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Express Tribune
13-04-2025
- Business
- Express Tribune
The crypto gold rush
Last month, President Donald Trump announced the creation of a strategic reserve of five major cryptocurrencies — Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL) and Cardano (ADA) — for the United States, sending shockwaves through global financial markets and causing the prices of the digital tokens to soar. 'A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA,' he said in a post on Truth Social on March 2. 'I will make sure the US is the Crypto Capital of the World. We are MAKING AMERICA GREAT AGAIN!' This unprecedented move marks a significant departure from traditional monetary policies, signalling a bold embrace of digital assets as a core component of the US financial system. By integrating cryptocurrencies into national reserves, the US government acknowledges the growing influence of decentralised finance (DeFi) and blockchain technology, further legitimising digital currencies as valuable assets alongside traditional reserves like gold and foreign currencies. The decision has sparked intense debates across political, financial, and technological circles. Supporters argue that incorporating cryptocurrencies into national reserves could enhance financial stability, hedge against inflation, and position the US as a leader in the digital economy. Given Bitcoin's status as "digital gold," its inclusion could serve as a store of value, while Ethereum's smart contract functionality opens avenues for blockchain-driven government initiatives. XRP's focus on cross-border payments, Solana's high-speed transactions, and Cardano's emphasis on sustainability add further strategic value to the selection. However, critics warn of potential risks, including the volatility of cryptocurrencies, regulatory challenges, and security concerns related to hacking and cyber threats. The move also raises questions about the broader implications for the global financial system, especially regarding the dominance of the US dollar. As the world watches closely, this historic policy shift could redefine the role of digital assets in mainstream economies and set a precedent for other nations considering similar initiatives. Markets responded with an immediate surge in cryptocurrency prices as investors absorbed the news. Bitcoin spiked by over 10 per cent, briefly surpassing the $93,000 mark before stabilising at around $90,000. Ethereum recorded a 12 per cent surge, further strengthening its position in the market, while XRP experienced an 18 per cent increase, peaking at $2.63 before settling at $2.47. Solana gained 13 per cent, reaching $159.75, and Cardano surged by an astonishing 48 per cent, climbing to $0.96. However, the volatility of the crypto market remained evident as prices fluctuated following the initial surge, reflecting investor uncertainty about the long-term implications of this bold policy shift. Governments worldwide have long been sceptical about cryptocurrencies due to their volatility and association with illegal activities. Trump's decision marks a significant departure from traditional US financial policy and could be driven by multiple factors. One key motivation is hedging against inflation; unlike fiat currencies, cryptocurrencies have a limited supply, making them an attractive safeguard against inflationary pressures. Another major factor is competition with China, which has aggressively promoted its own digital currency, the digital Yuan, to gain dominance in global trade. The US may be looking to counter this by integrating cryptocurrencies into its financial strategy. Additionally, blockchain technology has the potential to modernise financial systems, and Trump's move could position the US as a global leader in digital finance. While crypto enthusiasts have welcomed this development, the move presents significant risks and challenges. Regulatory uncertainty looms large, as the US government has struggled to regulate cryptocurrencies. The Securities and Exchange Commission (SEC) has frequently cracked down on crypto firms, leading to legal battles and market instability. Cybersecurity threats also pose a major concern, with cryptocurrency exchanges and wallets being prime targets for hackers — over $3.8 billion was stolen from crypto platforms in 2022 alone. Furthermore, the inherent volatility of cryptocurrencies makes them riskier than traditional reserve assets such as gold or foreign currencies. Trump's decision has sparked diverse reactions worldwide. El Salvador, which previously made Bitcoin legal tender, has welcomed the US decision, seeing it as validation of its own crypto-friendly policies. The European Union, however, has expressed concerns, warning that adding crypto to national reserves could destabilise the economy and lead to financial uncertainties. Meanwhile, China has harshly criticised the move, calling it "reckless" and accusing the US of attempting to undermine the digital Yuan's influence in global markets. For Pakistan, this policy shift could have significant implications for cryptocurrency regulation and adoption. A growing number of Pakistanis actively trade cryptocurrencies through peer-to-peer (P2P) platforms and offshore exchanges. If international