Bitcoin’s record-breaking run this week on the back of the launch of the first US Bitcoin futures exchange-traded fund is significant for legitimising cryptocurrency long term. And an easy way in for first-time investors. But just days after launch, the fund risks becoming too popular for its own good.
And while congrats are in order for those who held onto their bitcoins through thick and thin, for local investors wanting in, trading in bitcoin comes with a warning: “It is easy to get caught up and fear missing out in a bull market, so all allocations to cryptocurrencies should be made with risk capital, and follow the principles of diversification to minimise risk,” Josh Miltz, co-founder of crypto investment company BitFund, told Moneyweb.
Other doors opening up for first-time crypto buyers will now include in-store buying. In the US, Walmart is rolling out a pilot program for shoppers to buy bitcoin at 200 Coinstar kiosks – a convenience and easy in but at a huge cost.
What would a Bitcoin story be without a tweet from Elon Musk? True to form the Tesla CEO tweeted a meme showing the price of bitcoin at $69,000 and ether at $4,200. The long-time crypto advocate revealed in July that besides bitcoin, he personally owned “a bit of ethereum and dogecoin”. His electric vehicle and clean energy company also currently holds bitcoin worth $1.26bn on its balance sheet, the company’s third-quarter earnings report shows. According to bitcoin.com, Tesla’s bitcoin stash is worth about $2.65bn at the current bitcoin price.
Meanwhile, the rand, along with its emerging market currency peers, came under pressure after good US economic data gave the dollar a boost. For the Turkish lira it packed a double punch after the country’s central bank shocked the market with a rate cut twice as deep as economists predicted. Bloomberg reports economists are now betting the lira may hit the 10-per-dollar level before year’s end.
The local unit is currently quoted at R14.64 against the greenback. “A break above the technical resistance level of R14.70 could see the rand test the next R14.85 target, but this is likely to depend on further dollar recovery,” comments TreasuryONE.
Here’s a roundup of the world’s top and most interesting headlines:
SA Business
Contractor behind R15m Enoch Mgijima stadium scores R41m tender at another broke ANC-run municipality – News24
Ex-Fidentia boss and convicted fraudster J Arthur Brown released on parole – Daily Maverick
Good news for South Africans travelling to Australia – BusinessTech
Global Business
‘Driverless’ Tesla crash in Texas wasn’t actually driverless, NTSB says – The Verge
Melbourne toasts end of long Covid lockdown – AFP
Millions of French motorists to get €100 to help them cope with rising fuel costs – Sky News
Markets
Asian markets swing but Evergrande payment report provides boost – AFP
Facebook and Alphabet pummeled after Snap warns on ads – Bloomberg
Dollar set for second week of declines despite positive US data – Investing.com
Opinion/In-depth
The CumEx Files (Part Two): How Investec was a player in the world’s largest tax fraud – Daily Maverick
JPMorgan sees a $450 billion market for ‘wallets on wheels’ – Bloomberg
Pass rates for school leavers in South Africa are failing students and universities – The Conversation
Video
Blockchain explained: Breaking down the technology that’s transforming the world of finance – Euronews
How playing video games is becoming a full-time job – Newsy
Soaring prices hurt India’s festival season – Reuters
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