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Why Bitcoin Is One Of The Most Undervalued Assets In 2021

Despite BTC’s price gains in 2020, the failings of our fiat monetary system demonstrate that bitcoin is still significantly undervalued.

The post Why Bitcoin Is One Of The Most Undervalued Assets In 2021 appeared first on Bitcoin Magazine.

Republished by Plato

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According to Bloomberg, bitcoin’s 9 million percent price rise makes it the best performing asset of the last decade. But what if I told you that even in 2021, Bitcoin is still one of the most undervalued assets there is?

If you are one of those people who has thought of putting money into bitcoin, but just could not pull the trigger, then you are not alone. 

The crypto community today is flooded with people who, unfortunately, do not understand the fundamentals lying behind these digital assets. And because bitcoin has amassed a significant following of these “weak hands,” institutions and principal investors may become more cautious when it comes to putting money into bitcoin. 

When they see that people do not agree on basic questions like “What gives Bitcoin its value?” and “How does Bitcoin derive its worth?,” it creates uncertainty, and they could become reluctant to go all in.

The question of the value of bitcoin is very general and multifaceted. There are two ways to explain this. One is the traditional way, which describes bitcoin’s value in terms of the power that goes into mining. 

But here I want to touch the other side of the coin. The side that is not discussed as often. And that has to do with our current financial system. 

Elon Musk has already said that cryptocurrencies will be the media of exchange on Mars. But even if we stick to Earth, Bitcoin is a disruptor. It has all the ingredients that are required to let it go on and become the future “currency” of the world. 

While our financial system is failing us, Bitcoin is providing solutions to all the problems we are facing in our monetary system. In essence, Bitcoin’s value really comes from the worthlessness of our current financial system..

The Evolution Of The Monetary System

After the barter system, historically, gold has always been used as a medium of exchange. But because gold is not portable, as time passed, we established the currency system. We decided that we would print papers and assign value to them so that every piece of paper would be backed by a certain amount of gold.

As such, we could print currency only if we had an equivalent amount of gold in reserve. In this way, we established a portable exchange system with gold still being the actual medium.

As the sphere of influence of the United States grew bigger, slowly the monetary system evolved in a way that all the currencies in the world were fixated to the dollar. But the dollar was still backed by gold. So, at its core, it was still the same thing.

The biggest blow to our financial system came when, in 1971, U.S. President Richard Nixon announced that the United States dollar was no longer going to be backed by gold. It is as if he pulled the rug from under the financial system. All of a sudden, every currency in the world was no longer backed by anything. 

Were they even currencies anymore? Or just pieces of paper? Regardless, this gave rise to our current financial system, the fiat monetary system.

The Fiat Financial System

So, our current fiat monetary system is not backed by anything. This is a problem on so many different levels.

In the case of Bitcoin, at least, its value can be explained in terms of the mining power contributed to the network. But here, there is no actual explanation really. The only reason that a piece of paper has value is because the government enforces it.

Photo by Annie Spratt on Unplash

Now, because the fiat system is not backed by anything, this means that there is no real limit on the amount of money that the Federal Reserve can print.

When you keep printing currency (as we have seen during the COVID-19 pandemic response), it is as if you are robbing people of their money. The more you increase the supply of the money, the more it takes from the purchasing power of money that was already in circulation. This leads to inflation. So now, people have to pay more of their money to get the same thing, and that is due to no fault of their own.

Another huge problem with our current financial system is that it is being regulated by the central bank. The central bank is the actual authority behind the transactions. 

When you see all of these people, and hell, even countries, get sanctioned, they lose access to their money. Have you ever thought about that? Have you realized that in the current financial system, people do not really own their money?

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So, you can work for sixty years, earn a decent amount of savings — but at any point, the central bank can decide that, for one reason or the other, you are no longer eligible for the benefits of your years of hard work. I’m not saying that this will happen, all I am saying is that there is definitely a possibility that it can happen.

Bitcoin: A Solution?

Now that we understand the monetary system, the next question is: How does Bitcoin solve any of these problems?

