S&P Launches First-Ever Crypto Indices for Bitcoin and Ethereum: Why It Matters

The Bitcoinist ^ | May 7, 2021 | San Lee

[aMorePerfectUnion]

S&P Dow Jones Indices, one of the world’s largest index providers, launched a new series of digital asset benchmarks.

Dubbed the S&P Digital Market Indices, the series includes the S&P Bitcoin Index, Ethereum Index, and Cryptocurrency MegaCap Index. Each of these indices will track the performance of Bitcoin and Ethereum, with the latter tracking a combination of both. The pricing data is sourced from crypto data provider Lukka.

Despite choosing to only include the two largest cryptocurrencies by market capitalization, S&P stated that it will include other cryptocurrencies through large-cap and broad market indices. According to CoinMarketCap, Bitcoin and Ethereum lead the space with market cap of $1.04 billion and $395 million, respectively. Binance Coin (BNB) is a distant third at $95 million.

Why S&P’s Digital Market Indices May Be Integral

Indices play an integral role in the public market structure, providing insight and more importantly, powering tradable products. With the introduction of S&P’s latest indices, institutions could build their own derivatives without directly owning the underlying crypto assets.

[aMorePerfectUnion]

If YOU would like to be on a CRYPTO PING LIST, please pm me.

The Crypto Ping List covers the following:

Bitcoin
Ethereum
Other coins built on the Ethereum blockchain
mining
etc.

Thanks! For it - or ag'in it, it'll be a wild ride.

[aMorePerfectUnion]

PING!

[monkeyshine]

Let me know when you use these fake currencies to buy these fake stocks in fake currencies.

Just kidding, sort of. I am a fan of crypto (and blockchain), but like to crack wise more.

[Huskrrrr]

I am so lost in all of this.

[aMorePerfectUnion]

😉

[SecondAmendment]

>I am so lost in all of this.

At the root of it all its very simple.

Money has always been an abstraction from tangible goods, an has always been nothing more than a social contract.

What is unique about "cryptocurrencies" is that they are created by people and not governments created purely from a shared electronic ledger known as a blockchain.

However, as with any money, it is only as good as the trust given by society who uses it, and as a software developer my self, I can foresee a total collapse once an inevitable flaw is found in the software used to guarantee the integrity of a "blockchain".

[rrrod]

I’d like to invest but don’t know how.

[pingman]

See ETHE on your brokerage site.

[Bones75]

“I’d like to invest but don’t know how.

I use Coinbase. I find it the most simple to use.

[airborne]

I bought some Bitcoin and some Etherium on PayPal.

[aMorePerfectUnion]

Download the Coinbase app - easiest way

[Glad2bnuts]

I placed a small amount in Ethereum, and BTC, but a stimmy check in Ripple at $.52.

[neefer]

I've been educating myself. 99Bitcoins has one of the best YouTube channels explaining crypto currency.

[Huskrrrr]

Thanks!

[Huskrrrr]

Thanks 👍

[Svartalfiar]

What is unique about "cryptocurrencies" is that they are created by people and not governments created purely from a shared electronic ledger known as a blockchain.

However, as with any money, it is only as good as the trust given by society who uses it, and as a software developer my self, I can foresee a total collapse once an inevitable flaw is found in the software used to guarantee the integrity of a "blockchain".

A big issue I see with them is the volatility. How can you price goods to a currency that has increased in "value" all over the place? BTC is currently "worth" $49407. A month ago, $63M. Six months, $16M. A year ago, $9400. Four years, $1800. Six years, $240. Just this year, it's been a nonstop roller coaster between $40M and $60M. 30-50% gains/losses every other week. And the only way it's even this constant is because its worth is pegged to the dollar, which gives it a relative value. Imagine what it would be doing if there was no dollar equivalent people could convert it to?

There's no way companies with thousands or millions of products on the shelf can update all those prices every month. Or weekly. Or daily. Or really, hourly/minutely since that's the only way to not lose a fortune from having the wrong prices on stuff.

[Pollard]

Yup, he’s a very good teacher.

[Pollard]

and it’s going to settle down until all bitcoin has been distributed, probably in the year 2140. Other tokens will be sooner. ALGO will be 2040 iirc.

[Pollard]

A big issue I see with them is the volatility. How can you price goods to a currency that has increased in "value" all over the place?

Stable coins. USDC is pegged at and backed by the USD. Some are pegged to and backed by gold or silver. I don't know of any pegged to OSB. LOL

[Svartalfiar]

Stable coins. USDC is pegged at and backed by the USD. Some are pegged to and backed by gold or silver. I don't know of any pegged to OSB. LOL

Pricing goods in USDC is the exact same as pricing them in USD. It's a pointless exercise. And does nothing for pricing stuff in Bitcoin or Dogecoin or Ether or any of the other free-wheeling ones. Their volatility makes them useless for much of any real business. They'd be better off pegged to OSB, that stuff has only quadrupled in the past year, and lumber's gonna hit a price crash here soon methinks. Within a year or two.