Connect with us

FEATURED

Is Bitcoin the Digital Gold?

Published

on

What the humans of this world use as a means of exchange has evolved over time. I would have explained the history of money but that would take a whole different article. It is no news that gold has played a significant role in the global financial system. There was a time when most regions in the world operated the gold standard. The essence of the gold standard is a fiscal system where a country’s fiat currency is backed by what Robert Kiyosaki would call “God’s Money”, i.e. gold. For several years, the value of a dollar was fixed to a specific ounce of gold. This ended in 1971 when President Nixon tossed the gold standard aside. 

It is visible even to the blind that the times have changed.  Although it is not common for people to use gold as the ordinary means of exchange, it is still used for jewelries and the likes. Every now and then, we see celebrities flaunting their gold teeth. Others use it as a store of wealth etc. 

Regardless of whatever age bracket or generation you make up i.e. (baby boomer, Generation X, millennial or Generation Z), you must have heard of gold even if you have not had one. To this end, gold proves to have stood the test of time, when it comes to its value.

So now, what about Bitcoin?

source: Steemit

The creative humans of this world sat down to invent a new way of transacting within a system that is independent of any central agency or government. So in 2008, Bitcoin was invented by an unknown Satoshi Nakamoto. The digital currency is a decentralized currency, one of the many applications of blockchain technology which powers it. 

Very expectedly, Bitcoin was initially worth next to nothing when it started, but the value of the Bitcoin grew over time and today, one bitcoin is equivalent to over $9000, that is over 4 million Naira.   Unfortunately, Bitcoin happens to be a very volatile asset although its profitability is not a contentious matter.

In a lot of words, like gold, bitcoin is here to stay.

Now let us compare and contrast the two assets. The only way bitcoin can serve as the digital gold is if it can offer the same value as gold. 

source: unlock-bc.com

But the real question is, can we really compare the two?

Bitcoin checks off the first gold attribute, i.e. rarity. They are both scarce commodities.  Now, both bitcoin and gold are viable means of exchange. That means that you can use both gold and bitcoin to buy products and pay for rendered services.

One important feature of money is divisibility, for ease of use. Both gold and Bitcoin can be divided to smaller units of ½ ounces or 1 satoshi etc. respectively.

Another significant feature that both assets tick is the “Store of value” attribute. Although both assets can be used as security for wealth during economic downturns, Bitcoin is relatively less reliable because of its volatile nature.

A host of people have argued that Bitcoin is not tangible. Whether this is relevant in the long run remains controversial seeing as Bitcoin is backed by a secure technology of trust, dubbed Blockchain.

source: unsplash.com

The Corona virus induced pandemic and the resultant economic downturn of events pushed the world to navigate new ways of solving problems digitally and this has positively impacted the crypto space among others. Although Bitcoin skeptics have hammered that Bitcoin cannot serve as the digital gold, this is far from being the reality as Bitcoin and other Cryptocurrencies are fast gaining acceptance as a viable means of exchange the world over. Bloomberg reported this year in its Bitcoin to Be Digital Gold report in 2020 that:

 “Increasing futures open interest, declining volatility, and relative outperformance despite the stock-market shakeout indicates bitcoin is maturing from a speculative crypto asset toward a digital version of gold” 

 It is expected that Bitcoin will mature into a gold-like store of value even this year. 

“This year marks a key test for bitcoin’s transition toward a quasi-currency like gold, and we expect it to pass,” the Bloomberg Report continued.

Although, the pandemic has caused an enduring plunge in the value of a number of cryptocurrencies, the Bitcoin is believed to be a hedge asset. This means that like gold, it will increase in value. 

Also according to the Bloomberg Report, “The macroeconomic effects of the coronavirus accelerate bitcoin’s process of gaining value relative to other cryptos.” 

Just in 2020, Bitcoin surpassed the Bloomberg Galaxy Crypto Index, increasing 40% as against 13% decline in the index.

From the look of things, a number of skeptics may have to grab their sunshades as the future of the Bitcoin looks bright, it may hurt their eyes.

