Bitcoin surged to a fresh record high of more than $63,000 on Tuesday, as investors awaited the highly-anticipated stock market debut of cryptocurrency exchange Coinbase.
The price of bitcoin climbed 5% in the last 24 hours to hit $63,171, according to data from Coin Metrics, before easing slightly to around $62,653. Ether, the second-most valuable digital coin after bitcoin, also set a fresh record, climbing to $2,222.
Coinbase is set to go public on Wednesday through a direct listing that could value the company at as much as $100 billion — more than major trading venue operators like Intercontinental Exchange, owner of the New York Stock Exchange. Crypto investors are hailing the company’s stock market debut as a major milestone for the industry after years of skepticism from Wall Street and regulators.
“This is really good and really important for the industry,” Marcus Swanepoel, CEO and co-founder of London-based cryptocurrency platform Luno, told CNBC. “It’s going to increase the trust and transparency in our industry.”
“There’s still a bit of distrust in the industry and I think having a company of that size be public is going to help a lot of people realize that this is not just an asset class to take seriously but also a business to take seriously.”
Coinbase, founded in 2012, is the largest cryptocurrency exchange in the United States. It’s seen surging revenues this year thanks to a climb in the value of bitcoin and other cryptocurrencies. The company reported estimated revenues of $1.8 billion in the first quarter of 2021, a nine-fold increase from the same period a year earlier, while profits grew to between $730 million and $800 million.
Bitcoin has more than doubled in price since the start of this year, as mainstream investors jumped into cryptocurrencies. Tesla recently made a $1.5 billion bet on bitcoin and now accepts the digital currency as a method of payment for its cars. Meanwhile, Wall Street giants like Goldman Sachs and Morgan Stanley are looking to offer their wealthy clients some exposure to bitcoin.
Bitcoin bulls view the cryptocurrency as a store of value akin to gold that can be used to diversify investment portfolios in times of economic crisis. But skeptical economists like Joseph Stiglitz and Nouriel Roubini are unconvinced, viewing bitcoin as extremely volatile and a vehicle for illegal transactions.
Fintech CEO: George Residence Bitcoin Acceptance Has Policy Implications, More than Simple Brand Awareness
Last month, luxury hospitality icon, George Residence, announced that it would be the first hotel in Nigeria to accept Bitcoin. Most reviews of this announcement came using the lens of brand awareness, both for the property, as well as cryptocurrency. But, Richard Gardner, today, offered a different take on what’s unfolding in Nigeria.
“When we see news like this, it’s easy to trumpet the mainstream appeal of Bitcoin, and, over the past six months, there certainly has been a huge increase in familiarity with the alternative to fiat currency. Between business icons like Mark Cuban and Elon Musk openly supporting the growth of cryptocurrencies, it is easy to read news like this as just one in a line of businesses moving to accept a form of payment that’s becoming more and more popular. But, there’s something else at play here,” 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.
In his announcement, George Residence CEO Yanju George said that, not only was he accepting Bitcoin, but that he planned to make Bitcoin the company’s primary reserve asset, noting that “[w]e have allocated around 50% of our cash reserves to Bitcoin… We hope to increase that as time goes on. Bitcoin is the currency of the future and it is only right that we are strongly positioned so we do not get left behind.”
“I think if you look at the policy behind the move, you’ve got to see this as a hedge against inflation. The Naira has had significant struggles. We’ve seen a surge in Bitcoin in 2021, but, at the end of the day, the surge means different things in different places. In the United States, folks may be looking at Bitcoin as an investment opportunity, but in places like Nigeria, Bitcoin and cryptocurrencies offer more than that. They are really a way to make sure that the assets you have today aren’t devalued over the next six months. Unchecked inflation is not just an economic problem; it’s a problem that deeply affects the citizenry when the fiat currency they rely on to purchase food and energy and life essentials is worth a fraction of what it was last year. In places with rampant inflation, Bitcoin is being considered by the populace as a potential solution to a number of institutional problems,” explained 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.
