Billionaire Investor Ray Dalio Advises Diversifying in Hard Assets like Gold But Warns Against BTC

  • Ray Dalio said “cash is trash” and investors shouldn’t stay on the sidelines of the market in 2020
  • The Billionaire investor advises diversifying in hard assets and gold
  • Bitcoin he said doesn’t fulfill the purposes of money

At the World Economic Forum in Davos, Switzerland, Ray Dalio, founder of investment firm Bridgewater Associates said: “crash is trash.”

Dalio’s investment firm manages $160 billion warns against jumping into cash, saying “Get out of cash. There’s still a lot of money in cash.”

Dalio’s stance on cash isn’t new, previously in 2018, he said that investors were going to “feel pretty stupid” for holding cash and missing the stock market’s climb to record highs.

The honcho advises investors to diversify their portfolio by investing in technology disrupting companies and having a “certain amount of gold in your portfolio,” or “something that’s hard.”

However, Dalio has warned against Bitcoin which he said is still volatile and isn’t a medium of exchange or a store hold of wealth. He said,

“There’s two purposes of money, a medium of exchange and a store hold of wealth, and bitcoin is not effective in either of those cases now.”

Dalio clearly doesn’t believe in ‘Bitcoin is a digital gold’ narrative rather feels Facebook’s Libra has more potential. Dalio said:

“Libra or something which is as more stable value has got more potential.”

He said, central banks won’t be adding digital gold, Bitcoin to their reserves rather gold which is a tried and tested reserve currency for a thousand years.

Dalio’s view of BTC remains the same from 2017 when he called Bitcoin a “bubble” and a “highly speculative” investment.

And he isn’t alone in seeing BTC this way. Billionaire Warren Buffett has called BTC “rat poison” while JPMorgan CEO Jamie Dimon has called the flagship cryptocurrency a “fraud.”

Despite these criticisms, however, Bitcoin has emerged as the best performing asset of the decade with 9,000,000 returns in the 2010s. A report from Bank of America also named the crypto asset as the best investment of the last decade in which if you had invested $1 in the beginning of 2019 would have now been worth over $90,000.

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Author: AnTy

Cash Hoarding Shoots Up, But it Still Lost Another 2.1% of its Value in 2019: Time for New Money

  • Private investors sitting on a record $1.5 trillion in cash, highest record that doubled since five years ago
  • From rich people to general public everyone holding on to a record pile of cash
  • Competition, low-interest rates, the underperformance of funds, uncertainty about the global economy, and lower returns are the reasons behind the hoarding of cash
  • Cash loses its value every year, the purchasing power of $100 has gone from $100 in 1913 to $3.87 in 2019, as such it’s time for smart money – BTC & crypto

Private-equity firms are stockpiling a record amount of cash. The industry including venture capital had a total of $1.45 trillion in cash to invest at the end of 2019. This is the highest on record and more than double what it was five years ago, according to data from Preqin.

The steady cash stream into private equity is driven by investors expecting lower returns from public markets. The flood of money is driving up the entry prices, said Inigo Fraser-Jenkins, head of the portfolio strategy team at Bernstein Research which could mean lower future returns.

Low global yield is another reason, with the 10-year Treasury yield going below 2% this year investors are looking for better investment alternatives.

Rich hoarding cash as well

But it’s not just private equity that is sitting on cash. Investor Warren Buffet is also sitting on a record $128 billion at Berkshire Hathaway, a 15% increase from the end of 2018.

As a Capgemini World Wealth report stated, High-net-worth individuals (HNWIs) — people with at least $1 million in investable assets — had about 28% of their portfolio in cash in Q1 of this year.

The cash holdings of clients at UBS, the largest wealth manager in the world are 26% while Credit Suisse’s 20%.

Uncertainty over the global economy fears over the trade war between the US and China, and the outlook for equities have led some investors to increase their cash holdings.

General public on the same path

The general public has also taken to hoarding cash as Wall Street Journal’s “The World’s Cash Is Disappearing. Bankers Aren’t Sure Where It Went” article states,

“Banks are issuing more notes than ever and yet they seem to be disappearing off the face of the earth. Central banks don’t know where they have gone, or why, and are playing detective, trying to crack the same mystery.”

Whether it’s distrust in the federal government or the banking system, that’s not really known.

But cheap money isn’t for retail

This year, cash also lost another 2.1% of its value. As a matter of fact, in 1913 when the Federal Reserve was first created $100 had the purchasing power of $100 dollars but has now fallen to just $3.87.

