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Bitcoin vs USD (crypto vs fiat)

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It can carefully be observed that cryptocurrencies hold an upper hand when compared to the Fiat currencies and hence seems to have a bright future

Comparing Fiat and Cryptocurrencies in order to assess their future

 

Introduction

There is a very thin line between a Cryptocurrency as well as a Fiat currency. It is well known that the cryptocurrencies are about to replace Fiat currencies completely, due to its innumerable dominance. Let’s understand the characteristic attributes of each one of them which differentiates them along with understanding their relative strength and weaknesses over each other.

 

  1. Fiat currency is nothing but the traditional currency which we use on a daily basis regulated by the Central Financial Authority of the respective country. On the other hand, the cryptocurrencies are not regulated by any Central Financial Authority but are distributed in nature.

 

  1. The Fiat currencies exist in physical form i.e physical denominations of the currency is available in the form of paper notes and coins. Cryptocurrencies, on the contrary, are completely digital and no physical denominations are available in any form of notes or coins.

 

  1. Due to this physical existence of the Fiat currencies a lot of paper (indirectly trees) along with metals (for coins) are required for its manufacturing, but the cryptocurrencies, since are available only on electronic devices need not require any such natural resources.

 

  1. The main characteristic feature of the cryptocurrencies is its way of creation. The cryptocurrencies are not manufactured in the way the Fiat currencies are done. Cryptocurrencies require complex computations to be done in order to obtain them, through a process called Mining. The Fiat currencies do not require that much amount of electricity. The amount of electricity needed is to print paper or mint coins.

 

  1. As crypto mining requires immense amounts of energy, it gives the currency generated, some intrinsic value. As a creation of Fiat currencies requires a fixed amount of energy, they do not provide that much intrinsic value to the currency as the cryptocurrencies do.

 

  1. Fiat currencies are regulated and distributed by the central financial authority of the respective countries and hence the amounts of Fiat currencies manufactured can be huge, which might lead to its Deflation. But as the cryptocurrencies require complex computations, the amount of cryptocurrencies mined is not under anybody’s control, it is Deflation proof.

 

  1. In the case of Fiat currencies, manufacturing is vested with a Centralised Authority but in the cryptocurrencies, even the creation or mining the cryptocurrencies is distributed among its participants.

 

  1. Nevertheless, both the currencies have similarities too.  They both can be broken down into a number of denominations and can be considered as a store of value.

 

  1. Fiat currencies are regarded as legal tender by all the governments but the cryptocurrencies are not regarded as a legal tender in many of the countries around the world.

 

  1. One of the key upper hand that the cryptocurrencies hold is that they are globalized and can easily be transferred anywhere around the world. But as the Fiat currencies are regional, they are somewhat restricted towards a specific region and one is required to get it exchanged to use them in a different nation.

 

  1. The Governments can restrict the usage of the Fiat ( like setting the maximum withdrawal limits) for their users for a number of reasons, but there is no such restriction in case of a cryptocurrency.

 

  1. The market fluctuations in the case of a Fiat currency is relatively less when compared to that of cryptocurrencies since the cryptocurrency market is not mature enough yet.

 

  1. Both the currencies can be seen standing on the same grounds when it comes to estimating its actual asset value because no asset is used to back them up. However, earlier the Fiat currencies used to be backed up by Gold.

 

  1. Features of a currency like a Durability, Portability, Divisibility, and Uniformity seems to be applicable to both of them quite gracefully. But when it comes to Supply and Acceptability, they seem to be poles apart.

 

  1. Examples for Fiat currencies are Indian Rupee, American Dollar, European Euro, Japanese Yen, etc. Bitcoin, Ethereum, Ripple, Bitcoin Cash, Ethereum Classic, are some of the most popular examples of cryptocurrencies.

 

Conclusive remarks

It can carefully be observed that cryptocurrencies, on a generalized basis, hold an upper hand when compared to the Fiat currencies and hence seems to have a bright future in the financial sector.

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#Exchange

Mt Gox: Has the time come when Mt.Gox Creditors will be paid?

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As reported by the Mt Gox trustee, They still have 141,000 BTC and 142,000 BCH and the trustee seems to be taking charge to return the funds to the victims.

The small cryptocurrency community back then was in shock when the biggest bitcoin exchange Mt Gox (at that time) was hacked and around 850,000 BTC were stolen which were worth around $450 million back then and around $3.4 billion according to today’s price. Years have passed since the incident, however, only a few the victims have received their share and most of them are still waiting for their lost funds.

 

Mt Gox to credit victims?