“As Nigeria looks towards the future, there is a lot of work to be done, to be sure. But, there is much to be optimistic about, as well. The fact that the citizenry is so engaged in cryptocurrencies means that, if the country can put the pieces together and get a handle on infrastructure-based issues, not the least of which is inflation, then it can begin to look at how it can invite innovation and enhance technology’s role as a tool in its economic engine. The interest is already there,” noted Gardner.
Bitcoin Miners Reap a Record $57 Million in Profits Daily
Data acquired by cryptocurrency trading simulator Crypto Parrot indicates that bitcoin miners’ revenue stood at an average of $57 million daily over the last 30 days between March 27 and April 26.
The highest amount was recorded on April 15 at $81,172 in the wake of the asset attaining a record price level. The least daily revenue was on April 17 at $45,028. On March 27, the revenue was $58,772, while on April 26, the figure stood at $47,398.
Elsewhere, compared to the 2017 bull run, the last 30 days cumulative bitcoin miners revenue of $1.7 billion was higher by 40.21%. During the December 2017 rally, the miners’ revenue that month totaled $1.23 billion.
Bitcoin mining revenue usually depends on the asset’s price, which has surged by about 90% in 2021. Notably, on April 14, the asset attained an all-time high of almost $65,000, and miners earned the highest revenue the following day.
Bitcoin mining environmental concern
With bitcoin mining returning high revenues, the report highlights some of the concerns around the activity. According to the research report:
“On the flipside, amid surging revenues for miners, bitcoin continues to be the center of attention from environmentalists questioning the asset’s sustainability. Mining is known to consume more electricity, destabilizing the environment. However, mining equipment manufacturers focus on machines that consume less energy, while bitcoin backers believe in the future, there will be a more proactive shift towards renewable sources of energy.”
However, as mining revenue surges, more miners are motivated to bring more machines online to reap from the growth.
Over $9.2 Billion Worth of Bitcoin Positions Liquidated in 24 Hours as Coin Plunges to $52,000
Over $9.2 billion worth of cryptocurrency positions have been liquidated in the last 24 hours, according to the latest data from bybt.com.
$9.2 billion of long positions were said to have been liquidated following plunged in Bitcoin value from $63,000 to $52,000 in the early hours of Sunday.
Several other short positions were said to be affected. The plunge in the world’s most dominant cryptocurrency dragged on the entire crypto market.
With Ethereum, the second most capitalised coin declining by 20 percent, Cardano by 25 percent, XRP and Doge shed 16 percent and 25 percent, respectively.
As at 9:19 am Nigerian time, Bitcoin is trading at $55,977.35 to a coin. Meaning it has gained almost $4000 in the last four hours.
Crypto investors and traders are expected to jump on the dip and use it to further boost their portfolio.
As of the time of writing, bitcoin’s price has bounced back to around $55,000.
Ethereum Market Cap Surpasses JPMorgan As It Hits A New ATH
International Breweries To Train 500 Young Entrepreneurs Through Kickstart Initiative
Chinese Smartphone Giant Xiaomi Shares Gains Over 6 Percent After U.S. Agrees to Remove it From Blacklist
News4 weeks ago
COVID-19: Nirsal Microfinance Bank (NMFB) Loan – Covid19.nmfb.com.ng
Social Media4 weeks ago
Lack of Basic Amenities, Unclear Growth Policy Force Twitter to Ghana, Builds Headquarters in Ghana
Billionaire Watch1 week ago
Ethereum Co-Founder Becomes The Youngest Crypto Billionaire As ETH Hits $3K
News4 weeks ago
Covid19.nmfb.com.ng: How to Check Nirsal COVID-19 Loan Status
Cryptocurrency4 weeks ago
Rap Icon Nas Could Net $100M When Coinbase Lists on Nasdaq
Crude Oil4 weeks ago
Oil Rises on Drawdown in U.S. Oil Stocks, OPEC Demand Outlook
Cryptocurrency3 weeks ago
Electronics Retailer Newegg now Accepts Dogecoin As Payment
News2 weeks ago
FG Declares Monday, May 3rd Public Holiday To Celebrate Workers Day