Author: Jeremy Daniel
What a difference a week makes!
Last Friday, Bitcoin was hovering around the $30 000 mark and investors were nervously wondering if it was going to drop below that psychological barrier. By Tuesday the following week Bitcoin had touched $40 500 and, although it lost a bit of momentum, it still managed to close the week up by 20%.
Suddenly the news is turning bullish again. A scroll through the headlines reveals Bloomberg saying ‘Bitcoin is more likely to hit $60 000 than drop again,’ while the CEO of Digital Assets Data dropped the astonishing prediction that a single Bitcoin will be worth $1 million within the next 10 years.
The reasons for the rally were unclear, although there were strong rumours circulating that global giants Amazon were set to announce they would accept Bitcoin as a payment. That announcement didn’t happen but if it does, the upside will be tremendous and a game-changer.
It’s great to see such excitement in the market but a dose of caution should be a large part of your crypto diet, as too often we’ve seen the market prove everyone wrong.
In other news, Ripple and it’s digital asset XRP seemed to brush off the long-running SEC lawsuit when it announced a new On Demand Liquidity (ODL) corridor in Japan. ODL which used to be known as xRapid uses XRP as a bridge currency between two banks in order to remove the need for pre-funding using crypto liquidity. High transaction costs in normal banks have been identified as a key problem that XRP can solve and this is a great example of a real use case for cryptocurrency that should show no signs of slowing down.
It’s worth noting that XRP’s price has been depressed for some time thanks to the big, confusing lawsuit with the US Securities and Exchange Commission, but the rest of the world has just shrugged and continued to innovate with XRP and move the whole industry forward.
At Cape Crypto, we continue to innovate no matter what the price. Our goal remains to be the quickest and easiest way for South Africans to own a piece of this dynamic, growing market with the lowest trading fees in the whole country. Remember that you can spend as much or as little as you want to get started right now. If a coin does go up to a million dollars, wouldn’t you hate to know that you missed out on that opportunity.