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Forget price volatility, Bitcoin’s credentials as a global currency rising

A waning dollar, crypto financial adoption, and the internet, yes your World Wide Web, all point to BTC going mainstream

The internet wants a currency, and Bitcoin is the best manifestation of that thus far JPMorgan Chase extended banking services to two of the biggest cryptocurrency exchanges in the US, Coinbase and Gemini Bitcoin has shown the highest increment against the Argentinian Peso and Brazilian Real, 103.5% and 128.4% respectively

Bitcoin (BTC) this year had an up and down journey yet recorded an all-time high of $12,400. The analysts are also saying that Bitcoin has performed better than any other commodity this year and its value is more than any other currency globally.

BTC traded 1.3% lower at $10,226.85 last Friday, Sept 11.

A waning dollar, crypto financial adoption, and the internet, yes your World Wide Web, all point to BTC going mainstream.

Let’s start with the latter.

The internet in need of a currency

Twitter CEO Jack Dorsey told Reuters recently that Bitcoin remains the most viable currency for the internet.

“The internet wants a currency,” he said, “and Bitcoin is the best manifestation of that thus far.”

Drawing parallels, he added: “The internet is something that is consensus-driven and is built by everyone, and anyone can…change the course of it. Bitcoin has the same patterns, it was built on the internet.”

The entrepreneur did call on the top crypto to be “cost- and time- effective”.   

In a 2018 interview with The Times, Dorsey said BTC had the potential to become the world’s sole currency by 2030.

Knox founder Thibaud Marechal, an industry insider, said in an opinion piece to Bitcoin Magazine that an internet-driven economy held together by BTC is on its way, with a “BTC-based economic system” to surface “in the next 20 to 30 years with almost no doubt.”  

“Bitcoin is growing into the internet’s native monetary layer. Functioning as a suite of public network protocols, referred to as LNP/BP, they could become as integral to the new internet economy as the Transmission Control Protocol/Internet Protocol (TCP/IP) dynamic has become the cornerstone of the internet itself for to communicate with servers.”

He opined this would put BTC at the forefront of a new economic revolution that would eventually leave the traditional banking sector in the shade.

BTC’s mainstream adoption despite hesitant banks 

The cryptocurrency market is currently valued at more than $200 billion.

Bitcoin Suisse, a pioneer in crypto-financial services to private and institutional clients since 2013, now boasts more than 140 employees and offices in Zug, Copenhagen, and Liechtenstein. In 2019, it reported net revenues of nearly $23 million.  

Joe Ciccolo is the founder and president of BitAML, an international compliance advisory firm exclusively serving the bitcoin and cryptocurrency market.

“A lot of banks haven’t taken the time to learn about crypto,” he says. “They have been dismissive.”  

Cryptocurrency firms are not the only ones reportedly struggling to set up bank accounts and other banking services. Mark Hipperson, CEO and founder of UK-based Ziglu, a digital platform that allows customers to hold crypto and fiat currencies in a single account, says only a few business-to-business banks in the US are receptive to fintech startups. 

Silvergate, based in La Jolla, California, started servicing cryptocurrency firms in 2013. As of June 30, the company reported 881 digital currency customers. Fee income from digital currency customers for the quarter ended June 30 was $2.4 million, compared to $1.7 million for the first quarter of 2020 and $1.1 million for the second quarter of 2019.

An indication that traditional transaction banks could be changing their tune toward cryptocurrency came in May when The Wall Street Journal reported that JPMorgan Chase had extended banking services to two of the biggest cryptocurrency exchanges in the US, Coinbase and Gemini. 

The US Office of the Comptroller of the Currency also announced in July that all nationally chartered banks were permitted to provide custody services for cryptocurrencies.

The Wall Street Organization, Inc, a recognized international banking investment banking company providing capital formation mechanisms to operating companies, recently announced it will establish a foothold on the rapidly accepted bitcoin and cryptocurrency marketplace

The Wall Street Organization’s Dr. Farid Alshabbar, Director of Middle East Operations stated, “We’ve decided to call our cryptocurrency ‘Wall Street Bitcoin’ and feel that this investment has substantial merit.”

Whether mainstream banks get on board or not, bitcoin’s price, stablecoins (pegged to fiat currencies), and central bank-issued digital currencies (CBDCs) are attracting interest.   

BTC appreciates against global currencies 

Bitcoin has shown the highest increment against the Argentinian Peso and Brazilian Real. It is 103.5% and 128.4% respectively. Bitcoin also performed better against the reserve currencies of the U.S. and the U.K. The gain is 56% and 69% against the reserve currencies respectively.

Bitcoin is also being termed as a potential hedge against inflation. 

US Dollar flounders

Renowned investor Jim Rogers believes that the US dollar dominance is coming to an end as the tensions between the US and China mount. The growing national debt, the protests, the political uncertainty surrounding the presidential election, and countries seeking a USD alternative in fear of sanctions will take a toll on the dollar, he explained.

Rogers explained that “the US is now the largest debtor nation in the history of the world, and it’s getting higher and higher every day,” emphasizing that it will take a toll on the dollar. The U.S. national debt is currently more than $26.73 trillion.