Bitcoin Dips: A Major Setback or Great Buying Opportunity?
This week: Bitcoin’s price dip, crypto in politics, and how crypto developers are promoting global human rights. But first, let’s get into what’s happening with CoinFlip.
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NEW BLOG! Calling All Newcoiners
Do you have a friend or family member who has been asking you about buying Bitcoin, but doesn’t know where to start? Show them this Beginner’s Guide to Buying Crypto!
I put together a comprehensive resource with everything you need to know about buying cryptocurrency in this week’s Cryptocurrency Explained.
After a momentous couple of weeks, Bitcoin’s bull run has slowed down a bit. After failing to establish a foothold above $40k earlier this week, the price fell sharply, dropping as low as $30,411.60 on Monday. Since then, BTC was sitting comfortably around $34,000, until it broke $37,000 on Wednesday night.
Alongside the price-drop comes plenty of criticism against the cryptocurrency. The Financial Conduct Authority in the U.K. put out a statement urging its consumers to be wary of investing in crypto and prepare themselves to lose everything. However, I believe that the FCA’s take is a bit misleading, especially considering they used the word “scheme” to describe Bitcoin’s model.
I’m far from alone in these opinions. While many are speaking negatively about Bitcoin, just as many are piping up to sing its praises. The head-researcher at Goldman Sachs said in an interview with CNBC that Bitcoin is finally making its way as a mature asset class. He added that more institutional investment is necessary to establish itself in this way fully.
Speaking on behalf of myself and the rest of the CoinFlip team, we see dips are more of a great buying opportunity than a significant setback.
P.S. If you’re looking to buy the dip, the discount code from last week’s Flip Thru is still running! Head to your closest CoinFlip ATM through January 15th, and use code “CELEBRATE”* for 20% off transaction fees. Remember, you can use this code twice.
Find your closest CoinFlip ATM here!
How Bitcoin is Advancing Human Rights
Now onto some news that I find particularly interesting as someone whose graduate research focused on the intersection of fintech and human rights. The Human Rights Foundation, a non-profit organization that describes itself as promoting and protecting human rights globally, launched a Bitcoin Development Fund last year.
This fund is dedicated to funding and supporting open-source software developers who are making the Bitcoin network more private, decentralized, and resilient to better serve as a financial tool for human rights activists, civil society organizations, and journalists around the world.
“Given all of [it’s] attributes, Bitcoin can be a lifeline for human rights defenders, especially if its privacy and usability can be improved,” says HRF.
This week, they announced their latest list of awardees set to receive $25,000 grants. Here are some exciting projects they are currently funding:
- CoinSwap — This project, developed by Chris Belcher, a UK-based developer, aims to help overcome state and corporate financial surveillance by making it challenging to trace BTC transactions. Belcher is regarded as one of the world’s foremost experts in Bitcoin privacy.
- Specter Desktop — Run by Ben Kaufman, Specter Desktop aims to enhance the user-interface for Bitcoin Core, to make it easier for individuals to use Bitcoin securely and privately by running a full node and removing any reliance on third-party services.
- Lot49 — As part of Global Mesh Labs, Richard Myers, Fodé Diop, and Will Clark are working on Lot49, which sets out to make Bitcoin more usable in mobile-phone dependent areas with spotty internet connectivity, unstable currencies, and poor infrastructure.
Find more information about HRF’s Bitcoin Development Fund here, where you can also donate to the fund if you’re interested in supporting these projects.
If you’d like to learn more about cryptocurrency’s potential to advance human rights worldwide, I’ve written a couple of blog posts on the topic. Check out How Cryptocurrency Can Accelerate Financial Inclusion and How Cryptocurrency Can Empower Migrant Workers.
Crypto in Politics
According to news sources, the Biden administration is preparing to nominate Gary Gensler, a former financial regulator and Goldman Sachs banker, as head of the Securities and Exchange Commission. If nominated and confirmed, Gensler will take over an agency that is at the forefront of the U.S. government’s response to cryptocurrencies and blockchain technology.
What could the future of cryptocurrency look like with Gensler as the SEC head? As a former professor of digital money at M.I.T., Gensler may be uniquely positioned to address the task of formulating a clear framework for regulations on crypto and blockchain.
In 2018, he said that Bitcoin should remain exempt from securities regulation, but that Ether and Ripple have most likely been issued and traded in noncompliance with securities laws. Additionally, Gensler has a reputation for cracking down on cryptocurrency fraud, which has won him much praise in the past.
Only time will tell if and how Gensler will approach cryptocurrency. Still, I am hopeful that as someone who is very educated on digital currencies, he will make decisions in the industry’s best interest.
CoinFlip in the News
- Forecast: Investment In Financial Services Using Blockchain Poised For Growth in 2021 — Crunchbase News
- Bitcoin’s roller-coaster ride shows why people should be cautious before investing in cryptocurrency — CNBC
- Express Briefing: San Antonio’s wealth of Bitcoin ATMs — San Antonio Express News
- Crypto ATMs flood San Antonio — My San Antonio
- DeFi and DEX will be most affected by ‘misguided’ regulations: Weiss from CoinFlip — Explica
- The Future of Cryptocurrency — Supply & Demand Chain Executive