Let’s go first to the inflation rate. Unlike the unlimited printing of fiat currency, the total supply of bitcoin is capped at 21million. Bitcoin has a reducing rate of inflation, and as soon as the last bitcoin is mined in 2140, the rate of inflation will reach zero. You would no longer be able to create a bitcoin. So, that pretty much takes care of the inflation problem.

Next is the question of the third-party authority. When you transfer money in the current system, it is the banks that actually perform this transfer. They literally update numbers within the two accounts involved in the transfer, subtracting an amount from one and adding it to another. Yes, it is this simple. But then the question remains, how can you do business with people without any authority actually actioning those transactions?

This is where the beauty of Bitcoin comes into play! Bitcoin is a peer-to-peer network. When you do a certain transaction on Bitcoin, the blockchain is updated by all of your peers. It means everyone is an authority in the Bitcoin blockchain. So, if everyone is an authority, that means, technically, no one is the single authority. That is why we never have to worry about central bank regulations when it comes to Bitcoin.

To boil it down, on one side, we have a financial system, which is leading to an insane amount of inflation. A system which is backed by nothing. A system that is completely controlled by a central authority. On the other side, you have a system that has almost no inflation, a peer-to-peer network that has no central authority, and the cherry on the top is that the fees are significantly less in Bitcoin when compared to our current fiat system. 

Too Long, Didn’t Read (TLDR)

Bitcoin was the best performing asset of the last decade. However, unfortunately, due to the presence of “weak hands” in the crypto community, institutions and principal investors still tend to be more cautious when it comes to investing in bitcoin. They do not really understand how bitcoin is valued. The value of bitcoin actually comes from the worthlessness of our current financial system. The current financial system is doomed to collapse. The currencies of the world are pegged to the dollar and the dollar is not tied to anything. As a result, there is really no limit to the amount of money that the Federal Reserve can print. This is like robbing the people of their money. It reduces purchasing power of the money that was already in circulation and as a result, causes inflation. 

Adding to this, a third party like a central bank has the actual control of your money. So, in our current financial system, your money is not really yours. Therefore, the system is bound to crash sooner or later. The solution is something that has no inflation. The answer is a peer-to-peer network without any third party. The answer is Bitcoin. And once Bitcoin starts taking over as a currency, its value will rise tremendously. That’s why it’s still one of the most undervalued assets of our time.

This is a guest post by Fahim Ahmadi. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Source: https://bitcoinmagazine.com/articles/why-bitcoin-is-one-of-the-most-undervalued-assets-in-2021?utm_source=rss&utm_medium=rss&utm_campaign=why-bitcoin-is-one-of-the-most-undervalued-assets-in-2021

Blockchain

Ledger Live Adds Self-Custody Staking for Polkadot (DOT)

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The popular hardware wallet provider, Ledger, will add Polkadot to its wide variety of supported tokens as of March 4th. Additionally, Ledger will also enable users to stake DOT coins directly on the platform, thus increasing the total number of staking options to five.

Ledger Adds Polkadot and DOT Staking

Founded in 2014, Ledger is a digital asset wallet provider describing itself as the “global leader in security and infrastructure solutions for safeguarding critical” cryptocurrencies. In a press release shared with CryptoPotato, the company announced plans to add another blockchain project with its own cryptocurrency to the Ledger ecosystem – Polkadot (DOT).

The statement reads that the wallet provider will support Polkadot in its software application and will add it to Ledger Live – the mobile application working in parallel to the Ledger hardware wallet. Apart from storing crypto assets, Ledger Live also enables users to follow and manage the holdings even if the wallet is nowhere nearby.

Polkadot’s native digital asset – DOT – will become just the fifth coin that Ledger Live users can deploy for staking. According to the announcement, the mobile application “offers the most secure way to manage and stake DOT tokens as the private keys are stored on a dedicated hardware device that is not connected to the Internet.”

The installing process will be simplified as users need to install a designated Polkadot app on their respective devices, create a DOT account on Ledger Live, add the token to the bounded balance, nominate a validator, and confirm the information.

“Polkadot is one of the most promising projects in the entire crypto ecosystem, and we are happy to provide our users with additional options to earn rewards and participate in the expanding Polkadot ecosystem.” – commented Head of Coin Integration at Ledger – Fabrice Dautriat.

