Four Good Reasons to Be Optimistic About Bitcoin: Is Bitcoin the cryptocurrency of the future?

Four Good Reasons to Be Optimistic About Bitcoin: Is Bitcoin the cryptocurrency of the future?

So far in 2022, the entire crypto market has been impacted by wider economic and political uncertainties, led by Bitcoin (CRYPTO: BTC), with prices down more than 50% over the past six months and the price heading for the ninth consecutive red weekly candle. And while Terraform Labs successfully airdropped new Luna tokens to previous holders, the market sentiment continues to be bearish, with the Fear and Greed Index remaining in the doldrums.

One way to avoid panic selling when the price of cryptocurrencies drop significantly is to remind yourself of the essentials, to stick to your plan and don’t invest more than you can afford to lose.  Of course, that’s easy to say when you’ve lost money in Luna and seen your Bitcoin investments go down in value. However, there’s also an upside to the current market conditions as users can now buy Bitcoin at the new low price around the $30,000 mark.  But no matter what level your holdings in the current market, you should be optimistic about the long term viability of Bitcoin. Here are four key reasons to consider, to help re-frame your mindset and support your belief in Bitcoin going forward.

Mass adoption of crypto assets

According to relevant data, cryptocurrencies have reached a tipping point in 2021.  It has evolved from what many consider a niche investment to be a global, established asset class.  Venture capitalists are pouring money into the cryptocurrency market.  Among them, venture capital invested more than $30 billion in crypto assets and blockchain startups, with more than $10.5 billion in investment in the fourth quarter of 2021 alone. With an estimated $10 globally in the first quarter of 2022, reportedly the largest amount to date, and double the level for the same quarter in 2021. In fact, investment in crypto has continued to grow despite this year’s decline in Bitcoin price. “This decoupling is demonstrative of investors’ disbelief that a prolonged bear market in digital assets is forthcoming, as well as the significant amount of dry powder held by funds seeking to allocate to the sector,” said Alex Thorn, head of firmwide research at blockchain-focused bank Galaxy Digital in New York earlier this month.

Many major financial institutions are also exploring cryptocurrencies.  Recently, Fidelity, the largest retirement plan provider in the US with over $4.2 trillion in assets under management, said it would allow investors to deposit up to 20% of their retirement savings in the form of Bitcoin into their accounts.  While banking giant JPMorgan recently said that despite the crypto crash, its estimate of Bitcoin’s fair value is $38,000. “The past month’s crypto market correction looks more like capitulation relative to last January/February and going forward we see upside for bitcoin and crypto markets more generally,” the bank’s strategists said. In addition, both Visa and Mastercard have launched their own crypto cards.  And as the regulatory environment is catching up, ironically thanks in part due to the Terra collapse, there is reason to believe that cryptoassets will enjoy mainstream adoption in the future.

Countries adopting Bitcoin as legal tender

El Salvador was the first country to adopt Bitcoin as legal tender, led by President Nayib Bukele, but so far it remains uncertain whether the bold initiative will succeed.  As reported in the Wall Street Journal on May 14, “there are no indications that Mr. Bukele plans to change course. On Monday, he said on Twitter that El Salvador bought 500 bitcoin at an average price of $30,744. “El Salvador just bought the dip!” he added.” It’s not just El Salvador, the Central African Republic also recently approved Bitcoin as its national legal tender.  No one could have imagined that this cryptocurrency, which was only invented some 13 years ago, could become the legal tender of a country today.  If these experiments succeed other countries may adopt Bitcoin or other cryptocurrencies as their legal tender in the future.

Is Bitcoin the cryptocurrency of the future?

One of the appeals of Bitcoin and other cryptocurrencies is that it removes friction in terms of costs and transaction speeds from payments, especially international transfers.  Indeed, according to Ark Invest, cumulative Bitcoin transfers have grown by more than 463% in the last year.  ARK analyst Yassine Elmandjra wrote in the report ‘Big Ideas 2022’ that Bitcoin will settle $13.1 trillion in 2021, a figure that even exceeds Visa’s payment volume.

