Asia-Pacific Family Offices Have Higher Appetite for Crypto, 38% Compared to 28% Global Average

Asia-Pacific Family Offices Have Higher Appetite for Crypto, 38% Compared to 28% Global Average: Survey

This more willingness to invest in riskier assets has led to 29% of family offices in the region reporting a significant increase in wealth over the last 12 months, more than the global average of 21%.

Thanks to the greater willingness to invest in new asset classes, including cryptocurrencies and private equity, the wealth of family offices in Asia-Pacific has grown faster than global peers this year, according to the 2021 Global Family Office Report.

Family offices manage investment and succession planning for wealthy families or individuals.

The survey shows 29% of family offices in the region reported a significant increase in wealth over the last 12 months, more than the global average of 21%.

This increase in their wealth aligns with a greater percentage (38%) of family offices in Asia-Pacific, saying they would increase their exposure to cryptocurrencies, compared to the global average of 28%.

“A few years ago, we were still arguing if cryptocurrencies are a real asset class. This year, it is agreed that cryptocurrencies and blockchain technology, as well as NFTs, are here to stay,” said Kwan Chi-man, CEO of Raffles Family Office, which conducted the survey jointly with research firm Campden Wealth.

The survey involved 385 family offices globally between April and July. Seventy-six offices surveyed in Asia-Pacific managed families with a combined net worth of $122 billion.

“The strong growth of family offices in the region is driven by the fact that Asia is creating billionaires at a pace faster than anywhere in the world,” said Kwan, noting that 4 out of 10 new billionaires globally are coming from Greater China.

The Asia-Pacific region accounts for the highest number of ultra-high-net-worth individuals (HNWI), with 38% residing there.

According to the report, family offices in Asia-Pacific have been more willing to invest in riskier assets, with the potential for greater returns. About half of Asia-Pacific families offices surveyed said they would invest in such products, compared with just 32% in North America and 35% in Europe.

More than 90% of family offices in Asia-Pacific said they plan to increase or maintain their private equity investments next year.

According to Kwan, the appetite for riskier investments has grown as the second generation of wealthy families starts to take control of family assets, showing a greater tolerance for risk.

Meanwhile, this year, China reiterated its unfriendly stance on crypto as it cracked down on crypto mining. A crackdown on the technology sector by Beijing regulators has sent tech stocks plummeting as well, but Kwan said while the market slump is a “mini-crisis,” it would not hurt family offices in Asia.

They are cash-rich and may consider it a good time to buy low in the markets.

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Author: AnTy

Bitcoin Having Almost No Correlation to Gold Since Late 2020

Compared to the $1 trillion crypto asset’s 85% YTD gains, the bullion is down -11.19% in 2021 so far. As for month-to-date, gold prices are again down 3%, while BTC is up nearly 20%.

It’s been nearly six months that the correlation between Bitcoin and gold has been on a downtrend. Currently, this correlation is near 0, which points to no correlation at all.

This made sense given that ever since hitting a new all-time high above $2,000, the prices of precious metal have been going down, hitting a nine-month low on Monday to $1,675 before making some recovery to $1,700 in tandem with all the other assets.

Based on BTC/GOLD 60d Spearman Correlation, “Bitcoin has had almost basically no correlation to Gold since late 2020,” noted Coin Metrics.

Compared to the $1 trillion crypto asset’s 85% YTD gains, the bullion is down -11.19% in 2021 so far. Even month-to-date, the spot gold prices are down 3%, while BTC is up nearly 20%.

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Source: CoinMetrics

Stock markets made a recovery on Monday on the back of a $1.9 trillion stimulus plan winning US senate approval on Saturday, only to end up lower. Tech-heavy Nasdaq is also selling off, now down 10.5% from Feb. 12 high of 14,095.

U.S. Treasury Secretary Janet Yellen said the package would fuel a “very strong” U.S. recovery, and as spending increases, she does not expect the economy to run too hot either.

However, investors are back to bracing themselves for another bout of sell-off in US Treasuries as a trio of large government debt auctions this week. “Investors will remain on pins and needles until the auctions are behind us,” said Gennadiy Goldberg, a rates strategist at TD Securities.

