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What a complete yolk! Comparing Bitcoin to Eggs and why it matters

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What a complete yolk! Comparing Bitcoin to Eggs and why it matters

What a complete yolk! Comparing Bitcoin to Eggs and why it matters Liam ‘Akiba’ Wright · 4 seconds ago · 2 min read

How many eggs can you get for 1 Bitcoin? One might ask “what do eggs have to do with Bitcoin?” Surprisingly we can gather a ton of useful information by examining the price of eggs over the past 40 years.

2 min read

Updated: August 15, 2022 at 5:07 pm

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Cover art/illustration via CryptoSlate

Let’s talk about eggs. Eggs are a staple food for many around the world and one that has changed little since 1980. Free-range, grass-fed, organic; these are all changes and improvements to the egg industry, but the underlying product is fundamentally the same.

However, the price of eggs has been far but consistent, as the data below from the St. Lois Fed indicates. The average price of eggs in 1980 was less than $1, while in 2022, the same product costs around $3, a 3x price.

Due to the impact of long-term inflation, $1 in 1980 has the equivalent in purchasing power of around $3.60 today. This increase amounts to a rise of $2.60 in the space of 42 years. Throughout this time, the Dollar had an average inflation rate of 3.09% per year, producing a cumulative price increase of 259.56%.

Holding an asset like BTC is important on both a long-term horizon and low-time preference. If we change the unit of account from USD to BTC, we get an entirely different chart. When measured in BTC, it looks like the price of eggs has fallen drastically since 2015.

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Using today’s Bitcoin price, in 2009, it would cost you $1m for eggs, whereas in 2022, it would be nearly 12,000 Sats (roughly $3.)

While this is more of a theoretical argument than a practical one, it does showcase that the purchasing power of Bitcoin, when compared to an everyday essential such as eggs, has risen dramatically over recent years.

The purchasing power of the Dollar (and most fiat currencies) falls over time. Bitcoin is unique because its purchasing power has continued to rise following each halving cycle. Past performance is not indicative of future success, but Bitcoin’s mechanics don’t change. There is a fixed supply of Bitcoin; no money printer run by a central bank exists.

The amount of Bitcoin that was last active 5+ years ago has reached an all-time high of 25%, meaning a quarter of all Bitcoins have not moved for five years. Therefore, those who purchased Bitcoin in 2017 can now buy more eggs than ever before with their BTC.

Eggcellent news for Bitcoin Hodlers.

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For those interested, you can load up a debit card with Bitcoin using companies such as Crypto.com, Ziglu, BitPay, Binance, and many more. Once you’ve done this, you can use your Bitcoin to buy eggs. With 1 Bitcoin, you can buy 122,979 eggs at today’s price in a UK grocery store; or 1 egg for just 0.000008 BTC.

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TON Network launches Telegram wallet bot for P2P crypto trading

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TON Network launches Telegram wallet bot for P2P crypto trading

TON Network launches Telegram wallet bot for P2P crypto trading Anthony Clarke · 5 hours ago · 2 min read

Independent developers within the TON community built a wallet and peer-to-peer crypto trading bot within the Telegram app.

2 min read

Updated: October 5, 2022 at 1:53 am

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Cover art/illustration via CryptoSlate

Telegram users can now buy and sell cryptocurrency within the app due to a new update for the @wallet bot. In April, the TON (short for “The Open Network”) cryptocurrency gained its own @wallet bot on Telegram’s open WebApps platform, allowing users to buy, sell, and trade Toncoin (TON) without leaving the chat application.

A team of independent TON developers working has released a full-fledged cryptocurrency wallet inside the chat app. With this new addition, users can conduct cryptocurrency transactions directly with one another, with the service functioning as a third-party guarantor.

Instead of sending crypto to another address, users only need the Telegram handle of the recipient to transfer Toncoin. The @wallet bot functions similarly to a banking app, enabling users to buy Toncoin using their credit or debit cards within Telegram. Users will also be able to buy and sell Toncoin using fiat currencies such as Dollars (USD), Euros (EUR), Ukrainian Hryvnia (UAH), Belarusian Rubel BYN, and Kazakhstani Tenge (KZT).

The Open Network (TON) was developed in 2018 by Parel Durov and Nikolai Durov, the founders of the Telegram messaging app. Eventually, the project’s creators turned it over to the TON community, and since then, the group has been responsible for expanding and improving it. Later, a group of non-commercial backers came together to create the TON Foundation, whose role was to supervise the development of the TON Blockchain.

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The TON development community built the @wallet bot to facilitate cryptocurrency transactions inside the confines of Telegram. Since its introduction, there has been a significant increase in the use of the @wallet, with over a million wallets created and a $5 million quarterly revenue run.

The @wallet team spoke on the development of the Telegram trading bot, telling CryptoSlate:

“The launch of the P2P market is another step towards our main goal of creating a full-fledged crypto wallet integrated into Telegram via a bot.”

The developers’ aim was to build a cryptocurrency wallet that is user-friendly and simple to use for everyday people. The @wallet team told CryptoSlate, “We’re creating a product that would be as convenient as possible for those just getting started with cryptocurrencies, so we pay a lot of attention to crafting an intuitive interface.” continuing:

“We believe that by taking this approach, we will be able to build a large audience and that @wallet will become the most popular crypto wallet among Telegram users.”

