There has been a rapid growing interest into the digital gold of the cryptocurrency world, Bitcoin. Bitcoin and other cryptocurrencies are gaining rapid interest among the investors and retail buyers operating within the space.
After the Bull Market of Bitcoin and other alt coins in December 2017, these coins now constitute a new institutional class since 2017 according to new research from the major US bank Morgan Stanley.
The report “Bitcoin Decrypted: A brief Teach-in and Implications” dated Oct 31, the multinational investment bank gave an overview on bitcoin about the last 6 months and brought up the insights about the observable trends. It signifies the fact that bitcoin isn’t going to be dead soon. A multinational bank endorsing bitcoin to have a new standard in the world of investment banking is really an ascension to the Everest for the cryptocurrency market.
The findings speculated the researchers’ observations of what the report described as the rapidly morphing thesis of market, covering the evolution of the digital gold since it was introduced into the circulation as “Electronic cash” in 2009.
Bitcoin + Financial Systems: Climbing rapidly
Bitcoin was the first cryptocurrency which introduced decentralised peer-to-peer network to the world which is employing the use of decentralized ledger. While other financial institutions were busy in disrupting it, there were many projects which felt that the technology was appealing to them and could be a very important in their business models. As a digital currency, its distributed ledger makes it easier to process retail payment transaction such as e-commerce, peer-to-peer payments and cross border transactions at a very reasonable rate and lower logistics attached for the transfer.
While it is considered as a speculative investment, it is already being used as a store of value and has been given the name “Digital Gold” for a reason. It is forecasted as a potential means of payment in the next decade.
The report also highlighted the emergence of technologies after bitcoin which reduces the cost to a significantly lower level which is negligible. CryptX Financial is one of the examples. The study cited the new crypto services division ofFidelity, investments in crypto firms such asBinance, and regulatory approvals as evidence of the increased participation of financial institutions lending credence to the market thesis.
Some of the bottlenecks faced by the clients according to Morgan Stanley, who were interested in investing into cryptocurrency industry include regulatory disparities, the absence of custodial solutions, and the lack of formidable financial institutions operating in the industry.
The Rise of Stable Coins:
Since the emergence of Bitcoin, there have been many other Cryptocurrencies highly motivated to resolve the problems earlier faced by bitcoin users by giving the respective solutions to the users in the cryptocurrency market. These projects turned out to be great in terms of their stability and lower cost, even lower than bitcoin, CryptX Financial is one of the examples.
The report also recorded the gradual rise of fiat-pegged crypto stable coins, which more or less began in 2017 but has quickened this year because of high volatility of other cryptocurrencies. The decline in Cryptocurrency prices elicited an increase in the share of BTC trade volumes taken by USDT, a cryptocurrency backed by fiat. Exchanges were used to trading cryptos to cryptos with relatively few involved in the trade of crypto for fiat.
The research however do not see stable coins to survive over the long run.
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