Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
McGlone, who is a commodities expert, argues that cryptocurrencies are ‘coming out ahead’ in the ebbing tide of inflation a general increase in prices and fall in the purchasing value of money. and a low stock market.
Many of those who recently entered the crypto market and somehow see cryptocurrencies stagnating in a certain price range may be disappointed. However, for experts there is nothing to worry about.
Senior Commodity Strategist at Bloomberg, Mike McGlone, commented on current trends in finance and digital assets in an interview with Cassandra Leah of The Daily Dive which you can see here:
McGlone, who is a firm believer in the “divergent strength” of cryptocurrencies, illustrated their strength in the context of the current developing financial situation. He said:
“The fundamental thing about cryptocurrencies this year is that they are part of an ebbing tide of the lower stock market an area or arena, online or offline, in which commercial dealings are conducted. and the Federal Reserve fighting inflation, just like almost every central bank in Western countries (…), and yet they are coming out ahead.”
He explained that, in the year, Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. almost unchanged in price, while the Nasdaq was down eight percent. . After this he said:
“Bitcoin trades at three times the volatility a statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index. of the Nasdaq”.
He also reiterated his position that cryptocurrencies show divergent strength and should continue to gain. He added that:
“The biggest overall risk is that the tide goes out a little further, the Nasdaq and S&P 500 hit new lows in the vicinity, which is likely, and Bitcoin follows that, but comes out on top.”
In early March, McGlone noticed that Bitcoin in particular showed divergent strength, especially in comparison to the stock market. It also suggested that it might be maturing into a “global digital digital technologies are these electronic tools that have the ability to generate, store or even process data. collateral collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. asset”, given that its losses in 2020 were less than half of those of the Nasdaq 100 (que es un índice bursátil de Estados Unidos que recoge a los 100 valores de las compañías más importantes del sector de la industria de la tecnología).
McGlone’s comments were part of a response to a question posed to her byThe Daily Dive on the effect of events such as the recent hack of Axie Infinity (AXS) on the willingness of investors to participate in the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market.
According to him, some pushback is to be expected “of investors who are just starting to dip a dip is when markets experience a short or protracted downturn. their toes in the water.”
However, “it wasn’t one of the biggest: Bitcoin, Ethereum a decentralized open-source blockchain with smart contracts functionality. or any of the crypto dollars (stablecoins) that are really more important” . In his words, it is one of the things to be addressed to further strengthen the market.
McGlone has been speaking on the topic of investing in cryptocurrencies, relative to other types of investing. In February of this year he said that it was a good time to buy Bitcoin. At that time he stated:
“Creo que, en última instancia, sería una muy buena oportunidad de compra de Bitcoin for long-term traders. [This moment will be remembered in history as a turning point.
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