This could present a danger for all risky assets, including Bitcoin, as we have seen over the last couple of weeks.

Rising treasury yields are helping the US dollar strengthen, which fell to nearly 89 level earlier this year, a level not seen since April 2018. But since late February, the greenback has been climbing, going to 92.5 today before sliding to 92.

This is why the stock market and Bitcoin have been enjoying the gains finally, with BTC going above $54,000.

But in the near term, the macro presents a challenge in the form of rising yields and dollars. Additionally, March hasn’t been a bullish month for Bitcoin historically, which combined with 100k Bitcoin options outstanding for the March expiry points to continued volatility.

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Author: AnTy

EOS creator Dan Larimer is Back with A New Project; It’s ‘Layer 0’ Compared to ‘Layer 1’ Ethereum

EOS creator Dan Larimer is Back with A New Project; It’s ‘Layer 0’ Compared to ‘Layer 1’ Ethereum

The serial founder, known for quitting the projects, now wants to build Clarion — “a logically decentralized communication platform to replace centralized services (email, Twitter, Facebook, YouTube, medium).”

Daniel Larimer is back with yet another project.

This new project is called Clarion, described as “a logically decentralized communication platform to replace centralized services (email, Twitter, Facebook, YouTube, medium).”

And it is not built on EOS because “How do you build a logically decentralized system on top of a logically centralized system (all blockchains are logically centralized)?” said Larimer.

Earlier this year, Larmer left Block.one, the company that raised a record $4 billion in the largest ICO ever, promising to build a decentralized, blockchain-based platform to build the software behind the EOS.

Besides co-founding Block.one and serving its Chief Technical Officer since April 2017, Larimer has built Steem, Bitshares, and Cryptonomex.

If you think it is a pump and dump like all the previous projects, Larimer ensures “This project has no tokens to pump & dump” and that it can integrate with existing token systems.

“If there are tokens, then they could be airdropped on EOS,” commented Larimer on the question of Block.one funding the project and airdropping to EOS holders. So, pump and dump is really not out of the picture.

The serial creator is back just a couple of months after ending his stint with Block.One with Clarion, which reportedly aims to remove the dependencies on centralized infrastructure through a censorship-resistant “friend to friend” network.

The “ultimate goal” of the project is freeing “our friends and family from the tyranny of Twitter, Facebook, YouTube, Amazon, Apple, and Google and produce a social network free from manipulation and 3rd party dependence.”

This latest project learns lessons from projects like Hive (previously Steemit), Voice by Block.one, and RetroShare.

According to Larimer, what sets it apart is that it utilizes a progressive web application powered by Web Assembly. Clarion OS won’t require any consensus, and tokens and smart contracts can be built on top of it, he wrote.

“If typical Ethereum and EOS smart contracts are considered “layer 1”, then Clarion OS could be considered “layer 0,”’ wrote Larimer.

Currently, it is in the early design stage, and he is building a team of developers to build the first prototypes.

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Author: AnTy

67% of Millennials Believe Bitcoin Is A Superior Safe Haven Compared to Gold

67% of Millennials Believe Bitcoin Is A Superior Safe Haven Compared to Gold

Millennials believe that Bitcoin is a better safe-haven than gold. Despite its increased adoption, Bitcoin has experienced several social problems in its continued rise to prominence.

Over the last few years, we have seen first-hand how millennials deal with their personal finances.

The older generation believed in gold as the last resort in beating inflation, but with central banks printing more money than ever before due to the pandemic, many have had to search for better ways to hedge against inflation.

Millennials Believe In Bitcoin’s Future

A recent study from SimpleMoneyLife shows that cryptocurrencies are getting more adoption worldwide, despite their high volatility. The increased popularity, along with recent price rallies, has made these assets more preferable to legacy investment options like gold or government bonds.

In its research, SimpleMoneyLife, a personal finance platform, quoted a study from the deVere Group. The study revealed that about 67 percent of millennials see Bitcoin as a better store of value than gold.

The consistent adoption from millennials and increased institutional investment, has bolstered cryptocurrencies’ popularity worldwide.

Social networking apps like Twitter also play major roles in spurring crypto adoption. As SimpleMoneyLife explained, the social networking site churns out over 70,000 Bitcoin-related tweets daily.

