All posts by PARKERYL

​For far too long now, Bitcoin has been given the tag of “digital gold,” with several proponents arguing that the asset could eventually surpass the value of precious metals due to its scarcity and decentralized nature. 

This comparison initially seemed appropriate as both assets seem to serve as hedges against inflation, making them attractive to investors across the globe. Moreover, both assets have been prized for their resistance to government interference and their scarcity, naturally driving their prices upward as demand increases.

However, as we have moved through the years and finally entered 2025, continuing to compare the two seems to do both a major disservice — as there are now more fundamental differences than similarities between them.

The digital advantage is unmatched

Straight off the bat, the fact that Bitcoin is weightless, portable, and truly borderless gives it distinct advantages that physical gold simply cannot match. These aspects make the digital currency remarkably easy to own in substantial amounts and maintain self-custody. Furthermore, transfers can be executed immediately to anyone, anywhere in the world, without intermediaries or permission.

Also, unlike gold, Bitcoin’s supply is programmatically finite and cannot be altered or manipulated. While new sources of gold can be discovered and mined to increase supply, Bitcoin’s 21 million coin cap is immutable. Such algorithmic scarcity provides a level of certainty that gold simply cannot offer. 

Lastly, the digital nature of Bitcoin offers extreme transparency and traceability, making it more difficult to manipulate than physical gold. Bitcoin cannot be counterfeited, while fake gold remains a persistent problem in markets worldwide. Perhaps most importantly, Bitcoin is upgradeable and can be improved over time — both in its core coding structure and in the ecosystem of applications and financial services that surround it.

Different assets, different roles

Even when considering each vehicle purely as an investment instrument, arguments for their equivalence don’t seem to hold up because while gold’s historical significance as a store of value has spanned several millennia, Bitcoin’s history has barely covered a decade and a half. Yet Bitcoin’s growing acceptance among institutional investors has revealed a fundamental shift in how wealth preservation is perceived in the digital age — something that is supported by the fact that BTC has easily outperformed gold throughout recent years.

Despite this, Bitcoin’s short-term volatility has continued to dominate its reputation, meaning it’s still not universally considered a safe-haven asset (except by committed long-term holders and enthusiasts). Interestingly, this volatility has been beneficial for the currency, as these fluctuations have kept BTC in the public eye in ways that gold simply isn’t.

That said, if Bitcoin were to truly become a safe-haven asset with qualities similar to gold, it needs to exhibit similarly flattened volatility patterns, with slow, steady price appreciation over long periods. But there’s little indication that investors want Bitcoin to mirror gold’s price patterns.

These ongoing discussions about Bitcoin versus gold haven’t been lost on cryptocurrency exchanges like VALR, which has processed over $10 billion in trading volume since its founding in 2018. As one of Africa’s largest cryptocurrency exchanges, VALR has recognized the importance of both assets by offering trading options for Bitcoin (alongside several other cryptos) and even gold-backed tokens (such as XAUT).

Moreover, VALR recently launched a month-long “BTC vs GOLD” trading competition which is scheduled to run up until March 27, 2025. As the name suggests, the competition centers around trading both Bitcoin and XAUT (a digital token backed by physical gold), providing an innovative way for traders to engage with both assets simultaneously.

The competition highlights the growing interest in understanding the relationship between these two distinct assets while offering substantial rewards — i.e. a total of $20,000 for top traders, with weekly reward pools of $5,000 have been set aside. Interested individuals can qualify by making spot trades of at least $20 or futures trades of at least $200 on eligible Bitcoin and XAUT pairs.

Lastly, with their institutional-grade platform serving more than 1,100 corporate and professional traders alongside over 1.2 million retail traders, VALR has created an environment where both traditional and digital assets can be traded efficiently.

Looking ahead

As the cryptocurrency ecosystem matures, there needs to be an emergence of new platforms that recognize the unique properties of both crypto and precious metals. In this regard, offerings like VALR — with their comprehensive product range which span spot trading, futures trading, and fiat on/off-ramps — stand to allow investors to engage with both asset classes as per their own needs.

