Nigel Green, the chief executive of deVere Group, which has $12bn under advisement, is speaking out after Beijing announced on Friday it will impose new tariffs on $75 billion worth of US goods and resume duties on American autos.

The Chinese State Council said it will slap tariffs ranging from 5 to 10% in two batches. The first on 1 September and the second on 15 December.

Mr Green notes: “China and the US are playing a dangerous game of brinkmanship which will inevitably dent global growth at a time when the global economy is headed for a serious downturn.

“Both sides are getting hurt by the ongoing tit-for-tat trade war and given that they’re the world’s two largest economies its negative impact is far-reaching and intensifying. There’s some serious collateral damage.

“It is likely that there will be further retaliations in the form of tariffs, punitive sanctions on each other’s nation’s firms and, possibly, currency devaluations.”

He continues: “The already volatile markets have been rattled again by today’s news.  Investors are getting spooked.

“However, the trade war will likely prove a blip for long-term investors.  

“Indeed, investors should embrace some volatility as important buying opportunities.

“Fluctuations can cause panic-selling and mis-pricing. Sought-after stocks can then become cheaper, meaning investors can top up their portfolios and/or take advantage of lower entry points. This all typically results in better returns.

“A good fund manager will help investors seek out the opportunities that turbulence creates and mitigate potential risks as and when they are presented.

The deVere CEO concludes: “Many savvy investors will be using the fall-out of the US-China trade war to generate and build their wealth.”

Although political events,  such as Brexit can disrupt areas like the fuel economy, the sector as a whole is strong. Why? Simple: because we always need energy.

However, in terms of a general investment strategy, there are times when non-essential commodities can be profitable. For example, since 2009, cryptocurrencies such as Bitcoin have become popular. Although experts will argue from an ideological standpoint that we need cryptos and blockchains, the reality is that they aren’t necessary (i.e. we already have currencies).

Non-essential markets may be essential investments

Of course, that could change as developers find new ways to use blockchain technology to prevent fraud and the like. However, right now, crypto technology remains a niche market. But, even though that’s the case, you can still make a lot of money from investing in Bitcoin, Ethereum and other tokens. The same can be said of other innovative yet non-essential industries. A prime example is gaming. Although it doesn’t fall into the same class as energy or forex, it presents no less value in terms of opportunities if you understand the market.

When you look at gaming as a whole, it’s currently worth an estimated $137.9 billion. According to the Global Games Market Report, 2.3 billion gamers now enjoy a combination of online, console and mobile games. In fact, the latter is the largest entity within the gaming industry, generating $70.3 billion in revenue in 2018. However, when you delve further into the market, an abundance of similar but diverse revenue streams present themselves. For example, online casino operators such as GVC Holdings are now among the largest gaming companies in the world.

With casino sites attracting casual players through welcome bonuses, such as free spins, complete novices are now becoming familiar with Vegas-style gaming online. In fact, such is the variety of promotions out there, third-party sites have become an essential way of directing players to the best spots. By reviewing the latest free spin offers and, more importantly, explaining the terms and conditions, review sites have made casino gaming more attractive and accessible to novices. Put simply, these sites, as well as the operators, have turned online casino gaming into a $45 billion+ entity.

Investing in gaming isn’t a game

Alongside gaming operators such as Amaya, which completed a $4.4 billion takeover of PokerStars back in 2014, video game companies have been flexing their muscles in recent years. Perhaps one of the best-known developers is Electronic Arts (EA). Boasting a share price of $95+ in August 2019, this gaming company saw revenue top $5.15 billion in 2018 for a net income of $1.04 billion. Helping to bolster EA’s balance sheet is a list of acquisitions that stretches back to 1987. Starting with Batteries Included and moving into the present day with takeover of mobile developer Industrial Toys, EA has been one of the industry’s most active players.

