Who Were Competing With Is Nasdaq And The New York Stock Exchange Says Solana Founder
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A crypto crash that wiped hundreds of billions of dollars from the market this week has led to fresh fears that bitcoin and its rivals could lose all the gains made in 2021.
But one leading cryptocurrency managed to not just make it through the turmoil unscathed but actually soared to new record highs.
Solanas SOL token hit an all-time high on Thursday, peaking at $214.96 according to CoinMarketCaps price index. Just one year ago it was worth less than $2.
The price surge has boosted Solanas market cap above $60 billion and pushed it ahead of both dogecoin and Ripple this week to rank as the worlds sixth most valuable cryptocurrency.
The majority of the crypto market slid with BTC, demonstrating the relative immaturity of the asset class and the markets dependency on bitcoin, said Alexandra Clark, a sales trader at UK-based digital asset broker GlobalBlock. But Solana remained largely unaffected and instead have seen double digit returns.
Exactly how it has managed to buck the market trend may have something to do with its underlying technology, which its backers hope could see it eventually rival the likes of Ethereum and Cardano .
Other Recent Crypto News
- Vitalik Buterin, the creator of popular cryptocurrency Ethereum, was named to the TIME 100 list of the most influential people of 2021 this week. Alexis Ohanian, former executive chairman of Reddit, wrote of Buterin: What makes Vitalik so special, though, is that he is a builders builder. No one person couldve possibly come up with all of the uses for Ethereum, but it did take one persons idea to get it started. From there, a new world has opened up, and given rise to new ways of leveraging blockchain technology.
- Coinbase says it is ditching its in-the-works lending program a week after saying the U.S. Securities and Exchange commission was threatening to sue the company over the product, according to a statement on the Coinbase site. Coinbase said in a different statement last week that it has been engaging with the SEC for about six months on the project, and the legal action was a surprise with no explanation. The SEC did not respond to a request for comment.
- El Salvadors president, Nayib Bukele, revealed that the country has purchased 400 Bitcoins worth about $20.9 million in a series of tweets recently. This comes after the El Salvador government passed Bitcoin as a legal tender, meaning that the currency can now be used in El Salvador for everything from buying groceries to paying taxes.
Institutional Investors Get In The Game
Although trade figures for individual investors are down in many cases, institutions are climbing on board in a significant way for the first time. Institutional investors allow for significantly larger trading volumes than most individual investors, meaning that even if fewer trading partners are transacting in the digital currency space, the industry can still sustain itself.
There are several potential developments projected to take place in 2020 and 2021 that could significantly impact institutional participation in the digital currency market. If crypto is floated on the Nasdaq or a similar exchange, for example, it will immediately get a boost in reputationand likely, value.
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How Investors Should Deal With Volatility
Cryptocurrency volatility is nothing new, and you should be comfortable with this if you decide to invest.
Volatility can be attributed to an immature market, says Ollie Leech, learn editor at Coindesk, a cryptocurrency news outlet. Anything from a celebrity tweet to new federal regulation can send prices spiraling.
If Elon Musk puts hashtag Bitcoin in his Twitter bio, it sends Bitcoin up 10%, says Leech.
This unpredictability is part of the reason why investing experts warn against investing huge amounts of your portfolio into a risky asset like crypto. Many recommend keeping your crypto holdings to less than 5% of your total portfolio.
For new investors, day-to-day swings can seem frightening. But if youve invested with a buy-and-hold strategy, dips are nothing to panic about, says Humphrey Yang the personal finance expert behind Humphrey Talks. Yang recommends a simple solution: dont look at your investment.
Dont check on it. Thats the best thing you can do. If you let your emotions get too much into it then you might sell at the wrong time, make the wrong decision, says Yang.
This is the traditional set it and forget it advice that many traditional long-term investors follow. If you cant get on board, and the extreme dips continue to cause you worry, then you might have too much riding on your cryptocurrency investments.
Morgan Stanleys Ceo Says Bitcoin And Crypto Arent Going Away
Morgan Stanley CEO James Gorman talked about bitcoin and cryptocurrency during the banks third-quarter earnings call with analysts Thursday morning.
Emphasizing that crypto is not going to go away, he said:
Ive said it publicly before, Ill say it again. I dont think cryptos a fad. I dont know what the value of bitcoin should or shouldnt be, but these things arent going away.
He added: The blockchain technology supporting it is obviously very real and powerful.
