Covid-19 Economy Fuels Faith in Crypto: Trust In Bitcoin Over Banks Increased 3X Since 2017
The market research organization, The Tokenist, recently published a report called “Comparing Public Bitcoin Adoption Rates in 2020 vs 2017.” The study’s findings give a comprehensive look at the cryptocurrency ecosystem between 2017 and now. The researchers’ survey shows that since the post-Covid-19 economy is setting in, trust in bitcoin has grown 29% in the past three years.
A recently published study from the crypto think tank, The Tokenist, details that there is a growing trust in bitcoin over traditional investments like gold, stocks, and real estate. The market researchers leveraged a survey that was taken in April 2020 (5,421 participants in 24 countries) and collated several surveys from 2017 as well. The Tokenist utilized these polls to see how attitudes and perceptions have changed since the price fluctuations and the impact of Covid-19.
“Faith in large financial institutions has been steadily waning for more than a decade and the COVID-19 pandemic has only accelerated this process,” the report highlights. “Bitcoin, itself developed in the years after the 2008 market crash as an alternative to traditional assets, stands to be a major beneficiary of this trend.”
The Tokenist also leveraged surveys from the company’s mailing list and another that saw 4,852 participants in 17 countries. According to the study’s findings, The Tokenist researchers have found that there is a trend of individuals with “positive sentiment regarding BTC as a long term store of value.”
The findings note that over 45% of respondents preferred Bitcoin rather than stocks, real estate, and gold, and “61% of the total respondents (and 78% of millennials) are now somewhat familiar with BTC, and 14% of millennials have owned the asset.” The report continued:
47% of respondents trust Bitcoin over big banks, an increase of 29% in the past three years. 43% of respondents, and 59% of millennials, feel that most people will be using Bitcoin within the next decade. In 2020, 44% of millennials report that they are likely to buy BTC in the next five years. More than one in three millennials would hold onto Bitcoin they are given, while a slightly smaller number (27%) would immediately sell it. 39% of male millennials now have no problem with the intangible nature of BTC, and a quarter of millennials as a whole report the same attitude.
The report finds that the attitude toward BTC, in general, is more positive and optimism has increased by 27% during the last three years. “60% of respondents felt that Bitcoin is a positive innovation in financial technology,” The Tokenist’s report concludes. “Increased familiarity with Bitcoin has convinced many that it is a positive force,” the paper’s authors added.
What do you think about The Tokenist’s researchers’ surveys and findings? Let us know in the comments below.
2008 market crash, 2017, 2020, banks, big banks, Bitcoin, Bitcoin Asset, BTC, Coronavirus, COVID-19, Cryptocurrency, Digital Assets, financial incumbent, Millennials, Poll, report, Research, respondents, store of value, Survey, The Tokenist
Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Author: News by Jamie Redman
ROUNDUP 2: Problems with the emergency assistant after VW also at Audi and Seat
WOLFSBURG (dpa-AFX) – The problems with the electronic emergency call assistant eCall concern not only the new VW -0.32% golf, but also other car models of the group. According to information from company circles, there are the same difficulties with models of the subsidiaries Audi -1.89% and Seat. Accordingly, it concerns the Audi A3 and the Seat Leon, which are based on the same basic kit as the Golf 8. The cause of the failed function should be problems with the software. According to a report by the industry newspaper "Automobilwoche", the Skoda Octavia model is also checked for problems with eCall.
On Friday it became known that Volkswagen had to prepare -0.32% for a recall of the recently launched Golf 8. According to the company, it was determined in the course of internal investigations that unreliable data transmission to the control unit can occur in individual vehicles of the model. Therefore, the function of the emergency assistant cannot be fully guaranteed. "In exchange with the responsible authorities, we check the further procedure for the affected vehicles," said a VW spokesman for the "Automobilwoche".
A decision by the Federal Motor Transport Authority (KBA) to recall and remedy the software update is expected in the coming days. The company imposed a freeze on delivery of the new model. The golf production continued for the time being – but all new cars would be put in stock for now, it said.
