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Last winter, Texans faced a disaster. Hundreds of people died after the power grid failed to withstand a deep freeze. Governor Abbott took heat for the state’s power situation, and it appears he believes that he’s found a solution.

The theory is that more Bitcoin mining would encourage more electricity providers – that the energy demand would allow providers to make a business case for creating additional power plants.

Additionally, during times of extreme need – such as during the deep freeze – Bitcoin miners could shut down their operations in order to allow more bandwidth for heating homes. Two mining operations have already volunteered to make such adjustments for the public welfare.

Right now, there is some back-and-forth on how such operational shutdowns should occur, and some policy experts have said that such shutdowns need to be by government mandate. But putting aside the details of how such a partnership could be negotiated, it is important to say – yes, it should occur.

The industry, which has long been the subject of scrutiny for its energy usage, needs to enhance community appeal. Blockchain technologies have enormous potential. They will categorically change the way we interact with our financial system – and places like China and Iceland have already instituted limits on mining.

What we need is to show that this industry, with enormous potential to create a public good, can work hand-in-hand to help enhance the world in which we all want to live. A partnership with the state of Texas to enhance the electric grid is a win-win for all involved.

Lee Bratcher, president of the Texas Blockchain Council, has been quoted as saying,

“[I]t’s really a healthy dynamic that brings tax revenue, brings job creation and also is a grid strengthening mechanism.”

And Texas makes sense as a place to begin building that community-first mindset. The Texas Blockchain Council notes that the state is home to twenty-seven mining operations, and the state made it easier to utilize digital assets as collateral for loans. For his part, the governor established the Work Group on Blockchain Matters.

At a blockchain conference, Ted Cruz, senator of Texas, said,

“In five years, I expect to see a dramatically different terrain, with Bitcoin mining playing a significant role as strengthening and hardening the resiliency of the grid.”

The Texas Blockchain Council anticipates that by 2024 an additional five gigawatts of electricity will be required for mining operations in Texas. Abbott is banking on more consumption making the electric grid more stable. And given that blockchain isn’t going away, it is time to look at exactly how the industry can co-exist with society in a way that not only does no harm but also enhances the quality of life.

We know that the industry will bring good high-paying jobs. We also know that CBDCs will help bring the world’s unbanked population into our financial system. Blockchain technology could be the key to solving a host of global supply chain issues, including limiting unnecessary deaths by cutting down on counterfeit pharmaceuticals.

Those are just a few of the infinite possibilities. The industry must come together to show our local communities that we’re not just good for society – but that we’re good neighbors too.

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Richard Gardner is the CEO of Modulus. He has been a globally recognized subject matter expert for more than two decades, offering complex insight and analysis on cryptocurrency, cybersecurity, financial technology, surveillance technology, blockchain technologies and general management best practices.

 

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Florida Governor Ron DeSantis isn’t fazed by the recent volatility in cryptocurrency, which is widely aligned with a broader dip across markets. From the uncertainty around Covid-19 and the budding situation in Ukraine, the markets have been undeniably affected.

But the southern governor continued to press onward, supporting a pilot program that would allow Florida businesses to pay state fees in cryptocurrency. His budget recommendations last month included $200,000 for DFS to run such a pilot program.

From his perspective, Miami has opened the door to being a haven for digital assets under Mayor Suarez.

During a recent news conference announcing his recommended budget, DeSantis said,

“A lot of people have flocked to South Florida over this issue, and so our view at the state government is [that] this is something we welcome, and we want to make sure the state government is crypto-friendly.”

His spokesperson doubled down in an email after the recent dip, adding,

“We always want Florida to be ahead of the curve, and we see the potential for cryptocurrency adoption, so it makes sense to offer the option to pay state fees in cryptocurrency – regardless of how much it fluctuates in an arbitrary time period.”

While some noted that the volatility of Bitcoin could mean that the state had less spending power after a dip, the inverse is also true. Cryptocurrencies that were held during an upswing would allow for increased spending power. The governor’s office had a solid answer in relation to the recent movement.

