This is the warning from Nigel Green, deVere Group CEO and founder, as the world’s largest cryptocurrency jumped more than 4% on comments made by Jerome Powell that the Fed is investing a significant amount into digital currency development.
Mr Green states: “This is further evidence that not only all major banks, government agencies, plus most sectors including tech, entertainment and real estate, are piling into cryptocurrencies – but that central banks are too.
“The previously sceptical Fed has not, until now, admitted how rapidly digital currencies could become a systemic risk to the US dollar’s status as global reserve currency.
“This is a major step in underscoring – especially to those backward-looking traditionalists – that, whether they like it or not, digital global currencies are not only the future of money, they are increasingly the present too.”
He continues: “The development from the Fed comes following news that China – a communist state and the US’s main economic rival – is currently developing what has been described as an all-powerful cryptocurrency. It could be ready this year and be the world’s sovereign digital currency.”
Mr Green goes on to say: “Whilst there will be minor peaks and troughs – as in all markets - I predict the overall trajectory of Bitcoin to remain upward for the next few months.
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“Besides increasing institutional awareness and development, other major factors driving its price advance will be coronavirus.
“Bitcoin’s price is likely to continue to jump until the coronavirus peaks because of the growing consensus that the digital currency is a safe-haven asset.
“Its status comes from the fact that it is a store of value, scarce, perceived as being resistant to inflation, and a hedge against turmoil in traditional markets.”
He adds: “Another major price driver will be the next halving event.
“The code for mining Bitcoin halves around every four years and the next one is set for May this year. When the code halves, miners receive 50% fewer coins every few minutes. History shows that there is typically a considerable Bitcoin surge resulting from halving events.”
The deVere CEO concludes: “The Fed’s public acknowledgement of cryptocurrencies was important, but most investors have already known that major central banks around the world are developing crypto.
“As such, the main drivers for Bitcoin price for the next few months will remain coronavirus and May’s having event.”
(Source: deVere Group)
The prediction from Nigel Green, the chief executive of deVere Group, comes after the world’s largest cryptocurrency experienced a 20 per cent price surge over the weekend.
Mr Green commented: “Bitcoin has registered some impressive gains over the last 48 hours after being in a lull period in recent weeks.
“As of now, it has defied the so-called Death Cross – a bearish pattern that takes place when the 50-day moving average falls below the 200-day moving average.
“The $8,500 support has previously acted as a crucial support for Bitcoin. I believe that if Bitcoin bulls can keep the price above this over the next week, the world’s dominant cryptocurrency will experience a breakout and will hit $12,000 before the end of the year.”
He continued: “This latest surge in Bitcoin was triggered by China’s President Xi calling the adoption of blockchain – the technology on which cryptocurrencies run - an important breakthrough for independent innovation of core technologies.
“This is a clear signal that the leader of the world’s second-largest economy is moving towards embracing the technology – in which Bitcoin plays a vital part – and therefore taken as a positive boost for the whole digital currencies sector.
“Perhaps quite sensibly, investors could not ignore the comments and sentiment expressed by President Xi and reacted by increasing exposure to Bitcoin.
“It also comes as China is said to be developing its own national digital currency, which is further proof that in some form or another, digital currency is the future.”
He added: “As history teaches us, it’s likely that momentum, perhaps partly driven by FOMO (the Fear Of Missing Out), will now pick-up pace again in the cryptocurrency sector. Should this be maintained this week, I’m confident it will take Bitcoin to $12,000 before the start of 2020.
“The crypto momentum will also be driven by underlying fundamentals that will come back into focus.
“These include geopolitical issues - such as the U.S.-China trade war and the chaos of Brexit - and the global economic slowdown. These are encouraging exposure to decentralised, non-sovereign, secure digital currencies.
“Also, the technical network improvements that have further enhanced the performance of cryptocurrencies, as well as the forthcoming 2020 Bitcoin halving will also fuel price gains.”
