Connect with us

Bitcoin

How to Invest in a Decentralized Economy?

Published

on

Australian-born Michael Dunworth, CEO of Silicon Valley-based blockchain Wyre, has said that financial advisors should invest in Bitcoin to understand the currency better in the decentralized economy.

In a report from the Financial Standard, Dunworth said:

“You don’t have to break the bank. You could invest $10, $100 or $1,000 worth of bitcoin.”

What better way, after all, to fully understand the inner workings of a decentralized economy than by investing in it?

Of course, such a task for the average person on the street may be easier said than done. Many people may be put off by the idea of investing their hard-earned money, let alone what they should invest in. Add to the confusion digital currencies such as Bitcoin and Ethereum and countless people may consider it too much of a task to undertake.

Yet, it doesn’t have to be that way. As digital currencies and the use of the blockchain technology continues its upward trajectory, new opportunities are coming on the market for people to invest. But, with past and current initial coin offerings (ICOs) delivering over 500 digital currencies, which are being traded daily, how can someone searching for a way to diversify their investment portfolio, with the right tokens and digital currencies, enter the crypto space? And when is it the right time to do so?

According to Sydney-based billionaire Mike Cannon-Brookes, who is the co-founder and co-CEO of software firm Atlassian, who has invested in Bitcoin, he tweeted data that indicated $10,000 worth of bitcoins in July 2010 would be worth nearly $150 million with today’s exchange rate.

Unfortunately, unless one is gifted with the sight to see into the future, knowing what to invest in and when can be an uphill struggle for some.

However, whether someone is turning to the decentralized economy for the first time or they are a seasoned investor who wants to acquire and invest in assets without any hassle, The Token Fund provides an avenue for potential investors to break into the crypto space.

What is the Token Fund?

The Token Fund – also be known as a Coin Traded Fund (CTF), which is analogous to exchange traded-funds (ETFs) where you buy shares of a portfolio that tracks the yield and return of its native index – aims to achieve a straightforward process for an investor to invest in the decentralized economy. By doing so, it enables even those with little digital currency knowledge to jump on board and invest in digital assets.

With cryptocurrencies such as Bitcoin and Ether having a correlation close to zero with the real economy, they present a viable alternative hedge against financial crises. However, while ETFs hold over $2.6 trillion of assets globally, are being utilized by a growing number of investors in various markets, and is expected to account for $5 trillion of assets by 2020, according to PricewaterhouseCoopers (PwC), digital currencies still remain outside of ETFs.

At present, there is no digital currency market index in existence. The Securities and Exchange Commissions (SEC) rejection of the Winklevoss twins Bitcoin exchange traded-fund (ETF) in March dashed those hopes. However, while the SEC reconsiders its previous rejection decision, investors require another source of direction to turn to where they can gain optimal exposure in the cryptocurrency space.

As such, The Token Fund’s CTF has been developed that will act as an index with fund managers Viktor Shpakovsky and Vladimir Smerkis responsible for making investment decisions, providing efficient, transparent and provable operations, and ensuring security and taking contingency measures.

Once users sign up, they can deposit Bitcoin or Ether into the project wallet, upon which they will receive a specific number of TKN tokens, depending on the deposit amount and the fund’s capital each day.  Investors also have the option of selling their TKN tokens back to The Token Fund before cashing out. TKNs are based on the Ethereum blockchain, which ensures the development of a complex system with low costs compared to Bitcoin.

In practice, though, the use of an index is only applicable depending on the market capitalization of known currencies. The Token Fund is structured primarily on market capitalization; however, it also focuses on trading volume too. Therefore, digital currencies with an average daily turnover of less than $100,000 for the past six months are automatically excluded from the portfolio. Bitcoin and Ethereum make up just under 60 percent of the portfolio. However, in order to represent a constantly adjusted cross-section of the decentralized economy with the most potential, The Token Fund also focuses on other tokens such as Ethereum Classic, Monero, Storjcoin X, Zcash and Dash to name a few.

In order to account for any changes in the market, The Token Fund portfolio will rebalance based on set rules to ensure the continued growth of the fund.

Strong Performance from The Token Fund

Since the arrival of the fund on 24 March, the TKN price has risen from $10 to just over $23 on 18 May. As can be seen from this graph, which is available to anyone and updated daily, the funds portfolio volume in TKN tokens rose from 131 at the end of April to 394 on 17 May. This data is available to view here, which is updated every 12 hours.

The Rise of Digital Currencies

The year 2017 has, so far, been a great year for digital assets. While Bitcoin has continued to reach new all-time highs, achieving $2100+ this May, other currencies too have attained new heights.