In an email, DeSantis’ spokesperson wrote,

“Bitcoin and other cryptocurrencies are still relatively new and not widely adopted yet. They are still in the price discovery phase, meaning that prices will continue to fluctuate as investors, regulators and users around the world influence supply-and-demand dynamics.

Every day, more people around the world start buying and using cryptocurrencies. The more people own and trade an asset, including a cryptocurrency, the higher its market cap goes. The higher an asset’s market cap, the more difficult it becomes for any one investor to move the asset price. So as a general rule – the wider the adoption of cryptocurrencies, the less volatile their prices will become over time.”

It is a common-sense enough statement, but in a world where the government doesn’t always have the keenest understanding of the blockchain industry – or even of business in general – one should feel some cheery optimism that the governor of one of the largest states isn’t afraid to stand his ground.

The question should be simple – is the technology good? If the answer is yes, then the asset’s short-term volatility isn’t remarkable. Just as one wouldn’t judge the long-term potential of blue-chip stock based on a down month of the market generally.

That makes sense to many investors in digital assets, and most folks reading this column know that cryptocurrencies and digital assets are here to stay, as is blockchain technology. However, politicians aren’t always moved by the same common sense as the rest of us. Instead, they are often moved by politics – especially in an election year.

It would be easy to jettison this pilot program as Bitcoin saw a price reduction. Budgets change often throughout the process. But in Florida, that’s not what happened. Governor DeSantis stood his ground. And that’s a boon for digital assets.

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Richard Gardner is the CEO of Modulus. He has been a globally recognized subject matter expert for more than two decades, offering complex insight and analysis on cryptocurrency, cybersecurity, financial technology, surveillance technology, blockchain technologies and general management best practices.

 

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Broader risk markets, including tech stocks, have bounced recently as markets appear to have priced a hawkish Fed. But the spillover to crypto markets has not been uniform.

Bitcoin has jumped five percent over the past week, but our metaverse index is the standout performer with a 21% surge (see charts one and two). Meanwhile, our overall smart contract platform index is up seven percent on the week. Finally, our DeFi index is up the least at four percent.

In terms of the breakdown within each index,

• Smart contract platform index – Cardano (ADA) is down the most at 1.4%, and Avalanche (AVAX) is up the most at 11.2%. Ethereum is up 9.9% on the week.
• DeFi index – PancakeSwap (CAKE) is down the most at 3.8%, and Maker (MKR) is up the most at 11.5%.
• Metaverse index – Mostly large gains across the board. The Sandbox (SAND) and Decentraland (MANA) are up the most at 36.2% and 35.4%, respectively. Axie Infinity (AXS) is up the least at 2.4%.
• Bitcoin index – This is up 4.8% on the week.

What are in the four indices?

Here are the indices in more detail.

• Bitcoin – The OG of crypto markets deserves its own category and is in many ways the true benchmark for any other crypto market.
• Smart contract platforms – After Bitcoin, the big innovation was to have blockchains that were more programmable. These could host smart contracts or decentralized applications and have allowed the emergence of the metaverse and DeFi. Ethereum (ETH) is the most popular version of a smart contract platform. But we also include rivals Solana (SOL), Cardano (ADA) and Avalanche (AVAX). We also include Polkadot (DOT), which allows interoperability between blockchains and the use of smart contracts via parachains.
• Metaverse – Coins associated with the creation of a virtual space/digital world on the internet using a combination of augmented reality, virtual reality and social networks. One of the largest is this space is Axie Infinity (AXS), which is a play-to-earn gaming platform. Another is Decentraland (MANA), which is a virtual world that allows ownership of land among other things. The three other coins we include are The Sandbox (SAND), Enjin Coin (CNJ) and Gala (GALA).
• Decentralized Finance (DeFi) – Financial services built on top of blockchain networks with no central intermediaries. This can be a very broad category, so we narrow this down to platforms that focus on lending and borrowing or to yield farming. The five coins we have selected are Aave (AAVE), Maker (MKR), Compound (COMP), Uniswap (UNI) and PancakeSwap (CAKE).

