The quake was at a depth of 503.2 km
asia3 hours ago
News of Bitcoin breaching the $23,000 mark — its highest valuation ever — has electrified investors globally.
With Ethereum, the second largest cryptocurrency by market capitalisation, also going past $660, market sentiment around digital currencies is more upbeat than ever before.
Bitcoin will maintain its propensity to advance in price into 2021, with macroeconomic, technical and demand versus supply indicators supportive of $50,000 target resistance, implying about a $1 trillion market cap, according to Bloomberg Crypto Outlook’s December 2020 edition.
The report states, “$10,000 mark has shifted to a critical support level after serving as the crypto’s resistance mark since 2017. The year 2020 will likely be looked back upon as key to Bitcoin’s mainstream evolution.”
Khurram Shroff, the Dubai-based chairman of the IBC group and one of the region’s largest ‘HODLers’ of Bitcoin and Ethereum — colloquially referred to as a “whale”, within the cryptocurrency community — believes these all-time high valuations reflect a tipping point for decentralised digital currencies.
“I think we have to acknowledge that the pandemic has disrupted business as usual. Individual investors, and markets as a whole, are reflecting the general mood of a new beginning, which has made them far more open to cryptocurrencies. The huge stimulus packages that governments around the world announced, in the aftermath of the pandemic, means traditional fiat currencies have been hit hard by inflationary pressures. Bitcoin, with its supply capped at 21 million, is an attractive option for investors wishing to hedge against the debasement of traditional currencies," he said.
"Furthermore, Bitcoin is a deflationary asset by design compared to fiat currencies which are inflationary. We saw the impact of this earlier in 2020 as we witnessed the gradual weakening of US dollar due to the pandemic which increased the dollar money supply by approximately 25 per cent,” said Shroff.
In December 2020, the Bitcoin market cap reached an all-time and had grown by over $100 billion when compared to the summer months. The market capitalisation currently sits at more than $350 billion, according to a research by Statista.
Regulation of cryptocurrencies has been area of concern for many. However, Shroff says that the primary business of government is to ensure the wellbeing of their people and driving economic growth. "The strengths of decentralised cryptocurrencies lie in their iron-clad and instantly verifiable digital records. In the long-term, any market that operates with that level of investor confidence can only be good for the economy. As a crypto investor, with significant investments in digital currencies, I welcome government regulation of cryptocurrencies. However, this must be done without hindering their growth or undermining their attractiveness to investors.”
sandhya@khaleejtimes.com
The quake was at a depth of 503.2 km
asia3 hours ago
The defending champions overpowered TP Mazembe from the Democratic Republic of Congo 3-0 in Cairo
sports3 hours ago
Although the Gunners are top as they chase a first title for 20 years, Manchester City are regarded as statistical favourites to win a fourth successive crown
sports3 hours ago
Doctors urge residents to take such situations seriously: 'Sharp objects can pierce the food pipe and can migrate into areas like the chest, causing further complications,' an expert says
uae3 hours ago
Highly-rated 19-year-old Turkish midfielder Arda Guler scores match-winner on his first La Liga start
sports3 hours ago
The special incentive allows eligible companies to obtain interest-free loans of a maximum of Dh300,000 with a grace period of 6 to 12 months
business4 hours ago
We matchmade people within the same buildings so they could stay safely inside and share resources, Rana Hajirasouli, founder of the company, said
uae4 hours ago
After a gap of nine years, the National side will play in the premier T20 tournament scheduled to be jointly hosted by the UAE and Oman
sports4 hours ago