Crypto will change the world go round
What impact could the technology behind Bitcoin have? According to Tapscott Group CEO Don Tapscott, blockchains, the technology underpinning the cryptocurrency, could revolutionize the world economy. In the early s, we said the old media is centralized. This has an awesome neutrality. It will be what we want it to be, and we can craft a much more egalitarian, prosperous society where everyone gets to share in the wealth that they create.
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Crypto will change the world go round
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Content:
- Cryptocurrency Regulations Around The World
- CoinDesk’s Michael Casey: We’re building ‘a new crypto civilization’
- “Fireblocks is ‘the one’ of the crypto industry”
- Africa could be the next frontier for cryptocurrency
- Are Bitcoin and other digital currencies the future of money?
- Regulators put cryptocurrency in crosshairs
- 5 predictions for bitcoin, NFTs and the future of money
- Will Bitcoin be the world’s single currency in 10 years?
- Cryptocurrency
- What's next for bitcoin and crypto? The trends to watch in 2022
Cryptocurrency Regulations Around The World
Since then, its price has increased by tens of thousands of dollars—sometimes rising or falling thousands of dollars within days. There are several reasons why Bitcoin has such a volatile price history. Understanding the factors that influence its market price can help you decide whether to invest in it, trade it, or continue watching its developments.
Supply and demand influence the prices of most commodities more than any other factor. Bitcoin's market value is primarily affected by how many coins are in circulation and how much people are willing to pay. By design, the cryptocurrency is limited to 21 million coins—the closer the circulating supply gets to this limit, the higher prices are likely to climb. It is difficult to predict what will happen to prices when the limit is reached; there will no longer be any profit from mining Bitcoin.
As big financial players compete for ownership in an environment of dwindling supply, Bitcoin's price will likely fluctuate in response to any actions they take. As the most popular cryptocurrency, Bitcoin demand increases because supply is becoming more limited. Long-term, wealthier investors hold their Bitcoins, preventing those with fewer assets from gaining exposure. According to the National Bureau of Economic Research, one-third of all Bitcoins were held by the top 10, investors at the end of Brokers and other financial institutions are working desperately to get approval from the Securities and Exchange Commission for Bitcoin-backed securities —the number held by institutions and large investors will continue to rise as more securities are designed.
Bitcoin volatility is also driven, to an extent, by these investors. It is unclear how Bitcoin whales—investors with BTC holdings in the tens of millions or more—would liquidate their significant positions into fiat currency without affecting Bitcoin's market price. If the whales were to begin selling their Bitcoin holdings suddenly, prices would plummet as other investors panicked as well.
Investors with thousands of Bitcoin may not be able to liquidate their assets fast enough to prevent enormous losses. Emerging technologies like decentralized finance and the metaverse may reveal Bitcoin's market staying power, but it is still speculation whether Bitcoin will have any value or utility in these systems. Bitcoin volatility is also partly driven by the varying belief in its utility as a store of value and method of value transfer. A store of value is an asset's function that allows it to maintain value in the future with some degree of predictability.
Many investors believe that Bitcoin will retain its value and continue growing, using it as a hedge against inflation and an alternative to traditional value stores like gold or other metals. Because news and media outlets are businesses that need content for their readers and viewers, they often present information and predictions from "experts" that are not always verified by evidence other than opinions.
It's not uncommon to hear an opinion from someone heavily invested in Bitcoin stating that the currency will soon be worth hundreds of thousands. Others hype newly invented cryptocurrencies to try and take away market share from Bitcoin. However, most of this media attention and publicity serves to influence Bitcoin's price to benefit the people who hold large numbers of coins.
When media outlets announced Proshare's introduction of its Bitcoin Strategy ETF exchange-traded fund in late October , Bitcoin's price skyrocketed over the next few weeks.
Rumors about regulations tend to impact Bitcoin's price in the short term, but the significance of the impacts is still being analyzed and debated.
