Here Is How Bitcoin (BTC) Is More Stable Than Fiat and Could Eventually Become a Global Currency - Global Coin Report
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Here Is How Bitcoin (BTC) Is More Stable Than Fiat and Could Eventually Become a Global Currency

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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.

To provide a visual representation of the event, we have included a screenshot of the TRY/USD chart referenced by Mr. Voorhees below.

TRY/USD Chart from the 9th to the 10th of August. Source, xe.com

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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Bitcoin

AAX Crypto Exchange Announces Massive Growth Numbers in August

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AAX Exchange

As the crypto market continues to surge, new traders continue to enter the market on a daily basis.  One of the first questions that new traders have is where should they trade crypto.  While there are countless options for buying and selling digital assets, traders need to exercise extreme caution and perform due diligence to avoid scam exchanges as well as places that have limited or no volume.  While the main platforms such as Coinbase, Binance, and Bittrex will always have significant volume, their fees are known to be on the expensive side.  AAX, a next-generation cryptocurrency exchange with the lowest futures fees in the world, represents a compelling alternative that traders should consider.

Growth Announcement

A few of the most important issues to consider when deciding whether to use an exchange are the number of users and the volume.  On August 7, AAX announced that in a little over two weeks, the exchange doubled its user base bringing the grand total of registered users to over 200,000.  At this rate, AAX may surpass the million mark later this year which would be an incredible achievement and is most certainly due to a variety of factors including extremely low fees and revolutionary technology.

Institutional-Grade Exchange

When AAX decided to build its platform, it set out to meet the demands of both institutional and retail investors.  In order to achieve that goal, the exchange operates at the highest possible…

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

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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…

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The Pros And Cons Of Cryptocurrency

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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…

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