Jake Madders, Co-director of Hyve Managed Hosting, weighs the pros and cons of the two distinct types of crypto exchange hosting.
Cryptocurrency has boomed in recent years, helped by people like Elon Musk joining the conversation and increasing the trust in its value, helping it to reach the mainstream. As the number of investors placing their money in cryptocurrency continues to grow, finding a reliable trading platform has never been more important. Hence, the need for crypto exchanges.
The ongoing growth of interest in cryptocurrency and the demand for technological development and maintenance has generated the need for different exchanges. According to a recent study conducted by crypto market data provider cryptocompare.com, cryptocurrency exchanges have increased their market share by 13% since October 2020. Bitcoin gained 13% of the market share from October 2020 to January 2021, going from 61% (USD$347 billion) to 74% (USD$ 1.41 trillion). The study pointed to crypto exchanges increasing their transparency by providing data as well as improved security as reasons for this growth.
Whilst the world of digital currencies continues to bloom, the issue around crypto exchange hosting becomes a challenge. Choosing between cloud vs on-premise hosting might not be an easy decision to make as it depends on the investors' needs. Nevertheless, with exchanges sites having to be active 24/7 in order to offer optimal performance, the cloud could be the ideal option.
When it comes to crypto exchanges, performance has always been a key factor. However, there’s a bigger picture that individuals need to look at. With the industry always evolving and technology developing constantly, flexibility is crucial in order for crypto exchanges to adapt. Moving an exchange to another location can be a long and costly process but on the cloud, this process can be done in a matter of hours and at a much lower cost. Speed on the cloud is clearly a valuable benefit, allowing crypto exchanges to set up the infrastructure on a cloud system much faster than on-site hosting.
When it comes to crypto exchanges, performance has always been a key factor.
Customisation is essential in order to meet the requirements of the ever-changing marketplace. The cloud offers the option to scale and implement storage, security and developer tools when required to meet the demands of the market and investors quickly and efficiently. Another benefit that is important to keep in mind when choosing the right hosting is latency. Users using a cloud hosting provider can opt for a data centre near their end-users which will reduce the latency, allowing an exchange to provide instant information directly from the market or from a transaction.
There’s also the environmental aspect of the cloud, which is a benefit that is often overlooked. As the adoption of cryptocurrencies continues to expand, a sustainable and eco-friendly hosting choice feels like something important to consider.
Whilst the cloud seems to tick all the boxes as the perfect space for crypto exchanges, many of these platforms still use on-premise hosting. A key aspect offered by on-premise is the option to have full control and responsibility. For some, this might sound like a great advantage and the reason why on-premise can be the right choice. Still, there are other points to consider. Having full responsibility means being accountable for managing and maintaining the software which can require a fair amount of knowledge and also time. Some users might not have the right level of expertise to manage their cryptocurrencies and might require a specialist to do it for them resulting in an extra cost. On-premise hosting also means that servers could be more vulnerable, whereas data centres are secure environments with 24/7 security and cooling and fire protection measures.
It is not surprising that, over the last few years, cybercriminals have developed an interest in cryptocurrency. With hundreds of billions of dollars being traded daily on crypto exchange platforms, they are the perfect target for hackers. Cryptocurrencies are not easy to hack, but crypto exchanges are. This is one of the reasons why cryptocurrency owners have worried about choosing the cloud over on-premise hosting. Nonetheless, the cloud has become a safer environment for crypto exchanges. Risks have been minimised thanks to security being increased and improved on the cloud, helping mitigate issues concerning the protection of cryptocurrencies.
[ymal]
When deciding between cloud and on-premise hosting, there are numerous factors to examine. On top of that, individuals need to keep in mind their investment plan and take into consideration what the future of the market could look like. With technology evolving and cryptocurrencies gaining popularity, finding the right crypto exchange hosting option will continue to be a challenging yet very important decision.
Gold is one of the longest-standing assets in the history of human investment. The asset has long been a store of value for hedging the economy. For some time, gold was even the basis for the US dollar’s value. However, a new asset has come into play: Bitcoin.
