Welcome to Kafycrypto, your number-one crypto news, and marketing channel. In this article, you will learn How Celsius Crypto Fomo Proved Irresistible To Finance Pros Too
Another day, another blowup in the hype-driven world of cryptocurrency lending.
And this time, there’s a cautionary tale in which even sophisticated bankers and pension funds succumbed to crypto’s Fear Of Missing Out (FOMO) in the unregulated world of “decentralized finance.”
The freezing of withdrawals, swaps, and transfers on Celsius Network Ltd.’s platform on Monday came just weeks after the $60 billion implosion of stablecoin Terra, and just a day after Celsius CEO Alex Mashinsky dismissed talk of halted withdrawals as “misinformation.”
Even before selling pressure hit DeFi platforms, regulators had been sounding the alarm on Celsius for some time. The platform, which claimed to have over $20 billion in crypto assets and 1 million customers in 2021, was hit by actions from several US states amid an investigation into whether interest-bearing crypto accounts violated securities laws.
Finance professionals were also drawn to Celsius crypto FOMO. Bitcoin’s volatility is low in comparison to traditional assets.
Bitcoin’s daily volatility is lower than gold (9-10%) and oil (15%). Even if bitcoin were priced in dollars rather than euros, the price would be 10% higher than it is now. In comparison, gold prices have nearly tripled since March 2011, while oil prices have nearly doubled. – According to Bloomberg 2. Its currency value remains high.
Celsius crypto FOMO proved irresistible to finance pros too
Bitcoin had a total market capitalization of $11 million in 2008. Bitcoin is worth nearly three times its original value, around $120 billion. This means that if bitcoin were valued in US dollars rather than Euros, it would be worth around $300 per coin. In comparison, the current market capitalization of gold is $8 trillion. – According to Bloomberg 3. It serves as a store of value.
The real question is not whether bitcoin will replace fiat money but how long it will take for people to become accustomed to using it. Humans have historically been slow to adopt alternative currencies. Most developed countries adopted the US dollar within 50 years of its inception. For cryptocurrencies, a similar timeframe appears likely. – According to Bloomberg 4. The BitLicense issued by New York State is superfluous.
Businesses dealing with virtual currencies, such as exchanges, wallet providers, payment processors, initial coin offering service providers, and cryptocurrency brokers, are subject to stringent regulations under New York State’s BitLicense. These rules, however, do not apply to businesses that sell goods and services. – According to Business Insider 5. Cryptocurrencies have a greater chance of disrupting other industries.
Cryptocurrencies may eventually displace other Home financial instruments, but for the time being, they have little impact. Digital currencies that use blockchain technology are an exception, as they could serve as platforms for new types of decentralized applications. – According to Reuters 6. No one believes banks anymore.
Many consumers, as previously stated, believe that traditional banking institutions no longer deserve their trust. Banks have repeatedly taken advantage of them. This is not the case with Bitcoin. – Bloomberg 7. Blockchain technology will revolutionize the world.
Blockchain technology is already changing businesses, from diamond tracking to intellectual property management. Some predict that it will alter how we trade and pay for goods. – CNBC 8. You most likely have bitcoins in your possession right now.
Bitcoin has emerged as the most well-known cryptocurrency, representing only a small portion of the total number of coins. – From the Wall Street Journal 9. Bitcoin is not yet anonymous…
Despite the hype, none of the cryptocurrencies provide anonymity. But that could change soon. – The New York Times 10 Virtual currencies are possibly here to stay.
Virtual currencies will likely remain popular because they allow users to convert hard currency into a digital asset without using a third party. As more governments recognize the value of these currencies, they will begin to regulate them as well. – The New York Times
The Crypto Mania Is Here
Bitcoin and cryptocurrency have gained popularity among investors in recent years due to their potential to revolutionize how money works around the world. Since then, a number of other cryptocurrencies have emerged. However, none of them have captured the attention of investors quite like Bitcoin. As a result, many people began investing in cryptocurrencies despite not knowing what they were doing.
Crypto FOMO Is Real
“FOMO” is an abbreviation for “Fear Of Missing Out,” It refers to the fear of missing out on something exciting. In this case, it’s a chance for some investors to quickly make a lot of money on the back of a rapidly rising cryptocurrency market.
Finance Pros Are Getting Involved Too
The appeal of digital currencies is no longer limited to day traders. Finance professionals are also becoming involved. According to Bloomberg data from June 2018, the interest of professional investors grew by 20% last year. These investors do not necessarily make investments themselves but help companies decide where to invest their funds.
Cryptocurrencies May Have Reached Their Peak
While the price of cryptocurrencies continues to rise, some experts believe it will soon reach a peak. After reaching a record high of nearly $800 billion in late December 2017, the total value of all cryptocurrencies fell by around $50 billion.
Why Do People Adore Cryptocurrencies?
Because of its decentralized nature, cryptocurrency enthusiasts adore their virtual currency. Unlike traditional fiat currencies, it does not belong to any country or central bank. As a result, there are no transaction limits, making it easier to transfer money overseas. In addition, compared to the United States, purchasing cryptos with credit cards take less time.
How to Make Money from These Trends
Despite the fact that cryptocurrencies are not yet legal tender, these trends can still be profitable. There are now a number of online trading platforms where investors can buy and sell cryptocurrencies. Many of them provide leverage, which means that the investor can borrow money to increase his or her investment, increasing the likelihood of a higher return.
Decentralization Will Be the Way of the Future
Several projects are already underway to develop blockchain technology. According to Gartner Inc. research, roughly half of the world’s major banks are currently testing blockchain-based solutions. Furthermore, IBM announced earlier this month that it was collaborating on the development of distributed ledgers with six global financial institutions.
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