Date: 25th October, 2021
Media: The Business Times
- What happened?
Bitcoin hit a historical record, surpassing it’s all time high «ATH» on wednesday 20. It made a huge amounts of money and was up 120 percent this year.
- Whom and where it affects?
It affects the entire cryptocurrency market, since bitcoin is the predominant currency and all follow in it’s footsteps. All those people who invest in crypto and hold it, have been involved in this bull run.
- What sort of public or private institutions are involved?
In the private sector, the Goldman Sachs, Inc. group, Bank of New York Mellon Corp. and Morgan Stanley, global leaders in investment banking, securities trading and investment management, stand out.
Among the best known are Facebook and Apple Inc. with their FAANG stocks listed on the Nasdaq.
- Why is it important for Banking and Finance?
For finance it can have a great positive impact, cryptocurrency as a “peer-to-peer version of electronic cash” that allows “online payments to be sent directly from one party to another without going through a financial institution.” but the same does not apply to banks since One of the responses to that crisis was). With its decentralized system and peer-to-peer technology, Bitcoin has the potential to dismantle a banking system in which a central authority is responsible for decisions that affect the economic fortunes of entire countries
- What do you think will be the consequences in the foreseeable future?
Among the biggest risks of investing in cryptocurrencies is their high volatility, as their prices vary abruptly over very short periods of time.In addition to its volatility, in the absence of regulations governing the cryptocurrency market, cryptocurrency exchanges are vulnerable to being hacked and/or targeted by other criminal activities. Finally, digital money has also raised questions in recent months because of the enormous amount of electricity used to mine the coins, and the consequent environmental impact it generates.