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Cryptocurrencies Are Here To Stay, Here’s Why

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randerson112358

Cryptocurrencies are here to stay for the foreseeable future

In this article, I will try my best to articulate my thoughts on why cryptocurrencies may be here to stay, at least for the foreseeable future. A lot has happened within the crypto world, many people would not have believed that Bitcoin (which was launched in 2009) would still be around today, especially at it’s current price, but it’s still here and it has brought with it many other cryptocurrencies like Ether or Ethereum, Litecoin, Dogecoin, Cardano, USD Coin, Tether, XRP, and Stellar just to name a few.

Bitcoin was the first example of blockchain and without blockchain there would be no Bitcoin which is probably why the two are used so interchangeably. Blockchain is just a growing list of digital records (very similar to a linked list in computer science although some argue they are different).

Before continuing, I want to say that this article is NOT investment advice as I am not a financial advisor, so please do your do diligence before making any sort of investment. With that being said, let’s get into why I believe crypto is here to stay

Most Blockchains use cryptocurrencies to give people incentives to keep up the network, and many people believe block chain is a great technology. Some of those “people” are large corporations like banks.

The European Investment Bank (EIB) is using Ethereum to issue digital bonds. Yes, you read that correctly. The bank issued 100 million Euros (approx. $121 million USD at that time) in digital bonds on the Ethereum platform. The bank worked with Banque of France, Santander, Societe Generale, and Goldman Sachs to get these bonds issued on April 28, 2021.

The bonds are “bond tokens” a.k.a. a cryptocurrency on the Ethereum blockchain where people can purchase and pay for the token using fiat (Euros, USD, etc.). This is a great way to issue bonds and guarantee payment and apparently the EIB sees some sort of benefit or advantage to doing it this way as opposed to traditional ways.

The EIB isn’t the only bank to join a blockchain, the Bank of Thailand launched a blockchain-enabled platform for issuing$2.6 billion USD in bonds as well to retail and wholesale investors. Bond tokenization just may become the norm in the future.

Like I mentioned before banks are getting into crypto as well as other institutions like cooperation’s and businesses. Publicly traded and popular companies like Tesla, and Twitter, have started investing in Bitcoin (BTC).

Tesla invested roughly $1.5 billion USD in bitcoin. Tesla told the Securities and Exchange Commission (SEC) that it made this investment to diversify its cash and cash equivalent holdings.

Twitter CEO Jack Dorsey invested $50 million USD in Bitcoin and tweeted how Bitcoin changes everything for the better and that no single entity can change or stop it.

Square bought $170 million worth of bitcoin. When asked why square invested in Bitcoin Ahuja said “We feel that bitcoin is aligned with our purpose, which is economic empowerment”.

MicroStrategy, the business intelligence firm has made bitcoin its main treasury reserve, and invested about $2.23 billion USD in Bitcoin.

An interesting study from Ark Investment suggested that Bitcoins value would increase approximately by $40,000 USD if all of the companies in the S&P500 invest just 1% of their companies cash to Bitcoin. Right now it looks like we may eventually see a future where these companies diversify their cash with crypto.

The country El Salvador became the first country ever in the world to deem bitcoin legal tender. Having Bitcoin as legal tender means Bitcoin must be accepted if offered in payment of a debt, so every business in El Salvador must accept Bitcoin as payment.

The President of El Salvador Nayib Bukele said that the move to add Bitcoin as legal tender will bring inclusion to Salvadorans who don’t have access to financial services. El Salvador is the first country to make this happen, but may not be the last.

Coinbase is working with the 401k provider called ForUsAll to add up to 5% of crypto to 401k portfolios. This means businesses that work with ForUsAll will eventually give there employees the option to put some of their 401k investments into cryptocurrencies. This is HUGE, just think about how many people have 401k’s and are looking to diversify their portfolio.

https://www.fintechfutures.com/2020/10/bank-of-thailand-launches-worlds-first-blockchain-platform-for-bond-issuance/

https://www.investopedia.com/terms/b/blockchain.asp

https://www.coindesk.com/european-investment-bank-issues-121m-digital-notes-using-ethereum

https://www.crowdfundinsider.com/2021/04/174805-european-investment-bank-issues-digital-bond-on-ethereum-will-bond-tokenization-become-the-norm/#:~:text=This%20past%20week%2C%20the%20European,of%20the%20Banque%20of%20France.

https://news.bitcoin.com/ark-investment-study-suggests-btc-value-will-rise-by-40000-if-all-sp-500-companies-allocate-1-of-their-cash-to-bitcoin/

https://www.coindesk.com/microstrategy-buys-15m-more-of-bitcoin

https://www.coindesk.com/coinbase-to-offer-crypto-investment-through-401k-provider

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://randerson112358.medium.com/cryptocurrencies-are-here-to-stay-heres-why-6a3cf55bea47?source=rss——-8—————–cryptocurrency

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