Diversification Within Diversification – Crypto and Precious Metals

Economics 101 sees the relationship of supply, demand and price firmly established. You then have utility tokens such as Ethereum and Ripple adding a different dynamic to the crypto space and rounding out the ‘big 5’ market cap coins. Both Ethereum and Ripple are essentially technology platforms …

Diversification Within Diversification – Crypto and Precious Metals

As we wrote recently here, there is no more important investment vehicle to have truly diversified than your SMSF. True diversification can be further achieved or enhanced within an asset complex.

For instance diversification into precious metals bullion, a wonderfully uncorrelated asset, is further enhanced with a spread between gold, silver and even platinum. Gold demand is predominately the investment, safe haven monetary asset and jewellery source these days as industrial use is very limited. Silver demand on the other hand is around half investment and half industrial use, meaning it can benefit from different economic environments or drivers. There are interesting dynamics in the price ratio between gold and silver over time as well. Currently that gold:silver ratio is at an historically very high 80:1. Such a high often sees silver outperform gold as it mean reverts. The average over the last century is around 45:1 meaning the order of outperformance can be very significant, especially as the reversion usually happens in lockstep with a surging gold price.

The same is the case for the digital asset or ‘crypto currency’ space. For example Bitcoin, Litecoin and Bitcoin Cash are monetary plays in that they are a store of wealth and a medium of exchange within a predetermined and limited ultimate supply, or number of ‘coins’. That latter point means, like gold and silver, they have intrinsic value by virtue of rarity. Economics 101 sees the relationship of supply, demand and price firmly established.

You then have utility tokens such as Ethereum and Ripple adding a different dynamic to the crypto space and rounding out the ‘big 5’ market cap coins. Both Ethereum and Ripple are essentially technology platforms utilising, and allowing users to utilise, the blockchain

Ethereum is the most famous and most widely adopted utility token. Quora.com described it well:

“Ethereum is a ledger technology that companies are using to build new programs. Both Bitcoin and Ethereum operate on what is called “blockchain” technology, however Ethereum’s is far more robust. If Bitcoin was version 1.0, Ethereum is 2.0, allowing for the building of decentralized applications to be built on top of it.

In a nutshell: it’s great for innovation.

Furthermore, there is heavy support behind Ethereum’s technology in what is called The Enterprise Ethereum Alliance. This is a super-group of Fortune 500 companies that have all agreed to work together to learn and build upon Ethereum’s blockchain technology—otherwise referred to as “smart contract” technology. In this case, “smart contracts” mean that demanding business applications can automate extremely complex applications.”

In simple terms Ethereum is the engine and the ETH tokens you buy are the fuel for that engine. The more use, the more fuel needed.

Ripple on the other hand is so far exclusively used by big institutions such as banks. Ripple facilitates the likes of banks transferring any sort of asset, be it local currency, international currency between different sovereign states, gold, or any other asset such as air miles. It allows for instantaneous transfers and hence rivals old, slow, centralised systems such as SWIFT. Ripple had an enormous run up late last year as more and more financial institutions, particularly in Japan and South Korea came on board.

All of this is facilitated by the blockchain and it is the blockchain that will completely disrupt all manner of industries and archaic processes we take for granted. It’s why the Ginni Rometty, the Chairman, President, and CEO of IBM said “Blockchain will do for trusted transactions what the Internet did for information.” To paint this as a fad will see many lose out on the ‘early adopter’ gains that could be made in investing in its future.

There are many and varied crypto currencies on offer. Some are small and new and many even scams. Others, like the 5 just mentioned are older, robust, very large, and very much both still in their formative years and here to stay.

Ainslie Bullion is Australia’s largest bullion and crypto dealer and allows individuals and SMSF trustees to buy both bullion and these large cap cryptos in a secure, SMSF compliant, auditor friendly manner and in larger amounts that are very difficult to buy elsewhere. You can also easily swap between bullion and crypto as well. Last week we talked about the opportunity possibly presented by the recent ‘correction we had to have’. Click here, to read that article.

