Of course, all of this will need to be regulated and cryptocurrency eventually operated in a compliant framework with much more adoption, crypto and I have already covered how this is gathering pace and we, India, are getting left behind in my earlier article.
The results showed that "while the overall crypto
market was quite bearish, managers remained extremely bullish on BTC", with 42 per cent predicting Bitcoin to be between $75-100,000 (£62,000-£83,000) by the end of 2022, and a further 35 per cent predicting a price over $50,000 (£41,000).
Gold has been widely accepted as a store of value and it proved itself during and after the 2008 financial crisis when it went up by over 200 percent while most equity, fixed income, currency, commodity and real estate markets simultaneously collapsed. While we have seen adoption and velocity of bitcoin and other cryptocurrencies steadily increasing (from a small base), the asset has also found itself being regarded as a potential long term store of value. A store of value implies an asset that at least retains its value (and therefore your investment) especially in recessionary markets.
His research has been published in journals such as Computers in Human Behavior, International Journal of Information Management and BNB Behaviour & Information Technology. Matti Mäntymäki is an Assistant Professor of Information Systems Science (tenure track) at the University of Turku, and an Adjunct Professor of Information Systems at the University of Oulu. He holds a PhD (DSc in Economics) degree from the University of Turku, Finland.
Marja Turunen is a post-doctoral researcher Information Systems Science at the University of Turku. She holds a PhD (DSc in Technology) from Aalto University, an MBA in Strategy, from Aalto University and University of Washington, and an MA in Psychology. Her research has been published in journals, books and conference proceedings of Academy of Management, Strategic Management Society, European Group of Organizational Studies, Information Federation of Information Sciences among others.
So, BTG ticks some boxes when compared to fiat money, but it is digital and not physically exchangeable. Bitcoin Gold offers many people around the world an equitable platform with its blockchain and serves as a payment enabler and a means to transfer value.
For example, if I buy wine from Chile, I effectively instruct my Indian bank to pay the retailer's Chilean bank. Imagine if you could make this transfer almost instantly and by paying no fees to banks and other intermediaries, effectively disintermediating them and the associated central banks? That was the perceived original vision for bitcoin. The original premise of bitcoin was to become a peer-to-peer electronic cash that could disrupt some existing fiat currencies. Bitcoin
came into existence in 2009, as a brain child of a person or group of persons under the pseudonym of Satoshi Nakamoto. This involves paying fees to both banks, correspondent banks etc., and facing an FX (foreign exchange) rate that is likely to be exorbitant, and an entire transaction that takes at least a few working days to process.
However, these often equate to mere pennies. Sidechains, just like any other Blockchain, need their own miners to help protect them from nefarious actors and attacks which people would like to leverage against the network. However, since wealth isn't actually created on the Sidechain there is far less incentive for miners to actually work on it and help protect it. Because of this, transaction fees are the basic reward that is offered to miners.
And in the process create a permanent dissilience between the two chains. Especially since SPV can theoretically be tricked into crediting more coins than were originally deposited. The two-way peg isn't perfect however. However, even this would have its own separate value and wouldn't necessarily solve any issue especially if a market is deemed to be, well, worthless. If the attack will then transfer those coins back onto the parent it would take coins from another user on the Sidechain to fund the imbalance. In order to strengthen the security of a Sidechain beyond just SPV, it would require the parent to soft fork and upgrade its core wallet software so that both chains can then validate transfers between them.
As a virtual currency, it's not subject to bank issuance or restricted by the monetary policies of the Federal Reserve or Central Bank. The control of the blockchain is vested in the community members and the Board.
Bottom line: If you were not investing in bitcoin because you don't think it will ever replace existing fiat currencies, then please be aware that the alternate utility of a store of value could yet result in bitcoin's price increasing at a faster pace than most (all?) traditional assets.
We wish them all the best. And as always, be sure to subscribe and I will see you next time. Him and the rest of the team over at Rootstock are doing fantastic work with cryptocurrency and Sidechains. A big thanks to Diego Salvador for helping me write this episode. I'll be sure to leave a link to their website in the top of the description so you can go check it out and learn more if you wish.