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Bitcoin Outperforming the Stock Market By a Whopping 10 Times in 2019

Getting towards the end of the first half of 2019 and Bitcoin has outpaced the stock market by almost 10 times.


2019 Scorecard: Bitcoin 111%; Stock Market 12%

Tweeting on Friday, Morgan Creek Digital CEO Anthony Pompliano noted that Bitcoin price 00 is up by about 111 percent in 2019. Meanwhile, by comparison, stocks have risen only 12 percent within the same period.

Between April and May alone, BTC has added $2,000 to its market price. Such is the extent of Bitcoin’s 2019 run that as eToro’s Mati Greenspan puts it:

At this point, a $200 move in the price of Bitcoin could easily lead to a move of $2,000.

Speaking recently to CNBC, billionaire venture capitalist Tim Draper pointed out the emergence of investor fatigue for some of the companies like Uber that have newly gone public.

According to Draper, established brands going public aren’t going to experience massive price growths. Instead, Draper expects stock value increases between 10 and 20 percent.

Bitcoin bulls, however, don’t envisage any price fatigue for the top-ranked cryptocurrency by market capitalization. BTC has so far remained in close proximity to the $8,000 mark in May despite a few downward retracements.

BTC is a Great Diversifier

In an interview with CNBC on Wednesday (May 22, 2019), Mark Yusko, the Managing Director of Morgan Creek Capital Management described BTC as a great investment portfolio diversifier.

As previously reported by Bitcoinist on several occasions many commentators have said that BTC ought to constitute at least one percent of every investment portfolio.

Yusko also espoused sentiments similar to Pompliano’s saying Bitcoin is a better investment bet than stocks. Back in early 2019, Yusko highlighted Bitcoin’s potential, calling it the greatest wealth opportunity of our time.

Stock Market Decline Imminent

Bitcoin’s stock as a great investment portfolio diversifier might come into even more significant prominence on the back of an imminent market decline.

According to Yusko, the Federal Reserve saying they are closer to slashing interest rates indicates the emergence of economic weakness.

Central banks across the world from Japan to Australia and even the European Central Bank (ECB) are also reportedly on course to adopt similar dovish monetary policies.

The historical precedence shows that rate cuts tend to lead to market weakness as seen in 2001 or even full-blown meltdowns like in 2008.

For people like Travis Kling of Ikigai Asset Management and Max Keiser, BTC represents a hedge against the fallback from such “irresponsible” central bank policies.

By how much do you predict that Bitcoin will outperform the stock market at the end of 2019? Let us know in the comments below.


Images via Shutterstock, Twitter @APompliano, @CNBCFastMoney

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Weiss Ratings: Bitcoin Correction The Best Buying Opportunity Since 2015

Weiss Ratings believes that bitcoin price surging to $8,373 will open the doors to a once in a lifetime purchasing opportunity.


Weiss Says Buy the Dip

On Thursday Weiss Ratings tweeted that Bitcoin’s current technical setup presents the best purchasing opportunity for investors since 2015.

The independent rating agency based their assessment on analysis from their chief crypto analyst Juan Villaverde.

The analyst explained that Bitcoin’s recent surge to a 2019 high at $8,373 has primed the market for an impending correction that will represent the greatest purchasing opportunity since 2015.

According to Villaverde, similar price action occurred in 2012 and 2015 and the cryptoanalyst explained that:

In January 2012, for instance, after Bitcoin has rallied to $7 per token from its bottom of $2 just months earlier, Bitcoin suffered a 45% correction down to about $4. But that was a launching pad for a bull run that would take Bitcoin into four-digit territory for the first time in its history, hitting a high of almost $1,200 by December 2013.

Villaverde then pointed to an identical occurrence in 2015 when Bitcoin price notched $500 in November only to be followed by a sharp 40% sell-off to $300 a week later.

Will Bitcoin Pull Off a ‘Three-Peat’?

Naturally, investors will be concerned about whether history will repeat itself and the phrase “past performance is not indicative of future results” comes to mind.

Villaverde addresses this valid concern by pointing out that that Bitcoin’s fundamentals have improved significantly over the past year and the fact that Bitcoin usage is near all-time highs, with daily transaction volumes nearly reaching levels not seen since late 2017 is encouraging.

According to him, Bitcoin’s 24-hour transaction volume recently reached a 2019 high of 450,000 and the previous all-time high occurred on December 13, 2017, just a few days before prices reached $20,000.

Weiss also pointed out that Bitcoin network fees remain at their lowest levels since August 2017 despite the consistent increase in transaction volume. Villaverde explained that there is a negative correlation between usage and fees and this is proof that upgrades like SegWit and the Lightning Network were paramount in making this possible.

