New Research Confirms Bitcoin Is Less Volatile Than Many Stocks

Hey Redpiller Readers,

A few more days before Thanksgiving day! 

Thinking of what meal to gobble up with the fam bam? Lots of turkey, we hope. And one more thing. Don’t forget to tell your family about all your crypto gains.

But now…

Let’s jump right in. Here we go. Some updates over the past few days to get your holiday conversation even more interesting. 


BITCOIN IS LESS VOLATILE THAN MANY STOCKS, VAN ECK’S RESEARCH REVEALS

Well, this is a huge surprise… Van Eck, an investment management firm, unexpectedly revealed crazy new research. 

The result? The fact that the volatility of Bitcoin’s price is actually less volatile when compared to traditional stocks. Who knew?

Here are the details...

  • Bitcoin’s volatility trend is lower than 112 stocks on the S&P 500 during a 90-day period and lower than 145 stocks YTD (year-to-date). 

  • 29% of the S&P 500 stocks are more volatile than Bitcoin while 22% exhibited more volatility trends during a 90-day period. 

And mind you, the Bitcoin fans did not just make these stats up. It’s the research of a reputable investment firm.

Time for the sheep to wake up? It’s certainly a clap back for the naysayers who warned against a Bitcoin investment and those that even called the movements of cryptocurrency’s price a ‘meteoric rise and fall’ and nothing more.

Boy, were they wrong. 

And guess what’s even more interesting… How about the fact that Van Eck describes itself as ‘the leader in gold investing’ - meanwhile, gold is a competitor asset to Bitcoin. That’s gotta tell you something.

Reports say that of Van Eck’s nearly $50 billion managed assets, majority are linked to gold. In fact, the company has long founded the popular Gold Miners ETF. 

THE TAKEAWAY

Building confidence in the cryptocurrency… Some speculate that the purpose of Van Eck’s research is to allay SEC fears than to encourage investors. 

Regardless… This notable research is likely to work as a charm in easing concerns from both the SEC and crypto investors on the alleged extreme volatility. In other words? When it comes to the BTC price, no need to fear. 

Stay calm and hodl on, friends.

But first, some context: If you don’t know what “hodl” means, listen up…

Hodl is slang in the cryptocurrency community for holding the crypto rather than selling it. A person who does this is known as a Hodler. 

And this goes way, way back…

It originated in a December 2013 post on the Bitcoin Forum message board by an inebriated user who posted with a typo in the subject, "I AM HODLING."

Holding, hodling – same thing – but now you know!

BITCOIN SHORTAGE? NO WORRIES, SAYS EXPERTS

Quick throwback to last week: PayPal allowed all its users in the US to buy, hold, and sell crypto. That contributed to the BTC price rise we’ve been seeing.

And...

Just this weekend, the impact of PayPal’s crypto services have started to be felt across the crypto market. But we’ll say, it was a trend our US-based crypto firm saw coming.

As a result...

Bitcoin’s price spiked – and it was all thanks to the big boys. 

We’re talking about big companies, like PayPal and Square’s Cash App, and them buying 100% of all newly-issued bitcoins

Yep, you read that right. 

That’s why, crypto investment firm, Pantera Capital, claims that with these companies buying Bitcoin in large amounts, a Bitcoin shortage is possible. 

But should small crypto traders worry? Well, experts say there’s nothing to worry about. Who are these experts exactly? Pedro Febrero, an analyst at Quantum Economics, says that while Bitcoin supply may be limited because of these large purchases, the big companies will eventually need to sell it. 

And besides… he added, “not all Bitcoin is simply being hodled.” 

On the same vein… Shawn Dexter, Quantum Economics’s finance analyst, claims that these companies’ mass crypto acquisition will help ‘increase the underlying security of the network, furthering the store of value offering.’

THE TAKEAWAY

With big companies betting on the cryptocurrency, it’s expected to cause a supply reduction for quite some time. 

But here’s the deal: A real Bitcoin shortage triggered by the large buys of giant companies is simply a step towards mass adoption. PayPal buys are expected as the company opened the door to its crypto trading services (to cater to its millions of users). 

And the thing is… logically, bigtime companies like PayPal will eventually sell their digital assets and return it to circulation. What does this mean? It means the selloff is a sure-fire way to level the cryptocurrency price. 

So, chill out! 

ETHEREUM’S PRICE SKYROCKETS TO $600 

Who doesn’t love a little ETH price action? Ethereum fans scored the best trades on Monday as its value soared to $600, the highest price spike since June 2018. 

Moonshot mindset: ETH crypto heads see its price going to the moon, long-term. And this price movement is a good start. In fact, the price surge comes just three days after it breached the $500 mark in November 2020. 

But again, let’s look at the data... 

  • Ethereum’s price recorded a remarkable increase since August 2020. It’s up by $389 or a 54% increase since then.  

  • PLUS, Ethereum’s market cap has risen to $66 billion. A 28% spike in the last month and 34% in the last three months. 

So what’s triggering Ethereum's price hike?

Well…

For those in the ETH community, you already know it’s all about... 

The upgrade: Reports noted that the value surge of Ethereum stems from the hype of the impending launch of Ethereum 2.0

The cryptocurrency upgrade is made to resolve the ‘coin’s scalability issues.’ It will remove miners from the network to optimize the settlement of transactions. 

THE TAKEAWAY

Our firm predicts Ethereum’s rise to be part of a big, long-term trend.

Why? 

Because of its upgrade. Its use cases. Its founder, Vitalik Buterin, a Russian genius (and our future crypto overlord). It’s dev progress and community. 

And much, much more.

But listen...

The second largest crypto platform in the world by market cap is expected to dominate the market for the foreseeable future, next to the almighty king, Bitcoin. 

Its historical trend shows it can easily withstand the volatility, too.

Plus…

Its price movements are attracting wide support from many new investors. And let’s be honest, there’s nothing wrong with that. 

The more, the merrier.

Best case scenario: It will put Ether traders in an interesting place. From a little margin of profit, they are expected to make mind-boggling profits as the cryptocurrency is set to surpass the $600 mark in the coming weeks. 

Our firm has our eyes set on $1,000 ETH in the mid-term... 

So, be on the look-out for that!

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