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How Digital Investments Can Help The Economy Recover From The Coronavirus Pandemic

Supporting digital competitiveness is possibly the key. Investors are encouraged to venture into digital investments to help in the improvement of the economic climate.

Republished by Plato

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The coronavirus changed the way we live and work almost overnight. It brought about negative impacts on the economy, businesses, and even individuals. Many companies closed down, and millions of people were left unemployed. Apart from its global impact, we already know that the crisis is expediting an already growing trend on digitalization.  

From online shopping to drone delivery, virtual meetings to automated productions, the traditional services are moving towards digital, pervading through different sectors and activities. Digitally inclined businesses are acclimating to the ongoing crisis thrivingly, and others are still trying to keep up with the changing environment. 

For governments looking to push economic recovery after the crisis, supporting digital competitiveness is possibly the key. Investors are encouraged to venture into digital investments to help in the improvement of the economic climate. 

Investing in The Digital Space

There is significant evidence that foreign direct investment (FDI) to the digital space can bring technology, knowledge, jobs, and growth. For developing economies, FDI is also often their most significant source of investment. Traditional businesses venturing into digital investments are trying to adapt to the current environment to be close to customers and open new markets. 

“Evidence shows that foreign direct investment can provide many benefits to host countries, including productivity improvements, better jobs, and knowledge transfer. Further, it can serve as a vehicle for the transformation of domestic production and better integration with global value chains,” says a research paper published by the World Bank Group. 

The digital economy generates different new business opportunities. For example, social media, e-commerce, and payment platforms would not exist if not for the internet. Governments that embrace such new businesses create an environment where companies in the digital space to thrive and actively promote the digital economy are likely to have greater success in attracting investments. 

Apart from new business models, investing in digital space can change the way we do business. Local enterprises may shift to various digital services to adapt to the changes brought about by the coronavirus. Adherence to these changes is crucial in achieving investments to help rebuild the economy through digital space.

An excellent example is TimeCoinProtocol (TCP), a platform that facilitates the development of any form of sharing economy service. TCP allows users using sharing economy apps to move from one service to another while they keep all their private data and the reputations they have earned. The first two dApps expected on TimeCoinProtol are eSportStars And TimeTicket. 

eSportStars lets esport players, streamers, and fans find other individuals interested to play, buy, and sell competition tickets. The dApp will allow users to earn money by playing games and has already seen over 300,000 registrations before launch.

The platform is available in Japanese, Chinese, and English and aims to tap into the rapidly growing esports market. To achieve this, eSportStars has employed the services of professional esports teams, including JapanKillerAngel, the first professional team in the field that specializes in games like Valorant and PUBG. Other teams include GameWith, specialists in Super Smash Bros and Fortnite, Tekken players, and TeamYAMASA.

Another sharing economy dApp set to be built on TCP in the near future is TimeTicket. The platform will allow users to use ‘time tickets’ to tokenize their business hours. These tickets can be bought and exchanged for various services on the platform such as photography, consulting, relationship counseling, programming, coaching, fortune-telling, and even offering financial advice.

The platform has already tried its services in Japan through a web version of the app and experienced overwhelming success. There are over 250,000 users in the country who are utilizing the TimeTicket web version to share their skills, with some claiming to make as much as $10,000 a month.

Another thing that should be considered in helping the economy recover is by investing in alternatives such as digital assets. It can help create potential income streams, especially for those affected by the increasing unemployment globally. 

Digital Asset Investment

“As the economy is becoming more digital, the role of digital assets in investment decisions will also grow. A new alternative asset market can provide valuable contributions to portfolio allocation: crypto-currencies display high expected returns with large volatilities and at the same time remarkably low correlations with each other and with standard financial assets, allowing for diversification benefits,” according to a discussion paper published in Humboldt University, Berlin.

When it comes to cryptocurrencies, investors can consider DeFi products. DeFi is the hottest sector within the crypto market right now, and over the past few months, the DeFi market has exploded with over $2 billion in Total Value Locked. For those that hold substantial amounts of digital assets and don’t want to sell them, they can lend them on platforms like Kava, Compound and Maker, and earn interest. To choose the right DeFi platform for this activity you can use defiprime.com to analyze the best projects available.

Investing in digital assets offer means of passive income, perfect for those who lost their jobs due to the crisis. Those who are eyeing for other income streams can venture into digital assets, especially if using the right strategy. Certain low-risk strategies do not require much work from investors, such as arbitrage. 

