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Can bitcoin, the world’s largest cryptocurrency, become a reserve currency? While many analysts are concerned over the crypto’s volatile nature, former Canadian Prime Minister Stephen Harper claims it is certainly a possibility.
While addressing the Vancouver Resource Investment Conference 2021, Mr Harper claimed that bitcoin could certainly be a component of reserve currency basket and an alternative to the US dollar, which is on the decline following the pandemic.
Meanwhile, the crypto coin continued on its volatile trajectory amid inconsistent investments and pullout in cryptocurrency. The virtual coin has been oscillating in the range of US$ 30,000 to US$ 40,000 for the last few weeks. Over the weekend, bitcoin retreated to US$ 34,800 on Friday and then bounced back to US$ 37,940 on Sunday. It is currently trading at US$ 35,907 per BTC.
Despite rollercoaster ride, the cryptocurrency token is getting more traction and recognition.
Let us look at bitcoin’s developments and the titles it holds:
Bitcoin: Currency Reserve Or Digital Gold Or Bubble?
Following the pandemic, central institutions are now more accepting of digital currencies. Few central banks have come together to launch the central bank digital currency (CBDC), generating a further buzz in the crypto market and raising hopes for its regulation.
Though CBDC would be subject to monetary regulations under the supervision of the respective country’s central bank. It would be interesting to see the way the group of central banks roll-out their digital currency.
The million-dollar question right now on investors’ mind is: Will other cryptocurrencies such as bitcoin and Ethereum will also get regulated?
Wall Street investors have already started hedging on bitcoin against a weaker dollar and rising inflation. Few of them are also calling it a better option than gold. Some mainstream investors are coined it as ‘digital gold’.
Bitcoin has yielded quadruple growth in the past one year, led by mainstream investors’ acceptance. Though the token has failed to hold its massive growth due to unstable trading as a segment of investors do not see it as a long-term investment bet.
The sentiment is chained to investors’ past experiences, when BTC took a big tumble in early 2018 and the crypto market’s regulations and rule were questioned by traders.
Image Source: Kalkine Group @2020
FinTech Industry Support To Bitcoin
Digital currency has been evolving faster during the COVID-19 pandemic crisis. Fintech companies have been allowing their user to deal in bitcoin and other cryptocurrencies on their platform. This robust support from the digital payment firms has added more weight to bitcoin’s market value.
Latest Cryptocurrency Trends:
Bitcoin continues to fluctuate on Monday, January 18, trading between US$ 34,000 to US$ 36,500. At the time of writing this update, Bitcoin was trading at US$ 36,287 per unit, with a market cap of US$ 675 billion. It is up almost 5 per cent in the last 24 hours.
One Ether token is currently valued over US$ 1,222, up nearly 25 per cent since 2020. The second-largest crypto coin is expected to touch an all-time high of US$ 1,440 this year. Its present market value stands at US$ 139.4 billion, with a 2.6 per cent surge in the last 24 hours.
