top of page

Exec’s Agree Blockchain Adoption is Essential

GB Market Commentary 24/08/2021

by Will Morris

Bitcoin is currently trading at around $49,700, after testing the Fibonacci Golden pocket multiple times yesterday, before being rejected. Many analysts predict a major pump in Bitcoin price, if the $51,500 level is broken, however, it has only provided strong resistance so far. The next level of support can be found at $48,000. Trading volume continues to be low, for Bitcoin, on both the sell side and buy side. Most altcoins have also stalled after meteoric rises for some last week, most being in the red. Ethereum continues to move sideways, as it struggles to break through strong resistance around the $3,360 level, which it has repeatedly tested over the past fortnight.

Ethereum / U.S. Dollar - 24th Aug

Deloitte’s 2021 Global Blockchain Survey paints a very optimistic picture for blockchain technology and where the digital asset space in heading, from the perspective of almost 1300 executives. The survey found 73% of executives think their “organization will lose an opportunity for competitive advantage if they fail to adopt blockchain and digital assets.” The report also states that “blockchain is driving change in the holistic financial ecosystem, from deposit taking, to payments, lending, investing, and trading anything of value.” There was consensus among the executives surveyed that digital assets will replace fiat currency within the next 5-10 years, over 3/4s surveyed believed this. While 43% believed there was a need for digital assets in the context of payments. Deloitte calculated that in 2020 there were about $2 trillion in global payment revenue associated with cross-border money movement – transferring currency without adding value or taking risk. With the use of digital assets companies are increasingly able to conduct these transactions almost instantly and for a minimal cost. In addition, 70% of respondents saw regulatory barriers being among the biggest obstacles to acceptance of digital assets, strengthening the case for the need for clearly defined regulation for mainstream adoption to be enabled.

Circle has announced that USDC is set to be backed 100% by cash and short-term US treasuries by September. Circle previously announced its intention to become a full-reserve national digital currency bank in the US. Jeremy Allaire said: “We believe full-reserve banking, built on digital currency technology, can lead to not just a radically more efficient, but also safer, more resilient financial system.” Christopher Waller, Federal Reserve Governor, supports the creation of a private sector digital currency as opposed to a central bank digital currency.

Bitcoin adoption has rocketed in over the past year in Afghanistan due to the economic turmoil caused by the Taliban takeover of the country. Afghanistan has been hit with a mix of bank closures, cash shortages and suspension of international money transfers. While the US has frozen roughly $9 billion in central bank reserves. Cryptocurrencies are providing a means for Afghan citizens to store their savings as well as send /receive international payments, providing a vital lifeline for many.

Visa has added Crypto Punk 7610 to its collection of historic commerce artifacts, paying 49.5 ETH (around $150,000). Visa noted that both crypto and NFTs were likely to shape sports, entertainment and other communities moving forward. With “NFTs representing a deeper and more innovative way for fans to engage and potential new revenue streams for organizations.” 10,000 CryptoPunk’s were created by Larva Labs in 2017, each one is 24 by 24 pixels. Crypto Punk 7523 sold for $11.75 million in a Sotheby’s auction in June this year. Here is an extract from the Catalogue note: “There is no greater visual symbol for the crypto age than an Alien Cryptopunk. They are synonymous with each other, reflecting not just the philosophies of pseudonymity, community and tradability that the blockchain ecosystem so highly prizes, but also the elegant simplicity of the system.”

Crypto Punk 7610 Crypto Punk 7523

Crypto Punk 7610 NFT
Crypto Punk 7523 NFT

bottom of page