11/02/2022
5 Crypto Facts
5) Who is the wealthiest cryptocurrency user in the world?
Earlier this year, Bloomberg released a report stating that the richest cryptocurrency and Bitcoin tycoon is Binance CEO Changpeng Zhao - a Chinese billionaire. Known in financial circles as CZ, the cryptophile who is worth an estimated US$96bn, enjoys a diamond-studded lifestyle in the UAE, owns a penthouse suite in the Burj Khalifa and is being wooed by Abu Dhabi Royals who have been keen for him to launch his exchange in the country. They got their wish recently as Binance was granted a virtual asset license by Dubai's regulator as the crypto exchange seeks to expand further in the United Arab Emirates.
4) Is Bitcoin a safe and value-accruing investment?
According to the experts, no. Although it's an unthinkable scenario now, the president and portfolio manager of the US investment firm Paulson & Co, John Paulson, predicted that at some point in the future, the world’s most valuable cryptocurrency will become worthless. His words were echoed in an article in the UK’s Guardian newspaper and the BBC, by the deputy governor of the Bank of England, Sir Jon Cunliffe, who remarked, “Their price can vary quite considerably and [bitcoins] could theoretically or practically drop to zero.”
3) Will imposing cryptocurrency regulations restrict the market value?
Those that enjoy the renegade and wild west world of cryptocurrency, are often quick to criticize attempts by those in financial regulatory positions who recommend that cryptocurrency should be subject to stiffer regulations. But the infamous former Wolf of Wall Street, Jordan Belfort, has a different take. He believes that regulating the world of peer-to-peer finance will actually result in massive growth. Belfort says that whenever a financial investment possibility is stabilized by regulation, it becomes far more attractive to big gun investors - and once that happens, the sky is the limit.
2) Will governments ever successfully impose regulations on cryptocurrency?
It's a double-edged sword. The birth of cryptocurrency was a deliberate two fingers up to the global financial establishment. It was always meant to be regulated entirely by market demand and not by interfering governments who regularly manipulate and bend currency value to meet their needs. Traditional Fiat currencies are given their worth by the issuer and are controlled by the governments that back their worth. Bitcoin and other cryptocurrencies are therefore seen as a threat to the centralized financial control offered by the global banking system. But, as Belfort points out, without the legitimacy of regulations, cryptocurrency also remains essentially, an unstable gamble for investors.
1) Will Ethereum ever become as valuable as Bitcoin?
All reports suggest that yes, Ethereum could well become as valuable as Bitcoin, and this could happen sooner than you think. The open-source currency which was conceptualized in 2013, has been recognized by leading banking players such as Goldman Sachs as a rising star in cryptocurrency terms. The investment bank noted publicly that Etherium is likely to even surpass the $660bn ‘market capitalization’ of Bitcoin because its network has real-world applications and as a currency, it has the ability to store value. Ethereum offers the possibility of smart contracts and programmable money - something that Bitcoin, which is now termed as a legacy currency, is not able to provide.
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