Cryptocurrencies like Bitcoin are 'apolitical' says financial expert

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The global crypto market cap is now $2.37 trillion (£1.73tn), overtaking the $2.33tn market cap of Apple. The resurgence of Bitcoin has sparked fears for the market collapsing but experts say the finance industry is robust enough. 

Largely unregulated cryptoassets have grown by 200 percent this year, from just under $800 billion to $2.3 trillion. The world’s most valuable cryptocurrency hit a new five-month high this week, reaching above $58,000 to close in on its record all-time high of $64,000.

Ethereum (ether), Binance Coin, Cardano (ada) and Ripple (XRP) have also seen huge surges over the last 24 hours, rising between four and six percent. 

Market analysts are comparing these extraordinary rises to the price increase we saw in 2013.

KEY EVENTS

The cryptocurrency market is now worth more than the world’s most valuable company, Apple

The global crypto market cap is now $2.37 trillion (£1.73tn), overtaking the $2.33tn market cap of Apple – the world’s most valuable company. 

This is because of Bitcoin’s price surge – hitting a new five-month high – combined with gains from Ethereum, Cardano and Ripple which has pushed the overall crypto market cap up by 5 per cent.

There are now three times as many people trading in Bitcoin than the shares of Tesla, Microsoft, Amazon and Apple, according to Buisness Insider.

Putin approves crypto

Cryptocurrency “has the right to exist and can be used as a means of payment”, Putin said in an interview with CNBC. He cautioned against using it to trade commodities but welcomed it for all other use.

The White House considers an oversight of the cryptocurrency market

The White House is considering an executive order on cryptocurrencies that would combat the growing threat of ransomware and other cyber crimes, by requiring federal agencies to study and come up with proposed regulation.

The initiative would also include financial stability, national security, illicit finance, consumer protection, competition policy and research and innovation. 

Bitcoin advocates share trading strategy

High-profile bitcoin advocate, MicroStrategy CEO Michael Saylor, who has has invested billions in Bitcoin has said to ignore short-term price swings.

Saylor says “the best strategy is to buy bitcoin and wait.” Proof is with his company which has more than doubled the $3.16 billion that it has invested into bitcoin.

Hammond adds cryptocurrency role to his post-Treasury jobs

The former chancellor Philip Hammond, who was an early supporter of bitcoin, will join Copper.co on Monday as adviser.  

Copper said Hammond would focus on “promoting the UK as a global leader in digital asset technology. We would like to drive growth in our client base within a regulatory framework which will allow us to thrive globally from our London headquarters.

With Lord Hammond’s expertise adding to the strength of our team, we look forward to growing Copper and further enhancing the UK’s digital asset technology offering.”

US overtakes China for bitcoin mining

For the first time ever, The United States has overtaken China as the top destination for bitcoin miners, according to data by Cambridge University. 

This is as a result of China’s crackdown on operations, which obliterated roughly half of all bitcoin miners.

China’s share of the ‘hash rate’ fell from 44 percent in May to zero by July — this was as high as 75 percent in 2019.

The US now accounts for around 35 percent of the global hash rate.

Bitcoin could hit $100,000 by 2023

Fidelity director of Global/Macro, Jurrien Timmer, sees bitcoin reaching $100,000 by 2023 as momentum traders begin to buy into the recent rally. He also doesn’t see bitcoin’s recent rises as “excessive”m, but actually “a pretty sustainable move”, which is not a “bubble that’s about to burst,” he said an interview with CNBC.

Economist says cryptocurrencies could lead to financial instability

Economist Eswar Prasad believes digital money could leave the government with more control than ever, while making wealth inequality much worse. 

“Cryptocurrencies may contribute to monetary and financial instability, especially if they were to spawn a large and unregulated financial system that lacks investor protection”, he said to CBNC.

He continued: “whatever happens to bitcoin’s value, I think it’s going to leave a very important legacy. It’s stoking a fire under central banks to start issuing their own digital currencies. 

Any financial risks arising from investing in cryptocurrencies and related products might end up falling especially heavily on naïve retail investors.”

Elon Musk drives meme crypto up

Meme cryptocurrency Shiba Inu coin shot up by around 45 percent, supposedly because of Elon Musk.

Musk bought a pet Shiba Inu dog and tweeted a picture of it vwith the caption “Floki Frunkpuppy.” This caused a price surge of the crypto with the same name – showing just how volatile meme cryptocurrencies can be.

The tweet had nothing, explicitly, to do with Shiba Inu coin but it still sent tonnes of people off to buy it. 

Bitcoin gains over 4% today

The global crypto market cap has increased over 4 percent to $2.38 trillion over the last day according to data from coinmarketcap.com. It is now trading at $57,000. The second largest crypto, Ethereum, has also risen by over 5 percent. 

Regulation would increase trust in digital assests

According to City AM, Coinbase, the New York listed cryptocurrency exchange believe that regulatory scrutiny would increase trust in digital assets. Only education and regulation will harness the potential of digital assets.

“Crypto and the blockchain technology that underpins it have tremendous promise to revolutionise financial services and drive innovation.”

IMF warn of crypto assets threat posed to the global economy

In their latest Financial Stability Report, the IMF warned that while the risks posed by crypto are “not yet systemic” the situation should be “closely monitored” by governments which still use “inadequate operational and regulatory frameworks” to manage digital assets.

They also identified the crypto space at risk from hacking, “lack of transparency around issuance and distribution” of tokens, and operational risks including outages during periods of extreme volatility.

The most important 6-month period in the history of crypto

All eyes on crypto in the next few months as they “may turn out to be one of the most important 6-month periods in the history of crypto.” The big question persists: are we going to crash like 2018? 

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