Despite The Marketplace Twists,Thorns and Thistles, Here Is How USDT Has Weathered The Storm

USDT has weathered the storm these past two years to soar to the third place on the list of the most capitalised crypto. Here is the journey so far for Tether this year.

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The meteoric rise of USDT in 2020 H1: Everything you need to know

Predictions for what will happen in the cryptocurrency world exist at any given time, and vary wildly depending on who you ask. Long gone are the days when Bitcoin was expected to reach $100,000 “by the end of the year,” although there’s still the odd enthusiast with overtly positive expectations to come up with such claims now and then.

Still, most movements in the crypto market are predicted by at least a few people, and in some cases these crypto gurus, when predicting such market changes, end up causing them in response.

However, 2020 has seen a market change nobody ever thought, among many other things the world has seen this year. Specifically, the rise of the USD Tether (USDT) and stablecoins in general has been higher than even the most optimistic of predictions.

You Should Read: Investing in 2020: what you need to know

What’s USDT? Why is it important?

The USD Tether is the name of a specific stablecoin, USDT for short, whose value is pegged to that of the US Dollar. 1 USDT thus equals 1USD at all times. It’s one of many coins with prices pegged to those of fiat currency, and thus it is categorized as a stablecoin – because the price always remains stable.

Is it a bad coin? Why people never thought it could rise?

Stablecoins can be divisive among the community, because they imply the creation and use of blockchain as a means to move fiat instead of independent digital currencies – something some crypto enthusiasts consider against the spirit of cryptocurrencies.

However, stablecoins aren’t considered bad in general. Over the years, many crypto analysts have actually predicted they could become an entry point into cryptocurrencies for many people, and the relative safety of their prices has led several crypto exchanges, Binance chiefly among them, to adopt their own stablecoins and offer instant exchanges into them to crypto holders.

Stablecoins are, thus, quick ways for holders to jump out of the market without necessarily going through the bothersome process of turning their crypto into fiat. Since this process doesn’t involve actually exchanging tokens for fiat, but for other tokens, many of the costs – such as a bank transaction and withdrawal fees – are skipped. It’s the preferred way for holders and traders to take a step away from the market if they plan on returning to trading soon.

But why would USDT grow so suddenly? Why would it get popular? Are new people joining the market?

The reason USDT has risen in the past few months has little to do with newcomers and a lot to do with existing crypto traders, current events, and how those shape the economy.

As had been long predicted, a worldwide recession is underway, and if you believe certain predictions, we’re yet to see the worst of it. The current pandemic, along with the gross mishandling of it by many world governments, is leading the worldwide economy towards a second shutdown within a year, one that’s expected to hit much worse than the first one.

And the thing about the first one is it proved many theories about cryptocurrencies’ place in the economy, well… wrong.

Read Also: These Are The 4 Fastest Cryptocurrencies For Money Transfer Purposes

Wait, what was wrong?

One of the most commonly held beliefs among cryptocurrency enthusiasts was that crypto would rise if markets went down. Some people went as far as to call it the new gold, usually following the (not quite true) belief that gold always goes up when markets go down.

However, March and April 2020 told a much different story: As COVID-19 had markets close and stocks went down across the board… so did cryptocurrencies. Ether hit its year-long low in mid-March, having shed 50% of its value in a span of just two weeks. Bitcoin did likewise in April, hitting a year-low price of just under $5,000/BTC – less than 50% of the high reached back in September, which had the token valued at almost $12,000.

Being the main tokens in the market, they’re often used as a way to see the current trend in crypto prices. Both tokens severely underperformed when the recession first hit, and while both have also recovered since (Bitcoin partly helped by its May 2020 halving,) with a second, worse recession dip in our doors its only understandable people are trying to jump ahead of the market.

Will this rise last?