The S&P 500 (SPX) entered a correction Thursday amid concerns that Trump administration policies, notably tariffs, could slow economic growth and reignite inflation.

Thursday’s decline places the index 10.1% below its record closing high set last month, putting the benchmark into a technical correction — defined as a decline of more than 10% from the recent closing high — for the first time since October 2023.

To gauge where the index may be headed next, investors can turn to the past, Since 2008, the S&P 500 has averaged a gain of 15.3% one year after entering a correction, while returning 2.1% after three months and 4.9% after six months, according to Dow Jones Market Data cited by Barron’s.

Below, we take a closer look at the S&P 500 chart and use technical analysis to identify crucial levels worth watching after the index’s fall into correction territory.

Wyckoff Markdown Phase

After the S&P 500 set a new record high three weeks ago, it promptly reversed, setting up a Wyckoff Spring, a chart signal that indicates a market top before a markdown phase.

Indeed, the index has since trended sharply lower, falling below the closely watched 200-day moving average (MA) on its journey into correction territory. 

The relative strength index (RSI) confirms bearish momentum, with the indicator registering its lowest reading since September 2022. However, extreme oversold conditions also raise the possibility of upside price swings.

Let’s identify crucial support and resistance levels on the S&P 500’s chart that investors may be eyeing.

Crucial Support Levels to Watch

The S&P 500 shed 1.4% on Thursday to close the session at just above 5,521.

A move lower from current levels could see the index revisit the 5,400 area. This location may provide support near a trendline that connects a range of comparable price action on the chart between June and September last year.

Further downside opens the door for a decline to around 5,265. Those who invest in the index may look for buying opportunities in this location near several peaks and troughs that developed on the chart from March to August last year.

Key Resistance Levels to Monitor

During upswings, investors should closely monitor the 5,770 level. The index could run into selling pressure in this region near a series of similar price points on the chart stretching back to last year’s September peak, an area that also roughly aligns with the upward sloping 200-day MA.

Finally, a recovery above this level could see the S&P 500 climb to around 6,010. This region may provide overhead resistance near a trendline that links a series of highs and lows on the chart between November and February.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

When a great business develops a durable advantage over its competitors, it often begins paying steady and rising dividends.

Dividends are cash payments distributed to a company’s shareholders. They are often quoted in dollars per share, as in “Coca-Cola (NYSE:KO) pays a dividend of $1 per share.”

Dividends are also quoted in terms of a percent of the current stock price. This percentage is referred to as the “yield.” You might say, “Coca-Cola pays a dividend yield of 3%.”

The respected investment research firm Ned Davis Research produced a study that shows why investors should care a lot about dividends.

This study contained some of the most valuable data you’ll ever see.

Understanding this data can make you rich. Not understanding it can cost you years of wasted effort and lots of money. I’ll show you this data in a simple table.

You shouldn’t invest one dime in the stock market unless you understand it.

In the study, Ned Davis Research analyzed the returns of various types of stocks within the benchmark S&P 500 index from 1972 to 2016.

Ned Davis Research placed each S&P 500 stock into one of four general categories:

1. They placed companies that were reducing or eliminating their dividend payments into one category.
2. In another category, they placed companies that didn’t pay dividends.
3. In another category, they placed companies that were paying dividends, but not increasing them.
4. In another category, they placed companies that were paying dividends and were increasing them.

In other words, Ned Davis Research categorized stocks based on their policies of paying cash to shareholders.

You could say two of the categories (reducing dividends or not paying dividends) consisted of businesses that were generally not good at paying cash to shareholders.

You could say one category consisted of companies that were okay at paying cash to shareholders (paying dividends, but not increasing them).

You could say the fourth category consisted of stocks that were great at paying ever-increasing amounts of cash to shareholders (paying dividends and raising them).

According to the study, companies that paid growing dividends returned an average of 9.86% per year. Companies that were paying dividends but not increasing them returned an average of 7.33% per year. Companies that did not pay dividends returned an average of 2.46% per year. Companies that were cutting or eliminating their dividends returned -0.47% per year.

