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Bitcoin Is The First Asset That Enabled Investors To Make 100,000% Gains

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Over the past two decades, the Internet and technology industries have created unimaginable wealth. The Dotcom bubble may have burst almost two decades ago, but the Silicon Valley money making machine is still churning. But there’s an arguable issue here, the growth of modern technologies has further centralized wealth, creating even more drastic wealth disparities. As normal though, that’s where Bitcoin comes in.Related Reading: Co-Founder of Ethereum: Blockchain Will be “More Disruptive” Than Dotcom BubbleThe IPO Frenzy Isn’t All That InnocentJust weeks ago, Lyft, the popular ride-sharing startup that occupies 33% of its respective market, went live on the Nasdaq. Shares of Lyft, denoted by the rather fitting ticker symbol LYFT, have since fallen dramatically (30%), but there have been entities making a copious amount of money throughout all this. These entities, if you haven’t guessed, are venture capital firms.In a private rounds years ago, venture capital firms, like the legendary Andreessen Horowitz (a16z) and Peter Thiel’s Founder Fund, secured shares in Lyft for pennies on the dollar. a16z, for instance, bought 6% of Lyft in 2012 for $4.25 a share. These same shares now sell for $57 on the open market, thus netting a16z over $1 billion. Of course, these investors gave money to Lyft knowing that there was a considerable risk, but millions, if not billions were made with this IPO.The @A16Z Fund III , $900M , 2012 vintage looks pretty goodown 6% of $LYFT, should generate $1.8B in liquidity based on $30B valuation, a 2x on the fundalso own over 5% of Pinterest, which should generate $500M+Based on those two deals, will likely hit 3x DPI— Shai (@shaig) March 28, 2019
The growth of their bank accounts won’t be slowing any time soon.Earlier this month, Beyond Meat, the ‘meat’ company that deals solely in plant-based substitutes, unveiled plans to raise capital through an IPO, as did Zoom, Pinterest, Pager Duty. And Uber, Postmates, Slack, and Airbnb are also expected to release solid plans to go live on American stock markets by 2019’s end.If these IPOs perform as analysts expect, the listing of the aforementioned startups, dubbed by some as the “IPO Frenzy,” will likely be the biggest iteration of private wealth creation ever. Venture capital firms and wealthy financiers will be able to dump their shares en-masse, receiving liquid capital for an illiquid asset they held on to for years.This may sound all well and good, but in the eyes of some, there’s a glaring issue here. As Ben Horowitz, the co-founder of a16z, surprisingly said, the “public market investor doesn’t get access to a lot of the growth, and that just creates wealth inequality.” That’s the thing, by the time mom and pop investors get access to own stake in some of the Bay Area’s biggest names, all the money has already been made.There’s a whole different story with Bitcoin though.Bitcoin Doesn’t Create Wealth InequalityFrom a holistic perspective, Bitcoin is the first asset of its kind… ever. It is a decentralized, non-sovereign, deflationary, and uncensorable form of money confined by the rules of a computer protocol, one which was made by a pseudonymous developer. What’s more important in the context of this conversation, however, is that Bitcoin is the first consumer-available asset that has netted its early adopters over 100,000% (1,000x). In other words, BTC could be seen as a medium for the creation of wealth equality, not inequality.You didn’t have to be a long-standing, recognized Silicon Valley entrepreneur, with a large amount of cash in your bank account to boot, to purchase BTC during its earliest days. All you needed to be was a savvy consumer with an eye for obscure yet revolutionary trends, the mental fortitude not to sell during downturns, and the ability to store coins safely.As seen below in the chart compiled by James Todaro, the managing partner of Blocktown Capital, Bitcoin is one of the highest netting modern assets. But Bitcoin is the only asset that gave those with no accreditation, the majority of investors in America, the opportunity to see a parabolic growth in their wealth.The public was only allowed to invest in Facebook, Uber, Lyft, Twitter, etc after the investors from Series A rounds made between 50,000 to 200,000%. It didn’t matter how smart you were or if you saw this wave coming.No accreditation, no opportunity. pic.twitter.com/YrNy8yaVd9— James Todaro (@JamesTodaroMD) April 28, 2019
Bitcoin appreciating tremendously over the past decade doesn’t null its opportunity to rally parabolically again, however. In fact, what’s ironic is that the money made off the aforementioned trend of Silicon Valley IPOs is likely to be a catalyst for said future growth. As Barry Silbert, the head of Digital Currency Group, noted in late-march, this newfound supply of cash from IPOs, will largely find its way into the hands of cryptocurrency and blockchain names.Featured Image from Shutterstock

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Smart contract platform Fantom chooses Binance Chain for interoperability

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Binance Chain, the blockchain from cryptocurrency exchange company Binance, and DAG-based smart contract platform, Fantom, announced today they will be working together to create a multi-asset and cross chain ecosystem.

The Fantom team said it will be supporting a multitude of tokens including the ERC-20 standard, native Fantom token (FTM) standard, along with the BEP-2 token standard on Binance Chain.

