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Bitcoin vs Ripple Explainer

Bitcoin vs. Ripple Explainer

Whether you’re new to the world of blockchain technology or are simply looking to sharpen your sensibilities when it comes to distinguishing the market’s key players,

there is always more to learn. Cryptocurrency trading is fueled by hype and that means that new players are always popping up and disappearing. Bitcoin remains the constant staple in this everchanging landscape and also serves as a useful benchmark against which to understand and evaluate other actors. If you’ve got things like a graph of bitcoin price history saved to your bookmarks, there’s a good chance you’ve also encountered the name Ripple. If you are interested to learn how it stacks up against its forebearer, read on to discover the similarities and differences between Bitcoin and Ripple. 

The risk remains the same

One thing to clear up right off the bat is that all cryptocurrencies exist in a volatile and very speculative market. Although a lack of regulations is part of the draw, it also means that anything goes and there are really no guaranteed bets. Ripple and Bitcoin are both parts of this ecosystem, so keep in mind that if you’re thinking about investing in either, or any blockchain cryptocurrency for that matter, you should go in ready to potentially lose your complete initial investment. When it comes to investing in any cryptocurrency, you’d be best to hedge your bets and only put forth capital that you would be comfortable without. 

Ripple 101

When thinking about Bitcoin, most people understand it as a digital currency that can be used to purchase a variety of goods and services in the online marketplace. Therefore, the number one thing to understand about Ripple is that it serves a slightly different function. Simply put, Ripple is a system for currency exchange, payment settling, and remittance that can be used by payment networks and banks to provide higher transparency and security. Unlike Bitcoin, Ripple was never designed to be an independent method of payment. One of the biggest advantages of Ripple is that it allows for a fairly seamless transfer of assets that plays out in near real-time, providing more peace of mind for those involved in the transaction. 

Ripple doesn’t use blockchain

Another important distinction to make between Bitcoin and Ripple is the fact that Ripple doesn’t use blockchain to fulfill its function. Unlike Bitcoin, Ripple works through a network of validating servers and crypto tokens. The tokens are often referred to as Ripples but are formally called XRP. These are the actual cryptocurrency being exchanged in Ripple, which uses a distributed consensus ledger. 

A closer look at XRP tokens

In terms of how Ripple replaces standard settlement systems, it is useful to think of XRP tokens as a replacement for US dollars, which are frequently used as a middle ground currency for exchanging others. Due to established standards of exchange and the regulations in place, using US dollars not only takes considerably more time but is also accompanied by the dreaded currency exchange fees. On top of costing more than most are happy to pay, standard international transfers can sometimes take three days or more to process. Enter the XRP token. Completely supplanting the process, the value of the assets being exchanged are first converted into XPR (as opposed to USD), allowing for fees to be wiped away and the waiting time to be reduced from days to mere seconds. Returning to the Bitcoin comparison, it is worth noting that Bitcoin transactions tend to take around 10 minutes, and although this is certainly less than three days, it is still significantly more than the five-second transaction rate Ripple can achieve. 

Different origin stories 

Unlike the more mysterious emergence of Bitcoin, which is currently maintained by a team of dedicated developers and not tied to any government, bank, or third part, Ripple is more mainstream. Founded in 2012, Ripple was developed by an actual company and had set goals outlined from the get-go. This more standard entry onto the world stage has likely been one aspect that has helped make Ripple more palatable for major financial institutions. Santander and Fidor Bank are just a few of the big names who have said that they are in the process of testing or even implementing various applications of the Ripple Network payment apparatus. 

No mining for Ripple

Another difference that might be hard for Bitcoin enthusiasts to wrap their heads around is that Ripple was not, in fact, designed to be mined at all. An important part of the Bitcoin ecosystem, miners of the cryptocurrency will typically be rewarded for their efforts in the form of a new Bitcoin. Ripple, meanwhile, is pre-mined. There are currently around 38 billion XPR tokens populating the market. The remainder resides in Ripple labs and will be released onto the market in incremental amounts. For further information on Bitcoin payments, check out dchained.