Ark Invest’s research also highlighted several areas where Bitcoin could take market share from traditional activities. These include international remittances, emerging market currencies, institutional investment and acting as a form of digital gold.  Some experts predict that if Bitcoin can make significant progress in advancing these use cases, its price could exceed $1 million by 2030.

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Source: ARK Invests Yassine Elmandjra tweet, Jan 25, 2022

Bitcoin’s innovation continues apace

Although Bitcoin is not run by a centralized organization, it continues to grow along decentralized lines.  There is a small core group of developers working on improving the network, fixing bugs and security issues, and improving functionality.  For example, last year Bitcoin implemented a major upgrade called Taproot to improve privacy, scalability, and security.  Another potentially significant move is the development of the Lightning Network, a layer 2 solution to Bitcoin that reduces costs and increases speed.  As reported in Cointelegraph on May 30, “Bitcoin Lightning Network capacity attained an all-time high of 3915.776 BTC, as evidenced by data from Bitcoin Visuals, displaying a commitment to the cause of improving BTC transaction speeds and reducing fees over the layer-2 protocol.” This follows news from CEO of Strike, Jack Mallers, at the Bitcoin 2022 conference, that the company’s plans to collaborate with point-of-sale behemoths Shopify, NCR, and Blackhawk Network to revolutionize the payments industry. As a result, online retailers that support Shopify can now accept payments via the Lightning Network, in turn allowing US merchants to receive payments from customers globally as US dollars. As the integration of the Strike wallet is with major online players in the US economy, this could potentially do a lot for the broader adoption of Bitcoin in the retail industry.

While there are good reasons to remain optimistic about Bitcoin, there are also still many things that investors and traders need to be careful about when investing in Bitcoin and cryptocurrencies.  Data in recent months confirms once again that cryptocurrencies are a highly speculative and volatile asset.  Cryptocurrencies are still a relatively new sector compared to traditional investments like stocks and funds, and while we don’t have certainty exactly how it will develop in the long term the potential is clear to see. “I believe Bitcoin is a viable long term investment both as a store of value looking to the future, with the price trending significantly upwards after each halving event. But also, I’m excited about the rapid development of the Lightning Network, for both retail players but also for financial inclusion across the globe,” said BigONE Chairman Anndy Lian.

Original Source: https://www.benzinga.com/22/06/27599358/four-good-reasons-to-be-optimistic-about-bitcoin-is-bitcoin-the-cryptocurrency-of-the-future

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

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Cryptocurrency losses top $275bn in a single day as instability spreads

Cryptocurrency losses top $275bn in a single day as instability spreads

TOKYO — More than $275 billion has been wiped off the value of the global crypto market in the space of 24 hours, after the collapse of a cryptocurrency that was supposed to be pegged to the U.S. dollar sparked mayhem.

As of Thursday afternoon in Asia, the total market capitalization of global cryptocurrency was $1.14 trillion, down more than 19% on the same time Wednesday, according to CoinMarketCap. Dozens of digital coins lost a quarter or more of their value, and even bitcoin, the largest and oldest cryptocurrency, was down 14%.

A crisis of confidence among crypto investors has been spreading since the weekend, when TerraUSD became unmoored from the U.S. dollar, which it was supposed to be shadowing. TerraUSD, also known as UST, was one of the most popular “stablecoins,” which are meant to have the same value as a real-world currency and have become a backbone of some crypto trading.

UST’s supposed peg to the dollar was based on a complicated algorithmic interaction with other cryptocurrencies, which turned out not to work.

The price of UST fell as low as 23 U.S. cents on Wednesday, and while it recovered to a level around 60 cents on Thursday, that is far below the $1 peg it is meant to maintain. Do Kwon, the Stanford University-educated developer behind UST, tweeted: “I understand the last 72 hours have been extremely tough on all of you. Know that I am resolved to work with every one of you to weather this crisis, and we will build our way out of this.”