Many of these tweets come from verified accounts of Bitcoin evangelists like Anthony Pompliano, Peter McCormack, and even Twitter CEO Jack Dorsey.

Several experts have pointed to Bitcoin possibly overtaking gold due to its increasing popularity.

Yesterday, Brett Messing and Anthony Pompliano of New York hedge fund SkyBridge Capital recently explained that crypto investments are as safe as gold and government bonds. The investment experts listed increased regulation and an enhanced Bitcoin infrastructure for its safety, adding that its value should skyrocket on the back of increased investment from institutions and millennials.

Social Concerns

Despite adoption being on the rise, SimpleMoneyLife pointed out that Bitcoin is experiencing some social problems with its distribution.

Although created to be decentralized, only a few early investors are controlling the vast majority of BTC presently in circulation. The SimpleMoneyLife research showed that two percent of BTC wallets control about 95 percent of the assets in circulation. A further 70 percent of BTC addresses have less than 1 BTC in them.

Another social problem appears to be the gender inequality discovered in the Bitcoin ecosystem. Males are seen as more interested in cryptocurrencies in general than females, with SimpleMoneyLife reporting that 85.77 percent of Bitcoin-related engagement comes from men, while 14.23 percent of the network’s participants are female.

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Author: Jimmy Aki

Ethereum Miners Accumulating While Active Addresses Point to ‘Strong Price Rally’

Unlike Bitcoin, Ethereum has really made substantial gains in 2020, up 75% YTD compared to BTC’s 25%. Even after the March sell-off, Ether has been on an incline, rising 10.52% against BTC the past month. Currently, ETH/USD is trading at $226.

Just like the price, the number of non-zero addresses has been surging, but at a faster pace. Today, Ethereum non-zero addresses broke the previous ATH set just a day back to make a new high of 42,385,447, as per Glassnode.

These addresses have been growing since 2017, notwithstanding the price movement, which went through a bull market in 2017, a bear market in 2018, and now a mix of gains and losses before starting a new bull rally.

Just like retail investors, miners are busy accumulating ETH. In the past 20 days alone, they added 21,000 ETH, worth nearly $5 million, shared Spencer Noon, head of DTCCapital, a crypto-native investment fund.

This latest uptrend came after miners sold ETH in late May and then in early June following the digital asset’s price spiking above $220, “which coincided with the start of Ethereum’s consolidation phase.”

“The prolonged periods of miner accumulation can indicate fairly high confidence levels among ETH mining pools in relation to the asset’s short-term performance,” noted Noon.

A similar uptrend can be seen in the number of addresses interacting with ETH each day, which is being sent or received. In an uptrend for the past three months, it is now approaching the 2019 top.

Such a surge in Ethereum’s daily active addresses has previously coincided with a “strong price rally.” But because currently, Ether is in the weeks-long consolidation period, this may be a decoupling of price action from the network’s utilization.

But at the same time, previously dormant coins are once again moving between addresses as Ethereum’s token Age Consumed spiked at its highest level since February 2019. The spike is also higher than the one recorded on Black Thursday.

“Spikes in Token Age Consumed can sometimes signal changes in the behavior of certain long-term holders, and tend to precede increased volatility in the coin’s price action,” noted Santiment. This latest spike however is most likely due to the sudden movement of 789,534 $ETH (~$184,000,000) from the PlusToken Ponzi scheme.

Ethereum’s token velocity has also hit a 2-year high with the average amount of times active ETH tokens changed addresses spiking to 5.2 per day which might be prompted by the “yield hunting” on various DeFi protocols.

Lastly, as we have been reported, total gas used on the Ethereum blockchain made a new all-time high just as Ethereum miners are voting to increase the block gas limit by 25%. This growth is also due to an increase in the utility of DeFi projects Uniswap and Kyber network, which also ranks in the top 10 by gas usage in the past month.

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Author: AnTy

Todd J. Zywicki: Your Historic Baseball Cards Could be a Better Store of Value

Todd J. Zywicki: Your Historic Baseball Cards Could be a Better Store of Value

Compared with Bitcoin has always been tipped as a store of value. This is the common belief among many crypto worshippers out there, however crypto naysayers have a different view about the king coin.

