Tesla CEO Elon Musk Tweeted yesterday that “[y]ou can now buy a Tesla with Bitcoin.” This was the natural result of months of Tesla-dominance in the crypto-universe. The follow up Tweet, noted that “Tesla is using only internal & open source software & operates Bitcoin nodes directly. Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency.”
“Everybody’s talking about the first Tweet, but few are focusing on the second,” noted Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges. “It is great for public relations that Tesla is accepting Bitcoin. But, the follow-up Tweet is even better for Bitcoin’s long-term fundamentals.”
The announcement itself, as of this writing, has over 850K likes, 135K retweets, and 34K comments. The follow-up Tweet has, by comparison, only collected 169K likes, 20K retweets, and 3400 comments.
“This is an example of shiny object syndrome. Everybody’s looking for a cool headline, and it is cool that Tesla is creating consumer choice. It is. But, it’s even more significant that the company’s leadership isn’t simply accepting Bitcoin and then cashing it in for fiat currency. If you’re a true crypto-advocate, you’ve gotta love that commitment to the movement,” Gardner said.
“Our company has been following the trends since Bitcoin was in its inception. We’ve seen companies move towards acceptance before. This isn’t new. Remember Subway accepting Bitcoin a few years back? Tesla is a powerhouse name, no doubt. But, it is less than a day after the announcement, and there are already articles talking about it being difficult to conduct the sale, and so forth. If you’re only looking at this from the angle of acceptance, you’re missing why this is really an epic move,” noted Gardner.
Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Over the past twenty years, the company has built technology for the world’s most notable exchanges, with a client list which includes NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago. Last month, the company released a groundbreaking Blockchain-as-a-Service offering, an enterprise blockchain for decentralized verification and tracking, featuring cutting-edge AI-based capabilities.
“Obviously only Elon speaks for Elon, but I have to think that he’d appreciate more coverage of his intent to hold the Bitcoin rather than simply accept it. The latter is simply good business. The former is what sets him apart as a true advocate of Bitcoin as an alternative currency. That’s something you don’t see every day,” said Gardner.
Cardano’s Coming of Age – Will it Hit Bitcoin and Ethereum?
Cardano’s recent full decentralization will fuel its appeal and price, better positioning it to take on rivals Bitcoin and Ethereum in the booming cryptocurrency market, predicts the CEO of one of the world’s largest independent financial advisory and fintech organisations.
The bold prediction from deVere Group CEO and founder Nigel Green comes as Cardano (ADA) last week became a fully-fledged community-run network.
Mr Green says: “The price of Cardano has exploded over the last few months – up around 600% since the beginning of the year, recently making it the third largest cryptocurrency by market capitalisation after Bitcoin and Ethereum.
“But now Cardano has come of age by becoming fully decentralized – meaning its parent company has handed control of the blockchain over to the community – we can expect it to attract more investors which will, of course, drive its price on an upward trajectory.”
He continues: “This milestone will help Cardano better position itself to challenge major rivals in the cryptoverse.
“Cardano is likely to be a challenger to Ethereum as not only can it be used as currency, but its blockchain – the tech on which it runs – can also be used to build smart contracts, protocols and decentralised applications. Plus, it is said to be significantly more scalable than Ethereum.”
Mr Green goes on to say: “It will also pose a challenge to the all-mighty Bitcoin. This is because those who invest in digital assets already or are planning to do so, know that one of the secrets of successful investing is diversification.
“Therefore, these investors will want their cryptocurrencies diversified too and this is ultimately likely to eat into Bitcoin’s market share.”
Earlier this year Cardano (ADA) was added to deVere Crypto, the cryptocurrency exchange app, to join other major digital currencies including Bitcoin, Ethereum, Dash, Bitcoin Cash, XRP and Dogecoin.
At the time, Nigel Green noted: “The addition underscores our commitment to continually reviewing and expanding our cryptocurrency offering in order to give users of the exchange access to the opportunities and rewards of digital currencies.”
The deVere CEO concludes: “This landmark moment in Cardano’s development journey will further galvanise its position as a rising star in the crypto market.
“I wouldn’t be surprised if some celebrity investors soon publicly express their support on social media for Cardano as they have recently done with other cryptocurrencies.”
XRP Surges With Ethereum, Gains 32.14 Percent in 24 Hours
XRP, the cryptocurrency of Ripple, gained 32.14 percent in the last 24 hours despite the ongoing lawsuit.
The sixth most ranked coin rose with the surge in demand for Ethereum after ether, Ethereum blockchain’s token set a new all-time record at $2,151.25 a coin.
XRP rose by 32.14 percent to $0.886998 without specific reasons for the renewed interest in the embattled coin besides surged in Ethereum value.
“We’re not seeing anything specific to XRP and the move feels more like an altcoin season type move given outperformance in other tokens as well,” Joel Kruger, currency strategist at LMAX Digital, stated. Names like TRON and siacoin “are performing even better than XRP on this more thinly traded Easter holiday Monday.”
However, Pankaj Balani, Delta Exchange CEO said the XRP prospects look going by the inverse head and shoulder pattern.
“XRP has formed an inverse ‘head and shoulder’ pattern with head at 20 cents and shoulders at 40 cents, and neckline resistance passing through 70 cents.”
Balani, therefore, sees XRP hitting $1.00 a coin and $1.30 on a breakout above the neckline resistance.
“The pattern has formed over the six months; therefore, in case of a breakout, the bullish move is expected to be quick and sustainable,” Balani said in a WhatsApp chat, adding that volatility is likely to remain high due to the SEC lawsuit.
Bitcoin Futures Open Interest Surges by 130% in 2021, While Gold’s Drop 17%
Data calculated by Finbold indicates that bitcoin futures open interest on various exchanges has grown by 133.74% between January and March 30, 2021, from $9.66 billion to $22.58 billion. In February, the value was at $10.88 billion.
The spike in bitcoin futures open interest reflects the surge in the asset’s price, initiated mainly by the entry of institutional investors into the sector.
Institutions might be considering adding more bitcoin to portfolio
The report explains what the rising bitcoin open future means in relation to institutional investors. According to the research report:
“The growth in open interest might also indicate institutions from traditional finance are considering adding more bitcoin exposure to their portfolios. As institutional investors continue hedging using futures, the demand for leverage increases.”
Elsewhere, gold futures open interest has plunged between January and March 2021 by 17.54%, from $116.30 billion to $95.90 billion. In February, the value of gold open interest futures was $107.7 billion. During this period, the price of gold has also plunged by at least 9%.
The analysis explains why gold open interest futures have plunged. According to the research report:
“The open gold futures have plunged in the first three months of 2021, correlating with the precious metal’s price fluctuations. The decreasing open interest in gold suggests that the buying power is drying up, and thus at least a corrective downswing is to be expected.”
The growth in bitcoin open futures offers validation for cryptocurrency supporters to believe the asset will eventually replace gold as the store of value. However, despite bitcoin surging, it is still miles away from surpassing gold in terms of the value of the open interest futures.
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