“Our reason for choosing Binance Chain as our interoperability partner over any other blockchain is simple, we’re seeing an increasing trend of great projects moving towards Binance Chain, and we want to contribute to the Binance Chain ecosystem so that all these great projects may garner added value from our contributions. Binance and Binance Chain are in a rare position of having the strongest centralized exchange and liquidity on one end, and a very cohesive decentralized ecosystem on the other end, and we believe that there is no better partner for Fantom in its push for greater interoperability within the industry.”

The Fantom Foundation

The collaboration will offer Fantom users a chance to transact and trade FTM while being in custody of their own tokens on Binance DEX.

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Robinhood Opens Trading for 7 Cryptocurrencies in New York

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Robinhood, the popular stock and crypto investing app, has officially launched bitcoin, ethereum, and other cryptocurrency trading in New York.

Silicon Valley-based Robinhood received a BitLicense from the New York Department of Financial Services (NYDFS) in January 2019 and on Thursday opened access to crypto trading in the Empire State.

From the press release:

Currently, you can invest in seven cryptocurrencies on Robinhood Crypto: Bitcoin, Bitcoin Cash, Bitcoin SV, Ethereum, Ethereum Classic, Litecoin, and Dogecoin. You can also track price movements and news for those and 10 additional cryptocurrencies.

New York is unique and problematic for crypto traders because all purveyors must apply for a BitLicense, most notably for companies that are “storing, holding, or maintaining custody or control of virtual currency on behalf of others,” according to NYDFS.

Many crypto startups have avoided the requirements entirely by becoming BitLicense refugees and refusing to do business in the state.

“Here we are two miles from the Statue of Liberty and you cannot sell CryptoKitties in the state without that license. That’s the absurdity of what’s happened here,” ShapeShift CEO Erik Voorhees complained in 2018 when asked about the controversial license at CoinDesk’s Consensus conference in New York.

Image courtesy of Robinhood

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Generation Bitcoin: 90% of Millennials Prefer Crypto to Gold: ETF Expert

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By CCN: The US investing industry stands on the precipice of a dramatic upheaval that could see bitcoin and other cryptocurrency assets replace gold in investor portfolios.

That’s according to Nate Geraci, president of the ETF Store, an independent investment advisor. He revealed in a Bloomberg TV interview that his millennial clients are clamoring to hold bitcoin in their portfolios – if only the SEC would let them.

Crypto in a Landslide: ETF Expert Says Millennials Plan to Kick Gold to the Curb

Responding to a question from Bloomberg analyst Eric Balchunas about whether he would ever invest client funds in a bitcoin ETF, Geraci stunned his fellow panel members when he said that millennial investors overwhelmingly desire to hold bitcoin instead of traditional hedge assets like gold.

How overwhelming? Ninety percent.

“When we talk to our younger clients – we have a core gold allocation in our portfolios, and they’ll ask about that and say, ‘What about crypto?’ And if you talk to, primarily millennials, and ask them which they prefer, bitcoin or gold, it’s a landslide. It’s not even close, it’s like 90% prefer bitcoin.”

Geraci’s bold claim was more anecdotal than scientific, but there’s plenty of hard data that demonstrates that younger investors are vastly more comfortable with holding cryptocurrency in their portfolios than investors who grew up in the pre-digital era.

In April, a Harris Poll survey found that 18 to 34-year-olds are “very” or “somewhat” likely to purchase bitcoin within the next five years. That might not seem overwhelming, but consider that only 37% of Americans in that demographic currently own stocks.

Similarly, a February eToro survey found that 43% of millennials trust crypto exchanges more than stock exchanges, even though crypto trading platform hacks dominate the mainstream news cycle.

ETF Would Reduce Crypto Investing Risks

bitcoin etf vaneck bitcoin price

ETF Store President Nate Geraci said that there is rabid demand for a bitcoin ETF, especially among millennials. | Source: Shutterstock

Nate Geraci further pointed to the success of the $1.5 billion Bitcoin Investment Trust (OTC: GBTC) as proof that there is sufficient market demand for a crypto ETF.

He noted that the over-the-counter product regularly trades at a staggering premium to the underlying value of its BTC assets. That’s because GBTC shares fluctuate based on supply and demand, not just the price of bitcoin. An ETF, he said, would flatten that premium and thus reduce investor risk.

“It seems a bit incongruent to me that we have that product out there trading, where investors really could get hurt if they don’t understand that premium, but we don’t have a bitcoin ETF.”

“The demand is there,” he concluded.

SEC Kicks the Bitcoin ETF Can Down the Road

Unfortunately for crypto bulls, millennials aren’t the ones manipulating the levers of the Securities and Exchange Commission (SEC), which holds unilateral authority to approve or deny bitcoin ETF applications.

