Legendary Investor Bill Miller: ‘Bitcoin Could be Rat Poison’ But ‘Cash is the Rat’

Legendary Investor Bill Miller: ‘Bitcoin Could be Rat Poison’ But ‘Cash is the Rat’

The Ongoing Trickle into Bitcoin Will Become a Torrent as BTC is “Very Early in Adoption Cycle”

According to veteran investor Bill Miller, Warren Buffett would be right in calling Bitcoin “rat poison” but in this case, rats could be cash.

Miller’s latest bullish comments on the digital asset came in his 4Q 2020 Market Letter which was released on Tuesday.

The renowned billionaire first announced his support for Bitcoin in November when he said “it’s staying power gets better every day.”

At the time he predicted that every major bank and high net worth firm is going to eventually have some exposure to Bitcoin BTC 7.50% Bitcoin / USD BTCUSD $ 36,852.98
$2,763.97 7.50%
Volume 74.67 b Change $2,763.97 Open $36,852.98 Circulating 18.59 m Market Cap 685.2 b
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The fund manager while sharing a few thoughts on Bitcoin noted this time that the world’s largest cryptocurrency has been the best performing asset category in 2020. With its more than 50% gains since the middle of December, Bitcoin surpassed JPMorgan and Berkshire Hathaway in market capitalization, he wrote.

“It has outperformed all major asset classes over the past 1, 3, 5, and 10 years,” wrote Miller adding that “yet it is still very early in its adoption cycle.”

According to him, the policy the Fed is pursuing has an objective to have investments in cash lose money in real terms for the foreseeable future. And he thinks the market is “underestimating the risks of inflation” because as the economy becomes more normal and consumption will accelerate, so will the money velocity.

This money printing led the likes of PayPal and Square to jump on Bitcoin, both of which alone estimated to be buying on behalf of their customers all the 900 new bitcoins mined each day, reads the letter.

It further notes that not only Bitcoin beats cash, but digital gold has many advantages over the yellow metal. Miller wrote,

“If inflation picks up, or even if it doesn’t, and more companies decide to diversify some small portion of their cash balances into bitcoin instead of cash, then the current relative trickle into bitcoin would become a torrent.”

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Author: AnTy

Greenpro Capital to Invest $100M in Bitcoin; Will Replace Cash With BTC on Balance Sheet in Q1

Greenpro Capital to Invest $100M in Bitcoin; Will Replace Cash With BTC on Balance Sheet in Q1

Greenpro “fully believe in BTC as a store of value” and sees other crypto-assets like ETH as a better return option. Bitcoin investments have become the way to pump the company shares in 2020.

The Kuala Lumpur headquartered Nevada corporation, Greenpro, has announced its intention to set up a Bitcoin Fund for investment. The company will use its subsidiary, cryptocurrency exchange CryptoSX, to acquire its BTC stake.

The decision to launch a Bitcoin fund has been made in the light of the ongoing mass adoption of BTC by banks, hedge funds, insurance companies, and institutions, said the company in its official announcement.

Greenpro also believes that Bitcoin, the world’s most widely-adopted cryptocurrency, is a reliable store of value as such the company’s crypto strategy will produce significant value to the company.

The company not only has a belief in BTC but also other cryptos like Ethereum which by providing better returns, preserve the value of their capital as such a better option than holding cash in their balance sheet.

This year first MicroStrategy, which has invested more than a billion-dollar in BTC as a reserve asset, and then Square with its $50 million investment has given value to BTC as a replacement to cash as a reserve asset. Greenpro CEO CK Lee, who recently received an Honorary Ph.D. in Finance and Cryptocurrencies from Rivera University located in France said,

“We fully believe in BTC as a store of value. I’ve instructed our investment bankers to raise debt in Q1, 2021 of up to US$100 million to invest in BTC. The Company will also invest its own cash into BTC.”