Article Produced By
Globalcoin

https://globalcoinreport.com/bitcoin-vs-ripple-explainer/

Heiko Closhen, Entrepreneur

Bitcoin Mining with MiningJOY: A Perfect Solution to Fight against Inflation

Bitcoin Mining with MiningJOY: A Perfect Solution to Fight against Inflation

Bitcoin has the potential to provide both inflation protection and growth exposure concurrently. Looking for an easy and smart investment solution to invest?

Cloud mining of Bitcoin at MiningJOY.com is the answer for you. This cloud mining provider gained a solid reputation for its convenience, stability, and best of all: transparency of mining-related data. MiningJOY holds dear the philosophy of bringing the most value and benefits of decentralization to its users, providing cloud computing power buyers with a good mining platform and an excellent opportunity to catch the profits that Bitcoin mining can bring!

MiningJOY has a state-of-the-art computing power backup and global decentralized mining farms. The uptime for all miners is over 99%, as you can see from the following screenshot of the backend managing broad, which is developed by its in-house maintenance team consisting of both software and hardware elites. MiningJOY’s advantage features real-time, viewable computing power and transparent bills, a professional operation team hand-selected from a small number of public companies in the IDC industry, and backup computing power reserves to resist greater suspension risks. MiningJOY has multiple mining centers across North America, Northern Europe, Central Asia, and Southeast Asia. The price of computing power on the market has spiked due to huge demand, yet MiningJOY cloud computing power has maintained a low price relative to the market price and has excellent security performance, which serves to better preserve the maximal mining outputs for its clients.

MiningJOY’s mining center with the most advanced miners

Earn passive income with Quadency TRADING BOT. Connect Binance account and use Quadency bot for 6 MONTHS COMPLETELY FREE. Hurry up, this deal is not around for long! MiningJOY boasts large-scale miners based in distributed locations across the globe, equipped with professional operation and maintenance teams, and top-of-the-line miners. MiningJOY provides users with a one-stop efficient cryptocurrency mining service, going beyond merely Bitcoin mining products, which however, constitutes more than 90% of its asset portfolio. In the near future, MiningJOY would be channeling more diversified mining plans for its discerning clientele who like to chase highs with less-dominant cryptocurrencies, such as Ethereum, CKB (Nervos), and more to come.

At present, the MiningJOY platform mainly focuses on Bitcoin mining machines, both for rent and for purchase. They are unlike the majority of cloud mining platforms where clients receive a relatively obscure slip which details just a few parameters, leaving them with no clues about how the payout is composed and how their hashrate/miners are operated. MiningJOY realizes that Ponzi schemes are nothing new in the cloud mining market and provide their customers with as much details as possible about the contents of their order. Many users, after having a bad experience, have lost faith in the possibility of fair mining in the cloud, and thus MiningJOY is ready to plug the leaks in the outdated cloud mining model. Backed by its full-stack management system, MiningJOY is capable of bringing the most authentic mining experience to its clients, which includes:

  • a hashrate pegged to running machines at the ratio of 1:1,
  • no more blanket scams,
  • 24/7 running surveillance video on mining farms,
  • inclusive parameters, and
  • transparent bills.

Unlike most cloud mining services, with MiningJOY, clients get what they actually paid for. MiningJOY was officially launched in June 2019 by Starwin Capital Limited with registry in Hong Kong, which extends to own Type 1, Type 6, and Type 9 Licenses under their belt. This allows them to lay a more substantial foundation for the emerging cryptocurrency-based financial landscape and fintech zeal. MiningJOY’s business now involves two parts: cloud mining services for individual investors and supercomputer server rental hosting service for professional and institutional clients. Currently with MiningJOY’s spot-delivery products, clients will start to receive Bitcoin mining payouts the next day. The prices start with $20.10 (mine until the last minute of your machine’s life expectancy), with the electricity rate as low as $0.052 per kW⋅h. If the price of Bitcoin stays above $11,000, the full-year return of Whatsminer M20s mining contract per terabyte (TB) is expected to be around $30.00, which results in an annual yield of 13.32%. The mini order quantity starts from just 1 TB.