USDT isn’t much of an investment, being tied to the value of a clearly inflational currency, and therefore there’s little reason to hold it in a world where cryptocurrencies aren’t yet mainstream. But,the green light is in the fact that mnay hold it as a midpoint between investing and selling off their crypto holdings.

USDT is currently serving as a bellwether for crypto traders who fear the current economy might send token prices to the ebb. Once markets recover, however, many of them will jump back – and USDT might return to its regular trade values or yet, grow stronger.

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Investing in Tough Times: 3 Lessons You Can Use for Stock Picks

In times of great peril on the earth, people embrace doomsday scenarios and let go of rationality. In these days of rage, here are tips you can use for stock picks.

Tough times are always accompanied with a hit in stock prices the world over, and the reason is that many investors tend to get uncomfortable and sell off their shares. Recession is a prolonged period of significant decline in economic activity.

However, if people can learn to forego fear and learn how to invest properly, it could turn out to be a great opportunity for high returns. Before you rush into investing your hard earned money vaunted finance experts are all for it, you should consider the following for your stock picks:

Read: The Price Volatility of Bitcoin and Cryptocurrencies Explained

1. Investing in High-Quality Stocks

Investing in high-value company stocks is one of the relatively safest things to do in tough times. Many of these companies have long business histories of strong balance sheets, which enable them to survive a prolonged period of weakness in the market.

Though many of them have also dropped in value, it is noteworthy that their decline isn’t a result of poor management but an unfortunate world catastrophe. When things return to normalcy, most will bounce back, and you’ll be a big winner if you have made long-term investments in these companies.

Some of such high-quality stocks are:

Healthcare

Medical services are always required irrespective of the economic condition, and investing in pharmaceuticals and medically related firms is one of the safest means of minimizing risks and ensuring high returns.

As the coronavirus halts the global markets and people are forced to stay at home and self-isolate, companies that produce home medical equipment like Adapt Health Corp are benefiting from the effects of the coronavirus pandemic.

Tech Companies

Over the years, tech companies have also proven to be resilient in tough times. For example, Microsoft stocks fell by 5.4% in February, this created a very rare opportunity to obtain such high-value stock at that cheap price. Next-generation technology growth catalyst companies like Intel are also a nice place to invest for unbelievable maximum returns.

Read Also: With The World Economy Lying Prostrate, The Forthcoming Bitcoin Halving Could Be Something To Cheer About

2. Non-Cyclical Stocks

These are defensive stocks that are not affected by a decline in economic growth. These stocks are from companies who produce and distribute essential goods and services needed daily, including staple foods; utilities, such as power, water, gas; and waste management.

Unlike cyclical stocks, these stocks do not have any direct correlation to the economy, and that’s why they are resistant to the effects of unstable markets. A good example of such stock is Walmart, which has recorded an ever-increasing high value despite the coronavirus outbreak.

3. Diversification

Learning how to diversify is very crucial when it comes to investing in tough times. It would be unwise to put all your eggs in one basket, and that’s why every smart investor spreads their investment over a range of investment vehicles.

It is even wiser if you spread your investments over different sectors. Many smart investors have used this management strategy that combines different investments in a single portfolio. It is aimed at yielding a higher return while minimizing risks.

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Are Hedge Funds Safe in Unstable Times? Here Are A Few Tips You Can Use

Hedge Funds tend to outperform individual stocks as a result of their diversification. There is a bit more you should know as you read on..

Nobody would have accurately predicted that a pandemic would come to change the course of activities all over the world, but smart investors are always prepared for such a time as this. Do you also want to take advantage of this COVID-19 outbreak to invest in hedge funds?

I know you feel unsafe and insecure about investing this period, and it’s perfectly normal to feel that way, mainly because stocks – even of bigger corporations – are generally depreciating, oil prices have reduced, gold is hitting rock bottom, and many more unfortunate economic events are happening.

Notwithstanding, is it safe for you to invest in hedge funds in this unstable period? I am going to share some of the properties of hedge funds with you in the following paragraphs so you can decide if investing in hedge funds is right for you this period.

