Cryptocurrencies are a kind of digital currency that are designed to be safe and secure. A shared ledger is used to keep track of all transactions and are noted. Cryptocurrencies are totally virtual digital data saved in a digital wallet. Transactions are made without the need of an intermediary or middlemen, avoiding the use of banks. Although the currency can be used to purchase goods and services, only few retailers accept it. The payment is made through a technology known as blockchain, which records and maintains transactions across the internet in numerous locations. There are thousands of different cryptocurrencies. The first online currency, Bitcoin, was formed in 2009.
Bank of New York Mellon, America’s oldest bank, has announced plans to offer bitcoin services for the first time. While investing in digital currencies like bitcoin, which has been rising to all-time highs, can be a roller coaster with numerous risks, it hasn’t prevented Elon Musk, the CEO of Tesla, from purchasing $1.5 billion worth of it and investing in it. The announcement along with buy-in from institutional investors has pushed bitcoin values to new highs, surpassing $54,257.80 per coin for the first time ever. The move by BNY Mellon to accept cryptocurrencies and their services is yet another support for the digital asset. Growing customer demand for digital assets, the maturation of advanced solutions, and improved regulatory clarity, according to Roman Regelman, CEO of Asset Servicing and Head of Digital at BNY Mellon, present them with a fantastic opportunity to expand their current service offerings into this new arena.
Mastercard also plans to open up its network to a limited number of cryptocurrencies, and it previously offered credit cards that allowed users to use their cryptocurrencies without going via its main platform. Mastercard said that, this would open up a lot more options for shoppers and retailers, allowing them to trade in an altogether new form of payment. This shift may also introduce new customers to merchants who are already interested in digital assets.
Well some officials have also showed their support of cryptocurrencies. The Mayor of Miami, Frances Sueres, has recently proposed a resolution offering to pay municipal employees in Bitcoin. Eric Adams, the incoming mayor-elect of New York City, and Francis Suarez, the mayor of Miami, have both declared that they will accept Bitcoin as payment.
Bitcoin has the ability to be both inflationary and deflationary at the same time. It’s too early to know how monetary aggregates and circulation velocity will be affected. By increasing the de facto money supply, it has the capacity to increase or reduce the velocity of circulation of fiat money and near-money.
By displacing inferior or “bad” money, Bitcoin has the ability to restore Gresham’s Law. To avoid deflation, central banks increase the supply of fiat money. Consumers and businesses then spend the money, increasing the demand for products and services. As a result, inflation occurs. This policy hasn’t worked out effectively because consumers and businesses have been so cautious since 2008. They’ve been hoarding money rather than spending it.
Crypto’s funding craze – A venture-capital mania reminds the dotcom era’s glory days. Coinbase Ventures’ Shan Aggarwal compares the mania to the dotcom boom of the 1990s, when investors rushed to fund the companies that would lay the groundwork for the web economy. While the internet bubble was primarily nurtured in Silicon Valley, the current age is even more impressive. The “bitcoin” boom covers Asia $1.4 billion was raised this quarter, Europe, $1.1 billion and America, $3 billion. Africa and Latin America are also home to crypto coins.
The crypto market is one of the most promising locations to invest; yet, investing in bitcoin may be dangerous, resulting in significant losses and gains for investors. You may use the crypto market to secure your financial position and earn money if you can manage the risk.
II MBA, DSCE