Arguably, the move is a very good one for PayPal. PayPal’s crypto play seems to have brought more users and higher transaction volumes to its platform. More users than ever before are moving to crypto, particularly younger people and millennials internationally. It has served PayPal well to get in there early.
This move was also great for Bitcoin. It certainly brought them media attention. It also helps the world see how Bitcoin – and crypto – can be made user-friendly and safe in a multitude of uses. It makes a statement to the world that Bitcoin is good, works and has use cases. PayPal’s acceptance of Bitcoin and crypto spells out in big letters to any critic claiming crypto is just for scams or crime that Bitcoin is ok.
Yet, in many ways, this move benefits PayPal more than it does Bitcoin. Bitcoin already has its users, anyone who really wanted to buy Bitcoin by now already will have done so. PayPal however has been rather static. Crypto is a new offering for its users and a new way to attract both more users and more transactions. There isn’t really a reason to check Paypal’s app on a daily or frequent basis, unless users are making a transaction. Accepting crypto means that the amount of times its users check the app – and its transaction volume – has gone up!
PayPal has around 350 million users and 26 million merchants. At the time PayPal started to accept Bitcoin transactions, in October last year, the market cap of PayPal – approximately $250 billion – was roughly the same as that of Bitcoin – approximately $240 billion. Now, PayPal’s has gone up to around $280 billion. Bitcoin, however, is currently hovering around $750 billion and has gone far past that previously. PayPal is, in many ways, replaceable. Sure, PayPal has many users and has first user advantage for the service it offers (and strong backers) but, in theory, PayPal could be replaced by another similar app with a better user experience, cooler marketing and a better brand to appeal to a bigger and younger audience. On the other hand, it’s hard to imagine that Bitcoin could ever be fully replaced. For sure, there are thousands of other cryptocurrencies, but they are simply not the same, for many reasons. Bitcoin has first mover advantage, is trust, safe, secure, has a great ecosystem of loyal (and highly skilled) supporters and developers, a big user base and is developing rapidly as well as other differentiating factors.
PayPal’s acceptance of Bitcoin and crypto spells out in big letters to any critic claiming crypto is just for scams or crime that Bitcoin is ok.
It’s not yet known how much Bitcoin and crypto holders will use PayPal to pay with Bitcoin. Generally, most Bitcoin holders want to hold on to the digital currency for the long term, in the belief that it will go up in value. Bitcoin tends to be seen as a nest egg rather than a spending pot.
PayPal’s public endorsement of Bitcoin is great. But it doesn’t change as much as one would think, either for Bitcoin, or PayPal, or traditional banking. Any merchant or user accepting Bitcoin via the app won’t actually receive Bitcoin. The digital currency will be converted in same time to their choice of fiat currency, meaning that as far as they’re concerned, they receive fiat. Had PayPal enabled its merchants to accept and hold money in Bitcoin, and to make other payments in Bitcoin, that might be a slightly different story.
PayPal has indicated they are keen to work closely with regulators and governments to ensure legal compliance in their crypto offering. This will also be true of the many other payment firms looking to accept crypto or already that have a crypto offering. This will potentially help regulators come up with ways to make it easier for other crypto related offerings to get regulated and thus be accepted and used in traditional finance. Other payments firms may also follow Paypal’s lead, making crypto the norm rather than the exception in the roster of offerings expected of traditional finance.
So is PayPal’s acceptance of Bitcoin likely to drastically change anything for traditional banking? No, probably not. The move helps win over some new users for PayPal, ups its transaction volume and increases visits to its app. This in turn could help PayPal come up with new ways to monetise its platform. It’s helped prove the legitimacy of Bitcoin, and more broadly crypto, and is another message to traditional finance that accepting crypto will become far more mainstream soon. Even if traditional banks start allowing their users to accept crypto transactions, most likely they will be cashed out into fiat in live time, just as is happening now with PayPal. Will this move be the one that makes traditional banks open up Bitcoin custody offerings to all their clients? No. Not yet, at least.
Crypto Wars: Faked Deaths, Missing Billions and Industry Disruption by Erica Stanford is published by Kogan Page, priced £14.99, available online and from all good bookshops.
In July, the European Central Bank (ECB) announced its plans to launch a digital currency. In response to a rise in online payments and the potential threat that could come from others issuing a digital means of payment, the ECB has decided to press ahead with its own digital currency. This aims to help protect its monetary sovereignty by attempting to limit the use of rival means of payment.
This will not be a quick process. The next two years will be spent on design and tests, followed by a launch three years later. However, the announcement highlights that traditional fiat currency won’t be the sole payments method in years to come. Of course, this move does not mean the same will happen for the UK, but with Rishi Sunak and the Bank of England making warm noises about digital currencies, it’s unlikely the UK won’t follow suit.
Will Digital Currencies Work as Cash Replacements?
Of course, there are many questions swirling around digital currencies – namely if they’ll be a digital version of cash, if they will eventually replace cash or just simplify cross-border payments – but the fact of the matter is cash appears to be becoming digital, meaning banks need to get ready, even if the day-to-day reality could be years away.