Another problem with fiat is income gap as Tuur Deemester, founding partner of Adamant Capital says,

“Monetary debasement significantly contributes to the wealth transfer from poor to rich. The rich have access to the money before it loses its purchasing power (via borrowing), and thus harvest wealth from the poor. As the money cheapened in the 90s, the wealth gap grew in tandem.”

Analyst Jacob Canfield says the ‘borrow list’ of the fed consists of almost entirely of banks and institutions like JP Morgan and Blackstone. This “cheap money,” he said is not available to retail rather they are charged fees to hold cash, via negative interest rates.

Time for smart money, Crypto!

If not invested, cash still loses its value every year. As eToro, a social trading and multi-asset brokerage company points out, it’s time for new money and to invest in cryptocurrencies.

With 9,000,000% gains, Bitcoin is the best performing asset of the last decade.

Also Read: 2019 Was Bitcoin’s “Worst” Positive Year on Record

“If Bitcoin is a get rich quick scheme, then fiat is a get poor slow scheme,” states Bitcoin enthusiast Rhythm Trader on the continuously falling purchasing power of US Dollar.

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Author: AnTy

Cash Is Still the Top Choice for Bank of Canada Governor, Leaving Crypto in the Dark

  • The governor, Stephen S. Poloz, stated that cash will always end up being around.
  • He did not specifically state whether the central bank would be interested in issuing their own digital currency at some point.

The cryptocurrency industry is over a decade old, and there are many countries that have slowly adopted regulations to support its innovation. Despite having a crypto-friendly atmosphere in nearby regions, Governor Stephen S. Poloz of the Bank of Canada is not among the supporters. In a recent presentation to the Empire Club of Canada, Poloz discussed the reasons he has for backing cash, but not feeling the same adoration of cryptocurrency.

One of the points that Poloz made was over the role that technology has played in payments for Canadians, saying that most of the work in the wholesale payment system should be done next year. Furthermore, in the next two to three years, consumers will be able to handle transactions in real-time between each other, which is a major improvement in the lags that the current system faces.

Poloz stated, “Now these prospects have the bank thinking hard about the future of… money. Especially cash, which is really my favorite.”

About half of the payments in Canada were made in cash just a decade ago. Now, that portion has dropped down to about a third of all of the transactions, which is still considerably large when compared to other nations with similar levels of development. The use of smartphones and cards are becoming more useful in the region, and there are many businesses that will only accept payments made electronically.

However, Poloz added, “I believe that central bank money, the banknotes you have in your pocket, will always provide an important public good. It’s an individual’s sovereign right to make payments with an instrument that is universally accepted and final.”

Continuing, he pointed out that private digital currencies cannot offer the universal acceptance that cash does, regardless of the innovations made by the industry. However, if the use of these cryptocurrencies becomes as widespread as cash with its universal acceptance, could the governor change his mind?

Poloz switches to speak on the benefits of cash again, adding that it “will still work even during power blackouts or cyber attacks.” Because of this advantage, he believes that banknotes will continue to survive through the digital age, “if only as a contingency for unusual events.”

Regardless of this love of cash, Poloz seemed to leave the question of issuing a central bank-based cryptocurrency open for now. He instead stated that the need to issue such a substitute was an open question in itself, commenting that it is best for the government to prepare for “whatever contingency does arise” in the financial industry. He then implied that there are other announcements that the Central Bank would likely wait to address until next year, though he noted that emerging payment technologies are interesting to the bank.

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Author: Krystle M

HTC’s Blockchain Smartphone Exodus 1 Will Now Support Bitcoin Cash (BCH)

Exodus 1, the blockchain phone created by HTC, is set to receive support for Bitcoin Cash (BCH). The announcement was made today. The company affirmed that the new function will have the standard wallet of Bitcoin.com installed. The phone is also set to be sold on Bitcoin.com as part of the partnership.

Phil Chen, the Chief Decentralization Officer of HTC, has affirmed that this update on the phone’s technology was the most obvious next step for the project. He affirmed that BCH is an alternative to the original Bitcoin in the payments sphere and that supporting such a big token is a very important move.

With this partnership, the previous company that secured the key management on the phone, Zion Vault, will also be able to secure BCH, not only BTC and ETH, which were the only two tokens to be accepted before.

Users can also make direct swaps via their phone wallets and their Zion Vault wallets, meaning that it is easy and inexpensive to transfer tokens from one device to another one.

At the time of this report, the Exodus 1 phone can be found for $699 USD online. Right now, the company is already planning the second generation of its blockchain phones, though. They are set to be cheaper than the current models, costing from $200 to $300 USD.

