Bitcoin is insurance against global uncertainty

Chamath Palihapitiya: Bitcoin is insurance against global uncertainty

„The very fabric of society is damaged, […] we all need a little insurance,“ declares the former Facebook executive

The price of Bitcoin (BTC) has risen significantly in recent weeks, even managing to cross the $40,000 mark. According to venture capitalist and billionaire Chamath Palihapitiya, BTC represents a Bitcoin Fortune hedge against global uncertainty as it is unrelated to individual government entities.

Citing a possible time horizon of five to 10 years, Palihapitiya predicts that Bitcoin will reach a price of $200,000:

„When you see everything that is happening in the world, you remember that our leaders are not as reliable as they used to be.

Therefore, just as a precaution, we need to have some kind of insurance under the pillow. Something that gives us access to unrelated coverage.“

Last year, the pandemic prompted governments around the world to take various measures to limit the damage to the economy.

In the specific case of the US, the Federal Reserve printed and spent vast amounts of money

Borderless and managed by the users themselves, Bitcoin does not require the control of any central authority. Furthermore, an October study published by Fidelity shows little correlation between BTC and other markets, such as gold and stocks.

Palihapitiya continued:

„It will become something much more important in the future, but for now we only have data on our hands to prove this.

The very fabric of society is damaged: until we find a solution to the problem, we all need a little insurance. That’s the reason for its current success: it’s really incredible, I would never have imagined it.“

The past year has seen a significant increase in Bitcoin adoption, especially by large institutional players. However, some key figures, such as Kevin O’Leary of Shark Tank, remain sceptical about the future of the cryptocurrency.

Total capitalization of cryptomoney exceeds $1 trillion

This is a historic first: the global capitalization of all cryptomoney has exceeded the $1 trillion threshold. A performance largely driven by Bitcoin (BTC), which dominates the market with 690 billion dollars.

New day, new record

According to data from the CoinGecko aggregator, the total capitalization of the encryption market exceeded $1 trillion last night. This is the first time in the history of cryptomoney that this symbolic milestone has been reached.

„The $1 trillion threshold cements cryptoney as an asset class that is no longer on the bangs of traditional finance, like a toy for retail investors,“ Jack Purdy told CoinDesk, financial analyst at Messari.

Bitcoin (BTC) absorbs more than 68% of this amount, raising more than $680 billion on its own. This is followed by Ether (ETH) with $135 billion, Tether (USDT) with $23 billion and Litecoin (LTC) with $11 billion.

The rise above this level is partly due to the explosion of Bitcoin Lifestyle share price in recent weeks, which now stands at $37,000.

The record for the last bull-run in terms of total capitalization was set on January 7, 2018, when it reached $853 billion before dropping to around $320 billion in just 30 days.

This is undeniably a major milestone for the entire cryptomatics industry, especially considering that its capitalization was close to $140 billion at the time of the mid-March crash. As always, the cryptomoney market will have shown its resilience in the face of the crisis and impressed by its performance.

By way of comparison, gold capitalization is currently close to $10 trillion. Together, crypto-currencies now represent 10% of the gold market, a gap that could tend to narrow over time.

In fact, the American bank JPMorgan estimates that Bitcoin would need to exceed $146,000 to match the total private sector investment in gold through exchange traded funds. A price per BTC that would bring its total capitalization to $2,645 billion.

South Korean video game conglomerate to buy Bithumb for $ 460 million

One of South Korea’s largest game companies has signed a memorandum of understanding to purchase Bithumb.

Bithumb is South Korea’s largest cryptocurrency exchange.

If the deal goes through, it will be the third cryptocurrency exchange under Nexon’s ownership.

Nexon, one of the largest gaming companies in South Korea and around the world, has announced that it will acquire the cryptocurrency exchange Bitcoin Code for around 500 billion won, or $ 460 million.

South Korean agency Maekyung broke the news , saying Nexon and Bithumb had officially signed a Memorandum of Understanding (MOU) to start the process.

The deal will allow Nexon to acquire an approximate 65% stake in the Bithumb exchange . Bithumb is currently the largest cryptocurrency exchange in South Korea, so the acquisition may be a natural fit for both companies.

This isn’t Nexon’s first foray into cryptocurrency

If the deal goes through, this will be Nexon’s third acquisition of a major cryptocurrency exchange. The gaming giant is quickly becoming one of the most dominant players in the crypto exchange space.

Nexon also has other popular exchanges such as Bitstamp and Korbit. Bithumb has reportedly been seeking a buyer for the property for some time . Another company almost bought it in 2018, but they may have finally found a perfect buyer at Nexon.

Agreement is not guaranteed

Although a memorandum of understanding has already been signed, it does not guarantee that the agreement will be completed.

Uncertainties persist regarding management practices at Bithumb. The Seoul Metropolitan Police Agency in South Korea investigated the exchange and its chairman Lee Jung Hoon in September.

Authorities accused the company of selling its cryptocurrency, BXA, without listing it. Bithumb reportedly sold 30 billion won in token, nearly $ 30 million, causing heavy losses for investors after failing to list the token.

Institutional money is pouring in

The investment reveals the organization’s confidence in the longevity of the cryptocurrency trading market .

Several large international organizations have invested in or integrated crypto-trading into their platforms. One such example is PayPal, which recently launched an internal trading platform that allows users to trade major cryptocurrencies like bitcoin and ether.

PayPal’s platform has just taken a new step with a daily trading volume of $ 100 million. This figure is particularly high for a company that has just launched trading capabilities.

With all-time highs for Bitcoin , while Ethereum is on the cusp of its own record, capital will likely continue to flow.

El administrador de fondos Bill Miller cree que las corporaciones pueden comenzar a invertir más fondos en BTC

En una carta reciente a los inversores, el administrador de fondos de cobertura Bill Miller destacó el excelente desempeño de BTC sobre otros activos criptográficos, señalando su excepcional valor de mercado.

El prominente administrador de fondos de cobertura y filántropo Bill Miller dijo que las grandes organizaciones podrían comenzar a invertir más fondos en Bitcoin Machine considerando la situación económica actual a nivel mundial. Desde la crisis económica mundial causada por la pandemia de coronavirus, el administrador de fondos de cobertura ha sido optimista sobre la principal moneda digital.

En noviembre del año pasado, Miller dijo que cree que todos los grandes bancos poseerían Bitcoin en un futuro cercano. También agregó que la demanda de BTC de los inversores institucionales está aumentando por encima de su oferta.

Él dijo :

“La historia de Bitcoin es muy fácil. Es oferta y demanda. La oferta de Bitcoin crece alrededor de un 2,5% al ​​año y la demanda crece más rápido que eso „.

Además, Miller publicó una carta de mercado del cuarto trimestre de 2020 a los inversores el 5 de enero. En la Market Letter, el administrador del fondo de cobertura señaló que Bitcoin ha crecido más del 50% desde mediados de diciembre y se ha desempeñado mejor que otras altcoins en los últimos 20 años. También mencionó que la capitalización de mercado de Bitcoin es mayor que la de JPMorgan y Berkshire Hathaway.

Refiriéndose al creciente número de inversores institucionales de BTC, Bill señaló además que Microstrategy, Square y MassMutual habían adquirido grandes cantidades del activo digital

Además, Bill también declaró en la carta que Bitcoin tiene otras ventajas sobre el oro.

En el momento de la publicación, BTC ha subido un 5,59% a $ 35,320.58 y tiene una capitalización de mercado de casi $ 663 mil millones.