Bitcoin Global News (BGN)
April 27, 2018 -- ADVFN Crypto NewsWire --
Mt. Gox is at it again. As of
yesterday, the still-bankrupt crypto-exchange that effectively
pioneered the space, reportedly moved $144 million
worth of Bitcoin, between two wallets.
Of course, rumors seem to abound
already as to what effect this move will have on the cryptocurrency
market. The original report was made at 6:26 PM, UK time and as of
9:36 UK time, most of the market, including Bitcoin, was still in
the green.
One reason for this might be the
fact that none of the Bitcoin has been sold as of yet. The last
time that Mt. Gox made such a move was between September 2017 and
March 2018, when its bankruptcy trustee, who is in charge of
clearing its debts, reportedly made the same transfer and then
offloaded $400 million
worth of Bitcoinand Bitcoin Cash.
In addition to this move, it should
also be remembered that in March, the same bankruptcy trustee
announced that he had roughly another $1.9
billion to get rid of. While this $144 million
could be a part of this, it’s really only a drop in an
ocean.
With this in mind, the argument
could be made for more
stablecoins. If you don’t already know, a stablecoin is
a cryptocurrency that is pegged to the value of a US dollar or
another relatively stable currency like the Euro. In this way, it
uses collateral and a relative level of liquidity as well as
certain algorithms to maintain a relatively constant
value.
If you want a good example of this,
look no further than Maker Dao’s, Dai
coin, which seems to consistently stay between 99 cents
and a dollar in value. Dai currently uses a pool of Ether as its
collateral though it plans to be backed by multiple currencies in
the near future.
Overall, the general idea behind
such coins is that a crypto-investor can stabilize his or her
portfolio with them to account for the high volatility of more
well-known cryptocurrencies like Bitcoin and Ethereum. Just like in
traditional investing, diversification is key.
Your overall risk is lower when you have a high percentage of
investments that can be considered stable.
Perhaps, if those who have gone
deep into Bitcoin were to do the same, then there would be less of
an uproar over every major, “dip,” in the market.
By: BGN Editorial Staff