- Biggest increase in Bitcoin for two weeks
- BlackRock and Cohen among investors looking at cryptocurrency
- Blockchain applications helping failing economies
The largest and best known cryptocurrency, Bitcoin has seen its biggest rise in two weeks.
The movement comes after news reports indicating that some of the largest names in investing are finally taking digital currencies seriously.
According to composite prices on Bloomberg, Bitcoin rose 3% to $6,371 on Monday morning in London. Bitcoin has not seen a one-day gain of this size since July 2nd.
The digital token has been hitting headlines over the past year or more for the size of returns made by early investors. Now it seems the momentum for Bitcoin appears to be gathering an even faster pace due to the rumored interest in cryptocurrencies from big name investors such as BlackRock and Cohen.
Rival digital coins are also benefiting from the latest wave of value increases. Ripple, Ethereum and Litecoin are all chasing Bitcoin’s tail as the next big thing on the cryptocurrency scene, and they have each climbed at least 2%.
All the different digital currencies are based on the Blockchain process which is having other more wide-ranging effects on financial markets.
The technology provides support for decentralized and anonymized tracking of transactions and, as such, can be applied to many other uses than alternative currencies.
Real estate, insurance, crowdfunding and general large-scale data management services are now all beginning to exploit the potential of Blockchain. However, failing economies and emerging nations are also starting to benefit from the application of Blockchain technology.
Paul Domjan, Global Head of Research, Analytics and Data at the investment bank Exotix, thinks that instead of Bitcoin and its rivals, emerging nations are the most likely areas of operations to see Blockchain leave its mark.
When it comes to the area of ownership recording, Domjan explains that frontier markets in Latin America, Sub-Saharan Africa, and South Asia lag far behind. He points out that as their average performance is less than half that of the best-performing economies, they are in pole position to benefit from Blockchain.
Mark Dummett, a researcher with Amnesty International, has also offered support for the integration of Blockchain into solving the problems which plague developing nations. “You have to be wary of technological solutions to problems that are also political and economic, but Blockchain may help. We’re not against it,” Dummett says.
Some examples of the way in which Blockchain applications might assist failing economies can be seen in the way that hyperinflation has prompted dramatic shortages of basic necessities and food in Venezuela. The use of Bitcoin and other cryptocurrencies could help ease the situation as its global usage and the relative ease of cross-border payments and transfers it offers could be a simple solution for local fiat money problems.
Haiti has a gross national income per capita of only $810 according to its most recent census. Now the Haitian government has suggested that Blockchain technology could be used to ensure the accurate registration of transactions like those involved in property deals. Voting and other vital aspects of bureaucratic necessities could also benefit.
Various companies and projects have discussed plans and potential applications based on the applications listed above, with implications for further investment in the technology.
Big name investors behind Bitcoin rise?
July 17, 2018|