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BNB$477.91

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CoinShares: "Bitcoin Is Like a Risky Tech Stock"


12 Aug 2020

#Bitcoin

Behaving like a tech stock means Bitcoin carries the same high risk and high reward opportunities as a fledgling startup. Bitcoin acts more like a tech startup stock than digital gold — with investors reaping big rewards if it works but potentially losing everything if the crypto asset fails.

That’s the conclusion of an Aug. 10 report from digital asset manager CoinShares titled A Little Bitcoin Goes a Long Way. In it authors James Butterfill and Christopher Bendiksen argue that the fact Bitcoin (BTC) “starting its life at a price of zero” gave it a stellar reputation.

“If it reaches its potential, the value could be immense,” the report stated. “At the same time, there is a non-zero chance that it fails entirely, leaving the value of Bitcoin close to zero.”

Unlike many experts who suggest setting aside 1% of a portfolio for cryptocurrencies, CoinShares suggested investors allocate “just under 4%” for Bitcoin alone.

The firm tested Bitcoin as a reliable store of value by seeing how the cryptocurrency performed as part of a balanced 60/40 portfolio. It’s analysis indicated that the token enhanced annualized returns by 9.7% starting from 2015, almost double comparable assets.

Beginning to mature into store of value


Behaving like a tech stock is no bad thing. Since the crypto bloodbath in March, tech stocks have gained enormous ground. The price of Amazon rose 70.7% to $3,170, Apple rose 63.3% to $450, Facebook 54.5% to $263, and Google 23.6% to $1,496.

The report comes after a period of volatility with Bitcoin testing the $12,000 threshold for the first time since 2019. 

“Bitcoin is an asset in its infancy,” the Coinshares report states. “As Bitcoin matures, its robustness is further proven, and its risk of failure moves further and further away from zero, we believe investors will start treating it differently, leading its macroeconomic behaviour to follow suit.”

Source


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 66.8% 67 $61 588.76 3.87% 12.21% $1 160 654 808 429 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 66% 66 $3 935.76 4.02% 8.99% $464 217 131 709 ETH 7 days price change
3 Binance Coin (BNB) BNB Binance Coin predictions 72% 61 $477.91 4.02% 12.77% $80 354 124 867 BNB 7 days price change
4 Cardano (ADA) ADA Cardano predictions 84.8% 27 $2.23 3.45% -1.97% $73 223 941 889 ADA 7 days price change
5 Tether (USDT) USDT Tether predictions 94% 1 $0.999808 -0.07% -0.05% $68 747 855 911 USDT 7 days price change
6 XRP (XRP) XRP XRP predictions 71.6% 56 $1.16 3.94% 6.41% $54 401 475 546 XRP 7 days price change
7 Solana (SOL) SOL Solana predictions 71.6% 55 $162.44 2.24% 1.85% $48 775 462 180 SOL 7 days price change
8 Polkadot (DOT) DOT Polkadot predictions 68.4% 57 $43.27 8.10% 24.77% $42 734 879 170 DOT 7 days price change
9 USD Coin (USDC) USDC USD Coin predictions 95.6% 1 $0.999981 -0.03% -0.01% $32 808 075 707 USDC 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 69.2% 59 $0.239602 5.33% -2.96% $31 560 175 921 DOGE 7 days price change
11 UniSwap (UNI) UNI UniSwap predictions 70.8% 57 $26.42 2.81% 3.61% $16 156 779 856 UNI 7 days price change
12 Terra (LUNA) LUNA Terra predictions 69.2% 59 $38.10 3.77% -12.78% $15 312 748 081 LUNA 7 days price change
13 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 68% 66 $61 590.13 3.85% 12.20% $13 289 021 167 WBTC 7 days price change
14 Litecoin (LTC) LTC Litecoin predictions 72.8% 60 $190.95 6.14% 5.63% $13 130 242 173 LTC 7 days price change
15 Binance USD (BUSD) BUSD Binance USD predictions 93.6% 1 $0.999959 -0.05% -0.02% $13 073 024 181 BUSD 7 days price change

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