DeFi Growth & Stablecoin Surge Most Bullish Crypto Development: State of Crypto 2020 Survey

39% of the respondents that involve 150 portfolio companies see DeFi as the most bullish crypto development of 2020, as per the DCG Founders survey “State of Crypto 2020.”

The sector has seen immense growth in 2020 and continues to hit new highs; just today, a new record was set of $12.5 billion TVL.

The founders surveyed said notwithstanding the price of DeFi tokens, which have been tanking hard until very recently, “the protocol development and business growth of 2020 bodes well for the industry’s future.”

What has been the most bullish crypto industry development this year?
DCG Survey: What has been the most bullish crypto industry development this year?

DeFi is followed by “BTC resilience” and “Stablecoin surge,” which makes sense given that the market cap of fiat-backed crypto has shot up past $12 billion this year.

​“The growing demand for stablecoins in Latin America, and Argentina specifically, is due to the fact that buying dollars as a form of savings is a regular monthly habit for middle-class Argentinians, due to cyclical devaluations and loss of trust and credibility in the Argentinian peso,” said Sebastian Serrano, CEO of Ripio, an Argentinian digital asset exchange, and payments company.

​Still, respondents were split on whether Ethereum, which is the center of it, will remain the dominant transaction-based blockchain. 51% still believe the second largest network will find scalability faster than new blockchains develop a community.

Adoption Drivers & Greatest Risks

What macro development will have the greatest impact on digital currency adoption?
DCG Survey: What macro development will have the greatest impact on digital currency adoption?

Other findings of the survey revealed “global recession” (24%), “inflation” (19%), and “hunt for yield” (18%) as the main macro crypto adoption drivers. However, the smart money adoption won’t be bringing new highs for BTC price in the next 6-12 months as per the majority.

Only 20% think during this period, BTC will surpass $20,000.

Where do you think the BTC price will be in 6-12 months?
DCG Survey: Where do you think the BTC price will be in 6-12 months?

Meanwhile, nearly six in ten respondents expect industry consolidation, resulting from big players buying smaller ones to limit competition to accelerate, particularly in the exchange and wallets & custody spaces.

However, the industry’s greatest risk remains the same; compliance and regulation as per 51% of the respondents.

“It’s really important that we start to see some consistency and coordination across regions,” said Simone Maini, CEO of Elliptic, a blockchain forensics, and analysis company, “there are still plenty of opportunities for regulatory arbitrage at the moment, where businesses are trying to operate in jurisdictions with looser regulations.”

Other factors that impede sustainable growth involve theft/hacks/scams (22%), investment crunch (12%), and technical obstacles (8%).

Overall, in 2020, four in five rated their company’s performance against expectations as “outperformed” or “neutral” while having COVID/remote work, third party delays, and fundraising as the main business challenge.

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Author: AnTy

Travala Adds Support for VeChain’s Cryptocurrency, VET, As A Payment Option at 2.2M Hotels

VeChain has become the latest cryptocurrency to be added to the travala.com’s cryptocurrency payment portfolio. The addition would open the gates for VeChain token holders to book their travel tickets and over 2.2 million hotels via travala.com using the native VET token.

Travala.com, over the years, has established itself as a noted travel booking platform that allows its customer to book tickets to their favorite destination using cryptocurrency. The platform has already added Bitcoin, Litecoin, Ethereum, and many more cryptocurrencies to its platforms. The services of the platform are available in over 230 countries.

Juan Otero, CEO at Travala.com, shared his views on the importance of this partnership and how it would help them in achieving their goal of broader crypto adoption. He said:

“At Travala.com, we are dedicated to expanding valuable options for our users. Through this partnership, we hope to continue to push the growth of cryptocurrency adoption by enabling our user’s access to VeChain’s reputable ecosystem and fast, user-friendly payment execution.”

Given the vacation rental market size is expected to grow to $114 billion by 2027, travala.com can play a major role in expanding the adoption and use of crypto.