1. Diversification

Hedge funds offer an array of investments such as long or short, tactical trading, events-driven or emerging markets, and managers take advantage of diversified investments to earn the highest return for the least risk.

Hedge funds focus on specific risks to reduce its risk exposure, by a large percentage, to the general market movements. This technique works because these investments react differently to the same economic event. So, hedge funds generally outperform equities with much lower volatility even in unstable times.

Read Also: What You Need to Know About Samsung Blockchain

2. Long or Short Selling of Hedge Funds

This is a killer strategy that most hedge fund managers use; it involves buying and selling stocks that are undervalued. Managers target shares that are about to hit rock bottom, and they borrow it. Then they make a gross profit by selling out the borrowed shares and buying it back when it falls.

However, there are risks associated with this if the market conditions do not go as planned. It may lead to a situation called a ‘short squeeze.’ Long term selling, on the other hand, involves buying undervalued stocks with the hope that it will appreciate with time, and then sell it when it does.

3. Transparency

Hedge funds are not regulated by the Securities and Exchange Commission, but the Dodd-Frank Wall Street Reform and Consumer Protection Act passed in 2010 requires them to be transparent. The transparency, however, does not include disclosing where investments are made.

4. Loss Reduction

Most hedge funds have highly financially intelligent workers, who do not only employ aggressive investment strategies to maximize returns as well as reduce risks but are also very good in financial management to be factual. They provide investors with the best information there is and also use selective strategies that they believe will add to the bottom-line.

5. Risks and Returns

According to the Securities and Exchange Commissions, hedge funds managers in a bid to maximize returns often engage in many risks. If things do not turn out as planned, it may lead to a bottom-out in returns. Also, the lack of a regulating body makes hedge funds prone to the risk of fraud.

Read Also: How Leverage Trading Works When You Use The Binance Cryptocurrency Exchange

Are Hedge Funds Worth It this Period? Final Words

Hedge funds are low-risk investment vehicles, which are not entirely dependent on the situation of the general economy, mainly because of how it is run. So, it is worth trying; however, losses can be incurred like every other investment vehicle.

Must Read:The Price Volatility of Bitcoin and Cryptocurrencies Explained

What You Need to Know About Samsung Blockchain

Blockchain has gained some grounds in the last two years, and the big tech companies have moved in. Here is what Samsung is up to with its initiative.

Blockchain is a life-changing technology and it’s been making its way into many sectors of the world such as in business, communication, agriculture, supply chain management, health, and lots more. However, did you ever imagine that leading tech companies like Samsung will also implement blockchain in their devices?

The creation of the Samsung blockchain is a huge development, and there are lots of benefits attached to this development. Though the tech gadgets company stated that they built a blockchain because they are in support of decentralized services, there’s so much to learn about the Samsung blockchain. In this article, you’d find brief but concise facts that you need to know about the Samsung blockchain.

Blockchain and Tech Gadget Companies

Many tech giants have been silently developing and announcing their plans for deploying the blockchain technology in their products. Apple, for example, has reportedly claimed to be following cryptocurrency and the blockchain technology as a whole, tipping it as a sector with massive potentials in the future.

Apple has also been building protocols and has even launched the iPhone CryptoKit. Other tech companies like LG has also declared that they have completed their research on the blockchain ecosystem; so, the blockchain tech will soon find a strong footing in the tech gadgets industry.

More About the Samsung Blockchain Ecosystem

Samsung has equipped its flagship smartphones with decentralized applications and blockchain service providers. Although it is still in its early phase and is only compatible with flagship models like Samsung Galaxy S10, Samsung Note 10, Note 10+, and some other variations of the S10-series.

The company’s intent was stated along with the release detailing the fact that they are in full support of a decentralized system, which is secure, transparent, and with proper detailing of transactions among multiple registers of all computers involved in the block.

