A non-custodial high-frequency trading decentralised exchange Polkadex is getting ready for its upcoming IDO on Polkastarter.
Polkadex is creating a superior decentralised exchange that will disrupt the current status quo of cryptocurrency trading both for professional and retail traders. Polkadex is the perfect blend of the best of both worlds — the convenience and speed of a centralized exchange mixed with the security of a decentralized exchange. Polkadex’s mission is to bring DeFi to the masses by creating a technological and efficient but user friendly product.
Polkadex exchange solves such issues of traditional DEXes, as high transaction fees and frontrunning. Polkadex users will benefit from feeless transactions with verifiability, opportunities for high-frequency trading, trading bots and other unique features. It is one of a kind product for the cryptocurrency industry now.
The IDO on Polkastarter also adds credibility to Polkadex, as the platform is well-known for releasing the most successful blockchain projects.
“The main purpose of this step of the Polkadex Token Generation Event is giving an opportunity for the community to participate in the governance of the Polkadex network, successfully distributing and decentralizing it,” says Polkadex CEO, Gautham J.
Polkadex launches on the market after months of building the product, has already caught the public attention and is well on the way to become a real DeFi industry game-changer.
With the tailwinds of a fresh $2.2 million fundraising at its back, Don-Key aims to become the eToro of DeFi by building a comprehensive social platform for yield farming designed to improve accessibility and magnify yield farmers’ potential.
Platform Designed To Attract Capital By Easing Entry For Newcomers
Decentralized finance (DeFi) is finally capitalizing on blockchain’s ability to displace traditional centralized finance (CeFi), but the road to adoption remains long despite its progress.
As DeFi’s popularity grows with time, it is shining a spotlight on one of the most complex yet vital ecosystem activities: yield farming. For the uninitiated, yield farming is effectively like depositing money in a certificate of deposit (CD) that earns periodic interest when locked up. However, unlike CD yields which typically only yield a few percent annually, yield farming returns (APY) can be multiple magnitudes more profitable.
Like most things blockchain, the learning curve for this Wild West of DeFi is steeper than most. Fortunately, that all is changing as Don-Key embraces eToro’s social trading model in the form of a DeFi yield farming platform.
Don-Key’s Simple But Elegant Solution: Social Farming
Like eToro disrupted investing by bringing social money management to financial markets and cryptos, Don-Key aims to do the same with its yield farming platform. By flattening the learning curve and making the concept more accessible to a broader swath of cryptocurrency users, the platform intends to help both farmers and “hodlers” capitalize on these potentially outsized returns.
Like copy-trading, users of Don-Key’s platform will be able to engage in copy-farming by sorting through yield farmers on a leaderboard that displays the top performers or based on parameters such as reputation. For users allocating crypto, costs will be lower relative to existing farming techniques thanks to investor pooling. Moreover, the farmers and liquidity providers who join the platform will enjoy tokenized rewards.
By simplifying the interface and the experience for the uninitiated, Don-Key intends to support all the platform’s stakeholders. Instead of hazarding the yield hunt and smart contract vulnerabilities along with constantly fluctuating returns, new entrants can back successful farmers. By extension, the farmers themselves can expand their access to capital to generate higher returns.
Through this incentivization and gamification model, farmers must constantly be on the hunt for opportunities. Due to the rigors of yield farming that make it very unapproachable for users with smaller amounts of capital, this model will encourage more DeFi participation and, ultimately, adoption. With fresh funds to support its ambitions, Don-Key will continue platform development in the meantime, with rollout plans yet to be announced.
About:
Don-key.finance was founded in 2020, at the beginning of the yield farming craze, with a very clear vision of bringing the simplicity of ‘copy trading’ to the complex world of DeFi Yield Farming. An initiative that came from real necessity, Don-key’s founders are DeFi enthusiasts from Israel, Cyprus, Ukraine and India with a true passion to democratize yield farming and helping crypto users around the world stay up to date with the constant evolution of the yield farming space.