“Arbitrage is the buying and selling of the same asset from different exchanges. Instead of depending on the investment vehicle’s market value, arbitrage takes advantage of the price discrepancies between exchanges. This strategy works well, especially with volatile markets, which can be caused by the recession,” says Andre Gerald, CEO of Prance Gold Holdings, a FinTech-driven investment platform. 

Through investment in digital assets, anyone can help in the recovery of the economy. It also is a great way to generate income amidst all the unemployment trends. With the right strategy, investing in digital assets can be profitable. 

“What arbitrage programs do is to initiate a trade instantly once an arbitrage opportunity is spotted. This offers traders reduced risks and increased profitability of their digital assets,” serial entrepreneur and seed investor of Prance Gold Holdings Jeffrey Guo said.

Bottomline

The current crisis has shifted the way we live our day-to-day lives. It has also opened up a lot of opportunities in the digital space, which can help recover the economy. One way is to promote the digital economy through investment in businesses going or already in the digital space. Another way is to invest in digital assets, which can help ease the economy by providing additional income streams.

Source: https://themerkle.com/how-digital-investments-can-help-the-economy-recover-from-the-coronavirus-pandemic/

Blockchain

TA: Bitcoin Price Back Below 100 SMA, Why BTC Could Retest $45K

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Bitcoin price failed to stay above $50,000 and $49,000 against the US Dollar. BTC is now below the 100 hourly SMA and it is likely to continue lower towards $45,000

  • Bitcoin started a fresh decline below the $50,000 and $49,000 support levels.
  • The price is now trading well below $50,000 and the 100 hourly simple moving average.
  • There is a connecting bearish trend line forming with resistance near $49,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could extend its decline towards $45,000 as long as it is below $50,000.

Bitcoin Price Turns Red

After forming a short-term top near the $52,600 level, bitcoin started a fresh decline. BTC traded below the $51,200 and $50,000 support levels to move back into a negative zone.

There was also a break below a major bullish trend line with support near $49,500 on the hourly chart of the BTC/USD pair. The pair even broke the $48,000 support level. There was a clear break below the 50% Fib retracement level of the upward wave from the $43,050 swing low to $52,650 high.

It is now trading well below $50,000 and the 100 hourly simple moving average. It seems like the bulls are trying to protect the 61.8% Fib retracement level of the upward wave from the $43,050 swing low to $52,650 high.

Bitcoin Price

Source: BTCUSD on TradingView.com

If they fail and the price trades below $46,500, there are chances of more losses. The next key support is near the $45,000 level, below which the bears might aim a test of the $43,000 support zone.

Fresh Increase in BTC?

If bitcoin stays above $46,500, it could correct higher. An initial resistance on the upside is near the $48,000 level. The first major resistance is near the $49,000 level and the 100 hourly simple moving average.

There is also a connecting bearish trend line forming with resistance near $49,000 on the same chart. To move into a positive zone, the price must clear the trend line resistance and then gain pace above the $50,000 barrier.

Technical indicators:

Hourly MACD – The MACD is now gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.

Major Support Levels – $46,500, followed by $45,000.

Major Resistance Levels – $48,000, $49,000 and $50,000.

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Source: https://www.newsbtc.com/analysis/btc/bitcoin-btc-could-retest-45k/

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Blockchain

Analyst tells Tesla to dump Bitcoin for buybacks as shares plunge alongside MSTR’s

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A former equities CIO of Goldman Sachs drew an strong response on Twitter after suggesting Tesla should sell its Bitcoin and buy back company shares.

The price of TSLA shares have fallen 28% from $863.42 to $621.44, since news broke on Feb. 8 that Tesla had made a $1.5 billion BTC acquisition.

MicroStrategy’s shares have fared even worse in the short term. The company, which is headed by Bitcoin bull Michael Saylor and just completed its latest acquisition of $15 million in BTC on Mar. 3, is now down 50% from its all-time high of $1,315 from Feb. 9.

Tesla’s share market woes are likely due to a number of factors. In early February, it was reported that Tesla had been reprimanded by the Chinese government over quality control issues after receiving consumer complaints. The broader stock market has also experienced volatility, with the S&P 500 down 4.1% in the last 30 days. 