Morgan Stanley was among the first major banks to embrace bitcoin. In March, the bank revealed that it had begun offering bitcoin funds to clients. In April, the bank added bitcoin to 12 mutual funds investment strategies.
The global investment bank launched a dedicated cryptocurrency research team in September, led by Sheena Shah, the firms crypto analyst. The launch of dedicated crypto research is in recognition of the growing significance of cryptocurrencies and other digital assets in global markets, the bank explained.
The Morgan Stanley executive explained during the earnings call, Were not directly trading crypto for retail clients, adding that there are other players who are choosing to do that. He clarified, We give access to them to buy crypto through various funds and things.
Were watchful of it, were respectful, and well wait and see how the regulators handle it.
Do you agree with Morgan Stanleys CEO about bitcoin and crypto? Let us know in the comments section below.
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Crypto Tanks Here’s What’s Going On
For the past two weeks, bitcoin sank over 50% along with most other altcoins off lots of different news. The catalyst of most of the bearish moves happened when China announced their banning of crypto mining. CEO and founder of Tesla, Elon Musk, always steps in and talks about crypto as well. Although he is most certainly a crypto bull, he knows the process of mining bitcoin uses so much energy and is not good for the environment. It would be against his motives for an electric vehicle company to use bitcoin as one of their methods of transactions as long as mining bitcoin consumes tremendous amounts of energy. These two events helped stir fears in bitcoin’s future, but there is a lot more going on in the decentralized market that’s hurting crypto for the time being, but there is also several bullish ways to think about this situation.
Why crypto keeps tanking
Thiel also talked about how their company and the industry is working toward eventually hitting 100% carbon neutrality in crypto mining in which Musk would have no objections to the mining industry.
As of now, I own positions in bitcoin, ethereum and doge.
What Are Cryptocurrencies
Cryptocurrencies are essentially just digital money, digital tools of exchange that use cryptography and the aforementioned blockchain technology to facilitate secure and anonymous transactions. There had been several iterations of cryptocurrency over the years, but Bitcoin truly thrust cryptocurrencies forward in the late 2000s. There are thousands of cryptocurrencies floating out on the market now, but Bitcoin is far and away the most popular.
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But Can You Write Poetry
Rodriguez, who evolved from web coding to front-end design, could clearly demonstrate results. But in fields where results are less tangible, that approach doesnt work as well. Anyone with hopes of a managerial position needs a college diploma, for example, according to Steve Mintz, a historian and education researcher at the University of Texas.
That also applies to much of the high-level, back-end system design work involved in blockchain projects. In fact, blockchain encompasses so many deep concepts that its an ideal introduction to computer science as a whole.
I use blockchain as a way to introduce a number of computer science fields in my courses, says Professor Ron Van Der Meyden at the University of New South Wales in Sydney. Here weve got this brilliant application which, to really understand how its working, theres a lot of pieces of computer science we can introduce cryptography, consensus. And each of those has a whole lot of behind them.
That sort of deep theoretical knowledge may seem abstract from the outside, but according to Van Der Meyden, its extremely practical.
You can look at a particular thing you need to code, and identify within that problem, heres something that a finite set automata would be good for, he says. You learn how to think about, Im not just going to write a program, Im going to really care about how efficiently that program performs. That requires a conceptual toolset.
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Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
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What Is The Price Of Bitcoin And Ethereum
The price of Bitcoin was £41,531.60 after the latest drop in prices , according to Coinbase.
In the last 24 hours, Ethereum had dropped to a value of £2,568.99.
Cryptocurrencies are seen as an alternative to traditional banking methods, cheaper to move money around due to not being regulated by the government or its banks.
The decision by Tesla, and announced by Musk, was seen by some as a slight on the credibility of cryptos to become a viable method of payment against physical currencies.
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How Much Have Bitcoin Ethereum And Dogecoin Lost In Value
With Tuesdays losses, bitcoin has slid more than 50% from its all-time high above $64,000 in mid-April. To be sure, bitcoin is still up more than 200% over the past 12 months.
Ethereum has shed nearly 57% from its all time high of $4,356.99 in May while Dogecoin has shed more than 70% since it touched a record of about 73 cents last month, according to CoinGecko.
The I Newsletter Cut Through The Noise
Bitcoin and other leading crypto coins experienced a significant drop in share price after investors began dumping mining equipment as China announced fresh regulations.