“The snowball effect on the whole market is big,” said Anndy Lian, chairman of the Netherlands-registered crypto trading platform BigONE Exchange. “UST deviates too much from the $1 mark, resulting in more panic in the market. Investors who are already fleeing risky assets amid fears over rising inflation and possibly a recession start to panic sell as bitcoin falls below their expectation.”

Ethereum, the second-largest cryptocurrency after bitcoin, was down more than 20% in 24 hours to Thursday afternoon, while other well-established and popular coins lost even more value. XRP and Polkadot were both down around 30%. Dogecoin, a joke cryptocurrency hyped last year by Tesla CEO Elon Musk, was down by a third, according to CoinDesk.

The collapse of UST has already caught the eye of regulators, many of whom have issued stern warnings about the potential risks to financial stability posed by stablecoins.

In a hearing before the Senate Banking Committee on Tuesday, U.S. Treasury Secretary Janet Yellen said it proved there should be federal regulations. “This simply illustrates that this is a rapidly growing product and there are rapidly growing risks,” she said.

Most popular stablecoins, like Tether and USD Coin, claim to support their peg to conventional currencies such as the U.S. dollar by holding the same amount of fiat currency. Tether traded as low as 96 cents, versus its claimed $1 value, at one point on Thursday.

UST is known as an “algorithmic” stablecoin, using a complex mix of code and a sister token called Luna to stabilize prices. It relied on a mechanism that incentivized investors to maintain the peg, automatically adjusting the supply to maintain value.

Despite its riskier nature, UST gained popularity for a decentralized finance application called Anchor Protocol, which paid out interest in the form of cryptocurrency to users who lent out their UST.

The price began to fall below $1 late last week, after an interest rate hike by the U.S. Federal Reserve and a sharp drop in the crypto market. Amid the turmoil, the sister token Luna also sold off. This resulted in the algorithm becoming unable to work properly, breaking UST’s linkage to the dollar.

Additional reporting by Wataru Suzuki in Tokyo and Dylan Loh in Singapore.

 

Original Source: https://asia.nikkei.com/Spotlight/Cryptocurrencies/Cryptocurrency-losses-top-275bn-in-a-single-day-as-instability-spreads

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

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Cryptocurrency players struggle to operate within one percent TDS policy

Cryptocurrency players struggle to operate within one percent TDS policy

The imposed tax has adversely impacted short-term investors and day-to-day trading volume

A 30% taxation on income from cryptocurrency and other virtual assets, was followed with the government’s decision to add a one percent tax deductible at source (TDS) on cryptocurrency transactions from July 1, this year. Even as this appeared as the first step towards regularising the sector, it is felt that the industry is reeling under an adverse impact of such steps. “From the perspective of cryptocurrency trading volume, it has dropped. The implementation of these tax laws has caused the stagnancy of Indian cryptocurrency markets. Prices are also getting lower. Short-term and day traders will get affected due to the implementation of the one percent TDS,” Shivam Thakral, CEO, BuyUcoin, told FE Online.

Industry expert opined that the move by the government will ward off investment from international players. According to Anndy Lian, chairman, BigONE exchange, this will affect the market’s liquidity and foreign investors will look to stay away from Indian markets. “It will not be sustainable for investors in the long run. Active traders will get adversely affected as it would decrease day time trading. The overall market conditions would deteriorate, as more Indian cryptocurrency exchanges will look to settle outside,” he added.

What is to be noted that due to looming uncertainty over regulations and policies, a few companies have already shifted base to other markets such as Dubai. “The transition of Indian exchanges will have an impact on the overall cryptocurrency scenario within a year. I think the Indian government will see a huge efflux of cryptocurrency investors and developers in the near future,” Lian said.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

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