But the tweet from longtime Tesla analyst Gary Black, who has several decades of financial management experience, sparked a debate on whether Tesla’s purchase of $1.5 billion in Bitcoin last month had benefited investors.

“I don’t want them buying back stock,” said Twitter user Techgnostik. “I want them investing in growth, and making another billion on their BTC position.”

Black countered by suggesting TSLA would also draw inclusion by more fund managers with a share buyback program, considering it of greater value to the investor than buying BTC “with excess cash.”

Some users on Twitter agreed that a stock buyback seemed to be a more appropriate use of funds, while others felt too much attention was being paid to what Tesla did with 8% of their cash reserves.

It’s not easy to ascertain the impact buying Bitcoin has had on a company’s bottom line. While MicroStrategy’s share price has halved in a month, shares of MSTR are still up 340%, (from $146.63 to $645.66), since the company announced its first purchase of 21,454 BTC on Aug. 11, 2020. The price of BTC is currently up 310% from the same date.

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Source: https://cointelegraph.com/news/analyst-tells-tesla-to-dump-bitcoin-for-buybacks-as-shares-plunge-alongside-mstr-s

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Experts divided on BTC predictions: Bullish or super bullish?

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Despite the current battle between Bitcoin bulls and bears around the $50,000 price mark — and an 8.7% pullback over the past 24 hours — a raft of analysts and commentators have got out their crystal balls to tip a glittering future for Bitcoin prices.

On Mar. 4, Senior Commodity Strategist for Bloomberg Intelligence Mike McGlone pointed to historical data to suggest that Bitcoin is on the way to $100,000.

McGlone’s logic revolves around the growing discount for shares in the Grayscale Bitcoin Trust which is at the same level as last year’s Black Thursday collapse. The discount refers to when shares in the Grayscale Bitcoin Trust trade for less than the value of the underlying Bitcoin (normally they trade at a premium).

Looking at historical data, said that

Twitter user “Lee Hendricks” wasn’t convinced, suggesting the catalyst for Grayscale’s discount could be the result of pressure from upcoming ETFs and other crypto funds. (Although that’s arguably bullish too.)

The Bloomberg strategist isn’t the only expert with high expectations for BTC, with influencer and YouTuber Lark Davis stating on Mar. 4 that “we are just now past the first major price wave,” with two more, larger waves to come.

On March 2, technical analyst Kaleo posted a chart predicting BTC will hit $100,000 near the start of April this year.

It’s a follow-up on his “Bitcoin Halving Reward Era Price” analysis chart two years ago predicting the price would reach $200,000 around mid-2021. He tweeted two weeks ago that he still has faith in it:

“It is by far the most accurate, long-term chart prediction I’ve ever seen for Bitcoin… $BTC will hit $200K+ this cycle.”

Another analyst who goes by the Twitter name MasterChangz, told his 10,000 followers he believes Bitcoin will hit the $200,000 mark even earlier than mid-2021, potentially at the start of April. The next rise, he said, is to $77,000 over the next two weeks.

Other predictions are even bolder with Kraken CEO Jesse Powell stating the cryptocurrency could reach $1 million or even “infinity” in a Bloomberg television interview on Mar. 4, adding that it will eventually become the world’s currency.

“We can only speculate, but when you measure it in terms of dollars, you have to think it’s going to infinity,” he said. “The true believers will tell you that it’s going all the way to the moon, to Mars and eventually, will be the world’s currency.”

Kraken Head of Growth Dan Held, echoed this prediction on Mar. 5, claiming on Twitter that:

“Bitcoin is more likely to hit $1,000,000 than $0.”

Even past Bitcoin skeptics are becoming crypto converts with investment firm Sanders Morris Harris CEO George Ball admitting to Yahoo Finance on Mar. 4 that he believes cryptocurrencies are now “attractive” as a “small part” of any portfolio.

“With the cryptocurrencies, I think there is a fundamental hydra-headed shift that makes them attractive as a part, a small part, of almost any portfolio,” Ball said.

Despite this wave of optimism, history also suggests March could be a bloody month, with Bitcoin’s price falling across the month in six of the past nine years by an average of 5.8%. The most recent of these occurred last year on Black Thursday when the price plunged by 50%. That said, the second-biggest monthly candle in BTC history happened in March 2013, when the price shot up 179%.

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Source: https://cointelegraph.com/news/experts-divided-on-btc-predictions-bullish-or-super-bullish

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