Diversification Within Diversification – Crypto and Precious Metals
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Last Updated: 23 February 2018 Published: 23 February 2018

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Siacoin (CRYPTO:SC) Price Down 14.5% Over Last Week

Ethereum Classic (ETC) traded down 6.8% against the dollar and now trades at $33.92 or 0.00342994 BTC. RaiBlocks (XRB) traded up 32.3% against the dollar and now trades at $18.58 or 0.00186028 BTC. Bitcoin Gold (BTG) traded 4.7% lower against the dollar and now trades at $120.70 or …

Siacoin logoSiacoin (CURRENCY:SC) traded 11.9% lower against the dollar during the one day period ending at 2:00 AM ET on February 8th. In the last seven days, Siacoin has traded down 14.5% against the dollar. One Siacoin coin can now be purchased for approximately $0.0224 or 0.00000226 BTC on major cryptocurrency exchanges including HitBTC, Bittrex, Poloniex and Abucoins. Siacoin has a market capitalization of $730.70 million and approximately $16.76 million worth of Siacoin was traded on exchanges in the last day.

Here is how other cryptocurrencies have performed in the last day:

  • Bitcoin (BTC) traded 8.2% lower against the dollar and now trades at $10,007.40 or 1.00000000 BTC.
  • Ethereum (ETH) traded 2.6% lower against the dollar and now trades at $844.60 or 0.08540090 BTC.
  • Bitcoin Cash (BCH) traded down 9.3% against the dollar and now trades at $1,206.37 or 0.12198100 BTC.
  • Litecoin (LTC) traded 10.5% lower against the dollar and now trades at $195.83 or 0.01980150 BTC.
  • Monero (XMR) traded down 12.9% against the dollar and now trades at $278.84 or 0.02819430 BTC.
  • Ethereum Classic (ETC) traded down 6.8% against the dollar and now trades at $33.92 or 0.00342994 BTC.
  • RaiBlocks (XRB) traded up 32.3% against the dollar and now trades at $18.58 or 0.00186028 BTC.
  • Bitcoin Gold (BTG) traded 4.7% lower against the dollar and now trades at $120.70 or 0.01220500 BTC.
  • Zcash (ZEC) traded 11.1% lower against the dollar and now trades at $394.20 or 0.03985900 BTC.
  • Nano (NANO) traded up 10% against the dollar and now trades at $9.78 or 0.00098862 BTC.

Siacoin Profile

Siacoin is a proof-of-work (PoW) coin that uses the Blake2b hashing algorithm. It launched on June 6th, 2015. Siacoin’s total supply is 32,666,149,670 coins. The Reddit community for Siacoin is /r/Siacoin and the currency’s Github account can be viewed here. Siacoin’s official Twitter account is @SiaTechHQ and its Facebook page is accessible here. Siacoin’s official website is sia.tech.

According to CryptoCompare, “Sia is an actively developed decentralized storage platform. Users all over the world contribute disk storage from their computers to form a decentralized network. Anybody with siacoins can rent storage from hosts on Sia. This is accomplish via “smart” storage contracts stored on the Sia blockchain. The smart contract provides a payment to the host only after the host has kept the file for a given amount of time. If the host loses the file, the host does not get paid. The distrubuted nature of the Sia network enables many optimizations in latency, throughput, reliability, and security. The decentralized nature of the Sia network enables anyone with storage to get paid, lowering the barrier to entry and reducing the overall price of cloud storage. The Sia cryptocurrency is live! You can rent storage using siacoins and hosts providing storage to the network receive compensation in the form of siacoins. The storage platform itself is still in beta, and only uploads that are 500mb or less in size are supported by the wallet. “

Buying and Selling Siacoin

Siacoin can be bought or sold on the following cryptocurrency exchanges: Abucoins, Bisq, HitBTC, Poloniex, Bittrex, Upbit and BITHOLIC. It is not currently possible to purchase Siacoin directly using US dollars. Investors seeking to acquire Siacoin must first purchase Bitcoin or Ethereum using an exchange that deals in US dollars such as GDAX, Gemini or Changelly. Investors can then use their newly-acquired Bitcoin or Ethereum to purchase Siacoin using one of the exchanges listed above.

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New York to Go Big With Blockchain

A Blockchain Week is going ahead in New York in May, in an attempt to put NYC at the center of the technology.

The event, which will run from May 11 through May 17, has been organized by the media and research company CoinDesk and the New York City Economic Development Corporation. The main event at the center of the week will be Consensus, hosted by CoinDesk, and featuring a job fair and a hackathon.