12th April 2021, 7:00pm HKT – Binance, the global blockchain company behind the world’s largest digital asset exchange, today announces the launch of zero commission tradable stock tokens to broaden access across traditional capital and cryptocurrency in cooperation with CM-Equity AG, a licensed investment firm in Germany, and Swiss-based Digital Assets AG, an asset tokenization platform. Each digital token represents one share of equity stock and is fully backed by a depository portfolio of underlying securities that represents the outstanding tokens. Users will be able to trade fractional tokens.
The first stock tokens announced will be of Tesla, the largest automaker by market capitalization, and their minimum trade size is one-hundredth of a stock token, representing the same fraction of a Tesla share. Stock tokens are priced and settled in Binance USD (“BUSD”), a regulated stablecoin pegged to the U.S. dollar and issued by Paxos Trust Company.
Stock tokens enable greater financial participation by fractionalizing a highly sought-after asset class of publicly-tradable equities into more affordable units. Holders of stock tokens qualify for capital returns on the underlying equity, including potential dividends and stock splits, as they would from holding traditional shares.
Binance users who are knowledgeable about crypto’s fractional properties can now diversify into equity assets using a digital currency and platform they are familiar with. Conventional investors can access equities in smaller quantities as well as gain exposure to the fast-growing crypto market through the largest and most liquid digital asset exchange. In Q1 2021 Binance recorded growth of 260% and 346% in traded volume and users respectively, while the total market value of cryptocurrencies recently surpassed $2 trillion, indicating accelerated adoption.
“Binance serves many users around the world and we are very pleased to be able to help them participate in the equity market. Stock tokens demonstrate how we can democratize value transfer more seamlessly, reduce friction and costs to accessibility, without compromising on compliance or security. Through connecting traditional and crypto markets, we are building another technological bridge for a more inclusive financial future,”said Changpeng “CZ” Zhao, CEO of Binance.
“We are a team of people-focused entrepreneurs, capital market specialists, software engineers and financial regulatory experts. Our combined expertise is behind the launch of our stock tokens. CM-Equity AG and Digital Assets AG, as the engineers of the product, are pleased to pioneer an innovative experience on the Binance platform. This new kind of token combines different asset classes that are offered in one single marketplace for instant settlement in a compliant, scalable and sound format.” said Michael Kott, CEO of CM-Equity AG.
Binance will continue to respond to market demand in listing more stock tokens and more features. Trading of stock tokens will follow traditional exchange hours, and is not available for residents in mainland China, Turkey, and other restricted jurisdictions. Interested traders will be required to pass Know-Your-Customer and other relevant compliance measures.
Binance is the world’s leading blockchain and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. Trusted by millions worldwide, the Binance platform is dedicated to increasing the freedom of money for users, and features an unmatched portfolio of crypto products and offerings, including: trading and finance, education, data and research, social good, investment and incubation, decentralization and infrastructure solutions, and more. For more information, visit: https://www.binance.com .
CM-Equity AG is a Germany based investment firm with multiple financial service licenses. The company offers Fintechs and Digital Asset Exchanges a regulatory compliant licence roof with an API-driven scalable infrastructure framework. The firm itself is a pioneer in digital asset management & brokerage and is trusted partner of the leading companies in Digital Asset World. For more information, visit: https://cm-equity.de/en/
About Digital Assets AG Swiss based Digital Assets AG (www.digitalassets.ag) is the leading boutique firm focused on the design, structuring and the issuance of tokenized financial products. Digital Assets AG drives innovation in capital markets and builds bridges in between TradFi and DeFi with its partners such as FTX, Alameda, Bittrex and many others.
Virtue Poker, a multi-chain, Ethereum-based decentralized poker platform, has now announced it has closed on a strategic investment round of $5 million.
The company was part of Coinlist’s Seed Winter 2021 Batch and has received funding from strategic investors, including Joseph Lubin’s Consensys, DFG Group, Pantera Capital, Jez San from FunFair and other notable names. Poker legend and 10 times WSOP winner Phil Ivey, is a both a stakeholder and the public spokesperson for the company.
