A while back, a seasoned trader once advised this author that whether you love Bitcoin (BTC) or not, the cryptocurrency is the King of The Markets. This means that BTC dictates the general direction of all other crypto assets out there. Whenever Bitcoin is doing well or is experiencing sideways movement, the rest of the coins and tokens either increase in value or also experience sideways movement. The converse is also true. If BTC tanks, the entire market falls with it. Referencing old sailing boats such as those popularized by Pirate movies, BTC is the sail needed to carry this ship of cryptocurrency markets to our preferred destination of The Moon!
Similar sentiments have been echoed by the current CEO of Goldman Sachs, Lloyd Blankfein. He says that critics who believe Bitcoin and cryptocurrencies have no future are wrong 100%. Mr. Blankfein has been open-minded about the entire cryptocurrency markets since last year and had this to say at a conference of the Economic Club of New York:
“If you go through that fiat currency where they say this is worth what it’s worth because I, the government, says it is, why couldn’t you have a consensus currency?”
During an earlier interview with CNBC, Mr. Blankfein had reminded the audience that there was a period in US history when the US government abruptly abolished the gold standard and replaced it with a currency of ‘no value’,. This replacement currency was the USD. Back then, everyone embraced the change and has been the case till now where even foreign governments hold their reserves in the US Dollar.
He used this example to reiterate that Bitcoin could one day replace the regular fiat currency used around the globe. He expressed his opinion by saying that:
“A five dollar gold coin was worth five dollars because it had five dollars worth of gold in it. Then they issue paper money that is backed by gold in the treasury. Then one day, they issue paper money that does not have the backing of gold. There was no pledge that if you turn it in, I’ll give you five dollars of gold. It is fiat money. I say this piece of paper is worth five dollars and so therefore it is five dollars and a lot of people did not take that for a long time.”
By this statement, we can conclude that the acceptance of Bitcoin and cryptocurrencies will be a matter of trusting that the asset holds value the same way paper money was eventually trusted as being a store of value.
Mr. Blankfein would later add:
“You move a little bit further and you get bitcoin that is not a fiat currency so I don’t trust it and I don’t like it. On the other hand, if it works, I say maybe it was a natural progression from hard money to digital money.”
In summary, the adoption of Bitcoin will have to come from a global change of mentality that it is a trusted asset that holds value. This will happen in a manner similar to how the USD came to be accepted as the natural store of value across the globe. It might sound ridiculous that the USD is simply paper, but there is a global consensus that it is valuable.
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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…
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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.
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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.
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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.
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