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Crypto fans ignore its ups and downs
In the past few weeks, the value of cryptocurrencies has been slashed by half over fear, uncertainty, and doubt (aka FUD) of US interest rate hikes and new regulation.
That means NYC Mayor Eric Adams, NFL quarterback Aaron Rodgers and basketball star Klay Thompson all face pay cuts because they get their salaries in crypto.
Yet, the crypto bros out there have not lost faith.
El Salvador’s crypto-loving President Nayib Bukele is still going strong, ignoring calls by the IMF to stop using bitcoin as legal tender.
What's the big deal about bitcoin anyway?
Critics say it's a Ponzi scheme for criminals. The online black market does take bitcoin, which is also the go-to payment scheme in rug-pull scams.
But crypto fans insist that the tech is anonymous, secure, and unhackable. Not to mention cutting out the middleman: untrustworthy banks.
In fact, crypto has already gone so mainstream that Goldman Sachs predicts it'll compete with gold, and JP says that blockchain will be the backbone of Web 3.0 — a new, more decentralized internet.
The flip side: it could also go to zero.
Watch the GZERO World episode: Does China's rise have to mean America's decline?
Cryptocurrency going mainstream but EU & US regulators face challenges
Marietje Schaake, International Policy Director at Stanford's Cyber Policy Center, Eurasia Group senior advisor and former MEP, discusses trends in big tech, privacy protection and cyberspace:
Has cryptocurrency finally gone mainstream?
Well, it certainly looks like that because after some people had invested in bitcoins out of curiosity or the quiet hope to make a fortune, now the EU and the European Central Bank are considering a digital euro. And this week, Visa announced that it would accept crypto coins, too. So those developments may help facilitate trust in an area that is also known to be a safe haven for criminal money.
How are different governments dealing with the continued rise of cryptocurrencies?
Well, EU regulators are working on incorporating them and allowing for pilots and regulatory sandboxes to test innovative blockchain applications and governance. But in the US, regulation looks at know-your-customer type requirements to build trust and accountability. And not surprisingly, enthusiasts of the unregulated cryptos have complained. So this is a question not yet settled.
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- NFTs: Hype, mainstream growth - & implications - GZERO Media ›
- Crypto fans ignore its ups and downs - GZERO Media ›
What are NFTs, and how do they fit into the crypto landscape?
Marietje Schaake, International Policy Director at Stanford's Cyber Policy Center, Eurasia Group senior advisor and former MEP, discusses trends in big tech, privacy protection and cyberspace:
You may have heard that Jack Dorsey is selling his first tweet as an NFT in an auction, but what are NFTs?
Well, I had to do a little homework. NFT stands for "non-fungible tokens." They are unique digital files stored in a block chain and essentially a rare piece of data that becomes an asset. Also, because it can be authenticated. Now, actual ownership is one-off, unique, so unique that Christie's sold one of the highest paid pieces of art by a living artist ever as an NFT, for $69.3 million. And I guess just like with art on canvas, whether that was worth it is a matter of personal taste.
How do NFTs fit into or complicate the crypto landscape?
Now, for one, they're backed by some of the same investors that created crypto currencies. They're also growing exponentially in value, almost 300% in 2020 alone. So, I'm keeping an eye out for where we will be at the end of this year. But does this mean all upside and opportunity? Not so much. The environment, for one, is already paying a high price for all the crypto mining. And with so much hype, there are also questions about whether NFTs will remain available in the future.
- Cryptocurrency going mainstream but EU & US regulators face challenges - GZERO Media ›
- What is Coinbase, the first major cryptocurrency company to go public? - GZERO Media ›
- Do cryptocurrencies undermine US sanctions? - GZERO Media ›
- NFTs: Hype, mainstream growth - & implications - GZERO Media ›
- Crypto fans ignore its ups and downs - GZERO Media ›
How Contact Tracing Apps Work; Trading Bitcoin & Digital Currency
What will digital contact tracing apps look like and how will they work?
Well, the basic idea is that if you opt in to one of these apps, your phone will use Bluetooth, it will scan, look for other devices that are also being used by people who have opted in. If one of you test positive for coronavirus, the other will get a notification and can then take corrective action. There are a lot of different ways these are being built, but that's the idea.
Where is Bitcoin? Has digital currency grown as a result of this pandemic?
Bitcoin plummeted down to about $5,000 when all the markets were crashing in mid-March and since then, moved back up to about just under $10,000. Why is that? Maybe it's because the whole theory of bitcoin is correct? It is the currency people will turn to at moments of uncertainty when they don't trust their governments. Or, it could just be speculation. I have learned at this point, never to predict the price of bitcoin.