Virtue Poker is a P2P poker site that operates on the Ethereum blockchain, which allows players to transact in cryptocurrency instead of fiat money. Since 2015, blockchain development tank ConsenSys has served as the incubator for the project.
“I’m excited to see the Virtue Poker team realize its mission in bringing transparency and trust to the online poker industry. By working with regulators in becoming the first licensed blockchain based platform, Virtue Poker legitimizes the use of this technology in the industry long term going forward,” said Joe Lubin, founder of Consensys.
While this news itself is certainly attention-getting, it’s even more impressive when you consider the startup was part of Coinlist’s Seed Winter 2021 Batch, and in 2018, it closed a token sale that raised nearly $20 million.
Furthermore, the latest financing for the ConsenSys-incubated startup was participated by notable investors, including Pantera Capital, Consensys, DFG Group, Jez San from FunFair.
Virtue Poker also taps Poker Hall of Famer Phil Ivey as a stakeholder and ambassador for the company.
Poker legend, Phil Ivey, who works with Virtue Poker as a brand representative and professional advisor, commented: “I’ve been working with the Virtue Poker Team for over 3 years. Their innovative blockchain platform can be a major part of poker’s future. I’m excited to continue my partnership with the Virtue Poker team and work to bring the platform to poker communities worldwide”.
Virtue Poker is the only blockchain platform that is fully licensed by the Malta Gaming Authority. The iGaming watchdog has been exploring for years how crypto assets and blockchain technology might be used at licensed online betting. At present, hundreds of fiat-money betting platforms are licensed in Malta, which still hold the vast majority of the gaming market, but they have no permissions to accept cryptocurrencies due to the MGA’s regulations.
“After years of consultation, in person meetings, and effort – Virtue Poker can proudly say we are the only licensed blockchain based poker application in the market,” added CEO Ryan Gittleson.
He continues: “Blockchain technology provides modern and secure payment infrastructure that provides global accessibility to consumers, unlike our competitors. By working with regulators to become a licensed online gambling company, Virtue Poker now has legitimacy to crossover and compete for customers from legacy providers to bring blockchain based wagering mainstream.”
About Virtue Poker
Virtue Poker is an Ethereum-based decentralized poker platform that utilizes the blockchain and peer-to-peer technology to make online poker safe, honest and fun. The company was founded in 2016 within Consensys, the leading full stack Ethereum software engineering company and incubator founded by one of Ethereum’s co-founders Joseph Lubin, back in 2014. Virtue Poker is Backed by Consensys as well as stakeholder Phil Ivey. Virtue Poker is on a mission to make blockchain-based betting mainstream and transparent.
As we move into Q2, a number of projects are moving ahead with continued development, and this week’s choices are set to benefit from significant updates and announcements that should strengthen their market positions and benefit their communities. The news should also result in increased amounts of attention to each respective currency over the coming weeks.
1. Ethereum (ETH)
Ethereum is an open-source distributed blockchain that pioneered smart contract functionality. It operates as a decentralized virtual machine which can execute scripts and be used to transfer its native ether token between different nodes. Although ether can be used as a currency, it is more commonly used to execute smart contracts. The Ethereum blockchain also hosts a number of ERC20 tokens such as BNB, MKR, USDC, and TUSD.
Why Ethereum? Berlin Hard Fork Takes Place on April 14
Ethereum Core Developers have confirmed that the Berlin hard fork will take place on April 14 at block height 12,244,000. The network upgrade will be deployed on four test networks before going live on mainnet, and includes four Ethereum Improvement Proposals (EIPs). EIP-2565 addresses ModExp Gas Costs, EIP-2929 covers gas cost increases for state access opcodes, EIP-2718 deals with Typed Transaction Envelopes, while EIP-2930 is related to optional access lists. The hard fork is one of many upgrades along the way towards ETH 2.0, and you can read more about the Berlin hard fork here.
