Connect with us

Uncategorized

Is Bitcoin Here to Stay?

Published

on

Is Bitcoin Here to Stay?

Decided BTC is a good investment? You can get BTC on eToro today.

Bitcoin is the first cryptocurrency of its kind and widely referred to as the flagship coin of the cryptocurrency space. For this reason, all other cryptocurrencies are collectively referred to as altcoins. 

However, as the convergence between the digital and physical world continues to unfold, more cryptocurrencies and types of digital assets are emerging. The following discussion will investigate if Bitcoin can survive in the long run and stay relevant as the cryptocurrency industry continues to evolve. 

Advertisement

Is Bitcoin Here to Stay or Just a Fad?

The cornerstone narrative in the cryptocurrency community is the provision of decentralized financial (DeFi) systems. In terms of this narrative, Bitcoin is the undisputed gold standard. Bitcoin is a new financial system that can’t be controlled or manipulated by politics or human greed — a fair and transparent money for a divided world. It isn’t designed for buying coffee; it’s designed to be the next global reserve currency. 

In technical terms, Bitcoin is the most decentralized cryptocurrency in the world, and the largest cryptocurrency by market capitalization. Moreover, Bitcoin is the only leading cryptocurrency that has an anonymous creator, had pure organic growth and been tested multiple times, which has resulted in it being the most meritocratic cryptocurrency on the market.

In short, Bitcoin is extremely unique. The biggest difference with Bitcoin and other cryptocurrencies is what Bitcoin stands for in terms of shifting the power away from a few to as many people as possible.

What Is Bitcoin?

Bitcoin is a Layer 1 blockchain, a type of project that represents the base network or underlying infrastructure in a blockchain-based financial system. Layer 1 blockchains can finalize and validate transactions without the help of another network. They also have their own native token, which is used to pay for transaction fees. 

Advertisement

Bitcoin is a form of digital currency and used by many as a speculative store of value. It is decentralized, meaning that no central authority controls it. Instead, Bitcoin is run by thousands of computers distributed around the world. Despite not being accepted as legal tender in most of the world, Bitcoin is popular because it can’t be censored, has a finite supply of 21 million and allows transactions to be made by anyone, at any time and from anywhere.

Like most cryptocurrencies, Bitcoin is supported by a technology known as a blockchain — a decentralized, distributed ledger that records the provenance of a digital asset. The blockchain secures cryptocurrency transactions by creating incentives to make tampering unprofitable for malicious users. The implication is that ownership of crypto is held probabilistically through trustless enforcement, as opposed to certainty. 

From an investment standpoint, the closest thing that Bitcoin can be compared to is digital gold. Bitcoin can be considered as a speculative super commodity, with a value proposition based on it being a perfectly scarce, portable, immutable and divisible savings technology. 

These factors mean that Bitcoin can stay largely unaffected by factors that could affect its value such as  inflation, seigniorage and failing monetary policy. Bitcoin does not rely on a central bank; instead, it is managed by programmed algorithms that are governed in a decentralized and democratic manner. 

Advertisement

BTC History

Bitcoin was developed out of the turmoil of the 2008 Great Recession as distrust of centralized financial institutions grew. An individual or group of people going by the name Satoshi Nakamoto issued a whitepaper to address the centralized control of money and the required trust that citizens place in the hands of centralized authorities.

The purpose of Bitcoin was to bypass the middleman in financial transactions, reducing costs,  improving efficiency and increasing financial accessibility.

On January 3, 2009, the Bitcoin blockchain was launched when the first block, widely referred to as the genesis block, was mined. For the first few months, Bitcoin had no real monetary value. However, about a year later, the first economic transaction took place when a man from Florida negotiated to have two Papa John’s pizzas, valued at $25, delivered for 10,000 Bitcoin on May 22, 2010. This act established the first initial real-world price of Bitcoin (BTC) at 4 Bitcoins per cent.

Fast forward today, and that amount of Bitcoin is valued at nearly $400 million. This iconic day is referred to as Bitcoin Pizza Day (May 22) by cryptocurrency fans all over the world. Since first becoming available on exchanges in 2010, BTC is now listed on over 600 exchanges worldwide. 

Advertisement

Pros and Cons of Bitcoin

Despite Bitcoin’s sterling reputation in the cryptocurrency space, Bitcoin too shares its mix of strengths and weaknesses compared to other cryptocurrencies.

Pros

  • Most decentralized cryptocurrency
  • Strong reputation, concrete aim and global recognition
  • Higher level of trust and stability than many other cryptocurrencies

Cons

  • Proof-of-work (PoW) mining process not eco-friendly
  • Serious scalability issues

BTC Competition

As a Layer 1 blockchain, Bitcoin’s biggest competitors are other Layer 1 blockchains such as Ethereum. All competitors aim to solve the blockchain trilemma (scalability, security and decentralization) more effectively than Bitcoin. Nonetheless, while Bitcoin is the most decentralized blockchain, Bitcoin is easily surpassed by competitors in terms of functionality and scalability.

