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Ripple’s XRP: Can it attract pension funds as a currency to store wealth?

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You’ve probably heard about CoinBase already. It’s a company based in California, considered to be one of the most important crypto exchanges in the world because of its amazing thirteen million users (that many people can’t be wrong, right?). But while it’s so well known as a coin trading site, Coinbase offers a variety of other services that are not so famous. One of them is known as “custodial service.”

That means that they accept to hold somebody’s wealth or property and make sure it stays safe and invest with it in the most reliable possible ways. It’s not a retail service, as you need at least ten million dollars to open this kind of account and, as such, it’s usually demanded by institutions that need to keep a big pool of money safe, such as pension funds.

A pension fund’s primary aim to keep money safe for the clients which is why pension fund managers are very conservative in their investment strategies and do not delve that much into the stock market. Which is not to say that they never do, several funds of this type are known to put some of their money in Blue Chip stocks it small quantities. And now the question is: will they start using cryptocurrency investment anytime soon? And if they do, how important will Ripple’s XRP be for them?

The answer to the first question is a definitive yes, just not very soon. The cryptocurrency markets are still not very appreciated by financial operators that are used to work with traditional financial tools only. But as Bitcoin and many other assets keep moving forward and showing their worth, it’s unavoidable that even people in Wall Street will start bringing some money to the table. It’s going to be a long process, but it’s already happening to a point.

What does that mean for XRP? Nothing, until recently, but things change. Coinbase just announced that as part of its custodial service it’s studying the inclusion of forty new cryptocurrencies to use to invest and store wealth, and Ripple’s XRP is among them. That is a breakthrough as, so far, Coinbase has only used for this the handful of crypto coins it offers for trade.

It would be very significant for XRP because it would give it a use that it currently does not have and that is not seeking to acquire either. Ripple’s XRP has always been a coin with a single and clear purpose which is to settle international payments in a much quicker, cheaper, and safer way than can currently be done with the outdated but dominant SWIFT system.

That’s what it’s been aiming for since its inception, as opposed to becoming a local currency (something “average” people could use to pay for goods or services), or a means to store wealth, an investment tool or any of the other typical uses associated with crypto coins.

If Coinbase decides to use XRP in its custodian service really, that would increase the demand for this token dramatically and would turn it into a wealth storing coin, besides the regular use it has typically. And more demand means higher prices and good coin performance.

It’s not a done deal yet, Coinbase is moving very carefully lately, after the Bitcoin Cash fiasco, and the announcement is, above all, a declaration of intent. But even that is significant taking into account that the same exchange has not shown any interest so far in supporting Ripple (XRP) for trade.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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