Weekly Round-up — 29/1/21
Price Changes and Market Fluctuation
In the news this week is the world’s richest man and Tesla owner, Elon Musk, who has recently changed his Twitter description to simply read ‘#Bitcoin’. This has caused the price of Bitcoin to skyrocket, with an increase of 16% in the last 24 hours to over $37k. Does this mean Bitcoin will be seen more as a mainstream currency soon?
Elon Musk isn’t the only CEO who has an interest in cryptocurrency, as Ari Paul believes that institutions are investing into Bitcoin to stay rich. The co-founder and CIO of BlockTower Capital perceives institutional investments as a safety net for large organisations, jumping on the Bitcoin bandwagon in case it continues on an upward trend as a result of FOMO.
This could be the reasoning behind Marathon Patent Group, a Bitcoin mining company, investing $150 million into Bitcoin as a part of their long-term strategy due to the increase in value it has over gold.
Could purchasing Bitcoin now still be an amazing decision for Marathon Patent Group? American investor, Bill Miller, believes that not investing in Bitcoin would be a ‘Massive mistake’. He references the success of Bitcoin since its release and is confident that it will continue in a similar pattern as demand increases.
Popularity of cryptocurrency
It would seem that around 13% of the UK population may avoid this ‘massive mistake’ as a Gemini Survey concludes that over 1 in 10 Brits have already invested in cryptocurrency as it continues to increase in popularity. It also seems that people in all walks of life hold an interest in crypto, with the most popular investors interestingly being Middle-aged men. It’s predicted that more than half of the UK population would have invested in a form of cryptocurrency, either directly or indirectly via inclusion into other funds, by 2025.
Future of cryptocurrency
Look at the future of crypto, experts believe that Ethereum shows ‘Exceptional Signs of Strength’ as it nears yet another ATH (All Time High). Having seen a 14% increase in the past 7 days could Ethereum surpass $1,500 by next week?
In other news, Stellar (XLM) has invested $5 million into Wyre helping to facilitate fiat conversions. Over 450 million transactions have taken place since it was launched in 2015 and Wyre could help to further increase this number through widening the options for customers in addition to improving the processing capabilities of XLM.
Cryptocurrencies are generally not regulated and investors do not have access to recourse or compensation schemes such as, for example, in the UK, the Financial Ombudsman Service or the Financial Services Compensation Scheme. Investing in cryptocurrencies can be high risk and investors should carefully evaluate their appetite for risk and their understanding of trading cryptocurrencies prior to entering into a transaction.