Cryptocurrency News Now!: Hyperbitcoinization: New Report Finds Bitcoin Must Hit $213,000 to Replace U.S. Monetary Supply

Friday, August 3, 2018

Hyperbitcoinization: New Report Finds Bitcoin Must Hit $213,000 to Replace U.S. Monetary Supply

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MARKET

COIN	PRICE	24H

BTC	$7,399.293744	-2.17%

ETH	$413.468607	-0.04%

XRP	$0.43835	+1.19%

BCH	$715.719802	-4.4%

EOS	$7.104967	+1.3%

*Information as of 9:30 AM EST

RESEARCH

Hyperbitcoinization: New Report Finds Bitcoin Must Hit $213,000 to Replace U.S. Monetary Supply

HYPERBITCOINIZATION

Hyperbitcoinization is a cryptocurrency term used to describe the event in which Bitcoin reaches mass adoption
In this scenario, economists have theorized that price would exponentially increase due to the limited supply of Bitcoin

Obiwankenobit, a pseudo-anonymous author, described the hyperbitcoinization "tipping point":

"The cost of rejecting bitcoin will exceed the cost of adopting it. Bitcoin will begin to assume money’s traditional roles and gain institutional and government support. It will become all money and form the backbone of a new global economy."

$213,000 IS THE LUCKY NUMBER

Many bulls in the cryptocurrency space have thrown out massive predictions for Bitcoin assuming it reaches mass adoption such as Tim Draper's $250,000 per Bitcoin by 2022 and John McAfee's $1 million per Bitcoin by 2020
Now, according to research completed by the Union Bank of Switzerland (UBS) and released by Bloomberg, researchers concluded Bitcoin must hit $213,000 if it were to replace the entire U.S. monetary supply

UBS CONCLUSIONS

UBS did note that the price could be lower if Bitcoin "drastically" improved its "network processing capabilities"
UBS cited that Bitcoin can only handle a fraction of the amount of transaction volume Visa can and this causes the digital currency to have limited applications

To finish, UBS closed stating that Bitcoin does not have the attractive attributes currently that traditional currencies have if it were to replace the U.S. dollar:

"Our findings suggest that Bitcoin, in its current form, is too unstable and limited to become a viable means of payment for global transactions or a mainstream asset class."

NEWS

Mt. Gox Releases Basic Policy for Rehabilitation Plan, Looks to Pay Creditors in Bitcoin

The 2014 Mt. Gox hack has been a legal battle between shareholders, creditors, and the exchange for years now. To read about the largest Bitcoin hack to date, click here.

NEW PAYMENT PLAN

According to the new policy released yesterday, Mt. Gox holds about 166,000 Bitcoin, 168,000 Bitcoin Cash, and other various altcoins that could have a value of over $1.3 billion at the time of writing
Most significantly, the policy proposes that creditors of Mt. Gox will now be getting paid back in Bitcoin and Bitcoin Cash instead of cash
This means the mass amounts of Bitcoin won't be on sold on the open market like they were earlier this year when Mt. Gox wallet movement caused mass hysteria among investors and sent Bitcoin's price tumbling

OTHER PLAN DETAILS

In addition to the payment plan, the policy outlined more details regarding the rehabilitation plan. Here are some other plan details in a nutshell:

Only creditors will be distributed Mt. Gox assets, not shareholders
First payments to creditors are expected to start in May or June 2019
Mt. Gox must introduce systems to allow creditors to view their trading records
If new assets are discovered, an additional investigation and payment plan will take place
No sponsor will be selected unless it is advantageous to creditors

NEWS

Coinbase Releases New Plugin That Allows Millions of Online Stores to Accept Crypto

WOOCOMMERCE PLUGIN

According to a company blog post, Coinbase will now be offering a WooCommerce plugin to online store owners
This may not look like much at first, however, it is reported that over 28% of online stores on the internet utilize WooCommerce to run their business
WooCommerce has also confirmed that their software has been downloaded almost 50 million times

Coinbase closed its new announcement with a hopeful vision:

"This increased access will lead to more widespread adoption, and ultimately, moves us closer to our goal of an open financial system."

ENABLING ADOPTION

It is simple advancements like this that will push cryptocurrencies into the mainstream and enable growth
In the future, consumers will be using blockchain technology and cryptocurrencies without ever knowing
Mass adoption will come when crypto becomes less tech intensive and new user interfaces are developed so consumers can seamlessly interact with crypto

EXCHANGE

First Crypto Index Fund in Australia Launches

COINJAR

Australian cryptocurrency exchange CoinJar announced Thursday that it is launching an index fund
The index fund is called the CoinJar Digital Currency Fund and will have to different classes of indexes
The first class is the Bitcoin Class, which solely gives investors exposure to Bitcoin
Second is the Mixed Class which will be a market cap weighted index of BTC, ETH, XRP, and LTC

Jordan Michaelides, head of institutional at CoinJar, spoke on the new fund saying:

“Investing in cryptocurrency carries certain risks and can be an unnecessarily complex process. Traditionally, an individual investor in cryptocurrency has also been exposed to potential loss through cybercrime. We are launching the CoinJar Digital Currency Fund to handle the custody risks, simplify the investment process and provide industry best practice in security for wholesale investors.”

INSTITUTIONS ONLY

This product is for institutions only, you must be the Australian equivalent to an accredited investor to be able to invest in the fund
The minimum contribution is $50,000 initially and $10,000 after that
Funds like these are sometimes the only way for institutions to get into the game, because the exchange will handle custody of the coins, often because of regulatory reasons institutions can’t handle the coins

Loopring (LRC)
With Loopring, traders will have complete and total control of their crypto-assets. This means there is no need to go through the pesky and risky process of depositing money to centralized/custodial exchanges. Who needs that aggravation?!
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