Rather, and leading into the next point of conversation, is that stablecoins and other cryptoassets connected to external assets seem to represent the next iteration of mainstream crypto adoption. The primary upside and attraction of stablecoins is the – unsurprisingly – stability that many of these cryptoassets offer, enabling crypto to be used as a transactional medium versus a speculative investment.Īs the calendar flips to 2022, and as geo-politics continues to influence and partially direct the cryptoasset conversation, the rise of stablecoins is a trend that cannot be ignored. As per the report from the President’s Working Group, stablecoins utilization increased by 500% between October 2020 to October 2021, and it does not seem likely that this pace of adoption will decrease. Stablecoins, whether they are liked or not by all members of the crypto community, seem to be the most viable way in which non-expert and mass market adoption of crypto will commence. The sudden price crash wiped more than $1 trillion worth of value from the combined cryptocurrency market capitalization in recent months.Not as scintillating as watching prices for NFTs vacillate, but blockchain enabled ownership appears to be the future of NFTS for mainstream adoption. The bitcoin price crashed back from an all-time high of around $65,000 per bitcoin set in April after China moved to again crackdown on cryptocurrencies in the country and Tesla billionaire Elon Musk rowed back on plans for closer bitcoin integration. This competition among cryptocurrencies is another risk factor that prevents them from becoming safe-haven assets at this stage." "We view gold as a defensive inflation hedge and crypto as a risk-on inflation hedge. "Gold is competing with crypto to the same extent it is competing with other risky assets such as equities and cyclical commodities," the bank's researchers wrote. Meanwhile, Goldman analysts warned the competition between bitcoin, ethereum and a myriad of ethereum rivals that have sprung up in recent years is exacerbating volatility and holding cryptocurrencies back from become so-called safe-haven assets like gold. bitcoin's 2021 rally has been eclipsed by the ethereum price as developers flood the ethereum blockchain. The bitcoin price has soared over the last few months, dwarfing its previous 2017 bull run. Helping you understand the world of bitcoin and crypto, every day MORE FROM FORBES 'We Just Ripped The Pin Out Of The Grenade'-Radical New Bitcoin Company Issues Stark Coinbase Price Warning By Billy Bambrough Last month, the chief investment officer at $100 million digital asset investment manage Two Prime predicted ethereum will eventually "flip" bitcoin to become the largest cryptocurrency by value.īitcoin, at a price per coin of $32,000, currently has a market capitalization of around $600 billion, while ethereum, at $2,100 per ether token, is worth a combined $250 billion.ĬryptoCodex -A free, daily newsletter for the crypto curious. Goldman Sachs is the latest in a string of investors to name ethereum as a better bet than bitcoin. This year, DeFi, the idea that traditional financial products can be recreated using crypto technology in place of the bank, has grown to a multi-billion dollar market while NFTs, tokenizing all manner of digital assets and media on the blockchain, have captured the attention of artists, creators and sports stars. Ethereum has seen a flurry of activity on its network over the last 12 months due to the soaring popularity of so-called decentralized finance (DeFi) and non-fungible tokens (NFTs)-both overwhelmingly built on ethereum's blockchain.
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