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Crypto a year ago vs now

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A year ago we wrote a piece that quickly and simply highlighted “5 reasons to consider adding DCX10 to your portfolio?”. Time flies, and so has the DCX10 token. The YTD return of the token is over 100% and the bull market is just getting started. 

A year ago vs now.

 

  • An ever weakening Rand: Local and global issues last year caused the Rand to weaken from roughly 13.90 to 15.30 against the dollar. In 2020 we have seen the Rand weaken to R19.35. DCX10 has protected against this weakness. Since DCX10 is exposed to the top 10 Cryptocurrencies, mainly traded against USD, it likes a weak Rand.

  • Bitcoin dominance: Last year Bitcoin’s dominance (percentage of total crypto market cap) was touching 70 percent, a level that was not seen since April 2017 just before the previous crypto bull market during which Bitcoin was overshadowed by altcoins. It has come down to 57% and trending lower. During the 2017 mega crypto bull market dominance reached a low of 30%. This is a great trend to watch, it shows we are in a bull phase and that alts are performing as expected. DCX10 is poised to capitalise on altcoin growth.

  • Flight to safety narrative: It’s a never ending debate on crypto social media - could Bitcoin be digital gold? While gold has had a good year, BTC has had a significantly better one. Whatever passionate side of the argument you are on, DCX10 holds BTC.

  • Institutional crypto adoption: Adoption has continued at a roaring pace, last quarter 20 institutions filed paperwork with the U.S. Securities and Exchange Commission showing they invested in GBTC, a listed investment trust. This week their assets also hit an all time high of $6.3 billion under management. We have also seen listed companies like MicroStrategy buy $250M in Bitcoin as they view it as “superior to holding cash. 

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  • 17 Trillion dollars of negative yielding debt: While the amount of negative yielding debt has declined, nothing has changed on the total debt front, it continues apace. What is negative yielding debt again? Buying a bond with a negative yield means that investors are willing to PAY, in this case, governments and even some corporates, to keep their money safe. If Bitcoin were a bond, it would have a 0% yield - better than 17 trillion of debt and that’s not counting capital gain potential. Thanks to Covid, the USA alone has pushed to issue $2.2 Trillion in aid/stimulus packages, the largest in its history.

 

The Crypto bull market

One of the biggest value propositions of the index token is when you buy DCX10, you automatically have exposure to Bitcoin and the 9 other most prominent cryptocurrencies. Most experts agree that these other 9 altcoins rise faster than Bitcoin in a bull market due to the demand from investors switching to these in search of even higher returns than what is available from BTC. Because many of these altcoins are still in their early phase, growth can be stellar. We are in this phase now.


 

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Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Earle Loxton, CEO of DCX Capital (Pty) Ltd as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. First World Trader (Pty) Ltd t/a EasyEquities (“EasyEquities”) does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information (i) contained within this research and (ii) received from third party data providers. You must rely solely upon your own judgment in all aspects of your investment and/or trading decisions and all investments and/or trades are made at your own risk. EasyEquities (including any of their employees) will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.