Category: Currencies

Currency is a medium of exchange for goods and services. In short, it’s money, in the form of paper or coins, usually issued by a government and generally accepted at its face value as a method of payment. Currency is the primary medium of exchange in the modern world, having long ago replaced bartering as a means of trading goods and services. Currency is a generally accepted form of payment, usually issued by a government and circulated within its jurisdiction. The value of any currency fluctuates constantly in relation to other currencies. The currency exchange market exists as a means of profiting from those fluctuations. Many countries accept the U.S. dollar for payment, while others peg their currency value directly to the U.S. dollar.

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Currencies

Is Investing in Cryptocurrency a Good Idea?

The market, however, is constantly changing, and today’s top ten crypto coins aren’t the same as they were even a year ago. Some investments fail, while others go on to become the most profitable assets.

Despite the fact that it has been in operation for ten years, no other asset has ever done as well for early investors as Bitcoin. It’s impossible to predict how high each coin will go. Because cryptocurrencies like Bitcoin, Ethereum, and the others featured in this article are very volatile, trading them rather than investing in them can be the most rewarding way to enter the crypto market.

Bitcoin is a payment currency and cryptocurrency that is secured by a complex mathematical formula that is unbreakable. With the launch of Bitcoin, a whole new industry of competing cryptocurrency coins known as altcoins formed.

When Bitcoin hit its all-time high in 2017, it plummeted by 80%, causing many investors to lose money. Instead of losing money, those who chose to short Bitcoin benefited on the way down. It was also lucrative to enter a long position in Bitcoin at the bottom.

Because of its market dominance, first mover advantage, brand strength, and other factors, Bitcoin is frequently regarded as the best and safest cryptocurrency to invest in. Other cryptocurrencies may outperform or eventually replace Bitcoin, making it impossible to determine which cryptocurrency is the best overall.

Source:-

PrimeXBT

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies

Goldman has changed its tune towards Bitcoin “Not an asset class to asset class”

The renowned investment bank remains a sceptic of bitcoin and other cryptocurrencies. While cryptocurrencies like bitcoin have gotten a lot of publicity, Goldman says Bitcoin is “not an asset class”.

The previous Goldman Sachs research was pessimistic about cryptocurrency and stated that it was not an asset class. According to “Goldman Sachs, it was not an asset class because of the following characteristics: –

No cash flows –

No earnings –

Unstable correlations –

High volatility –

Goldman Sachs claimed that the only reason that Bitcoin has value is because other people are willing to buy it. They also compared it to a number of other periods of market euporia.

Goldman Sachs, on the other hand, released a study on May 21st addressing their previous stance that Bitcoin was not an asset class changed. The top of the report is headlined ‘Crypto: a new asset class’ they interviewed Mike Novogratz (CEO of Galaxy Digital Holdings Ltd.). He claims that the institutional adoption we’ve observed will likely continue as long as the macro trends we’ve witnessed persist, he also believes that Defi, NFTs, and payments, all of which are currently built on Ethereum, will drive some of the most interesting growth in the crypto world.

Zach Pandl who is one of Goldman’s top strategists agrees with Novogratz, he believes that the Bitcoin has the potential to become a major global macro play factor. Jeff Currie, Heading commodity research, believes that for cryptocurrencies to be an excellent store of value, it must have applications other than price speculation.

Christian Mueller Glissman, a senior strategist at Goldman Sachs illustrated that even a minor investment to Bitcoin (5%) in a traditional 60/40 bond equities portfolio would have outperformed the market. He claims that this is due to Bitcoin’s relative lack of correlation with traditional assets, despite the fact that this correlation has increased significantly over the past year.

They compared the price increase of crypto with those of other assets throughout the course of the year. What’s shocking is the Goldman Sachs Commodities index’s tremendous surge (refer a link below). This indicates that more inflation is on the way. Report also has a chart that shows the volatility that have had for these assets over the year. Report also illustrated that the year’s volatility for various assets. While cryptocurrency is volatile, it must be weighed against the possibility for profit. As the blockchain becomes more widely used, this volatility is likely to decrease over time. As a result, utility demand rises, boosting the currency’s value. They also demonstrate that the people with the biggest pockets are the ones who are most inclined to “Hold on for dear life” in the long run.

(Snap*)

There’s a reason Goldman has shifted its stance on Bitcoin: their clients are asking for exposure to the cryptocurrency. If they believe it isn’t an asset class, they won’t be able to serve these clients. They’ve even set up internal trading desks that have just completed a derivative linked swap transaction.

Get an access of report – https://www.goldmansachs.com/insights/pages/crypto-a-new-asset-class.html