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

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Bitcoin

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

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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Wisebitcoin Launches Professional-Grade Crypto Exchange

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Infrastructure is developing rapidly in the cryptocurrency industry, but the recent launch of the Wisebitcoin cryptocurrency exchange is nonetheless significant in terms of the immediate value it provides to cryptocurrency users. That’s because the exchange has had a beta version available since 2018 while continuing further developments in stealth mode, and already serves over 1.2 million end users with $6+ billion in 24 hour trading volume at the time of its official launch.

In addition to the large user base and deep liquidity, Wisebitcoin also stands out by offering up to 100x leverage to margin traders, with the ability to open a long or short position in their futures market. In the current bullish environment, leverage is a key way that experienced traders increase their exposure and try to profit from volatility.

For example, if a user opened a long position on ETH on January 2nd at a price of $750, they could have greatly multiplied their profits with even a small amount of leverage such as 5x as ETH reached over $1,100 within 48 hours. A simple unleveraged position would have netted $350 in profit, but a 5x position would have netted $1,750 and a 100x leveraged position would have netted an incredible $35,000 in profits from an initial investment of just $750. 

Beyond leverage, Wisebitcoin additionally offers a simple and…

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ISW Holdings Continues to Transition Cash Assets into Bitcoin with $20K Purchase Ahead of Mining Launch

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ISW Holdings, Inc. (OTC: ISWH) (“ISW Holdings” or the “Company”), a global brand management holdings company, is pleased to announce that it is in the process of converting $20,000 of the Company’s cash holdings into Bitcoin. The Company also announces that it will be regularly conducting similar transactions on a quarterly basis to convert a percentage of cash flows into Bitcoin.

Management expects this transaction to be completed this week. The Company began transitioning cash resources into Bitcoin with an initial transaction in March 2019 at approximately $4,000/Bitcoin.

“We believe in the future of Bitcoin and digital payment systems, and cash represents an unproductive asset given the degree of monetary expansion, stimulus, and debt dragging down traditional currency systems,” commented Alonzo Pierce, President, and Chairman of ISW Holdings. “We are also on schedule to launch mining operations through our Pod5 solution at the Bit5ive renewable energy project by the end of January.” 

The Company formed a joint venture partnership with Bit5ive, LLC, (“Bit5ive”) in May to build and deliver an elegant, powerful, and efficient data center pod design. The Proceso Pod5ive Datacenter is the result. Designed in partnership with Bit5ive, and geared primarily for the cryptocurrency mining industry, the Proceso Pod5ive Datacenter offers next-generation dynamic self-management functionality, plug-and-play operation, virtually non-existent maintenance needs, and an industry best-in-class 1.06 Power Usage Effectiveness score.

The Company’s first mining pod is set to…

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