Bitcoin and Litecoin prices will surge significantly and could even replace fiat currency - Global Coin Report
Connect with us

Bitcoin

Bitcoin and Litecoin prices will surge significantly and could even replace fiat currency

Published

on

Bitcoin Litecoin

The 21st century has witnessed a lot of changes in the financial markets. However many, almost none of the changes, have been as momentous as the introduction of cryptocurrency. Cryptocurrency has become a threat to the regulated financial system in every facet leading to speculations on the probability of some cryptocurrencies such as Bitcoin replacing physical money and blockchain technology substituting central banks in the future.

Many financial analysts have singled out possibilities of revolutionary changes in the financial markets as a result of the emergence of virtual currency. Others argue that Bitcoin does not meet the merit for cash; therefore, the virtual currency cannot replace fiat currency.

Both arguments make sense in their respective rights and its good to measure both arguments to come to an all-inclusive decision. This can only be done by examining both the traditional financial systems and the emerging crypto blockchain technologies. By doing this, we will be able to tell the impact Bitcoin will have on the financial system and whether it can replace fiat currency.

How Does the Traditional Financial System Work?

The financial system is a web of financial institutions governments use to supply money in an economy. Treasury, Central banks, Commercial banks, and Mint are some of these financial institutions.

Every nation uses physical money; therefore, their intrinsic value is determined by governments through their respective central banks. Physical currency exists as stored data, such as bank balances and records of credit and debit card settlements. Money supply is regulated through the minuscule reserve system, where banks and financial institutions are permitted to accept deposits and take loans as long as they have reserves.

The deposit liabilities are usually more than the bank reserve making the money supply to be more than the base money. To ensure banks have sufficient money for withdrawals, the central bank is charged with the responsibility of regulating the whole process of the money supply.

The Demise of Physical Money

According to many financial experts, the days of the dollar being the global reserve currency are slowly coming to their end. It could be substituted from 10 to 15 years from now. The question is not whether it’s going to happen because it is going to happen, the real question is, when. It looks like notable financial experts like Peter Schiff, Bill O’Reilly, Robert Kiyosaki, and Coinbase CEO, Brian Armstrong, agree with these sentiments although having different outlooks of how the whole situation might play out.

From the observation of the market trends and technological advancements being made, we foresee the US dollar falling from being the world’s economic sledgehammer sooner than expected; its fall will be at the hands of virtual currencies such as Bitcoin and Litecoin.

Litecoin Price Analysis

Litecoin has experienced substantial declines in price this year trading at a low of 73.17 US dollars from a high of 323.12 US dollars earlier this year.

But, according to crypto experts, Litecoin has the potential to reach as high as 500 to 600 US dollar, regardless of its current situation. Currently ranked as the 6th most significant digital coin in the crypto market with a market cap of $4.8 billion, Litecoin is no doubt a digital currency worth watching and investing.

For the latest cryptocurrency news, join our Telegram!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Maxpixel.net

Altcoins

3 Reasons Why WISE Token Could Be a Massive Winner in 2021

Published

on

WISE token

After working in proprietary trading for over a decade, I decided to transition to crypto in early 2017.  Although crypto is significantly different from traditional capital markets, I managed to successfully find a niche for successful and opportunistic trading.  While 2017 was the perfect time to get involved, the past few years have proven to be a bit more challenging as far as generating ROI.

Cryptocurrency traders have spent the past several years searching far and wide for the next big winner.  While the market as a whole hasn’t been very bull friendly, one specific area that appears to be gaining traction is decentralized finance, more commonly known as DeFi.  This area generally refers to the digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum.  The reason why so many crypto entrepreneurs are flocking to this space is that it allows them to create traditional financial vehicles in a decentralized network, outside the meddlesome control of foreign governments.

One extremely popular DeFi project is Chainlink (LINK) which is a decentralized oracle network that provides real-world data to smart contracts on the blockchain.  Chainlink has seen its token price increase by more than 300% year-to-date.    Another impressive project in the space is Kyber Network (KNC) which has seen its token soar from $0.20 at the start of the year to more than $1.60 at present.  Kyber Network’s on-chain liquidity protocol allows decentralized tokens swaps to be…

Continue Reading

Bitcoin

The Pros And Cons Of Cryptocurrency

Published

on

cryptocurrency

Many facets of our lives are now digitized––money is no exception. 

Have you noticed that paper money is on its way to being obsolete because so many people receive direct deposit and love the simplicity of their debit card? 

Not to mention, cash carries germs, as we’ve heard lots about during the pandemic. Many businesses have turned to card only options in light of this. 

But what about cryptocurrency?

You probably heard everyone raving about it a few years ago, but the excitement’s calmed down quite a bit. That doesn’t mean that it’s not a viable option you should keep in mind. 

What’s Cryptocurrency? 

Let’s start with the basic definition of cryptocurrency so we’re all on the same page. Cryptocurrency utilizes cryptographic methods and complex coding systems to encrypt sensitive information during data transfers. This protects your funds and personal information on a whole different level. 

These transactions are virtually impenetrable due to the combination of mathematical and technological protocols created and put in place. This aspect of cryptocurrency is what makes it safer. Also, the details of transactions are kept private. No one can see who sent what, etc., because those rigorous mathematical and technological protocols protect it.

The Pros: 

Different From Traditional Banking Transactions

One thing people hate about traditional banks is the fact that they can…

Continue Reading

Bitcoin

As Global Tensions Grow, Bitcoin Price May Go Higher

Published

on

BTC Surged Again as A Safe Haven Asset During Global Tensions

  • India – China Border Conflict

After weeks of squabbling and brawling along their long-disputed border, hundreds of Indian and Chinese soldiers engaged in a deadly clash Monday in a river valley that’s part of the region of Ladakh last week. Troops had massed on both sides of the border in recent months in the northern India region of Ladakh and the southwestern Chinese region of Aksai Chin, causing global concerns of a potential escalation between the two.

  • North and South Korea Clash

Last Tuesday, North Korea destroyed the liaison office it jointly operates with South Korea in the city of Kaesong, just north of the demilitarized zone that separates the two countries. 

North Korea also said it would send troops to now-shuttered joint cooperation sites on its territory, reinstall guard posts and resume military drills at front-line areas in a violation of separate 2018 deals with South Korea. Jeong said South Korea will take “immediate, swift and corresponding” steps to any North Korean provocation.

The tensions grown in Asia and the potential “second wave” of coronavirus in the United States may add more difficulties to the global economic recovery. Thus, Bitcoin, as a safe haven asset, attracts more investors to buy and hold. 

Continue Reading

Press Release