Bitcoin’s biggest competitor is Ethereum, the second biggest cryptocurrency by market capitalization. You can think of Ethereum as a public shared global computer network. It doesn’t run on a single device but instead runs simultaneously on thousands of devices around the world. People around the globe contribute their computer’s computing power to the network and are paid for doing so. 

Unlike Bitcoin, the Ethereum blockchain enables developers to create and launch decentralized applications (dApps) and is faster than Bitcoin. This goal is achieved by using smart contracts, allowing users to interact and develop dApps that cannot be censored or shut down. For this reason, Ethereum is commonly referred to as a decentralized computing platform or a decentralized internet. 

In addition to Ethereum, other competitors include Solana, Cardano and Polkadot, all of which aim to differentiate from other Layer 1s by addressing the blockchain dilemma in a more effective manner. 

Advertisement

How to Make Money With Bitcoin

Aside from buying BTC at one price and selling at a higher price, you can make money with BTC through interest-earning platforms such as Coinbase.

However, it is important to note that you cannot earn BTC from staking because Bitcoin doesn’t use a proof-of-stake (PoS) consensus mechanism like Layer 1 blockchains such as Ethereum or Cardano. 

How to Buy Bitcoin (BTC)

get started securely through eToro’s website

Advertisement

Disclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.

1 Minute Review

Advertisement

eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since 2007. A major eToro plus is its social trading operations, including OpenBook, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features

Best For

  • U.S. based cryptocurrency traders
  • Investors looking to CopyTrade other traders
  • Simple user interface

Pros

  • Several major cryptocurrencies and altcoins
  • Expansive network of social trading features
  • Large client base for new traders to imitate

Cons

  • Only 29 coins available
Advertisement
Advertisement

BTC can be traded on major exchanges such as Coinbase Global Inc. (NASDAQ: COIN), Gemini, Crypto.com and eToro. Many of these platforms allow you to purchase Bitcoin using your credit card, through swapping features or through different trading pairs such as BTC/USDT. 

Is Bitcoin Here to Stay?

Bottom line, Bitcoin is the longest-standing cryptocurrency, with an untouchable value proposition and fundamentals that suggest that it is the most meritocratic cryptocurrency in the world. Moreover, Bitcoin has a unique network effect from being the first cryptocurrency created of its kind, making it less susceptible to being easily replaced and the first point of contact newbies have with the cryptocurrency industry.

To reiterate, all other cryptocurrencies are called altcoins, and for good reason. Bitcoin is truly one of a kind, and is the epitome of what the cryptocurrency movement stands for.

Advertisement

analysis group

Report: The Metaverse Might Contribute $320 Billion To Latam’s GDP In The Next 10 Years

Published

on

Report: The Metaverse Might Contribute $320 Billion To Latam’s GDP In The Next 10 Years

A new report indicates that the metaverse might be a significant factor in the growth of economies in Latam and the world in the coming decade. The study, issued by Analysis Group, estimates that Latam might benefit from a surge of $320 billion or an approximate 5% of its GDP, in the next 10 years. This is the biggest percentage share of GDP of the regions in the study’s projection.

Advertisement

Analysis Group’s Metaverse Report

The metaverse is becoming a subject of intense focus in crypto and business at large, and many companies are already projecting the impact that it might have in several countries and areas in the future. In a recent report titled “The Potential Global Economic Impact of the Metaverse” issued by international economic consulting firm Analysis Group, the opportunities that the emergence of the metaverse could open in the next ten years are examined, assuming “adoption begins in 2022.”.

In the document, the researchers compare the rise of the metaverse with mobile technologies and examine the growth as if this new technology were to evolve in a similar way. This industry was selected “because of similarities to the metaverse in the way it combined existing and nascent innovations to fundamentally alter global technological and economic landscapes.”

Advertisement

Major Latam Growth and GDP Estimates

According to the report, the metaverse and its related activities have the potential of representing 5% of the GDP of Latam in the tenth year after adoption begins (2022), contributing $320 billion to the economies of the area. The report also projects that the growth in Latam will be the biggest percentage-wise, while the APAC region would have the biggest growth volume-wise, representing more than $1 trillion of its GDP.

Advertisement

Globally, the study estimates that the metaverse will generate $3.01 trillion, becoming more than 2% of the GDP of the world ten years from now. Per the report, this growth will only happen if the sector reaches its expected potential, having “far-reaching applications, with the potential to transform a wide range of economic sectors such as education, health care, manufacturing, job training, communications, entertainment, and retail.”

Other companies have also predicted the possible impact of this new activity and the economic opportunity it will present for different industries in the future. Grayscale, one of the leading cryptocurrency asset managers, estimated that the metaverse might become a $1 trillion business opportunity in the future. Goldman Sachs also predicts the metaverse will be an $8 trillion opportunity. JPMorgan has stated that this $1 trillion market “will likely infiltrate every sector.”

