For most of the past 25 years, Michael Saylor was a relatively low-profile tech executive running a boring software firm in Tysons. During the pandemic, however, his career took an unexpected turn when he made a nearly $500-million bet on a notoriously unpredictable cryptocurrency. The transformation began last March, when Saylors company, MicroStrategy, was looking for a place to park a half billion dollars in reserve funds. In August, he began buying up hundreds of millions of dollars in Bitcoin, the trendy currency that has fascinated digital risk-takers since it was introduced in 2009. Its the best money created in the history of the world, Saylor says. Then, in December, MicroStrategy went even further, announcing it was taking on $650 million in debt in order to, yes, buy more Bitcoin.

Bitcoins volatility is one of its defining features; its value plunged from $19,000 per unit in 2017 to less than $4,000 the following year. By early 2021, a Bitcoin was worth more than $40,000. Saylor sees the cryptocurrency as a great way to protect his companys money from inflation, which he thinks will skyrocket.

Will that huge bet pay off? Well have to wait on that one, because Saylor claims he wont sell his Bitcoin trove for at least 100 years. But in the meantime, Saylor has himself become something of a celebrityone of the most prominent cryptocurrency evangelists. His Twitter following has surged to more than 300,000, and he now fields interview requests from the kind of national business publications that werent terribly interested in MicroStrategy before. Of course, by prominently advocating for Bitcoin, he helps protect the value of his own investment.

Born in Nebraska and raised mostly in Ohio, Saylor is an MIT alum who moved his six-year-old company from Delaware to the Washington area in 1995, and his net worth was at one point estimated to be in the billions. Hes also had his share of controversy: In 2000, he settled with the SEC over charges of financial impropriety (without admitting guilt). More recently, he has been an opponent of some Covid safety measures.

Saylors Bitcoin gamble has so far looked prescient. Its price has exploded by a factor of seven since March 2020, and MicroStrategys stock price has surged fivefold. Even so, in December, Citigroup analysts recommended that investors start selling MicroStrategy shares, citing concerns about overvaluation as well as Saylors disproportionate focus on Bitcoin vs. running the business.

Saylor waves away such criticism. Bitcoin is a radical new thing, he says, so if you are in the old paradigm, your view would be this is just scary and risky. Plus, his crypto fame is paying off in other ways: I think probably it would cost us $100 million a year to buy the kind of publicity that we now get for free.

Join the conversation!

Director, Digital Products

Go here to read the rest:
Michael Saylor Explains Why He's Investing More Than $1 Billion in Bitcoin - Washingtonian

