FX Markets to Boost Bitcoin, Booming Mining Investments, Mass Adoption of Blockchain Finance
Weekly News Recap:
1. Increased Bitcoin Adoption Post Covid-19?
2. Mining Investments Boom, High Prospects for Bitcoin
3. FX Markets to Boost Bitcoin
4. Institutions to Drive Mass Adoption of Blockchain Finance
Increased Bitcoin Adoption Post Covid-19?
Former Coinbase CTO, Balaji Srinivasan thinks so.
People have been forced to seek alternative ways in maintaining their fundamental rights as the novel coronavirus drives centralized governments to step up their system, potentially accelerating adoption of Blockchain. Srinivasan speculates that crypto and blockchain may play a vital role in eventuality, quoting:
“There are certain things that are hard to do, unless you do them centralized. It is not the case that every government failed. It is the case that every government is powered up. And it is the case that every government is powered up and gains lots of power over the economy, basically pausing transactions and etc.”
The future economy is unpredictable. The pandemic has put the international community ‘s solidarity to the test, while at the same time reinforcing nationalistic values around the world. Srinivasan believes that states will likely fail should they not act cohesively in the midst of present pandemic, with the remainder states inevitably becoming more centralized as it is a centralized and decentralized world that we are living in.
Srinivasan concludes that Blockchain will act as a Regulator by being “law of the sea” where “international capitalism” happens, and the Blockchain technology will potentially be presented as the alternative to the influence of political spheres.
Mining Investments Boom, High Prospects for Bitcoin
Recent investments by smaller players in cryptocurrency mining equipment could be a positive signal for Bitcoin (BTC)’s longevity and value. At the end of June, U.S.-based blockchain company Core Scientific made waves in the industry as it made the largest known order of Antminer S19s by ordering over 17,000 of the latest Bitcoin ASIC mining machines from the Chinese hardware manufacturer Bitmain.
Core Scientific intends to use the machines for its own operations and to provide cloud-based mining services for clients. In a sector dominated by larger firms, significant investments by smaller companies in mining machines suggests growing confidence for BTC and the like as this creates a positive sentiment for the industry.
It is observed that miners could profit up to the next Bitcoin halving despite costly mining machines, given that a bullish market is expected in the near future. Such major investments made by small and big players alike in the market is deemed to be a definite boon for Bitcoin’s longevity.
FX Markets to Boost Bitcoin
“Fireworks” are coming to the global currency market, as Max Bronstein, an analyst who works on the Coinbase Institutional Coverage Team, believes. A volatility surge in currencies is expected to greatly benefit Bitcoin (BTC) and its price.
Bronstein further notes that the current fragility of fiat currencies as the present pandemic hits the world economy will largely benefit Bitcoin as when the government feels the need to devalue its currency, Bitcoin remains in stark contrast as it is not debased by a central party.
It is predicted that Bitcoin benefiting from the pandemic will not be a short-term effect, as speculators continue to speculate on devaluation and hyperinflation may increase the Bitcoin demand.
As Bitcoin’s on-ramp infrastructure improves, the possibility of Bitcoin along with other cryptocurrencies to be used as a currency will occur in the long term.
Institutions to Drive Mass Adoption of Blockchain Finance
Founder of blockchain development firm STACS, Benjamin Soh states that institutional players will drive mass adoption of financial infrastructure built on blockchain technology. Blockchain finance will subconsciously be part of bank customers’ lives as institutions like banks bring in the technology as blockchain based wallets.
Soh noted that Asia will be the leader of blockchain finance, particularly Singapore. In addition, it is also observed that Asian countries like South Korea, Japan, China, Thailand, and Malaysia have strong initiatives to introduce the distributed ledger technology into finance.
It is observed that cryptocurrencies like Bitcoin will resolve the issue of improper digital financial services due to the complex nature of present banking infrastructure that 70% of South-East Asian SMEs struggle with.