An investment commodity can be described as things that individuals purchase that represent a store of value since at the end they can be used as aesthetics, or have historical or emotional value. That is why Baseball cards as well as other collectibles such as arts or rare coins are good examples of investment commodity. C

According to Todd J. Zywicki is a Senior Scholar of the Mercatus Center at George Mason University, Bitcoin has no intrinsic value. He explains his point to CCN:

“Economist Vernon Smith has shown that investment markets are more prone to boom and busts then markets involving end-use goods. The argument is not so much about subjective value, but that the value of an investment commodity is your expectation as to what everybody else will value it at. Bitcoin has no intrinsic use value. Its value derives from your expectations about other people’s values, which is in turn based on their expectations of everybody else’s views.”

The scholar adds that Bitcoin has no end-use, aesthetic, historical, or emotional value. He explains that the coin is 100% speculation and no clear utilization value is attached to it. The scholar says that these are the reasons why the king coin has a high price volatility.

According to Zywicki, Bitcoin is anchored on nothing and its value highly depends on various layers of investor expectations which effectively makes it a derivative of derivative that is based on nothing.

He explains that Bitcoin cannot be a store of value as it has 95 percent probability to swing 166 percent to any direction in a particular year.

Baseball Cards Better Than Bitcoin

The scholar explains that baseball cards have a higher store of value compared to Bitcoin. He starts by explaining that Baseball cards’ volatility is low compared to Bitcoin.

He then points that the top 100 rarest baseball cards have at times outperformed the S&P 500 by over 200 percent in the wake of the financial meltdown. He also adds that the top 2500 baseball cards have matched the S&P 500’s return and with even low volatility as seen in the charts below:

PWCC 100 Index outperforms S&P 500 | Source: PWCC Marketplace

The scholar goes ahead to compare baseball card’s volatility with that of the Bitcoin as indicated in the chart below:

Suffice to say that BTC is more than a bit volatile. | Source: High Charts

Zywicki concludes by saying that a store of value enables an investor to have a dreamy night aware that when he finally wakes up there will be less price movement in the holding value of the asset. However, this is not the case with Bitcoin as it can even move for more than 15 percent within one hour.

Will Zywicki and other crypto naysayers be forced to eat humble pie in the future when the cryptos become the most preferred commodity to store value? Let us know in the comments section.

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Author: Joseph Kibe

Coin Metrics Report Claims Kik Presented Inaccurate Data About the Kin Blockchain

Coin-Metrics-Report-Claims-Kik-Presented-Inaccurate-Data-About-the-Kin-Blockchain
  • Kik might have presented wrong information about its Kin network
  • Coin Metrics compared the data provided by Kik with other blockchain networks such as ETH and BTC

Kik has recently provided information about activity on its blockchain network to the U.S. Securities and Exchange Commission (SEC). However, Coin Metrics reported that these claims made by Kik are inaccurate.

Kik’s Inaccurate Claims About Kin

Back in 2018, Kik claimed that their network exceeded Ether (ETH) and Bitcoin (BTC) in daily blockchain activity. This demonstrated that Kin was adopted and used by many individuals around the world. However, Coi Metrics claims that the daily operations included a large number of account creations.

Indeed, some of these accounts seem to be empty after a single transaction processed. Although Kin had a very interesting number of daily transactions, it was far from reaching a similar level as top tier blockchain networks.

In addition to it, Kik has also questioned the SEC regarding the token as a security. They said that there were over 300,000 individuals that earned and spent kin as a currency. Coin Metrics explained that there have been just 35,000 addresses that held more than 10,000 kin worth around $0.23.

On the matter, the report commented:

“This is orders of magnitude less than other blockchains in our sample, which each have at least 1,000,000 addresses that hold at least $1.”

Coin Metrics explained that multiple metrics showed that the Kin digital asset was not used more than other chains such as Bitcoin or Ethereum. Just last month, Kik has launched a $5 million crypto campaign in order to deal with the SEC and improve its regulatory clarity.

Back in September 2017, Kik was able to gather almost $100 million during a token distribution event. However, the US regulator claimed that Kik may have violated securities laws in the country. Since that moment, Kik is working in order to prove it has been operating in the market as it should.

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Author: Carl T