Considered by many to be digital gold, the next step in the precious metal’s history, investing in Bitcoin is debatably a good idea. If you’re unsure as to which is the best place to put your money, this guide is for you. We’ll break down the pros and cons of each investment, ensuring you know just where your funds should go. That, and we’ll establish the best places for you to invest in such assets.
Long-term investors might recommend still investing in gold. It’s what they know, after all, and it’s what made them successful in the past. They’re not entirely wrong, either.
For one, gold is still a reliable asset. It’s not too volatile, nor is gold going anywhere anytime soon. There are multiple ways to invest in it, as well.
Online gold exchanges, for instance, allow you to invest anonymously and with just a debit or a credit card. You simply have to create an account on the exchange and go from there. You can purchase the assets on the exchanges without much trouble, thanks to their various trading methods. They also allow you to hold the assets in a wallet - much easier than storing them with traditional gold.
Otherwise, investing in gold is expensive. You’ll need enough funds to afford a whole unit of the metal to start. On top of this, you’ll need to pay extra in vendor and convenience fees. Then you have storage fees.
Gold is still a reliable asset. It’s not too volatile, nor is gold going anywhere anytime soon.
Storing gold is pricey. You can’t just keep it in your home. You need a safe to put it in. Safes can be expensive, though they’re worth it to protect your investment. Otherwise, you can pay a monthly fee to store it in a third-party space. However, note that you’re putting control of your assets in someone else’s hands if you do so. This is also an endlessly recurring cost on your investment.
Also, while gold is a fantastic stable investment, it’s not a great one for short-term profits. Sure, the asset may rise in the long-term, especially when considering the global economic climate, but otherwise, it stays around the same price. It could be years before you see a significant profit on your gold investment.
If you’re risk-averse, then this is great news for your investment personality. Otherwise, you may want to put funds elsewhere.
Bitcoin is based on a blockchain. There’s no intermediary to go through, meaning transaction fees are much cheaper than otherwise. It’s also a global currency, allowing you to convert Bitcoin to any fiat, and vice versa, no matter where you are in the world.
On top of this, there is a limit on Bitcoin. There can only ever be 21 million of the asset, preventing inflation that fiat currencies are susceptible to. No one can create more Bitcoin - only that which is in the market can be traded. Bitcoin is verified by miners, users that take advantage of their computer’s power to ensure there isn’t any double-spending or similar bad activities.
Becoming a miner is difficult, but they are rewarded handsomely in Bitcoin. The more miners that are out there, the more Bitcoin that is put into circulation. Over time, this makes the asset less rare, eventually causing the price to stabilise. However, note that getting in early, assuming the asset is successful, would mean holding such a rare asset once it stabilises.
[ymal]
Speaking of stabilisation, Bitcoin is much more volatile than gold. The price has gone up or down by the thousands in just a day, throwing off many investors. Those who aren’t a fan of risk might want to heed this activity. Of course, this is great for short-term profit if you’re smart. The long-term prospects of Bitcoin are yet to be decided.
Now you’re aware of both Bitcoin and gold. Decide which is best for your investment portfolio in 2021. That way, you’ll be better off in the future with your funds.
Cryptocurrency can be a risky business, especially if you trade without knowing its basics. You can make huge profits, but you can also go bankrupt before you even study the market. There are several things you need to know, including how to choose a crypto exchange. Selecting the wrong crypto exchange could lead down a path riddled with distractions and wasted effort. Read on for five important tips that will help you choose the right cryptocurrency exchange.
Thorough research will help you choose a secure and legitimate exchange platform. There are a lot of incompetent exchanges that not only expose investors to fraud, but also end up scamming the little investments left by online scammers. Before settling on an exchange, find out if it can protect you from fraud.
Cryptocurrency exchanges have different fee structures and transaction fees. Many people overlook this factor and end up choosing exchanges with high transaction fees, not knowing that they could have used a good exchange that offers discounted fees. An exchange with tokens often has fewer transaction fees than those without. If you’re comparing two exchanges with tokens, pick the one holding more. A crypto exchange comparison can help you pick the exchange with the most appealing fee structure.
There are three types of cryptocurrency exchanges: brokers, P2P exchanges, and trading platforms. Learn about what each entails. Cryptocurrency brokers work like forex brokers by setting prices and providing a platform where buyers can purchase cryptocurrencies.
