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Cardano (ADA) Price Prediction: Why ADA Could Outperform Ethereum and BNB by 2022

By
CT Forecast (Staff Writer)
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0

The forecast of the ADA cryptocurrency for 2021 looks very optimistic: in this material we will explain what is the reason for the rise in the altcoin rate by 1300% since the beginning of the year and what prospects it has.

ADA (Cardano) cryptocurrency is one of the fastest growing blockchain assets in the cryptocurrency market. Since the beginning of 2021, it has twice hit the top 3 cryptocurrencies in terms of capitalization. In this article, we will tell you how its ecosystem works, how the altcoin grew by 1300% in 2021, whether the ADA cryptocurrency will add value and what to expect from the asset in the coming years.

What is ADA cryptocurrency?

Cardano (ADA) is a blockchain platform created in partnership between Input Output Hong Kong (IOHK) and Charles Hoskinson, former co-founder of BitShares, Ethereum and Ethereum Classic. From the very beginning, it is positioned as an alternative to Ethereum .

The platform specializes in launching smart contracts, decentralized applications, sidechains, and multiparty (secure) computing.

The internal cryptocurrency of Cardano is called ADA. The platform is named after the Italian mathematician Gerolamo Cardano, and the cryptocurrency is named after the English mathematician Ada Lovelace.

The starting point of the history of the new cryptocurrency platform was the proposal of Japanese investors who became interested in the idea of ​​using blockchain technology for smart contracts and signed a contract with Charles Hoskins to develop a new cryptocurrency with high scalability.

During the ICO campaign from 2015 to 2017, the project team managed to raise $ 62 million. Literally a week after the launch, the market capitalization of Cardano increased to $ 500 million, and the daily ADA turnover on trading platforms reached $ 100 million, the interest of blockchain was so high. community to the new coin.

The largest amounts of capital investment came from the countries of Southeast Asia. The cryptocurrency is popular in Japan, South Korea and Thailand.

How the ADA works from the inside

Cardano is written in Haskell, a highly fault-tolerant programming language. The applied Proof-of-Stake Ouroboros protocol provides for the participation in voting of all cryptocurrency holders. It is similar to the new Ethereum Casper protocol, but, according to the creators of Ouroboros, it is the only consensus algorithm whose security can be proved using mathematics.

ADA tokens have a limited supply. The release of 45 billion coins is planned. Already generated about 30 billion. About 10% of them were given to companies that design this platform and are engaged in its development. The rest are distributed among the holders-miners. The emission is entirely dependent on the new blocks. To date, 2,000 coins are produced after the signing of each block. Further, the indicators will gradually decrease. It is planned to complete the issue of the entire volume of coins in 2023.

The Cardano cryptocurrency (ADA) uses its own blockchain called the Cardano Settlement Layer (CSL). CSL is a distributed transaction ledger layer to support cryptocurrency wallet transactions. The second layer, called the Cardano Computation Layer (CCL), will support smart contracts and decentralized applications. This layered architecture allows for easy protocol upgrades and positively impacts Cardano’s outlook.

Financial government regulators are usually skeptical about the use of anonymous cryptocurrencies in the traditional financial system. To overcome this mistrust, the Cardano platform can use cryptographically protected metadata on the blockchain, which will allow interaction with external regulators, while maintaining the confidentiality of cryptocurrency owners to a sufficient degree.

Advantages and Disadvantages of ADA Cryptocurrency

One of the significant advantages of Cardano is the Ouroboros security system. It is she who provides mathematical accuracy in work. With the help of this algorithm, it was possible to significantly reduce the energy consumption when checking the blocks. A special secure programming language testifies in favor of this cryptocurrency.

In addition, the Cardano cryptocurrency (ADA) features fast transactions and the ability to work with digital assets. Any user can create and execute a smart contract, which will secure his money transfers and other operations.

According to nicechange.net, Cardano has a fast transfer speed. This helps to avoid the growth of commissions when it is necessary to speed up the transaction. Additional advantages of this cryptocurrency are complete user privacy and a system of hard forks. They fix network errors without further rollbacks.

A definite disadvantage of Cardano is that the blockchain is still under development. It must solve its scalability issues as it is only capable of processing 257 transactions per second (TPS).

