Cryptocurrency: Litecoin and Stellar blaze, Bitcoin returns on 9,000 $ :


Cryptos never sleep. After a restless night, the major digital currencies are still recovering this Wednesday, in a very beautiful way! The Litecoin (+ 34% to $ 211 according to Coinmarketcap) and the Stellar (+ 12% to $ 0.45) show the best performance of the lot.

Bitcoin climbed 7% to $ 9,275, while Ethereum rose 6% to $ 898. The Ripple is pretty stable over 24 hours at $ 1.07, but has just picked up nearly 40% over seven days! Bitcoin Cash wins 11% over 24 hours and 37% over seven days, back to $ 1,376. Cardano and NEO advance from 5% to 6% ...

Pay taxes in 'cryptos'? Not excluded in the United States
Several US states consider the possibility of authorizing the payment of taxes in cryptocurrency. Arizona has just passed a bill to this effect. The legislation would allow residents to pay their income tax by using Bitcoin or other digital currencies. Nevertheless, it is stipulated in the bill that the 'cryptos' possibly used as a method of payment will have to be converted within 24 hours into 'traditional' currency ... Legislators from Colorado and Wyoming have also expressed interest in a such alternative payment solution ...

New study on crypto-currencies
After pessimistic and even catastrophic studies by Goldman Sachs and Deutsche Bank on Bitcoin and cryptocurrencies, JP Morgan Chase delivered a more positive report on the subject. This is a surprise, since the boss of the bank, Jamie Dimon, has never been a great defender of 'cryptos', quite the contrary.

ETFs could change everything
JP Morgan finds that ten Bitcoin-linked Exchange Traded Funds (ETFs) await market approval in the United States. These 'tracker' funds, tracing the performance of the crypto-currency, could completely change the situation for Bitcoin, which is currently difficult for large investors to access.

JP Morgan recalls that the 'SPDR Gold Shares' ETF launched in 2004 was the first ETF on gold approved by the SEC, the US market authority. After this launch, access to gold was opened to new investors, allowing them to easily diversify their portfolios. Between 2004 and 2011, the price of gold had risen from $ 440 to $ 1,900! To date, JP Morgan notes, the ETF SPDR Gold Shares has become one of the largest in the market, with over $ 35 billion under management!

Market liquidity
It is undoubtedly this success of the first entrant that inspired the companies having quickly requested the approval of their ETF on Bitcoin. While current investors need their 'wallets' to play the BTC, the arrival of ETFs would greatly simplify things by offering much better accessibility and greatly increased liquidity.

Avoid any risk of hacking
Better yet, ETFs would allow operators to avoid certain pitfalls, such as potential hacking or fraud. Recent cases (Coincheck and BitGrail platforms) have thus demonstrated the strong exposure of current cryptocurrency investors to certain unexpected adverse events.

Fewer fees
ETFs would also solve another investment problem in Bitcoin, namely transaction costs and 'spread' (gap between best and best bid). Indeed, JP Morgan states in its report that Bitcoin transactions are expensive, compared to transactions in equities, ETFs or 'futures'.

And volatility?
On the other hand, to become a good investment vehicle, according to the criteria of the merchant bank, Bitcoin should mature, which means that its volatility, currently very strong, will have to decrease. "Based on historical performance, cryptocurrencies can be ten times more volatile than key assets such as equities, or hedges of portfolios, such as commodities."

Cryptos should last
While Goldman Sachs is considering the ultimate disappearance of most of the current digital currencies, JP Morgan believes that they should last. Crypto-currencies "probably should not disappear completely, and could easily survive in different forms and different aspects, among actors wishing for greater decentralization, peer-to-peer networks and anonymity, even if the last is threatened, "said JP Morgan.

Potential of the blockchain
The technology on which the 'cryptos' are based, namely the blockchain, is also considered convincing. Thus, JP Morgan sees the power of the blockchain and its vast potential. It offers particularly sought-after security, according to JP Morgan, who believes blockchain can help banks in terms of transparency, market finance, or as a payment system.
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