You can send value anywhere with almost no fee, instantly. You can do anything you want with your money, nobody will have a say about it. You aren’t reliant on banks anymore to store/transfer value. Your government won’t print it at any time without notice, deflating its value.
One of the core purposes of Bitcoin, from its original creation, was as a transactional medium. When stored in a digital wallet like Coinbase, it can be sent to another wallet anywhere in the world to pay for goods or services, and over the years it’s been used for just that. That is, it’s used in place of traditional currency.
What they were worth was negotiated, with one person once offering 10,000 Bitcoins for a couple of pizzas. While a single Bitcoin was worth pennies in 2010, today it’s worth more than $6,000, having peaked at more than $19,000 at the end of 2017. Back when Bitcoin was first created, individual "coins" had no intrinsic value. Over time, though, as more uses for the currency have been created and it’s grown more popular, BNB Bitcoin’s value has risen in turn.
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Nevertheless, though these help in future prediction, the real picture of BTC
price movement is obtained by technical and macroeconomic factors. Bitcoin
price action for the days to come could be known with the help of on-chain metrics like Realized price, Delta price along with Thermo price.
The upcoming days for the crypto market is also dependent on the US Federal Reserve’s rate hike that is scheduled on September 21st. The Wall Street experts are of the opinion that the Fed will go ahead with a decision to raise the interest rates by another 75 bps.
The likelihood of a 75 bps rate increase is 67%, according to the CME FedWatch Platform. Wall Street banks anticipate an additional 75 basis points in September. Meanwhile, the federal reserve federal reserve Multinational Investment Bank Followers : 0 View profile upcoming decision to increase the interest rates will all depend on CPI and employment stats for the month of August.
A big thanks to Diego Salvador for helping me write this episode. We wish them all the best. And as always, be sure to subscribe and I will see you next time. Him and the rest of the team over at Rootstock are doing fantastic work with cryptocurrency and Sidechains. I'll be sure to leave a link to their website in the top of the description so you can go check it out and learn more if you wish.
Sidechains, just like any other Blockchain, need their own miners to help protect them from nefarious actors and attacks which people would like to leverage against the network. However, these often equate to mere pennies. Because of this, transaction fees are the basic reward that is offered to miners. However, since wealth isn't actually created on the Sidechain there is far less incentive for miners to actually work on it and help protect it.
However, while this all sounds great it's a perfect example of good in theory but not so much in practice. Nevertheless, this hasn't stopped people from trying with groups such as Blockstream exploring the idea and our friends over at Rootstock co-creating a Sidechain which is allowing Litecoin and Bitcoin to execute smart contracts and all without changing the core software of the original currency. Sidechains as an idea have existed and had been floating around for quite some time now, the bases is to extend the decentralization of trust into other sectors and to other digital assets.
Bitcoin doesn’t have that. Governments have strict measures to prevent these problems in their currency — though they don’t always work — but Bitcoin, being independent, can’t implement such checks, and attempts at regulation are largely doomed to fail. Its value is dictated entirely by the market for it. It was created independent of any government, and remains independent. It has soared to incredible heights, but has also experienced huge price shocks, and there’s been many accusations of insider trading, cryptocurrency price manipulation, and other dubious tactics.
And it makes sense when you think about banks and credit card providers needing to run brick-and-mortar offices, server farms, and so much more equipment that centralized financial providers need to run in order to function.
However, the CPI stats will ultimately influence the decision on interest rate raise this month. August month’s US job data reveal that the employment rate has dropped to 315k from July’s 528k. Conversely, August’s unemployment data has spiked to 3.7%.