Historical evidence for bitcoin performing like digital gold
03 April, 2020
In the first days after the outbreak of the coronavirus crises in the West, crypto plunged like traditional asset classes. Bitcoin was pronounced dead. A historical analysis by SEBA Research of several assets indicates that except for this event, crypto does not correlate with stock markets.
In spite of BTC price drop, the underlying blockchain technology has operated well. Furthermore, the demand for stable coins is on the rise. Both observations indicate that crypto is supported by a robust technology and is here to stay. Looking at the blockchain network fundamentals, significant drop in difficulty as it was the case last week, has historically been a reliable indicator for price bottom formation.
In this special edition of the Digital Investor, we present our take on the recent crash in financial markets. As the Coronavirus took the entire world by storm, financial markets across the board started tumbling in synchronisation. Amidst this crash, all the correlation theories seemed to be breaking down. Does this mean that digital assets will forever be correlated with broader markets? What happens in this new regime of zero interest rates? We think that in such an environment, cryptocurrencies, as outside money, can prove to be a much needed diversifier.
The Bridge is a publication designed to explain the key concepts behind blockchain and crypto-currencies. If you are unfamiliar with forks, this article is made for you. A fork is the action uses to change the rules that govern a blockchain ecosystem. What are the different types of forks? How do they impact different stakeholders in a blockchain ecosystem? We explain all of this in the March edition of the bridge.
The US authorities rejected the last pending Bitcoin ETF proposal. The decision further delays the adoption of cryptocurrencies in the USA, evidences the controversial decision-making process and brings to the fore more pragmatic and innovative jurisdictions such as Switzerland.
DeFi or decentralised finance has been growing at an astonishing pace. Should you participate in it? If you have an appetite for risk, how can you participate? In this edition of the Digital Investor, we explore the good, the bad, and the ugly of DeFi.
Tokenisation of assets is one of the hottest topics in the fintech industry. Many believe in its potential to change the financial world for the better. In this edition of the Bridge, we talk about tokenisation and everything related to it. If the notion is foreign to you, then this article is for you.
CBDCs & Asset Tokenisation - Digital Regulation in 2020
13 February, 2020
Central bank digital currency (CBDC) and tokenisation are dominating regulatory discussions. A wholesale CBDC is likely to come into being in 2020. Widespread asset tokenisation would give rise to numerous regulatory issues, making advanced jurisdictions such as Switzerland particularly attractive.
It is customary in articles like this to trumpet that “2020 will be the year when digital assets explode”. We are all eager to see blockchain achieve wider adoption, but I believe we need to adopt a slightly longer time horizon. It will most likely take three to five years to fully establish the infrastructural bedrock of this industry. But bearing in mind that the conventional financial institutions we now take for granted took hundreds of years to evolve, a few years is not long to wait.
To achieve the goal of serving as a decentralised platform for all sorts of applications, Ethereum needs to scale. It envisions achieving this by moving from a proof-of-work to proof-of-stake consensus algorithm. In this article, we look at the challenges that arise through this transition and at the yields investors may expect by staking.
In this publication we underscore the importance and the current state of digital assets against the backdrop of looming uncertainty in traditional asset classes. In our market outlook, we take the risk to combine a macro view with trends in the digital asset industry.
SEBA Bank, an integrated bank for digital and traditional assets and licensed by the Swiss supervisory authority FINMA, is now onboarding clients from 10 jurisdictions through a user-friendly digital onboarding process.
The Swiss Federal Council has adopted the dispatch to further improve the DLT/blockchain regulatory framework. Switzerland is consolidating its leading position, reinforcing legal certainty, removing barriers to entry and reducing the risk of abuse.
In this month’s Digital Investor, we start to examine a topic that is set to accompany us in the coming years: what are the price determinants of crypto assets? If you are a crypto investor or plan to become one, this publication is here to help you to trade crypto assets.
SEBA launches its investment solutions with new crypto index
26 November, 2019
SEBA Bank starts its investment business and launches the SEBA Crypto Asset Select Index (SEBAX) for crypto currencies. SEBAX addresses the predominant problem of traditional market value-weighted indices, making index investments interesting for the digital investment market as well.
In this edition of “The Bridge,” we will introduce you to the consensus mechanism, a notion at the heart of all blockchain-based systems. It is the mechanism that creates trust in the system by acting as a truth seeker. We will use the Byzantine General’s problem to explain the two main consensus mechanisms: Proof of Work (PoW) and Proof of Stake (PoS).