In response to the news of Bitcoin investment, the shares of Greenpro Capital jumped 133% in pre-market on Monday. After going as high as $2.41, a price level that was last seen in October of this year, GRNQ shares have settled around $1.87 for now.

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Author: AnTy

Bitcoin Cash Node (BCHN) in the Lead with 123 Blocks Following the Hard Fork Chain Split

The Bitcoin Cash Network, a hard fork of the largest network Bitcoin, has yet again split into two new Blockchains.

Out of the total hash rate, Bitcoin accounts for the majority at 98.1% while Bitcoin Cash has a share of 1.2%, and a mere 0.7% goes to mine Bitcoin SV, which was the result of the hard fork from Bitcoin Cash in Nov. 2018.

During this upgrade, Bitcoin Cash ABC (BCH ABC) received no hash power making it possible for Bitcoin Cash Node (BCHN) to become the dominant software of the Bitcoin Cash network.

BitMEX’s research arm said there are no two chains because BCHN produced three blocks after the split, and not a single one was produced by BCHA.

But Bitcoin ABC took to Twitter to share that Bitcoin Cash blockchain has split into two chains, and now there are two separate coins called BCHA and BCHN. As such, people who owned Bitcoin Cash before the split now own both of those coins.

All of this has been because Bitcoin Cash went through a hard fork on Nov. 15 at 12:00 UTC, which has been contentious.

It is a regular thing for the Bitcoin Cash network, which undergoes an upgrade every six months. If the community is unable to meet consensus, the chain splits, which is what happened when BSV came into existence and exactly what’s happening this time as well.

This time, the upgrade also included a controversial new “Coinbase Rule,” which requires 8% of mined Bitcoin Cash to be redistributed to Bitcoin ABC to fund protocol development.

This was opposed by another group who removed this “miner-tax” from their source code.

With the last common block between the BCHN & BCHA networks now mined by Antpool, the chains have split at height: 661,647.

The BCHN chain is currently 123 blocks ahead.

Bitcoin Cash Hash Rates by Network Summary
Source: Coin.Dance

Even before the fork, 80% of the miners supported it, and some major crypto exchanges also announced support for BCHN.

With hash power in BCHN’s favor, if BCH ABC doesn’t attract enough hash power, the blockchain may just disappear.

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Author: AnTy

Cash App Blocks a Bitcoin User’s Access to Account with No Explanation

Bitcoin proponent Twitter CEO Jack Dorsey’s Cash App seized the funds of a user who was using it to buy Bitcoin.

The crypto user took to Twitter to share their grievance that they have been a user of the app for years to buy “thousands of dollars worth of Bitcoin” and convert it into fiat.

This happened while Bitcoin is enjoying a rally; today, it surged $15,000, up more than 100% YTD.

According to the app user, he wasn’t “engaged in any shady activity,” but Square’s Cash App reversed his withdrawals and took all his money, over $1,000.

“After a recent review of your transfer of funds, we detected the use at Cash App for activity in violation of Cash App, Terms of Service. As a result, you will no longer be able to use Cash App to send or receive payments,” said the message from Cash App’s email support. It further read:

“We are also exercising our discretion under Sections 4 and 5 of the Cash App Terms of service in the decision to block or reverse your transfer of funds.

For security reasons. Unfortunately, we cannot provide more details regarding our decision.”

As per the company policy, in peer-to-peer money transmission service, fraudulent transactions may result in the loss of funds with no recourse at all.

The crypto community voiced against this move, with Samson Mow, CSO of Blockstream, pointing how “This can and will happen with every custodial service; it doesn’t matter if their CEO is nice or supportive of Bitcoin.”

Miles Suter, Square’s cryptocurrency expert, then responded that it was all a mistake, and the issue has been resolved.

“There was a mistake made here. Your account should be in good standing, and your withdrawal is not going to be reversed,” said Suter.