Ledger spokesperson told CryptoPotato that the integration will be fully live starting from March 4th, 2021.

DOT Price and Staking Stats

DOT has been among the best price performers as of late. The asset entered the new year at about $8 but has taken full advantage of the bullish developments in the following months and even breached $40 for a new all-time high.

Despite retracing slightly during last week’s market crash, DOT is still 350% up YTD as it currently hovers above $36.

Additionally, the token is the second-most utilized coin for staking, per data from stakingrewards.com. With over $24 billion worth locked for staking, DOT trails only to Cardano (ADA) by $4 billion. About 64% of all DOT in circulation has been staked as of writing these lines.

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Source: https://cryptopotato.com/ledger-live-adds-self-custody-staking-for-polkadot-dot/

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Blockchain

Change of Heart: Shark Tank’s Kevin O’Leary Joins the Bitcoin Club With a 3% Allocation

Republished by Plato

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The growing in popularity “I changed my mind on bitcoin” club has another prominent representative. The Canadian businessman and star of Shark Tank, Kevin O’Leary, went from calling BTC garbage to allocating 3% of his portfolio in the asset.

O’Leary Has Bought Bitcoin

Born in Montreal, Canada, O’Leary is a popular businessman, author and is perhaps best known for his role in the reality TV show – Shark Tank. Also referred to as Mr. Wonderful, O’Leary recently announced his entrance into the bitcoin ecosystem.

Apart from allocating 3% of his portfolio in the primary cryptocurrency, the businessman also pledged to invest in BTC miners using clean energy to avoid “blood coins.”

Furthermore, O’Leary said that all companies he had invested in are currently examining the possibility of putting bitcoin on their balance sheets. He attributed this to “changes in the regulatory environment,” but he failed to provide details regarding their precise nature.

Another Change of Heart Moment

Prior to his 3% BTC allocation, O’Leary rarely had anything positive to say about the cryptocurrency. Just the opposite, he was openly bashing it.

Back in 2019 he O’Leary was predominantly negative on this “digital game” called bitcoin, which was “worthless” to him. He went even further by naming it a “useless currency” and “garbage because you can’t get in and out of it in large amounts.”

“Let’s say you want to buy a piece of real estate for $10 million in Switzerland. They want a guarantee that the value comes back to the US currency. You have to somehow hedge the risk of bitcoin. That means it’s not a real currency. That means the receiver is not willing to take the risk of the volatility it has. It’s worthless.”

Fast-forward to February 2021, he was still neglectful of BTC’s potential. O’Leary said he’s not against it and actually respected the asset but dismissed any chances of putting a lot of capital in it.

“No, I don’t want to own something that goes up and down 30% in a day or a week.” – O’Leary noted and added that bitcoin is “not backed by anything. It’s just backed by your faith.”

However, it seems now that this “worthless, not backed by anything digital game” has earned at least 3% of his investment portfolio.

With this change of heart, O’Leary has joined a prominent club with several similar examples. Names such as MicroStrategy’s Michael Saylor, CNBC’s Jim Cramer, and the former Fed Governor – Kevin Warsh.

Featured Image Courtesy of INC

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Source: https://cryptopotato.com/change-of-heart-shark-tanks-kevin-oleary-joins-the-bitcoin-club-with-a-3-allocation/

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Blockchain

FreeBitco.in purchases 3.75 billion FUN Tokens in a multi-million dollar deal

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Through a series of ventures, FreeBitco.in seeks to promote the mass adoption and utilization of FUN Token in the iGaming and Gaming spaces.

FreeBitco.in, one of the biggest Bitcoin iGaming websites in the world, has acquired the majority of FunFair’s remaining cold storage of FUN tokens, the native cryptocurrency of the FunFair gaming ecosystem. The cold storage holds 4.45 billion FUN Tokens and FreeBitco.in has acquired 3.75 billion tokens.

Through this acquisition, FreeBitco.in plans to invest in the token’s long-term development.

“Since 2013, FreeBitco.in’s goal has always been to provide online gaming enthusiasts with a frictionless, transparent, and truly fair experience,” said a statement by FreeBitco.in. “There’s no better fit than the FUN token to help us significantly enhance our efforts.”

