.88 
↑9.6% 
$3.71M
ICX 
$2.6909 
↓1.6% 
$3.63M
NANO 
$9.7242 
↓0.6% 
$3.63M
AAVE 
$466.93 
↑5.7% 
$3.39M
GRT 
$1.5855 
↓0.6% 
$3.05M
OCEAN 
$1.4907 
↑2.0% 
$3.02M
KEEP 
$0.6183 
↑6.5% 
$2.98M
GNO 
$291.84 
↑14% 
$2.91M
SNX 
$18.448 
↓1.1% 
$2.72M
MANA 
$1.4419 
↓1.7% 
$2.67M
KAVA 
$6.2917 
↓2.8% 
$2.6M
BAT 
$1.4187 
↑0.6% 
$2.57M
CRV 
$3.5639 
↓2.6% 
$2.41M
KNC 
$3.4433 
↓2.6% 
$1.93M
REPV2 
$48.252 
↑1.0% 
$1.83M
OXT 
$0.6666 
↓1.1% 
$1.68M
BAL 
$69.63 
↑7.8% 
$1.52M
ANT 
$10.317 
↓3.2% 
$1.31M
YFI 
$54058. 
↑1.3% 
$1.3M
PAXG 
$1877.6 
↑0.8% 
$1.12M
EWT 
$13.644 
↓4.1% 
$772K
REP 
$46.85 
↓0.3% 
$714K
MLN 
$108.99 
↑0.5% 
$425K
TBTC 
$58915. 
↑1.6% 
$43.3K



#####################. Trading Volume by Asset. ##########################################

Trading Volume by Asset


The figures below break down the trading volume of the largest, mid-size, and smallest assets. Cryptos are in purple, fiats are in blue. For each asset, the chart contains the daily trading volume in USD, and the percentage of the total trading volume. The percentages for fiats and cryptos are treated separately, so that they both add up to 100%.

Figure 1: Largest trading assets: trading volume (measured in USD) and its percentage of the total trading volume (May 08 2021)



Figure 2: Mid-size trading assets: (measured in USD) (May 08 2021)



Figure 3: Smallest trading assets: (measured in USD) (May 08 2021)


###########. Daily Returns. #################################################

Daily Returns %


Figure 7: Returns over USD and XBT. Relative volume and return size is indicated by the size of the font. (May 08 2021)



###########. Disclaimer #################################################

The values generated in this report are from public market data distributed from Kraken WebSockets api. The total volumes and returns are calculated over the reporting day using UTC time.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://blog.kraken.com/post/9008/kraken-daily-market-report-for-may-08-2021/

Continue Reading

Blockchain

Legendary Pelé NFT Set to Drop on Ethernity May 8

Republished by Plato

Published

on

[Press Release – Los Angeles, California, 8th May, 2021]

Iconic Brazilian footballer Pelé will be immortalized in NFT form on May 8.

The legendary striker, named FIFA World Player of the Century, is getting the tokenized treatment with the release of a licensed aNFT – authenticated non-fungible token – exclusively on the Ethernity Chain at 12pm EST.

The coveted collection features several aNFTs of the soccer star, the result of a collaboration between Visual Lab and Rafa Zabala, whose credits include The Hobbit and Planet of the Apes.

The digital presentation includes “THE KING OF FOOTBALL,” an immersive video tracing the player’s humble origins on the streets of Brazil to a packed stadium witnessing his brilliance. The eponymous “Pelé” aNFT, meanwhile, is represented by a hyper-realistic digital bronze bust of the star in his heyday.

As part of the Pelé aNFT collection, Ethernity will be releasing multi-pack trading cards that make a nod to the player’s Panini trading cards of the past.

Ethernity’s special digital trading cards include “Gilded Bicycle Pelé,” which showcases the player executing his signature bicycle kick. The limited edition cards will be part of the Ethernity Cards and Packs Collection launching this summer, 2021.

90% of aNFT sales will go to The Pelé Foundation, a charitable organization that strives to empower young people facing poverty around the world.

Ethernity’s recent Muhammad Ali aNFT auction, which raised over $550,000, also resulted in a significant donation being made to the Muhammad Ali Foundation.

About Ethernity

Ethernity is exploring applications for non-fungible tokens (NFTs) within the context of art and philanthropy. It provides a way for celebrities and public figures to endorse digital artwork created by renowned artists. Anyone can purchase each limited edition artwork, with a portion of the proceeds going to charitable causes that the celebrity supports. Ethernity was founded by early Bitcoin investor and NFT innovator Nick Rose Ntertsas.

Learn more: http://ethernity.io/

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/legendary-pele-nft-set-to-drop-on-ethernity-may-8/

Continue Reading

Blockchain

Crypto Banter Will Give Away Over $500K To 10 Eligible Community Members

Republished by Plato

Published

on

[Press Release – Cape Town, South Africa, 8th May, 2021]

Banter Bags is a unique project in the cryptocurrency world that aims to give back to its community. What initially started as a $10,000 community giveaway is now worth over $500.000. Ten eligible community members will be chosen randomly to receive their share of the spoils once the Crypto Banter Youtube channel surpasses 250,00 subscribers.