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Author: AnTy

Apple Can Buy 145k Bitcoin With Just 1% Of Its $191 Billion of Dollars Held in Cash

Apple has a total of $191.83 billion cash on hand, down from quarter third of 2020, when it was $193.8 billion. Apple is known for having one of the largest cash piles among the companies.

At Bitcoin’s current price of $13,300, if the tech giant Apple, hypothetically, decides to buy as much BTC as it can with the cash on hand, it can gobble up 14,423,308 BTC.

Currently, 18,529,856 BTC is circulating in the cryptocurrency market.

This represents 88.24% of Bitcoin’s total 21 million supply but doesn’t include millions of coins lost forever.

Apple is the biggest asset by market cap of $1.9 trillion, while Bitcoin is just 13% of this with a $246 billion market cap at 21st place.

Follow in the footsteps of MicroStrategy

When it comes to other tech giants, Microsoft had $137.98 billion at the end of its fiscal first-quarter. In comparison, Google and Amazon had $121.08 billion and $71.77 billion, respectively, at the end of the second quarter.

With so much money sitting in cash and short-term investments at these big companies, it has captured the crypto community’s attention, especially following publicly listed MicroStrategy and Square replacing a portion of that with Bitcoin.

“Apple’s cash is decreasing in value. Perhaps they should follow in the footsteps of MicroStrategy and test the waters with even 1% percent in BTC,” wrote one trader.

Even with just 1% of its investment, Apple can buy 144,233 BTC.

MicroStrategy was the first one, and since then, others have come forward to announce Bitcoin as a reserve asset as a hedge against the debasing US dollar. MicroStrategy CEO Micahel Saylor actually revealed this week that he personally owns 17,732 BTC and has been running a full node of Bitcoin Core version 0.20.1 for over a month now.

Bitcoin is at the early stages still, and in 2020 it sees increasing adoption with PayPal, JPMorgan, and billionaire investor Paul Tudor Jones all feeling its effect.

Compared to gold’s trillion market cap, this digital gold is just starting and has a long way to go.

“We’ve talked about $5T of cash sitting in public company corporate treasuries. What hasn’t been talked about is the $8.5T sitting in sovereign wealth funds, i.e., ‘the wealth of nations’ Their exposure to bitcoin is zero, their optimal portfolio will require it,” said on-chain analyst Willy Woo adding to the hopium.

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Author: AnTy

Coinbase Now Allows Instant WIthdrawals via Mastercard & Visa Debit Card

San Francisco-based Coinbase is now allowing instant cash withdrawal through Mastercard and Visa debit cards.

“Don’t wait days for your cash when you need it now,” it says.

In a move towards the defining characteristics of crypto, transacting instantly, and anywhere, anytime that is curbed by the traditional banking system, Coinbase is offering instant withdrawals in about 40 countries.

These instant withdrawals will cost US customers a 1.5% fee (minimum $0.55), while for the UK and European customers, it is up to 2%.

Coinbase product manager Eddie Lo shared that customers in the US, UK, and Europe can withdraw funds with a linked Visa debit card with US customers allowed through Mastercard as well.

“The ability to easily spend, send, and receive crypto is critical to growing the cryptoeconomy, so we’ll continue building even more ways for our customers to access and use their crypto on Coinbase,” said Lo.

Using Visa to convert crypto balances into fiat means it can be spent at more than 60 million merchant locations while providing “faster, simpler and more connected experience” for Coinbase users, said Terry Angelos, SVP and global head of fintech, Visa.

Customers have the option to select between standard or instant withdrawal methods.

According to Sherri Haymond, executive vice president, Digital Partnerships at Mastercard, today’s digitally driven consumers want real-time payment options, and Mastercard will help them achieve “greater flexibility and convenience” in converting their cryptocurrency into fiat currency.

Also Read: Coinbase Pro to Pass the Rising Network Fees Onto The Customer

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Author: AnTy

Another Fork of the Fork? Bitcoin Cash Upgrade Coming in November

Bitcoin ABC and its lead developer Amaury Sechet are forking Bitcoin Cash now, according to BCH proponent Roger Ver.