A much bigger drawback is the non-proliferation of Cardano assets. Not all exchangers have tokens. Among other “minuses” – not too much processing of translations. The creators of the cryptocurrency promised to fix this shortcoming by 2020. ” In addition, the cryptosystem has issues with official wallet syncing and network connectivity.

Record growth in the ADA rate in 2021

Since the beginning of 2021, ADA has twice risen to the third place among cryptocurrencies in terms of capitalization. This happened for the first time in February, when the altcoin went up in price by almost a third, and then in mid-August. Then the ADA rate for the week increased by almost 50%, and its value exceeded $ 2, and on August 20, the altcoin rate reached a historical maximum – $ 2.57.

At the time of this writing, the cryptocurrency was worth $ 2.63, and the market capitalization was at about $ 80 billion. In just one day, August 19, transactions were made with ADA for a record $ 8 billion. Since the beginning of the year, ADA has risen in price by more than 1300%.

As estimated analyst firm Messari, due to the rising cost of altkoina, the number of dollar millionaires ADA-holders increased by 173%.

What are the reasons for the growth of Cardano? Investors are awaiting the September update of the Cardano blockchain, dubbed Alonzo. The update should add support for smart contracts and DeFi applications that users have long been waiting for.

Thus, after the release, Alonzo Cardano will become a full-fledged competitor to Ethereum, where smart contracts have existed since the launch in 2015.

The growth of the altcoin rate is also facilitated by the news about listing on more and more new crypto-exchanges. So, on August 25, ADA will appear on sites in Japan.

What is Alonzo and how it relates to the reasons behind Cardano’s growth
Alonzo is a major upgrade to the Cardano network that has been in testing for several months now. The main innovation in it is the emergence of smart contracts .

Before releasing a full-fledged update, the developers tested Alonzo among users in several stages.

The stages were named “colored” – blue, white and purple. The purple stage was launched in early August, and after it there will be two more mini-stages – red and black, during which the last bugs should be cleaned out of the update.

At the first two stages, the number of test participants was limited, and anyone can join the last one.

After that, Cardano will enter the “era of Gauguin”. It is the eras that the developers call the stages of development of their network and give them the names of classical writers, painters and philosophers. Before Gauguin, Byron and Shelley were, and after that Basho and Voltaire were planned. The stages differ in the number of functions that are available on the network.

Where to buy ADA

Cardano is sold for dollars on almost all major crypto exchanges: Binance US, OKCoin, Kraken, Bittrex, EXMO. Also, ADA cryptocurrency can be exchanged for bitcoin, ether or stablecoins (USDT, USDC, PAXX), depending on the site.

On the Kraken exchange, Cardano tokens are sold for euros, and on Upbit and Bithumb – for South Korean won.

Cardano forecast for 2021-22

The Cardano (ADA) rate is quite resistant to inflation, and due to the limited total turnover, the demand for it continues to grow. The decentralized nature of the Cardano blockchain makes it secure, and the layered architecture provides scalability. Taken together, these technical features make Cardano a unique coin with good potential.

For example, the Wallet Investor website predicts that the altcoin rate will rise to $ 4.7 within a year, and to $ 12.5 within five years.

A similar forecast is given by the Digital Coin resource. They believe that the ADA will end the year at $ 3.93, a year later it will cost $ 4.86, and then the rate will add a little more than a dollar per year to reach $ 11.78 per coin by 2028.

In the future, the Cardano (ADA) rate will most likely depend on the number of DApps and smart contracts built on its blockchain. Whether it is worth buying Cardano in light of its unprecedented growth now or waiting for a correction is up to you, but you need to carefully study the charts and news about this cryptocurrency before deciding on an investment and position size.

 

Client No.7 Web Series (2021) Ullu: Cast, How to Watch All Episodes Online Free

By
Team City Telegraph
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0

Client No.7 is an Indian web series from Ullu. The Hindi language web series release date is 31 August 2021. It is available on the official website and Ullu app to watch online. Leena Jumani, Ashmit Patel plays the lead cast in the series.

Client No.7 is another latest web series from the hit content machine Ullu media. The platform continuously proves themselves that they are one of the top leading OTT platforms by creating a continuous supply of entertainment.

Moreover, Ullu originals Client No.7 is a drama, crime, thrill, suspense web series which includes exotic bold scenes. The trailer launched on the official youtube channel of the ullu on Aug 26, 2021.