Disclaimer

The commentary contained in the above article does not constitute an offer or a solicitation or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.

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Bilal Hafeez is the CEO and editor of Macro Hive. He spent over twenty years doing research at big banks – JPMorgan, Deutsche Bank and Nomura – where he had various ‘global head’ roles and did FX, rates and cross-markets research.

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Despite some stabilization over the past 24 hours, crypto markets are down meaningfully over the past week. This has come in the context of weak tech stocks and nervousness over Fed hikes. But there has been some divergence across crypto markets.

Bitcoin has been one of the more resilient coins and is down ‘only’ 14% at $36,000 (charts one and two). Ethereum has underperformed Bitcoin but other crypto markets have performed even worse. Our DeFi and smart contract indexes are down 28% each, while the metaverse index is down a whopping 33% on the week.

In terms of the breakdown within each index,

• Smart contract platform index – All coins are down on the week. Cardano (ADA) has dropped the most at 35.1% followed by Solana (SOL) at 34.4%. Ethereum is down 24.5%.
• DeFi index – All coins are also down on the week. Uniswap (UNI) fell the most at 36.1% followed by Aave (AAVE) at 33.4%.
• Metaverse index – Large declines across the board. Gala (GALA) is currently down the most at a staggering 40% followed by The Sandbox (SAND) at 35.4%.
• Bitcoin index – This is down the least at 14.1% on the week.

What are in the four indices?

Here are the indices in more detail.

• Bitcoin – The OG of crypto markets deserves its own category and is in many ways the true benchmark for any other crypto market.
• Smart contract platforms – After Bitcoin, the big innovation was to have blockchains that were more programmable. These could host smart contracts or decentralized applications and have allowed the emergence of the metaverse and DeFi. Ethereum (ETH) is the most popular version of a smart contract platform. But we also include rivals Solana (SOL), Cardano (ADA) and Avalanche (AVAX). We also include Polkadot (DOT), which allows interoperability between blockchains and the use of smart contracts via parachains.
• Metaverse – Coins associated with the creation of a virtual space/digital world on the internet using a combination of augmented reality, virtual reality and social networks. One of the largest is this space is Axie Infinity (AXS), which is a play-to-earn gaming platform. Another is Decentraland (MANA), which is a virtual world that allows ownership of land among other things. The three other coins we include are The Sandbox (SAND), Enjin Coin (CNJ) and Gala (GALA).
• Decentralized Finance (DeFi) – Financial services built on top of blockchain networks with no central intermediaries. This can be a very broad category, so we narrow this down to platforms that focus on lending and borrowing or to yield farming. The five coins we have selected are Aave (AAVE), Maker (MKR), Compound (COMP), Uniswap (UNI) and PancakeSwap (CAKE).

Disclaimer

The commentary contained in the above article does not constitute an offer or a solicitation or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.

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Bilal Hafeez is the CEO and editor of Macro Hive. He spent over twenty years doing research at big banks – JPMorgan, Deutsche Bank and Nomura – where he had various ‘global head’ roles and did FX, rates and cross-markets research.

 

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Bitcoin and Ethereum are now ranked among the world’s top 20 traded assets. And their market caps exceed some of its largest companies. Their growth during the pandemic reflects a significant rise in the popularity of and participation in the crypto ecosystem. But with all the crypto mania, how are these decentralized markets influencing traditional ones? The key is in the correlations, according to a new IMF working paper.

• A new IMF working paper explores the connection between crypto and equity markets following a twentyfold increase in the market cap of decentralized assets during the pandemic.
• They find fluctuations in the daily returns of Bitcoin and Tether can explain a sixth of the variation in daily S&P500 returns, up from just one-percent pre-pandemic.
• Combined, volatility in the two crypto assets can also explain a fifth of the daily price action in EM equity markets.