2. Filecoin (FIL)
Filecoin is a decentralized file storage network that facilitates markets for storing and accessing data. Filecoin miners earn FIL coins in exchange for storing files reliably. Filecoin users can select between different miners depending on their specific storage needs – for example, a user might want to pay a higher price for more reliable storage. Filecoin is built on top of the IPFS (InterPlanetary File System) protocol for distributed data storage and sharing.
Filecoin is another platform undergoing a network upgrade this week, and the Filecoin network will commence an upgrade at epoch 665280 which is estimated to occur or approximately on April 12 at 22:00 UTC. The FIL network will actually go through a hard fork in order to upgrade however, no new tokens will be created, although FIL holders are advised to refrain from making transfers in the hours leading up to the upgrade. Major exchanges such as Binance have already announced their support for the hard fork and will take care of any technical requirements involved for FIL holders. The upgrade incorporates a mandatory release of Lotus that upgrades the network to version 11, and implements FIP-0014, and you can find out more about the network upgrade and hard fork here.
3. Origin Protocol (OGN)
Origin is a platform for building decentralized marketplaces on the blockchain. The platform facilitates the creation of decentralized e-commerce stores, and artist based sales of digital products such as NFTs.
Why Origin Protocol? Lupe Fiasco’s NFT Airdrop on April 12
The team behind Origin Protocol have announced the launch of Lupe Fiasco’s NFT drop on their NFT Launchpad on April 12. Lupe Fiasco is a Grammy award-winning multi-platinum musical artist, and will launch five open edition NFTs. Each NFT will provide admission to a live performance of Lupe Fiasco’s Food & Liquor concert, hosted on Futurestream.tv, and will also include access to a live meet and greet for concert attendees. Holders of the five NFTs will also have access to limited edition merchandise and premium digital content. The airdrop will go live on nft.lupefiasco.com, and you can find out more about the NFT drop on Origin here.
Bitcoin and ETH both are at dominating the market in the term of the price increase. Bitcoin has been the favorite virtual currency of all time and ETH comes next to bitcoin. Although there are several factors that differentiate bitcoin from ETH, one thing is common between these two virtual currencies and that is the pace at which prices are increasing. At the start of 2021, bitcoin price rose by more than 40% and ETH more than 20%.
Most of the inventors are looking forward to knowing the right time to sell bitcoin. Bitcoin has surged more than the expectations in 2021 due to increased investment by governments and global companies.
Whereas the case in Ethereum is almost the same, ETH managed to achieve $ 1.1 K in 2021, ETH reached $ 1.4 K in past, and this was an all-time high. ETH is also at its best position after a long time. Experts conclude that it would be more beneficial to hold back these two cryptocurrencies because the chance for these currencies to escalate further is possibly high.
Differences between Bitcoin and Ethereum that many few people know
Bitcoin is a cryptocurrency that does not have a physical presence and Ethereum is just not only a virtual currency, it is a platform on which Ether is based. Ether is what we call a cryptocurrency and Ethereum is the platform that supports Ether. Same as bitcoin is a cryptocurrency and blockchain is a technology that backs bitcoin.
There is a difference in way of transactions. Bitcoin transactions are in monetary terms, whereas Ethereum transactions are based on executable codes. Bitcoin transactions take more time to process, as compared to Ethereum.
Bitcoin is considered as a “store of value” and medium of exchange and ETH is something different. Ethereum was not initially launched as a competitor to bitcoin, rather it was invented as a compliment to bitcoin.
Potential growth in bitcoin and ETH
Cryptocurrency has a bright future ahead, as the number of investors in the virtual currency market has risen over time. Bitcoin is absolutely an amazing investment opportunity and its growth is more likely to move upwards. The bitcoin market has been fueled by a huge chunk of investments by global companies. There multiple AI-equipped platforms like british bitcoin profit that encourage more people to invest in bitcoin.
ETH is not far behind the competition and the growth potential in ETH is understood by those who understand the Ethereum platform benefits and future. Ethereum is already a step ahead in the transaction process from bitcoin and in near future, the Etheurem network would be upgraded which bring a change in the transaction process. If the supply level reduced, there are chances that the price would escalate.