The code for mining Bitcoin halves around every four years and the next one is set for May 2020. When the code halves, miners receive 50 per cent fewer coins every few minutes. History shows that there is typically a considerable Bitcoin surge resulting from halving events.
“But perhaps the most important one is that public awareness is consistently growing. Cryptocurrencies, and in particular Bitcoin, are increasingly part of mainstream finance.
“This is evidenced not only in the financial sector, in which all major banks are increasingly looking at blockchain and crypto, but by the growing interest of governments and institutions, plus the major players within the tech and retail sectors too.”
Nigel Green concluded: “$8,500 is a key support for Bitcoin. Should the Bitcoin price stay above this level, positive sentiment will be amplified, and we would see near year-highs.”
Nigel Green, the Founder and CEO of deVere Group, is speaking out after Donald Trump took to Twitter to say: “I am not a fan of Bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.
“If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National and International,” he added.
The President’s tweets follow last month’s announcement by Facebook that it is to launch its own new digital currency to be called Libra. It is designed to be a low-volatility currency that will let its users buy things or send money to people with very low fees.
It will be backed by reserves managed by an independent organisation, called the Libra Association, made up of several leading tech firms and non-profits that give the token real-world value.
Nigel Green affirms: “President Trump is wrong and is placing himself on the wrong side of history on Bitcoin and other cryptocurrencies.
“The blistering pace of the digitalisation of economies and our lives underscores that there will be a growing demand for digital, global, borderless money.
“Indeed, it is now almost universally regarded as the future of money.
“This is why most major financial institutions globally already have or are preparing to establish crypto desks. It is why more and more retail and institutional investors are piling into the market. And it is why tech giants, like Facebook, are getting involved. And you can bet that where Facebook follows, other tech companies will do the same.
“When everything from voting to music to books is already digital, dismissing digital currencies in a digital era is, frankly, bizarre and looks depressingly archaic.
“Does the President seriously think that traditional, fiat currencies are the way forward?”
Mr Green continues: “However, I agree with Mr Trump that Facebook’s new Libra project should be scrutinised.
“But, being the social media monolith that it is, it is surely expecting this level of scrutiny. I would suggest that it is prepared for it, has the resources for it, and will welcome it, as it will make its cryptocurrency stronger.”
He goes on to add: “The wider point here is regulation. Cryptocurrencies are already becoming mainstream. As such they should adhere to the same standards as the rest of the financial system.
“Regulation is necessary as it will provide further protection for the growing number of people using cryptocurrencies, the less likely it will be that criminals will use these digital payment methods, the less potential risk there will be for the disruption of global financial stability, and the more potential opportunities there will be for higher economic growth and activity in those countries which introduce it.
“And it is surely on its way, judging by the activities of regulators around the world.”
The deVere Group CEO concludes: “Standing on the sidelines, or worse looking backwards, on the issue of cryptocurrencies - which are redefining and reshaping the financial system - is a baffling approach for the leader of the world’s largest economy to take.”
(Source: deVere Group)
Nigel Green, the founder and chief executive of deVere Group, is speaking after the social media giant this week set out details of Libra, its own digital currency, to be launched next year.
Mr Green affirms: “Facebook’s launch into cryptocurrencies tells us two things.
“First, the role of traditional banks will decline at a quicker rate than many had previously predicted. Facebook’s Libra cryptocurrency will be able to transact across traditional payment rails. They have partnered with PayPal, Mastercard, Visa and Stripe, amongst others to fuel merchant acceptance of the digital currency.
“If you have cryptocurrency on these payment methods, the purpose of and use for traditional banks will surely shrink.
“Cryptocurrencies and fintech [financial technology] solutions are already taking business away from banks. They are filling a gap left by the traditional way of doing things as the world speeds up and becomes increasingly globalised and digitalised.
“The jump into cryptocurrencies – which are the future of money – by Facebook which already has 2.7 billion users can really only be seen as another nail in the coffin for banks.”
