Bitcoin adoption: Morgan Stanley explores the idea

Major US investment bank Morgan Stanley is considering purchasing Bitcoin, according to reports. This comes following the news that Elon Musk’s Tesla added Bitcoin to its balance sheets.

As per a report, Morgan Stanley’s offshoot Counterpoint Global is exploring the option of buying Bitcoin, making it on “its list of possible bets.” Other institutions such as JPMorgan are also toying with the idea of adding Bitcoin to their assets as the cryptocurrency market attracts more and more attention.

Why the possibility of Morgan Stanley entering the cryptocurrency market is important

There is a two-fold reason why the arm of Morgan Stanley’s exploration of Bitcoin comes as interest:

  1. As one of the leading financial firms in the United States, Morgan Stanley has a wealth of supported influence across the market as well as industries globally.
  2. The news and possible consideration come following a move the bank made to boost its asset holding in MicroStrategy, increasing the stakes in the company to nearly 10% of the firm’s shares.

MicroStrategy is one of the early institutional adopters of Bitcoin and Michael Saylor is a massive advocate for the cryptocurrency market – one who suggested to Musk to transfer fiat assets in Tesla to Bitcoin.

It is worthwhile noting that should Morgan Stanley’s Counterpoint Global opt to move into the crypto space, it might take some time to integrate the cryptocurrency assets into the firm’s holdings.

Bitcoin’s subsequent rally ahead of the weekend

As the news broke of Morgan Stanley’s possible interest in Bitcoin, the cryptocurrency saw a spike of nearly 3% following a dip in trading value and volumes hours before. Since then, Bitcoin has seen a slight correction to trade at $46, 737 USD which is a minor 1.57% dip in trading value over the past 24 hours.

JP Morgan to possibly support Bitcoin trading

Not only does the news influence the market and the price of Bitcoin, but the influence (as listed in point 1) could be monumental. If Morgan Stanley invests in Bitcoin, it’s not unlikely that we’ll see massive waves of firms invest in Bitcoin. Other institutions are already on the fence and a big player could be the turning point. Recently JP Morgan JPMorgan co-president Daniel Pinto said to CNBC that he could see the bank offering Bitcoin support if there’s enough demand for trading, saying:

“If over time an asset class develops that is going to be used by different asset managers and investors, we will have to be involved. The demand isn’t there yet, but I’m sure it will be at some point.”

The post Bitcoin adoption: Morgan Stanley explores the idea appeared first on Coin Insider.

The term Investment is used in two different ways. Firstly, when we speak of investment in terms of a job or business, we are actually talking about making an investment or saving for investment. Secondly, in a more economical and realistic sense, we are talking about investment in one’s own future or the future of one’s family. Both ways of investing essentially mean the same thing and both lead to certain definite results.

Investment|Investment

The Different Types Of Investments

The term Investment is used in two different ways. Firstly, when we speak of investment in terms of a job or business, we are actually talking about making an investment or saving for investment. Secondly, in a more economical and realistic sense, we are talking about investment in one’s own future or the future of one’s family. Both ways of investing essentially mean the same thing and both lead to certain definite results.

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To invest, then, is to put money aside in the hope of eventually receiving some return in the form of an economic growth, job security, or other benefit. Investments that yield no return are termed as bad investments. The term “investment” then, is used to denote any financial activity that aims at providing some return by creating new wealth. The key concept here is that future economic growth is directly dependent upon the investments made today.

There are many possible forms of investment. The most popular form is through bonds wherein a borrower is given a particular interest rate in return for which he or she has to repay a certain amount of money at a certain date in the near future. Examples of common forms of bonds are commercial banks’ bonds, municipal bonds, credit card bonds, and corporate bonds. Other possibilities include precious metal investments, real estate investment, and stock market investments.

Another type of investment is through the purchase of stocks and bonds, wherein the principal value is the difference between the price paid for the stock or bond and the current market value. Some of the commonly traded stocks and bonds include U.S. Treasuries, U.S. Mortgage Interest Rates, CDs, GIC’s, and other long-term debt securities. One major advantage of investing in securities is that they can generate income not only from interest and principal payments, but also from other income streams like dividends and capital gains. The downside to this form of investment is that they usually take a long time before you see any earnings.

Real estate is another popular investment option among potential investors. Properties can be bought and sold as real estate investment. They can be used as collateral for loans; however, this option is not advisable for first-time home buyers. Another type of property to consider is the raw land. These types of investments do not produce income immediately, but with steady construction, development, and upkeep, they can eventually provide profits.

When considering an investment, it is necessary for a user to determine his or her expected future returns. Present value of money is determined by how it is used today. Assume that a user plans to spend the money. If the investment is for something that will produce future returns, then the user should determine how much he or she can afford to invest in order for the investment to yield future returns. All investment decisions should be made carefully, considering all aspects of the investment.

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