EToro market analyst Simon Peters shares his views on Bitcoin and other crypto assets

This analysis of the cryptography market comes from eToro analyst Simon Peters. Here are his views on the current state of the crypto industry. 

Global stock markets, such as the S & P 500 and the FTSE 100 have experienced a running average last week. News on the market was sparse and the three largest crypto assets, Bitcoin , Ethereum and XRP , all bound in price. Bitcoin has remained around the $ 9,000 level, despite a brief foray into the midpoint of $ 9,400 (  at the time of writing)  . It is not beyond the realm of the imagination that bitcoin breaks $ 10,000. However, it will be an important time if this happens and the price remains stable.

Grayscale Trust trusts Bitcoin - and its miners

The $ 2.5 billion Grayscale Bitcoin Trust is said to have searched for huge amounts of Bitcoin . They are managed by the crypto-asset investment company Grayscale and purchases have started since early May. Independent research estimates that the amount purchased is 150% of the Bitcoins currently mined.

So who sells, if Grayscale's appetite needs to be satiated, what probably is? Some sophisticated retail investors may have entered the asset class early or at a low level this year. Others may recognize the major players entering the market and seek to consolidate their gains. As a result, the supply and demand for bitcoin are currently at a happy equilibrium.

Goldman Sachs excluding Bitcoin

Goldman Sachs made an interesting presentation on Bitcoin last week in which it recommended not to use crypto assets in investors' portfolios. They have also argued that the Bitcoin and cryptocurrency generally should not be considered as an asset class.

It was enlightening reading and she stressed the importance of educating people more about blockchain technology and crypto assets. Goldman Sachs has given its own reasons why BTC is not an asset class, as if it were not a hedge against inflation. However, if the crypto asset community can engage and work more regularly with these high-level institutions, perhaps they will open their eyes to the many benefits of it.

I believe, contrary to what Goldman Sachs publishes in its presentation, that crypto-assets offer no diversification advantage. There are a multitude of rooms with all different uses behind them. Some interesting forecasts were also included in the market outlook section, which examines approximate debt levels in the United States over the medium term.

A graph shows that public debt is expected to increase and reach up to 150% of GDP by 2030. Although he is clearly skeptical about Bitcoin as a hedge against inflation, Goldman Sachs has inadvertently highlighted the type of situation in which bitcoin is designed to thrive: massive public debt and fiscal stimulus.

Bitcoin 401k sounds great

Gemini this week announced a new partnership with Bitwage. Bitwage offers payroll and human resources services and allows employees to have their wages paid in bitcoin . It also allows employers to make matching or profit-sharing contributions to their employees' 401k accounts. This helps companies that are struggling to meet the conditions of the US government loan program.

Dubbed the world's first 401K bitcoin , the Bitwage / Gemini initiative bridges a significant gap between the traditional market and the new crypto industry. This gives people the opportunity to invest in “real” bitcoin for the long term while keeping it in tax-efficient packaging.

Facebook Libra gets a makeover

Another development of the Libra project is that Facebook has announced that it is renaming the Calibra portfolio to Novi. A big question remains: will users need a government identifier to be verified? If so, how can the Libra project make this work for the millions of unbanked people in the current financial system?

However, since most people have Facebook, WhatsApp or Instagram, this project is still an important step in adopting crypto. Users of these applications will be able to send cryptographic assets easily without having to enter an alphanumeric wallet address older than 25 years. Making the process as simple as possible is of utmost importance. This will show skeptics that cryptos can compete and even improve traditional payment processes.

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