The most well known example of blockchain technology is bitcoin, the cryptocurrency that has been fluctuating in value wildly and attracting a host of headlines. But there are other uses for the technology beyond currency. Blockchain basically takes data, breaks it up into tiny pieces, and stores it on computers around the world. That means the data is a lot more secure than if it was stored on a single computer or server. Because of this, blockchain has been put forward for use in online voting and banking, among other things.

New York, long acknowledged as the financial capital of the world, will have a vested interest in blockchain the more it impacts the financial sector, so perhaps it shouldn’t be surprising that the city is attempting to edge ahead of Silicon Valley in California as the home of the developing technology.

“The goal is really to plant that flag and send a very clear message that we want to work with you, want to support you, and we ultimately want NYC to be the global capital for blockchain,” Anthony Hogrebe, senior vice president at NYCEDC, told Forbes. “We think there’s already a tremendous presence here in New York, but it’s also a nascent community. If we don’t plant a flag and make strategic investments, New York could lose that critical mass.”

Blockchain-related jobs are on the rise in New York city, according to Burning Glass, a job analytics firm. In 2015, the Bay Area in California had 250 job openings in this field, compared to just 93 in New York. However, as of November 2017, New York has 745 openings, compared to 662 in the Bay Area.

There are also a number of blockchain-related events upcoming in New York City. These include blockchain workshops, brunches, networking events, hackathons, and career fairs, showing the interest in the technology in the city.

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Cardano (CRYPTO:ADA) Market Cap Hits $8.59 Billion

Cardano logo Cardano (CURRENCY:ADA) traded 8.7% lower against the US dollar during the 24-hour period ending at 1:00 AM Eastern on February 8th. One Cardano coin can currently be bought for $0.33 or 0.00003349 BTC on major exchanges including Binance, Mr. Exchange, Bittrex and Upbit.

Cardano logoCardano (CURRENCY:ADA) traded 8.7% lower against the US dollar during the 24-hour period ending at 1:00 AM Eastern on February 8th. One Cardano coin can currently be bought for $0.33 or 0.00003349 BTC on major exchanges including Binance, Mr. Exchange, Bittrex and Upbit. Cardano has a total market cap of $8.59 billion and $228.36 million worth of Cardano was traded on exchanges in the last day. During the last seven days, Cardano has traded down 17.4% against the US dollar.

Here is how related cryptocurrencies have performed during the last day:

  • Qtum (QTUM) traded down 8.1% against the dollar and now trades at $26.30 or 0.00265917 BTC.
  • OmiseGO (OMG) traded 10.9% lower against the dollar and now trades at $16.42 or 0.00166080 BTC.
  • BitShares (BTS) traded 7.4% lower against the dollar and now trades at $0.22 or 0.00002273 BTC.
  • Ardor (ARDR) traded down 11.4% against the dollar and now trades at $0.42 or 0.00004199 BTC.
  • Particl (PART) traded 0.3% lower against the dollar and now trades at $21.97 or 0.00222192 BTC.
  • Raiden Network Token (RDN) traded 6.1% lower against the dollar and now trades at $3.11 or 0.00031463 BTC.
  • Quantum Resistant Ledger (QRL) traded down 7.2% against the dollar and now trades at $1.25 or 0.00012678 BTC.
  • BitBay (BAY) traded down 11.4% against the dollar and now trades at $0.0604 or 0.00000611 BTC.
  • ION (ION) traded 9.1% lower against the dollar and now trades at $2.29 or 0.00023159 BTC.
  • ColossusCoinXT (COLX) traded down 4.8% against the dollar and now trades at $0.0039 or 0.00000040 BTC.

Cardano Profile

Cardano is a proof-of-stake (PoS) coin that uses the Ouroboros hashing algorithm. Cardano’s total supply is 31,112,483,745 coins and its circulating supply is 25,927,070,538 coins. The official website for Cardano is www.cardanohub.org. Cardano’s official message board is forum.cardanohub.org. The Reddit community for Cardano is /r/cardano and the currency’s Github account can be viewed here. Cardano’s official Twitter account is @CardanoStiftung and its Facebook page is accessible here.

According to CryptoCompare, ” Designed and developed by IOHK in conjunction with the University of Edinburgh, the University of Athens and the University of Connecticut, Cardano SL (or Cardano Settlement Layer) is a Proof of Stake cryptocurrency based on the Haskell implementation of the white paper “Ouroboros: A Provably Secure Proof of Stake Blockchain Protocol” by Aggelos Kiayias, Alexander Russell, Bernardo David and Roman Oliynykov.”