Here is that data shown in a table:

Source: Ned Davis Research

The results of the over 40-year study are clear: Companies that are great at paying cash to shareholders perform better than companies that stink at it. As the ability to pay dividends increases, returns go up. As the ability to pay dividends declines, returns go down.

Continuously rising dividends are a mark of business excellence. And business excellence translates into big shareholder returns.

“Wait a minute,” you might say. “If I only buy stocks that don’t pay dividends, won’t I miss out on big growth stock winners that invest their profits into growing the business instead of paying it to shareholders?”

To this objection, I say, “Yes, you will.”

By sticking with dividend-paying stocks, you will miss out on investing in the next Starbucks (NASDAQ:SBUX)… or the next Facebook (NASDAQ:FB).

But remember, for every winner like Starbucks, there are 1,000 failed coffee chains.

For every winner like Facebook, there are 1,000 failed websites.

It’s very, very unlikely that the average investor will be able to consistently find these companies early on… and hold them for years. Even trained professionals struggle (and often fail) to pick those kinds of winners.

It’s much, much more likely the average investor will be able to consistently identify companies that sell boring, basic products like soap, burgers and beer… and pay ever-increasing dividends.

By now, you know those companies are usually found in your refrigerator, cupboard or medicine cabinet.

If you’re interested in building long-term wealth in the stock market, consider changing the way you look at different stocks.

Consider placing each business you come across into one of four simple categories.

And only buy businesses that fit into one of those categories: the rising dividend category.

Does the business pay rising dividends, stagnant dividends, no dividends, or is it reducing dividends?

If the business doesn’t pay continuously rising dividends, pass on it. Here’s a simple rule of thumb for you to follow.

Buy the best and ignore the rest!

Regards,

Brian

P.S. My friend Louis Navellier is all about Elite Dividend Payers. But he wouldn’t let you leave here today without the chance to tell you about a couple more criteria…

A few simple requirements for any stock to get a coveted A rating from Louis, who’s been nicknamed the “King of the Quants.” The New York Times says he’s “an icon among growth investors.”

Louis calls these stocks “Money Magnets.” And you can check out the latest from Louis at this link.

Key takeaways

• Silo V2 is now live on Sonic, offering isolated lending pools designed to minimize systemic risk.
• The protocol allows full customization of loan-to-value ratios, liquidation models, and interest structures for ERC-20 token markets.
• More than $400M in total value is already locked in Silo V2, with future expansion planned across multiple chains.

Bringing isolated lending to high-speed DeFi networks

The DeFi lending landscape is evolving as Silo Finance rolls out its V2 protocol on Sonic, a high-performance Layer 1 blockchain. By introducing risk-isolated lending pools, Silo V2 offers a fresh approach to decentralized borrowing and lending—one that eliminates the risks associated with pooled lending markets.

With over $400 million in total value locked (TVL) and a track record of handling loans worth hundreds of millions, Silo has established itself as a trusted DeFi lending protocol. The V2 upgrade improves security, efficiency, and customization for lending markets, making it easier for users to deploy new financial products tailored to their needs.

Following its launch on Sonic, Silo V2 will expand to Ethereum Mainnet, Arbitrum, Base, and other EVM-compatible chains, making its isolated lending model more accessible across DeFi.

A shift toward modular and customizable lending

Unlike traditional lending pools that expose users to shared risks, Silo V2 enables developers to create independent twin-asset lending markets, each isolated from potential failures in other pools. This risk-contained approach ensures that if one market faces instability, the rest of the system remains unaffected.

Silo V2 also introduces modular lending mechanisms, allowing market creators to:

• Adjust loan-to-value (LTV) ratios and liquidation thresholds for specific assets.
• Implement custom interest rate models, including fixed-rate, auction-based, or traditional lending rates.
• Utilize a dual-oracle system that separates LTV calculations from liquidation triggers, reducing bad debt risk.

The upgrade further improves flexibility by supporting ERC-4626 integration, ensuring seamless compatibility with third-party DeFi applications.