However, it’s not just EA making moves. Everywhere you look in gaming, something big is happening. With virtual reality (VR) and augmented reality (AR) starting to evolve, the market looks set for another rush of activity. For any savvy investor, this has to be worth considering. Even though games are, in essence, ephemeral, it seems their appeal isn’t. While the likes of Activision or Ubisoft might not form the foundations of your portfolio, they certainly have their place. Indeed, if you’re considering entering the investment game, gaming could be an ideal market.

The comments from Nigel Green, founder and CEO of deVere Group, which launched its pioneering cryptocurrency trading app deVere Crypto last year, come after two days of congressional hearings this week to discuss Facebook’s planned digital currency, Libra.

It also follows Bitcoin’s impressive 9% jump on Thursday.

Mr Green affirms: “Many of the lawmakers’ stance on cryptocurrencies – which are almost universally regarded as the future of money – is out-dated and blinkered.

“Some of their comments in the congressional hearings suggest that they think cryptocurrencies are a passing fad. That is delusional. 

“The demand for digital, global, borderless currencies is only going to increase. This is inevitable as the digitalisation of our economies and our daily lives grows further and picks up pace further still.”

He continues: “And because demand is set to soar over the next few years as retail and institutional investors pile into crypto, lawmakers now need to embrace them and bring them fully into the mainstream financial system with proper and robust regulation. 

“It is bordering on negligent not to do so for three key reasons.

“First, it would provide further protection for the growing number of people using and investing in cryptocurrencies.

“Second, unless the US leads the way in the digital currency revolution, other countries - with perhaps counter values to those of America - will control it and it would be hard to ever take back that control.

“And third, there are enormous potential opportunities for higher economic growth by embracing cryptocurrencies. Why are lawmakers not seizing these with both hands?”

In a similar vein, the deVere CEO slammed President Trump last week when he criticised Bitcoin, the world’s largest cryptocurrency by market capitalisation. At the time he said: “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.”

Mr Green concludes: “Digital currencies are the biggest innovation in payment systems in many decades. Facebook’s jump into the sector is a clear indication of the direction of travel in this regard and lawmakers must not put their heads in the sand and/or attack – that is futile and counterproductive. 

“Instead they must work alongside stakeholders to make the market stronger still as investors continue to dive into the likes of Bitcoin, Ethereum, Ripple’s XRP and Litecoin.”

However, despite propaganda and horror stories surrounding the housing market in the UK, and the question of how Brexit will affect this, there are actually a lot of positives to buying in the UK at the present. It may well be the case, that now is in fact the perfect time to buy a house in the UK, and here’s why.

Population Levels

A recent census actually showed that the population has grown by a record of 7% in the last decade to just over 68 million people. That’s almost the equivalent of adding the entire city of Manchester to the UK every year. In the next twenty or so years, the number of UK houses needed is expected to reach the sum of at least 28 million, which is an increase of 250, 000 households per year. With rapidly growing numbers like this and the demand for houses growing, why wouldn’t you invest in a property? Not only this, but cities such as Birmingham, Manchester and Leeds are flourishing like never before. London no longer has the monopoly, as many places up North are regenerating. Birmingham alone has gone through a complete transformation, costing over £500 million in development.

Low Prices

Housing prices are at an all time low, meaning it can only go up from here, so why wouldn’t you buy them now in order to make money on them later? It’s a very rare combination: the

weak pound, low interest rates and falling property prices. Because of these elements, borrowing is cheaper than ever, and mortgage rates are at an all time low. This increases the amount of money landlords can charge for rent, thus making their monthly rental income higher than ever before. Therefore investing a buy to let property in the UK at present could make you a lot of money in the long run.

