This article is an excerpt from Blockchain bites, a daily recap of the most important stories in blockchain and crypto news. You can subscribe to the complete newsletter here.
$ 1T
Bitcoin is a trillion dollar asset. The first and largest cryptocurrency hit a new high of $ 53,739.48 on Friday morning, the magic number where the market value of all bitcoins in circulation is $ 1 trillion. That’s an increase from a market cap of $ 178 billion last year, reports CoinDesk’s Zack Voell.
While it is a meaningless event in some ways, it is also a serious milestone on the way for Bitcoin to become a significant part of the global financial ecosystem. The open protocol is now more valuable than Facebook and could soon overtake Alphabet, the parent company of Google, or Amazon if prices continue to rise.
Related: India’s Securities Commission Want IPO Promoters To Sell Crypto Holdings: Report
In February 2011, just two years and a month after the Bitcoin “Genesis Block” was mined, the cryptocurrency reached dollar parity, or the moment a BTC could be exchanged for $ 1. This was a major psychological event that proved that Bitcoin was not just a usable currency, but a viable, alternative monetary system.
“[I]It’s like kids playing an early version of a street game with sticks and stones, until 10 years later it is the fastest growing, most important, and impactful game to hit the sports world, ”CoinDesk podcast editor Adam B Levine , an early adopter, told Blockchain Bites.
“The initial profitability is important. Mainstream adoption is important, ”he said. At a moment when the US dollar’s longevity has never been questioned, institutions are fast entering the bitcoin economy.
In fact, the trillion dollar signpost could signal a future in which a dollar price offer for Bitcoin hardly matters. The entire global economy is unlikely to be denominated in satoshis – even less in “bits” – but bitcoin could become a viable global reserve asset. Some not only sit on disruptors like MicroStrategy or Tesla’s balance sheets, but also predict a world in which governments will last.
The story goes on
Related: Individual buyer donates $ 1 million in ether to CryptoPunk digital collectibles
As Toroso Asset Management’s Michael Venuto said this morning on CoinDesk TV: “[Bitcoin’s] The price is more or less a meme. It upsets people, but maybe for the wrong reasons, and prevents them from going down the rabbit hole. “
Other stories
CeFi and DeFi paddycakes
PancakeSwap is the latest automated market maker (AMM) clone aiming to replace Uniswap as the leading DeFi trading platform. The protocol is developed by Binance and offers a breathing space for soaring gas prices on the Ethereum-based original. Liquidity, volumes and the price of its native CAKE token are exploding, perhaps to the ire of the freezing Ethereum stans.
This exchange is not big enough …
OKCoin delisted Bitcoin Cash (BCH) and Bitcoin SV (BSV) to prevent new customers from confusing these two forks with Bitcoin (BTC). “It’s not an easy decision. We had a choice and there is collateral damage, but we had to stand up for the bigger principle we believe in, ”Hong Fang, CEO of OKCoin, told CoinDesk. Bitcoin Cash is a clone of Bitcoin, with minor adjustments to increase the block size. BSV, championed by Craig Wright, who is best known for his claims of being the inventor of the original Bitcoin, is itself an offshoot of Bitcoin Cash. CoinDesk tech reporter Colin Harper dives in.
Systemically relevant: bank says
According to JPMorgan analysts, Bitcoin and the broader crypto market could suffer a severe liquidity shock if traders lose confidence in Tether (USDT). In a new report, a bank analyst caught up on the endless tether conversation, saying that the implosion of the stablecoin’s dollar equivalent could spark a bank run-like event. There is more than $ 33 billion USDT, down from $ 4 billion just 12 months ago.
Comments are closed.