The works council warned – also with a view to the massive sales crisis of the auto industry and the full stock due to the corona consequences – against further setbacks for golf production at the main plant in Wolfsburg. The current underutilization with several canceled shifts could worsen. The employee representative therefore calls for an additional mass model to be established in Wolfsburg in the medium term. The Golf is considered the most important product of the largest German industrial group.
Meanwhile, there is movement in the discussion about the planned payment of the dividend to VW shareholders. According to a report by the "Hannoversche Allgemeine Zeitung", the opposition in the state parliament demands that the state government require Volkswagen to waive the dividend payment. "It is not legitimate for corporations like VW to accept government aid such as short-time work benefits and at the same time pay dividends and bonuses," Julia Willie Hamburg, leader of the Green Group, told the newspaper. The deputy chairman of the FDP parliamentary group, Jörg Bode, demanded that the state of Lower Saxony insist on suspending the dividend as a partner.
According to the report, the group plans to distribute a total of around three billion euros to the shareholders for 2019. However, reference is made internally to the fact that the Annual General Meeting, which was originally planned for early May, has been postponed and that a new assessment is therefore not entirely out of the question. Prime Minister Stephan Weil (SPD) pointed out that the Supervisory Board would deal with the topic of dividends again as soon as the date for the shareholders' meeting was fixed. Economics Minister Bernd Althusmann (CDU) said with regard to the corona crisis that corporations like VW would be well advised to also focus on securing liquidity.
The opposition in the state parliament also criticizes Volkswagen's dividend plans because the company, along with other industry giants, is demanding purchase premiums for new cars that are to be financed with tax money. "By simply foregoing the proposed dividend for 2019, VW can finance considerable discounts and purchase bonuses if it is deemed necessary," said Green Party leader Hamburg.
The state of Lower Saxony is the second largest VW shareholder with around 20 percent. According to the previous dividend plans, Lower Saxony would get 383 million euros, as the "Hannoversche Allgemeine Zeitung" reports./jap/DP/men
Hackers ‘Using Crypto Wallet Address-switching Malware’ + More News
Crypto Briefs is your daily, bite-sized digest of cryptocurrency and blockchain-related news – investigating the stories flying under the radar of today’s crypto news.
- South Korea’s market-leading security software provider AhnLabs has warned of a new malware threat that alters crypto wallet addresses, per Money Today. AhnLabs states that the malware, once installed, interferes with the process whereby addresses are copied from wallets and exchange dashboards and interfaces. When users who are inadvertently running the malware press Control + V to paste their wallet addresses into a field, their PCs will instead enter the wallet addresses of accounts run by a ring of hackers.
- Bithumb has announced the appointment of a new CEO, per Digital Today, the exchange, one of South Korea’s biggest, has appointed Huh Baek-young, its former head of compliance, to lead the company. Huh has been at the company since 2017, and has previously worked for conventional finance firms such as Citibank and ING.
- BitMEX has been hit with a money laundering and market manipulation lawsuit. Per the details of the case, revealed in legal documentation uploaded to the web, the suit was lodged by BMA, a company that has also attempted to sue Ripple this year. BMA filed the suit at a Californian District Court over the weekend, and claims that HDR Global Trading, BitMEX’s operator, has committed wire fraud, violated racketeering laws and conducted actions designed to drive crypto prices up and down. The suit said that the “sheer magnitude of the unlawful activities” committed by Arthur Hayes, BitMEX’s Co-founder and CEO, was “truly staggering.”
- Payments company Square, co-founded and led by Twitter CEO Jack Dorsey, has unveiled a new Cash App feature that allows users to automatically buy bitcoin (BTC) on a daily, weekly, or bi-weekly basis, as Dorsey’s tweet announced. Furthermore, users can now change the display from BTC to satoshis (sats).