He continues: “Second, tech giants entering the cryptocurrency sector indicates that digital money, as a concept, is fully mainstream and inevitably the way the world is going. This is something we have been arguing for a long time now – despite protestations from financial traditionalists.
“Where Facebook leads, others will inevitably follow, and this will quicken the pace of mass adoption of cryptocurrencies.”
The deVere CEO concludes: “This is a major development in the crypto-verse and it is surely just the beginning. This is set to revolutionise how people access, manage and use money across the world and it will positively disturb the wider banking sector. Banking as we have known it until now is coming to an end.”
(Source: deVere Group)
The comments from Nigel Green, chief executive of deVere Group, follow surging Bitcoin prices at the end of last week. On Friday, the world’s largest and original digital currency jumped around 10% within 24 hours, pushing past $3,700 for the first time in three weeks.
He observes: “It was a relatively sudden jump, and, of course, positive news for those currently holding Bitcoin.
“However, the price only reached the top of the trading range and investors should not be popping champagne corks just yet.”
Mr Green continues: “There are three likely drivers of Bitcoin’s price spike.
“First, there are widely published reports that according to a leaked interview with a commissioner, a Bitcoin ETF could imminently secure approval from the US securities watchdog.
“Second, the development of the lightning network which will dramatically improve Bitcoin’s well-documented scalability issues, allowing it to move towards mass adoption.
“And third, the 2020 Bitcoin halving. The code for mining Bitcoin halves around every four years and the next one is set for May 2020. When the code halves, miners receive 50 per cent fewer coins every few minutes. History shows that there is typically a considerable Bitcoin surge resulting from halving events.”
The deVere CEO concludes: “Bitcoin is the flagship cryptocurrency and, as such, we can expect when its values climb, it will drive prices of other major digital currencies such as Ethereum and XRP.”
(Source: deVere Group)
Dubai and Abu Dhabi in the United Arab Emirates (UAE) could soon join London, New York and Hong Kong in the world’s top 10 global financial centre rankings, thanks to new government laws affecting expatriates.
This is the bold message from Nigel Green, the founder and CEO of deVere Group. The observation comes as the UAE cabinet on Sunday approved new legislation that allows expatriates to remain in the country long after they retire.
Mr Green affirms: “Dubai and Abu Dhabi are perennially popular destinations for ambitious expatriates looking to embark upon or further their careers because of the incredible possibilities offered in terms of finance, trade and commerce, plus the famous ‘can do’ attitude and the low tax environment in these destinations.
“But they will become even more attractive locations for overseas talent thanks to the government passing these new laws that allow expats to stay on in the UAE long after they retire.”
He continues: “With Dubai and Abu Dhabi becoming ever-more appealing relocation destinations, recruiting more top talent here will inevitably become easier for companies that are based in these emirates.
“In addition, I believe that it will help drive further driving confidence in the UAE as a place for overseas firms to do business and invest.”
Mr Green goes on say: “Dubai is already recognised as one of the most powerful financial centres in the world. But this new legislation will not only galvanise this position, but significantly strengthen it.
“This confirms my view that over the next decade, we can expect it to become one of the world’s top ten international financial hubs to rival and more aggressively compete with stalwarts such as London, New York and Hong Kong.
“Dubai and Abu Dhabi are helped in this regard by having an independent regulator, an independent judicial system, a global financial exchange, a stable, pro-business government, a high proposition of high net worth individuals, a dynamic business community, world-class infrastructure and telecommunications, English as its defacto business language, and their enviable geographical location and time zone.”
The deVere CEO concludes: “We fully welcome this progressive policy shift by the UAE government. It will encourage even more people to come, stay and invest for the long-term in the country, which will further boost its sustainable economic growth.”
Earlier this year, Dubai was revealed as the number one city for graduates seeking a career in financial services, whilst London didn’t make the top ten, in an annual deVere Group survey.
Of the findings at the time, Mr Green noted: “This survey highlights that the next generation of financial services professionals are open to look beyond the traditional and more established global financial hubs.