P2P exchanges link sellers and buyers for direct interactions and leave them to agree on transactions. They create a secure system to allow safe exchanges of cryptocurrencies. Most investors use trading platforms. Instead of direct interactions between buyers and sellers, each party interacts with the platform. The sellers place their cryptocurrencies on the platform, and buyers place their orders. The platform charges a transaction fee. Learn the basics of each before making a decision. Research the pros and cons of each and choose the one that best appeals to you.
[ymal]
Cryptocurrency purchase methods vary based on exchanges. Some platforms require users to use PayPal or bank transfers, while others accept debit and credit cards. Still, some require buyers to purchase using cryptocurrency. Before settling on an exchange, find out how long it takes to complete a purchase. A platform that processes transactions instantly is better than another that takes days or weeks.
User experience and functionalities is a critical factor to consider, especially if you’re trading cryptocurrency for the first time. Exchanges with good user experiences attract the largest growth in transaction volumes. Some platforms provide their users with free tokens, and it would be helpful if you choose an exchange with such offers.
If you just got into cryptocurrency, it’s essential to weigh different factors before investing your money. Exchanges operate differently and have varying degrees of security and user experiences. Explore all the available options and pick the exchange that guarantees users’ safety.
Bitcoin stabilised near $50,000 on Wednesday following news that payments business Square, headed by Twitter co-founder Jack Dorsey, purchased a further $170 million worth of the cryptocurrency.
In its Q4 earnings report released on Tuesday, Square disclosed that it had bought 3,318 bitcoins for a combined $170 million, following on from a $50 million purchase disclosed last October. Square now has 5% of its total assets invested in Bitcoin.
The price of the virtual currency surged following the report, surging 7.5% to settle around $50,683 by 4 AM EST after hitting $51,369 hours earlier. As has become routine during Bitcoin bull runs, other cryptocurrencies saw surges of their own, with Ethereum and XRP climbing 11.3% and 7.4% respectively.
"Square believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their own financial future," Square said in a statement. The firm stated that it plans to continually assess its aggregate investment in Bitcoin relative its other investments.
Square CEO Jack Dorsey is a well-known proponent of Bitcoin, believing that the token will eventually become the “single currency” of the internet.
Shortly after reaching record highs above $58,000, and only days after crossing the $50,000 milestone, comments from US Treasury Secretary Janet Yellen questioning the efficiency and value of cryptocurrency caused a widespread sell-off across the crypto industry. Bitcoin’s own price dropped 12.5%, falling back under the $50,000 mark.
[ymal]
Bitcoin’s 400% rally since October has coincided with attention from prominent companies including Tesla, PayPal and BNY Mellon, all of which have announced plans to accept Bitcoin from clients in the future.
Bitcoin is the most valuable cryptocurrency in the world, with a value making up 60% that of the global crypto market.
The cryptocurrency was struck by a widespread market sell-off at the beginning of the week, ending a bull run prompted by both corporate and retail interest.
Bitcoin, which accounts for 60% of the cryptocurrency market by value, was sitting at around $57,500 at midnight on Monday before tumbling over the day’s trading and finally coming to rest down 12.5% at $48,876 by 8:15 AM Tuesday in London.
Most major cryptocurrencies also suffered a sharp drop on the day, with Ethereum – the world’s second-largest cryptocurrency – falling 14.8% to $1,600. The meme asset Dogecoin, which recently surged in popularity due to tweets from Tesla CEO Elon Musk, also shed 10% to $0.0508.
CoinMarketCap.com estimates that the global cryptocurrency market fell 14% over the last 24 hours.
The sell-off, which began on Monday, was apparently triggered after US Treasury Secretary Janet Yellen criticised Bitcoin, describing it as “highly speculative” and an inefficient means of payment.
“People should beware it can be extremely volatile and I do worry about potential losses that investors could suffer,” Yellen said during an interview with the New York Times.
Bitcoin has surged in price over the past year, reaching over $1 trillion in total market value. Its rising value and status as a mainstream mode of payment has drawn further attention from both individual investors and established companies, which has helped to lift other virtual tokens along with it.