Conclusion
The cryptocurrency market is going to replace the traditional medium of exchange. Within a decade the dominance of virtual currencies would play a major role in monetary policy. The price level is most likely to rise as per most of the crypto market experts.
There are several other companies that would be announcing the investment in bitcoin in upcoming years. Out of 21 million, almost 18 million bitcoin has been mined yet, so there is still much left in bitcoin.
Ethereum network has more potential as compared to bitcoin, Ethereum network would be a game-changer in solving corporate problems, but as virtual currency, ETH might never surpass bitcoin.
Previously, the forex and stock market were the only two financial markets that dominated digital trading. Investors have been investing millions of dollars in stocks, expecting high returns. Recently, the stock market had many setbacks in the last two years, and many investors failed to gain expected returns. Due to the COVID-19, the stock market was adversely affected, and so was the forex market, but what kept surging in such a period of crisis was the virtual currency market.
The virtual currency market is the new trendsetter in the world of digital trading. Cryptocurrencies are the product of blockchain technology, spread over different networks and record transaction in a public ledger which remains secure.
For a crypto trader, it would be highly beneficial to consider even minor aspects regarding virtual currency in order to stay updated. This article would help you with some interesting facts about digital cryptocurrency.
Exceptionally volatile nature
If you have been following the digital currency market, you would agree to the fact that the crypto market is highly volatile in its nature. There are three reasons behind it, first, the news cycle that encourages traders to enter the market, secondly, the embracement of virtual currency by the institutional investors has also contributed towards the high volatility. Last but not least, the emergence of financial instruments like futures contracts or options.
Bitcoin and altcoins
There are hundreds of other electronic currencies in the crypto market, that are available on different exchanges for trade, but among these bitcoin is the most prominent and dominant virtual currency in the term of market capitalization and market share.
Bitcoin was the first cryptocurrency that shook the world of digital assets, no other cryptocurrency has ever been more volatile than bitcoin, even the institutional investors are more interested in bitcoin as compared to altcoins.
Blockchain is the key player in the crypto world
Blockchain technology is behind the success of bitcoin and other digital currencies. The hype that virtual currencies have gained over the last couple of years would not have been possible if the blockchain does not exist.
Many investors and corporate companies are interested in blockchain technology. The cryptocurrency is just one product on the blockchain, there are multiple other ways through which blockchain could bring change in the world.
The specialty of blockchain is the way it records payments and transfer transaction in a decentralized public ledger in a secure way. Blockchain makes it difficult for criminals to attack and steal all the pieces of information. Instead, the information is spread all over the world in servers and hard drives. There is no central headquarter, where all data is stored.
Low barriers to entry
There is some sort of barriers or constraints that makes it difficult for everyone to jump into the market, for example, taxes or high-tech machinery. The case in cryptocurrency is different, anyone who has the investment and people who know how to do the coding can introduce digital tokens in the market.This is one of the reasons why the number of cryptocurrencies is increasing every month, right now more than 4000 cryptocurrencies in the market and many are on their way to launch. Among the currencies that are going to have an impact on the market is “e-yuan”. If you wanna know more about it search “Yuan Pay App” and get real insight.
The first three months of 2021 reported massive surges in the price of Bitcoin, which has successfully become the talk of the town, registering an all-time record high of over $60,000 in early March. While its value plunged, it seems to be gaining momentum again. However, every time the price of Bitcoin or any other cryptocurrency for matter surges, investors and critics are often quick to draw parallels to the infamous 2017 bull run.
The year 2017 was perhaps the first time Bitcoin was able to garner significant traction and hence, it was an exciting time for the cryptocurrency which was mostly a crypto-native and retail-driven market. Unfortunately, it ended with many investors suffering huge losses. But unlike bitcoin’s rally in 2017, which saw the price of the digital asset rise exponentially and then plummet, crypto experts claim that this time Bitcoin’s run higher will last.
This rise in 2017 helped bring the much-needed and deserved attention and headlines to the crypto space. Even though this proved to be quite beneficial for the digital asset, in the long run, most of what that market represented was a much less mature market than we see today.
