Hardly anyone in the world can now refute the fact that cryptocurrencies have firmly entered our lives, forming an alternative opportunity for financial freedom, and becoming an industry. And events in the crypto industry are developing so rapidly that it is simply oversaturated with news.
News digest of the past week
The crypto universe is constantly in motion, and therefore some events in it replace others. Let’s take a look at what has happened in the space over the past week.
- The current value of Bitcoin exceeds the value of Visa and MasterCard combined
Bitcoin has had its share of the market frenzy and collisions that led to the cryptocurrency’s downfall, but it has passed the test of time and, with enough perseverance, has achieved superiority over the world’s three largest banks by market capitalization. Not only did it pass the $ 60,000 threshold, but it also managed to overtake Visa and MasterCard in terms of total value and market capitalization.
When it broke the $ 61,700 mark, Bitcoin’s total market capitalization was about $ 1.15 trillion, surpassing the combined market capitalization of $ 1.08 trillion for Bank of America, JPMorgan Chase, and the Commercial bank of China. This is a significant achievement for Bitcoin, a cryptocurrency that has previously been questioned by the world’s largest financial experts. How many times it was predicted that the Cue Ball would fail, but he did the incredible not only for himself, but also for those who continued to believe in him.
The list of the BTC achievements does not end there, as they also surpassed Visa and MasterCard, which are the world’s largest payment networks in terms of market capitalization. Since their combined market capitalization is about $ 871 billion, and Bitcoin — $ 1.15 trillion, the BTC definitely occupies a leading position in this sector.
Gold cannot remain a major investment asset for long
Recent data obtained from network analytics shows that Bitcoin accounts for 45% of the gold stored in the form of investments, and is approaching about 10% of the gold that exists in the physical markets. This is not just an achievement. If Bitcoin’s growth continues at its current rate, the hour is not far off when it will definitely replace gold as the main source of investment for people.
It may not happen right away, or it may take years to achieve it, but he has certainly started the race, even if he is at the very beginning.
- The total volume of the main crypto exchanges in South Korea exceeds the volume of the country’s stock market
Recently, the price of BTC has managed to rise to a record high, when it reached more than $ 61,000 last Saturday. This has led to crypto exchanges based in South Korea experiencing so much traffic that the volume of transactions performed has actually exceeded the number of transactions on the local stock market. This is extremely unprecedented and shows the changing balance of power when it comes to cryptocurrency and digital trading, as it is clear that consumers and investors are looking for alternative ways to earn money.
The accumulated 24-hour volume of several crypto exchanges in South Korea, including, Korbit, Bithumb, UPbit and Coinone, exceeded a whopping $ 14 billion. Just a few days earlier, the same figure was about $ 10.5 billion for the KOSPI (Korean Composite Stock Price Index). In addition, the amount of 10 billion rubles. $ was also listed on KOSDAQ (Automated Quotations of Korean Securities Dealers).
This rapid increase in volume was a direct result of the BTC price spike, which rose to 61k, although it fell to less than 60k shortly after.
Recorded volumes may not always be accurate
Of course, the huge volume recorded on the cryptocurrency exchanges of South Korea is undoubtedly beneficial for local residents both in terms of the development of the domestic and international market. However, it should be noted that the amount of data recorded is not always accurate. This is largely due to the spread of volume inflation itself. In fact, a number of these aforementioned crypto exchanges in South Korea experienced business difficulties as well as regulatory challenges in 2020.
In August of this year, the third-largest cryptocurrency exchange, Coinbit, was seized by the authorities over allegations that most of the transactions recorded through them were falsified through flushing trading. At the time of this writing, Coinbit’s volume over a 24-hour transaction period was just over $ 900 million.
- New Bill Could Lead to Severe Sanctions against Indian BTC Users
It is no secret that India has almost always been against the idea of cryptocurrency and digital trading. The main reason for this hostility is that they often cannot tax those who use cryptocurrency, and also cannot regulate the industry due to the fact that companies are usually decentralized and do not have a regulatory body.