[ymal]
Crypto’s latest bull run was prompted by Tesla’s investment of $1.5 billion in Bitcoin earlier this month, boosting the currency to a then-record high of $43,968. CEO Elon Musk, who had previously tweeted positively regarding Bitcoin and cryptocurrency more broadly, distanced himself from Tesla’s decision and remarked that the price of Bitcoin and Ethereum seemed “high”.
Finance Monthly hears from Stan Cole, Head of Financial Institutions at Inpay, on the progress that has been made towards creating seamless cross-border payment solutions.
Modern technology continues to advance at astonishing speeds, and recent years have given us plenty of remarkable developments in the fintech sector in particular. Yet, despite phenomenal progress in other areas, the trillion-dollar cross-border payment industry was stuck in the dark ages for an inexplicably long time. Banks and other financial institutions had to make do with outdated models, which slowed down international transactions, rendering them expensive and unreliable. And to make these frictions even more frustrating, many cross-border payment systems offered very limited transparency.
Improvements were long overdue, and thanks to rapid modernisation within the industry, customers are now enjoying a far better experience. However, we’re only at the beginning of the cross-border payment revolution. In fact, changes are expected to come even faster in the wake of the coronavirus. For example, Stephen Grainger, executive vice president of Mastercard’s New Payment Platforms, believes that global eCommerce will transcend the need for face-to-face transactions, while more remote and migrant workers move overseas, and more people enter the gig economy. “As the change becomes reality, it's the financial institutions that will be expected to step up and provide efficient cross-border payment systems that their clients demand — especially in regions where the need for trusted, reliable cross-border payments is increasing rapidly,” he explained to Business Insider.
With goods and services moving more quickly and across greater distances than ever before, customers are increasingly demanding cross-border payments that are as seamless and convenient as domestic ones. Huge progress has already been made and the future is just as exciting, and we’ll explore how all of that has transpired below.
Cross-border payments have traditionally been the domain of correspondent banks. While these institutions are still major players in the industry, the rapid advances in technology and consumer demands mean that times have changed. With the click of a button, people are able to send emails, photos and videos globally, and these are received in real-time. Why shouldn’t consumers expect the same convenience when wiring money abroad?
With goods and services moving more quickly and across greater distances than ever before, customers are increasingly demanding cross-border payments that are as seamless and convenient as domestic ones.
There have been a host of new arrivals in the cross-border payments sector, so people are no longer forced to undertake a costly, slow, non-transparent international bank transfer. In lots of countries around the world, innovative services have made it possible to make an instant payment to a mobile number, email address or another unique ID form. This ID is mapped to the correspondent bank details, so in many nations, sending money is already as easy as sending an email. This marks a huge evolution from the traditional way of transferring money internationally.
In the face of stiff industry competition, banks need to embrace today’s consumer demands more than ever, and speed up their product propositions, reduce costs, and offer new, modern digital solutions if they are to retain their customers.
The future of payments is digital and tokenised, which explains why stablecoins have been gaining such popularity. These are cryptocurrencies that attempt to peg their value to an external reference, like a hard currency or commodity, in order to resist the high volatility usually experienced by the likes of bitcoin.
We have already seen this digitisation in action in South Korea, which has started to move from card to stablecoin payments. Likewise, Chinese central banks have partnered with e-money providers to test and provide central bank digital currencies (CBDC), vowing to launch a system like this before the 2022 Winter Olympics in Beijing. “As cross-border payments involve numerous players, time zones, jurisdictions, and regulations, they are often slow, opaque, and expensive, making us believe that an interoperable CBDC could play a role in improving cross-border payments,” explained Senior Editor Mirela Ciobanu in a feature for The Paypers.
However, it remains to be seen how large financial players in the current marketplace will respond to this shift. They could try to remain in the centre of such infrastructure and charge fees to their users for making transactions, or merely provide platform access to allow users to make peer-to-peer [stablecoin] transactions. We already know that Visa plans to help partners launch cryptocurrency services through its partnerships with wallets and exchanges, while Mastercard is also introducing cryptocurrency to its network, “allowing [customers] to transact in an entirely new form of payment”.
The future of payments is digital and tokenised, which explains why stablecoins have been gaining such popularity.