In this post. know more about the ULLU originals Client No.7 and gather information such as wiki, released date, story, cast, actress name, actor name, how to watch? and more.

ULLU Web Series Client No.7 Wiki

This is the latest web series from the leading over-the-top (OTT) platform ULLU media entertainment. The platform knows very well what its audience demand and how to full the demand of the viewers. Besides, they continually produce, direct, and release numerous series over the last month.

Ullu is the hit machine of the web series and the platform launched many series faster than any other platform. Client No.7 is one of them and the releasing date for the series is 31st August.

Also Read:

The series holds a crime, drama, thrill, suspense, etc story with lots of twists and turns. However, it very obvious it is the ullu web series so it contains many bold hot scenes.

The main leading actress is Leena Jumani who played the role of a character named Moni. In the main leading role actor, Ashmit Patel played the role of a police inspector.

The plot revolves around a crime done by a lady. A police officer helps her to cover the murder. Things take a turn as she surprises him and escapes. Will he be able to trace her down?

Client No.7 Cast (Ullu): How to Watch All Episodes Online Free

  • Ashmit Patel
  • Leena Jumani

Genre: 18+, Crime
Release Date: 31 August 2021
Language: Hindi
Platform: Ullu

Watch Client No.7 Web Series on Ullu

Quarterly estimate of US GDP growth increased to 6.6% from 6.5%

By
Stella Mason
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0

In the second quarter, the US economy grew by 6.6% at an annualized rate, according to revised data from the US Department of Commerce.

The estimate for GDP growth has been raised from preliminary data, which estimated a 6.5% rise.

Meanwhile, experts predicted, on average, a revision of the estimate of GDP growth to 6.7%, Trading Economics reports.

In the first quarter of this year, US GDP increased by 6.3%.

The Ministry of Commerce slightly improved its estimates of the dynamics of indicators of non-residential capital investment and exports in the second quarter, while deteriorating estimates of private investment in inventories, capital investment in housing, as well as government and local government spending.

Consumer spending in the United States, according to revised data, increased by 11.9% in the second quarter, up from 11.8% as previously reported.

The PCE Core Index, which is closely monitored by the Federal Reserve in assessing inflation risks, jumped 6.1% in April-June from the previous quarter after rising 2.7% in the previous three months.

The dynamics of the index coincided with the preliminary data and the consensus forecast of analysts.

Also Read:

The information presented by the Department of Commerce on Thursday is the second out of three estimates of the change in US GDP.

The publication of the final data on the dynamics of GDP for the 2nd quarter is scheduled for September 30.

How much YouTube spends on its content creators

By
Naomi Glover
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0
YouTubers have to pay tax on part of their earnings in the USA

Content creators have been able to earn money with their content on YouTube for a long time. It was recently announced that YouTube had spent a whopping $ 30 billion on its creators over the past three years.

• YouTube spends 30 billion US dollars on creators
• Facebook and TikTok are also planning to invest billions in creators
• YouTube’s advertising income can keep up with subscription income from Netflix

YouTube spent $ 30 billion on content

Just recently, Google announced Subsidiary YouTube, according to Barron’s, announced that the company had spent $ 30 billion on its creators over the past three years. This publication makes it clear to investors how much money the US video portal spends on the many different contents on the website. What exactly the 30 billion will be spent on, however, is not specified. Aside from advertising revenue, Alphabet doesn’t provide any specifics in its reports about other revenue that YouTube generates, such as subscriptions. In general, Alphabet only discloses the business results of the Google Services segment, which covers all business areas – with the exception of Google Cloud and Moon Shot projects, which are listed in Other Bets.

Other platforms also invest large amounts in their creators

However, YouTube is not the only platform that is willing to invest a lot of money in its content. Facebook also says it plans to invest more than one billion US dollars by the end of 2022 in programs that will offer users new and creative opportunities to earn money with their content on Facebook and Instagram. The Chinese video portal TikTok unveiled the $ 200 million TikTok Creator Fund in July, which supports creators who have achieved at least 100,000 authentic video views in the last 30 days. Within the next three years, the Creator Fund is expected to grow to over a billion US dollars in the US and even to double that worldwide.

