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Highlights
- Bitcoin’s share in the aggregate market cap of all crypto assets has declined with time
- Bitcoin bond and Bividend are like two new extensions of Bitcoin after Bitcoin ETFs
- The issue of Bitcoin bond has been delayed by El Salvador
Where will the mainstreaming of cryptocurrencies end? As of now, there is no end in sight.
What started with a sole participant, BTC, is now a space with tens of thousands of assets that include native tokens, non-fungible tokens (NFTs), stablecoins and other things.
Bitcoin’s dominance, as a result of the seemingly continual adoption of new crypto assets, has now come down to as low as 40 per cent. Ether’s market cap, on the other hand, occupies nearly 20 per cent of all the cryptos tracked by CoinMarketCap.
The rest, approximate 40 per cent, includes native tokens SHIB, BNB, and thousands of others.
Bitcoin is evolving, maybe to keep its dominance intact, and this has resulted in products like Bitcoin bonds and Bividend. Let’s know more.
What is a Bitcoin bond?
Last year, El Salvador made news when it became the first-ever country to embrace Bitcoin as a legal form of money or tender. What followed this development was the country’s government announcement of the launch of Bitcoin bonds worth US$1 billion in March 2022.
But and mirroring the uncertainty of the crypto space, the issuance of Bitcoin-backed bonds has been postponed in the wake of the Ukraine war and the volatility of the crypto space.
Also read: APE and WAVES: 2 cryptos that made news in Q1 2022
Had they been launched, it is claimed, the bonds would have been collateralized by Bitcoin (BTC). The proceeds accruing from the issue were to be used to develop the “Bitcoin City”.
Bividend
Bividend is a new term that the NASDAQ-listed BTCS gave to the payable dividends in Bitcoin.
In the press release earlier this year, the company stated that a dividend of US$0.05 per share shall be payable in Bitcoin, but if any shareholder so wishes, it would be paid in cash.
It is notable that BTCS is into the blockchain tech business, which is why some experts viewed the Bividend announcement as a way to promote the business and the adoption of crypto assets.
Also read: What is Ankr protocol and its native ANKR crypto?
Data provided by CoinMarketCap.com
Viewpoint
Bitcoin bonds and Bividend are two new products, with the former’s launch delayed by El Salvador.
In 2022, Bitcoin has had a hyper-volatile run so far, and hence, caution can be the best friend. How these new extensions alter the dominance of Bitcoin in the crypto verse has yet to be seen.
Also read: RAD crypto rises: Can Radicle be ‘decentralized’ GitHub?
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