Today, insurance firms, asset managers, hedge funds, and many corporate balance sheets are making huge bets on Bitcoin. These include Tesla, BlackRock, MicroStrategy, etc. Fintech behemoths such as Square, MasterCard, and PayPal have also jumped aboard the crypto bandwagon.
Data from Glassnode shows that’s about 95% of Bitcoin’s market capitalization is kept in wallets that hold at least one Bitcoin. This indicates that the vast majority of Bitcoin holders today are mostly wealthier investors rather than the smaller scale retail investors.
This kind of mainstream adoption by large companies and funds is highly important because cryptocurrencies like Bitcoin aren’t backed by an asset nor do they have the full faith and backing of a central government. Instead, they’re valuable because people believe they’re valuable which is what essentially drives the price upwards. Hence, some of the major Wall Street players buying in has significantly helped restore the lost faith and inspire the confidence of many investors in the cryptocurrency. Such a level of institutional backing only seemed like a dream in 2017.
However, the sudden institutional interest in Bitcoin and its untapped potential isn’t the only difference this time around. The Covid-19 pandemic wreaked havoc on the world’s economy, forcing asset prices and currency values to dip. With economic turmoil and the high devaluation rates of almost everything in the world, Bitcoin was perhaps the only asset following an upward trend instead of plunging like its fellow assets.
In 2017 there were no such circumstances that threatened the world’s economy to this extent. Hence, the stronger and bigger surge in value this year has also been supported by the fact that investors have come to recognize that Bitcoin is actually even more scarce than gold or any other precious metals for that matter.
A cap of just 21 million bitcoins has been built into the source code which means there can only be a limited amount of bitcoins that can ever be mined. Currently, 18.6 million of these are already in circulation. This leaves behind a small number of Bitcoins to be mined. This scarcity helps the digital asset retain its value regardless of the economic conditions, making Bitcoin an effective hedge against inflation.
The approval of President Joe Biden’s stimulus package of $1.9 trillion has also further sparked fears of the economy overheating resulting in devaluation of the dollar and higher inflation. Hence, more and more investors are now turning towards Bitcoin as an inflation hedge.
Also, bitcoin backers have pointed out that the virtual currency will likely remain popular with investors who view it as a store of value during times of inflation, much like gold. This has further fueled the Bitcoin frenzy. There have even been talks about Bitcoin potentially replacing gold, with many supporters calling the cryptocurrency “digital gold“.
Furthermore, this time around, there are a lot more exchanges, trading platforms, and tools to facilitate bitcoin investors and traders. Trading platforms, such as Bitcoin Mastery, especially have completely changed the game for novice crypto traders. They have emerged as a safe haven for beginners and help to somewhat level the playing field by offering options such as auto-trading. They make use of advanced technologies and algorithms to capitalize on short-term crypto booms, ensuring lucrative trading experiences for their uses. You can check out bitcoin mastery to learn how one such platform works.
In short, 2021 so far has seen greater institutional interest, better opportunities for trading and has taken some major steps toward mainstream acceptance. The future for this cryptocurrency is still uncertain but one thing is for sure: it has come a long way since 2017 and is only getting started.
The world of cryptocurrency, especially Bitcoin, is brimming with an aura of surprise and ambiguity. Hence, when the news of Tesla buying USD 1.5 Billion worth of Bitcoin came out, it virtually shook the tech-universe prominently. Due to such a massive announcement, the market of this particular cryptocurrency rose above the mark of USD 47,000 overnight in the USA. Conversely, in Asia, the growth rate was almost around 6.3% as a whole. The organization had also offered a notification that it will accept Bitcoin as a payment method as well.
But, why does it matter? In essence, Tesla is the first automaker in the world, which will recognize BTC to be a potential currency. It, sequentially, will prompt the credibility of the same to grow even more, especially among the non-tech populace. Due to this reason, the value of Bitcoin will grow even more aggressively than before. And, it will help those individuals to earn a huge amount of revenue who have been saving their BTC since the beginning. So, let’s unearth this context a bit more to improve our know-how in this aspect.