YouTube’s business rivals that of Netflix

As Barron’s further reports, with the new information on the output of the video platform, YouTube can now be better compared with the streaming service Netflix . The business of the Alphabet subsidiary could well compete with that of Netflix, it continues: “It is expected that YouTube, a subsidiary of Alphabet (GOOGLE), this year advertising revenue of 28.7 billion US dollars while Wall Street expects Netflix to generate $ 29.7 billion in subscription revenue.”

NFT trend continues to spread but still room for improvement: Twitter CEO Jack Dorsey, Katy Perry & Co

By
Edmund Hurtt
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0

The blockchain is not only used for crypto currencies: NFTs are digital content to which property rights can be auctioned. More and more well-known personalities want to participate in the trend. Even so, it could still be a while before NFTs are ready for the masses.

• Ownership of digital content
• Katy Perry prepares NFT collection
• NFT marketplaces not yet Amazon equivalent

Trend goods NFTs

The trend around NFTs shows, among other things, that blockchain technology has more to do with Bitcoin & Co. The abbreviation stands for Non-Fungible Token, i.e. non-exchangeable tokens. In this capacity, the trend goods differ from cryptocurrencies, as The Verge writes. For example, if you swap one unit of an Internet coin for another, you get an identical good. Instead, NFTs are more like trading cards that are exchanged with one another and that differ from one another, the portal continues. Most NFTs are placed on an Ethereum blockchain, which, in addition to the associated cyber currency, Ether also supported the barter goods. But what exactly are these tokens about? The offerings are varied and can include works of art and pieces of music, The Verge continues. It is only essential that these are digital goods. The purchased files become the property of the highest bidder, but their consumption is not only reserved for the buyer. As a rule, NFTs are publicly accessible, so only ownership of the file is acquired. The Verge compares NFT owners, for example, with museums that buy up works of art but still make them accessible to the masses.

Twitter CEO sells first tweet as NFT

There are now numerous examples of NFT purchases. Among the better known is the first tweet ever published on the short message service, from founder Jack Dorsey . “I’m just setting up my Twitter [account],” the platform’s CEO wrote on March 21, 2006.

In March, the tweet was auctioned for 1,630 ethers – around $ 2.9 million at the time . According to the BBC, bids are said to have exceeded $ 88,000 within minutes of the start of the auction. Ultimately, the bid went to software entrepreneur Sina Estavi from Malaysia, who heads the blockchain company Bridge Oracle. The tweet remains publicly viewable, even if it became Estavis property.

Katy Perry starts NFT cooperation with Tetha Network

In the meantime, however, the NFT trend has developed significantly and in some cases has reached the mainstream. Pop star Katy Perry recently announced that she would offer a series of exclusive content using NFTs in the fourth quarter of 2021 in cooperation with the blockchain operator Theta Network, which specializes in video content.

As the blockchain portal The Cryptonomist reports, the digital content could be in connection with the singer’s “Play” concert series, which is to take place in Las Vegas from the end of the year. “This is a new, unique opportunity to get in touch with my fans around the world, even if they are not with me in Las Vegas,” said the multiple Billboard Music Award winner, according to the crypto portal. “I can’t wait to work with the Theta team on all of the exciting and memorable creative pieces so that my fans can have a special moment of my concert season that is both a digital collector’s item and a real experience.” And Theta Network is also pleased about the collaboration: ” The collaboration with a global icon like Katy Perry next year, which will coincide with the launch of Theta Mainnet 3.0, represents an important turning point in the history of the Theta Network and is a big step towards global acceptance of the Theta blockchain “, Theta Labs CEO Mitch Liu told the cryptonomist, “With the help of the Creative Artists Agency and Katy’s management team, we are well on our way to reaching millions of music, media and entertainment fans around the world, well beyond crypto enthusiasts to reach. Ultimately, we see this as an important milestone on the way to a million daily transactions in the Theta Network “. Interested parties can already register on the Theta Network’s website,

NFT trend is also reaching Germany

Perry’s colleagues Lindsay Lohan and Jay-Z have also already entered the NFT business, as Business Insider reports. Other NFT collections are penned by the US Space Force and the Golden State Warriors, a basketball team from the US basketball league NBA. – Trade Bitcoin with Plus 500 – this is how it works. 72% of retail investor accounts lose money when trading CFDs with this provider. You should carefully consider whether you can afford the high risk of losing your money. – And the movement has already arrived in Germany: Rammstein singer Till Lindemann wants to sell ten digital copies of a previously unpublished music video for 100,000 euros each, as reported by Deutsche Welle. A joint dinner for two in Moscow, including travel, accommodation and a visa, should also be included in the NFT package. The video was shot in the Hermitage in Saint Petersburg, but the fact that Lindemann offers his work of art as an NFT could result in criminal prosecution, as the international broadcaster writes. The facility allowed the musician to shoot the video in the premises so that objects from the collection could be seen there, however, violate the agreements made previously. This makes the NFTs illegal.

