7 Crypto Updates You Should Know
Over the weekend, the crypto market experienced significant volatility. From bitcoin price volatility to multimillion-dollar hacks, the news covered everything from Bitmart’s new CFO to the Market cap and Charlie Munger’s remarks on cryptocurrency. Listed below are 7 updates you should know about cryptocurrency. Read on to learn more about these and other developments in the crypto world. Also, be sure to subscribe to our weekly newsletter!
Market cap
If you follow the cryptocurrency space, you’ll be aware that the market is incredibly volatile. Even though it is a relatively new concept, bitcoin has steadily gained value over the last decade, reaching a market cap of $1 trillion in February 2021. A robust regulatory structure, along with the growth of institutional investment, have led to the price of bitcoin’s value soaring.
At a meet-up organized by Axie Infinity, a popular play-to-earn crypto game, people from all over the world flocked to Los Angeles to hear the keynote speech by Jeff Zirlin. The Axie Infinity crypto network was recently hacked for $625 million, and the publisher, Sky Mavis, had invited fans to attend.
Bitcoin price volatility
With the price of bitcoin fluctuating wildly in the past decade, it is important to keep up with the latest developments in the cryptocurrency market. Although this young market has had a high degree of volatility, it has slowly gained long-term value since its genesis block in 2010. As of February 2021, the market cap of Bitcoin is already well over $1 trillion. Bitcoin’s robust regulatory framework has attracted large institutional investors and is gaining traction among the general public.
Bitcoin’s price continued to plummet on Sunday, and the second largest cryptocurrency, ether, plunged nearly 4 percent. Ether, the second most popular cryptocurrency, dipped as low as $ 3,500 during the same period. The trend in price volatility continued on Wednesday, as both retail and tech stocks underperformed. Meanwhile, the CBOE Volatility Index, based on S&P 500 index options, ticked higher.
Bitmart hack
Bitmart, a popular cryptocurrency exchange, confirmed that its customers were hacked on Saturday night. The company has pledged to compensate the victims with its own money, which amounts to $196 million. Those who are impacted by this hack should avoid making any transactions on the exchange until the situation has been thoroughly investigated. But before making any decisions, investors should be aware of seven crypto updates you should read today.
Charlie Munger’s stance on cryptocurrency
The recent volatility in Bitcoin and other leading digital assets has put investors on edge. But, Buffett has weighed in with his own thoughts. The legendary investor has repeatedly criticized the crypto industry, calling it “rat poison.” In response, Munger has endorsed the cryptocurrency’s detractors, including Bitcoin enthusiasts. And, he’s backed its detractors as well, including MuffinPay’s founder Dileep Seinberg.
While many have been quick to call Munger’s stance on cryptocurrency “overly simplistic,” the legendary value investor isn’t wrong. The legendary Berkshire Hathaway vice chairman is a billionaire who has never invested in crypto. Moreover, he’s repeatedly called BTC worthless, comparing it to a venereal disease. So, is this investor really that clueless about the cryptocurrency industry? Let’s see.
The former Berkshire Hathaway vice chairman has stated that the financial system is in dire need of change. As he noted, cryptocurrency has disrupted many industries. Today, banks such as JPMorgan are beginning to offer crypto services to wealthy investors, but they’re not the only ones. Warren Buffett’s peer Ray Dalio has also spoken about cryptocurrency as a potential investment. If you’re wondering why Munger’s stance is so controversial, look no further than the broader debate over the future of cryptocurrencies.
While Buffett has a long-standing policy of avoiding cryptocurrencies, he’s now weighing his options on the digital currency market. Munger has been building a stake in Alibaba Group Holding Ltd. after receiving repeated questions about this purchase. During the meeting, he said that he feels safer investing in China than in the United States. And he cited Buffett’s recent comments regarding cryptocurrency as one of the reasons for his stance.