Advertisement
Comments

FEATURED

Dapper Labs raises $12M from Blockchain firms and NBA players

Published

on


Dapper Labs Says it has raised $12 million from its latest investors for its flow blockchain. Dapper Labs are the masterminds behind the CryptoKitties and the NBA Top Shot project. Pro NBA players as well as notable blockchain companies were part of the investors that raised the $12 million fund.

The NBA players Andre Iguodala of Miami Heat, Spencer Dinwiddlie and Garrett Temple of the Brooklyn nets, JaVale McGee of Los Angeles Lakers, and Aaron Gordon of the Orlando magic were one of the new investors. Coinbase ventures and BlackTower capital were as well part of the investors.


Dapper Labs has now raised an approximate of $38 million dollars all together. Roham Gharegozlou, Dapper’s founder and Chief Executive officer has said that the funds secured will be monitored to make “sure Flow can scale to the size of projects appealing to fan bases as big as NBA.”

$1.2M in token sales
Dapper also stated that it has sold crypto-collectibles worth $1.2 million dollars to a number of early users on the two-month old experimental version of its NBA Top Shot platform. Top Shot players can buy non-fungible tokens (NFTs) used to depict certain moments in basketball history. Over 22,000 packs of these NFTs worth $1.2 million dollars have been sold on the beta platform.


Each NFT token represent a significant moment and they offer players an experience to see data and videos that each token depicts in multimedia form.


The CEO, Roham noted Flow blockchain can host tokens that feature 3DI animation. He stated it was built to ensure any of the token (NFT) has access to topnotch environments wile talking to Cointelegraph – “to make sure that any NFT has a chance to be able to access a high-throughput environment, have people build applications for them, [and] scale to billions of users”.

Notable raise in Blockchain gaming firms
Blockchaingamer.biz data together with the recent fund raise of Dapper, a total whooping sum of $550 million dollars have been raised by Crypto gaming firms. This total comes from $336 million in sale of tokens, Initial Coin offerings (ICOs), $189 million from stocks and capital offerings in form of traditional investments and other fundraising techniques.


Last month, about $18 million was raised in total. Sorare, a fantansy soccer game raised $4 million in seed fund raise and Animoca Brands got $4.1 million from specific investors. DMarket was able to raise $6.5 million in June. Other companies like Horizen Blockchain Games and SuperTree raised $5 million and $2.5 million respectively in the first quarter of the year.


However, CEO of Animoca, Yat Siu has said the $550 million mark is just the inception as it is quite small compared to the current worth of gaming which is a $150 billion industry. He said while speaking to cointelegraph – “Gaming today is a $150 million industry and $500 million invested today is still a small amount, given both the potential in games as well as, we belive, the most viable path to mass adoption of blockchain, we think this will only grow more significantly”.

Continue Reading

FEATURED

Japan’s FSA Commissioner advises to develop Digital currency

Published

on


One of the Japan’s high-ranked financial regulators, Ryozo Himino, advised the nation to develop a Central Bank Digital Currency according to Reuters report. The pandemic might make states of the world adopt digital currency economy. Himino noted that Japan should have a plan to create a digital currency first before worrying about challenges that a digital currency might encounter.

He stated that Japan should weigh the benefits and demerits of a digital currency issued by the government and make sure all essentials for building a CBDC are available when it’s time to develop one-


“in the end, Japan must think really hard about whether to issue CBDCs because there are merits and demerits in doing so”.


It was said that Coinfomania reported last year that research on digital currency has started in Japan. A group of researchers from Apex bank were said to have released a paper on the benefits and shortcomings of issuing a CBDC according to the report.


The commissioner stated that the country’s stance on making cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) illegal might backfire on technical innovation –


“Deregulating bitcoins and other cryptocurrencies may not necessarily promote technical innovation. If doing so simply increases speculative trading, we are not taking special steps to promote cryptocurrencies”.


The effect of the Covid-19 pandemic has seen to financial institutions globally finding solutions to ease the economic wreck. Research are being made also to cushion any economic problems that might arise in the future.


