Bitcoin has been touted as “the” safe-haven asset, uncorrelated from the lechery of the traditional financial market. This week, Bitcoin’s uncorrelation has again been brought up by Bitcoin evangelist’s, but what do they mean? With all this talk about correlation and safe-haven assets, let’s look into Bitcoin’s asset correlation and safe-haven status.
Asset Correlation determines the extent to which two or more assets are dependent on one another. By determining a correlation between assets, investors can observe the direction and magnitude of a relation between assets and can construct portfolio’s that minimize their market risk.
The scale of the correlation coefficient ranges between 1 and -1, with 1 indicating perfect positive correlation and -1 indicating perfect negative correlation. If assets are perfectly uncorrelated, the coefficient is 0. When assets are positively correlated, they move in the same direction with one another, if they are negatively correlated, they have an inverse relationship. …
Blockchains are singular entities with unique characteristics. Hence, many blockchain ecosystems lack interoperability, resulting in cross-industry fragmentation. This week, we will be looking into some of the projects responsible for facilitating greater interoperability between differing blockchains.
Decentralized finance (DeFi) projects have been the absolute hype over the past months, yet have consequently crashed. In the wake of this market downturn, on Wednesday, Atomic Finance announced its departure from the Ethereum DeFi ecosystem. Following this announcement, a high-profile twitter storm raged, questioning Ethereum’s validity as a decentralized project. This begs the question, may DeFi be moving to Bitcoin?
At present, 204 out of a total of 250 listed DeFi projects call Ethereum’s blockchain home. The reason for this is due to the ease at which DeFi projects can utilize essential DeFi tools, such as protocols (smart contracts) and technical standards (ERC-20). …
This week, the digital pet Non-Fungible Token (NFT) game, Axie Infinity (AI), has grabbed the headlines. With a 172% surge in player activity this week, AI has clinched the 4th spot on the most playable blockchain games. Spurring this increase in activity is a $162,000 purchase of five Axies (pets) by independent research and consulting group Delphi Digital.
In 2020, the number of innovative and ambitious projects stemming from decentralized finance (DeFi) is mind-boggling, with an industry market cap just under $13 billion. However, another project making waves throughout the industry is the Non-Fungible Token’s (NFT’s) sector. With a staggering $3.5 million of sales made just last week, there is no surprise that predictions see the NFT market cap increasing from $113 million to $315 million by the end of 2020. NFT’s are definitely heating up!
DeFi, the place where sushi chefs ‘vampire mine’ unicorns and where unicorns rise from the dead — only to devour the sushi that buried them six feet under to begin with…
Thus begins the tale of Uniswap, a project seemingly dead in the water after its patricidal kin Sushiswap drained 80%($1.27 billion) of its liquidity pool (LP) within 3 days. Now, a mere two weeks after Sushiswap’s collapse and migration of $830 million from Uniswap, Uniswap launched its own token “UNI” on Wednesday. …
A mere two-weeks old and DeFi’s newest creation, Sushiswap has caused the uproar of 2020 in the crypto community. Conceived on the 28th of August, Sushiswap drained 80%($1.27 billion) of its forerunner’s, Uniswap, liquidity pool (LP) — within 3 days of launching. To add salt to the wound, on the 5th of September, the previously unknown creator of Sushiswap “Chef Nomi”, sold all his SUSHI tokens for $13 million worth of ETH. Then, he relinquished his powers at the helm of the infant company.
Cryptocurrencies have taken the world by storm. These digital assets with decentralized structures had values that kept on leaping high, attracting several investors around the world. As a result, investors have had their fair share of profits from trading virtual currencies.
But how about taxes associated with cryptocurrency? Turns out that if you’re a crypto investor, you need to pay due taxes as well. Cryptocurrency tax rules were first enforced by the IRS in 2014. These policies were further strengthened by the end of 2019.
If you’re unsure about the facts regarding taxes in cryptocurrency activities, we have created this quick simple guide for…
…and he’s using the Secret Service to do it.
With the recent news in the past couple of weeks, one thing seems to be very clear: Cryptocurrencies are seen for their potential to do harm rather than good.