Until at least the first half of the pandemic, many thought Bitcoin’s scarcity would help it become an inflation-hedging asset. But opinions changed when inflation started rising in May 2021. Bitcoin was turning out to be another play on risk markets – it was most correlated with US and Chinese equities. It is this connection with equity markets that the IMF paper considers because that is where the $3 trillion crypto market will probably have the largest influence. The paper finds the following.

• The correlation between Bitcoin price volatility and volatility in the S&P500 rose over fourfold from pre- to post-pandemic.
• Bitcoin is now responsible for 17% of the daily volatility in US equity prices.
• Crypto assets are also increasingly connected with EM equities.
• Bitcoin and Tether can explain almost 20% of the fluctuations in daily MSCI emerging market (EM) prices. For comparison, the S&P500 explains 30%.

Simple correlations

Since the start of the pandemic, the correlations between cryptos and equities have skyrocketed. The intra-day price volatility of two major crypto assets – Bitcoin and Ethereum – is now about four to eight times more correlated with the volatility of the main US equity market indices (the S&P 500, Nasdaq and Russell 2000) versus 2017-19 (chart one). A similar pattern holds for the correlation with equity markets in emerging market economies, captured by the MSCI EM index.

Intra-day returns have also become more correlated – though the increase has been particularly pronounced for Bitcoin (chart two). While the correlation between Tether and equities also strengthened, it turned negative during the pandemic – implying people used it as a risk diversification asset in that period.

The rise in correlations between crypto assets and equities has been much bigger than for other key asset classes, such as the 10-year US Treasury ETF, gold and selected currencies (the euro, renminbi and US dollar).

However, the correlation between Bitcoin returns and high-yield bonds (HY CDX) and investment-grade bonds (IG CDX) has strengthened notably – as tends to be the case for risky asset classes. Meanwhile, the reverse holds for Tether, again implying risk diversification (chart three).

More complex correlations

To formally measure crypto’s link to asset markets, the authors run a VAR model to capture bi-directional correlations. They call these correlations ‘spillovers.’ Again, they analyze daily returns and volatility to gauge the extent of portfolio connection and diversification strategies across asset classes over time.

Like the simple correlations, spillovers have also increased during the pandemic – that is, from crypto to equity prices and vice versa. For example, volatility in Bitcoin prices now explains 17% of the volatility in the S&P500 (chart four). But volatility in S&P500 prices also now explains 15% of the volatility in Bitcoin prices. This shows a strengthening bi-directional correlation – so, increased spillovers.

Also, the connection between Bitcoin and Tether increased since the start of the pandemic. Volatility in Bitcoin prices explains over a quarter of Tether price volatility. In the other direction, Tether only has a limited impact on Bitcoin’s volatility (12%). It can also only explain six-percent of the volatility in the S&P500.

Return spillovers also increased during the pandemic. The patterns are broadly similar to the volatility spillovers but smaller. The most striking result is that daily returns in Bitcoin and Tether combined explain a sixth of the variation in daily S&P500 returns. They also explain 15% of the variation in Russell 2000 returns. This is remarkable given their contributions were almost non-existent before the pandemic, and it shows just how much crypto assets influence equity markets.

The growing connection between cryptos and equities extends beyond the US. Bitcoin explains 14% of the volatility in the MSCI EM index during 2020-21 and eight-percent of its returns variation. These are up 12pp and 7.5pp from pre-pandemic, respectively. Combined with Tether, the two crypto assets explain almost 20% of the daily price action in the MSCI EM index (chart six). Comparatively, the S&P500 explains 30% of the daily MSCI EM price volatility.

To finish, the authors examine these spillovers in periods of market stress. Generally, the spillovers are larger when market volatility is high. For example, the March 2020 market collapse led to a pronounced and relatively extended rise in bi-directional volatility spillovers between crypto and equity markets.

Bottom line

The pandemic’s macroeconomic implications have been huge. They have altered decade-long trends in labor markets, goods and services, consumption habits, inflation and more.

As this paper shows, the pandemic also appears to have accelerated the integration of decentralized markets into centralized ones. As such, investors, regulators and policymakers can no longer trivialize the importance of crypto within the global macro landscape. Events in crypto are now also events in equity markets and vice versa – the speed at which this has changed is astonishing.

