The very word Bitcoin has almost become synonymous with that of cryptocurrency. It’s basically just a medium of conducting digital transactions – it’s a virtual currency and one of many. So how has it taken on a definition of its own and asserted itself as a leader in the digital financial ecosystem?
Bitcoin has been crowned king of altcoins, probably because it was one of the earliest and most successful of its kind. The trendsetter has ushered in a wave of cryptocurrencies built on decentralised P2P networks and has inspired a growing number of followers and spinoffs. But is Bitcoin struggling to keep up with the newcomers who have made considerable developments to the stability, security, and usability of the crypto world?
The supporting case for Bitcoin has been a clear one. Its pioneering infrastructure has situated it in a position of dominance in the altcoin realm. Bitcoin has a proven usage case as a store of value. Having existed over 8 years without failure, it has a large lead over most altcoins and has withstood the test of time as younger counterparts join the market. However, it seems to be on a downward slope, or at the very least, not progressing at the speed of the market.
In May this year, investors saw a $1,000 decline in the price of Bitcoin (CoinDesk). Notorious for its unpredictable highs and lows, it was unsurprising to many; as Bitcoin has always been the joy and bane of crypto-investors.
Image Source: Statista
The data here shows the reasons respondents gave for not wanting to use Bitcoin in GB. Clearly, 63% reported not wanting to use Bitcoin because they “don’t know enough about them”. Bitcoin has disregarded the general public and has arguably made little effort to provide understandable and accurate information on the ins and outs of the cryptocurrency.
Existing in a time of inspired and improved mediums of digital transactions, Bitcoin faces better-equipt rivals. Aggressive volatility in the market, lack of trust and few regulations have caused relentless problems in the crypto market, and Bitcoin has offered very few solutions.
One of the main attributes that give rise to the extreme volatility we see is speculation. The demand spikes for cryptocurrencies are fuelled by trading and speculation rather than through the adoption of the real world. This is abundantly clear when we consider that in 2018 the market capitalisation of cryptocurrencies hit an all-time high of over $800 billion but is currently at its all-time low at $200 billion (CNBC).
What’s been done to improve the conditions of the crypto market?
Here, enters Stablecoin, a cryptocurrency that has revolutionised the crypto revolution itself. It has been created primarily to tackle the harsh volatility and unpredictability that characterises the crypto market. They aim to stabilise prices by pegging them to some other ‘stable’ asset. These can include a cryptocurrency, fiat money or to exchange-traded commodities- like gold.
Instability makes for unfavourable market conditions that generate erratic investor behaviour and sell-offs that further weaken the money-earning opportunities in this niche market. Timvi (TMV), the secured algorithmic Stablecoin, has entered the market to tackle this precise problem and allow users to make money during both bull and bear market conditions.
The stabilising functions of Stablecoins are twofold. Asset-backed Stablecoins, such as Digix Gold Token (DGX), aim to reduce price volatility backed by exchange-traded commodities, or by using fiat currencies like the US dollar. Algorithmic Stablecoins rely on computing logic to monitor the supply of currency to achieve stability by mimicking the mechanisms of central banks.
Stablecoins are gaining increasing traction around the world. According to CryptoCompare, the market cap of the biggest Stablecoin is roughly $4 billion.
Image Source: CryptoCompare
The market cap of all Stablecoins now exceeds $5 billion.
Image Source: CryptoSlate
In the same report, Bitcoin has claimed that they aim to develop their Stablecoin solution within the next few years. But this may prove to be too little too late and could be the turning point where Bitcoin loses its crown for innovation.
Some Stablecoins such as Tether (USDT), a US dollar-pegged unit, are commonly used to trade bitcoins. One unit of Tether is intended to equate to one US dollar and has thus far proven to be generally reliable on delivering this.
So, Stablecoins are more complementary than they are competitive with Bitcoin. Indeed, they are a form of infrastructure provided by cryptocurrencies. It is disappointing that Bitcoin is yet to have secured its place as the Stablecoin leader, but the emerging alternatives do well to console this.
These developments are important for the future of the crypto market. Given that a currency is ultimately a store of value, it should not be speculative, but rather predictive and stable in order to grow the user confidence needed for cryptocurrency to go mainstream. The total Stablecoin market value share has more than doubled in the past 12 months and its continued growth may well suggest a fall in Bitcoin’s reign.
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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.
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…