Himino has a track record of heading different notable financial organizations globally including the Basel Community on Banking Supervision and Japan’s Financial Service Agency. He is currently the Japan’s Financial Service Agency Commissioner. He was also the secretary-General of the Basel committee on Banking Supervision.

Continue Reading

FEATURED

Japan’s FSA Commissioner advises to develop Digital currency

Published

on


One of the Japan’s high-ranked financial regulators, Ryozo Himino, advised the nation to develop a Central Bank Digital Currency according to Reuters report. The pandemic might make states of the world adopt digital currency economy. Himino noted that Japan should have a plan to create a digital currency first before worrying about challenges that a digital currency might encounter.

He stated that Japan should weigh the benefits and demerits of a digital currency issued by the government and make sure all essentials for building a CBDC are available when it’s time to develop one-


“in the end, Japan must think really hard about whether to issue CBDCs because there are merits and demerits in doing so”.


It was said that Coinfomania reported last year that research on digital currency has started in Japan. A group of researchers from Apex bank were said to have released a paper on the benefits and shortcomings of issuing a CBDC according to the report.


The commissioner stated that the country’s stance on making cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) illegal might backfire on technical innovation –


“Deregulating bitcoins and other cryptocurrencies may not necessarily promote technical innovation. If doing so simply increases speculative trading, we are not taking special steps to promote cryptocurrencies”.


The effect of the Covid-19 pandemic has seen to financial institutions globally finding solutions to ease the economic wreck. Research are being made also to cushion any economic problems that might arise in the future.


Himino has a track record of heading different notable financial organizations globally including the Basel Community on Banking Supervision and Japan’s Financial Service Agency. He is currently the Japan’s Financial Service Agency Commissioner. He was also the secretary-General of the Basel committee on Banking Supervision.

Continue Reading

FEATURED

Millennials Opt for Tech Securities while Generation X Investors Go for Gold

Published

on

JPMorgan Chase & Co. discovered interesting distinctions in trading patterns between two markedly different generations. It appears that the older generation X Investors would rather go for less volatile securities like bonds while millennials or the generation Y explore tech securities like Bitcoin, Ethereum and other digital assets.

The pandemic induced lockdown revealed the behavioral pattern of investors across different generations and age groups although leaving a few exceptions. The lockdown showed that investors are seeing the need for substitute securities. A team of strategists led by Nikolaos Panigirtzoglou discovered that while the younger investors are exploring the world of Bitcoin and other Altcoins,the older generations are purchasing gold.

It appears that the Generation Y is crazy about tech shares by buying into testnets and what have you, whereas the older investors are still very much on selling traditional equities.

The strategists stressed in an Investment Analysis Report on August 4 that:

“The older cohorts continued to deploy their excess liquidity into bond funds, the buying of which remained strong during both June and July,” 

A 46% global surge in stocks shows an increased retail investor demand this year. This is a sharp contrast against March’s lows. 

The global gold-backed exchange-traded funds is experiencing a positive turn of events. The Blockchain space is also undergoing  augmented rallies in cryptocurrencies due to the activities of enthusiastic Millennial investors. Many of these investors understandably show amateurish moves in trading which is obvious in their smoothed trading choices and increasingly volatile  options.

Nevertheless,  Bitcoin has been compared and contrasted with gold. The team of strategists made a point of highlighting that both the older and younger generation understand that there’s a gradual shift to alternative “currency” and this has impacted positively in investments in Gold and Bitcoin Exchange Traded Fund over the last 5 months. Meanwhile the Dollar appears to be going south as the Bloomberg Dollar Spot Index has plunged by approximately 1.7% over the same 5 months. This has instigated controversies as to whether the Dollar is going to experience a continual downturn.

Continue Reading

Watch

Find Us

Address: 7 Kafi Street, Beside City Mall, Shoprite, Alausa, Ikeja, Lagos.

Hours: Monday—Friday: 9:00am–5:00pm

Contact: +234 817 866 6900

Trending

Copyright © 2020 CryptoTVPlus. Powered by Ma Media