For the first time in May, Ethereum scaled to above $100. For a digital currency that was trading around $8 in January, Ether has progressed in leaps and bounds, illustrating that it has what it takes to push barriers. Litecoin has also pushed ahead to reach new heights after remaining stagnant within the $3-5 price range for a few years to now trade around $26. The news of San Francisco-based Bitcoin exchange Coinbase announcing that it was adding support to the currency on its wallet platform also helped bump Litecoin’s price up. Whereas, Ripple, which recently overtook Ethereum to claim the number two spot before Bitcoin, saw its market cap value soar to over $14.5 billion after the XRP token climbed to as much as $0.33, representing a roughly 40 percent increase in 24 hours, according to CoinMarketCap.

The world of cryptocurrencies and the blockchain is helping to reshape the global economy with more money flowing into digital assets. As such, this is proving a good time to invest and diversify into digital assets, giving an ideal avenue for people interested in removing themselves away from the traditional financial system.

As The Token Funds whitepaper states:

“Growing interest in such assets may be promising something big, perhaps a revolution similar to the one the Internet provided in the early 90s.”

Featured image from Shutterstock. Story image from The Token Fund.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...





Feedback or Requests?

2 Comments

2 Comments

  1. rdcglobal

    May 22, 2017 at 8:41 pm

    Cool i think this Token Fund is better than GBTC which is always way overpriced compared to its bitcoin holding value.

  2. carls4096

    May 23, 2017 at 2:30 am

    The idea and the product is quite good but the cost is a bit high IMO. As written in the white paper the deposit fee is 5% AND the exit fee is 5%. If you invest 20.000$ just 19.000$ are arriving in the fund. Let’s say after 6 month the 19.000$ become 25.000$ and you withdraw then 1250$ gets deducted. Total cost 2250$.

You must be logged in to post a comment Login

Leave a Reply

Bitcoin

New Bitcoin Core Release Prevents Miner DoS Attack

Published

on

The Bitcoin Core development team released an important update yesterday that patches a crucial security vulnerability. Bitcoin is usually known as the most hackproof and secure blockchain, which makes any vulnerability in the network incredibly newsworthy.

Specifically, the patch addresses a potential opening for a denial of service attack within the Bitcoin Core wallet software.

The way the potential exploit could work was by allowing anyone who was capable of mining a sufficient number of proof of work blocks to crash Bitcoin Core nodes running software versions 0.14.0 to 0.16.2.

They made sure to emphasize, however, that stored funds were not at risk. They also warned that derivative software such as Knots are also affected and have their own specific patch for the issue.

That said, the developers made clear that if you only occasionally run Bitcoin Core, it is less urgent to patch, although it would obviously be safest to upgrade as soon as possible.

Upgrading will take between five minutes to half an hour dependent upon the processing power of a given users computer. In addition, users should note that the new wallet will have to redownload the entire blockchain and that downgrading to an older version after the fact is not supported.

The update also fixed a non-insignificant number of minor bugs. I strongly encourage our readers to check out the full instructions on the Github page for Bitcoin Core.

These bugs were:

1. Consensus: 14249 696b936 fixed crash bug with duplicate inputs within a transaction
2. RPC and other APIs: gives an error when an amount is needed but missing
3. Miscellaneous: Invalid flags error should be set to bitcoinconsensus_err
4. Documentation: #13844 11b9dbb correct the help output for -prune

The news could have come at a better time for Bitcoin. There has been mounting uncertainty about whether Bitcoin is trapped in a semi-permanent slump that could continue for years. Those who believe in the untapped power/capabilities of the Bitcoin network continue to wait for solutions like the lightning network to increase the utility of Bitcoin as a true peer to peer electronic cash.

Although this should not concern those who primarily view Bitcoin as a store of value, any whiff of exploits in the network’s inherent security could result in a massive sell-off as core assumptions are demolished. This analyst hopes this is a momentary blip in the promise of Bitcoin. I encourage our readers to reach out to members of the dev team directly for any additional clarifications.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 17 rated posts




Feedback or Requests?

Continue Reading

Bitcoin

Bitcoin’s Third Bear Market Showing Little Sign of Letting Up: Analyst

Published

on

Despite several attempts to rationalize bitcoin’s yearlong downturn, the leading digital currency remains locked in a protracted bear market that is showing little signs of letting up, according to veteran analyst Willy Woo. Based on this view, there’s little evidence to suggest that a reversal is imminent.

Bear Market Continues

In a recent tweet, Woo emphasized that bitcoin’s downtrend is likely to continue for longer and that there was no evidence of a reversal anytime soon. This view is reinforced by a historical analysis of bitcoin’s trajectory, which suggests that sideways trading is the best the market can hope for at the moment.

“Bitcoin has seen only 3 bear markets in its history,” Woo said. “We are in the third one now. One signal we can use to determine the end of the bear is for the price to cross above its 200 day moving average.”

Woo’s position isn’t bearish on the value prospects of bitcoin; it merely suggests that the bulls aren’t out of the woods yet.