Overall Villaverde encouraged investors to focus on the positives and reiterated that: the recent major rally confirmed the beginning of a bull market, Bitcoin’s fundamentals have improved the point of supporting increasing price and he cautioned investors to be attentive of an impending sharp correction, which could provide a fantastic purchasing opportunity.

Do you agree with Weiss Ratings advice to buy the next Bitcoin dip? Share your thoughts in the comments below! 


Images via TradingView.com, Twitter, Shutterstock

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10 Fintech Leaders Predict Bitcoin to End 2019 Above $9,500

Ten prominent fintech experts shared their bitcoin price predictions and all agreed that BTC would close 2019 above $9,500, according to Finder.com.


Experts Expect a Bull Market

The US-based comparison website surveyed 10 fintech leaders on their thoughts and projections on 13 cryptocurrencies (including the top-10 by market capitalization) and the participants included executives from BitBull Capital, Arca, and Blocktoken.

The participants were most optimistic about EOS, Binance Coin and Tron as each was forecast to gain 727%, 459%, and 449%, respectively.

When asked whether the current climate is ideal for the average person to invest in cryptocurrency, 5 out of 10 executives agreed that now is a good time to allocate a small portion of portfolio funds to digital assets. 4 survey participants also said that they believe Bitcoin will surpass its $20,000 all-time high during the next bull-run.

50% of the participants believe that the next uptrend will end just like the one in 2017. But while the majority of the participants expected Bitcoin to eventually cool off from its recent parabolic run, the general consensus was Bitcoin would exceed $9,659 by the end of 2019.

Analyst and participant Joe Raczynski said that:

We are entering a new period with Bitcoin. Many of the institutional players have said they are done with this experiment (publicly), which may be the case [but] I think privately, some other hedge funds and other institutions will continue to invest during this lower period.

Altcoins to Outperform Bitcoin in 2019

Surprisingly, Blockchain Capital partner Jimmy Song expects Bitcoin to close 2019 at $5,901 and Song explained that there seems to be some daylight between Bitcoin and other cryptos.

Bitcoin will start being seen as a different asset than all the others,” he said.

Meanwhile, Bitbull Capital’s Sarah Bergstrand said that she expects bitcoin price to “bounce between $3,000 and $5,000 for the next few months.”

The survey results also show that the majority of participants think Cardano (ADA) will wrap up 2019 at $0.14 and the group was fairly optimistic about EOS.

Brenden Markey-Towler from RMIT Blockchain Innovation Hub predicting that

….as EOS transitions with NEO and Ethereum to next-generation consensus algorithms, I suspect their scope as an institutional technology will increase, and their value with it.

Stellar Lumens (XRP) is expected to reach $0.18 by year-end and the group optimistically forecasts that TRON and XRP will close the year at $0.15 and $0.44.

Finder has held its Bitcoin Predictions Panel since January 2018 and interested investors can find the details of each monthly survey here.

Do you agree with these bitcoin price predictions? Share your thoughts in the comments below! 


Images via TradingView.com, Twitter, Shutterstock

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Winklevoss: Sitting on the Sidelines is Crazier Than Investing in Bitcoin

Prominent Bitcoin investor and Gemini Exchange co-founder Cameron Winklevoss says that the future of money is currently being built with Bitcoin and crypto and that it’s ‘crazy’ to be sitting on the sidelines. 


‘The Future of Money is Literally Being Built’

Popular cryptocurrency commentator and a prominent Bitcoin investor Cameron Winklevoss has argued the craziness of investing in the crypto space. He said:

“Some people think it’s crazy to invest in crypto. Maybe. But definitely not as crazy as sitting on the sidelines when the future of money is literally being built before your eyes.”

The Winklevoss twins, in general, have been more than well-known in the space. Earlier in January, they said that Bitcoin will pass the $7 trillion gold market cap.

Mr. Wonderful Disagrees

One of those who seem to believe that investing in Bitcoin is more than crazy is popular TV personality and millionaire entrepreneur Kevin “Mr. Wonderful” O’Leary. Those of you who’ve watched the popular entrepreneur show “Shark Tank” surely know him.

Kevin O'Leary bitcoin

Just yesterday, in a rather heated debate with Anthony “Pomp” Pompliano of Morgan Creek Capital, on CNBC’s SquawkBox, O’Leary argued that there’s no value in owning bitcoin as an asset class. He said:

Where is the value in owning bitcoin as an asset class? Tell me why this, which is basically a digital game, has any intrinsic value. And where is the long-term value? Just this idea that they’re going to cut the number of units in half is just a scam. That’s just total BS.