What Had Exactly Happened?
Tesla, the brainchild of the tech-genius, Elon Musk, had announced an investment worth of USD 1.5 billion on Bitcoin. It was done during a regulatory filing alongside the SEC (US Securities and Exchange Commission) to complete the annual revenue report.
In the filing-based report, Tesla had stated that its official board had announced an updated version of the January investment policy. According to them, it will proffer more flexibility to diversify their revenue-earning platform without jeopardizing the operating liquidity.
Subsequently, Tesla had also announced that it had made an investment in the market of Bitcoin in January. The organization intends to utilize the same further by obtaining digital assets from the same for either a long-term or short-term period.
Moreover, the company also proclaimed that it expects to accept the cryptocurrency as a method of payment in the near future. However, it did not specify how the whole transaction procedure will be operated. Furthermore, the date of initiating the payment module has been kept unknown as well.
Why Was Bitcoin Chosen?
Unlike 2009, the utter reign of Bitcoin in the world of cryptocurrency has been restricted by the other available options. Due to this reason, the popularity of the same has decreased by a small amount in recent years as well. So, why did Tesla choose BTC instead of something, which is much younger and less volatile?
The main reason behind this is the existing popularity of the Bitcoin market. To be precise, Bitcoin has been the only cryptocurrency in the market, which has managed to survive more than a decade since its inception and has been the most popular crypto on the Immediate Edge app and various other platforms. Additionally, during the emergence of COVID-19 pandemic, the module has grown massively in terms of value as well.
Hence, it can be expected that the development of the same will not be subdued in the impending future as well. However, this is not the only factor, which prompted Elon Musk to go for BTC. There is a lot more to it. Let’s learn more about this aspect.
Variegation: Since its inception, Tesla has been quite popular in the tech-world due to offering a sublime amalgamation of innovation and novelty. Hence, they do earn a decent amount of revenue throughout the year as well. Due to this reason, the organization wants to invest the excessive quantity of capital in Bitcoin. It can help them to diversify their earnings and aid them in acquiring even more cash while limiting the risk of losing anything. However, considering the volatility of the Bitcoin market, such a huge investment could prove to be a dicey business for Tesla. Thus, they will need to variegate their assets properly to get the most out of it.
Managing the Brand: Elon Musk has always supported Bitcoin since its inception in the market. However, he did not endorse the same only due to its uniqueness or potential to become better. He admired its image of a well-constructed decentralized asset even more. In all honesty, it fits with the persona of the Tesla brand, which also deals with innovation and invention. Owing to this reason, it will become easier for Elon Musk to maintain the image of his company while stabling his over revenue-earning practices.
Since the unearthing of the news, many people have also considered it to be a publicity stunt from Elon Musk. However, that does not seem to be the case here. The prime motive of Musk here was to diversify his monetary base and work through the pedestal properly. And, as of now, it seems to be working pretty decently.
How Will It Affect the World of BTC?
As mentioned before, the price of BTC had already begun to rise right after the announcement was made by Tesla. Owing to the brand image of the same, more people will start investing in the same market, which, sequentially, help it in growing even more. Furthermore, the move might also prompt other prominent organizations throughout the world to do the same as well.
Hence, the demand and supply of the market will increase even more. Additionally, the proclamation of Tesla using Bitcoin as a mean of payment can turn the world of currency upside down too. If this strategy becomes successful, then the regular payment method, which is used throughout the world, can change as well.
Conclusion:
The brand image of Tesla has been quite prominent since its inception, especially due to its affiliation with Elon Musk. Hence, their sudden move in the market of cryptocurrency, especially Bitcoin, will raise a few eyebrows as well. Moreover, the rate of the same will be increasing from now on pretty continually as well. Thus, if you are considering investing in the market, then it will be the best time for you to do it. However, if you are a newbie in this aspect, then it will be better for you to put in a small amount of capital into it. Otherwise, you might become prey to the volatility of the market.
