Coinbase executives said some relatively new cryptocurrency assets are ready to challenge the current financial system by using improperly designed features for Bitcoin.
Brian Armstrong - CEO of Coinbase
In an incoming post Project Syndicate, Brian Armstrong points out the power of controversial private coins whose protocols are designed to make transactions untraceable.
In contrast, the Bitcoin blockchain leaves transaction traces, regardless of misconceptions.
According to Armstrong, private coins like Zcash and Monero are still being dissected by public opinion but have kept their promise to create a much safer financial system that can protect users' sensitive data.
"This change is like when websites move from HTTP to HTTPS and become a global standard: users know that their information is protected by default."
Unsurprisingly, these innovations set off alarm bells for banks, regulators and law enforcement. Just like the early Internet needed encryption to allow digital commerce, cryptocurrencies need privacy protection to unlock their full strength and potential. Whether it's protection against authoritarian regimes, data collectors or criminals, the best way to ensure that sensitive financial data isn't hacked is to prevent them from being exposed right away. head".
In addition, increasing access to non-custody e-wallets allows users to store private keys to transfer money, instead of relying on increasingly changing third-party norms.
Even with the advent of private money, Armstrong insists law enforcement and regulatory agencies will continue to have a range of powerful tools to maintain their financial order. It is likely that governments will send documents to exchanges and request tracking of transactions between fiat and cryptocurrencies.
Bitcoin is enhanced by this factor
According to Bitcoin trader Dan Tapiero - the founder of DTAP Capital and Gold Bullion International - the recent price action in the investment-grade corporate bond market has been "truly incredible, even once in a lifetime." .
The chart below signals the corporate bond index almost reached an all-time high after a severe correction of 20%. That is the result of the Federal Reserve buying bonds up to tens of billions of dollars each week to stabilize the economy.
The craziest thing is that this trend is far from over because the US monetary agency has promised to buy unlimited bonds to prevent the collapse of corporations.
Truly Incredible maybe even once in a lifetime.
Investment grade corporate bond index back to near ALL TIME highs. Fed buying junk bonds too. Risk of bankruptcies reduced even with 20m unemployed. Unprecedented “Unlimited” liquidity could not be more bullish for gold and btc. pic.twitter.com/F5X6A2rf2r
- Dan Tapiero (@DTAPCAP) April 10, 2020
“Truly surprising, even once in a lifetime.
The corporate-level corporate bond index returned near an all-time high. Fed buys junk bonds. The risk of bankruptcy decreases even when 20 million people are unemployed. Unprecedented "unlimited liquidity" is the most bullish sign for both gold and BTC. "
Tapiero asserted that "is the most bullish sign for both gold and BTC", probably based on the fact that the government's monetary decisions fuel inflation to rise rapidly.
Bitcoin will return to ATH 20K dollars?
Indeed, many industry investors and executives agree that the actions of the Federal Reserve and the government to inject liquidity into the economy will only boost Bitcoin.
Follow news In April of Crypto Trader Digest, BitMEX CEO Arthur Hayes wrote that while Bitcoin is likely to retest $ 3,000 again if the global market plummets, his year-end price target is "still $ 20,000".
Regarding why he thinks so, he cites the monetary and financial solutions that the government and central bank are using to prevent recession:
“Everyone knows the change is ours, which is why central banks and politicians will throw all their tools into this issue. And I repeat, that causes inflation because more money will reduce the supply of goods and labor. There are only two things to own in the system transition process, which is gold and Bitcoin. ”
This view is very similar to Dan Morehead of Dan Pantera.
According to Morehead, increasing the amount of paper money due to simple supply-demand dynamics will make "things with a fixed amount unaffected by the increase in the amount of money". Morehead also stated that Bitcoin will soon trade at $ 20,000 or more.
You can see the price of BTC here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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