“It underscores how cities like Dubai, Barcelona and Cape Town are increasingly important international financial centres.
“The fact that Barcelona this year is second-placed and London – currently the world’s most important global financial hub – does not make the top ten is interesting.
“Could it be that the respondents believe mainland Europe’s international financial centres offer more opportunities than post-Brexit London?”
(Source: deVere Group)
Cryptocurrencies are now “undeniably part of mainstream finance,” affirms the deVere Group.
The bold statement from the founder and CEO of deVere Group, Nigel Green, comes as the Financial Stability Board (FSB), has released a report that concludes Bitcoin and cryptocurrencies do not currently pose a risk to the global financial system.
It also comes as Bitcoin (BTC), the world’s largest and most influential digital currency, climbed the 50-day moving average (MA) on Monday for the first time in nearly two months, hiking its price above $6,700.
Mr Green comments: “Cryptocurrencies are the future of money and they are already undeniably part of mainstream finance.
“This is underscored today by the report by the Financial Stability Board (FSB), the international watchdog, which finds that cryptocurrencies do not pose a material risk to the global financial system – which many traditionalists with vested interests have hitherto argued in order to knock digital currencies.”
He continues: “This report comes after the FSB, which is headed by Bank of England Governor Mark Carney, previously wrote a letter to the G20 finance ministers and central bank governors earlier this year stating that Bitcoin does not pose a ‘systemic risk’ to the global financial system
“As such, the latest report can be seen as further recommendation of cryptocurrencies from the influential FSB — which has members from all the G20 major economies.”
Mr Green goes on to say: “The FSB's conclusion follows more and more global financial institutions, major corporations and household name investors now working with cryptocurrencies and blockchain, the technology that underpins them, and as international regulation is developed further."
In May, deVere revealed findings of a global survey that found 35% of wealthy investors will have exposure to cryptocurrencies by the end of 2018.
At that time, Mr Green said: “The survey’s findings demonstrate that high net worth individuals are increasingly unable to ignore the huge potential of cryptocurrencies.”
The deVere CEO concludes: “There’s now surging awareness of the value, need and demand for digital, global currencies in a digitalised, globalised world.
“The world of money has fundamentally changed – and despite what some crypto cynics want, it can’t and will not go backwards. Therefore, the FSB’s proactive and positive work in this sector must be championed.”
(Source: deVere Group)
Ripple can be expected to “convert the remaining crypto-cynics,” affirms the boss of one of the world’s largest independent financial services organisations.
The prediction from Nigel Green, the founder and CEO of deVere Group, comes as Ripple (XRP) experienced a spike last week, adding another $62bn to its market value. The cryptocurrency also broke some key resistance, such as $0.6500 and $0.6600, nudging it towards the important $0.7000 level against the US dollar.
Mr Green, whose firm launched the pioneering crypto exchange app, deVere Crypto, says: “After the cryptocurrency market somewhat overheated at the end of 2017 – thanks largely to investors piling in, pushing Bitcoin to an all-time high of more than $19,000 – there was a major, natural price correction in the first quarter of this year of most of the major cryptocurrencies.
“But the cryptocurrency market is, once again, now looking already significantly more bullish than it did in Quarter 1.”
He continues: “This latest upward crypto market trajectory can be attributed to the fact that institutional and retail investors are increasingly appreciating the fundamentals, such as the need and demand for digital currencies in a digitalised, tech-driven age.
“Also there is now huge awareness that blockchain, the technology that underpins the likes of Bitcoin and Ripple, is likely to be the world’s next major disruptive technology.”
Mr Green goes on to assert: “Cryptocurrencies are now really coming into the mainstream. But there are still some critics of the crypto revolution. However, I believe that Ripple (XRP) can be expected to convert the remaining crypto cynics.
“This is primarily due to Ripple’s apparent emphasis on integrating with banks and other financial institutions.