Despite Pompliano’s arguments, the investor couldn’t seem to wrap his mind around the idea and denied all merits of Bitcoin and other cryptocurrencies as well.

Tom Lee Says Current Bitcoin Bull-Run Has Legs

Speaking on CNBC’s Markets Now, Fundstrat Global Advisors’ head analyst, Tom Lee, discussed the current case for Bitcoin. He outlined that the top ten days in any year account for all the gains for crypto.

tom lee Bitcoin price

However, Lee also said that there’s plenty of reasons to be optimistic. He reiterated on the narrative that Bitcoin “has proven to be digital gold” – something also expressed by the Winklevoss twins themselves.

Lee also mentioned the upcoming Bitcoin halving which is estimated to take place in less than a year from now.

As Bitcoinist reported yesterday, the overwhelming majority of people bullish regarding the effect it will have on the cryptocurrency’s price given historical trends.

What do you think of Bitcoin going forward? Let us know in the comments below!


Images via Shutterstock

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Argentina: Bitcoin Bought at $20K Retained More Value Than the Peso

Bitcoin has proven to be a store-of-value in Argentina where you would have been better off buying BTC at its peak rather than hold the peso.


Argentina Ensnared Political and Economy Turmoil

The Argentinian economy continues to shrink, afflicted by stubbornly high inflation, which President Mauricio Macri, who is running for re-election, has been unable to rein in. Hence, he is becoming increasingly unpopular.

On May 19, 2019, the country’s grim economic outlook became even muddier when former president Cristina Fernandez de Kirchner announced she was running for the vice presidency alongside Alberto Fernandez (her former cabinet chief), in the upcoming presidential elections in October 2019.

Ms. Kirchner made the announcement a few days before the beginning of her trial for alleged corruption offenses related to public works contracts. The trial is scheduled to start on May 21, 2019. Reuters wrote,

Cristina Fernandez is considered by investors to be a riskier prospect because of her past populist policies. She introduced currency controls and tax increases on farm exports while in office between 2007 and 2015.

Fearing that if Ms. Kirchner returns to power it would bring populism back to the country, investors are now more than ever seeking refuge in safe-haven currencies, such as US dollars and Bitcoin.

In effect, Bitcoin’s value in relation to the Argentinian peso and Bitcoin’s trading volumes are reaching all-time highs. Likewise, the US dollar is an all-time high against the Argentinian peso. This set of circumstances will most likely reinforce Argentina’s inflationary spiral.

Argentinians Better Off Holding Bitcoin

Officially, as of March 2019, Argentina’s annual inflation rate reached over 55 percent. But even this elevated rate of inflation is questioned. Economist Steve Hanke argues that when using high-frequency data, the inflation rate in Argentina is over 80 percent.

Such a high inflationary rate significantly erodes the purchasing power of the peso, to such an extent that replacing the peso with Bitcoin to save Argentina’s plummeting economy no longer seems like a crazy idea.

As a result, many are turning their attention to Bitcoin’s deflationary attributes. For example, one strong argument put forward is that Bitcoin is a better store-of-value than the peso.

In this regard, Partner at Sixtant, Josu San Martin, noted:

If an Argentinian had bought Bitcoin at the highest point of the ‘biggest bubble in history,’ in 2017, he would have been better off than leaving his money in his Argentinian bank account. So tell me again how Bitcoin is a horrible store of value.

As a completely new asset class, Bitcoin is still volatile. Nevertheless, in the long run, Bitcoin is proving to be a better (and rapidly appreciating) store-of-value than gold, even more so in a digital economy.

In this regard, Grayscale Investments, one of the largest cryptocurrency asset managers, details key features to highlight Bitcoin’s superiority to gold in, verifiability, divisibility, durability, fungibility, portability, and recognizability.

Moreover, a compelling and most relevant argument for the Argentinian economy is Bitcoin’s inflation-resistant nature, which is strengthened by its scarcity. Only 21 million bitcoins will ever be created by around the year 2140.

Furthermore, Grayscale compares the cryptocurrency to gold in the features shown in the chart below.

To save the failing economy, President Macri has already received advice to bear Bitcoin in mind. In March 2019, serial investor Tim Draper advised him that to attract foreign investors he must dramatically transform Argentina’s economy and replace its peso with Bitcoin.

How do you think that Bitcoin can help Argentina to minimize inflation? Let us know in the comments below.


Images via  Grayscale, Shutterstock

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