Other Positives

Of course there are further positives to investing in a UK property:

• Studies show that the UK is actually the top European city for property investment, despite political Imagine how much it will boom when Brexit is (finally!) concluded.
• For investors, thanks to the internet and a growth in the alternative methods of sale to the traditional, such as quick sale investors, for example here. This is a great option in case investors end up looking for a quick cash sale, or alternatively look to make a purchase of the
• If statistics are indeed correct, it’s set that at least 20% of the population will be looking to rent their home rather than buy them in the next five If this is the case, then now would be the perfect time to invest in a buy-to-let property. Imagine the money you could make in the future - not bad for the pension pot. Sometimes an investment now is worth the reward you’ll get in the future.
• In the world, out of the top universities, sixteen are actually in the
• In regards to the growth in population, mathematically there are actually too few houses for the amount of people in the country now, and by how much that’s set to grow. Because the demand outweighs the current supply, investors who have exposure to property as an asset are likely to be able to regenerate a return from
• The rise in employment levels in the country is also another reason for investors to buy. By the end of 2017, 75.3% of people in the UK were then employed, as opposed to the 5% the previous year. 2017 showed the joint highest number since records began in 1971. To make this more useful, in numbers it means that roughly 415,000 more people were employed since 2016.

In short, these are only a small amount of the reasons why it’s worth investing in the UK now, and why in fact it’s the perfect time to buy property in this country. Regardless of your purpose, whether you’re looking to become a landlord or wanting to buy your own home, looking at prices and statistics now is the ideal time. So what are you waiting for

The UK has long been a top destination for investors, having received over £4.5bn of investment into technology companies within the last 3 years. However, with Brexit on the horizon, there is a discussion about how the UK can maintain its attractiveness to foreign and domestic investors after leaving the European Union.

Ana Bencic, Founder and CEO of NextHash, comments on how UK-based, high-growth companies can maintain their appeal to investors in a post-Brexit Britain:

"It is clear that in the UK currently, there is no slowdown in appetite for the investment opportunities that exist, especially in the fast-growing tech sector, but there are questions about whether this will continue after Britain has left the European Union. The UK's abundance of high-growth businesses, particularly those in the technology sector including FinTech, require vital growth finance in the next five years and with the current funding gap, how will these businesses thrive in post-Brexit Britain?

“Blockchain investment platforms can help make global growth finance for scaling technology businesses more transparent and easier to access. Both individual and institutional traders will be able to engage more with blockchain technology-backed trading, where the businesses are backed by a Digital Security Offering and there is greater potential to make rapid returns on their investments than the traditional venture capital route. When this is adopted into the mainstream, it will revolutionise the way businesses will access scale-up finance, how investors will access these companies, and how illiquid shares can be traded into liquid capital in ways never imagined before. As Britain prepares for Brexit, new forms of investment could be crucial for these scaling businesses as well as global investors who want to maintain access to the UK marketplace."

(Source: NextHash)

For an update on tax in India, Finance Monthly speaks with Shipra Walia, Managing Partner & Lead Consultant at W S & Co. – a Chartered Accountancy firm, rendering comprehensive professional services. Based in Noida, Uttar Pradesh, the company offers statutory audits, GST audit and compliances, tax consultancy (direct & indirect including international and domestic law), valuation, advisory on issues covered under Double Taxation Avoidance Agreements, expat taxation, audit, management consultancy, accounting services, secretarial services, representations before various authorities including Set Com and DRP etc.

How is the corporate tax system structured in India?

India has a dual taxation structure. One is direct tax paid by the taxpayer directly to the government like stamp duty, income tax, etc. and the other one is the indirect tax that reaches to the government through supply chain which is GST/VAT/Excise Duty/Customs duty. While a resident is taxed on their worldwide income, a non-resident is taxed only on income that is received in India, or that arises or is deemed to accrue in India.

How complex is the tax system in India? Are tax disputes commonplace and how are disputes resolved?

Every tax system has some inherent complexities as per the economy of the country. However, the equivalent measures are also there to curb or meet any tax litigations. Further, there are various laws which help with resolving litigations or reaching an agreement at an acceptable level for both parties. Similar, provisions exist for solving conflicts in cross-border transactions. For example, the Double Taxation Avoidance Agreements between India and foreign companies provide for MAP i.e. Mutual Agreement Procedure.

