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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.

Bitcoin

Is Bitcoin Esport Betting the next big thing in BTC Casinos?

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Bitcoin Casinos

Ever since the creation of the first sport games, people started enjoying the betting process. As the sports grew more popular around the world, so did the betting community and other than the physical betting shops, online sportsbooks have also started to emerge. Around 5 years ago the crypto gambling industry also made strides to join the fun and Bitcoin Casino started pouring its resources into providing proper sportsbook experience for their communities of players. For several years the things were steady and the concept of Bitcoin Betting was growing exponentially. Although recent events have significantly halted the progress of sports and betting, the new alternative started gaining traction in the gambling world, and that alternative was the Esport Betting. 

How did Esport Betting become so popular?

The beginning of 2020 was unprecedented for the history of mankind and all the global business, including the gambling industry. In the month of March, most of the sports stopped because of the ongoing global Covid-19 pandemic and betting services witnessed huge losses. That’s where the Bitcoin Casino industry found a viable alternative in the virtual sport segment. Because of that, Esport Betting has become increasingly more popular and the biggest BTC Casinos started providing a huge selection of tournaments in their sportsbook section.

How to participate in Esport Betting?

Esport Betting is basically the same process as the usual sports betting.…

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Bitcoin is Steadily Changing Our Lives in the Greatest Ways Possible

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Bitcoin

Bitcoin has already brought our world some of the most incredible innovation we have seen, but the best is yet to come. 

Bitcoin, cryptocurrencies, blockchain. While often regarded as mere industry buzzwords are actually the fundamentals of something far greater. Things like borderless currency, decentralized business, open-source software, collaborative technology, shared computing. These are just a scant few of the underlying principles that are taking our technology and daily lives into the future. Should these sciences be embraced, it will be a bright future indeed. 

It has become ever more transparent that humans today are living in fear. If nothing else, 2020 has brought the tidal wave of anxiety and distrust that many live in the shadow of, to a terrifying apex. We are all just waiting for the crash. While some flock to literature, or social media, or their favored news outlet, others flock to exchanges. Using platforms like the newbie friendly Bitvavo to place their bets on the future, on what could be, and what already largely is. Bitcoin and the technology that underpins its innermost workings are a preparation for a better tomorrow. An investment in a future that is already changing our lives today. 

The Point Behind the Hype 

In 2008, when Satoshi Nakamoto wrote the bitcoin white paper, few paid attention. It took years to…

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Bitcoin

AAX Crypto Exchange Announces Massive Growth Numbers in August

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AAX Exchange

As the crypto market continues to surge, new traders continue to enter the market on a daily basis.  One of the first questions that new traders have is where should they trade crypto.  While there are countless options for buying and selling digital assets, traders need to exercise extreme caution and perform due diligence to avoid scam exchanges as well as places that have limited or no volume.  While the main platforms such as Coinbase, Binance, and Bittrex will always have significant volume, their fees are known to be on the expensive side.  AAX, a next-generation cryptocurrency exchange with the lowest futures fees in the world, represents a compelling alternative that traders should consider.

Growth Announcement

A few of the most important issues to consider when deciding whether to use an exchange are the number of users and the volume.  On August 7, AAX announced that in a little over two weeks, the exchange doubled its user base bringing the grand total of registered users to over 200,000.  At this rate, AAX may surpass the million mark later this year which would be an incredible achievement and is most certainly due to a variety of factors including extremely low fees and revolutionary technology.

Institutional-Grade Exchange

When AAX decided to build its platform, it set out to meet the demands of both institutional and retail investors.  In order to achieve that goal, the exchange operates at the highest possible…

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