Developer incentives and future expansion

Silo V2 introduces a new revenue-sharing model for market deployers, allowing them to earn fees in the form of an ERC-721 token. This provides long-term incentives for the creation of sustainable, high-performing lending markets.

Additionally, the protocol includes “hooks”—programmable extensions that allow developers to:

• Deploy idle liquidity into other DeFi protocols.
• Enable cross-market interactions within clusters of lending pools.
• Create fixed-term lending or permissioned markets for regulated assets.

With Sonic’s scalable infrastructure and Silo’s risk-isolated lending model, the protocol is poised to redefine how DeFi users approach lending, borrowing, and capital efficiency.

Why this matters for the future of DeFi

Silo V2’s launch on Sonic signals a shift toward safer, more customizable decentralized lending. By prioritizing risk isolation, modular lending options, and developer incentives, the protocol is setting a new standard for secure and scalable DeFi lending.

As the lending market expands across Ethereum and other chains, Silo V2 could pave the way for the next generation of programmable, risk-managed financial solutions in crypto.

Nvidia (NVDA) shares held up better than other Magnificent 7 stocks on Thursday after surging 6% the previous session, as investors have sought dip-buying opportunities in the chipmaker. 

The AI favorite has been under pressure since late January after AI competition from China sparked fears of overspending by technology giants on the infrastructure that Nvidia sells. More recently, worries that tariffs, a flare-up of inflation, and further export curbs could drag down chip sales have also weighed on sentiment.

Yesterday’s bounce coincided with a report that the chipmaker, along with Advanced Micro Devices (AMD), and Broadcom (AVGO), has been approached by Taiwan Semiconductor Manufacturing Company (TSM) about forming a joint venture to own and run Intel’s (INTC) foundry division.

On Thursday, Nvidia shares closed 0.1% lower at $115.58, while its Mag 7 counterparts all fell sharply amid a broader sell-off that sent the S&P 500 into correction for the first time since 2023. Nvidia shares are down 14% since the start of the year, with the lion’s shares of that loss occurring over the last month. 

Below, we take a closer look at Nvidia’s chart and apply technical analysis to point out key price levels that investors may be watching.

Descending Channel Takes Shape

Since setting a record high in early January, Nvidia shares have traded within a descending channel, with volume picking up in the second half of February.

More recently, the stock found buying interest near the channel’s lower trendline, coinciding with an uptick in the relative strength index (RSI) as the indicator moves back towards neutral territory.

Looking ahead, as the 50-day moving average (MA) converges towards the 200-Day MA, investors should watch for a potential death cross, a signal that forecasts further downside.

Let’s identify several key support and resistance levels on Nvidia’s chart that could come into play during future price swings.

Key Support Levels to Watch

The first key support level to watch sits at $105. This area, currently in the vicinity of the descending channel’s lower trendline, could attract buying interest near this month’s low and the September trough.

A close below this location could see the shares revisit lower support around $96. Investors may look to accumulate shares in this region near last year’s March twin peaks, which closely align with the early August swing low.

Important Resistance Levels to Monitor

Upon a move higher, it’s worth monitoring how the shares respond to the $130 level. This area may provide overhead selling pressure near the descending channel’s upper trendline, the moving averages, and several peaks and troughs on the chart stretching back to June last year.

Finally, further upside could see Nvidia shares climb to around $153. Investors who have bought at lower prices may seek exit points in this region near several peaks situated just below the stock’s all-time high.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

First of all, I want to thank all of the folks who joined my Next 50X NVIDIA Call special summit earlier today.

We covered a lot of ground, including…

• NVIDIA Corporation’s (NVDA) upcoming Quantum Day (Q Day) event.
• The revolutionary shift quantum computing will bring to AI.
• The single stock I believe could deliver a 50X return – like NVIDIA did once the AI Revolution took off.

You can check out the replay of the Next 50X NVIDIA Call right here.

And as it turns out, our timing was perfect with this event.

Because while NVIDIA’s Q Day is still a week away, quantum computing stocks surged on Wednesday on some fresh news that I need to share with you today…