- Polish-British fintech Billon and Austrian Raiffeisen Bank International said they have successfully tested an end-to-end digitized national currency transfers proof-of-concept as part of the development of the initial phases of an RBI Tokenization Platform. According to the press release, the two will pilot this platform for selected use cases, like real-time tokenized money transfers, or improving the cut-off time for custody customers, the goal being to demonstrate how companies can improve their liquidity management, speed and availability of cross-country fund transfers and facilitate new business processes.
- Chainlink is set to partner with chat app operator Kakao’s Klaytn blockchain platform, and will provide its decentralized oracle solution for Klaytn dapps (decentralized apps), per a press release. The parties claim that integrating the Chainlink network will allow Klaytn’s smart contracts to “connect with resources outside the blockchain, enabling the creation of applications that are connected with real-world data and systems.”
- Co-founder of Ethereum (ETH), Vitalik Buterin, and Thibault Schrepel, an antitrust academic and Harvard University associate, stated that blockchain and antitrust agencies share a common goal of decentralization. Per their latest paper, blockchain can help lawmakers reach the goals of antitrust law in situations where the rule of law does not apply, detailing how this may be accomplished from a technical and legal standpoint. Therefore, the authors argue that antitrust agencies should support the technology and initiatives like sandboxes.
- A second class action against Block.one, the publisher of EOSIO software, was filed yesterday, according to which, EOS was an unregistered security offering by Block.one. Now, more investors in the initial coin offering for EOS, which raised USD 4 billion in crypto, are seeking their funds back, alleging that over USD 200 million was illegally raised.
Author: By Tim AlperSead Fadilpašić
Bitcoin’s Halving Is Nothing Like Quantitative Tightening
May 19, 2020 at 19:30 UTC
(Credit: The Trustees of the British Museum)
On May 11, block 630,000 on the Bitcoin network was mined. The rate at which new bitcoins are produced promptly dropped from 12.5 to 6.25 approximately every 10 minutes. Many people expected this “halving” to trigger a sustained rise in bitcoin’s U.S. dollar price, as it did after previous halvings in 2013 and 2017. And indeed, bitcoin’s price is now trending upwards after an initial sharp fall immediately after the halving. So is there going to be another bitcoin bull run?
The halving has come at a time when the U.S. Federal Reserve is creating unprecedented amounts of new money through “quantitative easing.” For bitcoiners, such profligate fiat money creation only serves to emphasize the soundness of bitcoin, with its built-in scarcity. Echoing the famous message that Satoshi left on Bitcoin’s genesis block, F2Pool, which mined the last block before the halving, etched this on the blockchain: “NYTimes 09/Apr/2020 With $2.3T Injection, Fed’s Plan Far Exceeds 2008 Rescue.” The implication is clear: The Fed’s action is bullish for bitcoin.
Highlighting the fact that bitcoin’s production rate has fallen just as the Fed’s production rate is wildly increasing, some people have dubbed the halving “quantitative tightening.” But I’m afraid this is wrong. Halving bitcoin’s production rate isn’t quantitative tightening.
Everyone knows that when the Fed does quantitative easing (QE), it is putting new money into the economy. It buys assets from the private sector, which it pays for with newly created dollars. These new dollars circulate in the economy, stimulating activity and raising inflation.
Quantitative tightening is the reverse. The Fed sells assets to the private sector, or allows assets it already holds to mature. It burns the money it receives in return for these assets. So the quantity of dollars in circulation actually falls, depressing activity and reducing inflation. Quantitative tightening is destruction of money.
The halving could both increase the rate at which Bitcoin’s price rises and bring forward the point at which it crashes
As recently as two years ago, the Fed was doing quantitative tightening. It allowed U.S. Treasury bonds on its balance sheet to mature, and burned the money the U.S. government paid it to redeem them. Between 2016 and 2018, the Fed cut base money – the dollars it directly creates – by half. But Bitcoin’s code doesn’t include any mechanism by which the supply of bitcoins can be reduced. Bitcoin can’t burn bitcoins. So it is just wrong to call the halving “quantitative tightening.”