acceptance of digital assets accelerates, Pakistani investors and businesses could benefit from a more open regulatory environment. A well-regulated crypto market could attract foreign investments, facilitate remittances, and provide new avenues for wealth generation, particularly for freelancers and tech entrepreneurs who rely on digital payments. As the global financial landscape evolves, Pakistan may need to introduce a structured legal framework to govern cryptocurrency transactions. This could include licensing crypto exchanges, implementing Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, and ensuring compliance with international financial regulations. A balanced regulatory approach could help Pakistan curb illicit financial activities while enabling innovation in fintech and blockchain applications. While cryptocurrency adoption offers economic opportunities, it also introduces risks. Cryptocurrencies can be exploited for illicit activities such as money laundering, terror financing, and cybercrimes. If Pakistan decides to embrace digital assets, the government would need to implement strict oversight measures, including blockchain monitoring, cybersecurity enhancements, and collaboration with international agencies to track suspicious transactions. Trump's decision to integrate cryptocurrencies into national reserves marks a significant shift in financial policy that could reshape the global economy. While this move has the potential to position the US as a leader in digital financial innovation, concerns about regulation, security, and volatility remain substantial obstacles. Regardless of whether Trump's initiative turns out to be a brilliant financial strategy or a risky experiment, one thing is clear: cryptocurrencies are no longer a niche asset; they are becoming an integral part of mainstream finance. Ayaz Hussain Abbasi is a researcher and PhD scholar in the field cyber security and cybercrime All facts and information are the sole responsibility of the writer
Yahoo
05-04-2025
- Business
- Yahoo
Will bitcoin hit $125,000 this year? Yahoo Finance readers have their say
Bitcoin (BTC-USD) rallied at the start of the week, after US president Donald Trump revealed that the digital token and four other cryptocurrencies would form part of a US strategic reserve. The price of bitcoin (BTC-USD) surged to $93,658 on Monday, with ether (ETH-USD), solana (SOL-USD), XRP (XRP-USD) and cardano (ADA-USD) also rising, after Trump said in a social media post on Sunday that these five cryptocurrencies would be included in the stockpile. Trump said he had signed an order that "directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA". On Thursday night, Trump then authorised the creation of a strategic bitcoin reserve and a separate US stockpile of other digital assets. This came ahead of the White House Crypto Summit on Friday, where the US government is expected to unveil new cryptocurrency policy initiatives. Trump and key administration officials are set to meet with cryptocurrency industry leaders to discuss the future of digital assets and potential regulatory frameworks. Since Monday's rally, the bitcoin (BTC-USD) price has fluctuated and was trading at $91,070 on Friday afternoon. Russ Mould, investment director at AJ Bell, said that "sceptics will argue that holders' desire for regulatory recognition and government approbation runs strongly counter to the initial ethos of bitcoin (BTC-USD) and crypto, namely that it was outside 'the system'. As a result, no-coiners will also continue to ask what purpose crypto can serve and problems it can solve, if it is simply another tool for government or financial market speculation." He said that one challenge for those bullish on bitcoin (BTC-USD) was news flow. "Everything they could have hoped for upon Trump's victory has happened and even rampant buying by Michael Saylor's MicroStrategy (MSTR) is not proving enough to fend off the latest price swoon, at least as yet," Mould added. We asked Yahoo Finance UK readers in a poll if they thought that bitcoin (BTC-USD) could hit $125,000 this year. We received 523 votes, with 42% of respondents believing it could reach this level, though 48% disagreed and 10% were undecided on the matter. Read more: European Central Bank cuts interest rates to 2.5% The lenders offering sub-4% fixed mortgage rates Bitcoin price rises ahead of Trump crypto summitSign in to access your portfolio
Asia Times
14-03-2025
- Business
- Asia Times
New research on crypto shows an insider group influences its value