Under the new law soon to be enacted by the Government of India, cryptocurrency users and investors will have even more cause for concern as this new law will completely ban any use of cryptocurrency in the country. The authorities even offered prison sentences for those found guilty of violating this new law. However, in the end, they agreed to a large fine as a severe punishment. However, in the future, popular cryptocurrencies such as Ethereum and even Bitcoin should be completely banned, in addition to all crypto assets.
Finance Minister Nirmala Sitharaman claims that despite the government’s recent announcement, there will be a small window of opportunity for cryptocurrency users in the near future. It is working on passing a bill that will allow a limited number of users to “experiment” with cryptocurrency, but it is still unclear how this will happen.
India may not be lost yet, as hope for cryptocurrency remains. Regardless of what happens, it is clear that many Indians want cryptocurrency to be introduced in their country. Many would assume that India is an economic superpower these days, and would be right to think so. However, only time will tell what the future holds for cryptocurrency in India.
- Alfred Kelly believes that cryptocurrencies will become mainstream
Cryptocurrency is a platform that almost everyone is more or less familiar with by now. The idea that someone can earn income by trading on the Internet using different currencies has been around for many years, and it has conquered the world. Alfred F. Kelly Jr., the current CEO of Visa Inc., sincerely believes that cryptocurrencies can turn from an alternative to the norm within the next five years.
It is worth noting that while Kelly does believe in the power, influence and popularity of cryptocurrencies, he nevertheless stated that there is no guarantee that they will become mainstream. The reason for this is that crypto assets are inherently extremely volatile and in most cases do not have a regulatory authority. They are also strongly condemned by most governments, as evidenced by the current SEC lawsuit against Ripple and the ongoing political situation regarding cryptocurrency in both India and South Korea.
However, the CEO of Visa Inc. he wants his company to act as an intermediary for the cryptocurrency in the future. During an interview with Fortune CEO Alan Murray, Kelly admitted that he does not have the technical or in-depth knowledge of the crypto industry to be able to make guaranteed predictions about the future of the industry. However, he is smart enough to understand that his company, nevertheless, must be involved in this, because otherwise, more opportunities will be missed than the CEO would like.
Visa is working at the possibility of cryptocurrency payments
- Morgan Stanley offers access to Bitcoin, but only for 2.5% of its wealthy clients
Morgan Stanley now offers about 2.5% of its clientele access to Bitcoin and other cryptocurrencies. The terms that are offered are far from fair, as they only support the rich clientele of the investment bank, and state that the client must have at least $ 5 million in their bank account, plus the account must be about six months old, to qualify for this Bitcoin offer.
But despite all this, there are additional conditions that customers will have to meet in order to access this feature. There are two trusts owned by digital wealth management, and one of them is controlled by NYDIG, which is a bitcoin subsidiary of Stone Ridge, and it is necessary to become one of their clients. That’s right, they can only service about 2.5% of their equity in the first and leading cryptocurrency in the world.
As for new investors, they will have to invest at least $ 5 million in a trust that is controlled by Galaxy digital, but this is not the end of the road to owning a Chunk. You still need to make a donation of about $ 25,000 to the Galaxy Bitcoin foundation to be able to access the current BTC offered by Morgan Stanley.
Peter Schiff’s Observation Deck
Extreme Bitcoin critic Peter Schiff had a few thoughts of his own about these restrictions on the part of Morgan Stanley, which allow only 2.5% of the wealthy elite to participate, while limiting a number of investors.
According to Schiff, Morgan Stanley really understands how sensitive Bitcoin is as a digital asset, given the volatility of the crypto market. According to the critic, this is a good move for the bank, since the elite side of the investment chain will get what it wants: they have money and a keen thirst for risky investments, and if all goes well, the bank may allow other low-level investors to step in.