Everything Else Went Digital — Now Crypto Redefines Money

Everything Else Went Digital — Now Crypto Redefines Money

The global economy relies and thrives on continuous innovation and growth, and cryptocurrency — once the digital outlier — is becoming an integral part of the next wave.

The landscape is not just one of digital currencies; it’s a movement that mirrors and grows with relentless progress within our manufacturing and service sectors.

And as it integrates further into the broader economic fabric, its value in the world is not just a distant future but a present reality — and one that’s a joy to watch unfold.

 

Key Takeaways

  • Cryptocurrency, once an outlier, is becoming integral to global economic innovation and growth.
  • Its value is not just future potential but a present reality, merging with the broader economic fabric.
  • In volatile markets, cryptocurrency offers a hedge, showcasing its strength in geopolitical turmoil.
  • Blockchain technology extends beyond finance, enhancing transparency and efficiency in various sectors such as supply chains.

 

Cryptocurrency Helps Hedge Against the Winds of Change

In today’s financial markets, volatility is the norm, and stability is the goal — and nowhere is that more apparent than in crypto.

Its volatility, often misconstrued as a weakness, is, in fact, its greatest strength — when there is geopolitical turmoil, the low correlation of cryptocurrencies with traditional assets offers a hedge, a sanctuary from the storm.

It opens a door for investors in emerging economies to partake in a global asset class — free from the confines of regional economic constraints.

Cryptocurrency is no longer merely a speculative instrument but a legitimate asset class deserving of recognition in any diversified investment portfolio.

The Shape of Crypto Around the World

In the United States, the quest for growth beyond blue-chip stocks leads us to value-oriented sectors and small and mid-cap companies.

Cryptocurrency fits perfectly into this narrative, offering a decentralized alternative that captures value in ways traditional markets may miss. With corporate earnings and a strong economy, the integration of digital assets could add a new layer of strength, especially as a hedge against inflation.

Meanwhile, Europe’s struggle with structural challenges and a slow transition to renewables could find a surprising ally in cryptocurrency. The new digital asset class can complement Europe’s dividend stocks, offering investors a new perspective on value and a hedge against economic stagnation.

And Japan’s emphasis on domestic reforms and corporate transformations matches with the principles of blockchain technology — the foundation of cryptocurrency. The transparency and efficiency blockchain promises can bolster Japan’s corporate governance, making cryptocurrency a valuable asset in the nation’s economic arsenal.

China’s dual-circulation strategy, which focuses on boosting domestic consumption and reducing export reliance, reflects the self-sustaining nature of cryptocurrency. As China addresses regulatory reforms and policy risks, cryptocurrency offers the power of decentralized finance (DeFi), providing an alternative less correlated to traditional investments.

The Future of Currency is Global and Transparent

Our world is still anchored in traditional asset classes, yet it fails to capture the undercurrent of change driven by digital currencies. Cryptocurrencies are gradually gaining recognition from institutional investors and regulators, signaling their integration into mainstream finance.

It complements but also offers an alternative to traditional systems, which are often constrained by borders, regulations, and the pace of innovation. They offer a global, decentralized platform for transactions and investments, appealing in an increasingly connected world.

Moreover, the blockchain technology that underpins cryptocurrencies is finding applications beyond digital currencies, including in supply chain managementhealthcare, and voting systems. This technology is fostering a more transparent, efficient, and secure digital economy.

The Bottom Line

Champion or skeptic, it is essential to recognize the quiet revolution that cryptocurrency is causing.

Its value as an asset is increasingly evident, and its impact on the financial landscape is significant. As we advance, cryptocurrency is set to become a more prominent and integral part of the global financial system, steadily altering the investment game for both investors and consumers.

This opinion piece is an invitation to investors to look beyond the chart and towards a future where cryptocurrency is not just an alternative asset but a foundational element of a diversified and modern portfolio.

The future is digital, and cryptocurrency is at the forefront, leading the charge.

 

 

Source: https://www.techopedia.com/everything-else-went-digital-now-crypto-redefines-money

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- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. 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.

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”.

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SEC chair Gensler confirms “everything other than Bitcoin” is a security: Implications and analysis

SEC chair Gensler confirms “everything other than Bitcoin” is a security: Implications and analysis

SEC Chair Gary Gensler reiterated that Bitcoin is not a security but a commodity under the Commodity Futures Trading Commission (CFTC) purview. He also stated that “everything else other than bitcoin is a security,” which has significant implications for regulating cryptocurrencies and digital assets in the United States.