NFTs are not yet ready for the masses

And even if the trend around digital works of art increased significantly this year and now extends to different areas, there is still room for improvement when it comes to Alex Salnikov. The co-founder of the Rarible platform, which specializes in the creation, sale and collection of digital works of art, admits to Business Insider that NFTs have become very popular, but have not yet reached the mainstream. For this to happen, commercial goods must not only become more affordable, but access to purchasing them must also be made easier. Companies are responsible for considering which prices consumers are willing to pay and which use cases are sensible for them.
One of the pitfalls that the NFT purchase currently has in store is that a crypto wallet is required in which cryptocurrencies must be stored. Direct payment by credit card or bank transfer is not possible. “It’s not as smooth as when you just go to Amazon and buy something,” said Salnikov. “It’s still unsuitable for the end user.”

European equity markets closed lower

By
Ismael Brooks
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0

As a result of yesterday’s trading, stock markets in Europe fell, in the center of attention of investors – the annual economic symposium in Jackson Hole.

Investors are awaiting Friday’s speech by Federal Reserve Chairman Jerome Powell.

He may give hints as to when the US Central Bank intends to begin winding down the asset repurchase program, which now stands at $ 120 billion a month, CNBC notes.

However, there is a growing opinion among analysts that Powell will not give any obvious indications, writes The Wall Street Journal.

The composite index of the largest enterprises in the region Stoxx Europe 600 by the close of trading decreased by 0.32% and amounted to 470.34 points.

The British FTSE 100 index fell 0.35%, the French CAC 40 – 0.42%, the German DAX – 0.16%.

Spain’s IBEX 35 and Italy’s FTSE MIB fell 0.94% and 0.76%, respectively.

Deutsche Bank shares declined 2.3% on news of the audit of the asset management division of the DWS Group by the US Securities and Exchange Commission (SEC) due to information that the company exaggerated its use of ESG criteria in investments.

Meanwhile, the price of shares of the French media conglomerate Vivendi increased by 2.6% and is becoming the leader in growth.

Also Read:

Vivendi, a subsidiary of Universal Music, has released a new forecast for 2021, according to which strong revenue growth is expected.

International Consolidated Airlines Group SA fell 1%. British Airways, a member of the group, said it is considering setting up a new short-haul division at London’s Gatwick Airport.

Business confidence in the French economy rose to 110 in August from a revised 109 in July, the national statistical office Insee said.

This is the maximum level in more than 3 years. Analysts did not expect the indicator to change, writes Trading Economics.

The leading index of consumer confidence in Germany, calculated by the research company GfK, dropped to minus 1.2 points in September from the revised minus 0.4 points in August.

Economists surveyed by Trading Economics predicted the value of the indicator at minus 0.7 points.

The EU is considering re-imposing restrictions on US tourists visiting European countries, Trading Economics reported.

Against this background, the pressure on the shares of the tourism business in Europe is growing.

TUI AG, a German travel company, is down 2.4% to rank second among the leaders in the fall in the Stoxx 600.

Analyst believe BTC will skyrocket to $ 100,000: Bitcoin Price analysis

By
Christopher Patillo
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0

Despite breaking the $ 50K mark on Monday and further gains, bitcoin was unable to hold on to it and corrected to reach $ 49,380 so far. However, the fact that bitcoin managed to stay above this mark for several hours is encouraging.

Bitcoin peaked at noon on Monday: $ 50,500, after which in the afternoon it began to decline, reaching a low of $ 48,780. This weakness can rather be considered not the beginning of a large correction, but an increase.

If you look at the chart of Bitcoin movements, then starting from August 19, we will see an uptrend, which is now at the level of about $ 48,900 – this is the threshold at which the 100-hour moving average is also located.

