Sainu, CEO, BlockChain Expert UK & Dominik Stroukal, Chief Economist, Roklen are technologies that form the basis of bitcoins and other cryptocurrencies. Chief Economist of the Roklen Group, former director of the Liberal Institute, Bitcoin: peníze budoucnosti: historie a ekonomie kryptoměn, stručná příručka pro. Dominik Stroukal Co-Founder bit agency, Chief Economist at Roklen. Gabriel Dusil Co-Founder & General Manager Adel Ecosystem. Dimitrios Psarrakis.
Bitcoin and ether strengthened. 5 reasons why cryptocurrencies grow
The weakening dollar and the macroeconomic situation
Cryptocurrencies have risen in the appreciation of the price of gold due to the weakening of the world reserve currency. The unprecedented pumping of money into the economies of developed countries raises fears of inflation, which affects gold, but also digital currencies. Bloomberg analyst Mike McGlone has long predicted that bitcoin and gold will be the clear winners of the coronavirus crisis due to their limited number.
In the case of virtual currency, its moment is said to still occur at the end of the year. However, the risks cannot be neglected – if the stock markets were to fall sharply due to the coronation crisis, according to Roklen Group chief economist Dominika Stroukal, their decline could also affect bitcoin. Many speculators still see bitcoin as a risky investment.
Rise of ether and DeFi
While the total market value of all ether coins in circulation is one-fifth that of bitcoins, the volume of ethers traded on cryptocurrency exchanges does not correspond to such a ratio.
As she pointed out analysis TheBlock, the value of ethers sold and purchased is half that of traded bitcoins. Ether is an important part of the growing trend of so-called decentralized finance (DeFi). “This year belongs to DeFi,” says Rockaway Blockchain Fund chief Viktor Fischer.
The event from the first half of May cannot be missed. Less than three months ago, the number of newly generated bitcoins halved.
A reduction in the supply of cryptocurrency should in itself, at plus or minus the same demand, lead to an increase in the price of bitcoin, but this did not occur until several months later in the previous two halves. It was as if history was beginning to repeat itself now.
Affection of regulators
At the end of July, the US regulator allowed the local banks to store and manage their clients’ digital coins. Although for bitcoin holders et al. most advantageous to manage your cryptoportfolio exclusively on your own, according to the server Cointelegraph represents such a step in reaching another milestone in the possible adoption of digital currencies.
However, an immediate increase in demand for similar services cannot be expected at this stage.
View of Visa and central banks
A message in a similar vein recently came from the Visa card company. She announced on the blog that she is exploring the possibilities of using blockchain and digital currencies to improve the functioning of her services.
According to her, virtual coins have the potential to make digital payments accessible to a wider range of people. Similar ambitions are not hidden by the world’s central banks. China’s central bank, the US Fed and the ECB are developing or at least thinking about their own virtual currency.