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Stepping off the rollercoaster: Why I’ve fallen out of love with Bitcoin

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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. 

Bitcoin

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. 

Bitcoin Price

Image Source: CryptoCompare

The market cap of all Stablecoins now exceeds $5 billion. 

Stablecoins

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.

Altcoins

CoinFlip Scores Big with BRD Wallet Partnership

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As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…

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New Tendencies of Bitcoin Gambling

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Gambling has always been an integral part of human nature. Nothing is sweeter than the money you win, and that’s why wagering games have always captivated people throughout history. Last couple of decades saw the gamblers switch increasingly towards virtual gaming, instead of physically being inside a casino. The popularization of online casinos led to the integration of Bitcoin Gambling into the systems and today a very large share of the casino industry is based on the virtual currency.

Reasons behind the transition

The tendency to switch from classic casino environment was dictated by the fact of mobility and accessibility. But the new age has brought us cryptocurrencies like Bitcoin that revolutionized the gambling business. From now on, the gamblers of the world don’t have to rely on traditional banking transactions to be able to enjoy themselves online. A simple crypto-wallet and ownership of virtual currency is enough to engage in Bitcoin Gambling.

Bitcoin Gambling and Blockchain Technology

The big reason for the heavy shift towards Bitcoin Gambling is the fact that Bitcoin and other cryptocurrencies are based on the blockchain technology. This means that the process is decentralized, resulting in a much faster speed of transactions, when it comes to depositing or withdrawal of funds in or from the casino accounts. It also makes gambling incredibly secure,…

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Bitcoin will return to the bear market? Bex500 senior investor teaches you how to get profit in the Bear market

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—— Don’t forget to join Bex500 bonus program at the bottom of the article.

Since September, the Bitcoin price has been decline from beyond $10000 to below the $8000, which 20% of the bitcoin value has been removed. The collapse of bitcoin price brings about the new panic in the bitcoin trading market. Many bitcoin investors are scared of the returning bear market as the early of this year. On the contrary, some of the bitcoin-believer, especially the investor who brought Bitcoin in the height of the price still thought that the bitcoin price will rebound very soon. However, it is no doubt that the early stage of the bear market has been shown up in the past month. Many crypto analysts start to predict the bottom price of this market movement.

However, as the market developed, crypto traders have detected more tools to safely pass through the bear market. They realized more ways to avoid the loss of the price decline; moreover, they began to earn profit from the bear market. The key to the tools is the bitcoin futures contracts. We are honored to make an interview with Bex500 senior investor Tom Beck and he introduces the details about bitcoin futures contracts. (Reporter=R, Tom Beck=T)

R: Hi, Tom, Thank you for accepting our interview, Could you introduce yourself?

T: Sure, My name is Tom, I have over…

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