Government agency views of cryptocurrency can also affect Bitcoin's price. The IRS also considers Bitcoin a capital asset if it's used as an investment instrument. Additionally, if you mine a Bitcoin, you are required to report it as income based on the coin's market value on the date you receive it. The tax stance taken by the IRS means taxes must be paid when you use Bitcoin.
As a result, taxes factor into Bitcoin's market price—but it doesn't necessarily contribute to its volatility unless the tax regulations change often and cause investor concerns.
China's government and central bank announced in that all cryptocurrency transactions or facilitation were illegal. Bitcoin mining was cracked down upon following a meeting of the State Council Financial Stability and Development Committee in May, which resulted in a massive shutdown of cryptocurrency mining farms in the country. As a means of exchange, gold has been used for a very long time. As such, it is a reasonably stable commodity, as far as price, demand, and supply go.
Likewise, fiat currency has been around for some time—while exchange rates between countries fluctuate and are somewhat volatile, their values are to a point predictable based on the issuing country and the economic circumstances it faces. Bitcoin has only been around for a short time—it is still in the price discovery phase. This means that prices will continue to change as investors, users, and governments work through the initial growing pains and concerns until prices stabilize—if a stable point can be reached.
Bitcoin's price fluctuates because it is influenced by supply and demand, investor and user sentiments, government regulations, and media hype. All of these factors work together to create price volatility. It's rare to watch cryptocurrency news and not see an investor or fan's opinion of how high Bitcoin's price will get.
Unfortunately, it is unknown how high or low the cryptocurrency's price will go. You can buy Bitcoin on government-approved cryptocurrency exchanges like Coinbase. If you're looking to use Bitcoin to preserve capital or grow your assets, its price is highly volatile—there is no guarantee that you will see any returns; you're just as likely to lose everything you invest as you are to make any gains. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions.
Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author does not own cryptocurrency. Igor Makarov, Antonette Schoar. Accessed Jan.
Internal Revenue Service. Your Money. Personal Finance. Your Practice. Popular Courses. Cryptocurrency Bitcoin. Part of. Guide to Bitcoin. Part Of. Bitcoin Basics. Bitcoin Mining. How to Store Bitcoin. Bitcoin Exchanges. Bitcoin Advantages and Disadvantages. Bitcoin vs. Other Cryptocurrencies.
Bitcoin Value and Price. Table of Contents Expand. Table of Contents. Bitcoin Supply and Demand. Bitcoin Investor Actions. Bitcoin In the News. Bitcoin Regulation. Bitcoin Is Still in Its Infancy. Frequently Asked Questions. Key Takeaways Like most commodities, assets, investments, or other products, Bitcoin's price depends heavily on supply and demand. As an asset adopted quickly by investors and traders, speculation about price movements plays a critical part in Bitcoin's value at any given moment.
Media outlets, influencers, opinionated industry moguls, and well-known cryptocurrency fans create investor concerns, leading to price fluctuations.
Is Bitcoin Safe to Buy? Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Articles. Bitcoin Bitcoin's Price History. Bitcoin What Determines the Price of 1 Bitcoin? Bitcoin How to Invest in Bitcoin Futures. Partner Links. Learn about altcoins, how they work, and which are the most popular. Bitcoin is a digital or virtual currency created in that uses peer-to-peer technology to facilitate instant payments.
What Is Cryptocurrency? A cryptocurrency is a digital or virtual currency that uses cryptography and is difficult to counterfeit. Bitcoin Mining Breaking down everything you need to know about Bitcoin mining, from blockchain and block rewards to proof of work and mining pools. Investopedia is part of the Dotdash publishing family.
CoinDesk’s Michael Casey: We’re building ‘a new crypto civilization’
Dit artikel is ook beschikbaar in het Nederlands. May 11, , by Wim Boonstra. In recent months the price of Bitcoin has risen sharply on balance, despite some fluctuations. Pressing questions are coming up. Is Bitcoin money or not?
“Fireblocks is ‘the one’ of the crypto industry”
Everyone is talking about cryptocurrencies. But for those of us on the outside, their value is still something of a mystery. Ruby Hinchliffe ,. Thanks to Elon Musk and his However, cryptocurrencies are intrinsically volatile. Since , a year after bitcoin gained monetary value, the crypto poster child has fallen victim to its own inflated prices. The way a coin is developed, and for what purpose, has a massive bearing on its value.
Africa could be the next frontier for cryptocurrency
Producer, director, actor and politician Kamal Haasan is set to become the first Indian celebrity to have his own digital avatar in a metaverse. Don't be a martyr, save yourself. This dumbass token SHIB and all exchanges listing it really set a bad precedent. Look at the most recent blocks and transactions with the highest gas.
Are Bitcoin and other digital currencies the future of money?
In a new report and map, we look at the state of crypto-assets, their risk and regulation, and how their impact and acceptance is evolving around the world. Crypto-assets have become the proverbial double-edged sword among financial experts. The rise and deployment of crypto-assets has pushed digital transformation and has the potential to make payments and transfers more efficient. However, the speed and reach of such transactions — together with the potential for anonymous activity and for transactions without financial intermediaries — also make crypto-assets vulnerable to misuse and raise the risk of money laundering. Financial services firms, regulators and policymakers are all having to come to terms with the rise of a new class of product as well. To look further at this evolving dynamic, the Thomson Reuters Institute and Thomson Reuters Regulatory Intelligence have created a new Special Report: Cryptos on the rise , which examines some of these developments as well as the risks and benefits of this next iteration of digital transformation.
Regulators put cryptocurrency in crosshairs
Blockchain is transforming everything from payments transactions to how money is raised in the private market. Will the traditional banking industry embrace this technology or be replaced by it? Blockchain technology has received a lot of attention over the last decade, propelling beyond the praise of niche Bitcoin fanatics and into the mainstream conversation of banking experts and investors. Someone is going to get killed. It is a vehicle to perpetrate fraud.
5 predictions for bitcoin, NFTs and the future of money
As cryptocurrencies spread across the globe, so too do the regulations put in place to try and govern them. Learn how different nations approach coin and exchange regulation and if they have any upcoming legislation which could alter their approach to cryptocurrencies. Cryptocurrency exchanges: Legal, regulation varies by state. While it is difficult to find a consistent legal approach at state level, the US continues to make progress in developing federal-level cryptocurrency legislation.
Will Bitcoin be the world’s single currency in 10 years?
RELATED VIDEO: Web 3.0 Will Make Millionaires in 2022When I think about Bitcoin, the best known cryptocurrency right now, I think of a quote from Warren Buffett. It's common sense really. And while Bitcoin and other cryptocurrencies have been around for quite a while, and have made lots of people rich, these two points sum up why I'm staying away. That is not to say that Bitcoin is going to collapse. It's just that Bitcoin doesn't make a lot of sense as an investment to me. When they succeed, businesses are productive: they tend to make money, and as a shareholder, you're entitled to some of it.
Cryptocurrency
Bitcoin burst into the media spotlight with soaring valuations in late Not only was it fashionable to declare that you had invested in the next big thing, but people began wondering if this was really the start of mass adoption. At its core, the concept of Bitcoin is quite simple. I personally believe that it will be Bitcoin. Bitcoin predictions plucked out of thin air are rife.
What's next for bitcoin and crypto? The trends to watch in 2022
Which coins will rise in price and which ones will fall? What else in the legal and regulatory framework will regulators come up with? How will 5G create a level playing field for traders anywhere in the world, and what more will bring beyond vaccines to end the pandemic? On the one hand, the introduction of requirements for the identification of crypto users, the growing interest in government digital currencies, the crypto service from PayPal and the upcoming launch of the stablecoin, Diem ex-Libra , from Facebook, and many other events confirm that digital assets are becoming more understandable and more mainstream at long last.
It not absolutely approaches me.