Article Produced By
Torsten Hartmann

Torsten Hartmann has been an editor in the CaptainAltcoin team since August 2017. He holds a degree in politics and economics. He gained professional experience as a PR for a local political party before moving to journalism. Since 2017, he has pivoted his career towards blockchain technology, with principal interest in applications of blockchain technology in politics, business and society.

https://captainaltcoin.com/bitcoin-mining-with-miningjoy-a-perfect-solution-to-fight-against-inflation/

Heiko Closhen, Entrepreneur

Aussie Millionaire Threatens To Sue The Guardian Over False Bitcoin Investment Ads

Aussie Millionaire Threatens To Sue The Guardian Over False Bitcoin Investment Ads


After unsuccessfully battling The Guardian Australia to seize Bitcoin scam ads from appearing on its website,

Australian entrepreneur Dick Smith has threatened to sue the media outlet.Australian multi-millionaire and electronics entrepreneur Dick Smith has threatened to sue The Guardian Australia. Smith has alleged that the trustworthy media outlet has hosted fraudulent ads with fake interviews of him promoting a phony Bitcoin scheme.

Aussie Entrepreneur Threatens The Guardian

Impersonation scams are among the most perilous threats within the cryptocurrency community. Typically, the fraudsters impersonate a famous person and run false ads claiming that he or she has invested in a particular crypto platform that generates substantial returns. In the past, some of the famous individuals that had their names implicated included Elon Musk and Justin Sun. According to a recent report, a similar thing has been transpiring in Australia. The name of local entrepreneur Dick Smith, founder of Dick Smith Electronics and Australian Geographic, has been used in numerous phony success stories. The written interviews ran on The Guardian Australia with text that Smith had made significant ROI by investing in automated Bitcoin trading bots and urged other people to join “before it’s too late.”

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Smith has been trying to fight off the fraudulent ads since the start of 2020.

However, as he has seen little-to-no success, he decided to threaten the major media outlet with a defamation suit. Smith’s legal team has requested The Guardian Australia to update its advertising algorithm to prevent such ads from appearing on its website again. The media outlet has fourteen days to provide a “satisfactory response,” or the legal team will push forward with

the defamation proceedings.

“While we acknowledge that The Guardian Australia does take the fraudulent advertisements down once notified, that does not prevent [its] Australian readers from falling victim to this prolific cryptocurrency scam.” – commented Smith’s legal representative Mark O’Brien.

A Victim Story Of This Particular Scam

ABC Australia reported the story of an 80-year-old pensioner who fell for this scam during the summer of 2020. When seeing Dick Smith promoting this service, the pensioner telephoned the number listed and agreed to invest the first $500. The scammers’ phone calls started coming more frequently and offered impressive returns if the 80-year old allocated even more funds. In six weeks, the unnamed victim transferred more than $80,000. However, he saw none of the promised returns and realized it was a blatant scam. The pensioner contacted his bank to block the account and the police, where he reportedly received an answer that they were too busy to help.

Heiko Closhen, Entrepreneur

Popular Analyst Claims Bitcoin Must Break Above This Level Or Risk Going Downhill

Popular Analyst Claims Bitcoin Must Break Above This Level Or Risk Going Downhill

Bulls Brace For Fireworks As Bitcoin Breaks $10K, What's Fueling the Rally?
After opening the month of October trading as high as $10,923,

Bitcoin has dropped and has since been in consolidation between $10,500 and $10,600. Volatility has reduced significantly since then as the coin has been in consolidation and the price range has been tightening. This is however about to change. An analyst and crypto trader, Josh Rager says that volatility is about to return and Bitcoin may be breaking soon, but in which direction? According to the analyst, a break above the price range of $10,900 to $11,150 will ensure that the price goes upward in a continuing bullish trend. Otherwise, a downward movement below $10,000

may be imminent. 