VeChain, on the other hand, is a popular enterprise-friendly public blockchain platform. The blockchain platform association with Travala.com promises to not only expand the use of crypto but also ensure safety and security. VeChain said that its VET token would work as smart money for the users.

Sunny Lu, the co-founder, and CEO at VeChain, commented on their recent association with one of the largest travel booking platforms and said:

“Positioned as the ecosystem enabler, VeChain has been on the path for accumulating real-world applications and client base, and we’re always on the lookout for partnerships amongst a diverse list of industries to widen the adoption of blockchain. We’re pleased to partner with Travala.com to bring users an enhanced travel experience through the utilization of blockchain technology.”

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Author: Hank Klinger

US Dollars are Actually Harder to Use & Here’s How Bitcoin is on the Same Path

  • Adding 1% of Bitcoin to your portfolio gives you a 200 basis points upside
  • If this Bitcoin position had gone to zero, you would only have had a 20-basis point downside

Recently, we shared how a tiny allocation of Bitcoin, as much as 10%, “considerably outperforms” a typical portfolio that involves equity and bonds.

Now, Anthony Pompliano, co-founder and partner at Morgan Creek Digital has an even better investment analysis for you to convince your family to make Bitcoin an essential part of their investment portfolio.

During the latest episode of analyst and trader, Luke Martin hosted Coinist Podcast Pompliano talks about the availability of overwhelming data in the past five years. However, a small percentage of BTC in your portfolio can provide you with an amazing upside.

“If you have a 60/40 global portfolio you got the return of about 7.2%. If you take in half percent from stocks, and a half a percent from bonds, and put it into Bitcoin, you would have gone from 7.2% to 9.2%, a 200 basis points upside,” explains Pomp.

While the upside is of 200 points, on the other hand, if you would have lost it all, it would have only cost you 20-basis points. So, it clearly is a lucrative investment option.

“If that one percent Bitcoin position had gone to zero, you lost all your money. It would have gone from 7.2% (original) to 7%, a 20-basis point downside. So, a 10:1 upside to downside. And the fact that it’s non-correlated ends up reducing the overall risk of the portfolio.”

No One Using US Dollar to Buy Coffee

It’s not just about returns and profitability either, Pomp also touched upon the qualitative side of it. He addresses the primary concern of non-bitcoiners and mainstream media that no one uses it.

But what they fail to realize is, “It’s one of the top 15 most popular currencies in the world.”

Moreover, the Bitcoin network on-chain transaction volume last year was more than that of Venmo, PayPal, or ApplePay. Not to mention It’s available in more countries.

But in the U.S., Pomp argues people don’t like to hear it because “we’re spoiled” and the US dollar works.

As for no one buying coffee with it, Pomp has this to say,

“I just went and bought coffee… I didn’t use dollars. I used credit. Most of the coffee bought at Starbucks, they use credit. They don’t use dollars. When do I settle that transaction? When I pay off my credit card at the end of the month. So people think “oh I am using dollars (at Starbucks).” No, you are not. You are using credit. And the reason you use the credit is because the dollars are actually harder to use than credit.”

Though the tax treatment, that has to be paid every time you purchase with BTC, needs to be improved, Bitcoin is on the same path as the physical money.

“If you think of it in layers, there’s gold, there’s paper claim on the gold, then there’s electronic money, then there’s credit built, etc. Well, that took a lot of time to build. The same thing is going to happen with Bitcoin,” Pomp said.

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Author: AnTy

A 10% Bitcoin Allocation Investment Portfolio “considerably outperforms” a Typical one

  • Portfolio with BTC outperformed the other over one year period, reaching its 2019 high over the summer
  • Both portfolios had nearly similar Sortino Ratio
  • It also maintained greater risk-adjusted return with a Sharpie of 0.66
  • How does having just 10% Bitcoin in your investment portfolio fares in comparison to a typical non-Bitcoin one?