“For instance, banking giant Santander has recently launched a foreign exchange service that uses blockchain technology developed by Ripple to make same-day international money transfers. It is also reported to be in talks with other major global banks and money transfer groups to develop similar products.”
He adds: “However, cryptocurrencies remain highly determined by market sentiment, and caution must be exercised, and professional advice should be sought.”
The deVere CEO concludes: “By focusing its development strategy in this way, Ripple is likely to help change the perception of crypto, expand its own value, and co-lead the ongoing shift in the way the world uses, manages, accesses, stores and exchanges money.”
(Source: Prior Consultancy)
Bitcoin will not become the world’s sole currency in 10 years - there will be many successful cryptocurrencies - and Ethereum is likely to take over Bitcoin’s dominant status, affirms the deVere Group.
The comments from Nigel Green, founder and CEO of deVere Group, follows bullish Bitcoin claims from Jack Dorsey, the chief executive of social media giant, Twitter.
In an interview with The Times, Mr Dorsey said: “The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be Bitcoin.”
The deVere CEO, who in February launched the deVere Crypto app due to “soaring global demand”, comments: “Unlike Jack Dorsey, I do not believe that Bitcoin will become the world’s sole currency in 10 years.
“The original cryptocurrency is likely to remain the most dominant one in the market for some time, especially with its scalability issues being tackled.
“However, I am confident that there will be many successful cryptocurrencies alongside Bitcoin. This is primarily because they all have different inherent characteristics, strengths and values and, therefore, they are useful in different ways for people and organisations.
“Also, the market itself is set to grow exponentially, resulting in greater usage of and investment in all the major cryptocurrencies. This growth in the market will be driven by many factors. These include that simply an increasing number of individuals, firms and organisations are becoming aware of, have a better understanding of and use cryptocurrencies; and also because financial regulatory bodies around the world are increasingly looking to regulate cryptocurrencies, which will give investors even more protection and confidence in the market.”
Mr Green continues: “Jack Dorsey is, clearly, extremely bullish on Bitcoin, but I believe that its closest rival, Ethereum, could in the near future take over as the world’s biggest and most important cryptocurrency.
“I’m noticing a huge shift towards considering Ethereum as a blockchain [the revolutionary technology that underpins cryptocurrencies] platform rather than just a cryptocurrency.
“Many companies are launching their Initial Coin Offerings (ICOs), which are the cryptocurrency equivalent of IPOs, on Ethereum. In addition, the fact that it uses smart contracts makes it significantly superior to the ‘transaction based’ Bitcoin.”
The deVere CEO concludes: “Whilst I disagree with Mr Dorsey’s claim about the world having one single currency in 10 years and that it will be Bitcoin, it does underscore the growing assertion that digital currencies are here to stay and that the market is growing – despite the best efforts of financial traditionalists.
“There is a huge and growing demand for digital currencies in our increasingly digitalised world.”
“Strong global market sentiment for risky assets, a weakened dollar and geopolitical turmoil in the Middle East underline the need for a long-term multi-asset portfolio”, asserts a leading global analyst at one of the world’s largest international advisory organisations.
deVere Group’s International Investment Strategist Tom Elliot, is weighing in after the IMF upgraded its estimate of global GDP growth this year to 3.9%.
Mr Elliot comments: “We have seen an unusually strong start to the year for risk assets, as global investors appear confident that a period of non-inflationary, globally synchronised economic growth is underway.
“Equities and non-core bond markets have benefited from strong inflows in recent weeks, with a slow creep upwards in core government bond yields doing little to deter enthusiasm for risk.
“The MSCI World index of developed market shares is up 7.0% since the start of January, and up 5.5% in local currency terms. The Japanese economy grew at an annual rate of 1.4% in the third quarter 2017, despite a shrinking population. And the MSCI Emerging Market index is up 9.9% since January.
Mr Elliot details three major theories that are on offer for these developments: “Firstly, the ECB and the Bank of Japan look likely to end their quantitative easing programs earlier than had been anticipated, so bringing forward the date when those central banks might also start to raise interest rates.