- Bitcoin -1.21%
- Binance Coin +3.17%
- Cardano -3.82%
- Terra -5.98%
- SHIBA INU -12.24%
It follows recent crashes brought on by Tesla making a u-turn on accepting Bitcoin as payment for its products and China clamping down on initial coin offerings, block exchanges and warned against speculative trading.
A further blow was dealt when China ordered Bitcoin mining in its Sichuan province to shut down completely and furthermore told banks to stop supporting crypto transactions, in a latest wave of restrictions on cryptos.
Now the countrys central bank, Peoples Bank of China, has effectively banned digital coins after announcing all transactions of cryptocurrencies are illegal.
The decision has already had an impact on the global crypto market.
This is whats going on in the world of cryptocurrencies…
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Are Cryptocurrencies A Good Investment
Cryptocurrencies may go up in value, but many investors see them as mere speculations, not real investments. The reason? Just like real currencies, cryptocurrencies generate no cash flow, so for you to profit, someone has to pay more for the currency than you did.
Thats whats called the greater fool theory of investment. Contrast that to a well-managed business, which increases its value over time by growing the profitability and cash flow of the operation.
For those who see cryptocurrencies such as bitcoin as the currency of the future, it should be noted that a currency needs stability.
Some notable voices in the investment community have advised would-be investors to steer clear of them. Of particular note, legendary investor Warren Buffett compared Bitcoin to paper checks: It’s a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money too. Are checks worth a whole lot of money? Just because they can transmit money?”
» Learn more: Is Bitcoin safe?
This price volatility creates a conundrum. If bitcoins might be worth a lot more in the future, people are less likely to spend and circulate them today, making them less viable as a currency. Why spend a bitcoin when it could be worth three times the value next year?
Stablecoins Take The Lead
Stablecoins are digital tokens that are pegged to a fiat currency that act as hedging mechanisms against the potential decline of underlying cryptocurrency collateral pricesand they may just be the industry’s best hope going into 2021.
Stablecoins may see growth next year for two reasons: one, a result of the long-term instability of non-centralized tokens and two, the current leader in the stablecoin industry, tether, is positioned to be dethroned.
As one of the earliest stablecoins to reach the mainstream, Tether has suffered a number of highly publicized growing pains while the sub-industry developed. Other stablecoins have already entered the field, aiming to wrench away its dominance.
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Whats Behind The Latest Bitcoin Drop
Many investors see Bitcoins price swings as part of the game, but volatility is tough for individual investors to deal with, Noble says. Like Yang, he warns against selling too fast.
While this recent drop is reminiscent of 2017s sell off, Bitcoins presence has grown a lot since then. New short-term investors who are selling their holdings in reaction to the drop may be influencing the continued dip in Bitcoins value, according to a recent report from Glassnode Insights, a blockchain analysis firm.
While fluctuations are expected, Noble says this swing is a bit out of the ordinary. I thought the market was maturing and these things would be less frequent and severe. Boy was I wrong, he says.
This particular drop was caused by a combination of factors that may have made this drop more severe, Noble theorizes, from excitement about low-quality coins, to negative remarks from Elon Musk, to Chinas latest crack down on crypto services. The accumulated response made this sell off all the more violent, says Noble.
He likens the drop to the stock market crash of 1987, from which the markets took months to recover. But because crypto moves a lot faster today than equities did in the 1980s, Noble says we may see a quicker recovery.
Dont panic and puke, Noble says. If you keep your positions small, you can try to tolerate the volatility.
First Us Bitcoin Futures Etf May Debut Monday Filing Says
— Asset manager ProShares signaled plans to launch a Bitcoin futures exchange-traded fund as soon as Monday, an action that would end an eight-year wait for a security tracking the cryptocurrency on the U.S. stock market, according to a filing.Most Read from BloombergOut-of-Practice Airline Pilots Are Making Errors Back in the AirThe Worlds Rich and Powerful Are Stashing $500 Billion in This Tax HavenWhy Buying a Second or Even Third Home Is Becoming More Popular Than EverThe Bigge
Fund sponsor ProShares appears to have won regulatory approval late Friday for its Bitcoin Strategy ETF.
Bitcoin mining should be as easy as plugging a rig into a power source,’ Square CEO jack Dorsey said.
ProShares looked set to be the first bitcoin exchange-traded fund, according to sources and fund specialists.
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