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Research: Grayscale’s GBTC drops to all-time low of $12.5K; conversion to spot ETF could trigger rebound

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Research: Grayscale’s GBTC drops to all-time low of $12.5K; conversion to spot ETF could trigger rebound

Research: Grayscale’s GBTC drops to all-time low of $12.5K; conversion to spot ETF could trigger rebound Christian Nwobodo · 2 hours ago · 2 min read

Prior to Feb. 2021, GBTC was trading at a premium of up to 20%. As of Sept. 30, the share price has slipped into the discount area with its current price of $12,508 (priced with a -36.2% discount).

2 min read

Updated: October 4, 2022 at 5:37 pm

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Cover art/illustration via CryptoSlate

Grayscale’s bitcoin trust (GBTC) which started trading at a discount in Feb. 2021 has reached an all-time low of -36% when compared to the spot BTC price of $19,000.

Grayscale launched the first bitcoin trust in 2013, to provide institutional investors exposure to BTC through traditional instruments.

As of date, assets under management in the bitcoin trust are approximately $12.3 billion. Grayscale holds 635,240 BTC representing 3.3% of BTC’s circulating supply, with each BTC per share worth 0.00091748‡.

Prior to Feb. 2021, GBTC was trading at a premium of up to 20%. However, the share price has slipped into the discount area with its current price of $12,508 (priced with a -36.2% discount), as of Sept. 30. 2022.

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GBTC Price (via TradingView)

At the current 36.25% discount, institutional investors’ interest in GBTC remains at an all-time low. Delphi Digital Analyst Andrew Krohn noted that the increasing GBTC discount may suggest a declining interest of institutional investors in bitcoin.

Some suggest that the increasing discount illustrates subsiding institutional interest in Bitcoin, while others point to a wider offering of ETFs or alternative vehicles for BTC investment.

The interest of institutional investors may remain low until $GBTC starts getting closer to the net asset value of $BTC.

Will a spot ETF approval trigger the next bull run?

GBTC shares accrue a 2% fee annually and are subject to a six-month lock-up. If prices fall within the lock-up period, investors can not exit their position to cut the losses.

In recent times, cheaper bitcoin ETF options have been launched across Canada, Europe, and the US.  Management fees for ETFs are relatively cheaper and investors can enter and exit their position at will.

Grayscale moved to have its trust fund converted to ETF, but the SEC rejected the application. The firm has refilled its application for further consideration.

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According to Krohn, the GBTC discount trend may reverse as soon as the fund is converted into an ETF.

“If the SEC approves Grayscale’s request to turn the fund into an ETF, the discount could be erased rather quickly.”

With bitcoin increasingly reclaiming its reputation as digital gold, a spot ETF approval could imitate a similar trend as the first gold ETF.

The launch of the first Gold ETF “Gold Bullion Securities” in 2003, saw the price of Gold soar significantly over the years and now trades above $1709, up by 368%, since the first Gold ETF launch.

Expectedly, a spot bitcoin ETF approval will attract more institutional and retail investors, leading to increased demand and price for BTC, which could usher the crypto market into the next bull run.

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ARK Invest’s crypto strategies to offer top 20 crypto assets to wealth managers

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ARK Invest’s crypto strategies to offer top 20 crypto assets to wealth managers

ARK Invest’s crypto strategies to offer top 20 crypto assets to wealth managers Christian Nwobodo · 2 hours ago · 2 min read

ARK Invest has partnered with Eaglebrook to provide wealthy investors exposure to top 20 crypto assets through separately managed accounts.

2 min read

Updated: October 3, 2022 at 9:30 pm

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Cover art/illustration via CryptoSlate

Cathie Wood-led ARK Invest has inked a partnership with Eaglebrook Advisors to offer the ARK Cryptocurrency and ARK Cryptoasset strategies available as a separately managed account (SMA) for financial advisors and wealth managers.

Since 2015, ARK Invest has been involved in crypto equity and security investments. Through the ARK Exchange Traded Funds (ETF), the investment adviser has provided investors exposure to crypto assets investments.

Eaglebrook offers separately management accounts (SMAs) for wealth managers and advisors to gain direct exposure to digital assets on behalf of their clients.

ARK CEO Cathie Wood said that the partnership with Eaglebrook will introduce a new asset class to the wealth management industry.

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She added that::

“The strategies will be separately managed accounts (SMAs) designed to meet the needs of financial advisors, wealth managers, and their clients by offering direct ownership, low minimums, and portfolio reporting integration amongst other benefits.”

ARK Crypto Strategies coming to Wealth Managers

ARK Crypto Strategies are designed to leverage blockchain’s promise to bring revolution across money, finance, and the internet.

The ARK Cryptocurrency Strategy is a high conviction portfolio that invests primarily in bitcoin (BTC) and Ethereum (ETH). The strategy seeks to capitalize on the monetary revolution as the two flagship assets are expected to be uncorrelated to other asset classes or traditional systems in the long term.

On the other hand, the ARK Cryptoasset Strategy will invest only in the top 10-20 coins, which ARK has identified as having the potential to drive the financial and internet revolutions. The assets will be selected across smart contract networks, decentralized finance, web3, and infrastructure and scaling solutions.

Despite the global crypto market shedding over $2 trillion since its peak in Nov. 2021, ARK Invest Cryptoasset Analyst Yassine Elmandjra believes the time is right for investors to enter the market leveraging ARK’s Crypto Strategies.

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“We’re thrilled to be offering actively managed crypto strategies to advisors during a time when, we believe, much of the speculative behaviors have died down. We believe this presents an attractive entry point for investors.”

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