Anthony Pompliano, the Founder of Morgan Creek Digital Assets and Ari Paul, the CIO of Blocktower – one of the leading cryptocurrency firms, discussed about Bitcoin [BTC] and other cryptocurrencies surpassing the weakest fiat currency, in the latest episode of Off the Chain.
Pompliano started by speaking about Bitcoin and other cryptocurrencies already surpassing some of the fiat currencies in the world. He stated that despite digital currencies hitting one of the bottom levels, it can be considered as progress to “some degree”, as long as it moves up the chart over time. He said:
“[…] It’s [Bitcoin] not attacking the developed world’s currency. It’s not going after the US dollar or the Euro, it’s going after the weakest [currency] and it’s kind of killing those off our surpassing them in places like Venezuela and etc. And I think we’ve gotten to see more of those weak currencies die off over time but really, why is that happening? Is it because people are opting it, is this idea that it’s better severed to some degree, whatever they are trying to accomplish.”
Following this, Paul remarked that this is connected with a different use case, stating that with Bitcoin, there’s an ability to “flee with your money”, adding that it potentially kills off currencies. He cited the example of Zimbabwe and Venezuela, wherein the currency is being much more widely adopted than any other country in the world, percentage-wise. He said:
“And that’s the depreciation resistant use case. Which if you’re if you’re US dollars are being inflated away 3% per year, there’s much pressure, if it’s 100% a year or 500% a year. That’s that’s a real good incentive to look for alternatives. So definitely the weakest currencies are the ones where there’s the most pressure for people to learn how to Bitcoin”
Earlier this year, the Founder was in the spotlight because of a bet, now referred to as the Buffet Bet 2.0. Anthony Pompliano is betting $1 million on cryptocurrencies outperforming S&P 500 index funds in a timeframe of 10 years.
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LocalBitcoins see steady trading volume in Russian Ruble following cash-trades exodus
LocalBitcoins, the Finland-based peer to peer cryptocurrency exchange, announced earlier this month that trading in a country’s national fiat currency will be disallowed, leading many in the community to believe that countries not on the frontlines of the digital asset world would be hit the hardest. Three weeks on, some defiant trends have been noticed.
According to CoinDance, the weekly LocalBitcoins chart revealed that the Russian Ruble [RUB] recorded towering volumes, even after the June 1 cash-exodus announcement. With many expecting a drop in volume, other top countries have also seen the absence of an immediate plummet, with Moscow being the stand-out.
The first week of June saw a notable high of RUB 1,174 million in volume owing to the native currency, while the aftershock of the announcement dropped the same down by to RUB 1,104 million by the second week. The next two weeks saw the volume surge back to its May 2019 heights, with the week beginning on June 22 recording a volume of RUB 1,188 million in volume.
On the basis of the above data, Russia is indeed a positive LocalBitcoins market.
The Finnish exchange has also been popular in South America, with its weekly volumes doing exceedingly well in the markets of Colombia, Venezuela, Peru, Chile, and Argentina, with Brazil, the only Latin American country left-out.
Buenos Aries saw its weekly volume from the initial weeks of June to mid-June drop from $13.71 million to $10.53 million, following the cash-removal announcement. In terms of the Colombian Peso, CoinDance stated that the number for the same was $9.98 billion towards the close of May 2018, and dropped to $7.16 billion by the first week of June. However, the same has since stabilized to stand at $9.2 billion.
LocalBitcoins began mulling the possibility of phasing out fiat currency trades following its inclusion under the supervision of Finland’s financial watchdog, the Financial Supervisory Authority [FSA] in March 2019. This inclusion was made days after Finnish legislators stated that cryptocurrency-based assets would be given legal status under the law. However, the act will officially come into force later in November 2019.
Additionally, several changes were made to the country’s Anti Money Laundering [AML] laws and Countering Financial Terrorism Act [CTF], which would require the exchange to follow the stated guidelines.
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