Taking a step back from this new development, it’s fair to say financial services was already in flux, with the pandemic turbo-charging many of these shifts. Previously, banks, building societies, pension providers and wealth management had defined roles within the market, and whilst there was some interaction between the providers, people had their pots of money and tended not to move them around. In short, loyalty mattered. But this, like many other aspects of financial services has now changed. New entrants are flooding the market and offering platforms that bring vendors together thanks to Open Banking enablement. Therefore, consumers are flooded with choice. It’s now simple to amalgamate pensions or to transfer ISAs to get a better rate. Plus, with digitalisation, self-service is now positively encouraged. One clear example being online brokerages disrupting the investment space and allowing consumers to own snippets of companies, instead of requiring payment for full shares. Consumers are used to a digital financial life – so why not extend this to currency?
The world is moving towards a more digitised way of life – and banking, payments, savings and investments are certainly part of this shift.
No matter where a company sits within financial services, it’s clear that if digital currencies become reality, firms will need to accept them, which throws up multiple issues. Integration with fiat currency is perhaps the most pressing. However, the growth of cryptocurrencies over the last five to ten years and their recent acceptance by large institutions, shows there’s a clear trend. Financial portfolios should no longer be cash, bonds or equities – a small exposure can be digital. For me, this coupled with the concept of digital Pounds, Euros, Dollars or Yen, signals it’s time for banks to start thinking at the very least what measures should be put in place to lay the foundations for adoption. Surely commercial entities could benefit from showing customers they’re ready to take action, and providing an alternative to investment platforms as a source and store of these assets?
But what’s required? Here are five key aspects which can help determine a starter strategy.
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System resilience
Like any fiat system, digital currencies would need to be considered critical national infrastructure – meaning uptime and defence are impenetrable 24/7, 365 days per year. Aside from this requirement, the new system would need to be protected from cyberattacks, whilst also handling high volumes of transactions. Systems should be able to process transactions immediately (or as instantaneously as possible) along with having strong privacy protections.
For banks looking to support and facilitate a lot of this traffic, leveraging blockchain seems the most logical choice, as the roles they will play in these transactions will be different to a normal transfer. Whilst money may well flow from one account to another, banks will also likely be responsible for updating the record of who owns which Central Bank Digital Currency (CBDC) balance. Of course, technicalities are still to be worked out as to how money will move around, but it’s likely the CBDC itself would be a cash-like claim on the central bank. This way, the central bank avoids the operational tasks of opening accounts and administering payments. Banks can continue to perform retail payment services, meaning there are no balance sheet concerns with private sector intermediaries. This in turn helps boost operational resilience, as this architecture allows the central bank to operate backup systems in case the private sector runs into technical outages.
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IT infrastructure
The potential introduction of digital currencies will be a testing experience for many – especially while we don’t know if it will come to fruition, or how it will work. Inevitably that will lead to a lot of speculation. One thing is for sure though, it may well require an overhaul of technology to integrate it, which will have repercussions for the IT stack. Unfortunately, technology to support such initiatives are likely to be considered ‘new’ to the majority of existing financial service organisations.
It’s well known that many banks struggle with legacy technology. They are not alone in that and big names across other industries have the same problem. The problem the banks have is that they’ll be the ones facilitating most of the transactions, whereas other players (retailers, for example) will mostly be receiving them. Whilst I don’t believe integration won’t be a problem for newer neobanks, they are in a far stronger position than their older rivals. Now is the time to get on the front foot and start thinking about what transformation will be required to help set the traditional banks on the right path. This includes safeguards which have been a criticism of cryptocurrencies – how to implement anti-money laundering protections, so the same due diligence a traditional banking service provides is applicable to its digital twin.
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Centralised vs decentralised finance
The whole concept of digital currency is an interesting one, based on the fact they add an element of decentralised finance to the country’s monetary policy. Of course, they will need to comply with current protocols, but they’ll also challenge how these protocols work.
To enable peer-to-peer transactions, digital currencies will need to make use of centralised governance frameworks that are authoritarian in nature — i.e., controlled by a single body. However, centralised blockchains are slower. Decentralised solutions like distributed ledger technology could make transactions quicker and more streamlined. To achieve widespread adoption, transaction speeds need to be efficient (much like an online bank transfer) otherwise consumers will not want to switch.
Decentralisation would also enable individuals to own their own wallets (akin to cryptocurrencies) and have their own private keys to help bolster security. This can help avoid data breaches and reduces risk. If a hack were to occur, it would stop one, single large fund being stolen – just a single person’s funds. Whilst this is a terrible scenario, it would be catastrophic if one pot were accessed. It would undermine any faith in the system.
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Payments
Simplifying cross border payments could provide benefits in terms of e-commerce, travel and the labour market. However, it will have significant requirements, such as aligning regulatory, supervisory and oversight frameworks, AML/CFT consistency, PvP adoption and payment system access. The eventual international adoption of digital currencies is also likely to proceed at different speeds in different jurisdictions, calling for interoperability with legacy payment arrangements. Whilst this sort of information will likely come from G20 discussions, banks need to start addressing how to facilitate this and how this can be achieved within the current stack.
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Consumer adoption
Whilst not a technical point, banks will likely share responsibility with the Bank of England in communicating the launch of any digital currency and how it will work. Provision and service is a key differentiation. We also need to acknowledge that the recent volatility in cryptocurrencies may make consumers wary of adopting digital currencies, which impacts their adoption. Being able to clearly communicate how digital currencies will integrate with current offerings and the benefits of this early, will help with customer uptake and acquisition.
Although the adoption is still conceptual, thinking about potential customer provision and how it might be integrated into current platformification/product offerings can help with service design and ultimately, user experience.
The world is moving towards a more digitised way of life – and banking, payments, savings and investments are certainly part of this shift. Financial institutions have had to manage this evolution already, so in some ways, a digital currency is a logical next step. For it to survive, however, the necessary infrastructure must be present for it to thrive, which banks can provide if they put the necessary building blocks in place now. The change will not happen overnight, or potentially in the next five years, but to win the hearts and minds of customers, provision will need to be seamless – placing customers at the heart.
When it comes to establishing the journey that will lead you to achieve the greatest points of crypto success, you have to make sure that you have all of the additional segments into consideration. This is of great importance because if you are interested in reaching the ultimate points of achievement and earning insane amounts of profits, then you should explore every possible aspect of the crypto process. To begin the actual journey of this notion, you will get a chance to go through the most important decision-making process that will determine the whole future outcome. This is where you will have to settle on which crypto aspect you are going to explore. If you have been interested in the trading concept of the crypto world, then this article is the perfect starting point for you.
Having all of this explained, in order to make the next big step that will allow you to begin the overall crypto trading process, you will have to focus your attention on a specific digital value. All of this will help you narrow things down, thus allowing you to explore all of the important trading points that Bitcoin has to offer. Here, you will be able to explore the most prominent digital value, thus learn all about your role as a future Bitcoin trader. With all of this in mind, it is time to start the actual trading process, thus explore the most innovative Bitcoin trading solutions that will come your way.
Let’s begin with the most valuable Bitcoin trading tips.
Find a User-Friendly Bitcoin Trading Platform
Starting this segment, the most significant tip that we have to suggest that will help you establish the beginning stages of your trading journey is the notion of finding a suitable and user-friendly trading platform. This is the case just because if you are just now starting to explore the world of Bitcoin trading possibilities and you have little to no trading experience, then you should start by exploring the concept of using Bitcoin trading platforms.
This is probably one of the most innovative trading solutions that have been created in a way to give people that are interested in the world of crypto trading a rather equal chance at reaching the points of success. This method is based on the latest technological advances and it is completely automated. Both features will give you the needed push into the right Bitcoin trading direction.
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Follow the Clear Bitcoin Trading Platform Steps
Once you have successfully found the specific method that you should like to explore, you can access Bitcoin trading sites and thus explore all of the additional features that are incorporated within these popular Bitcoin trading platforms. This is where you will be able to explore every possible aspect that the usage of these platforms has to offer, thus focus on exploring the most profitable trading deals.
To begin the actual process of Bitcoin trading using this particular method, you will have to begin with the creation of your online trading account. This segment is rather simple to achieve because you will get a chance to follow the quick and easy registration form. Here, all you need to do is provide all of the required information, place a strong and secure password, and approach the next big step of your trading journey. Once all of this is completed, you will have to place the initial trading deposit, thus activating the most powerful trading algorithm.
Closing Remarks
Make sure to incorporate all of the significant trading points that we have discussed so far, thus approach the concept of reaching Bitcoin trading success.
These days Bitcoin is as valuable as gold and thanks to that fact, thousands of people are looking to invest in it and make a profit. Trading with this cryptocurrency has become a very popular occupation. Not only that but there are many stories of how Bitcoin changed the lives of many people and even managed to turn some traders into overnight millionaires.
Recently, the number of traders that are registering to Bitcoin’s network has been increasing a lot. The main reason for that is because experts believe that Bitcoin has the potential to rise even more and possibly reach $100,000 by the end of 2021.
That is exactly the topic that we wanted to discuss in this article. We’ll be taking a look at the two main reasons which lead experts to believe this claim. But, before we dive into the details, let’s check Bitcoin’s current state.
Current State
At the moment, Bitcoin’s price fluctuates around $40,000. Back in April 2021, it peaked at $63,000 but dropped in value shortly after. Even though Bitcoin was stable for the bigger part of 2021, the sudden drop in value is what attracted traders as they see this as a golden opportunity to invest in Bitcoin.
They use trading sites to sell their Bitcoins after they earn them. Trading sites have become extremely popular in the recent period due to the fact that they provide traders with fantastic services, one of which is an AI system that is capable of determining the future price of Bitcoin.
It collects all the data about his cryptocurrency, analyses it, and then shares the results with traders. Thanks to the AI system, traders can battle the volatility rate and maximise their revenue. Reputable trading sites use this type of software and have a very high profitability rate.
Apart from making a profit with Bitcoin, this cryptocurrency is currently accepted as a payment method at many global brands. The list includes the likes of Starbucks, Microsoft, Wikipedia, AT&T, Overstock, and Home Depot.
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Now that we’ve cleared up everything there is to know about Bitcoin’s current state, let’s check out the two main reasons behind Bitcoin’s potential rise in value.
The Institutional Interest
The first reason why Bitcoin is expected to rise in value is the massive institutional interest. We mentioned that there are tons of global brands that accept it as a payment method. If you are wondering how that influences Bitcoin’s price, it is because they are contributing towards its stability. The more stable Bitcoin is, the higher its value will be.
Speaking on that note, it is worth noting that Bitcoin’s price rose drastically after the famous Tesla investment. Not only did Tesla manage to spike the value of Bitcoin by more than $4,000 in a few days, but it also motivated many other companies to invest and integrate Bitcoin into their systems.
Halving Events Lead to It
The second reason as to why it is believed that Bitcoin will rise is halving events. History showed us that Bitcoin always peaks a year and a half after halving events end. The last halving event was held in May 2020.
With that logic in mind, a year and a half will pass in the fourth quarter of 2021. While experts do not have an accurate date of when Bitcoin’s value will spike, it is expected for it to be around November.
These two reasons are extremely reliable and backed by facts, which is why many traders believe them and are already looking to invest and possibly make a profit.
In February, Tesla joined the exclusive club of companies that support Bitcoin. The car manufacturer managed to shock the stock market after they announced that they invested $1.5 billion into this cryptocurrency. In doing so, they expressed their full support for Bitcoin and everything that it stands for.
It goes without saying that this massive investment caused a lot of stir. That is exactly the topic that we wanted to discuss in this article. We’ll be taking a look at the impact of the Tesla involvement with Bitcoin and see whether it was good or not. Let’s dive into the details.
Tesla Accepts Bitcoin as a Payment Method
Shortly after they invested in Bitcoin. Tesla announced that they would accept this cryptocurrency as a payment method, which has massive benefits for all the users. The first and most obvious benefit is the fact that they will be able to use this cryptocurrency to purchase some of the best vehicles on the market.
The second benefit is the fact that Tesla is a major global brand that supports Bitcoin and thus contributes towards its stability. Just for the record, some other global brands that support Bitcoin are Microsoft, Shopify, Expedia, Overstock, Whole Foods, Starbucks, Wikipedia, and AT&T.
The Price Surge
The best outcome from their investment regards Bitcoin’s price, though. Just before the $1.5 billion investment was announced, Bitcoin was valued at around $47,000. After Tesla went public, Bitcoin’s value sky-rocketed and went over $50,000.
The massive surge attracted numerous traders who were more than happy to start trading with Bitcoin and make a profit out of the recent events. As you know, Bitcoin has a very high volatility rate and events such as these can have a massive impact on its price.
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Bitcoin trading sites subsequently recorded a massive rise in the number of registered traders. These are reputable platforms that offer great services to all registered players and have a very high profitability rate. Thousands of new people joined the networks and tested their skills to see whether they could make a profit out of the current Bitcoin situation.
Many Companies Followed in Their Footsteps
It is safe to say that Tesla’s investment proved to be extremely effective and efficient for both Bitcoin and the company. Why? Shortly after their investment, it was reported that Tesla earned $1 billion in profits. Not only that, but the rumours alone drove their stocks and allowed the company to bag $100 million.
So, many other companies decided to follow in their footsteps and invest in this cryptocurrency and integrate it as an accepted payment method. As for the reason why are they willing to trade with Bitcoin, it is because Bitcoin has numerous advantages over regular payment methods.
For starters, all transactions are instant. Due to the fact that banks are excluded from the process, the users can mine Bitcoins, thus process the transactions immediately. Not only that, but fees are also not charged. And finally, Bitcoin utilises a method called cryptology. Thanks to this technology, all Bitcoin users gain a certain level of online anonymity and boost their security.
These advantages are beneficial to both companies and customers as they are able to purchase products and services in a much more efficient manner.
Conclusion
As you can see, the impact that Tesla had with the Bitcoin investment was major and extremely positive. Not only did it allow the price of Bitcoin to rise, but it also contributed to its stability. Many other companies also followed in their footsteps, and thanks to the increased interest, experts believe that Bitcoin can rise as high as $100,000 by the end of 2021.
Bitcoin’s reign over the crypto market has been going strong for over a decade now and with good reason. The world’s first cryptocurrency might be getting up there in age, but the one thing it hasn’t stopped doing in all its time on the scene is growing. Bitcoin is always changing, and in most cases, it’s for the better! Unlike most of its competition, Bitcoin pays attention to what users need and adjusts accordingly. While there are plenty of excellent examples of this, one of the best ones comes from the top-notch Bitcoin software that users can’t seem to get enough of!
Crypto Wallet Software
Bitcoin Wallets are the most essential tool in any Bitcoin user’s arsenal. The name of this software explains it all. Since Bitcoin is a digital currency, users need a way to store it in the virtual space so they can use it throughout different devices. Sure, this might sound like an easy enough feat, but just like old-school wallets, Bitcoin wallets come with the risk of theft. Unfortunately, there are plenty of people online that aren’t above messing with other people’s property, and with Bitcoin carrying a lot of worth, Bitcoin wallets are a prime target for hackers.
The bad news is, we doubt that hackers will ever stop targeting users that have worked hard for their Bitcoin. The good news is that Bitcoin wallets have come a long way when security is in question. While in the early days of Bitcoin this software might not have had the best protection, it’s currently one of the best ways to keep your Bitcoin safe. These apps are updated with new security patches regularly, and they have the added benefit of being insanely convenient when you need to pay for something on the fly!
Automated Trading App
Automated trading apps are the Holy Grail of apps when it comes to profiting, especially for newbies that are taking their first steps into the world of crypto. If you’re familiar with traditional Bitcoin trading, then you know that it can be a very hard sell. While it is the most profitable way to earn Bitcoin, it can be insanely demanding. Users need to learn everything they can about cryptocurrencies, research market trends, and experiment with different strategies.
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These apps are so beloved because they practically discard all of the requirements of traditional Bitcoin trading and give everyone a fair shot at profiting. They use advanced AI algorithms that gather information from the latest news on Bitcoin, and use what they learn to invest in profitable market opportunities automatically. Thanks to this, not only is everyone privy to a chance at becoming a Bitcoin trader, but they also don’t need to invest much time into the activity.
Remote Mining Software
Like Bitcoin trading, Bitcoin mining has been around since the very release of the cryptocurrency. While Bitcoin mining has lost plenty of its appeal over the years, tons of Bitcoin enthusiasts still go for this option. A big reason why so many people are still opting in to be Bitcoin miners is because of the top-notch mining software currently available out there, and one of the best choices for Bitcoin miners these days is the coveted remote mining software for mobile devices.
The name of this software might be a bit misleading. It’s virtually impossible to mine Bitcoin through mobile. Instead, what this software does is give you more control over your mining rig, so you don’t have to stay glued to it 24/7. With the help of these apps, users can track their progress anytime, anywhere, make adjustments, and even start and stop the process should the need arise. In hindsight, Bitcoin mining isn’t for everyone, and we don’t recommend it unless you can afford to spend insane amounts of money on premium equipment that can get you off to a good start.
This is a revolutionary cryptocurrency that did not generate much publicity when it was developed in 2008. But, over the following decade, Bitcoin would grow in both its popularity and its use among businesses and organisations around the world. If you're wondering about the background of this cryptocurrency and what propelled this kind of meteoric rise to a market cap of over $1 trillion, we cover everything you need to know below.
Creation of Bitcoin
Bitcoin was created by Satoshi Nakamoto in 2008, along with the help of other supporters of Nakamoto and its cyberpunk movement. Bitcoin, also known by its ticker BTC, is a distributed cryptocurrency that it is powered by blockchain technology which is a decentralised, peer-to- peer electronic cash system also developed by Satoshi Nakamoto and other developers that worked on the network.
Bitcoin was launched when the world was facing a global finical crisis. Hence, the blockchain network was created in a way that allows it to function based on the input of its users and without the influence of third parties and financial institutions.
The popularity of Bitcoin started to grow after the first halving that occurred in 2012, and the price has surged to $12, which may seem as insignificant movement, but at the time, it showed that the number of supporters in Bitcoin was increasing.
Also, the primary option in obtaining Bitcoin was through mining, and as the number of supporters was growing, there was a need for potential users to trade, reach a consensus about the price of BTC, and make Bitcoin accessible to a wider audience.
Trading BTC
These trading sites act as either brokers or dealers, and users are able to exchange fiat currencies into BTC and vice versa. The first exchange platform was Bitcoin Market, established in February 2010. It doesn't exist today, as there were technical and security issues. Nowadays, technology has progressed significantly, and there are lots of different trading sites that offer a lot of options for their users along with high-end features.
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But also, the popularity of Bitcoin has been boosted thanks to automated trading sites that make trading easier and more accessible to crypto newbies. An automated trading system executes trade automatically and quickly, without serious input from the users. In fact, you only need to spend about 20 minutes setting up your account and trade live. If you want to trade on some of these sites, you can register by investing $250.
Demand for BTC
The demand for BTC was going up, and so was the price, because Satoshi Nakamoto established a decentralised blockchain system that cuts the available supply in half every four years or when 210,000 blocks are mined.
Today the block award is just 6.25 BTC, which makes the mining process more expensive and less profitable for solo miners, which is why they work together or establish mining farms and pools.
But, what's more, the entire number of BTC is capped at 21 million. This also helped with the popularity of Bitcoin because it means that the supply is predominantly smaller than the demand, and as the demand was significantly increasing, the supply wasn't rising at the same pace as the demand, and this is why the price is surging.
Conclusion
Lastly, the support from reputable investors only solidifies the position of Bitcoin as a precious cryptocurrency, and we see a lot of big brands like Starbucks, Microsoft, PayPal, and Tesla accepting Bitcoin payments, which only further helps with the mass adoption of Bitcoin. In conclusion, Satoshi Nakamoto designed a cryptocurrency that is not only rare but has created a blockchain network that propels its growth.
Bitcoin wallets are an essential part of every Bitcoin trading platform, and otherwise, you are required to have a crypto wallet for any other BTC transaction. In case you're just starting out as a Bitcoin investor, it is crucial to familiarise yourself with Bitcoin trading and wallets. In this article, we cover the important aspects of Bitcoin wallets and trading platforms that will help you get started with Bitcoin trading.
Essential Aspects of Bitcoin Wallets
A good way to think about Bitcoin wallets is as a place that is designed to store your BTC safely. Security of your BTC is of paramount importance, therefore make sure to take the time and choose a reputable and trustworthy provider as well as all a type of crypto wallet that works for you.
As we mentioned, there are different types of a Bitcoin wallets, but they generally need to have a private and public key in order to be able to function on the blockchain network. And, at the same time, they offer security and the option to send and receive BTC. The purpose of the private key is to generate numerical proof that the transaction is unique to your Bitcoin wallet, and it is also used to sign each BTC transaction.
When it comes to the public key, it should be noted that it is 256 bits long and it features your public Bitcoin address, while the purpose of the wallet is to allow you to receive BTC transactions and ensure that you're the owner of that Bitcoin wallet.
It's also worth noting that the BTC transactions remain confidential in terms of the identity of its users; however, your public Bitcoin address is displayed on the blockchain network along with the data about BTC transaction. If you're a business owner, for example, you would like to share your Bitcoin address with your customers in order to receive BTC payments.
Essential Aspects of Online Trading
Some of the essential aspects of online trading are the option to buy, sell BTC, or trade for other currencies, including altcoins. One of the latest trends in crypto trading is automated trading sites, which facilitate trading based on defined sets of instructions.
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Therefore, automated trading platforms can identify trading opportunities quickly and trade on a high win rate and accuracy rate. In fact, some trading sites have an accuracy rate of up to 90%, and therefore you aren't required to spend a lot of time and manually make decisions because the AI-based software conducts trading for you. You need only about 20 minutes to set up your account.
Different Types of Wallets
There are different types of wallets and they can be connected to the Internet, or they function entirely offline and are designed to prioritise the safety of the BTC funds. So, based on this information, there are hot and cold Bitcoin wallets. The hot wallets maintain an online connection, whereas the cold wallets are known for operating offline.
One good example is a hardware wallet, which is basically a physical piece of equipment like a USB, and its main purpose is to keep your BTC safe. Hardware wallets are not as accessible and convenient for Bitcoin trading online.
In contrast, you will find a lot of different types of hot wallets that are free. In terms of hot wallets, there are web, desktop, and mobile wallets.
The desktop and mobile wallets operate as a software program or on your mobile device as an app that is installed on your smartphone, while the web wallet, as the name suggests, is available on a third-party server, and you're accessing your funds via your a web browser. In conclusion, based on your financial goals, you need to do research and choose a safe Bitcoin wallet and a trading site.
Bitcoin trading has never been more popular. Thousands of people are joining the network with each passing day. 2021 proved to be a historical year for Bitcoin. The institutional interest for this cryptocurrency has never been higher and the number of traders exceeds 5 million.
Many reputable brands such as Tesla, Microsoft, Expedia, Shopify, and Starbucks have spotted the advantages that Bitcoin has as a payment method, which is why they decided to include it as a payment method. The wide acceptance was a major influencer towards its price.
These days, Bitcoin’s value fluctuates between $50,000 and $60,000. At one point, it even reached a peak value of over $63,000. The best part about it is that experts believe that Bitcoin will continue to rise and it is yet to reach its full potential. We wanted to touch on that topic and see what the end of 2021 holds for Bitcoin. We’ll also take a look at the distant future. Let’s break down the details.
End of 2021 Projections
Many experts believe that Bitcoin is likely to reach its peak value in the fourth quarter of 2021. As for the peak value, they state that this cryptocurrency can reach a six-figure number for the first time in its history. If Bitcoin manages to reach $100,000, this will mark the beginning of a new era for this cryptocurrency.
As for the reason why experts believe that Bitcoin is yet to reach its full potential, halving events have provided us with a lot of useful information. History shows that after each halving event, it takes Bitcoin a year and a half to peak. Considering the fact that the last halving event took place in May 2020, the peak is expected to be reached around the autumn or winter this year.
The near-future potential is massive and to make things even better, reputable Bitcoin trading sites even provide traders with useful information on the near-future fluctuations of this cryptocurrency. In doing so, they allow them to maximise their chances of making a solid profit. These advanced services are part of the reason why trading with Bitcoin has become so profitable and why so many people are keen on joining the network.
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Distant Future
The distant future of Bitcoin is very hard to determine. The reason for that is the fact that authorities are putting a lot of effort into making sure that Bitcoin stays an outlaw currency. As you know, Bitcoin is highly decentralised and self-sustainable.
It is powered by blockchain technology. Thanks to this revolutionising technology, all Bitcoin users can process transactions and get rewards with it. The process of recording transactions is known as mining, while the rewards for mining are Bitcoins. Once a transaction is recorded and verified, it becomes a block and is integrated into the blockchain.
Thanks to the technology that powers Bitcoin, banks are completely cut off from the process and cannot profit from the transactions because they cannot impose their fees. Not only that, but governments are not fond of things that they cannot control and Bitcoin is controlled by all of its users, not from one centre.
The governments and banks are powerful allies which is why many experts think that Bitcoin will forever be an outlaw currency. Others are a bit more optimistic. They think that a point where the majority of the world’s population uses Bitcoin will be reached and due to the massive pressure, authorities will have no other choice but to make it legal.
Conclusion
While Bitcoin’s end of the year projections are much easier to predict, the distant future is extremely shady. There is nothing to do but wait and see how the situation plays out. One thing is for sure – people will always be fond of Bitcoin as it boasts tons of fantastic advantages.
Finance Monthly hears from Giles Coghlan, Chief Currency Analyst at HYCM, on what UK investors should keep their eyes on as June approaches.
As pubs, restaurants, shops and gyms all over the country begin to re-open their doors, all eyes are on the UK’s post-pandemic economic recovery.
For one, there is a sense optimism throughout the country. The rollout of the COVID-19 vaccine is on course (half of UK adults have now had at least one jab) and social distancing measures are being relaxed. Unemployment has fallen at the start of 2021, while inflation is holding steady.
As with any major societal change, all these things are naturally impacting the financial markets. The construction industry, for example, is experiencing strong growth as a backlog of projects spark back into life, and we can expect to see similar trends in other sectors as more retail, hospitality and leisure establishments re-open.
With all this in mind, here are some key themes and developments that investors should watch in the months ahead.
Stock markets
Throughout the pandemic, the so-called FAANGs stocks of Facebook, Apple, Amazon, Netflix and Google have been central to the US stock market’s record bull run. As investors have pumped huge sums into global equities, the tech giants have been among the greatest beneficiaries of the stay-at-home economy.
Given that stocks have generally been on a great run higher since March last year, with record highs and strong returns, investors must now seriously consider just how sustainable this pace is. In particular, traders and investors should watch for a seasonal shift, which might mean that these stocks lose their bite. One possible scenario could see the old adage “sell in May and go away” ring true, with the arrival of the summer months prompting investors to exit their stocks.
As investors have pumped huge sums into global equities, the tech giants have been among the greatest beneficiaries of the stay-at-home economy.
Further, as more lockdown restrictions are removed, naturally, society at large will be less dependent on tech to go about our lives as normal. As such, it will be interesting to see how tech stocks will fare throughout this period, and whether they become a less appealing prospect to investors.
Meanwhile, traders should also monitor the performance of stocks in the retail, hospitality, retail and leisure industries as the UK progresses on its roadmap to ease the lockdown. Companies in these verticals could achieve impressive growth when life returns to something resembling normality.
Gold
As the US economy begins to awaken, US bond yields have been on the up, meaning that Gold Exchange Traded Funds (ETFs) have continued to fall. This is a trend that should please the Fed, and is reflective of a far more optimistic outlook.
Particularly as expectations of life as normal inch closer, should the US economy continue to improve, rising yields will no doubt put further pressure on gold, which has already seen one of its worst starts to the year in 20 years.
Ordinarily, the beginning of the year is a period of strong demand for the precious metal, with the Chinese New Year usually attracting gold buyers. From a seasonal perspective, for the past ten years, gold has been flat between April and June; with the 2013 taper tantrum, gold lost nearly 20% between March and September alone.
Consequently, traders should watch for a possible sharp sell-off in gold should the Fed begin to talk about tapering.
BTC and cryptocurrencies
There has been strong media attention on cryptocurrency in recent months, with talk of Bitcoin garnering significant headlines. This is unsurprising, given that Bitcoin’s market capitalisation is now valued at a remarkable $1.2 trillion, putting the cryptocurrency ahead of Mastercard, PayPal and Visa combined.
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Even accounting for a recent blip, the crypto boom is noteworthy. It will be interesting to monitor how long these gains will continue.
In recent weeks, it is important to note that Bitcoin’s latest valuation came in at the same time as Coinbase launched an initial public offering – making it the first firm of its kind to do so. The arrival of Coinbase now offers many equity investors a straight bet into the cryptocurrency landscape, which could be met with strong gains in Bitcoin.
No doubt, this is a significant event in the busy cryptocurrency market – one that investors and traders should keep up with in the coming months.
Bitcoin trading has become the main occupation of many people around the world. Some statistics have shown that there are over 5 million users in Bitcoin’s network in 2021. More so, approximately 100,000 people from around the world have managed to become millionaires thanks to this cryptocurrency.
These days, Bitcoin is writing history as its price went over $50,000 and hasn’t dropped down in a while. It is safe to say that this value is now the stable rate of Bitcoin from which many traders can make a lot of money. Since new traders are joining the Bitcoin network with each passing day, we decided to name a few guidelines that every novice trader should take into consideration when they decide to trade with Bitcoin. Let’s check them out.