The Fed ended quantitative tightening when international dollar shortages started to cause serious strains in financial markets. It has been putting new money into the system since last September. Now, with the coronavirus pandemic threatening to cause a global depression, the Fed has cut interest rates to zero and embarked on a mammoth QE program. The quantity of base money in circulation will soon be the largest in history. But the dollar exchange rate continues to soar as spooked investors rush into dollar-denominated assets. Despite the Fed’s best efforts, the world remains desperately short of dollars.
However, all that new money rushing round the system could result in high inflation once the economy emerges from its pandemic-induced slump. So bitcoin’s halving has come at just the right moment. Instead of investing in an asset that is being systematically inflated, why not invest in one that is scarce by design and set to become even scarcer?
The problem with this is bitcoin isn’t becoming scarcer. The quantity of bitcoins in circulation is still increasing, just more slowly. The halving is equivalent to the Fed cutting the rate of QE asset purchases by half.
Currently, Bitcoin isn’t “hard money.” Its supply is not fixed, and will not be for a very long time. The famous 21 million limit won’t be reached for over a century, if it is ever reached at all. Diminishing returns may mean miners drop out before the last bitcoin can be mined. Bitcoin’s supply isn’t increasing as fast as the supply of dollars, true, but then it isn’t the world’s preferred savings vehicle at a time of crisis – and bitcoin supporters might want to think about why it still isn’t, after a decade of ultra-low interest rates, three rounds of QE and (now) the biggest money creation program the world has ever seen. Perhaps exorbitant Fed money creation isn’t quite as bullish for bitcoin as its advocates like to think.
So the halving hasn’t made bitcoins scarcer for investors. But there is a group for whom it is now scarcer than it was a couple of weeks ago. Miners.
The purpose of Bitcoin’s periodic halvings is to make bitcoins scarcer for miners. Halving the rate of production of new bitcoins represents a loss of about $58,000 per block mined. So we could call this a pay cut for miners. Or we could say the subsidy that network users pay to miners has been reduced by half. Miners have to work harder for their rewards, which forces out less efficient miners. And as the block reward diminishes, transaction fees make up a larger proportion of miners’ profits. By the time the last block is mined, nearly all of miners’ profits will come from transaction fees.
Sure enough, since the halving marginal miners have started to drop out, and transaction fees have become a larger proportion of the remaining miners’ profits. The halving is doing exactly what it was supposed to do.
The Fed’s behavior was driving up demand for bitcoin before the halving. A slower production rate will widen the gap between supply and demand, increasing the rate at which the price rises. But as anyone with a rudimentary grasp of economics will know, when demand exceeds supply, the price rises until either supply increases to meet demand or demand falls to meet supply.
In the case of bitcoin, supply can’t increase any faster than the code allows, and the code has just slowed it down considerably. Eventually, buyers will drop out and the price will fall. Given the rate at which transaction fees and confirmation times are rising, that could happen sooner rather than later. Paradoxically, therefore, the halving could both increase the rate at which bitcoin’s price rises and bring forward the point at which it crashes.
The Fed’s money creation is already pushing up bitcoin’s price, and bitcoin’s halving could accelerate this rise. There’s still time for a post-halving bull run. But the price rises after the last two halvings both ended in major crashes. If there is a bull run this time, it will probably be short-lived.
Author: Daniel Cawrey
blockchain News and Updates from The Economic Times
Agriculture can be the nodal point of efforts to revive growth by converging technologies. Digitising land titles can unclog courts considerably. This task can be assigned to a special authority set up by state governments leveraging the e-governance capabilities of successful enterprises in India.
With consumer outlets being shut, fashion brands and retailers have taken an enormous hit to their bottom line and cash reserves. But the worst hit were the factory workers, of which almost 85% are women, who typically earn below living wages and do not accumulate any savings.
The company says scammers on YouTube have been impersonating Ripple and its CEO, Brad Garlinghouse, to bait viewers into sending thousands of dollars worth of XRP, a cryptocurrency championed by Ripple, according to a court filing.