The energy costs of bitcoin mining are often cited as canceling out the. We must also consider the savings made, in avoiding some of the hidden costs of the alternative. Gold Standard Critics of gold originally made the same arguments — that the mining and storage cost of gold meant paper money was more economical. However, American Economics Professor Roger Garrison points out that society incurs additional costs under a fiat system. The cost of different
CryptoOracle partner Lou Kerner said that strong cryptocurrencies should be viewed like the big companies that came out on top after the dot-com bubble.
Lou Kerner, a partner at venture capital firm CryptoOracle, compared the current slump in crypto prices to the dot-com burst in the early 2000s in an interview with CNBC Nov. 21.
On CNBC’s “Worldwide Exchange” show, Kern stated that strong coins should be viewed like the big companies that came out of the dot-com bubble, using the example of e-commerce giant Amazon:
“If you go back to the internet bubble, which is what a lot of us in crypto look at for direction, Amazon, arguably one of the greatest companies in the history of the mankind, was down over 95 percent over two years.”
Amazon went public in May 1997, with its share price of $18 per each. By December 1998, the company’s share price surged to more than $300 per share, but right after the dot-com bubble burst in March 2000, the share price slumped to just under $6 per share. Over time, Amazon managed to become the second U.S. company to reach a market value of $1 trillion.
Kerner said that current volatility is nothing compared to what longtime BTC investors have encountered, recalling a day in 2013 when the market fell by 70 percent overnight. “This is what investing in crypto is all about,” Kerner added, also noting that the impact of all great technological changes is overestimated in the short term and underestimated in the long term.
The venture capitalist further stated that Bitcoin is “the greatest store of value ever created,” adding that the leading cryptocurrency will surpass gold over time. When asked what could be behind the recent slump on the cryptocurrency market, Kerner argued that “crypto has been so weak because [for] most of it there is no underlying value outside of confidence.”
Many industry experts have shared a positive outlook regarding the future of crypto market. Bart Smith, digital asset head at U.S.-based global trading and technology firm Susquehanna, said he is still a long-term BTC believer amidst the market crash, emphasizing that crypto trading is a “long game” and that “every great idea is volatile.”
Spencer Bogart, a partner at the venture capital firm Blockchain Capital, also believes that crypto opportunities are “still gigantic” despite the current bear market. Bogart also expressed his “mono-crypto” position, claiming that Bitcoin has the “largest established network effect” and is “more than five times larger than the number two crypto.”
The Financial Stability Board has presented its final report on cryptocurrencies, stating they pose no threats for global markets, at least for now.
International central banks and financial officials think that cryptocurrencies pose no significant risks to global economic stability, according to a report published by the Financial Stability Board (FSB) Wednesday, Oct.10.
The FSB — an international agency consisting of 68 local institutions such as central banks, watchdogs, and ministries of finance that prepares recommendations for global financial systems — published a document called “Crypto-asset markets: Potential channels for future financial stability implications” with their findings.
As per the report, the bankers see no significant dangers in cryptocurrencies, as their total market capitalization was at $830 billion at its peak and has since dropped to $210 billion, which barely reaches 2 percent of the global value of gold. Still, the FSB urges regulators to watch the digital coins market closely amid its quick growth.
As well, the FSB includes a warning about possible price manipulations related to crypto, noting:
“Illiquidity, concentrated ownership, fragmented market structure, and other issues also make crypto assets potentially susceptible to price manipulation.”
In addition, the international agency stressed that the crypto industry raises some policy questions, such as consumer and investor protection.
The paper follows a previous FSB report from July that was presented to the G20 finance ministers and central bank governors. The organization had stated that cryptocurrencies would need in-depth monitoring due to the rapid development of the market, although they didn’t pose any threat at the moment.
In May, the International Monetary Fund (IMF) also stated it saw no risks from cryptocurrencies in regards to global markets financial stability. However, the IMF pointed out that they could pose some threats if they become more widespread without the relevant regulation.
Swiss-based asset management firm Tiberius Group AG has delayed the issue of its metals-backed token Tiberius Coin due to high fees from credit card companies.
Switzerland-based commodities assets manager Tiberius Group AG has delayed the sale of its metals-backed cryptocurrency, Tiberius Coin, due to high fees from credit card companies, Bloomberg reported Oct. 9.
The company announced its intention to issue a digital currency tied to the price of metals — copper, aluminum, nickel, cobalt, tin, gold and platinum — in late September. Tiberius Group then explained that “instead of underlying the digital currency with only one commodity, we have chosen a mix of technology metals, stability metals and electric vehicle metals. This will give the coin diversification, making it more stable and attractive for investors.”
Now, the Swiss firm will reportedly delay the launch of Tiberius Coin due to “unacceptably” high fees from credit card processing companies. Per Tiberius’ assessment, it will be unable to handle orders worth $15 million due to “restrictions” put on credit cards. Tiberius stated:
“As of now, we are investing heavily in our platform, improving it and working with notable credit card processors to onboard new payment gateways for our client base to use. All investors who took part in the sale will have their money refunded within 30 days.”
Credit card companies have previously shown some hesitation about working with cryptocurrency companies and digital asset trading. In June, San-Francisco-based bank Wells Fargo announced that it will no longer allow its customers to purchase cryptocurrency using its credit cards. The move was reportedly taken in order to avoid “multiple risks” associated with cryptocurrency usage.
In February, Cointelegraph reported that customers at J.P. Morgan Chase, Bank of America, and Citigroup can no longer purchase cryptocurrencies with credit cards. J.P. Morgan Chase said that it had discontinued the service “due to the volatility and risk involved,” while Citigroup stated it would review their policy as the crypto market develops.