The view that bitcoin is still in the middle of a downtrend contradicts several leading opinions on the matter. Wall Street crypto analyst Tom Lee has predicted that a return to record highs is possible this year, while billionaire investor Mike Novogratz has said that an exhaustion of the current downtrend will likely generate a bullish reversal in the foreseeable future. Although some of these viewpoints are backed by fundamental research, fear, uncertainty and perhaps manipulation have undermined bitcoin’s revival. This comes despite a wave of positive developments regarding institutional adoption, business innovation and even regulation.

As Hacked recently showed, bitcoin’s latest price collapse appears to have been set in motion by a prominent whale moving hundreds of millions of BTC and BCH to multiple wallets. A large chunk of those assets were then transferred to leading digital currency exchanges where they may have been sold.

BTC/USD Update

Bitcoin is currently trading at $6,331 on Bitfinex, where it is little changed compared with the previous session. Data from CoinMarketCap suggests the BTC price has gained roughly 1% over the past 24 hours on trading volumes of $4.4 billion.

Bitcoin’s momentum indicators suggest lateral moves are likely to continue in the short-term as neither the RSI nor the MACD is showing signs of breaking out. The leading digital currency slumped at the start of the week after failing to make new highs. The BTC price appears to have formed a double-top above $6,500, which eventually paved the way for a reversal.

At current values, bitcoin is capitalized at $109.6 billion, which represents 55.3% of the entire market.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
4 votes, average: 5.00 out of 54 votes, average: 5.00 out of 54 votes, average: 5.00 out of 54 votes, average: 5.00 out of 54 votes, average: 5.00 out of 5 (4 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 604 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Analysis

Crypto Update: Market Remains Weak Despite Ripple’s Surge

Published

on

Ripple made headlines today in the cryptocurrency segment, as the third largest coin jumped by more than 15% after trading in a narrow range for several days. Most of the major coins joined the rally, but the gains were muted and the technical setup remained unchanged in most cases, with the long-term outlook still being bearish, while the short-term picture remaining mixed.

Ethereum, which has been in the center of the trends in the segment for weeks rallied back above $200, but stayed below the recent swing high, leaving several questions unanswered concerning the short-term trend. Bitcoin also got stuck near the $6275 level yet again, and the total value of the market is still below the $200 billion mark, with still no clear signs of major capital inflows in the segment.

ETH/USD, 4-Hour Chart Analysis

Ethereum quickly recovered above $200 after dipping below the weekend lows yesterday in late trading, retaining the short-term buy signal in our trend model. That said the coin still needs to show stronger bullish momentum to avoid a resumption of the clearly declining long-term trend. As sustained dip below $200 would still warn of a move to last week’s lows, while a move above $235 would open up the way towards $260 and the confluence resistance near $275.

BTC/USD, 4-Hour Chart Analysis

Bitcoin has been showing weakness in the last couple of days, and although the coin is still on a short-term buy signal, similarly to Ethereum, a quick recovery above $6500 would be needed to avoid a bearish turn.

Traders should hold on to their positions here, but given the still bearish segment-wide trends, we still don’t advise full positions even in the stronger coins. Below $6275, weaker support is found at $6000, close to the key long-term zone near $5850, while resistance is ahead at $6500, $6750, and $7000.

Ripple Needs Follow Through For a Buy Signal

XRP/USDT, 4-Hour Chart Analysis

While today’s spike in Ripple is encouraging, the coin needs to show further signs of strength, as the recent sudden spikes in the majors were quickly sold as the bearish trend remained dominant in the segment.

With that in mind, despite the broken resistance levels, XRP remains on a neutral short-term signal in our trend model, while still being bearish from a long-term perspective. The coin is currently trading right at the $0.32 level, with support found at $0.3130, $0.30 and near $0.30, while strong resistance is ahead at $0.35.

DASH/USD, 4-Hour Chart Analysis

Dash is among the stronger coins from a short-term technical standpoint, trading in a bullish consolidation pattern just below the key $200 level. That said, the coin failed to show strength today amid Ripple’s rally, and that still points to a dominant bearish trend in the segment. With that in mind, traders should wait for further positive signs before entering new positions, especially since a bullish leadership still hasn’t developed.

IOT/USD, 4-Hour Chart Analysis

IOTA is still weaker than average, together with NEO, EOS, and ETC, and the coin is still just above the August lows, clearly being in a broad downtrend, despite holding up above the lower boundary of its short-term range. A test of the lows is likely in the coming weeks, and the coin remains on sell signals on both time-frames, with support found between $0.455 and $0.475, and near $0.405, and with key resistance ahead near $0.57 and $0.64.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
4 votes, average: 4.75 out of 54 votes, average: 4.75 out of 54 votes, average: 4.75 out of 54 votes, average: 4.75 out of 54 votes, average: 4.75 out of 5 (4 votes, average: 4.75 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 348 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending