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Prospects for cryptocurrencies during the upcoming global financial crisis

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There are many signs that indicate the imminent onset of a new economic crisis. In this regard, many crypto enthusiasts are wondering how digital currencies will behave.

If you look at the yield curve, which is usually considered by economists as the main harbinger of a recession, you will notice that over the past year it has steadily declined.

In general, since the beginning of the year, there has been a downward trend in world markets, which makes many economists suppose an inevitable economic crisis. Economic indicators show a marked slowdown in industrial production and demand, not only in Europe, but also in Asia and the United States.

The cryptocurrency market, on the contrary, shows good prospects, since speculative investments cease to work during the recession. Thus, the difficult economic situation can contribute to the growth of cryptocurrencies, raising them to the mainstream.

This thesis is reinforced by the situation in the last two years in Venezuela and Argentina, which have long struggled with the problem of hyperinflation and a serious recession, as a result of which the adoption of some cryptocurrencies is quite high.

This process is also due to the fact that bitcoin is increasingly seen as a means of accumulation. Bloomberg analyst Mike McGlone recently wrote that cryptocurrency is “gaining momentum as a storehouse of value and digital gold.”

Since blockchain technology is decentralized, cryptocurrencies, especially bitcoins, are beyond the control of governments and central banks. If the recession falls on the United States again, people will be able to resort to an alternative solution based on blockchain technology.

The government can always print more money and add it to circulation, which is impossible with most cryptocurrencies. Moreover, cryptocurrency prices depend solely on the dynamics of supply and demand and are free from state supervision or intervention.

Of course, this does not apply to all cryptocurrencies on the market today. Most startups that issued tokens during the initial coin offering (ICO) period do not have a work product.

Bitcoin is likely to become the first cryptocurrency to be widely used, although at present the network cannot handle a large flow of transactions. In December 2017, transaction fees increased to double digits, which made small transactions impossible. However, the introduction of Lightning Network technology solves this problem.

Ethereum and Litecoin can also be used for payments, and this may be an opportunity for cryptocurrencies to grow without speculative excesses.

Publication date 08/26/2019
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Wells Fargo Banking Holding creates stablecoin pegged to US dollar

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U.S. financial giant Wells Fargo is working on a cryptocurrency pegged to the dollar. The company announced this in its press release .

According to the company, the future stablecoin will be used as part of its own blockchain platform. Its main focus will be cross-border payments between the company and its partners around the world. Moreover, other companies outside the US will be able to use cryptocurrency to complete transactions between themselves.

The decision to issue cryptocurrency in the company is explained by the need to reduce the cost of payments between different countries, as well as the acceleration of this process. The current mechanisms cannot be called bad, but they are already outdated: high commissions, terms of several days per transaction – all this cryptocurrency can leave in the past.

Wells Fargo assures that their stablecoin will provide almost instant payments, and the process of their implementation will become much simpler. Next year, the company will begin a pilot project during which the cryptocurrency will be tested in test mode. Initially, only dollars will be available for transfers, but in the future it is planned to add support for many other currencies.

Wells Fargo is not the first bank that intends to launch its cryptocurrency, but it is not only one of the largest banks in the world and in the USA, but also one of the most expensive companies in the world. The arrival of such a player will show other companies that without their own digital currencies and blockchain ecosystems, they will have nothing to do in this market.

Publication date 09/19/2019
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North Korea plans to launch its own cryptocurrency

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North Korea is creating a cryptocurrency with which the country will be able to avoid international sanctions.

It is assumed that the cryptocurrency development project is at an early stage. Its goal is the same as that of the Venezuelan project – last year the topic of developing the state’s national digital currency, Petro, was actively discussed. A cryptocurrency that does not yet have a name will be similar to the technology used by BTC or altoins. Currently, the team that is working on the project is studying products that could be tied to cryptocurrency. It is known that the payment instrument will not be exactly supported by the national currency of North Korea.

Experts believe that North Korea has enough opportunities and developments to present a good cryptocurrency. So, we can assume that the state will be able to improve its position in this way.

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The head of the SEC said when Bitcoin will appear on large traditional exchanges

Chairman of the US Securities and Exchange Commission (SEC) Jay Clayton said that bitcoin needs more regulation for listing on large exchanges. It is reported by CNBC. “If investors believe that Bitcoin pricing is as strict as on the Nasdaq or the New York Stock Exchange, then they are very mistaken. We must get to the point where we are sure […]

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Chairman of the US Securities and Exchange Commission (SEC) Jay Clayton said that bitcoin needs more regulation for listing on large exchanges. It is reported by CNBC .

“If investors believe that Bitcoin pricing is as strict as on the Nasdaq or the New York Stock Exchange, then they are very mistaken. We must get to the point where we are sure that trade is regulated correctly , ”he stressed.

We are talking about listing conditions for bitcoin itself, and not derivatives, such as CME futures.

Recall, Clayton said earlier that some progress on Bitcoin ETFs has been achieved. VanEck and SolidX have withdrawn their application.

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Name Price24H (%)
Bitcoin (BTC)
$10,228.42
0.62%
Ethereum (ETH)
$220.14
4.38%
XRP (XRP)
$0.301142
-3.77%
Bitcoin Cash (BCH)
$319.73
-1.50%
EOS (EOS)
$3.95
-3.37%
Stellar (XLM)
$0.081284
0.56%
Litecoin (LTC)
$76.62
-2.16%
Cardano (ADA)
$0.052608
-0.51%
Tether (USDT)
$1.00
0.18%
Monero (XMR)
$75.64
-4.02%
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