As per the amended provisions, any company whose location and effective management is in India will be treated as an Indian company and will be subject to all domestic laws

Have there been any amendments to India’s tax legislation since we last spoke in 2017?

Recently, India has included the concept of Place of Effective Management (POEM) in our tax legislation. Previously, if the control and management of a company was not located wholly in India, this was considered as a foreign company.

As per the amended provisions, any company whose location and effective management is in India will be treated as an Indian company and will be subject to all domestic laws. The rules also clarify the computation of active and passive business activity, the adherence to global group policies on accounting, HR, IT, supply chain. Additionally, routine banking operations shall not lead to POEM in India and strategic and policy decisions should be relevant in determining POEM, as opposed to routine operational decisions for oversight of day-to-day business operations.

Similarly, a new Goods and Service Tax (GST) was implemented in India in July 2017. GST’s mission is to exclude the multiple individuals and authorities involved in the process and is seen as one of the most influential transformations in the field of tax.

What tax considerations must be taken into account for foreign businesses who wish to expand their business operations in India?

India is a prominent upcoming market. With the government’s focus on “Made in India”, there are various tax benefits available in the country - either based on the product or the activity of the specific business. Under the changes, the initiatives are also driven towards improving exports with various countries.

With the government’s focus on “Made in India”, there are various tax benefits available in the country.

Tax benefits for angel investors, flexible valuation norms, no tax on remittance of profits by a branch of a non-resident company to its Head Office, no dividend distribution tax on Limited Liability Partnerships are amongst the few inbuilt attractions for expanding your business operations in India.

What tax incentives are in place for investors operating in India?

Tax incentives provided in the Indian tax structure can be broadly classified into location-based incentive, industry-specific incentives and activity based incentives. There are various SEZs set up for special benefits to 100% export-oriented units, as well as special international financial services centres (IFSC) which also serve as a catalyst for foreign investors that handle cross-border financial products and services.

Contact details:  

Website: www.wsco.in

Email: shipra@wsco.in

Tel: 9811738764

In this article, we are going to have a look closely at the earnings per share formula – including why it is important, what it is used for, what it indicates, and how it can be worked out.

Earnings per share (commonly abbreviated to EPS) is a financial figure based on a calculation  that show the past profitability of a company, the present profitability of a company, as well as that profitability that it could experience in the future. The EPS can be calculated by first establishing the net income (the net income is the income that a company makes after overheads have been considered), and then dividing this number by the total number of outstanding shares that the company in question has. If you are new to the stock market and the world of investing, you may not know exactly what ‘outstanding shares’ refers to – it refers to the number of shares that a company has that are not held by them, for example those that are held by its various different types of shareholders, no matter how big or small they may be individually. In simple terms, it is a calculation that one can execute and that can be useful as part of the decision in whether or not one would like to make an investment in the company in question, and whether or not they think the idea is a financially wise one.

The earnings per share (EPS) therefore, refers to what proportion of  a company’s profit has been dedicated to each individual share of that company’s stock. People regard this measure very highly, most particularly those that are interested in and that invest in the stock market actively – investors and traders. It is generally accepted that if a company has a higher earnings per share value than another, then it also has a better level of profitability and is therefore usually the more desirable option for investment. When the earnings per share is being calculated, it is recommended that a weighted ratio is made use of, since the number of shares that an organisation has in different types and places can be a varying one over the course of time naturally. The ‘weighted average’ of a company refers to the number of outstanding shares, more specifically, how much the number of outstanding shares that a company has, has changed over time, and whether or not it has at all! It is considered to be an important calculation to make prior to working out the earnings per share, in order to obtain a more accurate reading of where the company could be in the future, and to ensure that the earnings per share value that is obtained is not just one that is based on recent successes and endeavours of the company.

