Kategorie: Crypto News

• Legendary investor Bill Miller compared Bitcoin to an insurance policy, noting that it may lack intrinsic value but duly comes in handy in case of a catastrophe.

• Miller said he still holds a significant portion of Bitcoin in his portfolio.

• BTC price climbed above $45,000 on Thursday, jumping above the resistance level amid high volatility in the market.

Bitcoin is what investors need to hedge against financial catastrophe, legendary investor Bill Miller said in an interview with CNBC.

According to the fund manager, who in January revealed that he held a significant chunk of his personal wealth in Bitcoin, the cryptocurrency acts „like an insurance policy.“

Explaining his analogy, the famed investor told CNBC that people go for insurance even when they know that the policies do not have intrinsic value.

The former chief investment officer at Legg Mason Capital Management Value Trust said that it is exactly this factor (a lack of intrinsic value) that makes people want to get insurance. It’s not because they wish to see their property destroyed or hope to get into an accident, but because the insurance always comes in handy if the calamity ever happened.

„Bitcoin is insurance against financial catastrophe,“ he explained in comments referenced by Insider. 

Miller also commented on his crypto portfolio, noting that his earlier allocation in BTC grew exponentially during the bull market to Bitcoin’s peak in November. Although the holdings had taken a hit during the recent market slump, the investor said he still held a „big position.“

On overall adoption of cryptocurrencies, the investor says the trend will see major banks, endowments, and pensions funds add Bitcoin to their balance sheets. According to him, the move by KPMG Canada is the beginning of a major shift.

Bitcoin was trading around $45,350 at the time of writing, about 3% up in the past 24 hours and over 22% up this past week. Today’s market action saw the cryptocurrency sharply fluctuate as markets reacted to fresh inflation data from the US.

The run to intraday highs above $45,600 included a sharp decline below $44,000, but analysts are bullish the crypto bull market is not over yet. 

The post Bill Miller: Bitcoin is an insurance against financial catastrophe appeared first on Coin Journal.

Terra (LUNA) has seen a tremendous rise over the past week as it tries to correct the recent price drop that resulted from the recent crypto market plunge. At the time of writing, it was trading at $56.30 after a 2.4% rise in the last 24 hours.  

LUNA is the native token of Terra, a blockchain protocol that uses fiat-pegged stablecoins to influence the price of global payment systems. It has a trading volume of $1,202,143,126, a circulating supply of 400 million LUNA coins, and a total supply of 819 million.

Let’s now focus on why the Terra (LUNA) has been rallying in the last seven days.

Forces behind current Terra (LUNA) price rise

One of the reasons behind the current uptrend is the announcement of Terra’s sports sponsorship deal with Major League Baseball’s (MLB) Washington Nationals, a major milestone for the growing blockchain that can be termed as the first-ever decentralized autonomous organization (DAO) vote on sports sponsorship deal in history.

According to last week’s formal proposal from the DAO on Terra’s governance platform to the LUNA community, Terra offered $38.5M for a five-year sponsorship deal for the Nationals.

In the proposal they said:

‘’We started dedicated sports coverage at Bitcoinist last year, and we can firmly say we’ve never seen a sports sponsorship deal quite like this one. It is the first time we’ve seen a community vote through a DAO mechanism – most certainly around a deal secured with a ‘big 4’ league (which consists of the NFL, MLB, NHL, and NBA) in North America… ’We’ve covered quite a bit of ubiquitous sports sponsorship and partnership deals throughout the past year or so, and admittedly, an MLB team was not on our shortlist. The NBA has arguably been the leader in crypto-related deals, including a league-wide deal with Coinbase, and vocal team owner advocates, such as Mark Cuban. Additionally, other headline deals, such as Crypto.com’s acquisition of the downtown Los Angeles arena naming rights, and the NBA’s broader initiatives into blockchain-related properties (think Dapper Labs and Top Shot) have given the league a particularly unique position.’’

MLB has previously worked with Candy Digital and Topps around NFTs; however, the team’s specific deals have been few and the same applies to the NHL and NFL which have also shown limited engagement in blockchain and crypto so far.

For Terraform Labs and Terra, it’s a unique move not only because of the league but also because of its location in the US policymaking, Washington DC.

The deal comes at a time when Terra’s UST stablecoin has established itself as the leading decentralized stablecoin. Terra ecosystem is longing to establish growth that will go beyond the blockchain’s flagship Anchor Protocol product.

In a statement released by the Nationals, Terraform Labs founder Do Kwon stated:

“By approving this sponsorship deal, the community has a new way to engage and educate the public, including the policymakers doing important work in Washington, D.C., about decentralized money and the burgeoning technology that underlies it.”

The post Terra (LUNA) jumps 18% in seven days: this is what is fuelling LUNA’s price rise appeared first on Coin Journal.