“Volatility building up. Compression continues for Bitcoin with a potential break coming this week. If Bitcoin can’t break above the zone above ($10,900 to $11,150) on the next impulsive move then Bitcoin likely continues to the downside sub $10k, IMO,”

Bitcoin has managed to stay above the $10,000 level for 70 days in a row now which is a record period that the coin has stayed above this level for so long. According to cryptocurrency youtube channel Altcoin Daily, this is an indication that Bitcoin’s bullish trend remains intact despite the uneventful market conditions as the coin is gaining more popularity in countries such as Venezuela. Another analyst Timothy Peterson had predicted that Bitcoin price would soon stop going below $10,000. Although the digital asset dipped below this price momentarily during the wild price movements that preceded the current consolidation, the 70 days straight above the level could be an indication that Bitcoin has indeed conquered the $10k race.

If this is the case, Bitcoin may be breaking out within the range to ensure its upward movement when it finally does. Worthy of note is the fact that Bitcoin had gone up past $10,700 yesterday for the first time since 1 October. If the upward movement continues, this may be the return of volatility that Rager refers to, and may bring more exciting days than we currently have seen. Meanwhile, altcoins have also followed Bitcoin’s consolidation with most of the top ten in the red for the last seven days. With Bitcoin breaking upward, they may also follow suit or get affected negatively as it usually happens.

Article Produced By
Ponvang Bulus

Ponvang is a cryptocurrency enthusiast, investor and writer. He's particularly interested in trending issues in the crypto space both technical and financial and loves to write about same.

https://zycrypto.com/popular-analyst-claims-bitcoin-must-break-above-this-level-or-risk-going-downhill/

Heiko Closhen, Entrepreneur

BitMEX Now Branded A High-Risk Bitcoin Exchange Following US Government Charges

BitMEX Now Branded A “High-Risk” Bitcoin Exchange Following U.S. Government Charges


The many milestones achieved this week in the crypto community has not erased the ups and downs in the industry.

This month alone, two indictments have rocked the crypto space, and both have included two of Crypto’s high-profile personalities; Arthur Hayes and John McAfee. The arrest of the former CEO of leading cryptocurrency exchange and derivative trading platform BitMEX, along with his co-founders Benjamin Dell and Samuel Reed, has not only left the crypto-community puzzled but has now warranted industry takes to the Seychelles-based exchange.

Chainalysis labels Bitmex a “high-risk” exchange going forward

While some are still worried about how the exchange could remain afloat through the controversy, the real problem might be if and how BitMEX will bounce back, after investors pulled out their investment following the indictment of its executives. In response, popular blockchain data provider Chainalysis is labeling the exchange as “high-risk.” In an attempt to keep its users’ funds safe, Chainalysis warned its clients via email that any form of association with the “high-risk,” exchange, by transferring tokens, will warrant an alert from its Chainalysis monitoring tool. The email reads; “Any transfers from October 1 and later should be considered high risk.”

BitMEX continues to experience significant losses

This month, the exchange saw a 27% drop in overall Bitcoin value on the platform and it appears that with its executives still under arrest, coupled with warnings from these firms, investors could continue to panic while they continue to pull back on their investment. Though the aforementioned is the highest loss the exchange has seen so far, the numbers could more than double in the next few weeks. In a research by Arcane Research, Bitcoin derivatives on the BitMEX network has fallen off by 16% following the charges levelled against the firm. Like Chainalysis, Glassnode is also classifying the platform as risky. Part of the market update from

Glassnode analytics reads ;

“On Friday 2 October, the day after the announcement, BitMEX saw its largest ever day of net outflows as investors rushed to remove their funds from the now-risky platform.”

Meanwhile, the company’s executives, all of whom were arrested last week, are facing up to 10 years in jail. Two charges were filed against Arthur Hayes. The first charge is for allegedly conspiring to violate the bank secrecy act by failing to implement appropriate anti-laundering guidelines in place. The second charge from the Commodity Futures Trading Commission (CFTC) alleges that the company’s executives were “operating an unregistered trading platform and violating multiple CFTC regulations, including failing to implement required anti-money laundering procedures.”  At press time, the future of all the executives is yet to be known. So far, there’s been no statement from either of the executives since their arrest, but what is almost certain is that the next few weeks may not be the rosiest for BitMEX and its existing users.