With the weighted earnings per share in mind, there are two different ways that the earnings per share value of a company can be calculated. It can be calculated firstly as the normal earnings per share, which is done by establishing the net income of the organisation in question after tax and then dividing this number by the total number of the outstanding shares that a company has. Alternatively, it can be calculated and a more realistic result can be obtained by calculating the weighted earnings per share value, which is done by taking the total dividends away from the net income after tax, and then dividing this number by the total number of outstanding shares that the company in question has.

The earnings per share value can be a provider of valuable information to a potential investor, depending on what type of investment that said investor is looking for.

The earnings per share value can be a provider of valuable information to a potential investor, depending on what type of investment that said investor is looking for. For example, an investor may be in search of an investment that is slightly more risky but that could provide extremely high returns if there risk happened to be worth it. On the other hand, an investor may be looking for an investment that can provide them with a steady source of reliable income that keeps any risk-taking to an absolute minimum. The earnings per share ratio of a company can tell this investor how much room the company in question has in terms of room for expansion to take place, and how reliable an investment they are making, as well as how much potential the investment has to return their needs.

Different types of Earnings Per Share Measure

There are many types of earnings per share measures that exist, three of which get the most focus from investors and shareholders.

Trailing EPS – the ‘trailing EPS’ is the earnings per share that the company in question had throughout the course of the previous financial year. It is an accurate reading to think about since it is based on  actual factual financial happenings within the organisation being looked at – it is not merely guesswork that is based on predictions on the company and how they think their business year is going to end up. However, the main problem with this figure is that it does not refer to what is relevant at the current time – a company’s profits can be extremely different 10 months apart.

Current EPS -  the ‘current EPS,’ refers to the earnings and the numbers of the company at the present time. This figure can be based on differing data however, in that a certain amount of the data will be factual and will use recent factual information surrounding the organisation in question, whilst the remainder of the data will be made up of reasonable predictions. The accuracy of this number is very much reliant on what stage of the financial year the company is in when the readings are made.

Forward EPS – ‘forward EPS’ is a number that is based on the profits that the organisation believes they will be making at some point in the future. These estimations are made either by the company in question, or stock market analysts. Anyone that is seriously considering investing in a company should consider these values, since they can be a good indicator as to what the future holds for the company.

Rajeev Saxena, Managing Director of Velocity Capital Advisors, explains why the country needs high-growth tech businesses now more than ever, and why Britain needs investors to back them through the Enterprise Investment Scheme.

With the seemingly interminable Brexit negotiations, you could forgive investors for being more than a little tentative at the moment. However, it has never been more important to back new British companies through investment.

Doing so will give Britain the best chance to thrive going forward, whatever the fallout from Brexit. It will help to bolster the economy when it needs it most and create valuable jobs. Meanwhile, focusing on high-growth tech startups well positioned to thrive in a post-Brexit environment will help drive home-grown innovation across British industry, attract foreign investment and boost exports.

Of course, investors want to minimise risk, but they also want to get the best possible return on their investments. That’s why the Government launched the Enterprise Investment Scheme (EIS). By offering generous tax incentives, EIS reduces investor risk.

Meanwhile, honing the scheme to focus purely on high-growth tech companies, which the Government did last year, maximises investors’ potential returns. It also shows the confidence the Government has in these types of businesses and leaves no doubt as to where they think the future of Britain’s economy lies.

Investing in these companies through EIS enables investors to claim 30% tax relief on investments up to £2m. Plus, they can gain even more by investing through the small number of portfolio funds that also offer carryback, enabling investments to be offset against tax in the previous year.

To reduce risk further, investors should choose high-growth tech startup portfolios with strong performance records. They should select highly innovative businesses with a strong market knowledge that are producing something highly appealing to an international audience so that demand for their products and services will be there, whatever the deal with Europe is.

Any investors sceptical of EIS should take note that it was recently independently assessed as the best tax incentive investment scheme out of the 46 that currently exist across Europe. In fact, countries across the globe are interested to replicate EIS in their own economies.