Advertisement

What do you think about Analysis Group’s metaverse report? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Advertisement

Advertisement

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Advertisement
Continue Reading

Argentina

Argentinian Cryptocurrency Exchange Buenbit Announces Staff Layoffs

Published

on

Argentinian Cryptocurrency Exchange Buenbit Announces Staff Layoffs

Buenbit, an Argentinian cryptocurrency exchange, has announced a series of layoffs due to the downturn that traditional and crypto markets are currently facing. Buenbit’s co-founder and CEO, Federico Ogue, clarified that this move had nothing to do with the recent Terra ecosystem disaster and that from now on, the exchange would focus on keeping operations in countries where it already has an established presence.

Advertisement

Buenbit Announces Layoffs

Buenbit, an Argentinian cryptocurrency exchange, has announced a change in its hiring strategy due to the recent downturn that the cryptocurrency and stock markets are facing. According to some reports, the company will be laying off almost half of its current workforce across the three countries where it operates, including some senior executives.

Federico Ogue, co-founder and CEO of the exchange, stated on social media that these changes were the consequence of the tech industry facing a review phase. Ogue stated:

Advertisement

Given this new context, we decided to reduce our staff and pause our expansion plan to focus exclusively on operations in the countries where we are present today and maintain a self-sustaining and efficient structure.

Advertisement

Furthermore, Ogue revealed that this move had nothing to do with the recent collapse of the Terra ecosystem, even though the exchange did offer Terra-related services as part of its investment portfolio. “It is a decision that we have been working on for months. It is an adjustment that is taking place throughout the startup industry,” he explained.

Expansion Plans Halted

This new strategy ends the expansion plans the company had revealed during its Series A financing round, which raised $11 million for this goal in July 2021. The company announced that its focus will be to maintain the same quality of operations in countries where it is already present.

Advertisement

The company stated this was a proactive response to an upcoming problem, “in order to avoid, in the near future, the unnecessary exposure of the company to the dependence of raising a next round of investment, when the market numbers indicate that this is not the correct strategy to follow in the current context.”

Other exchanges have also announced changes in their hiring strategies due to the new direction of the global economic markets. Coinbase, a U.S.-based cryptocurrency exchange, recently noted it would slow down its hiring process to be in a better position during and after the current market downturn.

Advertisement

What do you think about the layoffs announced by Buenbit? Tell us in the comments section below.

Advertisement
Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Advertisement

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Advertisement
Continue Reading

Central Bank

ECB Survey Finds 10% Of Eurozone Households Own Crypto Assets

Published

on

ECB Survey Finds 10% Of Eurozone Households Own Crypto Assets

One in every 10 households in six eurozone countries has acquired cryptocurrencies, the European Central Bank (ECB) has found with a new survey. While the richest are most likely to own crypto assets, poor families are not far behind, the poll indicates.

Dutch Households Lead in Terms of Crypto Ownership, ECB Survey Shows

Every tenth eurozone household has purchased bitcoin or other cryptocurrencies, according to the latest Consumer Expectations Survey conducted by the European Central Bank (ECB). Europe’s financial authorities are now trying to establish if the crypto market downturn could affect household budgets, Reuters reported.

Advertisement

The results from the latest edition of the monthly poll were announced Tuesday. The study reveals that an average of 10% of the households in six participating eurozone countries hold crypto assets. Among them, the Netherlands had the largest proportion of crypto owners at 14% while France ranked last with just 6%.

Some 37% of the respondents said they were holding up to 999 euros worth of cryptocurrency (approx. $1,070 at the time of writing), the monetary authority detailed, and 29% had between 1,000 euros and 4,999 euros. Another 13% owned between 5,000 euros and 9,999 euros. The balance had invested more than that, the report unveils.

Across these nations – Belgium, France, Germany, Italy, the Netherlands, and Spain – the richest 20% of the polled were most likely to own cryptocurrencies. At the same time, a greater proportion of lower-income households hold digital assets than the segment between the two groups.

The authors of the survey have also noted that young adult males and highly educated people were more inclined to invest in crypto. “With regard to financial literacy, respondents who scored either at the top level or the bottom level in terms of financial literacy scores were highly likely to hold crypto assets,” the ECB pointed out.

Advertisement

The eurozone’s central bank didn’t miss the opportunity to reiterate its stance that cryptocurrencies are unsuitable for retail investors. The regulator also called on EU authorities to urgently approve new rules for crypto assets in the 27-member bloc. The data has been published as part of ECB’s Financial Stability Review as European legislators are working to finalize the Markets in Crypto Assets (MiCA) legislation.

Tags in this story

Central Bank, Consumers, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, data, ECB, EU, European Union, Eurozone, Expectations, households, Legislation, Poll, Regulation, study, Survey

What do you think about the findings in the ECB’s Consumer Expectations Survey? Tell us in the comments section below.

Advertisement
Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Advertisement

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Advertisement
Continue Reading

Trending