The Banter Bags Giveaway is an event created by Ran Neuner, host of CNBC Crypto Trader and founder of Crypto Banter on Youtube. The initial objective was to reward active participation in the community and generate more engagement with the daily streams but as the investments started to grow it became a mechanism to really change some community member lives.

Speaking of pre-market allocations, the Crypto banter team initially put $10,000 in a public Ethereum address. That money was then invested into allocations, with more investments occurring daily to diversify the portfolio further. Several key investments have noted spectacular returns, including Shopx, Aioz, Refineable and Occam. All of these pre-market allocations have gone up in value by a factor of 100 or more.

As the total value of the Banter Bags now exceeds $500,000, a golden opportunity is created for the community. Once the Youtube channel surpasses 250,000 subscribers, ten community members will earn a Banter Bag with the corresponding spoils. The only requirement to be eligible is to subscribe to Crypto Banter on YouTube and follow the Twitter account. Community members can amplify their chances by following @cryptomanran and @sheldon_sniper on Twitter, by liking/commenting on tweets, and engaging with the two daily streams.

The Crypto Banter team adds:

“It started off as a fun idea of giving $10000 to our community, and as we started to invest, we realized that the community loved the idea of investments in pre-market allocations that we previously off-limits for the average investor. With this in mind, we went all in using our influence to reward our community. It was supposed to be a cool $10,000 giveaway to reward the community, and it has landed up becoming an opportunity to change lives. The channel has exploded since we launched this initiative. We’re up by over 100% on every metric, we gained over 100k subscribers and got over 5m views in the last 28 days. More than that, our community has engaged more. They love the idea that we are giving back to them and that we may at any point change another life.”

Five winners have been randomly selected so far, all of which have an amazing story to share. One of the winners, who goes by the name of Irfan, lost his job and was struggling financially. With a pregnant wife expected to give birth in two months, being announced the winner of a Banter Bag triggered a life-changing event for Irfan. Anyone can go through a similar experience once the remaining Bags are given away to community members.

We also announced that one of the bags will be given to a charity and we are currently looking for a viable option.

About Crypto Banter

CRYPTO BANTER was founded by CNBC CRYPTO TRADER host Ran Neuner and is a LIVE STREAMING CRYPTO STATION. We bring you live streaming coverage of the global Crypto markets and give you a chance to call in, break the news, and banter with our guests and hosts. CRYPTO BANTER was created to bring the banter from Crypto Twitter and Telegram to a moderated, curated AV streaming medium. Think of its as a mix of CNBC, JOE ROGAN, and Talk radio for Crypto!

Follow Crypto Banter on YouTube

Follow Crypto Banter on Twitter

Telegram group

Website

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.


Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/crypto-banter-will-give-away-over-500k-to-10-eligible-community-members/

Continue Reading
Blockchain4 days ago

Major Law Firm CMS Adds Stratis (STRAX) to its Legal Accelerator Program

Blockchain5 days ago

eBay could add a crypto payment option, says CEO

Blockchain5 days ago

Starcoll To Issue Limited Edition Star Wars Collectibles as NFTs

Blockchain4 days ago

Pro traders buy the Bitcoin price dip while retail investors chase altcoins

Blockchain5 days ago

Singapore’s largest bank posts tenfold crypto volume growth in Q1 2021

Blockchain5 days ago

‘This ain’t no game’ as DOGE briefly flippens Nintendo and takes #4 spot from XRP

Blockchain4 days ago

China’s Central Bank to Partner With Alibaba’s Ant Group on Digital Yuan

Blockchain5 days ago

S&P launches cryptocurrency indexes, debuting with Bitcoin and Ether

Blockchain4 days ago

WallStreetBets launches blockchain-powered app to decentralize indices

Blockchain5 days ago

Bybit Launches Ether (ETH) Cloud Mining Service as Demand Booms

Blockchain4 days ago

Bitcoin Miners Moving Away from China, F2Pool Observes

Blockchain5 days ago

Bitcoin and Ethereum Indices Debut on S&P Dow Jones

Blockchain4 days ago

40% intend to use crypto for payments in the next year: Mastercard survey

Blockchain4 days ago

Here Is Why XRP Volume Has Recover Across Payment Corridors

Blockchain5 days ago

eBay is Considering Adding Crypto Payments & NFT Sales

Blockchain4 days ago

Another XRP lawsuit update: SEC accuses XRP Holders of ‘reciting’ Ripple’s litigation position

Blockchain5 days ago

Bank of England Used as Bitcoin Advertising Board Stoking Inflationary Fears

Blockchain4 days ago

‘DeFi may lead to a paradigm shift’ says Federal Reserve Bank paper

Blockchain5 days ago

The Reason for Ethereum’s Recent Rally to ATH According to Changpeng Zhao

Blockchain5 days ago

Bybit to Launch Cloud Mining to Democratize Ethereum Mining

Trending