• Bitcoin’s Low Correlation With Other Asset Classes Aids as a Portfolio Hedge

    Cryptocurrency exchange Binance recently released a research report that looked at Bitcoin’s limited correlation with other asset classes and its significantly high volatility. Bitcoin has recorded soaring volatility over the past ten years, especially in 2017, when the price of Bitcoin hit an all-time high of $20,000 from a low of $700, indicating a rate of return of about 27,000% in just 12 months. Such instances that indicated the volatility of the coin have allowed people to brand the coin as a highly unstable and risky investment. However, the research suggested that the price volatility of the coin has been subsiding from the time of the genesis block. Additionally, a correlation analysis, which indicates a statistical measurement between multiple assets aiming to study their relationship, was also conducted. According to the analysis, Bitcoin exhibited a low correlation with other asset classes like gold, silver, oil, etc. The price changes of various assets along with Bitcoin at different time spans was also disclosed in the research. The first chart indicated a “three-year weekly return correlations among asset classes”, The second chart illustrated the…

    Aug 5, 2019
  • Why Should Ordinary People Allocate a Few Digital Assets?

    On July 28, Aurora, Vice President of ZB Group, attended the financial innovation forum of the First Taiwan Blockchain Week. When talking about impact of trade conflicts between China and the United States, Japan and South Korea on digital currencies, Aurora said, “It may trigger investor concerns about tax increases, interest rate cuts and inflation. Risk aversion will prompt more investors to invest their money in digital currencies field. ” In terms of asset allocation that many people care about, Aurora believes that there are three advantages to allocate digital assets. One is to hedge macroeconomic risks; The second is to control the property ownership in own hands through the decentralized structure of blockchain; Third, there is still considerable room for growth and appreciation of digital assets. For the three advantages Aurora said, I think there is a certain reference value. So, I will take Bitcoin as an example and briefly analyze it. Hedge macroeconomic risks Bitcoin is the most reliable hedge against Venezuela’s hyperinflation. Trade Economics stated that the central bank’s statistics showed that the Venezuelan economy shrank over twenty-two percent (22.5%) at the end of 2018…

    Jul 31, 2019
  • Circle CEO Allaire to Congress: Treat Crypto as a New Asset Class

    Crypto will take center stage on Capitol Hill for the second time in as many weeks when the U.S. Senate Banking Committee convenes Tuesday to discuss current and potential regulations. Jeremy Allaire, CEO of Circle, will testify as a representative of the Blockchain Association trade group. He will be joined by University of California at Irvine School of Law professor Mehrsa Baradaran and Congressional Research Service specialist Rebecca Nelson. The hearing is set to examine the regulatory questions around the industry and should be fairly broad, unlike the hearings on Facebook’s Libra project earlier this month. “It’s going to be a discussion about the broader industry and what are the regulatory challenges and what can the U.S. be doing better, so I’m pretty optimistic,” said Kristin Smith, head of the Blockchain Association. In his prepared remarks, Allaire calls for Congress to treat digital assets as its own asset class, as current regulatory burdens may make it difficult for U.S. companies to conduct business. “Being a law-abiding U.S. citizen should not put U.S. companies, or U.S. industry, at a disadvantage in the development of…

    Jul 30, 2019
  • SEC Releases Draft Rules on Digital Asset Trades

    The Securities and Exchange Commission (SEC) is seeking comments from the industry on its draft digital asset exchange rules, as the regulator aims to keep up with the latest developments in information and communication technology and their financial market applications. The proposal, which is broken down into 10 articles — many with multiple chapters, is now available for comment from exchanges, broker-dealers, investment houses, the investing public, and other interested parties. The SEC will wait for comments up to Aug. 14. The proposed “Rules on Digital Asset Exchange” (DAE) primarily govern registration and operation of an exchange in which digital assets are traded on a online platform accessible in or from the Philippines. “Digital asset” vests certain rights, including digital representation of value that is used as a medium of exchange, unit of account, or store of value and is not legal tender, whether or not denominated in legal tender, the SEC said in the draft. It is intended to represent assets such as debt or equity in the promoter; or otherwise intended to represent rights associated with such assets;…

    Jul 22, 2019
  • G20 Leaders Issue Declaration on Crypto Assets – A Look at Their Commitments

    The G20 leaders jointly issued a declaration on crypto assets at the end of their summit in Osaka, Japan.

    Jul 2, 2019
  • G20 Starts Crypto Discussions – A Look at Global Standards

    Finance ministers and central bank governors from the G20 countries have gathered for a two-day meeting ahead of the G20 summit, and cryptocurrency is among the topics of discussion. Global standard-setting bodies have submitted their policies and provided tools to help the member countries with the regulation of crypto assets in their own jurisdictions.

    Jun 10, 2019
  • CFTC Chair: Bitcoin Crypto Asset Could Have Thwarted the 2008 Financial Meltdown

    United States Commodity Futures Trading Commission (CFTC) Chairman J. ChristopherGiancarlo believes that blockchain and cryptocurrencies would have enhanced the regulator’s response to the 2008 financial meltdown.

    Jun 6, 2019
  • Australian Securities Watchdog Updates Guidance on Crypto Assets

    The Australian Securities and Investments Commission (ASIC) has issued updated regulatory guidance for businesses involved with ICOs and crypto assets. Announced Thursday, the guidance details the legal obligations for cryptocurrency firms under the country’s Corporations Act, the ASIC Act and other laws. “These regulatory requirements are in place to maintain the integrity of Australia’s financial market and ensure consumer protection,” the regulator said. ICOs and crypto assets in many cases are financial products or involve financial products that are regulated under the Corporations Act, according to ASIC. Therefore, if a firm is issuing a token that falls within the definition of a financial product (such as an interest in a managed investment scheme or a security), laws will apply, including the requirement to hold an Australian financial services (AFS) license. Laws also cover those giving advice, dealing, or providing other intermediary services for crypto-based financial products. Cryptocurrency wallet and custody service providers, on the other hand, need to ensure they hold the appropriate custodial and depository authorizations. Cryptocurrency miners, if assisting the clearing and settlement of tokens that are financial products, are also…

    May 31, 2019
  • Crypto Assets Outshine Most Traditional Investments in 2019

    2019 has been an entirely different story, however, as digital assets have started to gain significant value in comparison to traditional assets like stocks, oil, and precious metals.

    May 29, 2019
  • Israeli Court Rules Bitcoin Is an Asset

    An Israeli court has ruled that bitcoin is an asset, confirming the central bank’s stance.

    May 22, 2019
  • The Dawn of the Digital Asset: How Bitcoin Welcomes the World to a New Crypto-Centric Era

    The crux of this article will seek to provide some insight as to how it works exactly.

    May 20, 2019
  • Entropy of Cryptocurrency

    Experts predict that if the blockchain industry is able to move beyond the current phase of speculation and volatility, and build more institutional structures, crypto assets have the potential to play a pivotal role in the future of finance.?

    Apr 10, 2019
  • Russia Quietly Removes All Cryptocurrency, Smart Contract and Token Mentions in Digital Assets Bill

    The bill, which is focused on how to regulate digital assets in the country and in the creation of some sandbox for their development in Russia, all mentions to three terms: cryptocurrencies, tokens, and smart contracts, were completely removed from the text.

    Mar 26, 2019