Incorporating blockchain into the cross-border payments space will help resolve key drawbacks of using correspondent bank transfers for overseas transactions. Banks that proactively adopt blockchain solutions will be able to attract and retain customers by offering cheap, real-time international money transfers that are more reliable and secure.
As Payments Journal notes in its feature on blockchain in cross-border payments, many issues with international transfers “stem from the high number of intermediaries in the form of correspondent banks that are involved in processing a transaction. Each additional intermediary drives up the processing fee, increases the number of failure points, and adds to the risk of fraud somewhere along the payment pathway”. Blockchain means these intermediary stages are not required, and the risk of fraud is significantly reduced, as all transaction information is stored on the network and is very difficult to modify.
A big obstacle to blockchain adoption has been its regulatory uncertainty. However, the situation is changing now that governments across the world are increasingly looking into blockchain, and developing CBDCs to distribute and receive payments outside of traditional banking systems.
As an ex-banker and an ex-oil/gas professional, I like the analogy of banks being oil tankers — they’re big and strong, but take a long time to change direction when out at sea. The key issue here is that banks tend to rely on systems for international payment products which were developed last century, requiring customers to provide standardised legacy data. And as banking systems vary between different countries, one size certainly doesn’t fit all.
Fintech PSPs, on the other hand, are speedboats — fast and agile, jumping over the waves. Collaborating with these organisations means that banks can take advantage of the right data and access new instant payment infrastructures that are being created around the world.
[ymal]
Having worked on both sides, my view is that banks and fintech PSPs both need each other. Banks have already acquired a long-standing, loyal customer base, and although fintech PSPs don’t yet have that in their favour, their freedom from client acquisition and legacy infrastructure costs lets them concentrate exclusively on product and service delivery. Therefore, teaming up with them enables banks to enhance their product offering, improve time-to-market, reduce costs, and retain their customers. Collaboration beats competition, and results in a win-win outcome for both sides.
The price of Bitcoin continued to climb on Wednesday, setting further records as it gains greater acceptance among mainstream investors and companies.
Bitcoin’s value reached as high as $51,140 before sinking back down to $50,828.83 in early Wednesday trading in London, extending a bull run for the currency that began in October last year.
Only a day earlier, Bitcoin raced past the $50,000 milestone on several stock exchanges, earning renewed attention from investors who witnessed the coin’s jump to $48,000 less than a week prior.
Bitcoin has been on a steady rise since 2020 as stock market turbulence drove investors to seek out new havens. Late in the year it received a crucial boost towards the payments mainstream after PayPal announced that it would accept the currency as a payment method on its platform. February 2021 also saw Elon Musk’s Tesla invest an unprecedented $1.5 billion in Bitcoin, a show of confidence that triggered the coin’s most recent price surge.
This rise has also lifted other cryptocurrencies, with rival token Ethereum reaching all-time highs of its own.
However, investment gurus have cautioned that Bitcoin’s rally may be short-lived. JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a memo on Tuesday that the price surge “looks unsustainable” given current volatility.
“Movements since January this year appear to have been more influenced by speculative flows," the analysts said.
[ymal]
Whether or not Bitcoin’s price drops down again, it is unlikely that cryptocurrencies’ march towards the mainstream will be reversed. Earlier this month, BNY Mellon also stated that it will begin to hold, transfer and issue Bitcoin and other virtual currencies for its clients, furthering the tokens’ adoption in the financial services sector.
Cryptocurrency, the digital currency created with cryptography technology, continues to increase in popularity. More users continue to adopt the use of cryptocurrencies into their payment practices as a secure method to send money without geographical limitation. This might sound familiar. After all, the American platform Paypal operates with a similar mission. For those unfamiliar, PayPal has continued to operate forward-thinking digital payment options for nearly 20 years. Now, over 300 million consumers and merchants transact using the platform. With many similarities in place, it only makes sense that Paypal Holdings Inc. (NASDAQ: PYPL) would eventually leverage the increased interest in cryptocurrency since new cryptocurrency users require a trusted platform.
Luckily, PayPal has since made the announcement that all U.S. users can buy, sell and hold specific cryptocurrencies. This announcement is promising for future adoption since many users struggle to find a Bitcoin Exchange that they trust. Therefore, purchasing on Paypal might be a small step to ease new cryptocurrency users into the crypto space.