The reports seem to indicate that the phones would be shipped soon and that they will provide a considerably more popular and cheap alternative.

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Author: Hank Klinger

Bitcoin Cash Can’t Mine Blocks Over 2 MB, Developer Suggests

A developer of the Bitcoin Cash (BCH) network has recently talked about the mining capabilities of the popular cryptocurrency. Amaury Séchet, a prominent developer of the community, has recently suggested that the network could not mine any block larger than 2 MB.

Séchet is known for being the lead dev behind the first implementation of Bitcoin Cash, Bitcoin ABC. For him to admit this is a big deal, especially when we remember why BCH and Bitcoin Satoshi Vision (BSV) split. Roger Ver, the creator of BSV, has championed bigger blocks as the cure for all the problems that could be found in Bitcoin.

Some people, such as “Grubles”, the engineer from Blockstream, affirmed that it was not really a big deal, but others seemed concerned about the problems that could arise from the newly found limit.

AvatarX, the forum moderator of Bitcoinated, claimed that BCH was not even able to maintain blocks of over 1 MB for 30 days straight, so it was not really that surprising to find out that the network actually had problems to go other the 2 MB mark.

Recently, BCH has been falling in comparison with BTC, so this reveal is certainly not getting people any more bullish. One of the reasons why BCH was created was to actually have big blocks that could be more efficient, so not being able to provide an answer for this problem can certainly become a problem for the network in the long term.

Ever since its latest hard fork back in November last year, the BCH team has been facing more and more difficulties, so its future is uncertain right now.

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Author: Gabriel Machado

BitPay Temporarily Halts Its Operations In Germany Citing Confusion In Crypto Payment Regulations

BitPay-Temporarily-Halts-Its-Operations-In-Germany-Citing-Confusion-In-Crypto-Payment-Regulations

Giant Bitcoin and Bitcoin Cash payment processor BitPay has announced that it is temporarily withdrawing its operations in Germany.

In an e-mail sent to Cointelegraph on 1 August, BitPay confirmed that it had suspended its activities in Germany.

In the sent e-mail, the BitPay head of Public Relations, Jan Jahosky explained that the company has agreed to halt the provision of its services in Germany in view of the coming into force of the new regulations, scheduled for next year.

However, it seems that the company is already considering adding support for the German market again in the future:

“Germany has publicly stated that it wants the crypto companies to hold a license starting in 2020. We have suspended our operations in Germany while evaluating the need to obtain a German license.”

German Companies No Longer Accept Bitcoins

Meanwhile, the computer news site Computer Base today announced that it will no longer be able to support Bitcoin as a payment procedure precisely because of the BitPay suspension.

However, the company has also agreed that the majority of its users pay via PayPal or bank transfer, while Bitcoin does not seem to be a particularly widespread payment method. However, there are alternative, self-hosted and open-source payment processing services, such as BTCPay Server, which lessen reliance on secondary providers.

Reports by Cointelegraph state that starting next year, the new anti-money laundering regulations will come into force in Germany, which requires companies in the crypto sector to have a license issued by the German Federal Financial Supervisory Authority.

In the recent past, Germany has been in the forefront urging other European countries to adopt tough regulations on crypto-based initiatives. The country’s finance minister is on record saying that cryptos won’t be allowed to replace the Euro. Germany’s policymakers have also called for tough measures to curb any threats posed by Facebook’s Libra crypto.

Is Germany becoming anti-crypto going by its recent policies and regulations? Share your thoughts with us in the comments section.

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Author: Joseph Kibe

Jack Dorsey’s Square Cash App is Giving Away Bitcoin (BTC)

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  • Square’s cash app is giving away $50k in Bitcoin and cash
  • #SuperCashAppFriday hashtag is trending while Bitcoin’s roller coaster ride to the moon video goes viral with 2.6 million views
  • Mobile payment service Cash App, developed by Square, is giving away $50k in Bitcoin and cash.

Cash App on its Twitter announced the give away on June 26. The tweet has gone viral since then with 35.6K retweets and having received 40.8K likes.

#SuperCashAppFriday hashtag is trending on twitter as well.

The roller coaster ride of Bitcoin to the moon video has received 2.6 million views till now.

The peer to peer payment app had 15 million monthly active accounts last year, up from 7 million in 2017 and further continues to grow.

As previously reported, at the end of June, Square enabled Bitcoin deposits for all of its Cash app users.

Bitcoin deposits can now be made from external wallets into the cash app’s bitcoin address. However, deposits are limited to $10,000 worth of Bitcoin in a seven day period. Transactions can also take several hours to be confirmed on the blockchain.