TradeBlock, an institutional digital currency trading tools provider answered that in its recent blog where it found that the portfolio with a 10% Bitcoin allocation along with 55% equities and 35% bonds “considerably outperformed” the one without Bitcoin but included 60% equities and 40% bonds.

The year-over-year performance between the two portfolios started with an investment of $1,000, with the assumption of yearly rebalancing at the previously mentioned percentage allocations.

Portfolio two with BTC outperformed Portfolio one over the one year period and then the former reached its 2019 high over the summer.

Portfolio comparison year-over-year

When it comes to risk, Portfolio 2 with a 10% bitcoin allocation outperformed the alternative portfolio but maintained a modestly higher risk profile because of the flagship cryptocurrency’s heightened volatility.

Both portfolios, however, had nearly similar Sortino Ratio, the risk-adjusted return of an investment asset, at 1.51 and 1.41. Earlier this year, Bitcoin had higher risk-adjusted returns at 1.97 than the 0.25 of S&P 500 and 1.06 of gold.

When it comes out more popular Sharpe Ratio to measure risk-adjusted returns, Portfolio one with BTC maintained greater risk-adjusted return with a Sharpie of 0.66 versus Portfolio 2 which had a Shape of 0.46.

The Best Investment of the Decade

It makes sense the portfolio with Bitcoin outperformed the alternate one as the world’s leading cryptocurrency hasn’t been only the best performance crypto asset of 2019 but of the decade.

A recent report by Bank of America Securities shared that if you have invested just $1 in Bitcoin at the start of the decade, it would have been now worth close to a million (more than $90,000).

During the same period, $1 in American stocks would have been up only 250% at $3.46, in gold, it would have been $1.34, 74 cents in crude oil, and $2.08 in 30-year US Treasury while you would have lost your investment by investing $1 in Burmese kyat, now worth $0.004.

Over this past decade S&P 500 and Dow Jones Industrial Average, however, made significant gains of 140% and 130% respectively, but still way less than BTC.

As trader Josh Rager points out,

“As amazing as these stock returns are, there is a potential opportunity to have similar gains with Bitcoin even at its current price: $7000’s.

Potential 1000+% returns, not only over the coming decade, but in the next few years if we see BTC hit between $75k to $100k+.”

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Author: AnTy

Coinbase Plans to Sunset $100 Million ‘Earn.com Portfolio’ to Focus on Coinbase Earn in 2020

Coinbase is planning to phase out Earn.com from their product portfolio and users have up to February, 2020 to make all withdrawals. The exchange had acquired this micro-task platform back in 2018 at around $100 million which was considered a significant investment within the crypto industry at the time.

A recent email was sent out to Coinbase investors whereby they were notified of the move. Coinbase noted that they will put more focus on ‘Coinbase Earn’ than the Earn.com, which has been in operation for quite a while. The product was designed to create an avenue for the learning and earning of individual cryptocurrencies as more industries integrate FinTech.

According to Coinbase, the new strategy for the “sun-setting” of Earn.com will probably yield better results given the potential of their newest alternative focus. Coinbase says millions of dollars have been distributed to Coinbase Earn participants since the initiative kicked off. In addition, users from 115 countries have been part of the program in which they not only learned but also could earn cryptocurrencies.

In 2019, Coinbase Earn had equipped its users with the skills to create MakerDAO CDPs. Furthermore, there has been knowledge dissemination on blockchain basics together with operating Brave browsers. This is instrumental to the growth of digital ledger technology (DLT)  as well as expanding the Coinbase market share in the crypto exchange space.

The San Fransisco based digital currency platform said that they have plans to make bigger moves in 2020 as we head for the long-awaited Bitcoin halving. Most notably is an intention to scale the Coinbase Earn portfolio by adding more campaigns that will promote blockchain technology. This also will involve linking blockchain platforms and bringing crypto closer to potential users through their interactive campaigns under Coinbase Earn.

Latest Coinbase News and Updates

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Author: Lujan Odera