Gensler’s statement reflects the SEC’s long-held view that many cryptocurrencies and digital assets are securities under U.S. law. The SEC’s definition of a security is broad — it includes any investment contract in which an individual invests money in a common enterprise with the expectation of profits solely from the efforts of others. In other words, if an asset is sold as an investment with the expectation of profit based on the efforts of others, it is likely to be considered a security.

Gensler’s comments have sparked debate in the cryptocurrency community. Some argue that his view is overly broad and that many digital assets do not fit the SEC’s definition of a security. Others argue that the SEC’s approach is necessary to protect investors from fraudulent or manipulative activities in the cryptocurrency market.

One of the key implications of Gensler’s comments is that many digital assets may be subject to SEC regulation. This could include initial coin offerings (ICOs), a crowdfunding campaign where investors purchase digital tokens in exchange for cryptocurrencies like Bitcoin or Ethereum. Many ICOs have been criticized for their lack of transparency and accountability, and the SEC has taken enforcement action against several ICO issuers in recent years.

Another implication is that exchanges that trade digital assets may be subject to SEC oversight. Under U.S. law, exchanges facilitating securities trading must register with the SEC and comply with various regulations. If the SEC views many digital assets as securities, then exchanges that trade those assets may also be required to register with the SEC and comply with its regulations.

His comments suggest that the SEC may take a more aggressive approach to regulating the cryptocurrency market. This could include increased enforcement actions against issuers of digital assets considered securities and against exchanges that facilitate trading those assets. It could also lead to new regulations to increase transparency and accountability in the cryptocurrency market.

The SEC’s approach to regulating cryptocurrency has been debated for several years. Some argue that the SEC’s current approach is too cautious and stifling innovation in the cryptocurrency space. Others argue that increased regulation is necessary to protect investors from fraud and manipulation.

Gensler’s comments suggest that the SEC will likely take a more assertive approach to regulate the cryptocurrency market in the coming years. This could include increased enforcement actions, new regulations, and closer scrutiny of digital assets and exchanges that operates in the U.S.

Maybe we can take a step back to look into a few things. Firstly, it’s important to understand the context of Gensler’s statement. As mentioned earlier, Gensler reiterated the SEC’s stance in an interview with CNBC in July 2022 that Bitcoin is not a security but a commodity that falls under the Commodity Futures Trading Commission’s jurisdiction. He did not label other digital assets, avoiding answering the question directly. However, in a tweet by Jake Chervinsky in February 2023, it was suggested that Gensler may have prejudged that every digital asset aside from Bitcoin is a security.

Then my question is: What exactly is a security? In the US, the Securities Act of 1933 defines a security as any investment contract, note, stock, or any other type of investment in a common enterprise with the expectation of profits solely from the efforts of others. In simpler terms, it means an asset representing an ownership interest or a right to receive future profits or cash flows from a third party.

Suppose we consider Gensler’s statement that everything other than Bitcoin is a security. In that case, it implies that most digital assets such as Ethereum, XRP, and other cryptocurrencies would be considered securities under US law. This means that they would be subject to SEC regulations and oversight. It’s worth noting that this is not a new position for the SEC. For years, the SEC has warned cryptocurrency companies that their tokens could be classified as securities if they meet certain criteria.

The implications of this classification are significant. If a digital asset is classified as a security, the issuer must comply with SEC regulations, including registration and disclosure requirements. It would also have to follow strict trading, reporting, and investor protection rules. Additionally, investors would be protected under federal securities laws, which could increase their confidence in the digital asset market. However, it could also lead to additional costs and regulatory burdens for the companies issuing digital assets.

My opinion on this matter is that while Gensler’s statement may have been perceived as a blanket statement, the SEC’s approach to regulating cryptocurrencies is nuanced and fact-specific. The SEC has been clear that it will evaluate each token on a case-by-case basis to determine whether it meets the legal definition of a security. In other words, just because a digital asset is not Bitcoin does not automatically mean it’s a security.

Furthermore, regulatory oversight is necessary for the cryptocurrency market to mature and gain mainstream adoption. The lack of clear regulations has been a major roadblock for institutional investors, who are hesitant to invest in a market perceived as unregulated and risky. Clear regulations would also protect retail investors who may not have the knowledge or resources to navigate the complex world of cryptocurrencies.

To conclude, while Gensler’s statement that “everything other than Bitcoin” is a security may have caused some alarm in the cryptocurrency community, we believe that it’s important to view it in the context of the SEC’s broader approach to regulating digital assets. The SEC’s focus on investor protection and market integrity is crucial for the long-term success of the cryptocurrency market.

