Last week, Bloomberg publicized Cornerstone Macro LLC’s evaluation that investors that are ‘looking to counter the wild volatility of the stock market, can now consider the stabilizing influence of cryptocurrencies’. Here’s our thoughts on the significance of this trend and what lies ahead
Earlier this week, a Forbes article entitled ‘Bitcoin Is Braced For A U.S. Election Earthquake This Week’, argued that there has been ‘a tidal wave of bullish sentiment among Bitcoin investors that hasn’t been felt since Bitcoin’s historic 2017 bull run — and seems unshakeable no matter the outcome this week.’
The Rise of Privacy Coins The most well-known cryptocurrencies, such as Bitcoin and Ethereum, have immutable and transparent blockchains that allow BTC and ETH transactions to be visible to anyone in the world. It is also possible in some incidences to trace a person’s identity off-screen by investigating the sending and receiving addresses for those transactions. This has led to a rise in popularity of the cryptocurrencies dubbed privacy coins.
A lack of regulation and transparency in the digital asset sphere has been cited as deterrent for institutional adoption of crypto, but this reticence is now receding with the emergence of trusted next-generation exchanges that place market integrity at their core.
Bitcoin was born out of the 2008 financial crisis, but until COVID it had never actually been through one. It remains to be seen if peer-to-peer financial models will stand up to the test that they were designed to pass.