Bitcoin (BTC) has constantly been on the news due to its characteristic volatility during a 24 hour period. Those who have learned how to trade with the ups and downs have loved the crypto industry as can be seen in the numerous tweets, facebook posts and telegram chats about profits on a daily basis. But this type of volatility is frowned upon by veteran Wall Street investors and trusted personalities such as George Soros who had this to say about the King of Crypto back in January:
“Cryptocurrency is a misnomer and is a typical bubble, which is always based on some kind of misunderstanding…Bitcoin is not a currency because a currency is supposed to be a stable store of value and the currency that can fluctuate 25% in a day can’t be used for instance to pay wages because wages drop by 25% in a day. It’s a speculation. Based on a misunderstanding.”
Looking at the recent volatility of BTC since the SEC decided to postpone its decision, it has only declined the most by 12% in a day. BTC dropped from $7,100 on the 7th of August to $6,242 on the same day. This is a drop in value of 12% as earlier mentioned.
However, this drop in value is not as significant as the one witnessed by the Turkish Lira between the 9th and 10th of August this year. The fiat currency dropped by a comparative value of 0.18452 to the USD, to that of 0.15142 in a 24 hour period. This is a massive drop in value of 18%. This event even caught the attention of Shape Shift CEO, Erik Voorhees who tweeted the event as can be seen below.
— Erik Voorhees (@ErikVoorhees) August 10, 2018
To provide a visual representation of the event, we have included a screenshot of the TRY/USD chart referenced by Mr. Voorhees below.
Bitcoin (BTC) as A Global Currency
To hedge against the instability of fiat currency, Forex traders have been known to be using Bitcoin (BTC) to ‘stash their funds’ during periods of volatility. One such example is the recent news that the bank of Japan would stop stimulating the economy. This announcement happened around the 30th of July which coincidentally was when BTC seemed to be steady around the $8,100 levels. Perhaps this level was being maintained by the forex traders from Japan who soon went back to fiat as soon as the Bank of Japan eased up on its initial idea of cutting off government stimulus into the economy.
What then happened, is that BTC started fumbling once again after the Bank of Japan went back to business as usual. This indicates that the savvy traders cashed their BTC for fiat after the risk had been averted.
As we progress with time in the crypto-markets, we might see a situation where Bitcoin goes toe-to-toe with the major fiat currencies in traditional stock markets. This will now add an additional crown on to BTC as being also a global currency better than and greater than the USD.
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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.
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Blockchain technology outshines Bitcoin and Gold during global pandemic
As the popularity of cryptocurrencies such as Bitcoin begins to level up with investments made in metals such as Gold, together they have both made significant advantages for investors who have taken a leap to invest in them.
However, thanks to the pandemic and the dynamic shift in investing and the economy, many investors have seen fluctuating losses and gains thanks to the uncertainty of the current business world.
Many investors that backed companies who have exposure to blockchain technology have seen an approximate amount of 54% return on investments over the past year. This is even after considering how hard the global tech market and companies have been hit since the beginning of the pandemic.
What is blockchain technology?
Blockchain technology was first introduced as a supportive technology for Bitcoin. A blockchain is a simple, unchangeable and un-hackable digital ledger that holds transactions in little blocks attached to a chain. The transaction is duplicated and distributed across the entire network of systems on the blockchain, making it available for everyone on the network to see.
Each block in the chain contains various transactions which are recorded on the participant ledger every time a transaction takes place. The database is decentralised and is managed by multiple participants known as Distributed Ledger Technology (DLT).
Although blockchain technology was birthed from Bitcoin and was widely adopted for the use of cryptocurrencies, the way it works and its security has made…
Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC
The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.
The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.
Musk’s Tweets also impacted Dogecoin’s price
Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.
He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.
But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…
XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…