“Bitcoin ABC and @deadalnix have announced that they are forking away from #BitcoinCash on Nov 15th. We wish them good luck with their new coin and thank them for the free airdrop to all BCH holders,” tweeted Ver.

Ironically, November 15th is also the day when Bitcoin Cash (BCH) was hard forked into Bitcoin SV (BSV) back in 2018.

However, it is just an upgrade, as a month back, Sechet published an update about Bitcoin ABC where he talked about making primary improvements such as a new Coinbase Rule and change to the Difficulty Adjustment Algorithm to the blockchain.

“The addition of this new rule represents a significant step. […] node implementations, have developed a financial reliance on powerful interests such as mining corporations, venture capital funds, and angel investors,” read the blog.

Ver’s reaction came following Bitcoin ABC’s 0.22.1 release, which will activate the new coinbase rule, diverting 8% of all newly minted BCH to a development fund on Nov. 15.

Cointext CTO Vin Armani, who sees a split to be a more desirable outcome than infighting, says the most important thing about the event is that “there will finally be a Bitcoin network, with the roadmap necessary to become peer-to-peer cash at a global scale, that doesn’t include vocal and influential humans who believe you can fund such a project with donations.”

He further shared that the vocal people in the council have cryptographically proven that they are major miners and holders in the network, and their incentives are aligned with increasing the value of the network. If these influential people get “overthrown,” it will be by those with an even greater stake.

In the Bitcoin Cash network, Bitcoin ABC has 533 nodes (42%), while BCHN’s 126 nodes represent just a 10% share in the network’s 1,260 total nodes.

Bitcoin Unlimited (BU) implementation that has the largest share 44%, with 565 nodes, however, is opposed to the coinbase rule. And if BU and BCHN come together, they can reject the November upgrade.

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Author: AnTy

The Herd is Coming: Software Startup Snappa Converts its Cash Reserves into Bitcoin

It has started!

MicroStrategy invested $250 million, and then Tahini’s converted all of their cash reserves into Bitcoin. Now, the graphic software startup, Snappa, is replacing 40% of its cash reserves with the largest digital asset.

In the official company blog, the co-founder of Snappa, Christopher Gimmer, who is a finance major with a minor in economics, shared that they decided to diversify in bitcoin because of the fear of inflation.

The massive amounts of quantitative easing along with fiscal stimulus, that he expects the governments to keep doing more of, will result in currency debasement and a loss of purchasing power.

As such, “in order to hedge this risk, we’ve chosen to adopt Bitcoin as a primary reserve asset on our balance sheet.”

Like a true Bitcoiner, Gimmer emphasizes the scarcity of the digital asset, which, unlike fiat, will get more scarce over time. He also sees BTC hitting $100k by the end of 2021 as “fairly realistic,” thanks to its fundamentals and the state of the macro-economy.

As the Canadain-based startup continues to scale and generate free cash flow, they had to choose the option to put the money in, and obviously, they went with the “good money.”

Also, with only 1.7% of gold’s market cap, he is “confident” that bitcoin will continue to outperform the precious metal as well in the coming years and decades.

“After falling down the rabbit hole and spending hundreds of hours studying the underlying protocol and all the game theory behind it, we began steadily accumulating bitcoin beginning in March of this year,” said Gimmer.

“This position now makes up a significant percentage of our company’s overall cash reserves.”

So, the small-scale companies have already started taking the bitcoin route just like the countries facing problems with their fiat currency; Venezuela, Argentina, Zimbabwe, Nigeria, Kenya, and Turkey, have been the first ones to adopt BTC.

As Marty Bent said, “The herd is coming.”