Investors should also note that SMEs in the UK are bullish about the future, not cowering in the shadow of Brexit. Almost three-quarters (74%) predict revenue growth of more than 20% over the next year. This presents another reason to invest.

Overall in 2018, VC investment in Europe reached £18.9bn, surpassing 2017’s record numbers. Some 31.5% (£6bn) of this was invested in UK startups. This was more than 1.5 times the level invested in fast-growth businesses in Germany, and 2.6 times the levels of investment seen by the startup ecosystem in France. In light of these numbers, it’s not surprising that 600,000 startups launched in the UK last year, more than ever before, despite all the Brexit turmoil.

This shows that Britain is very much open for business and that high-growth startups are flourishing. This is great news for the country and for investors, and it’s vital that it continues through further investment. In short, this is no time for investors to get cold feet. They should back Britain and high-tech startups now.

Amid a shaky marketplace, investors are eyeing the yield curve for signs of economic stability. History shows that when the yield curve inverts, a recession may soon follow.

Below Steve Noble, COO at Ultimate Finance, offers insight into the potential changes ahead and the way these will impact business and financing.

Ongoing Brexit discussions may mean it seems much longer ago, but in November both Houses of Parliament passed legislation to end Bans of Assignment contractual clauses. This is great news that lenders and SMEs will have been celebrating since the announcement was made.

What’s the problem with Bans on Assignment clauses?

Bans on Assignment often blocks the provision of vital funding to SMEs as some financiers are hesitant to supply this where clients and their customers have agreed a contract containing this type of clause. If the financier IS prepared to provide funding, they will either have to find a workaround – such as requesting that the business approaches their customer for consent –or request additional security from the client. Each of these options proves time consuming, incurs unnecessary costs and makes it difficult for clients to obtain invoice finance. Unsurprisingly, this can cause SMEs to either struggle on without the support they need or rely on alternative finance options that aren’t right for their business.

What does the change mean?

This means that from 2019 SMEs will be able to access the funding they need more easily. It’s why I’m welcoming the news that after two previously unsuccessful attempts, Bans on Assignment clauses are now null and void in England, Wales and Northern Ireland. SMEs will therefore be able to assign receivables to invoice finance providers without having to spend time and money seeking consent from customers or trying to find workarounds to these clauses which can make things unnecessarily complex.

The legislation also makes clauses prohibiting a party from determining the value of a receivable and being able to enforce it ineffective. Again, this will increase the appeal of invoice finance for so many SMEs across the country.

Does the regulation impact your business?

Clearly, this is great news for SMEs and funding partners across the country. However, there are still caveats in place which will inevitably frustrate some.

• The regulations apply to contracts entered into on or after 31 December 2018
• They do not apply to receivables due to be paid to large enterprises – traditionally defined as businesses with more than 250 employees – or special purpose vehicles
• They exclude certain contracts from the scope of the regulations, for example those relating to land and for the provision of financial services
• They only apply to contracts governed by the laws of England, Wales and Northern Ireland

The final point will likely prove the most frustrating, as the current legislation doesn’t change anything for more than 345,900 SMEs in Scotland, leaving them to potentially continue struggling to gain access to vital funding next year.

Hopefully this won’t be a permanent issue however as the Scottish Government may follow in the Central Government’s footsteps and announce similar legislation to ensure SMEs north of the border aren’t at a disadvantage compared to the rest of the UK.

Onwards and upwards

Despite the caveats, the news that Bans on Assignment clauses will soon be a thing of the past is great news for SMEs and lenders alike. This should result in a simplified invoice finance process and therefore more small businesses gaining access to the funding they need to continuing thriving in 2019. If that’s not good news, I don’t know what is.

Experts at Bondora have uncovered the private investments of professional footballers across four countries.