As the market continues to evolve, we expect that the SEC’s approach will continue to evolve, and we look forward to seeing how it develops. Meanwhile, I hope SEC can be more precise and take a more responsible stance when putting statements out in the market.

 

Source: https://cryptoslate.com/sec-chair-gensler-confirms-everything-other-than-bitcoin-is-a-security-implications-and-analysis/

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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- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. 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.

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”.

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The Future starts Tomorrow – Everything about NFT, Metaverse and Web3

The Future starts Tomorrow – Everything about NFT, Metaverse and Web3

NFTs (Non-Fungible Tokens) are unique digital assets that use blockchain technology to prove their ownership and authenticity. NFTs can represent a wide range of digital content such as images, videos, audio files, virtual real estate, and more. They cannot be duplicated or divided, as each NFT is unique and represents a one-of-a-kind item.

The metaverse refers to a virtual universe or a collective space where users can interact with each other and with virtual objects, often in the form of computer-generated graphics and simulations. The metaverse is often seen as a decentralized and immersive alternative to the traditional internet, and NFTs play a crucial role in representing and transferring ownership of virtual assets within it.

Web3 refers to the next generation of the internet, where users have more control over their data and online identity. Web3 technologies, such as blockchain, aim to create a more decentralized, secure, and user-centric internet, where users can interact and transact without intermediaries. The metaverse is often seen as a crucial component of the web3 vision, as it provides a space for users to interact and transact using Web3 technologies.

I have mentioned the following during the event:

In 2023, there are several financial trends and challenges that people should pay attention to:

Interest rates: Interest rates are likely to remain low, which could have an impact on investments and the housing market. Defi could come back in the later part of the year as a form of hedge to the high interest rate.

Inflation: With the ongoing global economic recovery and increasing demand for goods and services, there is the potential for inflation to rise, which could affect the purchasing power of consumers.

Digital currencies: Digital currencies, such as Bitcoin and Ethereum, are likely to continue to gain popularity, and they may pose both risks and opportunities for investors. It’s important to understand the technology and the market before investing thoroughly. On the one hand, cryptocurrencies are often seen as a hedge against inflation, as they are decentralized and not controlled by a central authority. In times of high inflation, some investors may see cryptocurrencies as a safe haven for their wealth, which can drive up demand and increase the value of cryptocurrencies.

Environmental, Social, and Governance (ESG) Investing: ESG investing is becoming increasingly popular as people become more conscious of the impact their investments are having on the environment and society. This trend is likely to continue in 2023, and there will be opportunities for investors to put their money into companies that align with their values. We may see “green bitcoins” as a popular thing, or crypto with renewable/ alternative properties would be popular.

Emerging markets: Emerging markets eg Kenya, for example. are likely to present significant investment opportunities in 2023, particularly in areas such as technology, infrastructure, and consumer goods. I see gaming and the metaverse a big thing in emerging markets.

It’s important to keep in mind that these trends and challenges are subject to change based on global economic and political events, and it’s essential to consult with a financial advisor and thoroughly conduct research before making any investment decisions.

More insights can be found on the recording.

 

This event was organise on 4th Feb. 2023 21:00pm SGT (17:00pm Dubai Local Time)

Hosted by:

Tomorrow Conference (https://twitter.com/tmrwconf) and
Blockcast.cc (https://twitter.com/Blockcastcc)

Co-Host:

Bybit NFT (https://twitter.com/Bybit_NFT)
Bybit Web 3(https://twitter.com/Bybit_Web3)
Bybit MENA (https://twitter.com/BybitArabic)

Moderator:
Scott Tripp, Marketing Lead of Blockcast.cc

Guests:

Sam Aly, Country manager of Bybit MENA Region
Zoran Tadic, Program director of TMRW Conference
Martina Andjelkovic, Head of marketing of TMRW Conference
Jenny Zheng, BD Lead of Bybit web3
Dr. Ran, ETHF Core Member
Anndy Lian, Book Author of NFT: From Zero to Hero

 

 

To conclude, NFTs, metaverse, and web3 are interconnected concepts that together represent a vision for a decentralized, immersive, and user-centric digital world where ownership, authenticity, and interaction can be managed in new ways.

Listen to the event on Spotify: https://open.spotify.com/episode/7IeL6eHqNaruFjD1RPbUlJ

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- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. 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.

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”.

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