TipRanks

Were well into the first quarter of 2021 now, and its a good time to take stock of whats behind us, and how it will impact what lies ahead. Goldman Sachs strategist Jan Hatzius believes that we are on an upward trajectory, with better times ahead. Hatzius sees the developed economies expanding as the corona crisis recedes. For the US, particularly, he is impressed by the very substantial fiscal support implies in the latest COVID relief package. Even with that, however, Hatzius believes that Q4 was a weaker period, and we are still not quite out of it. Hes putting Q1 growth at 5%, and says that were going to see further expansion concentrated in the spring, and an acceleration to 10% growth rate in Q2. And by accelerations, Hatzius means that investors should expect Q2 GDP in the neighborhood of 6.6%. Hatzius credits that forecast to the ongoing vaccination programs, and the continued development of COVID vaccines. The Moderna and Pfizer vaccines are already in production and circulation. Hatzius says, in relation to these programs, That fact that we are developing more options and that governments around the world are going to have more options to choose between different vaccines [means] production is likely to ramp up in pretty sharply in incoming months Its definitely a major reason for our optimistic growth forecast. In addition to Hatzius' look at the macro situation, analysts from Goldman Sachs have also been diving into specific stocks. Using TipRanks' database, we identified two stocks that the firm predicts will show solid growth in 2021. The rest of the Street also backs both tickers, with each sporting a Strong Buy consensus rating. Stellantis (STLA) Weve talked before about the Detroit automakers, and rightly so -- they are major players on the US economic scene. But the US hasnt got a monopoly on the automotive sector, as proven by Netherlands-based Stellantis. This international conglomerate is the result of a merger between Frances Groupe PSA and the Italian-American Fiat-Chrysler. The deal was a 50-50 all stock agreement, and Stellantis boasts a market cap exceeding $50 billion, and a portfolio of near-legendary nameplates, including Alpha Romeo, Dodge Ram, Jeep, and Maserati. The deal that formed Stellantis, now the worlds fourth largest automotive manufacturer, took 16 months to accomplish, after it was first announced in October 2019. Now that it is reality the merger was completed in January of this year the combined entity promises cost savings of nearly 5 billion euros in the operations of both Fiat-Chrysler and PSA. These savings look to be realized through greater efficiency, and not through plant closures and cutbacks. Stellantis is new in the markets, and the STLA ticker has supplanted Fiat-Chryslers FCAU on New York Stock Exchange, giving the new company a storied history. The companys share value has nearly tripled since its low point, reached last March during the corona recession, and has stayed strong since the merger was completed. Goldman Sachs analyst George Galliers is upbeat on Stellantis future, writing, We see four drivers which, in our view, will enable Stellantis to deliver. 1) PSA and FCAs product portfolios in Europe cover similar segment sizes at similar price points 2) Incremental economies of scale can potentially have a material impact on both companies... 3) Both companies are at a relatively nascent stage [in] electric vehicle programs. The merger will prevent duplication and deliver synergies. 4) Finally, we see some opportunities around central staffing where existing functions can likely be consolidated... In line with this outlook, Galliers rates STLA a Buy and his $22 price target indicates room for 37% growth in the year ahead. (To watch Galliers track record, click here) Overall, this merger has generated plenty of buzz, and on Wall Street there is broad agreement that the combined company will generate returns. STLA has a Strong Buy consensus rating, based on a unanimous 7 buy-side reviews. The stock is priced at $16.04, and the average target of $21.59 is congruent with Galliers, suggesting a 34.5% one-year upside potential. (See STLA stock analysis on TipRanks) NRG Energy (NRG) From automotive, we move to the energy sector. NRG is a $10 billion utility provider, with dual head offices in Texas and New Jersey. The company provides electricity to more than 3 million customers in 10 states plus DC, and boasts a over 23,000 MW was generating capacity, making it one of North Americas largest power utilities. NRGs production includes coal, oil, and nuclear power plants, plus wind and solar farms. In its most recent quarterly report, for 3Q20, NRG showed $2.8 billion in total revenues, along with $1.02 EPS. While down year-over-year, this was still more than enough to maintain the companys strong and reliable dividend payment f 32.5 cents per common share. This annualizes to $1.30 per common share, and gives a yield of 3.1%. Analyst Michael Lapides, in his coverage of this stock for Goldman Sachs, rates NRG a Buy. His $57 price target suggest an upside of 36% from current levels. (To watch Lapides track record, click here) Noting the recent acquisition of Direct Energy, Lapides says he expects the company to deleverage itself in the near-term. After NRGs acquisition of Direct Energy, one of the larger electricity and natural gas competitive retailers in the US, we view NRGs business as somewhat transformed. The integrated business model owning wholesale merchant power generation that supplies electricity that gets used to serve customers supplied by NRGs competitive retail arm reduces exposure to merchant power markets and commodity prices, while increasing FCF potential," Lapides wrote The analyst summed up, "We view 2021, from a capital allocation perspective, as a deleveraging year, but with NRG creating almost $2bn/year in FCF, we see a pick up in share buybacks as well as 8% dividend growth ahead in 2022-23." Were looking at another stock here with a Strong Buy analyst consensus rating. This one based on a 3 to 1 split between Buy and Hold reviews. NRG is trading for $41.84 and its $52.75 average price target suggests a 26% upside from that level on the one-year time frame. (See NRG stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that unites all of TipRanks equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Read more here:
Not Just Bitcoin, Paypal's Vision Involves Central Bank Digital Currencies Too: What You Need To Know - Yahoo Finance

This level achieved that the digital asset will exceed its record set on Monday, February 8, after Tesla announced the investment of 1.5 billion dollars in the cryptocurrency.