The SEC, as CCN reported, continues to punt on the issue. Last week, the regulatory agency extended its long trend of delaying ruling on cryptocurrency products when it postponed its decision on the VanEck/SolidX Bitcoin ETF to August 19. Most industry insiders expect the SEC to delay the VanEck/SolidX product again, pushing its final ruling until October 18.

Dave Nadig, the managing director of ETF.com, said that he believes the SEC is still in “information gathering mode” but that there is a “reasonable chance” regulators approve the first bitcoin ETF before the end of 2019.

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Ripple Price Analysis: XRP Lost Critical 5000 SAT Support Area – What’s Next?

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Ripple’s XRP has seen a price decline totaling 6% over the past 24 hours of trading, bringing the current price for the coin down to around $0.3754 at press time. The cryptocurrency has lost a further 16% over the past 7 trading days.

This price drop largely is due to the retracement seen in Bitcoin, although XRP also has seen difficulty when priced against Bitcoin.

XRP currently is ranked in 3d place amongst the top cryptocurrency projects by market cap value, holding a $15.89 billion market cap, according to CoinMarketCap at time of publication. 

Looking at the XRP/USD 1-Day Chart:

  • Since our previous XRP/USD analysis, we can see that XRP/USD has fallen further from the $0.39 level, to where it currently is trading at around $0.375. XRP has strong resistance beneath it provided by the 200-day moving average around the $0.3615 level.
  • From above: The nearest levels of resistance lie at $0.3790 and $0.3943. If the bulls can continue further above $0.40, higher resistance can be located at $0.4235, $0.4376 and $0.4617. Above this, further resistance lies at $0.48 and $0.50.
  • From below: The nearest level of support now sits between $0.36 and $0.35. Beneath $0.35, further support is located at $0.34, $0.32 and $0.30.
  • Trading volume has dropped significantly from the average level seen during May 2019.
  • The RSI is in a precarious position as it hovers around the 50 level which indicates indecision within the market. If the RSI drops beneath 50, we can expect XRP/USD to head lower.

xrpusd_may23-min

Looking at the XRP/BTC 1-Day Chart:

  • Against Bitcoin, we can see XRP/BTC has now dropped further beneath the support at 5000 SAT to where it currently trades at press time, around 4850 SAT.
  • From above: The nearest level of resistance now sits at 4910 SAT, 5000 SAT and 5090 SAT. Above 5100 SAT, further resistance exists at 5571 SAT, 5962 SAT and 6000 SAT.
  • From below: The nearest level of support lies at 4731 SAT. Beneath this, further support is expected at 4500 SAT, 4323 SAT and 4000 SAT.
  • Trading volume has also significantly declined toward the second half of May 2019.
  • The Stochastic RSI suggests that price action will head further lower due to a bearish crossover in overbought conditions.

xrpbtc_may23-min

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Ripple Price Analysis: XRP Lost Critical 5000 SAT Support Area – What’s Next?

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Ripple’s XRP has seen a price decline totaling 6% over the past 24 hours of trading, bringing the current price for the coin down to around $0.3754 at press time. The cryptocurrency has lost a further 16% over the past 7 trading days.

This price drop largely is due to the retracement seen in Bitcoin, although XRP also has seen difficulty when priced against Bitcoin.

XRP currently is ranked in 3d place amongst the top cryptocurrency projects by market cap value, holding a $15.89 billion market cap, according to CoinMarketCap at time of publication. 

Looking at the XRP/USD 1-Day Chart:

  • Since our previous XRP/USD analysis, we can see that XRP/USD has fallen further from the $0.39 level, to where it currently is trading at around $0.375. XRP has strong resistance beneath it provided by the 200-day moving average around the $0.3615 level.
  • From above: The nearest levels of resistance lie at $0.3790 and $0.3943. If the bulls can continue further above $0.40, higher resistance can be located at $0.4235, $0.4376 and $0.4617. Above this, further resistance lies at $0.48 and $0.50.
  • From below: The nearest level of support now sits between $0.36 and $0.35. Beneath $0.35, further support is located at $0.34, $0.32 and $0.30.
  • Trading volume has dropped significantly from the average level seen during May 2019.
  • The RSI is in a precarious position as it hovers around the 50 level which indicates indecision within the market. If the RSI drops beneath 50, we can expect XRP/USD to head lower.

xrpusd_may23-min

Looking at the XRP/BTC 1-Day Chart:

  • Against Bitcoin, we can see XRP/BTC has now dropped further beneath the support at 5000 SAT to where it currently trades at press time, around 4850 SAT.
  • From above: The nearest level of resistance now sits at 4910 SAT, 5000 SAT and 5090 SAT. Above 5100 SAT, further resistance exists at 5571 SAT, 5962 SAT and 6000 SAT.
  • From below: The nearest level of support lies at 4731 SAT. Beneath this, further support is expected at 4500 SAT, 4323 SAT and 4000 SAT.
  • Trading volume has also significantly declined toward the second half of May 2019.
  • The Stochastic RSI suggests that price action will head further lower due to a bearish crossover in overbought conditions.

xrpbtc_may23-min

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