Article Produced By
Olivia Brooke

Hi, I'm Olivia. When I'm not stressing about my multicolored Chihuahua, I'm reading up on the next big thing that Cryptocurrency has to offer.

https://zycrypto.com/bitmex-now-branded-a-high-risk-bitcoin-exchange-following-u-s-government-charges/

Heiko Closhen, Entrepreneur

Breaking: UK bans sale of Bitcoin Ethereum and XRP derivatives to retail consumers

Breaking: UK bans sale of Bitcoin, Ethereum and XRP derivatives to

retail consumers

Breaking: UK bans sale of Bitcoin, Ethereum and XRP derivatives to retail consumers

The market for crypto-derivatives, e.g. BitcoinEthereumXRP and other cryptocurrencies has taken a severe hit. The UK Financial Conduct Authority (FCA) has banned its trading for retail customers.

In the official announcement, the regulator declared that the above products are “harmful” to consumers for 5 main reasons.

Firstly, the regulator stated that the underlying assets do not have a reliable basis to protect their value.

(Editor Comment: How about letting the Free Market determine the Value instead of Manipulative Regulators as in the Fiat currency market.)

Second, the FAC believes that abuse, illegal activities and financial crime are widespread in the secondary crypto market.

(Editor Comment: Abuse, illegal activitties and financial crime have been widespread in Fiat Currencies forever. How about banning them? (Coming soon) )

In addition, the FAC argues that cryptocurrencies are extremely volatile and that end-users “do not have a sufficient understanding” of the underlying assets.

(Editor Comment: The Stock Market can be extremely volittile and many end-users have little understanding of the underlying assets.)

Finally, the FCA claims that investing in derivatives of cryptocurrencies is “harmful” investment.

(Editor Comment: Harmful to who? The Regulators because they don't have manipulative conttrol?)

The regulatory authority states:

These features mean retail consumers might suffer harm from sudden and unexpected losses if they invest in these products (…) which includes well-known tokens such as Bitcoin, Ether or Ripple (XRP). Specified investments are types of investment which are specified in legislation. Firms that carry out particular types of regulated activity in relation to those investments must be authorised by the FCA.

UK’s FCA targets Bitcoin, Ethereum and XRP derivatives

The UK regulator claims that the ban on crypto derivatives will save UK consumers around £53 million a year.

(Editor Comment: It will also keep the UK consumers that have made profits from receiving them.)

In addition to the ban, the FCA has determined to prohibit the distribution and marketing of any derivatives to UK consumers. Specifically, the FCA mentions the following derivatives: options, futures, contracts for difference (CFDs), and exchange-traded notes (ETNs).

The measures apply to companies and firms “operating within or outside the United Kingdom”. The Executive Director of Strategy and Competition for the FCA, Sheldon Mills, stated:

This ban reflects how seriously we view the potential harm to retail consumers in these products. Consumer protection is paramount here.

(Editor Comment: This ban reflects how seriously they view manipulative Control over consumers. Regulator's Manipulative Control is paramount here.)

Significant price volatility, combined with the inherent difficulties of valuing cryptoassets reliably, places retail consumers at a high risk of suffering losses from trading crypto-derivatives. We have evidence of this happening on a significant scale. The ban provides an appropriate level of protection.

(Editor Comment: This ban provides nothing except Regulator Control over the UK cittizens.)

According to the FCA’s announcement, the prohibitive measures will take effect from 6 January 2021. The regulator has asked companies and firms that trade in crypto derivatives to stop their operations before this date. In the meantime, the regulator advises investors to “stay alert” for crypto-scams. From now on, they qualify all companies offering crypto derivatives products to retail consumers as “possible scams”.

(Editor Comment: It takes one to know one.)

In a separate document, the FCA also clarified that its measures will affect firms that issue or create crypto derivatives, firms that distribute them (brokers, financial advisors, and investment platforms), marketing firms that reference the referred derivatives, traders, consumers, and retail consumer organizations. With regard to consumers, the FCA states:

Retail consumers with existing holdings can remain invested following the prohibition, until they choose to disinvest. There is no time limit on this, and we do not require or expect firms to close out retail consumers’ positions unless consumers ask for this.

(Editor Comment: Fascism Marches On in the UK.)