Disclaimer

The commentary contained in the above article does not constitute an offer or a solicitation or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.

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Sam van de Schootbrugge is a macro research analyst at Macro Hive, currently completing his PhD in international finance. He has a master’s degree in economic research from the University of Cambridge and has worked in research roles for over three years in both the public and private sector.

 

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Crypto markets continue to grow despite Covid-19 and governments trying to destroy them – but how?

Cryptocurrencies were seen as magic internet money for a great period of time. In fact, this attitude toward crypto has been in place for a longer period than the attitude that they’re lucrative investment vehicles. Born out of chaos and disdain for the heavily manipulated financial world, Bitcoin and distributed ledger technology (DLT) is seeking to change the way the cogs turn in the financial world.

But how are crypto markets managing to persistently outperform the global financial markets, despite a global pandemic? Millions of people were furloughed, millions made redundant and millions of people dead. How is this landscape perfect for an emerging financial system destined to revolutionize the world? Is now the best time to join the blockchain movement, and what are the best practices for it if you are part of a crypto project?

It’s simple, really. Evolution and adaptation.

Perhaps it’s best to compare cryptocurrencies, DLT and blockchain to the history of planet Earth. You see, there are countless parallels between the two, and in the grand scheme of things, the evolution of the financial world is virtually the same.

The Paleozoic period

In the history of the Earth, the Paleozoic period was when land plants, mosses and liverworts began to appear on Earth. This was 252 million years ago at the closest part. During this time, life on Earth was still mostly tiny insects. If we compare this to the Bitcoin lifecycle, this was its launch in 2008. There were incredibly few users, and nobody took it seriously. Nothing could survive in the crypto world, and adoption was virtually zero. Many that stumbled across Bitcoin during this period branded it as junk and useless, which in all fairness, it was at the time.

Just like those plants from 252 million years ago refused to give up and die, Bitcoin continued to grow and defy all odds. It took until July 2010 for Bitcoin to be given some form of dollar value, where it traded between $0.0008 and $0.08 per coin. Once this happened, it sparked the next phase of its life – the Mesozoic period.

The Mesozoic period

The Mesozoic period takes us from 252 million years ago to 66 million years ago. This is where those insects and plants from before evolved and grew into entire ecosystems and multiple species, giving Earth some of the most dangerous and ferocious predators that it has seen to date. The same thing happened to Bitcoin and the cryptocurrency world between 2010 and early 2017.

This is the period where we saw developers from all around the world take the Bitcoin code and technology to create their own cryptocurrencies. Countless cryptocurrencies were born, and Bitcoin continued to gain momentum and grow its user base as well as its global adoption. This was still a relatively small amount compared to where it is today, but these slowly laid foundations are the reason that Bitcoin and the cryptocurrency world is where it is today.

During this era, we saw second-generation blockchains start to become an idea, meaning that blockchain was about to get more use cases, and faster. Until now, waiting 10 minutes for a transaction to get processed was incredibly fast. But as more and more users began making Bitcoin transactions, this time got slower and slower.

Bitcoin was prolifically used on the dark web as the currency of choice to buy drugs, guns, human organs, pay for murders and much more. This is where Bitcoin’s name began to get muddied and associated with criminals – but much in the same way that the Tyrannosaurus rex got a bad rep for being a ferocious murderer.

The reality is that both were apex predators doing what they were designed to do perfectly. In the case of Bitcoin, it was to act as a currency used for making payments with no restrictions or boundaries of governing bodies to say what you can or cannot spend your money on. For the T-Rex, it was the ability to hunt and eat anything it desired. Two well-oiled machines doing their job perfectly.

Thanks to this perfect design, Bitcoin and cryptocurrencies became infamous, rising in value from $0.08 to just over $1,000. Along the way, Bitcoin became the talk of the town, feared by the banks and continuously targeted by the traditional financial system. A massive campaign of misinformation was launched against cryptocurrency, designed to drive fear into the hearts of mere mortals who were not part of the upper echelons.