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Author: AnTy

Grayscale Receives FINRA Approval to List Bitcoin Cash and Litecoin on The Stock Market

Grayscale Investments’ two more products, Grayscale Bitcoin Cash Trust and Grayscale Litecoin Trust, have received approval from FINRA for public quotations under the ticker BCHG and LTCN on OTC Markets.

With this move, both Bitcoin Cash (BCH) and Litecoin (LTC) will be trading on the public stock market for the first time.

The New York-based digital currency asset manager announced on Monday that regulators had given the go-ahead for the sale of its two products, covering two new cryptos to the public.

The company that makes digital assets available in the form of stocks will make these new productions available to the general public in the next two to four weeks.

Grayscale stocks trade on OTCQX, an over-the-counter (OTC) market that is overseen by regulator FINRA, and here securities do not need to be registered with the SEC.

More options for institutional investors

Grayscale’s crypto products amount to shares in a trust that holds the underlying digital asset.

With this approval, institutional investors are now able to get exposure to these two crypto assets that Grayscale sells in the forms of shares, which, as we have seen in the case of both Bitcoin and Ethereum results in a significant premium to the underlying asset. Grayscale’s managing director, Michael Sonnenshein said,

“Grayscale builds investment products that operate within existing regulatory frameworks. With two additional products gaining approval for public trading, we’re broadening access for investors to gain exposure to the digital currency asset class.”

In its Q2 2020 report, Grayscale shared that it had the largest quarterly inflows ever at $905.8 million. Not only GBTC and ETHE saw record inflows, but Grayscale Litecoin Trust saw its largest inflows to date as well. Also, Grayscale Bitcoin Cash Trust recorded its largest inflows since Q2 2018. The report read,

“After a period of slow growth, Grayscale Bitcoin Cash Trust and Grayscale Litecoin Trust have seen a marked uptick in investor interest. The two trusts combined have now reached over $20 million in inflows since inception.”

With this, the total number of digital assets available to the public as shares have come to six. Already, Grayscale’s bitcoin product has found a special place among millennials investors on apps like Robinhood. Also, a Charles Schwab report from December stated that the Grayscale Bitcoin Trust (GBTC) was one of its top five equities held by millennials, even ahead of Netflix.

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Author: AnTy

Cryptocurrency Focused Insurer, Evertas, Raises A $2.8 Million Seed Round Led by Morgan Creek

  • Evertas crypto insurer has received $2.8 Million cash injection from a recently concluded seed round led by Morgan Creek Capital Management.
  • Morgan Creek CEO will onboard the Evertas Board of Directors as part of the agreement.

Chicago based Evertas insurance has raised $2.8Million in a recent seed round. The insurance company, formerly known as BlockRe, was founded in 2017 by current CEO J Gdanski. They have zeroed in on the crypto realm, helping their clients reduce exposure to crypto-related risks offering expertise in insurance, Blockchain, investigation, and financial audits.

The seed round was led by Morgan Creek, an investment advisory firm that offers customized investment management facilities to institutions, wealthy individuals and families. Other investors in the investment round include Plug n Play, Kailash Ventures, RenGen, Vy Capital, and Wavemaker Genesis.

Notably, the founder and CEO at Morgan Creek, Mark Yusco, will onboard the Evertas Insurance board of Directors as stipulated in the deal. The funds raised are set to be used in an expansion plan of their customer base and product market.

According to Evertas CEO, being the only crypto-focused insurer places them at a prime position to capitalize on the lucrative crypto space, especially now that the governments across the world are turning their eyes to the industry.

Evertas’ spokesperson – Phil Anderson – highlighted that they are looking to venture into extending their vault services to cold and hot wallets for their clients. Their clientele will be comprised of mostly institutional investors, crypto exchanges, and extremely rich investors.

They were recently greenlighted by Bermuda Monetary Authority to commence operations in the jurisdiction operating as a class 3A insurer. As a small scale insurer, they are required obligated to have at least a million dollars as its minimum capital and surplus.

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Author: Lujan Odera