Whether sports cars or SUVs, mansions by the lake or penthouse flats: the following research analyses the lifestyle of the highest-paid national football players on the basis of their salary, properties and vehicles, and compares these with the salary, vehicle and property value of the average citizen.

Table: Information on the annual income, property value, car model and car value of the British national team

Table: Information on the annual income, car value and property value of the average UK citizen and Football player

The top earners among the England national team are Harry Kane and Raheem Sterling, earning £9,735,785 from Tottenham Hotspur and £8,518,812 from Manchester City respectively - 95.9% more than the average UK citizen.

Despite Ashley Young having the smallest net worth from the Top 10 list, £6.23 million, his house is the most expensive. With a price tag of over £12 million, it’s forty times the property value of the average UK citizen.

The second most expensive house is owned by Phil Jones, right-defense for Manchester United. His home set him back a hefty £5 million - almost twice his annual salary.

Dele Alli from Tottenham Hotspur owns the most expensive car, a Rolls Royce worth over £370,000. However, the centre-right midfield player has one of the cheaper homes out of the Top 10 list, valued at just over £2 million. It’s 17% of the price of Ashley Young’s property, but almost seven times more expensive than the home of an average UK citizen.

Compared to his net worth of almost £49 million, John Stones from Manchester City has a fairly modest car. The centre defence player owns a Mini Cooper just double the price of a car owned by the average UK citizen.

The lowest paid star from the Top 10 is Marcus Rashford, earning £2,433,946 per annum. His property set him back just over £2 million, 83% of his annual salary. His car, a Mercedes CLA 45 Coupe, may be just 2.5% of his annual salary, but is over nine times the price of a car owned by the average UK citizen.

(Source: Bondora)

The comments from Ian McLeod of Thomas Crown Art, follow growing concerns that the global economy is likely to experience a significant slowdown before the end of 2019.

Leading economic indicators tracked by the OECD have weakened since the start of the year and suggest slower expansion over the next six to nine months.

Similarly, the wider global expansion that began roughly two years ago has plateaued and become less balanced, according to the International Monetary Fund.

Mr McLeod observes: “There’s a growing list of investment tailwinds to consider for 2019. These include significant trade tensions, rising interest rates, political uncertainties, including Brexit, and complacent financial markets.

“The US, the world’s largest economy, has, of course, considerable influence on Asian and European economies. As such, should ther US stock market plunge – as it did recently scrapping all of its 2018 gains during a major sell-off - global markets are vulnerable too.”

He continues: “Against this backdrop, we can expect cryptocurrencies will increasingly be seen as investors’ ‘safe havens’ in 2019 and beyond.

“When the downside of the economy hits, digital assets cryptocurrencies like Bitcoin and Ethereum are likely to be viewed by investors as a robust means of storing wealth, in the same way they do with gold.”

Mr McLeod adds: “There are several keys reasons why the likes of Bitcoin and Ethereum will be safe havens. These include scarcity, because there’s a limited supply; permanence, they don’t face any decay or deterioration that erode their value; and future demand certainty as mass adoption of cryptocurrencies and blockchain, the technology that underpins them, takes hold globally.”

Of this latter point, he comments: “As mainstream adoption is going to dramatically gain momentum in 2019 as the world, especially business, realise ever-more uses for and value of crypto and blockchain.

“Ethereum’s blockchain, for instance, is used in our art business. It has allowed us to create a system to use artworks as a literal store of value; it becomes a cryptocurrency wallet.

“It also solves authenticity and provenance issues – essential in the world of art. All our works of art are logged on the Ethereum’s blockchain with a unique ‘smART’ contract.”

The tech expert concludes: “We are some way off from cryptocurrencies replacing the Swiss Franc, the Japanese Yen or gold as the preferred safe haven assets.

“However, as the world moves from fiat money to digital, and as adoption of crypto picks up, there can be no doubt that cryptocurrencies will be firmly in the pantheon of safe haven assets within in the next decade.”

(Source: Thomas Crown Art)