As reported by Nobuaki Kobayashi, the Mt Gox trustee, Mt Gox still has more than 141,000 Bitcoin and 142,000 Bitcoin Cash and the trustee seems to be taking charge to return the following funds to the victims. The victims were super excited to hear this and Twitter seems to be full of tweets claiming that the exchange has finally made its decision of returning the lost funds to the victims.


However, it is worth noting that Mt Gox might have more than $631 million worth of Bitcoin and Bitcoin Cash, the number of funds to be compensated are likely much more than this amount. The other documents on the website claim that the victims shall be sent a notification regarding the approval or disapproval of their claims based upon their type of filing (online or email).

 

Nobuaki Kobayashi said that after a few days, the Rehabilitation Trustee of Mt Gox will be announcing the results of the claims filed by the victims. The result will showcase whether or not their claims have been accepted.

 

Missed the deadline?

If you are one of the victims and you’ve somehow missed submitting your claim, you can still download the claim form from the Mt Gox website. However, if these claims made after the deadline shall be accepted for refunds will be decided by the court.

 

Is there any timeline for the claims?

According to Nobuaki Kobayashi. he will contact the victims soon. So there is no specific timeline as to when the funds will return to the victims. However, it is still great news for the people who have been waiting for over 5 years and they are surely happy about the fact that they will soon be compensated.

 

Cryptocurrency investors are now wondering how will this affect the bitcoin price? What do you think? Tell us in the comments section below.

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#Bitcoin

Cryptocurrency Price Analysis: Great Week for the top 10

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The current week has proved to be quite amazing for the cryptocurrency market as all major coins are holding green. The total cryptocurrency market rose by around $1.5 billion yesterday night with the price of bitcoin reaching $4100.

 

Bitcoin:

BTCUSD Price Chart

BTC/USD Weekly Price Chart

Bitcoin broke the $4000 resistance level on 17th March and has been over this range since then. Bitcoin has turned the previous resistance into strong support now and has moved upwards slowly currently trading around $4120 (according to Bitfinex chart) with around 1% increase in the last 24 hours. If bitcoin is able to maintain its position above $4100 range for long, it might soon move ahead towards the major long term resistances such as $4500 and $4600.

 

Altcoins:

ETHUSD Weekly Chart

ETH/USD Weekly Chart

Ethereum also saw a nice bullish momentum this week after reaching the highest point of $143. Currently, Ethereum is trading nicely around $140 and is experiencing a few dips while trying to move upwards.

Unlike other top 10 coins, Ripple market is experiencing volatility from the last week but the momentum is still quite bullish.

LTCUSD Weekly Chart

LTCUSD Weekly Chart

Litecoin has been following trends and is steadily trading around $60 from the start of the week. Litecoin has increased more than 1.67% in the last 24 hours which makes it the best performing crypto of the day (in comparison with the top 10 cryptos according to market capitalization). LTC is currently trading around $61 (according to Bitfinex chart).

 

The overall cryptocurrency market is in a bullish momentum with sings of further gains. After a long bearish trend, cryptocurrency analysts are now believing that the bull market might be coming soon.

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#Bitcoin Price Analysis

Bitcoin Price to $4500 soon? BTC Price Analysis

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Bitcoin price moved above $4000 yesterday and currently trading around $4100. The buyers are trying again to break through the strong resistance at $4200.

Technical Indicators:

Support Level: $3900

Resistance Levels: $4100, $4200

 

Bitcoin Price Analysis:

On the hourly chart, bitcoin price has been quite bullish since last week when it reached a high point of $4160. However, bitcoin was not able to break through the resistance around this range. Again bitcoin started a bullish momentum on 18th March and reached up to $4120 before but started to correct downwards later. It went below $4000 support level.

Bitcoin price moved above $4000 yesterday and currently trading around $4100. The buyers are trying again to break through the strong resistance that is formed between $4100 and $4200. If the current resistance is broken, there are chances that bitcoin could spike up to $4500 in the short term. The current momentum surely signals a ‘buy’ time. However, if bitcoin is not able to break through this resistance for long, it could result in BTC price falling back below $4000 and even $3900 range and turn bearish.

BTCUSD Hourly Chart

BTCUSD Hourly Chart

Last week, bitcoin tested the $4200 resistance but failed to break through. The sellers pushed the price down to $3832. Later, buyers were able to start a fresh bullish momentum and moved the price above the 12-day exponential moving average which was turned into support. Bitcoin moved above $4000 and the buyers are currently moving ahead to fight the sellers at $4200 resistance level.

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