Crypto spring is here

Is it possible that spring is finally in the air, and after 17 months of suffering we are finally seeing the first green shoots of the season? Of course, this calendar spring showed impressive daily volumes, and Bitcoin’s price as of July, 3 is $9,111.18. If the numbers don’t impress you, here’s a story that will change your mind.

In a May conversation with Yahoo Finance reporters, co-founder of Reddit and early Coinbase investor Alexis Ohanian noted that he sees all the signs of spring coming into the crypto industry. It is curious that the words he said directly correspond to the cryptocurrency market cyclical theory, which was presented by experts from Andreessen Horowitz in their report. According to their research, cyclicality occurs according to a certain scenario, and at the moment the fourth cycle has begun, which was marked by the growth of digital assets. Not only has the influx of crypto investors increased, but the exchanges themselves are developing.

According to their research, cyclicality occurs according to a certain pattern, and at the moment the fourth cycle has begun, which is marked by growth in the crypto industry. This is reflected in both the influx of crypto investors and the development of cryptocurrency exchanges contributing to the mass adoption of coins. The parameters of basic crypto trading and investing are different and mostly depend on the initial strategy. Nevertheless, the more trading pairs an exchange provides, the easier it is for new users to try their hand at trading. Currently, with most exchanges offering around 400 trading pairs, HitBTC has distinguished itself by offering the most pairs in the industry, with over 800 on the platform. Such a wealth of choices makes access to the crypto and blockchain industry through trading more accessible and attractive.

So what exactly does Ohanian mean when referring to the “onset of cryptocurrency,” and what do eminent trading experts think about investments in Bitcoin today? Read on for a detailed answer.
Сrypto prices to surge or blockchain space evolution?
Over the past two years, the Bitcoin exchange rate has barely been able to exceed half of its historical maximum of $20,000, from back in December 2017. Moreover, in December 2018, the crypto-winter began. It lasted until April 2019, and during that period BTC sank significantly and traded between $3,200 and $3,500. Then we witnessed a gradual rise with random kickbacks. And since March 2020, after the announcement of mass quarantine in light of the coronavirus pandemic, Bitcoin has jumped by more than 90%. In June, BTC was healthy: its rate fluctuated around $9,500 and even briefly exceeded the psychological mark of $10,000. 

The current state of affairs allows us to say that the crypto-winter has come to an end, and the ice has begun to melt. However, Alexis Ohanian is sure that the main reason for the “crypto thaw” is not so much the increase in the price of digital assets, but rather the development of the blockchain ecosystem.

When asked by a journalist about what forecasts he can give regarding the prospects of cryptocurrencies for the next two months, Ohanian replied he wasn’t trying to track the price, although he saw that recently Bitcoin touched the mark of $10,000. Ohanian added that he had invested in Coinbase in 2011-2012 when Bitcoin was worth a few dollars per coin. He insisted that the trends were actually quite revealing. Ohanian refrained from predicting BTC value in the nearest future, but he said that the crypto-spring that we are witnessing right now is the product of the work done by leading engineers, developers, and designers who are coming up with really effective solutions based on blockchain. He pointed out that we now see highly qualified and talented specialists developing the infrastructure, which is the best sign of increasing value in the long run.

Further along in the interview, the co-founder of Reddit also admitted that for quite some time he has kept part of his fortune in Bitcoin, which he feels is the right thing to do. He does not want to radically change anything since he considers this approach a reasonable hedging of risks, which will protect against inflation. Ohanian also noted that the interest of Wall Street sharks in Bitcoin is constantly growing, so it is becoming obvious that cryptocurrency is “here to stay.”

Paul Tudor Jones: “Bitcoin is the fastest horse”

We know Paul Tudor Jones as a billionaire, one of the largest figures in the global financial market, one of the most famous macro-investors and the chief executive officer of Tudor Investment Corp. He agrees with Alexis Ohanian’s position regarding hedging risks by purchasing Bitcoin. In particular, in a conversation with CNBC reporters, he said that he used to be skeptical about the first cryptocurrency, but recent events forced him to change his mind.