Founder and CEO of Twitter and Square, Jack Dorsey is a Bitcoin supporter who believes one day the flagship cryptocurrency could become the currency of the internet.

Dorsey has also been putting together a team to improve the crypto sector at Square.

Square is also enjoying growth as its stock is up about 56 percent in 2019, having started the year at $57 and currently trading at $81.81.

Meanwhile Bitcoin, the leading cryptocurrency is up 157 percent during the same period.

All of Today’s Bitcoin Price Analysis, Chart Forecasts and Industry News

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: AnTy

Bitcoin is the Most Popular Crypto on Coinbase But Not with the Longest HODLing Period

Bitcoin-Is-One-Of-The-Most-Profitable-Assets-In-History
  • Bitcoin, the most popular crypto-asset on Coinbase followed by Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH)
  • Litecoin tops with the highest holding period while XRP, XLM, and EOS as the lowest
  • The leading cryptocurrency is the most popular digital currency on the cryptocurrency exchange, according to the new Coinbase Popularity stats.

Bitcoin is followed by the second largest cryptocurrency Ethereum (ETH) and then Litecoin (LTC) and Bitcoin Cash (BCH).

Coinbase has a limited number of cryptocurrencies listed on its platform, though lately, it has started adding more crypto assets. The top four most popular cryptos are the oldest ones that have been listed on the exchange for over a year now unlike other cryptos.

The third largest cryptocurrency XRP is one such latest addition that is the fifth most popular digital currency on the US-based exchange. Stellar (XLM) and 0x (ZRX), BAT, ETC, EOS, ZEC, LINK, DAI, and USDC can be further spotted on the list in this order.

Litecoin Tops While XLM And XRP Has The Lowest Holding Period

When it comes to the crypto asset that has the longest HODL period, it’s not Bitcoin.

The flagship cryptocurrency’s median holding time is 85 days, at the fifth spot, which could be due to its volatility. It is also the crypto asset that has the highest value, currently trading at $10,700.

According to the Typical Hold Time stats, Litecoin is at the top of this list with 119 days. Interestingly, Litecoin has already pumped 229 percent YTD and LTC reward halving is just around the corner, 15 days away to be exact, that will cut down its supply.

Historically, reward halving has been a bullish event for the Bitcoin price.

Litecoin is followed by 0x (ZRX), Ethereum, and Ethereum Classic whose holding periods are 108, 101, and 99 days respectively.

EOS with 6 days, XLM 19 days and XRP with 33 days have the least number of holding days that could be attributed to their poor performance this year.

XLM and XRP have registered negative YTD returns, being the only ones among the top 40 coins in the loss in 2019.

However, stablecoins have much lower holding period, while DAI has 1 day, USDC has been held only for 4 days. This could be because stablecoins are used for mostly arbitrage on a fiat exchange. Also to transfer funds to other exchanges and to use DeFi.

As economist and trader Alex Kruger puts it, “Why hold stable coins in Coinbase when one can hold fiat, which is FDIC insured.”

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Author: AnTy

Brave Browser CEO Confirms The Integration Of Bitcoin Cash (BCH) In Version 0.68

Brave Browser CEO Confirms The Integration Of Bitcoin Cash In Version 0.68

If you were wondering why Bitcoin Cash (BCH) gained 11% this Saturday, we have the answer for you. BCH gained positive sentiments from its sudden and unexpected addition to the Brave Browser. Following the request to Basic Attention Token (BAT) and Brave co-founder Brendan Eich, Bitcoin Cash was added to the browser in no time.

Brave CEO Brendon Eich confirms:

Notably, Twitter user @DavidShares lamented about the fact that upon testing out the Brave Browser, he couldn’t fund it with BCH. Brave Browser acted within 8 hours and integrated BCH.

The open sourced browser is privacy oriented and blocks all ads and tracking technology. Their servers don’t see or store your browsing data, and you can customize your privacy settings browser. They also let you see how many ads and trackers are being blocked on a daily basis, which is a revolutionary feature. Even if you’re alright with advertising it’s refreshing to know when, how, and where you’re being marketed to. Plugins, which have proven to be a security risk, are also disabled by default.

Eich had earlier said:

“With Brave Ads, we are launching a digital ad platform that is the first to protect users’ data rights and to reward them for their attention. Privacy by design and no tracking are integral to our mission to fix the Web and its funding model.”

If you want to download the Brave Browser for yourself, you can do so here. BitcoinExchangeGuide.com is a verified Brave Publisher.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Sritanshu Sinha