The Volatility Rate
Bitcoin has a very high volatility rate. That means that its value fluctuates very often and changes with each passing day. Let’s take the Tesla investment as an example. After Tesla invested over $1.5 billion in Bitcoin, its price surged by over $4,000 in just 3 days. The volatility rate is one of the biggest challenges that traders face in their quest for making the maximum possible profit with Bitcoin.
Trading Sites
While it may be impossible for Bitcoin traders to capitalise on future fluctuations of Bitcoin by themselves, trading sites are the platforms that will be able to help them. Some of the most reputable sites of this character feature an advanced service that will indicate when is the best time for traders to sell their assets.
Let's take Bitqh as an example since this is one of the most reputable trading sites on the planet. The Bitqh official website uses an advanced AI system that collects all the data about Bitcoin. The data is then analysed and the AI system can make pretty accurate predictions on the future fluctuations of Bitcoin. The daily profitability rate at this site is huge, which is more than an indicator of how successful their software is. Additionally, it has thousands of registered users from all around the world.
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These predictions are beneficial tools that traders can use to maximise their profits. In short, choosing a reputable trading site like the one we just mentioned can make a lot of difference when it comes to making money.
Halving Events
Halving events are one of the most important processes that take place on Bitcoin’s network. Usually, they are held every 4 years, or after 210,000 Bitcoins have been mined. What is their purpose? They control the flow of Bitcoin on the market and make sure that it is not flooded by them.
During halving events, it becomes very difficult to mine Bitcoins. Their circulation is cut in half. The reason why these events are important for traders is that they often lead to price surges about a year to a year and a half after they finish. So far there have been 3 halving events (2012, 2016, and 2020) and all of them led to price surges.
Long-Term or Short-Term Investment
Basically, there are two types of investments in Bitcoin – long-term and short-term. Depending on Bitcoin’s fluctuations, you will need to make an educated decision on which approach should you take. Short-term investments are done when Bitcoin is expected to plunge in value. These investments allow you to make a quick profit and bail out before the cryptocurrency starts dropping in value.
On the other hand, long-term investments are done when Bitcoin is expected to rise in the near future. The only downside to this type of investment is that you may wait a longer period before you see the fruit of your labour, but the profit will be much higher than the one of short-term investments.
It’s no wonder why so many are looking to trade Bitcoin. The virtual currency is revolutionising financial markets all over the world and brings many benefits to users. That’s why the number of Bitcoin traders is on the rise.
But you can’t just start trading right away. In other words, you’ll need some practice, because trading is far from easy. You’ll need to keep track of various assets, see how the value fluctuates, know which currencies to sell and buy, analyse the market, and so on. In short, you’ll need to learn how to deal with various situations.
You can learn this thanks to the gaming industry. This industry has stayed popular for years by adapting to technological trends. That’s how hardware got stronger and the games got better. This is the reason why Bitcoin has found a place in the industry. But what does this have to do with learning Bitcoin trading?
How the Apps Came to Be
Game developers have produced a couple of games inspired by Bitcoin. Some of them are Bitcoin trading simulators which means they’ll come in handy when it comes to learning to trade. All you need to do is install them on a mobile device of your choice and start learning. Here are some of those apps:
Bitcoin Hero
This app lets you experience a virtual market with real-time prices. This means that you’ll be able to make mistakes as much as you want to while you’re learning to trade Bitcoin. You won’t feel the consequences and you’ll pick up some good skills along the way. If this seems like too much work for you, then you can always go for the alternative. Trading platforms will help you with that.
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Trading platforms like Oil Profit exist to do the same thing as any other trader. They can go through the information and make decisions based on their settings. Making an account is a must when it comes to using the services of the platform. You’ll need to make a small deposit as well. There will be some tutorials and a demo lesson that you’ll need to go over to make sure you understand the settings of the platform. Afterward, you can set it and go for a live session. Then you can set the settings however you want to and see the different outcomes.
Altcoin Fantasy
Game developers take other cryptocurrencies into account as well. This means that there are some trading simulator apps that don’t just cover Bitcoin, but other virtual currencies as well. Altcoin Fantasy is such an app. You can use it to learn how to trade Bitcoin or any other cryptocurrency you fancy. You’ll get the virtual market, virtual currency, and real-time competition in the shape of other players. In short, you’ll get proper trading training.
But this isn’t the only thing the app has to offer. In Altcoin Fantasy there are competitions to see who the most skilled trader is. You can take part in them or organise them, and if you manage to turn out on top then you’ll be rewarded with a specific amount of Bitcoin or another cryptocurrency.
Conclusion
The value of this virtual currency is something to keep in mind as a trader. Also, make sure to do ample research when it comes to picking an exchange and choosing a wallet. An exchange with a history of hacker attacks will spell doom for your Bitcoin assets, so stay away from such exchanges. The wallet you choose needs to have good security measures, a user-friendly interface, and to suit your needs. By getting all these concepts and some practice you’ll be a pretty good Bitcoin trader.