To start purchasing, Paypal requires users to have a Cash or Cash Plus account. Further details can be consulted using the terms and conditions. While PayPal is designed as a secure method to send, receive and access funds, the app itself cannot protect users against the volatility of the cryptocurrency they choose to purchase. Therefore, the same level of attention and research should be considered before making any purchases. The Paypal app has released many articles designed for beginners to help users learn at their own pace. Resources provided include information about the cryptocurrency ecosystem's inner workings, the risks of investing and information on future technology initiatives.
After determining the type of cryptocurrency that a user wants to purchase and in what amount, the tactical steps are easy. Users can select "crypto" from the Paypal dashboard. From there, users can choose from available cryptocurrency options, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTH) and Bitcoin Cash (BCH). To make a purchase, the user simply needs to click the "buy" button, which will prompt them to verify their identity. Paypal will display the spread to show users the conversion rate and associated fees they will pay. If numbers look favorable, users can proceed with the transaction, adding coins directly to their PayPal digital wallet.
Within the application, users can continue to track the prices of their currency through different charts. Alternatively, users have the opportunity to make purchases from any sellers that accept PayPal. To do so, the cryptocurrency used to make a purchase will be instantly converted into fiat currency, which will be paid forward to the merchant.
This announcement is only the beginning of Paypal's plans for cryptocurrencies. The company also announced that adding this offering to Venmo is also on the roadmap for 2021. However, many continue to question the market for this service as the potential still exists for consumers to lose money if they don't know what they're doing. Paypal rebuttal was that this initiative would increase the education around cryptocurrency offerings.
To put users at ease, the New York State Department of Financial Services (NYDFS) issued Paypal a "Bitlicense," one of the first of its kind. This framework was created in the efforts to encourage, promote, and assist interested institutions to have a regulated way in which they could join the cryptocurrency marketplace within New York. Paypal also works in Tandem with the Paxos Trust Company, another American company, to increase security. Users can also rest assured that Paypal has dabbled in this area before, once offering services with Facebook's digital currency, Libra. Although this was later suspended, many financial regulators took note of their efforts.
This initiative continues to excite many cryptocurrency enthusiasts as the path to widespread adoption becomes more clear than ever before. On the business front, PayPal has also taken an advantageous position to help lead the charge toward digital currency development by central banks and large corporations. Dan Schulman from PayPal shares that working with regulators on CBDC's is still among the company's goals.
An independent survey of more than 900 UK-based investors commissioned by broker HYCM has investigated which assets the traders plan to buy or sell in the coming year.
Among its findings, the survey revealed the most popular avenues for UK investors to place their money. 70% of respondents had put their money into cash savings, while 40% invested in stocks and shares and a further 38% invested in property.
The survey also asked investors about their investment plans for the new year. 38% of all respondents said they would be putting more money into their savings accounts, while 27% planned to purchase more stock and 21% planned to invest in property.
Conversely, the survey found that the least popular asset classes among UK investors were cryptocurrencies, forex and classic cars, which were respectively favoured by only 21%, 20% and 19% of respondents. However, 18% planned to invest in cryptocurrency during 2021.
Also noteworthy was investors’ overall optimism in their strategies. Although 39% of respondents said that their finance and investment outlooks were radically changed by the COVID-19 pandemic, a full 72% were confident in the way they were managing their portfolios in the current climate, and 53% were confident of being in a stronger position once the pandemic ended.
Giles Coghlan, HYCM’s Chief Currency Analyst, remarked that the findings of the new survey were notably similar to those seen at the beginning of the pandemic.
[ymal]
“While fiscal and monetary stimulus have been positively received by the market, investors are still treading carefully,” he said. “This is why cash remains king, despite interest rates being at record lows.”
Bitcoin continued its gains on Tuesday, reaching a new record high as a surprise investment from Tesla made the asset’s drift towards the mainstream more convincing.
The cryptocurrency hit a high of more than $48,000 during morning trading before dropping back below the $47,000 mark.