The FUN Token

Since 2017, FunFair Technologies has been striving to deliver a guaranteed fair, decentralized gaming experience to the mass market through blockchain technology utilizing the FUN token.

FunFair team said in a statement: 

Despite several industry firsts and significant milestones in proving that use case, it has recently become apparent that FreeBitco.in has developed a different and superior use case for the FUN token.

This announcement refers to FreeBitco.in’s Premium Membership Program; a feature that incentivizes FreeBitco.in users to buy and hold FUN tokens for significant benefits. This activity has driven considerable volume into the token economy without the burden of significant on-chain transactions. According to the statement: 

There’s no doubt that FreeBitco.in’s customers are currently generating the bulk of FUN token commercial activity rather than FunFair’s customers.

With this in mind and for the token economy to maintain its recent success, FunFair has agreed to sell the majority of their FUN token holdings to FreeBitco.in.

FUN is an ERC20 token listed on major exchanges Binance, BitFinex, HitBTC, Changelly, and OKEx, as well as decentralized exchanges like Uniswap.

FreeBitco.in’s Vision for FUN

FreeBitco.in aspires to grow the FUN token as an independent entity through a series of upcoming projects.

Our sole objective, as of now, is to work to increase FUN’s utility and value,” the FreeBitco.in. team said. “We’re thoroughly committed to its long-term growth.

Accordingly, FreeBitco.in is preparing to undertake the following initiatives:

  • Strategic Burning of Tokens: FreeBitco.in plans to invest a substantial portion of its bottom line into strategically acquiring and burning FUN tokens to elevate their value over time.
  • Improving Liquidity: FreeBitco.in is working on increasing FUN’s liquidity across all markets, thus making it easily accessible and tradeable. This is evidenced by a cumulative influx of $3 million in the FUN/ETH and FUN/USDC trading pairs on Uniswap recently, and other exchanges are set to follow.
  • New Blockchain: Based on the Ethereum blockchain, FUN prided itself on being fast, open, and secure. However, the growth of DeFi on Ethereum has been pushing gas prices up for many months, making the adoption of FUN too expensive for users. FreeBitco.in is actively exploring opportunities to port the FUN Token to a new blockchain that is faster and cheaper.
  • Dedicated Wallet: FreeBitco.in is working on creating a dedicated wallet for FUN users that can operate seamlessly between different iGaming platforms. The wallet would also help users convert their FUN tokens into multiple crypto and fiat currencies.
  • Proactive Development: FreeBitco.in is assembling a development team to build innovative, consumer-facing apps based around the FUN token, thus creating more use cases, strengthening utility, and promoting adoption.
  • Creating Effective Partnerships: FreeBitco.in seeks to build productive partnerships and affiliations with other iGaming entities to promote FUN’s identity as a transactional currency in online gambling.

Note: This is not a partnership between the two organizations, namely FreeBitco.in and FunFair Technologies. The aforementioned acquisition and venture is at the sole discretion of FreeBitco.in.

About FreeBitco.in

Founded in 2013, FreeBitco.in is one of the largest crypto-gaming websites and the seventh-largest online casino in the world (Source: SimilarWeb). FreeBitco.in was created to promote Bitcoin’s utility and facilitate its adoption. However, it has grown by leaps and bounds since then.

Powered by a fully automated, proprietary tech-stack, FreeBitco.in features a simple but powerful HI-LO Dice Game supplemented by contests, rewards, jackpots, and a popular Lamborghini giveaway.

With 41 million users, 52 million monthly visits, and a $600 million-per-annum wagering volume, its influence on the Bitcoin community is significant.

Useful Links

Official FUN Token Website: https://funtoken.io

Official FreeBitco.in Website: https://freebitco.in

Twitter: https://twitter.com/FUNtoken_io

Telegram Channel: https://t.me/officialFUNToken_channel

Telegram Chat: https://t.me/officialFUNToken

Reddit: https://www.reddit.com/user/FUN_token

Discord: https://discord.gg/e7vfgKbEKU

Disclaimer: This article is a paid post and must not be considered as news/advice. 


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Source: https://ambcrypto.com/freebitco-in-purchases-3-75-billion-fun-tokens-in-a-multi-million-dollar-deal

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