Today I’m going to talk about Michael Saylor’s Macrostrategy and their new loan for Bitcoin. Also there are some developments on the Ukraine/Russia war front. Lastly crypto news.
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The cryptocurrency industry is wildly diverse, but not in a demographic sense. In fact, the majority of crypto owners are high-income, white males. The cryptocurrencies are also overrepresented by libertarians. Despite the diverse makeup of the community, there are similarities. For example, right-wing Bitcoin maximalists believe that crypto will liberate them from government tyranny, while left-wing Ethereum aficionados aim to overthrow big banks. In contrast, speculators have no ideological affiliation and just look for the next profit. However, there are a few differences between the communities that should be considered.
While the general market has declined since the early November highs, crypto’s recent volatility has been particularly troubling. This is not surprising given the current economic climate, in which the Fed is expected to raise interest rates seven times this year. While these two factors may seem to work against the cryptocurrency, they actually make it attractive for those who can’t legally deal with traditional banks. While the currency’s high volatility is certainly concerning, it’s important to remember that millions of people are using the technology for a variety of different reasons.
The primary use case of a cryptocurrency is as a payment system in the online world. The technology was developed to be fast, secure, and independent of central banks. Many cryptocurrencies have similar goals, but a few have expanded to other use cases. Among these is speculation. Although many people use cryptocurrency as a payment method, there are also a variety of other purposes. As a result, there is no one best-suited cryptocurrency for everyone.
While the Ethereum market cap remains stable, many coins are experiencing a rapid rise. Litecoin, for example, has been up 18% in the past week. In the meantime, Solana’s price is up 17% in the last seven days. Solana has also broken above the $100 resistance level. It has risen over the past month, and is now trading for $0.79 per ADA. The cryptocurrency will likely consolidate after gaining recent momentum.
In the first month of 2018, bitcoin is still the most popular crypto in the world. Thousands of other cryptos have been created since its launch. They are collectively referred to as altcoins. The second most popular one is Ethereum. It uses the same blockchain as Bitcoin. Its blockchain also allows for smart contracts to run on it. Unlike Bitcoin, Ethereum has a huge influence on the crypto market. PayPal, Facebook, and Mastercard have all backed the crypto, and are allowing it to be used for payments.
Unlike the dollar, cryptocurrencies are widely used in many sectors of the economy. For instance, Storj tokens allow file sharing on a decentralized network. Namecoin provides a decentralized DNS service for internet addresses. Though they all share the same functions, traders may not be able to distinguish between them. It may be hard to separate utility tokens from other cryptocurrencies. But in the end, all types of cryptocurrencies are traded the same way on crypto exchanges.
