Good morning. Welcome to Tuesday Trades, part of our new series: BitPinas Daily. We will look back at all the major news and updates that happened this week. Crypto is global, but sometimes news that matters happens while we sleep. So we bring to you what’s happening in our space here and abroad. We highlight three to four important news of the past week and list down the rest.
Market Price as of March 2, 2021:
Bitcoin closed March 1, 2021, at $49,639 per BTC. We’re down 9% in the last 7 days and up 69% since the year began. This is also 15% below the all-time high of $58,640, which was hit on Feb. 21, 2021.
Bitcoin’s market capitalization stands today at $916,278,662,681 which is 59.72% of the entire cryptocurrency market. The entire crypto market, by the way, now has a market cap of $1,534,496,092,212 (+6%).
On the table above, there’s the cryptocurrency SLP. If you wonder what that is, check out this article: Playing Axie Infinity vs Minimum Basic Salary in the Philippines.
Cardano Hard Fork Makes it a Multi-Asset Blockchain
The hard fork, named “Mary”, will allow users to create new tokens that run on Cardano natively. This is just as one would on Ethereum. Coindesk was quick to point out that enabling issuance of new tokens was the first use case for Ethereum in 2017. What happened after that was the ICO mania.
According to Charles Hoskinson, the founder of IOHK, which is the company that made Cardano, the transition should be fairly simple for node operators. Because they just need to update their software.
Cardano is currently the third-largest cryptocurrency by market capitalization.
Citi: Bitcoin Could Become the Currency of Choice for International Trade
Citi researchers are forecasting that Bitcoin’s core properties, combined with its global reach and neutrality, could see it become the “currency” of choice for international trade in around seven years.
“A focus on global reach and neutrality could see bitcoin become an international trade currency. This would take advantage of bitcoin’s decentralized and borderless design, its lack of foreign exchange exposure, its speed and cost advantage in moving money, the security of its payments, and its traceability.”
But aren’t nations developing Central Bank Digital Currencies (CBDCs) to simplify trade? Citi explained that Bitcoin is better for this role because if the trade used Bitcoin, the government or any entity won’t be able to take steps to affect the supply and demand of the trade currency. This will decouple trade from political considerations.
At least one problem, Citi said, is Bitcoin’s scalability issues. At 5 transactions per second, it is 2,00 times slower than Visa.
“All of these views about Bitcoin’s potential and how it influences and helps to inspire new business models emerging in the blockchain domain are what leads us to call it the North Star. Whether it maintains this position and how far the potential transformation it has inspired extends are both unknowable at this time, but Bitcoin’s journey has clearly entered a new stage.”
“Bitcoin is at the tipping point of its existence and the path forward from here may have broad and widening repercussions.”
MicroStrategy Buys More Bitcoin
Michael Saylor’s buying spree shows no signs of slowing and stopping anytime soon.
Goldman Sachs to Relaunch Crypto Trading Desk
The desk is part of a broader push into digital assets that may see the firm attempt to launch a Bitcoin exchange-traded fund, Reuters previously reported. Coindesk reports that this trading desk is set relaunch mid-March.
What else is happening
- DeFi Protocols are Bringing in Record Monthly Revenue
- NFTs Aren’t Art? OK, Boomer
- Rakuten’s customers can now use Bitcoin for shopping
- Whale who sold Bitcoin before 2020 crash cashed out $156M before this week’s 20% dip
This article is published on BitPinas: Citi Research: Bitcoin is the North Star, Currently at a Tipping Point (March 2, 2021)