If Bitcoin falls below this threshold, then it will receive the first “bearish” warning. It will be supported by overcoming the psychological level of $ 48 thousand, then the area of ​​$ 47- $ 47 350, where the 200-hour moving average is also located.

If you look closely at the daily chart on Monday, you will see that the 200-day moving average is $ 45,900, and a break below this key indicator would be a strong bearish signal.

However, there seems to be a chance that Bitcoin will continue to rise. And several analysts are very optimistic: according to their estimates, Bitcoin this year will be $ 100 thousand.

According to Craig Earlam, senior analyst at Oanda exchange platform, Bitcoin’s return to $ 50K is a great psychological victory for cryptocurrency, which will undoubtedly make you wonder how long it will take before it returns to record territory.

“They predict him a breakthrough to $ 100 thousand, but do not forget, this has been said since a few years ago, he almost reached $ 20 thousand.”

Iqbal Gundham, VP of Transactions at Ledger, also shares this view: due to the hype around ETFs or countries accepting BTC as legal tender, the next major hurdle will be to break the $ 100,000 mark by the end of the year.

Finally, a third analyst – Anthony Pompliano of Pomp Investments – calculated that the price of BTC will rise “very, very quickly” in 2021, based on his forecast of the Bitcoin rally in 2017: during that bullish period, the price of this cryptocurrency doubled from $ 10 to $ 20K in less than 20 days.

“I would not be surprised if something like this happens before the end of the year, knowing that Bitcoin surpassed $ 50K yesterday, it is assumed that its target is $ 100K.”

Paypal to launch cryptocurrency operations service in UK

By
Edmund Hurtt
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0

This week, the American payment system PayPal Holdings Inc. will launch a service for buying, selling and storing cryptocurrencies in the UK, the company said.

As noted by PayPal, British users of the system will be able to track the dynamics of four cryptocurrencies through a website or mobile application – Bitcoin, Ether, Litecoin and Bitcoin Cash.

In addition, they will have access to the section on cryptocurrencies, where they can get answers to frequently asked questions and learn more about the risks and opportunities associated with investing in these assets.

This launch will be the first step towards the internationalization of the cryptocurrency trading platform, the press release said.

In the US, the company’s customers since spring can use cryptocurrencies from PayPal mobile wallets to pay for goods from merchants who work with the payment system.

“We intend to continue to work closely with regulators in the UK and elsewhere to enhance the future role of digital currencies in the international trade and financial sector,” said José Fernández de Ponte, vice president of cryptocurrencies and blockchain.

PayPal rose 1.5% yesterday in New York. Since the beginning of this year, the company’s market capitalization has increased by 18.3% to $ 320.7 billion.

That’s why Amazon doesn’t have to win the streaming battle

By
Christopher Patillo
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0

In recent years, more and more streaming providers have poured into the international markets. This creates a battle for market shares, the best in-house productions and film rights. Amazon is one of the leading providers – but the financial profitability of the streaming division is rather in the background.

• Amazon is successful in many business areas – streaming is just one of them
• Amazon Prime Video is also boosting sales in e-commerce
• Amazon is less dependent on profits from the streaming area than the competition

Amazon is not a streaming-first company

The company Amazon now operates a large number of different business areas and can therefore point to different sources of income. In addition to classic e-commerce, Amazon offers services for third-party providers, generates advertising income and has a large cloud computing division with Amazon Web Service. Although Amazon began investing in streaming strategies back in 2008, the internet giant isn’t a streaming-first company like Netflix, for example. As a result, Amazon is less dependent on profits from the streaming sector than other providers, according to Bruno Reis and Daniel Martins from TheStreet. Amazon invests a lot of money in in-house productions or in the rights of various sports leagues. Recently, for example, Amazon has secured rights for the Champions League in football. These investments are extremely costly, which is why the operating profit of Amazon Prime Video is only a small part of the company’s profits.

“Golden Globe helps sell shoes”

In 2018 Amazon founder Jeff Bezos said, “If we win a Golden Globe, it will help us sell more shoes”. This quote makes it clear that Amazon Prime Video can be interpreted as a kind of marketing measure. Since the Amazon Prime package not only includes the streaming offer, but also free shipping and, for some products, the delivery guarantee for the next day, streaming customers also become buyers. In this way, demand in Amazon’s online shop is additionally boosted by streaming customers. The higher the number of subscribers, the greater the sales and profits, even if the streaming division only makes a small contribution.