 

(Editor Note: this Post is based on information collected by Reynaldo of Crypto News Flash)

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Heiko Closhen, Entrepreneur

Bitcoin Halving: How the Miners are Faring So Far

Bitcoin Halving: How the Miners are Faring So Far


On May 11, 2020, Bitcoin successfully executed its third block reward halving.

Bitcoin halving events usually occur every four years, and the first and the second events took place in 2012 and 2016, respectively. Since miners’ rewards for verifying blockchain transactions are usually trimmed by 50% following a halving event, past events have forced miners to adopt numerous changes to cater for the drops in profitability. What about the recent halving event? How have things unfolded for miners this time around?

Mining Inefficiencies

One obvious impact of a halving event is the reduced revenues miners receive. To remain profitable, miners are expected to increase their operational efficiencies, and one probable way of doing so is shifting to new mining equipment with more hashes per second and reduced power consumption. According to Ramak J Sedigh, Pouton Mining’s CEO, miners who are still using old generation equipment may be forced out of business unless the price of Bitcoin reaches an all-time high after the May 11 halving.

Price Didn’t Move As Expected

While it was expected that the third halving would have a significant negative impact on Bitcoin prices given that it occurred during the COVID-19 chaos, it was actually eventless. On the contrary, the prices have continued to climb. And because of the BTC price stability, more investors may even be lured to mount for bullish positions in the coming months.

Mining Difficulty Adjustment

BTC blockchain usually adjusts mining difficulty after every 2016 blocks following a drop or rise of the hash rate. So, when some miners close shop due to reduced block rewards, the BTC mining difficulty is also expected to automatically adjust to cater to block interval movements. Over the years, this mining difficulty adjustment has prevented a potential cascade of miner capitulation, and this is what’s expected to happen after the third BTC halving.So, How Exactly Are Miners Faring and Where Do They Go From Here?

What we have witnessed so far is a mini death spiral scenario. While revenues have been reduced and some miners forced off the chain, there is still some light at the end of the tunnel:

  • BTC price has continued to rise.
  • The cost of transaction fees is increasing, thanks to network congestion. Higher transaction fees translate to more revenues for miners.
  • Power costs are expected to go down with the onset of the monsoon season in China.

Should miners’ revenues reduce further, there are still other steps they can leverage to stay afloat. For instance, they can scale up colocation services and earn extra revenue from hosting and power fees. They can also upgrade their equipment to lower potential exposure to price actions.

Some of these strategies were discussed in the recent online conference organized by Terracrypto on May 19, 2020. They made some valid points that are noteworthy, such as the fact that the hash rate distribution could be another option for increasing mining earnings after the recent Bitcoin halving. This method could allow miners to get higher earnings per tera hash even after the halving. At this point, only the miners will have to deal with this new development. Bitcoin brokers, such as Tenkofx, and traders will continue their daily routine with the hope of taking advantage of the situation. Even if the profitability of BTC mining reduces after the third halving event, the hash rate may not experience significant hikes. That said, the stability of BTC price in the coming months and the ability to adopt efficient equipment will be key to ensuring that the mining business remains profitable.

Article Produced By
Bill Adams

Bill Adams has been into currency trading for over 5 years. After taking a short course about Forex and Cryptocurrency, he decided to put his knowledge to good use as a writer and trader at Tenkofx. His educational background in Business Administration and Economics has given him a broad base from which to approach Forex and Cryptocurrency topics.

 

https://cryptocurrencynews.com/bitcoin-halving-miners-faring/

Heiko Closhen, Entrepreneur

ADVN Stock Exchange: Bitcoin May Surfer Major Price Crash before November

ADVN Stock Exchange: Bitcoin May Surfer Major Price Crash before November  

Heiko Closhen, Entrepreneur

Former Goldman Sachs VP: There Is No Government Printing More Bitcoin’

Former Goldman Sachs VP: There Is ‘No Government Printing More Bitcoin’


On Thursday (October 1), Jason Urban, the CEO of DrawBridge Lending and a former trader at Goldman Sachs, explained during an interview how both gold and Bitcoin can protect investors against increases in volatility.

