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Here is How Central Banks will End Up HODLing Bitcoin (BTC) Like they Hold Gold

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Bitcoin

Many central banks across the globe hold gold. As a matter of fact, most of the gold is locked up in government vaults all around the world. These governments hold gold as one of their reserve assets to hedge against periods of market unrest and for periods when they need to liquidate their assets quickly. Nothing moves faster in the markets than gold. But its liquidity is being threatened by another form of gold that is known as Bitcoin (BTC).

Yes. Bitcoin has often been referred to as the digital gold of the 21st century. Reason being that it is in constant demand and it embraces the most revolutionary technologies of cryptography and blockchain technology. One can claim that it is all hype and mania, but the current Bitcoin rush can be compared to the Gold rush that led many Americans to look West to California in the 1800s. The current price predictions of BTC are as high as $500k by 2024.

So, could central Banks end up HODLing Bitcoin (BTC) as part of their national reserves?

On an honest note, it would not be a surprise if we found some of the prominent governments holding some of their assets in Bitcoin. Sure, they would not admit it. But any shrewd investor who sees the potential in BTC would want to grab some before its price goes up to the Moon. This is primarily due to the fact that we already know that the amount of BTC to be minted is 21 Million. This means it is finite.

Over 80% of the total of 21 Million BTC in Satoshi’s whitepaper has already been mined. Utilizing the common economics theory of supply and demand, as BTC becomes more popular, so will its price. Therefore, individuals and governments will be looking to stockpile the digital asset. The last BTC is calculated as being mined in 2145 so there is a lot of time for its price to continue to skyrocket. BTC is indeed digital gold.

Similar sentiments of BTC replacing Gold have been expressed by billionaire investor Bill Miller who was quoted as saying:

“If it becomes much more valuable its then likely that various central banks begin to think of it as another potential asset just like they hold gold. That would open up the market extremely significantly.”

Miller, who has put in about 1% of his liquid net worth on Bitcoin, thinks of the digital asset as a non-correlated asset that can be compared to gold. He noted that BTC is easily more transportable than gold and can actually be used to buy things. This observation by Miller adds to the earlier mentioned liquidity that central banks look for in an asset. BTC can be easily sold by central banks on any of the numerous exchanges during times of need.

In conclusion, the value of BTC will most definitely go up since we all know that it is finite at 21 Million BTC to be minted. With its value going up and liquidity being as simple as typing in a BTC address and sending, more and more central banks will consider the digital asset as part of its reserve assets.

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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

Blockchain technology outshines Bitcoin and Gold during global pandemic

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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…

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Bitcoin

Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC

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Cryptocurrency

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.

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…

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Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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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…

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