The Weekly Flip Thru — the newsletter that breaks down everything you need to know about crypto each week. We make the complex simple and the simple insightful!
This week: Crypto markets take off, central banks consider digital currencies, and CoinFlip gives thanks.
It’s the time of year where we reflect on our gratitude. Despite the difficulties this year has presented, CoinFlip has many reasons to be grateful. Since this time last year, we have increased our Bitcoin ATM network by more than 800 ATMs and counting, and we’ve expanded our team by more than 100 new employees.
We know this year has been challenging, but we couldn’t have done it without you. Thank you endlessly for your continued support!
*Valid November 26–27,2020*
Here is to another great year for CoinFlip 🥂
Bitcoin is blasting off in 3..2..1
What’s next for Bitcoin? It’s looking like crossing the $20,000 threshold is inevitable as demand by institutional investors increases. Demand has significantly increased after PayPal launched its crypto services. Prominent cryptocurrency and blockchain investment firm Panterra claims that PayPal has bought up to 70% of all newly mined bitcoin since the launch. Together, PayPal and Square’s Cash App have purchased more than 100% of all newly minted bitcoin.
The weakening US Dollar is another primary reason behind the transfer of value to Bitcoin — a strategist at Citigroup predicts the value of the US Dollar to drop by 20% next year. The value of the dollar has already decreased by 11% from its peak in March.
As a hedge against inflation, Bitcoin is living up to its reputation as digital gold. An executive at the world’s largest asset management company, BlackRock, made a statement on CNBC’s Squawk Box that Bitcoin could take the place of gold due to its durability and functionality. Analysts at Deutsche Bank made a statement claiming that investors increasingly prefer bitcoin over gold as a hedge against inflation.
Ethereum Rears Its Bullish Head
Bitcoin is not the only cryptocurrency experiencing bullishness. On Tuesday, Ethreeum was trading at $621.70 — a high that ether has not seen since June of 2018. The second-largest cryptocurrency is still well below its all-time high of $1,500 in January of 2018, but its price has increased by nearly 700% since March 2020.
Are you looking to learn more about Ethereum? Check out the latest post in our Cryptocurrency Explained series.
Are you looking to buy ether? Head to your closest CoinFlip ATM!
Are CBDCs the Wave of the Future?
At the recent forum on central banks, the Federal Reserve, European Central Bank, and Bank of England expressed optimism about launching central bank digital currencies (CBDCs). However, these plans are still very much in their infancy as the central bankers carefully analyze a digital monetary system’s impact.
Other countries have been faster to launch CBDCs. In February, Sweden began its digital currency pilot program, China has been testing its digital yuan since May, and Thailand announced it is using its CBDC to finance corporate transactions.
Are CBDCs the wave of the future? Deutsche Bank thinks so. Last week, they released a report stating that digital CBDCs will one day replace cash. The COVID-19 pandemic has accelerated the transition to digital payments. Deutsche Bank researchers think it is time for central banks to get the ball rolling.