Will Bitcoin be fixed as an investment asset in the financial market? The affirmative emphasized that Bitcoin is becoming a “physical currency” and is no longer a “non-physical currency” that is ironically used as a basis for speculation.
On February 10th, MasterCard of the United States stated that it will introduce virtual currency settlement. The background is that “cryptocurrency has occupied an important position in the world of settlement.”
The U.S. payment platform, PayPal Holdings announced the launch of Bitcoin settlement. It is estimated that 29 million stores worldwide will support Bitcoin payments. In the stock market, Norihiro Fujito and others from the Mitsubishi UFJ Morgan Stanley Securities believe that “Bitcoin cannot be attributed to a lie in the bubble period (a flower that only blooms but does not bear fruit)”.
If Musk pulled the trigger for Bitcoin’s rise, then it was also Musk who caused the decline. “Seem high” affected by Musk’s tweet, Bitcoin fell by more than US$10,000 from its recent highest price.
Both Tesla’s stock price and Bitcoin have received capital inflows due to the “overcapacity” brought by monetary easing, and the relationship is very strong. In the context of Bitcoin’s decline, Tesla’s subsequent decline in share price is more prominent. The reason is that Tesla holds a huge amount of Bitcoin, and the performance risks have triggered vigilance. At present, the relationship between Tesla stock and Bitcoin is relatively weakened, but it may strengthen again.
The impact of Tesla stock on the entire U.S. stock market cannot be underestimated. Tesla is a constituent stock of the S&P 500 Index that was included in December 2020, and it ranks 7th in the total market capitalization. The sense of vigilance which believes in the Bitcoin’s plunge will cause Tesla’s stock price to fall may pull down the S&P 500 index.
The inefficiency of Bitcoin has also been criticized. For example, environmental burdens such as consuming large amounts of electricity. This can be seen in the operation of mining Bitcoin (mining). It is necessary to check whether the transaction data of the virtual currency is appropriate and being approved, and record the transaction status.
In this process, many calculation works are required, so a large amount of electricity is consumed and the electronic components that make up the computer emit a lot of carbon dioxide. Statistics from the information website, Diginomics show that the yearly electricity consumed due to Bitcoin “mining” is equivalent to the electricity consumption of the entire country of Chile, while the amount of e-waste is equivalent to the amount used in Luxembourg.
The burden of the environment is being questioned by young people who previously supported Bitcoin. This is because the environmental burden conflicts with ESG (environmental, social, and corporate governance) values that are also valued by young people. A Canadian man in his 30s who has invested in Bitcoin since 2013 learned about the large power consumption of mining, and he said that “Bitcoin has no contribution to society”. Thus, he sold them all.
There have been trends to improve the above-mentioned situation. DeCurret, a virtual currency exchange company under Japan’s IIJ, has been selling special mining equipment since March. It has proposed a policy of “cooperating with miners using hydroelectric power” (Katsuya Konno of DeCurret). The ESG may become a new topic for Bitcoin investment.
Since NGK released the white paper, it has issued STO through the U.S. Securities and Exchange Commission. The NGK blockchain has underlying layer, official website, browser, wallet, computing power APP and other related facilities. It has completed the mainnet internal test to the initial block producer election, the blockchain code has been open sourced, and the development based on the NGK blockchain has been steadily proceeding. The community alliance is also being built one after another. It can be said that the NGK project dynamics has been updated. The NGK project information is spread all over the world. The NGK team is better at marketing compared to the traditional blockchain project team. Judging from the current market situation, NGK is undoubtedly the hottest topic in the blockchain industry.