Okay let’s be honest here. If I had to estimate how many people truly understand the
beauty of blockchain technology and cryptocurrency, I’d have to say that around 15% of the members within the digital asset space can comprehend a fraction of the revolution. In an analysis done by Sinclair Davidson, Jason Potts, and Primavera De Filippi, they highlight that blockchain technology in itself is a revolutionary technology in that “it undermines the strong case fo the economic efficiency of hierarchies (which exploits incomplete contracts) and relational contracting (which requires trust between parties) over markets. To the extent that blockchains can eliminate opportunism, they will be at a competitive advantage of traditional organizational hierarchies and relational contracts” (Davidson et al. 16). In fact, instead of looking at blockchain as a new form of general purpose technology, such as transistors, computers, internets, the authors argue that it...
An Exchange Traded Fund (ETF) is a type of security that tracks various forms of assets that can be purchased or sold on a stock exchange, similar to a regular stock. As cryptocurrency gains more prominence in modern society, more cryptocurrency ETFs are being approved by countries; however, very few countries have approved of a Bitcoin ETF. Sweden, Canada, Germany, Switzerland, Germany, France, Netherlands, and Brazil are currently the only countries in the world that have passed Bitcoin ETFs to be traded on their exchanges. Other countries are interested in developing their platform to be able to trade many different types of cryptocurrencies while some are mainly focused on Bitcoin.
A common problem between countries that want to trade cryptocurrency assets is the resistance from their respective security councils. The Phillipine Stock Exchange wants to become a platform for trading cryptocurrency assets but is waiting for approval from its Securities and Exchange...
by Lewis Park
All research was acquired by Wolfie Zhao’s segment in TheBlock
We all know that Bitcoin will be around for a long time. At least, for those of us who truly believe in the technology that powers Bitcoin, we know that Bitcoin is fundamentally bullish and has been the first innovative piece of finance since the creation of the first documented ledger system in the form of double-entry bookkeeping created by the Jewish community in Roman civilization. Bitcoin’s characteristics of being censorship resistance, deflationary, limited in supply, decentralized, etc., are all factors that would enable it to be the native internet token that the world desperately needs to help even the playing field for the little guys. In fact, Bitcoin has always championed equality, and it is a no brainer for people to support its success throughout the known world.
Then there’s China.
Recently, China has cracked down on Bitcoin mining, an...
By supermajority vote, 62 out of 84 possible votes in favor, El Salvador's government will recognize Bitcoin as a legal tender in the country alongside the current tender, the US dollar. Going into effect September 7, 2021, the government believes it will be beneficial to the country's economy. However, the government has received mixed feedback from the country's citizens as to whether or not this will help the country. Only 30% of citizens have access to traditional financial services which will make it difficult for many to use or access bitcoin tender. In addition, the country is heavily reliant on money sent back to the country by workers abroad with a fifth of the county’s GDP consisting of such. Many citizens of lower economic class still feel lingering trust issues from when they lost considerable purchasing power when the USD was adopted as the only legal tender in 2001. However, the government has taken that into consideration and is developing solutions to address...
Bitcoin and Ethereum miner revenue declined massively in June. Bitcoin has seen the largest decrease in total mining revenue in its history as June ends. A reduction in total transactions and fees are the main contributing factors to the total value dropping 42% from May 2021 to June 2021.
Total daily transactions saw a significant drop in the month of June. Levels haven’t been this low since August 2018. June saw roughly 100,000 fewer daily transactions in comparison to the all-time high of 300,000 daily transactions occurring just a month before in May. Both total users and fee rates saw a large reduction rate, with total users dropping 62% and the share of bitcoin mining revenue from transaction fees fell to 5% in June from about 9% in May.
Bitcoin’s hash rate has seen a 50% decrease since its peak in May. China’s recent crackdown on cryptocurrencies has been the largest contributing factor with a reported 90% of Bitcoin’s mining capacity being shut down...
Coinbase is on its way for a direct listing on the Nasdaq exchange under ticker COIN. It has filed a S-1 registration statement that serves as an important hallmark before it goes public. It also provides a treasure trove to investors about Coinbases’s finances.
Here are some notable quotes from the S-1:
“As of December 31, 2020, the total value of crypto assets on our platform represented 11.1% of the total market capitalization of crypto assets, increasing from 8.3%…[from 2019]”.
“We have grown quickly and in a capital-efficient manner since our founding. For the years ended December 31, 2020 and December 31, 2019, we generated total revenue of $1.3 billion and $533.7 million, respectively, net income (loss) of $322.3 million and $(30.4) million, respectively, and Adjusted EBITDA of $527.4 million and $24.3 million, respectively”
The centralized exchange helped cater to both Microstrategy and Tesla in buying...
Morgan Stanley’s head of emerging markets and chief global strategist, Ruchir Sharma, published a report on "Why Crypto Is Coming Out of the Shadows". In the report, he mentions how cryptocurrency is becoming more established and for those who don't adapt, to "risk being left behind". The report cites that 20% of all U.S. dollars in circulation were printed in 2020 and how that inflationary risk is fueling the rush to cryptocurrencies. Bitcoin is up 200% in the year, compared to the S&P 500 Index* that only rose 16%.
Moreover, U.S. debt to other countries surpassed 50% of its GDP in 2019. In 2020, given COVID-19, that debt rose to 67% of GDP, a big warning sign that the U.S. dollar may lose dominance as its liabilities rise.
As Bitcoin gains market share, the volatility has gone down from an annual average of over 400% to 69%, compared to "27 percent for silver, 13 percent for gold, and around 20 percent for stocks." According to a recent survey mentioned...
Bitcoin sits at $47,000 thanks to Tesla. The newly published 10-K filing reveals that in January 2021, the company bought $1.5 billion dollars worth of bitcoin. Honestly, it was inevitable after Elon Musk tagged #bitcoin in his Twitter Bio on January 29. Moreover, Tesla may soon accept crypto payments with a likelihood of holding even more Bitcoin rather than cashing out once payment is received.
Bitcoin is here to stay. Like Alexander Lorenzo always says, “Get with it or get left behind”.
Picture source from Rohail Saleem