When thinking about COVID-19 and the great monetary inflation it caused, Paul Tudor Jones discovered why he now believes in Bitcoin. He said he holds a little over 1% of his assets in BTC and called the coin a store of value and effective inflation insurance. As Jones shared with Bloomberg, “The best profit-maximizing strategy is to own the fastest horse...If I am forced to forecast, my bet is it will be Bitcoin.”

Jones also added that he did not approve of the current policy of central banks regarding the printing of new money, adopted in order to combat the coronavirus pandemic. He noted that he considered various betting options: gold, treasury securities, certain types of stocks, currencies, and agricultural products, before recognizing the “growing role of Bitcoin.” 

Of course, the opinion of such a qualified individual deserves serious attention. Surely, the clients of the hedge fund founded by Jones, as well as other stock market players, will heed his words and will also begin to show more interest in cryptocurrencies.

A little earlier, another recognized person in the crypto world, trader and investor Mike Novogratz, also said that the unprecedented actions of central banks regarding monetary policy during the pandemic will lead to wider adoption of cryptocurrencies around the planet. He also noted that the number of Bitcoin investors has recently increased with both private individuals and hedge funds among the newcomers.

Blockchain is in full swing

And now let's take a look at the signs of the onset of cryptocurrency from Alex Ohanian’s perspective:

• Reddit is testing special tokens

Let's start with the platform closely connected with Ohanian himself. Since last month, Reddit has been beta testing specialized ERC20 tokens, which will be given as bonuses for contributing to the community (like writing posts and comments that gain high ratings). Without a doubt, the adoption of digital money by a platform with a multi-million user audience is a significant event for the mass popularization of cryptocurrency and blockchain technology in general.

• Samsung embeds crypto-wallets in smartphones

Gemini Cryptocurrency Exchange has signed a contract with Samsung to integrate the Samsung Blockchain Wallet into mobile devices. Now, the latest generation of Galaxy smartphones in the US and Canada will be able to buy, sell and exchange digital assets through the convenient and secure Gemini mobile app. Of course, this step by one of the world's largest tech giants speaks volumes about its focus on the development of blockchain technology and the universal adoption of cryptocurrencies.

• The Enjin project has released a plugin for adding tokens to Minecraft

The super-popular Minecraft sandbox computer game has been around for 11 years and during that time it has gained a multi-million user community of players around the world. Now its participants will be able to connect to the open-source plug-in EnjinCraft and create their own blockchain economy right inside the game. The plugin allows you to integrate digital assets into the game world and trade on a p2p network through Minecraft servers, as well as through specialized chat rooms and online digital commerce platforms, such as the Enjin Marketplace. The scale of this innovation is huge, as more than 126 million people play Minecraft every month.

• Bayer China has partnered with VeChain

The Chinese branch of Bayer, an international pharmaceutical company, has signed an agreement with Singapore's VeChain. This platform of the Blockchain-as-a-Service (BAAS) segment provides services for creating efficient distributed business ecosystems. The purpose of the collaboration is to track the supply chain of drugs from clinical trials and production to retail distribution. Without exaggeration, this decision can be called vitally important, since it helps prevent the production of counterfeit medicine, which is an urgent global problem today. And now this issue can be effectively solved with the help of blockchain technology.

• Browser Brave vs Zoom

The best of its class in terms of privacy and security, the Brave open source web browser with its own token has launched a pass-through encryption service for making video calls. The product called Brave Together will compete with the Zoom cloud platform, which, as it turned out, does not provide end-to-end encryption and allows data leakage. Such a decision is crucial for protecting the privacy of all categories of users - from individuals to government agencies.

These are just five examples of innovations over the past few weeks - in fact, there are many more and they are appearing more often. Blockchain technology and cryptocurrencies are penetrating deeper into various spheres of human life, and this is wonderful. Crypto spring has come, and along with it, new ideas are moving technological progress to the highest heights.