But they did not need this in order to remain in control, as during this period, Bitcoin and other cryptocurrencies were not user-friendly – meaning there was a huge barrier to entry. Instead, these campaigns designed to smite Bitcoin and its fledgling competitors only created more awareness of the burgeoning industry and helped with its adoption. People could smell the fear and were drawn to it, knowing that if these large institutions are scared, then it must be good.

As a result, toward the latter stages of the Mesozoic period, there were dozens of cryptocurrency exchanges and crypto wallets popping up. These became simpler to use and safer, giving the entire human race a quick, easy and safe way to get their hands on this magical internet money that the banks fear and has already made so many people wealthy beyond their wildest dreams. This evolution laid the foundations for what was arguably the biggest event in Bitcoin and cryptocurrency’s life – much in the way that the Chicxulub meteor laid the foundations for the future of planet Earth.

The Cenozoic period

Then we arrive at the Cenozoic period. During this period of Earth’s life, apes began to emerge, and we saw humans evolve. Every human civilization, from the cavemen, to us right now in the 21st century is here. This period only spans 66 million years but sees more evolution and changes than the previous 4.5 billion years. The same is true with the world of cryptocurrency and blockchain.

More has happened in the four years since 2017 than in the rest of the history of the industry. We’ve seen second-generation blockchains go from ideas to fully functioning networks. We’ve also seen third-generation blockchains launch and go live. All of this is built on the rich foundation and slow evolution that Bitcoin and the cryptocurrency world has gone through.

But what has any of this got to do with the global pandemic and the fact that cryptocurrency use is higher than ever before?

This goes to show that Bitcoin and other cryptocurrencies aren’t just a fad. Instead, it’s technology steeped in history, and it’s gone through a colossal evolution, just like the planet has. Bitcoin and other cryptocurrencies are no longer only good for use on the dark web.

Today, these cryptocurrencies have just as much utility as the dollar, pound, yen or euro. Services have evolved that allow us to store our cryptocurrencies in wallets and spend them at any merchant in the world using a debit card. This period of evolution has enabled cryptocurrencies to merge with the existing financial networks, improving them at every twist and turn.

Crypto being put to full use

The fact that you can now send money anywhere on the globe in a matter of seconds for a fee that’s a fraction of a cent is incredible. Before blockchain, this would take days and cost you a small fortune. The world of DeFi is here, and it’s allowing people to take out loans that they can afford with the click of a button. No longer do you have to apply and wait six months only to get rejected because the bank thinks you’re too risky. Financial freedom is here – and it’s all thanks to Bitcoin.

Virtually all of the biggest and best companies in each industry are now all using cryptocurrency and blockchain in some part of their business model. Whether it’s Telsa storing $1.5 billion of its balance sheet in Bitcoin to hedge against inflation in the USA, Bank of America using blockchain technology to power cross-border payments and settlements or El Salvador making Bitcoin its national currency, this is all incredible progress that shows Bitcoin and other cryptocurrencies are here to stay.

Cryptocurrencies have more purpose and utility than ever before, so it’s not shocking in the slightest that this burgeoning industry is still growing. In fact, the global pandemic has actually been beneficial for Bitcoin, cryptocurrency, blockchain and DLT. It has given people more time to learn and get educated on the subject of this emerging technology and its potential. We’ve also seen governments and private companies turn to blockchain technology to power vaccine certificate authentication. All of this is unprecedented.

The new norm courtesy of blockchain

As a result, this raised awareness and use for cryptocurrency increases the demand for it. Anyone that studied high school economics can tell you that increased demand means reduced supply, which leads to an increase in price. So, the fact that we’re now entering the longest bull run in cryptocurrency history is not surprising in the least. It also stands to reason that this is the new norm, and these price levels could be called ‘bearish.’ The more and more that companies integrate with cryptocurrency, the higher the prices are going to go.