According to his bio, Urban holds a BS/BA Finance and Marketing from Georgetown University and an MBA from University of Chicago Booth School of Business. Between 2000 and 2009, he “ran the Goldman Sachs equity volatility market making business.”  On Thursday, David Lin of Kitco News, spoke with the former Goldman Sachs trader about gold, Bitcoin, and stocks. Lin started the interview by asking Urban if he had at any time during his career seen so much volatility.

Urban replied:

“No, never, and I [was] trading through the 9/11 era, 2007-2008, MF global imploding… there were stresses but nothing like this, and this is why I take the defensive stance because what we’re currently seeing is really truly unprecedented and we haven’t gotten completely through the snake so to speak yet… we don’t know what the knock-on effects are, when rent moratoriums are or eviction moratoriums are lifted, if they’re ever lifted, how is all that going to play out and what we’re going to be the knock-on effects.” Lin then asked Urban why is this time even worse than the Great Recession. Urban replied: “Well, I think, because in 2008, it was a banking crisis. It was concentrated in a handful of people.

“Now, you’re seeing a broader crisis. When unemployment levels are where they’re at, when large segments of the population are out of work with no hope of going back to work, that’s going to change spending habits, that’s going to be change consumption habits, you know, all of those things are going to be different. “In 2008, people were worried about losing their homes or their second homes or the third homes or things of that nature. Now, you have people who don’t know necessarily if the stimulus check doesn’t come, where their next meal is coming from, and I think that kind of fear changes behaviors across, you know, everything. So what are the defensive assets that Urban likes at this time? Urban likes traditional hedges such as silver and gold, but he also likes Bitcoin and other cryptoassets that can serve a similar purpose. According to him, gold and Bitcoin are quite similar:

“I think the the biggest thing to look at it as a fixed finite supply similar to gold. It’s scarcity is similar and so because of that there there isn’t a party or a government actively working to devalue it and so from that standpoint I look at that and say that they’re very similar…“With the dollar, if you just held cash in your bank account, there’s always the inflationary spectre that the government starts to print more money, but there’s there is no government printing more gold and there definitely is no government printing more Bitcoin.” As for Bitcoin’s price volatility, Urban says that although Bitcoin’s historic volatility is much higher than that of gold, it is worth remembering that the “store of wealth factor works kind of in both ways,” meaning that Bitcoin’s higher volatility could also help it go up a lot more than gold:

“And so if you normalize that and look at just the traditional characteristics of that asset in terms of a fixed finite supply, it certainly has a lot of the same characteristics as gold. Being more volatile is one of the areas where it deviates but if it was exactly like gold, there would be no need to hold both gold and Bitcoin. Urban believes that Bitcoin, just like gold, can be used to hedge against both inflation and the U.S. dollar: “As someone dealing in the institutional space, the same people that I see buying gold and other precious metals are also buying Bitcoin, and they’re doing it simultaneously, and they’re doing it in equal amounts currently. So from that standpoint, the people who are transacting and kind of driving price and dictating levels are looking at in a very similar way as well.”

Urban then explained what’s makinghim be more defensive than cyclical these days: “I look at the defensive in terms of we have an election coming up. Obviously, that will impact where money is spent, not necessarily the amount of money that’s spent. “I think it’s become pretty clear that regardless of which party is in power, there will be spending, and so from that standpoint, not really knowing where to place your bets tells me to be defensive in that in terms of what’s happening on a global stand, on a global basis, it’s a very similar concept… So given that volatility, given that uncertainty, I think it’s better to preserve wealth before you end up losing well.” Finally, Urban said that as far as asset allocation is concerned, he would put 5-7.5% in physical gold and gold mining stocks, and 5% in Bitcoin and/or other digital assets.

Article Produced By
Siamak Masnavi

Siamak received his PhD in Computer Science from University of London in 1992. He has worked part-time as a freelance journalist since 1986.

https://www.cryptoglobe.com/latest/2020/10/former-goldman-sachs-vp-there-is-no-government-printing-more-bitcoin/

Heiko Closhen, Entrepreneur

Bitcoin Whale Issues Big Warning to Traders Here’s Why He Believes Group of Crypto Assets Are at Risk From Regulators

Heiko Closhen, Entrepreneur