United States President Donald Trump recently announced the US would establish a strategic cryptocurrency reserve of Bitcoin, Ether, Ripple, Solana and Cardano. This move, he said, would make the US 'the crypto capital of the world.' Once a vocal crypto-skeptic, Trump now frames his support as an embrace of technologies that champion freedom and innovation. However, the problem with Trump's view is that it assumes crypto will lead to the elimination of financial intermediaries. By replacing trust with transparency, cryptocurrency promises to put individuals in charge of their monetary transactions. Our research demonstrates that this is only a partial view. In reality, crypto is dependent on social practices behind the technology. Crypto-believers often blame greedy financiers as the cause of the Great Recession in 2008. But we argue that crypto is not immune to these same risks. A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA. I will make sure the U.S. is the Crypto Capital of the World. We are MAKING AMERICA GREAT AGAIN! And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum! @RealDonald trump on truth social march 2, 2025 Replacing trust with transparency Cryptocurrencies are a type of digital money that trades on a blockchain. A blockchain is a decentralized ledger technology that allows users to trade pseudo-anonymously. Public blockchains operate on a distributed peer-to-peer network. This network provides each user a complete record of transactions that is updated in real time. Users can send digital cash between themselves without relying on a centralized authority. Since each user has a full record of transactions, the system promises full transparency. But our research demonstrates that public blockchains, and the cryptocurrencies that run on them, do not actually replace trust with transparency. Speculation, manipulation and market crashes remain very real dangers, regardless of whether the financial system is centralized or decentralized. Image: Wikimedia Commons Cryptocurrencies rely on people We studied the communications between the founder of Bitcoin, Satoshi Nakamoto, and the early Bitcoin community. We found the development and implementation of cryptocurrencies relies on negotiations between individuals. Who has a final say on which line of code will prevail depends on a social hierarchy dominated by insiders. Centralization of power in the hands of insiders is still a major issue in the cryptocurrency space. This is particularly an issue for emerging cryptocurrencies like memecoins. Memecoins are a type of cryptocurrency named after internet memes or similar jokes. They draw their value entirely from speculation. The Trump Organization recently launched memecoins $TRUMP and $MELANIA. The US Securities and Exchange Commission has concluded that memecoins do not qualify as securities, and therefore are outside its regulatory purview. Not only are memecoins risky, but they come with a significant risk of insider trading. A recent case study on the memecoin $LIBRA shows how influencers, anonymous developers and centralized exchanges facilitate market distortions, often at the expense of retail investors. When cryptocurrencies are outside the scope of regulation, individuals behind the technology can profit from insider information. This is less of a risk with widely traded cryptocurrencies like Ether and Bitcoin, but investors should be aware that any technology is reliant on the people who design the code and regulate its changes. Personal views towards privacy, for instance, can impact governance decisions. These beliefs can have important implications for the value and usability of any technology, cryptocurrencies included. Talking crypto into reality Our research suggests cryptocurrency insiders can artificially inflate the value of their coins by talking them up, effectively creating value out of nothing. By using economic and accounting language to describe Bitcoin, the early Bitcoin community effectively turned a string of zeroes and ones into something that could be measured, valued and recognized. Economists argue that even fiat currency is backed by a type of belief — trust in institutions. Bitcoin, too, relies on belief, but a different kind. Its value is based users' collective confidence in the technology and security of the network, a phenomenon known as the network effect. As more people adopt Bitcoin, its perceived value rises, creating a self-sustaining cycle of belief and value based on market demand. Following the announcement of the strategic crypto reserve, American stockbroker and anti-crypto advocate Peter Schiff accused Trump of manipulating the cryptocurrency market. Schiff has called for a congressional investigation into Trump and his team to determine who may have profited from the announcement, which triggered a massive increase in crypto prices. Given the volatility of cryptocurrencies, their values are highly susceptible to herd behaviour, and public sentiment has a significant effect on cryptocurrency returns. Where does this leave investors? Our research and other studies like it have shown that cryptocurrency is subject to important value changes based on announcements by a small group of influential individuals. We caution anyone interested in investing in crypto to do the homework by examining the underlying economics of a coin, getting to know the team behind it and evaluating their risk tolerance before moving forward. With thousands of cryptocurrencies in circulation, distinguishing between a promising investment, a speculative gamble or even scams is crucial. Despite the uncertain and unpredictable nature of digital assets, one thing is certain: the conversation around crypto is far from over. Erica Pimentel is an assistant professor in the Smith School of Business, Queen's University, Ontario, and Mélissa Fortin is an assistant professor at Université du Québec à Montréal (UQAM). This article is republished from The Conversation under a Creative Commons license. Read the original article.