Stay informed and join our daily newsletter now!

February12, 20211 min read

Bitcoin surpassed $ 47,000 on Thursday, February 11, and set a new record. The cryptocurrency rose 7.9 percent and reached a price of $ 47,837.74.

This level achieved that the digital asset will exceed its record imposed on Monday, February 8, after Tesla announced the investment of 1.5 billion dollars in the cryptocurrency.

According to El Financiero , eToro analyst Simon Peters commented that these types of assets were entering the realms of traditional finance at an astonishing rate.

Image: Depositphotos.com

On the other hand, Mastercard, described them as "stable coins" that constantly combine their value with other assets such as the US dollar.

Mastercard has given cryptocurrencies new credibility this week by announcing that it intends to start supporting payments using them on its network this year.

The rest is here:
Bitcoin exceeds $ 47,000 and sets a new record - Entrepreneur

Cryptocurrency mining rigs at a crypto mining farm in Romania.

Akos Stiller | Bloomberg via Getty Images

LONDON Bitcoin's price isn't the only thing surging lately the amount of electricity it consumes is also on the rise.

The cryptocurrency has for years alarmed experts due to the sheer level of energy required by so-called miners, which release new coins into circulation.

Bitcoin has a carbon footprint comparable to that of New Zealand, producing 36.95 megatons of CO2 annually, according to Digiconomist's Bitcoin Energy Consumption Index, an online tool created by data scientist Alex de Vries. It consumes as much power as Chile around 77.78 TWh according to Digonomist's estimates.

The Cambridge Bitcoin Electricity Consumption Index, a separate tool from researchers at Cambridge University, shows a much larger figure of 110.53 TWh more than the entire annual energy consumption of the Netherlands.

"That's an unfathomable amount of electricity," said Charles Hoskinson, a cryptocurrency entrepreneur who co-founded Ethereum, the blockchain network underpinning ether, the world's second-most valuable digital coin.

Bitcoin's energy needs are "enormously large," Michel Rauchs, research affiliate at the Cambridge Centre for Alternative Finance, told CNBC. It accounts for around 0.5% of total global electricity consumption, according to the Cambridge researchers' estimates.

"Although we agree the amounts are ludicrous right now, that is still half as much as inactive home appliances in the U.S. consumed," Rauchs said. The amount of energy wasted on idle home devices like phone chargers and microwaves in the U.S. could power the bitcoin network for two years.

Bitcoin isn't controlled by any single authority like a central bank but a disparate network of computers. So-called "miners" run purpose-built computers which compete to solve complex math puzzles in order to make a transaction go through.

The blockchain a digital ledger of all bitcoin transactions is designed this way to ensure that users aren't able to "double spend" funds, a flaw in which the same digital token could be spent more than once. Each block that is added onto the chain carries a hard, cryptographic reference to the previous block. Proponents of bitcoin say this makes it extremely secure.

But bitcoin miners do not run this operation for free. A key incentive of bitcoin's model, known as "proof of work," is the promise of being rewarded in some bitcoin if you manage to solve the complex hashing algorithm.

"The issue is, it can never get better by design," says Hoskinson, who now runs IOHK, a blockchain firm that developed another digital token called cardano.

"The more successful bitcoin gets, the higher the price goes; the higher the price goes, the more competition for bitcoin; and thus the more energy is expended to mine."

Cardano and some other digital coins rely on a "proof of stake" consensus mechanism, where participants buy tokens which allow them to join the network. Hoskinson says the cardano cryptocurrency network consumes only 6 GWh of power, a tiny fraction of bitcoin's energy consumption. Similar proof-of-stake tokens include polkadot and algorand, he added.

Rauchs said bitcoin is only likely to consume more and more electricity over time due to its proof of work mechanism.

"It doesn't really matter whether there are new, more efficient machines on the market," Rauchs said. "You will just use more and more machines but the total electricity consumption won't go down based off of that."