Buying and Selling Cardano

Cardano can be purchased on the following cryptocurrency exchanges: Coinnest, Gate.io, Upbit, Binance, Mr. Exchange and Bittrex. It is not currently possible to buy Cardano directly using US dollars. Investors seeking to acquire Cardano must first buy Bitcoin or Ethereum using an exchange that deals in US dollars such as GDAX, Coinbase or Gemini. Investors can then use their newly-acquired Bitcoin or Ethereum to buy Cardano using one of the aforementioned exchanges.

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Stellar (XLM) Market Cap Hits $6.76 Billion

Stellar logo Stellar (CURRENCY:XLM) traded 9.4% lower against the US dollar during the 24-hour period ending at 1:00 AM Eastern on February 8th. One Stellar coin can currently be bought for $0.37 or 0.00003699 BTC on major exchanges including Mr. Exchange, Binance, Qryptos and Bitcoin …

Stellar logoStellar (CURRENCY:XLM) traded 9.4% lower against the US dollar during the 24-hour period ending at 1:00 AM Eastern on February 8th. One Stellar coin can currently be bought for $0.37 or 0.00003699 BTC on major exchanges including Mr. Exchange, Binance, Qryptos and Bitcoin Indonesia. Stellar has a total market cap of $6.76 billion and $71.19 million worth of Stellar was traded on exchanges in the last day. During the last seven days, Stellar has traded down 18.7% against the US dollar.

Here’s how other cryptocurrencies have performed during the last day:

  • Ripple (XRP) traded down 7.9% against the dollar and now trades at $0.95 or 0.00009604 BTC.
  • NEO (NEO) traded 6.4% lower against the dollar and now trades at $117.22 or 0.01185250 BTC.
  • IOTA (MIOTA) traded down 8.3% against the dollar and now trades at $1.66 or 0.00016782 BTC.
  • TRON (TRX) traded 10.5% lower against the dollar and now trades at $0.0408 or 0.00000412 BTC.
  • VeChain (VEN) traded 10.6% lower against the dollar and now trades at $5.55 or 0.00056119 BTC.
  • Tether (USDT) traded up 0% against the dollar and now trades at $1.00 or 0.00010126 BTC.
  • Binance Coin (BNB) traded 7.3% lower against the dollar and now trades at $9.00 or 0.00090959 BTC.
  • Populous (PPT) traded 10.6% lower against the dollar and now trades at $22.15 or 0.00223978 BTC.
  • RChain (RHOC) traded 0.7% lower against the dollar and now trades at $2.05 or 0.00020693 BTC.
  • Status (SNT) traded 8.7% lower against the dollar and now trades at $0.18 or 0.00001850 BTC.

Stellar Coin Profile

Stellar launched on July 19th, 2013. Stellar’s total supply is 103,708,899,665 coins and its circulating supply is 18,467,813,830 coins. Stellar’s official website is www.stellar.org. The official message board for Stellar is stellarcommunity.org. The Reddit community for Stellar is /r/stellar and the currency’s Github account can be viewed here. Stellar’s official Twitter account is @stellarorg and its Facebook page is accessible here.

According to CryptoCompare, “Stellar is public infrastructure for money. Supported by a nonprofit, Stellar brings the world together by increasing interoperability between diverse financial systems and currencies. Stellar is a technology that enables money to move directly between people, companies and financial institutions as easily as email. This means more access for individuals, lower costs for banks, and more revenue for businesses. Help better the world’s financial infrastructure by participating in our community or by building on Stellar. “

Stellar Coin Trading

Stellar can be traded on the following cryptocurrency exchanges: Bitcoin Indonesia, Upbit, CoinEgg, Mr. Exchange, Bitstamp (Ripple Gateway), Binance, AEX, Exrates, Bittrex, BCEX, Qryptos, Poloniex, OKEx, RippleFox, GOPAX, Stellar Decentralized Exchange, Kraken and Gatehub. It is not currently possible to purchase Stellar directly using US dollars. Investors seeking to acquire Stellar must first purchase Ethereum or Bitcoin using an exchange that deals in US dollars such as Gemini, Changelly or Coinbase. Investors can then use their newly-acquired Ethereum or Bitcoin to purchase Stellar using one of the aforementioned exchanges.

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