Comparing Bitcoin To US 10-year Treasury Shows Its Use Case As Hedging Asset


Bitcoin has been making its case an uncorrelated, safe-haven asset. Bitcoin’s store-of-value characteristics that are similar to real assets like gold, as well as hard-money attributes like immutable scarcity.

New data shows that Bitcoin closely tracks inverted US 10-year Treasury (UST10Y) performance. This increases its hedging use case manifolds.

Stock Board Asset founder and CEO, Alastair Williamson notes:

However, this data is only of the last 6 months.

The 10-year Treasury note yield soared 6.5 basis points to 2.066%, trimming the benchmark rate’s weekly decline to 2.6 basis points. It staged its biggest daily yield increase since April 1, a day after falling below the 2% level to a two and half year low.

Bitcoin As A Safe Haven

Grayscale’s industry-famous research department recently released a report titled “Hedging Global Liquidity Risk with Bitcoin”. In it, the firm explained how the leading cryptocurrency is becoming used as a hedge in financial crises and periods of geopolitical turmoil. They looked into how the asset can be used during bouts in which there is high liquidity risk, the risk of a real decline in wealth resulting from an imbalance in the amount of money and credit relative to debt in a given economy.

While it is still very early in Bitcoin’s life cycle as an investable asset, there is proof supporting the assumption that it can serve as a hedge in a global liquidity crisis, particularly those that result in subsequent currency devaluations.

We can see this everywhere in the world where there is an economic turmoil, namely Venezuela, Iran, and more recently Hong Kong. Protests against a controversial extradition law resulted in Bitcoin trading at a premium in Hong Kong. BTC has been trading between $75 and $160 over the global average on local exchange Tidebit, with many experts believing an even bigger premium will follow.

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[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

Blockchain for Corporations and Governmental Agencies: Waves’ Vostok Mainnet Launches

  • The latest Vostok project by Waves’ development team is aimed at making blockchain technology more accessible to a wide range of users.
  • Government agencies and businesses will be able to leverage the benefits provided by this new platform.

The Waves Platform announced the successful mainnet launch of the Vostok project on the 6th of June. The launch signifies the birth of a blockchain service aimed at providing blockchain solutions for both public agencies and large corporations. The goal is to provide such organizations with scalable digital infrastructure.

What is Vostok?

The Vostok project which exists within the Waves ecosystem was first mentioned by Alexander Ivanov, the founder, and CEO of the Waves on the second anniversary of the blockchain platform. Roughly a year later, the Waves team of experienced developers and business experts has delivered the blockchain solutions project tailored to suit governmental agencies and large corporations.

According to the announcement, the Vostok project is a part of the founder’s “broader work of making blockchain accessible to every individual or organization interested in its profitable use.”

In other words, this is Waves delivering yet another useful blockchain tool for users.

Users Will Be Able to Make Transactions Using New Vostok Token (VST)

It was added that Vostok was also created to meet “the growing demand from large enterprises and state institutions that would like to adopt Distributed Ledger-based solutions.” Vostok is well suited for organizations that need distributed ledger solutions but do not wish to build them on their own.

The newly launched network comes with a token known as the Vostok token (VST). Users will be able to make transactions as well as create smart contracts on the network using the Vostok client.

There are three different ways through which users can participate on the Vostok network. First, users can integrate into Vostok’s public infrastructure. This requires administrator permission and can be done using the Vostok mainnet. Users can also build an independent blockchain infrastructure with assistance from the Vostok integrator at a cost. Finally, users who wish to improve the reliability of their independent networks can create a hybrid blockchain ecosystem.

Patronage of Vostok So Far

It was reported that the Vostok project has already attracted the interest of various stakeholders. Partnerships with institutions such as Rostec (Russian state corporation focused on the production of arms), Sberbank, Transmash Holding (railway machine manufacturers) and Vneshekonombank (Russian owned development bank) have already been secured.

Information from the official blog of the Waves platform also revealed that there were collaborations with housing company DOM.RF and the Nizhny Novgorod government prior to the official launch of the Vostok mainnet.

The Waves team was excited to present their new enterprise-ready blockchain solution to the general public. The mainnet launch is expected to allow government agencies and large corporations to take advantage of the service to meet their blockchain technology needs.

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Author: Omar Faridi