A key measure of bitcoin's mining difficulty hit an all-time high last month. With bitcoin rising in price, revenue to miners is also increasing, incentivizing more participants to mine the cryptocurrency.

Nevertheless, bitcoin believers argue that disputes about its environmental impact are missing the point.

"Energy use in itself is not bad," Meltem Demirors, chief strategy officer of digital asset management firm CoinShares, told CNBC. "Sending and storing emails uses energy. Yet, we don't infer email to be bad because it consumes energy."

"What we have here is people trying to decide what is or is not a good use of energy, and bitcoin is incredibly transparent in its energy use while other industries are much more opaque."

Demirors questioned why the banking industry, for instance, wasn't under more scrutiny for its energy usage. She said bitcoin miners were "incentivized to use renewables" because it's getting cheaper to produce it.

But most bitcoin mining facilities are located in China, which is still heavily reliant on coal-based power. Though the Chinese province of Sichuan is known to attract miners due to its cheap electricity and rich hydropower resources, the level of power generation capacity fluctuates depending on the season.

Then there's the question of how bitcoin is used. Many investors today consider bitcoin to be a form of "digital gold" rather than an efficient payment system Digiconomist estimates that the energy footprint of one bitcoin transaction is equivalent to 100,000 payments on the Visa network.

The cryptocurrency more than quadrupled in value last year and is up another 27% so far this year, according to Coin Metrics, currently trading at about $37,189.

Andrew Hatton, head of IT at Greenpeace U.K., said the larger issue at hand is that "we're largely powering 21st-century technology with 19th-century energy sources."

"Bitcoin's spiralling energy usage is largely down to the huge amount of data-crunching needed to create and maintain this cyber-currency," Hatton told CNBC. "But their fast-growing hunger for electricity is just an early symptom of a much bigger problem to come."

"As online services become bigger and more complex, the demand for computing power is bound to go up over the next few years, and that will require more energy," he added. "The problem is that only about a fifth of the electricity used in the world's data centres comes from renewable sources, and that's not good enough."

Continue reading here:
Bitcoin's wild ride renews worries about its massive carbon footprint - CNBC

The price of Bitcoin (BTC) broke above $40,000 on Feb. 6 for the first time in 23 days. But this time, the market sentiment is a lot calmer with a less overheated derivatives market.

The combination of a less crowded Bitcoin futures market, the selling pressure from whales peaking, and a fast recovery could help BTC stabilize above $40,000 this time.

On Jan. 29, a pseudonymous Bitcoin researcher and analyst known as Material Scientist said that mega whale order flow reached an all-time high.

This means that the selling pressure coming from whales dealing with $1 million to $10 million orders reached a record-high. The analyst said at the time:

If the price of Bitcoin establishes $40,000 as a new support area, it would establish a highly positive short-term price trend for BTC.

It would mean that BTC can now rally towards its all-time high without the massive selling pressure coming from major whales and high-net-worth investors.

In the near term, for Bitcoin to maintain its bullish structure, it would need to protect two key support levels: $40,000 and $37,834.

Meanwhile, according to the analysts at Whalemap, a data analytics platform that tracks whale data, there is a confluence of whale supports at $37,834 and $36,290.

If Bitcoin breaks down from $40,000, these two support areas would be critical to defend. Below these two levels would likely result in a short-term bearish trend. The analysts wrote:

In the foreseeable future, some traders anticipate Bitcoin to surge beyond $60,000 with the momentum from the ongoing rally.

Scott Melker, a cryptocurrency trader, said there will be pullbacks, but Bitcoin would likely reach $63,000 following the breakout. He said:

Bitcoin technically broke out of the bull flag when it surpassed $38,000 on Feb. 4. Considering that Bitcoin is looking stronger than the last time it broke $40,000 a month ago, there is sufficient momentum to carry it past $50,000this time around.

A potential catalyst in the near term could be Guggenheim potentially confirming its investment in Bitcoin after securing the rights to invest in the Grayscale Bitcoin Trust in February.

Read the rest here:
Launching in 3, 2... Here's why Bitcoin breaking $40,000 is different than last time - Cointelegraph