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, Mass adoption of cryptocurrencies: the keys to the phenomenon, Forex-News, Forex-News
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Mass adoption of cryptocurrencies: the keys to the phenomenon

, Mass adoption of cryptocurrencies: the keys to the phenomenon, Forex-News, Forex-News

, Mass adoption of cryptocurrencies: the keys to the phenomenon, Forex-News, Forex-News

Binance, the global blockchain company that owns the world’s largest digital asset exchange, with more than 15 million users and a daily transaction volume of more than $ 3,000,000,000, analyzes the keys to the growing adoption of crypto assets.

“Bitcoin is breaking all-time highs on a regular basis and so quickly that by the time we have released new communications, we are likely to be immediately out of date. To overcome this, we must choose important milestones that will be relevant for longer periods of time, ”says Changpeng Zhao (CZ), CEO of Binance.

“12 months ago, in February 2020, a Bitcoin would have cost you USD 9,844 (daily average). In that time, it has shot up 408% and its value has doubled in the last 7 weeks since Christmas, “he adds.

Bitcoin interest increases

“After a period of consolidation from its previous all-time high in January, we have seen strong retail interest in Bitcoin after Elon Musk’s Tesla announced a $ 1.5 billion investment in the cryptocurrency. Since BTC has entered a new bull cycle, it is once again in price discovery and will likely try to find new levels of support and resistance.

«I do not give investment advice, as nobody knows where the market will go in the short term, but always I am long-term bullish on the value of Bitcoin as a store of value versus fiat currencies and their potential to change the world for the better. In the meantime, if you get text messages from your mother asking about Bitcoin, you will know that something good is happening, “he concludes.

Since its inception in 2009, Bitcoin has become the star of the cryptocurrency segment, going from being a niche asset to playing in the big leagues of the financial market.

According to the latest GlassNode report, during 2020 and early 2021 almost 21 million active Bitcoin wallets were registered, a number that had not been registered since the last bullish rally in December 2017, putting Bitcoin and its role in the economy at the center of the conversation in specialized circles.

Although since the end of 2020 an expectation was already beginning to be generated around the growth of Bitcoin and what the future could be for this cryptoactive, the first weeks of 2021 have registered even greater surprises in the market: the recent acquisition of 1,500 million of BTC dollars by Tesla and its founder Elon Musk, sheds light on a greater institutional interest towards the digital asset, which directly influenced a new ATH (All Time High) and encourages the search for new levels of support for its value.

What is driving the rise of Bitcoin according to CZ?

According to CZ, an important factor to understand the increase in the price of Bitcoin as a commodity and currency has been the so-called quantitative expansion, which is understood as a monetary policy tool that allows increasing the availability of money from a Central Bank Through investment in bonds or stocks, a practice that became popular during the Covid-19 health crisis, and which has the effect of increasing the circulating money supply, which results in a decrease in the value of the traditional currency or FIAT.

On the other hand, an element that has played a key role in this phenomenon has been the institutional popularization of cryptocurrencies, which has resulted in the increase in market capital and the possible future escalation of the price of Bitcoin.

Today, the market capital of crypto assets has reached $ 1,678,016 million dollars, causing what until not so long ago was a futuristic exercise, today is a reality that is changing the rules of the game in the financial market, generating a virtuous circle of trust from institutions and retail investors who increasingly choose to invest in these assets.

Tokenization, another of the key factors

Another factor to consider is that the tokenization of physical assets is increasingly common in the crypto world and behind it is also one of the key elements of the phenomenon.

In cryptography, this digital representation is known as NFT, (for the acronym in English for «non-fungible token») Considered a unique asset -whether digital or physical- whose qualities of being of limited issuance and irreplicable result in the increase of its value.

Fungibility is a fundamental characteristic for any asset that claims to act as a medium of exchange, and it translates into the individual units of an asset being interchangeable and indistinguishable from each other, just like traditional money.

It is highly probable that during this year new keys will continue to emerge for this growing market. The industry is continuously observing what are the factors and elements that contribute to this transition from the niche to the mass market.

, Mass adoption of cryptocurrencies: the keys to the phenomenon, Forex-News, Forex-News

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, Mass adoption of cryptocurrencies: the keys to the phenomenon, Forex-News, Forex-News

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