And sure, crypto markets are still constantly abused by those with the largest bags. But this also applies to the traditional financial world. There will always be pump and dump groups looking to artificially inflate the price of a currency to boost their profits. Just look at how JP Morgan got caught doing this with precious metals. If these schemes are to truly be abolished from society, blockchain is our best chance at making it happen. The big cryptocurrencies that power the most popular and most useful blockchains will remain relatively impervious from these groups. But the smaller altcoins that have very little utility and purpose will become a hive for this activity.

As the education about cryptocurrency increases, fewer people will retain the herd mentality when it comes to investing. This will then reduce the negative impact that these pump and dump groups have over the wider user base of crypto.

This is without a doubt the best time for companies and services to begin their move into the crypto world. It’s easy enough to take a traditional business and incorporate cryptocurrency and blockchain, as well as gaining new customers from the crypto niche. There are specialist crypto ad networks designed to help you with reaching this new customer base, and they arguably deliver better results than traditional ad networks.

The global pandemic hits

Covid-19 swept the globe, forever changing the world as we know it. Brick and mortar businesses suffered the most from this, with online behemoths quickly adapting and thriving. Governments mandate when we can venture outside, control our freedom and restrict our human rights, all in the name of ‘doing our part.’ But the reality is that these measures designed to keep us safe have actually made the general population resent the institution more than ever before.

As a result, demand for freedom is at an all-time high. Politicians are continuously destroying their countries, running up more debt than is humanly imaginable, embezzling trillions worth of taxpayer money and killing anyone that gets in their way. People are fed up with suffering and staring down the barrel of inflation that will cripple their personal finances beyond repair. The solution? A new financial system.

Bitcoin and cryptocurrency finally give people control of their own money. Whether you want to spend it on a car, at a casino, on drugs or save it, that choice is finally yours. In fact, during the pandemic, Bitcoin casinos have seen player numbers increase at a faster rate than ever before. Why? Governments are making it harder and harder for people to enjoy fiat-based casinos by imposing strict controls and regulations. You can argue that these measures are in place to prevent addiction, but at the end of the day it’s taking away your choice and right. Cryptocurrency allows you to take back that control and do what you please.

As businesses suffer from this outflow of money from traditional services to cryptocurrency-based services, stock markets continue to take a battering. In a bid to prevent getting swept up in that impending chaos, more and more investors are pulling funds and reallocating them to assets from the blockchain and cryptocurrency world. Not only are investors favoring crypto over forex but they’re also betting big on firms using blockchain technology.

Bitcoin and the crypto space have already fended off the worst that the traditional finance world can throw at it, adapting and evolving in the process. This proves that crypto has what it takes to adapt to a world with Covid-19 measures in place and continue to thrive. It’s a fast-paced and adaptive industry that can take on anything the world throws at it.

The future for cryptocurrency

This global pandemic has legitimized cryptocurrency as a real industry – not just as magic internet money that criminals use on the dark web. You can pay for your coffee using crypto. You can pay your taxes with crypto. Cryptocurrency is the future, and as it continues to evolve, we’re going to see its adoption skyrocket. Right now we’re at the tip of the iceberg. The future of blockchain and cryptocurrency is going to be incredible. It’s going to change everything. Businesses that continue to fight it and resist will end up vanishing, while those that adapt will thrive in this new phase of human existence.

Cryptocurrency is getting to the point where it’s poised to take over as the reserve currency for the world, but which currency will claim the throne is yet to be seen. It’s likely that we’ll see a new government-backed cryptocurrency emerge and fill this role. Blockchains like Ethereum, Solana and Binance Smart Chain are powering this current phase of evolution, and it’s exciting to see where this will lead us. Soon we’ll see fourth-generation blockchains that are faster, cheaper, more eco-friendly and can do so much more than we can currently imagine to be possible.

The only question is – will you be adapting to this new way of life or fighting it?

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Gary Blaisdell is one of the most interesting personalities in the current journalistic field. Most of his works, you can see in various journals and newspapers like The Times and others. He has created several blogs and cooperated with one of the most significant publishing houses.

 

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