Square and Grayscale purchased $2.3 billion worth of Bitcoin in the third quarter of 2020

The Bitcoin (BTC) share price has risen sharply in recent months. At the time of writing, the price of 1 BTC is around $15,300. The demand for BTC is unprecedentedly high among a number of large parties.

Billions of bitcoin

US companies Square and Grayscale bought BTC for $2.3 billion in the third quarter of 2020.

By way of comparison, in the same period of time, miners earned around $1 billion in bitcoin. This means that much more bitcoin was purchased by these two parties alone than new BTC became available.

That does not mean, by the way, that miners sell all that bitcoin. In addition to miners, there is, of course, a global market with potential sellers.

Square and Grayscale

Square bought 4,709 bitcoin as a saver. In addition, with Cash App, the tech company has a popular trading app in its hands. Via Cash App, Square sells hundreds of million of bitcoin per month.

Grayscale buys bitcoin for their bitcoin news trader fund. Investors can buy a share in the Grayscale Bitcoin Fund. With such a share you do not have to buy bitcoin yourself, but you can take advantage of any price increases. Grayscale recently bought BTC for $300 million within 24 hours.

Grayscale and Square are just two prominent players in the world of bitcoin. There are also millions of retail investors and other companies who also like to buy bitcoin.

If the demand remains the same, the question is when the liquidity on the sales side will dry up. Each time bitcoin goes from stock exchanges to a different address, which indicates a trend in which bitcoiners do not want to sell so quickly anymore.

And then there are also parties that are eager to offer bitcoin on a large scale. The most eye-catching name is PayPal. They are also going to facilitate the trade in bitcoin. Important note: with the Cash App, for example, you buy bitcoin which you can send to your own address. This is not possible with PayPal.

The bitcoin that PayPal buys remains in the company’s ecosystem. The logical consequence of this is that this BTC does not quickly come onto the market. In short: there will be even less bitcoin on the market to sell.

Crypto Lending: The Top Projects in the DeFi Sector

Crypto lending is currently the largest sector in the Ethereum Decentralized Finance (DeFi) sector. More than $ 4.5 billion is in lending logs and the growth doesn’t seem to have stopped for a long time. On the contrary: Many suspect that 2020 will only mark the beginning for the emerging Ethereum sector.

The DeFi lending platforms want to make traditional financial services accessible to everyone without hurdles

The aim is to create an open banking system in which there is no central authority that controls the service.

With DeFi lending, investors and lenders use a decentralized system to issue loans or deposits against interest. Thus an individual or a company lends money against interest via a decentralized network. DApps, smart contracts, and other Immediate Edge scam protocols are used in both lending and borrowing.

What is crypto lending?

DeFi loans are different from traditional lending and offer users various advantages and disadvantages.

Hedge Funding

Cryptocurrencies are volatile and many investors are quickly frustrated by price fluctuations. DeFi-Lending offers investors the opportunity to deposit cryptocurrencies for fiat money. This allows investors to use fiat money to meet other needs without selling their cryptocurrencies.

For example, a company that holds crypto assets and doesn’t want to sell them could simply turn to a DeFi lending platform to deposit crypto for fiat. This would allow the company to finance a project without selling its crypto holdings.

Returns on holding crypto assets

In addition, you can be rewarded for holding your crypto assets without giving your cryptocurrencies to an outside party. This works by lending your assets at agreed interest rates that are set in a smart contract and receiving returns in return. Thus, as an individual, you can become your own bank. In the following, we take a closer look at the five largest lending platforms.

Bitcoin har overgået alle andre aktivklasser i år: Anthony Pompliano

Vocal Bitcoin-talsmand Anthony Pompliano (også kaldet „Pomp“) har offentliggjort en Twitter-tråd for at smække de „talende hoveder“, der har kritiseret Bitcoin.

Pomp foreslår sine grunde til, at han mener, at flagskibskrypto-valuta fortsat er et fremragende aktiv i sikker havn.

„‚At tage hoveder‘ er bevist forkert“

Anthony Pompliano offentliggjorde et tweet, hvor han forklarede, at hans synspunkter om Bitcoin fortsat var en god sikker havn.

Pomp kiggede på flere teser fremført af Bitcoin-skeptikere og konfronterede kritikerne med hans argumenter.

Hvorfor har Bitcoin-hadere talt imod BTC igen i år? Hovedårsagen er det økonomiske chok, der opstod i marts og april, hvor sort torsdag fandt sted den 12. marts.

Dengang styrtede Bitcoin sammen med altcoins. Aktiemarkedet fulgte, og det samme gjorde olie og kastede sig under nul. Da krisen ramte, begyndte mange mennesker at sælge ikke kun Bitcoin, men også andre likvide aktiver, forklarer Pomp.

„Bitcoin er steget med 300 procent siden laveste marts“

Pomp fortsætter og siger, at Bitcoin siden markedskatastrofen i marts (syv måneder siden) nu er steget over 300 procent og er steget med 83 procent år til dato.

Det har gjort det meget bedre end nogen anden aktivklasse i år målt i værdi:

„Bitcoin er steget med 83% fra år til dato og op med mere end 300% siden nedturen i marts. Det har overgået alle andre aktivklasser med et væsentligt beløb.“

„Bitcoins korrelation til aktier er nul“

Pompliano påpegede, at det største argument, de „talende hoveder“ har brugt, er, at Bitcoin i de hårde tider for økonomien tilbage i marts / april var korreleret med andre aktiver.

Kritikere brugte det som grundlag for at sige, at Bitcoin ikke er nogen inflationsafdækning. Pomp hævdede, at det samme skete med guld, aktier og andre markeder, og at det var en midlertidig ting.

Lige nu tweeterede Pomp, Bitcoins korrelation med de traditionelle markeder er faldet over tid og ligger på nul. Han kalder BTC en ultimativ sikker himmel og siger, at BTC ikke kunne være mere ukorreleret, end den er nu:

„Det overgik aktier, obligationer, guld, olie og stort set alt andet. Det har også en lav eller ingen sammenhæng over nogen væsentlig tid. Bitcoin er den ultimative sikre havn, og markedet viser det.“