Recently, during our communication with our friends, we found that some of them have doubts about a report by the Bank for International Settlements (BIS) stating that "cryptocurrencies themselves have not yet proven their value." Here, we will briefly explain our personal understanding
Recently, during our communication with our friends, we found that some of them have doubts about a report by the Bank for International Settlements (BIS) stating that "cryptocurrencies themselves have not yet proven their value." Here, we will briefly explain our personal understanding.
Firstly, the "value" pointed out by BIS should be the part of the "welfare" that can be brought to people as a "digital currency", and its own "price" is not a concept.
Secondly, I believe that the views held by BIS cannot be completely denied, as for cryptocurrencies that have never experienced a 'financial crisis', many of their value components do require strong' validation '.
However, it should be noted that during the US banking crisis in March 2023, the "safe haven value" of cryptocurrencies such as BTC and ETH, or the "risk opposite" of the banking sector in the traditional financial system, has been fully validated.
As for the broader 'cognitive value', we can demonstrate it through the increasing number of cryptocurrency holders and their related data.
Data shows that as of now, there are approximately 500 million global cryptocurrency holders, which means that one out of every 15 people worldwide holds cryptocurrency. Meanwhile, only Binance Exchange has expanded its business scope to over 100 countries and regions worldwide.
Although China has completely banned encrypted transactions, has it not also opened up the Hong Kong region? Moreover, how many people have been affected by encrypted transactions in mainland China? Data shows that China's inland regions still have the highest encrypted transaction volume in the world.
More importantly, with the increasing approval rate of BTC spot ETF applications, BTC is gradually entering the "mainstream asset class".
I mentioned in my previous article that WhaleChart stated on social media that BlackRock and major US banks are purchasing record amounts of Bitcoin through MicroStrategy.
Although some people at the time believed that Bank of America's purchase of BTC was to resist inflation, did it not simply "solidify" its "safe haven value"?
This also coincides with the recent news that BlackRock has purchased 12200 Bitcoins. Although the news has not yet been confirmed, we have reason to believe that this is a high probability event. Meanwhile, if we further speculate, it is easy to conclude that other asset management giants who have applied for BTC spot ETFs may also hold a large amount of BTC accordingly.
Moreover, on October 5th, Jamil Nazarali, CEO of EDXMarkets, a cryptocurrency exchange established by giants such as Fidelity, discussed the challenges and opportunities in the field of digital assets in an interview. Nazarali stated that BTC has the potential to become a global reserve asset.
The same view is held by Grayscale Company, whose September crypto market report pointed out that Bitcoin performed well in the global market fluctuations in September 2023. Bitcoin rose 4.1% in September, while most of the traditional assets suffered heavy losses, especially in the context of the rise in U.S. bond yields, showing the characteristics of Bitcoin as a "value store" and a "crisis haven".
The manifestation of reserve assets or hedging value, I believe it goes without saying that everyone will also understand the magnitude of "value weight", which is completely comparable to gold and "US bonds". As with the March banking crisis, waiting for more of the "value attributes" of cryptocurrencies to be confirmed before participating in cryptocurrency investments means that you have missed out on "low value investment opportunities".
Therefore, you can doubt the risk or practicality of cryptocurrencies, but under the guidance of capital, their "value" can no longer be influenced by any institution or individual's "speculation". Of course, all of this is based on the "approval of BTC spot ETFs".
As for the SBF case that will soon "end", as Sun Jie said, SBF is likely to be found guilty. The outcome may not be a concern for us, but this case may form the "standard" for the encryption industry like previous Ripple cases.
For example, in the case of a cryptocurrency exchange reallocating customer funds, it will be confirmed as "misappropriating customer funds" The biggest impact of this case is none other than Binance US, with this precedent, may be charged with some of the real coin security charges. It has a profound impact on the disposal of customer funds and the exchange's own funds by future crypto exchanges.
I'm done, come on! I am Zhaocai Ge, an old chive who sincerely wishes you a prosperous life in the coin circle. You can privately write to me and chat together.
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