“Secondly, Trump’s tax cuts announced in December are worth an estimated $1.5tr over the next five years, at a time when the labour market is already tight. This raises fears of wage inflation pushing up CPI inflation.
“And thirdly, a suspicion by many FX traders that the Trump administration wants a weaker dollar as a deliberate tool for narrowing the trade deficit, to be used alongside more overtly protectionist policies. Trump denied this while in Davos on Thursday, calling for a strong dollar… ‘ultimately’.”
Mr Elliot underlines how Sterling’s strength has contributed to a return on the MSCI U.K. index of -0.2%, as dollar-earning FTSE100 heavyweights have come under pressure, and to a return on the MSCI World index in sterling terms of just 2.0%.
He goes on to say that Trump’s ‘Make America Great Again’ policy poses only a modest attack on free trade, and that it should be contextualised.
Mr Elliot states: “Bush raised tariffs on European steel imports early in his first term, and massively expanded agricultural subsidies. The sky did not fall down. We must hope that Trump’s attacks on free trade remain relatively specific and do not become broad in scope.” At the same time, Central bank policy errors remain “a key risk to capital markets”, asserts Elliot.
He says: “Anything that produces a sudden rise in core government bond yields, or cash rates, are a threat to stock markets and high yield bonds.”
“Meanwhile, geopolitical turmoil in the Middle East should be observed closely”, says deVere’s top analyst.
Mr Elliot comments: “The Middle East is developing new themes that one needs to keep an eye on, partly because of the ongoing risk of a regional clash, but also due to the young populations who are less conservative and less inclined to tolerate the status quo.”
He concludes: “As such, I strongly advise a multi-asset portfolio for the long term to offset financial volatility, centred around 60% global equities and 40% global bonds.
“Such funds predicated on this principle are available in spades and differ according to the level of risk for suitable investors, who more often than not, value certain returns over high-risk gambles.”
(Source: deVere Group)
Esther McVey must resist the temptation to tinker with the pension system and engage fully with the pensions industry, affirms the CEO of one of the world’s largest independent financial advisory organisations.
Nigel Green, deVere Group’s chief executive and founder, is speaking out after Ms McVey, the Member of Parliament for Tatton, was promoted to Secretary of State for Work and Pensions on Monday night as part of Prime Minister Theresa May’s cabinet reshuffle.
Mr Green says: “Successive Secretaries of State for Work and Pensions have been unable to resist tinkering around with the pension system and pension policy. Ms McVey must not fall into this trap.
“Continual short-termist tinkering is counterproductive and misguided as pensions are, by their very nature, long-term.
“The industry and consumers demand a continued period of stability in the often-confusing and complex pensions sector to give the more recent major shake-ups, such as the new state pension, the new pension freedoms and the latest annual tax allowance rules, time to settle.”
He continues: “The Department for Work and Pensions has a huge impact on millions of lives and requires a leader with empathy, big picture perspective, as well as a keen eye for complex detail.
“With this in mind, I would urge Ms McVey to engage fully with the pensions industry and pension savers on any future changes in order to ensure that the current and forthcoming challenges are successfully addressed and met, the policy fundamentals are right, and that any errors of the past are put right in a measured, balanced and just way.”
In November last year, Chancellor Philip Hammond was almost universally praised for delivering a Budget that left pensions, in the main, untouched. At the time, Mr Green said: “We are delighted that Mr Hammond has left pensions alone in this Budget and we hope that this lack of meddling is the start of a new approach.”
Following Esther McVey’s appointment, the deVere CEO concludes: “Whilst politics is an ever-changing and choppy sea, our individual requirements remain the same. We all still grow older and we must all still continue to plan our retirement.
“Retirement planning is a long-term project, which needs a secure, long-termist policy and system framework, and pension savers must remain focused on planning for their long-term needs and wants to enjoy the opportunities retirement can bring.”
(Source: deVere group)