Naeem Aslam, chief market analyst at AVATrade, expressed optimism at the apparent bull rally, remarking that it seems like “nothing is going to stop the bitcoin price from touching the $50,000 price level”.
The record gains were observed as Bitcoin has seen a significant rise in attention from mainstream firms – first from PayPal, which moved to adopt Bitcoin as a supported transaction method on its platform last year, and more recently from Tesla, which revealed on Monday that it had invested $1.5 billion in the currency.
Like PayPal, Tesla also said that it planned to accept payments from its customers in the form of Bitcoin.
However, Bitcoin is not the only cryptocurrency to have seen a surge of investor interest. Dogecoin, the meme currency boosted by Elon Musk as a “joke”, has risen 800% in a matter of days. Bitcoin’s more serious rival, Ethereum, also reached a record high of $1,784.85 on Tuesday morning trading.
While Bitcoin’s jump on Monday was the largest daily rise seen in more than three years, it follows a period of significant growth. The cryptocurrency has more than doubled than value over the past two months as traders have sought out alternative wealth stores.
[ymal]
The total capitalisation of the cryptoasset market is now an estimated $1.2 trillion, though regulation of the digital-only currencies is still light.
Tesla, the world’s highest-valued automotive company, bought around $1.5 billion worth of Bitcoin in January and signalled its intent to start accepting the cryptocurrency as a form of payment.
In a securities filing on Monday, Tesla said it had “updated its investment policy” and was looking to invest in “reserve assets” such as gold, digital currencies o gold exchange-traded funds. The company also said that it had purchased $1.5 billion worth of Bitcoin and could “acquire and hold digital assets from time to time or long-term".
"Moreover, we expect to begin accepting Bitcoin as a form of payment for our products in the near future, subject to applicable laws and initially on a limited basis," Tesla continued.
The news promptly caused the price of Bitcoin to surge 14% to a record high of $43,968 per token.
Tesla’s move into Bitcoin represents a significant milestone in the cryptocurrency’s uptake among businesses. While some financial institutions, including PayPal, have moved to adopt the currency as an accepted form of payment, Tesla is the highest-profile non-financial company to invest heavily in it.
With Tesla’s cash and cash equivalents coming to around $19 billion at the end of 2020, its new Bitcoin investment is also a significant move for the company itself.
The development comes on the back of comments from Tesla CEO Elon Musk, who stated that Bitcoin was “on the verge” of becoming more accepted among investors.
[ymal]
“I was a little slow on the uptake,” he said in a chat on the social media app Clubhouse, adding that he should have bought into Bitcoin eight years ago.
Musk has also recently become one of the principal drivers behind the dogecoin cryptocurrency, with his “joke” comments about the digital token raising its market value by over 800%.
Dogecoin has surged after Elon Musk and other celebrities appeared to endorse the joke token on Twitter.
The meme-inspired cryptocurrency rallied 65% in 24 hours to reach a peak of $0.0844 on Sunday evening before falling back. It regained 19% during Monday morning trading in London, reaching $0.0704.
Dogecoin’s market value reached $10.7 billion at its highest point on Sunday, becoming the tenth most valuable digital coin on CoinMarketCap’s ranking.
Dogecoin was created in 2013 based on the “doge” meme which depicts a Shiba Inu dog alongside captioned text in Comic Sans font.
The currency’s all-time high came alongside renewed attention from Twitter influencers. On Saturday, rapper Snoop Dogg tweeted a picture of one of his album covers edited to replace his face with the dogecoin Shiba Inu, captioned “Snoop Doge”. He tagged Elon Musk in the post.
Musk himself has emerged as a significant dogecoin booster, sending the price soaring with successive tweets about the currency. His late January tweet of an altered Vogue cover entitled Dogue led to an 800% jump in the price of dogecoin.
Musk has publicly said that his “endorsements” of dogecoin are meant as a joke, but his continued tweets have helped to raise the profile of the cryptocurrency and repeatedly boost its value.
[ymal]
The spotlight thrown on dogecoin by Snoop Dogg and Musk has attracted other celebrity endorsements to the cryptocurrency. KISS singer and bassist Gene Simmons tweeted last week that he had “bought a big position in Dogecoin” and further promoted the cryptocurrency to his followers.