Is the competition a problem?

Netflix, Disney + and Co. try to earn money directly through streaming and their own content, which is why they have to keep the prices for the offers at a certain level. Amazon can afford to charge lower prices since profit margin is less important in streaming. In addition, Amazon Prime is not only booked for streaming, but also by people who only use the e-commerce area or Amazon Music. As a result, competition is less of a problem for Amazon than for the other industry heavyweights.

That’s what the Amazon share does

The Amazon share has been consolidating at a high level for about a year and investors have so far been waiting in vain for the price to break out . There is also increasing speculation about a share split, which would make the share more interesting again for investors with less capital. How things will continue with Amazon shares and Amazon’s Prime Video will also be exciting to watch over the coming months.

Bond expert predicts a new chapter in the US bond market after the yield rally

By
Edmund Hurtt
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0

Long-term US bonds have already experienced quite a ups and downs in the wake of the corona crisis. After the upward trend in March 2021, the yields of US bonds with a ten-year term then continuously fell. However, market expert Scott Peng claims to have identified a trend reversal.
• US bond yields in rally mode in the first quarter of 2021
• Second quarter brings the disillusionment
• Scott Peng bullish on US bonds

The corona crisis has not only caused all sorts of turbulence in the financial markets. The effects of the still unresolved crisis are also clearly noticeable on the bond markets.

This is particularly evident in the course of long-term US government bonds. While ten-year bond yields hit historic lows at the end of July 2020, this was followed by a rally that culminated in March 2021 with a rise of 83 basis points. Since then, however, it has fallen again by 60 basis points.

New chapter opened

As market expert Scott Peng of Advocate Capital Management explains in a market analysis on the company’s website, the US bond market may now have entered a new phase in the “rate rise saga”, in which the yields on US long-term bonds will rise.

That is why investors increasingly turned to bonds in the second quarter of the year

Peng cites the following reasons as the background to the rally on the bond market in the second quarter of 2021, which led to the gradual decline in yields by 60 basis points: After all signs were pointing to economic recovery in the first quarter of 2021, various economic data already showed a slowdown in the second quarter of the year of the boom. For example, the unemployment rate would have increased again in April for the first time since the pandemic peak and other economic indicators would have lost momentum.
In addition, the new and extremely contagious Delta variant would have created increasing uncertainty. Even if it had been shown, especially in countries with great progress in vaccination, such as Europe, that the wave of infection triggered by Delta would have been much smaller than initially feared when the variant emerged.
As a final point, Peng cites upheavals from market participants such as hedge funds, which would have reduced many short positions in the second quarter.

These factors usher in the new era in the bond market

Even if government bond yields fell in the second quarter of the year, Peng assumes that various macroeconomic developments mean that these should rise again from now on.
The market expert names the inevitable tapering of the US Federal Reserve as the first factor here. Advocate Capital Management assumes that this should start as early as the beginning of 2022. Indeed, the recently published minutes of the monetary watchdogs revealed that the majority of the members believe that a reduction in monthly bond purchases would still be possible this year.
In addition to the impending tapering, Peng believes that the planned massive stimulus programs should lead to bond yields rising again. After all, the government is forced to build up a larger deficit within the framework of the trillion-dollar aid that has been decided.

Also Read:

The generous stimuli should in turn lead to a strong rebound in the US economy, a phenomenon that is already apparent. As daily life normalizes, consumers are also likely to spend more of the money they saved during the lockdown and fuel the economy.
Even in the current phase of economic recovery, however, companies are already realizing that there is a shortage of workers. Peng assumes that this labor shortage will not turn out to be a temporary problem and thus also lead to rising bond yields.

Scott Peng’s conclusion

In the opinion of Advocate Capital Management, all these developments mark the beginning of a new chapter in which rising yields on the US bond market should beckon. This is Peng’s conclusion in the analysis: “Despite the delta variant, higher returns are inevitable in our opinion. Higher ones interest rates are driven by various factors such as a non-temporary shortage of labor, rising inflation, more stimulus programs, enormous government deficits, and a growing supply of government bonds to finance the deficits and the impending tapering of large-scale, price-independent bond purchases by the central bank. “

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