Big investors are starting to see bitcoin as an alternative to gold

JPMorgan: Big investors are starting to see bitcoin as an alternative to gold

Grayscale Investments' Bitcoin Trust outperforms gold-based exchange traded funds (ETFs), not least due to the involvement of institutional investors. This opinion was outlined in their new report by analysts of the largest American bank in terms of assets under the management of JPMorgan, from which CoinDesk quotes.

“This contract supports the idea that some investors who have previously invested in gold ETFs, such as family wealth management firms, may consider Bitcoin as an alternative to gold,” they write.

In other words, the rise of the GBTC trust suggests that the demand for Bitcoin comes not only from the millennial generation, but also from large institutional investors, the authors of the report explain.

“As we noted in our previous October 23rd report, the potential for long-term growth for bitcoin is significant if it competes more intensely with gold as an 'alternative' currency. The market capitalization of bitcoin from current levels should rise 10 times to match private sector investment in gold through ETFs or bullion and coins, ”they add.

Adam Cochran: "retail traders don't trust trading bots"

In the report, Cochran writes that 10,388 cryptocurrency traders were surveyed. The total volume of assets under their management amounted to $ 53.5 million. The overwhelming majority of respondents are retail traders with assets from $ 1,000 to $ 50,000. Such users account for 94% of the respondents. Among all those surveyed, 81% identified themselves as active traders.

Since the purpose of the survey was to identify the use of trading bots, the first question was the experience of using such programs. It turned out that 38.05% of respondents had tried trading bots, but 93% of respondents did not extend the trial period. 63.07% said that they had problems with the bot, 29.46% answered that they simply did not have the necessary functions.

One of the main reasons for refusing to use trading programs was the lack of trust in the bot and its developers (88.46%). Also, the reason was often the lack of ready-made scripts, insufficient selection of exchanges for trading using a bot, high complexity and high risk of such trading.

“Many users are interested in automated trading. But they need ready-made scripts, brands that can be trusted, and the ability to split balances, ”concluded the author of the study.

Trading bots are very popular in the DeFi industry right now. Such programs track potentially lucrative transactions on decentralized exchanges and create similar transactions with increased fees so that the transaction is completed faster than the original. This has become such a big problem that special solutions are being prepared to deal with it. One of them is the Taichi Network mining network from the Sparkpool pool.

UK Treasury to Create Guidelines for Issuing Private Stablecoins

The UK regulator issued a statement that "new technologies, such as stablecoins - private digital currencies - could change the way people store and exchange money, and make payments cheaper and faster."

UK Treasury Secretary Rishi Sunak tweeted that the regulator will "publish guidance to ensure that new private currencies - stablecoins - meet the high standards expected from other payment methods." This, he said, "will enable the potential benefits of stablecoins to be harnessed while simultaneously managing risks to consumers and financial stability."

According to the ministry, the government and the Bank of England are still examining whether "central banks can issue their own digital currencies as a supplement to cash." Government cryptocurrencies can compete with private stablecoins or help people move towards cashless payments.