Samsung launched its pioneer blockchain flagship, the Galaxy Note 10 variant, known as the KatlynPhone, which has the same features as the regular Galaxy Note 10 but with tweaks to include software containing decentralized applications and a cryptocurrency wallet. That much for smartphones.

The testing phase has been underway since early 2019 with significant improvements in the DApps created with the inclusion of new apps for each stage of the test. Though the company claims to have just begun to scratch the surface of the blockchain ecosystem, they have made a huge statement of commitment with the release of their second blockchain phone.

The company’s team has started to create systems to store private keys for Stablecoins, Enjin Coin, Ethereum, Binance Coin, and, more recently, Bitcoin. The company has also been pushing for intricate variations of the blockchain, which will aid the development of cutting-edge technology for storing cryptocurrency and building decentralized applications (DApps).

Samsung has also announced that moving forward, it will expand the range of models that the blockchain technology is compatible with. In the company’s own words, “DApp browser is a tool for developers to set things in motion and for allowing web-based blockchain applications to work on mobile phones.

CONCLUSION

Safe to say that blockchain is the future of tech. With Samsung making inroads in this sector, we are likely to see more innovations show up in the days ahead.

With The World Economy Lying Prostrate, The Forthcoming Bitcoin Halving Could Be Something To Cheer About

Bitcoin halving last happened in 2016, and it led to a 10-fold spike in price. Will it happen again in 2020? Read on to know more..

The Three Likely Outcomes from Bitcoin Halving

Bitcoin halving refers to the process in which the Bitcoin networks’ issuance rate is cut in half, and this happens about every four years or after every release of 210,100 blocks.

Usually, new Bitcoins produced by miners who use expensive electronic equipment to mine them enter into circulation as block rewards. However, after every 210,000 blocks or about four years, the total number of Bitcoin that miners can win is halved – this is referred to as Bitcoin halving.

Since the inception of Bitcoin, there have already been two halvings: the first one was in 2012, and the second one was in 2016.

Following the halving event, the block reward will be reduced from 12.5 to 6.25 BTC (Bitcoin mining started with 50BTC as its mining reward and halved to 25BTC by 2012, and then 12.5BTC by 2016).

During those times, there were apparent implications on the financial market and the digital world of cryptocurrencies. Read on to find out the likely outcomes from the upcoming Bitcoin halving event:

1. Bitcoin Miners Have A Reward Knock

Firstly, the Bitcoin halving event will cost miners by cutting their reward in half, but with the additional loss of the sudden fall in reward burden, damages could be twice as bad for miners.

Miners, not expecting a sudden fall in BTC price, had been accumulating Bitcoin, waiting for the value to rise during the halving.

2. A Decline in Bitcoin Hashrate

The hash rate, which is the operation speed of a cryptocurrency mining machine, is essentially a measure of the miner’s performance.

There is an agreement that the hash rate on the Bitcoin network, which currently stands at 1.54 exahashes per second, will experience a slight decline.

The total network hash rate will decrease by approximately 10% after halving since older equipment that is no longer economically viable will leave the network. Later-generation machines will pick up some of the slack.

The most important thing is that even with a decline in the hash rate, the security of the Bitcoin network will not be compromised.

But after the halving, eventually, some miners will leave, everything will settle down, and the system will grow again – this upcoming halving event will not be the first, and it will go on once every four years until all 21m BTC are mined.

3. The Most Important Effect: The Price Leap

There is a price leap effect expected in May 2020 as a result of Bitcoin Halving. This is comparable to what happened the last time there was a halving in 2016, there was a ten-times leap in price. So, it expected that something of the sort will happen again this year.

The underlying argument is that with the halving of bitcoin reward, less supply of BTC will occur from mining. In keeping with the tenets of Economics, a reduction in supply almost always will lead to a price spike.

Conclusion

In 2020, should we expect more of what happened in 2016? If that is the case, profiteers will likely start taking positions now for the expected windfall.