In the last eighteen months, cryptocurrencies have stormed onto the financial scene with a very loud bang. The cryptocurrency market is now valued at north of $500 billion and growing exponentially every year. At this rate, the cryptocurrency market will be worth trillions of dollars in just a few short years. This multi-trillion-dollar pot of gold is now firmly entrenched in global finance. As a result, what was once scorned, ridiculed, and considered little more than a pipe-dream is now being taken very seriously by almost every major financial institution worldwide
We recently examined the structural misunderstandings of cryptocurrencies that were expressed in a blog post by one of New Zealand’s largest banks ASB). However, it seems that this misunderstanding of cryptocurrencies, blockchain technologies, and the power dynamic between them and traditional power structures is endemic throughout the entire global financial system. Bloomberg just released a piece from its editorial board, revealing their own limited knowledge in this area.
With the recent “cryptopocalypse” that has wiped $250B in value from the cryptocurrency ecosystem in the last few days, one thing that has taken me by surprise is the seemingly coincidental moves in traditional USD FX markets. Over a 36 hour window from the beginning of the latest Bitcoin bear run, the USD fell almost two points in futures markets from 92 to 90, and the USD spiked downwards across all currency pairs.
This coin analysis series aims to give readers appraisals and knowledge of cryptocurrencies and platforms that are likely to succeed long-term by delivering real intrinsic value to those who partake in their economy. The author does not own any Syscoin, and this is an unsolicited review.
Last week saw Bitcoin cross the $4000 mark for the first time in a continuation of a long-term bull-run that has seen it rise from just under $1000 at the turn of this year. Naysayers are drawing comparisons to investment bubbles from years past that were succeeded by crashes: Great Tulip bubble, dot-com & housing, while advocates are pointing to the intrinsic properties of cryptocurrencies finally being reflected in their price.