Yahoo
07-03-2025
- Business
- Yahoo
Will bitcoin hit $125,000 this year? Yahoo Finance readers have their say
Bitcoin (BTC-USD) rallied at the start of the week, after US president Donald Trump revealed that the digital token and four other cryptocurrencies would form part of a US strategic reserve. The price of bitcoin (BTC-USD) surged to $93,658 on Monday, with ether (ETH-USD), solana (SOL-USD), XRP (XRP-USD) and cardano (ADA-USD) also rising, after Trump said in a social media post on Sunday that these five cryptocurrencies would be included in the stockpile. Trump said he had signed an order that "directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA". On Thursday night, Trump then authorised the creation of a strategic bitcoin reserve and a separate US stockpile of other digital assets. This came ahead of the White House Crypto Summit on Friday, where the US government is expected to unveil new cryptocurrency policy initiatives. Trump and key administration officials are set to meet with cryptocurrency industry leaders to discuss the future of digital assets and potential regulatory frameworks. Since Monday's rally, the bitcoin (BTC-USD) price has fluctuated and was trading at $91,070 on Friday afternoon. Russ Mould, investment director at AJ Bell, said that "sceptics will argue that holders' desire for regulatory recognition and government approbation runs strongly counter to the initial ethos of bitcoin (BTC-USD) and crypto, namely that it was outside 'the system'. As a result, no-coiners will also continue to ask what purpose crypto can serve and problems it can solve, if it is simply another tool for government or financial market speculation." He said that one challenge for those bullish on bitcoin (BTC-USD) was news flow. "Everything they could have hoped for upon Trump's victory has happened and even rampant buying by Michael Saylor's MicroStrategy (MSTR) is not proving enough to fend off the latest price swoon, at least as yet," Mould added. We asked Yahoo Finance UK readers in a poll if they thought that bitcoin (BTC-USD) could hit $125,000 this year. We received 523 votes, with 42% of respondents believing it could reach this level, though 48% disagreed and 10% were undecided on the matter. Read more: European Central Bank cuts interest rates to 2.5% The lenders offering sub-4% fixed mortgage rates Bitcoin price rises ahead of Trump crypto summitSign in to access your portfolio
Yahoo
07-03-2025
- Business
- Yahoo
Why Coinbase (COIN) and MicroStrategy (MSTR) Are Advancing Today
Coinbase (COIN) and MicroStrategy (MSTR) are climbing 1.5% and 2%, respectively, today after President Donald Trump provided some details on America's upcoming crypto strategic reserve yesterday. Trump's Statements on the Crypto Strategic Reserve In the wake of Trump's executive order on the reserve, issued in January, the U.S. intends to stockpile five cryptocurrencies, the president indicated. Image Courtesy of Coinbase Specifically, Trump reported that the order "directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP (XRP-USD), Solana (SOL-USD), and Cardano (ADA-USD)." He added that "obviously" Bitcoin (BTC-USD) and Ethereum (ETH-USD) "as other valuable Cryptocurrencies, will be at the heart of the Reserve." Trump added, "I also love Bitcoin and Ethereum." Cryptos, COIN, and MSTR Are Well Off Their Highs Since reaching their recent highs yesterday soon after Trump's statements, cryptos have dropped significantly. For example, shortly before 11 am ET, Bitcoin had retreated to $90,680 from its Sunday high of slightly over $95,000, while ether was changing hands for around $2,300, well off yesterday's high of about $2,530. COIN stock was trading around $219, versus its high for the day of $233.40 and MSTR was at $260.50, versus its daily high of $295.10. While we acknowledge the potential of MSTR, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock Disclosure: The author is shorting COIN and has put options on the stock but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey. Sign in to access your portfolio
