The crypto industry, which has been on the rise with the banking crisis, has been a tremendous alternative for many investors. Especially with the rise in the leading cryptocurrency Bitcoin (BTC), many investors have directed their investments to the crypto industry! So what do the experts think? Finance firm Motley Fool announced…
“Bitcoin, the leading cryptocurrency, has a new design to compete with banks!”
As we reported as Kriptokoin.com, many investors want to explore the structure of Bitcoin and learn the advantages it offers, with BTC exceeding the level of 28 thousand dollars. Here are the most important features of Bitcoin…
Decentralization
Since Bitcoin runs on a decentralized network, no single entity such as a government or financial institution can control it. This high level of decentralization provides users with greater freedom while providing resistance to censorship or manipulation.
Financial participation
While citizens in developed economies can easily access banking products, people in other parts of the world do not always have this luxury. With Bitcoin, all it takes is an internet connection and one can send money, pay wire transfers and store value without needing a bank.
Transparency and superior security service
Because Bitcoin runs on a blockchain, all transactions are public and immutable, so they can never be changed or removed. This combination of transparency and security makes it easy to verify and track transactions on the Bitcoin blockchain. Therefore, the risks of fraud and corruption are almost non-existent.
Security
While Bitcoin transactions are public, there is an additional level of privacy as the transactions are not linked to any personal information. The only information linked to transactions are public addresses in the form of a random, unique combination of letters and numbers. Theoretically, someone could track all transactions from an address, but it’s still unlikely to really know who’s behind them.
Increased efficiency and functionality
Thanks to the 2021 update, known as Taproot, Bitcoin is now able to support smart contract functionality. With smart contracts, various financial processes can be automated and streamlined while executing predefined actions when certain criteria are met. This inevitably leads to increased productivity and new business models. While we can only guess, it would be easy to assume that Bitcoin is doing exactly what Nakamoto intended. Investors may turn to these features of Bitcoin in the face of major bank crises.
Experts think that the banking sector can increase the price of BTC!
The comments made by Motley Fool experts on the subject draw attention. According to Motley Fool analysts, Bitcoin critics point to the fact that Bitcoin can never serve as an alternative to traditional banking when its volatility is so high and deposits held in banks are insured by the US government for up to $250,000. However, these price fluctuations are likely to be a temporary phenomenon. Volatility is a feature of assets with a small market capitalization. As Bitcoin’s overall value starts to rise, its volatility will likely drop.
For now, however, Nakamoto’s vision seems to be unfolding before our eyes, as more people are realizing that banks are not entirely risk-free and often use client funds for speculative activities. If more turbulence hits the banking industry, Bitcoin could continue to rise.
Ark Invest CEO Cathie Wood penned her views on Bitcoin!
Cathie Wood and her team at Ark Invest believe that, against the backdrop of the recent turmoil in the banking industry, Bitcoin displays characteristics often only seen in safe-haven assets like gold. Earlier this week, Wood penned an open letter with crypto analysts arguing that Bitcoin adoption is in the midst of a turning point. The post coincided with an increase of more than 25 percent in a week for Bitcoin amid a string of banking failures in the US and Europe.
In the article, Wood and his team suggested that the reason Bitcoin had such a good week was because of recognition for one of the main reasons Bitcoin was invented: it attracted many investors because of its decentralized nature and a viable alternative for those who want to hide their investments.
Wood’s team pointed out that over the weekend, with the market closed and news of bank bankruptcies circulating, Bitcoin is functioning as it has for the past 14 years. That same weekend the banks were closed, Bitcoin didn’t skip a beat: It processed roughly $33 billion and about 600,000 transactions, issued 2,037 new Bitcoins, pulled around 1 million new addresses, and earned $43 million for the miners who secured the network. Due to its decentralized nature, it did all this without the need for a specific company, institution, government or person. Additionally, unlike banks that often operate in a non-transparent manner and whose decisions are subject to the whims of a handful of decision makers or officials, Bitcoin offers users a transparent, auditable, reliable and decentralized solution.
Leading cryptocurrency Bitcoin can rise!
On the other hand, the comments made seem extremely positive for Bitcoin. In the current economic picture, if the Fed continues to raise rates, banks will fail even more. While many experts point out that this could be a sign of Bitcoin’s rise, they don’t know if it will happen in the next few months or days.
With its growth over the past 14 years, BTC has proven to many investors as an alternative to traditional banking. The project, which offers full transparency and credibility, will attract many new investors if it can be accepted as an alternative to the banking sector in the near future. However, according to experts, the price may rise with the supply and demand balance for Bitcoin. Instantly, the leading cryptocurrency Bitcoin is trading at $ 27,898.74 and has risen 0.3 percent in the last 24 hours.
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