Digital assets’ growing relation with public market
After showing a downward trend in May, the digital asset market is mixed so far in June. Meanwhile, news continue to cover how the public market and digital assets are getting more closely interrelated every day. During the first week of June alone, three huge news reports came out catching the attention of digital assets market participants.
1. Coinbase is supporting Apple Pay and Google Pay
The first one of these news coverages was about Coinbase, the biggest digital assets exchange in the US. The company officially announced its plan to link its own debit card with Apple Play and Google Pay. Coinbase’s debit card service enables investors to more easily pay for digital assets using a card.
There are a few other digital asset companies that are providing a debit card service. However, Coinbase is the first to enable Apple Pay and Google Pay on its debit card. With the help of Apple Pay and Google Pay which have such big presence in the global payment market, many people will now be able to pay for digital assets more conveniently.
Since the same current market price of the digital market applies at the time of card payment, there will be no inconvenience in using it. According to Coinbase, US citizens can be rewarded with a 1% rebate for Bitcoin payment and 4% rebate for Stellar Lumens payment.
2. According to Bloomberg, dominance of digital assets in dollar market is growing
Meanwhile, Bloomberg remarked that Bitcoin price is more likely to pass the 20,000-dollar mark and reach 100,000 dollars in its monthly report in June. Along with the price forecast, the company presented its rationale behind the prediction that digital assets including Bitcoin will rise in price.
The first reason is that dollar-based Stablecoin is growing in influence. As many digital asset investors know, the current number one Stablecoin is USDT. Bloomberg forecast that the prospect of the digital asset market will get brighter along with its growing influence in the dollar market.
The second reason is that digital assets like Ethereum meet the eco-friendliness requirements. As for Ethereum, it will no longer use the mining method for block validation with the launch of “Ethereum 2.0,” which will free it more from eco-friendliness issues. Citing these reasons and the fact that so many DApps are being run on Ethereum, Bloomberg evaluated Ethereum positively.
3. El Salvador seeks to pass bill to make Bitcoin legal tender
Efforts are being made to officially implement digital assets at the national level. During a Bitcoin conference held in Miami on the 5th, El Salvador’s President Nayib Bukele announced that he plans to submit a bill on making Bitcoin legal tender to the Legislative Assembly next week.
According to foreign news reports, the bill will most likely pass once submitted unless something unusual happens. If the bill passes, it will be the first time ever that a digital asset becomes a legal currency. Although some say that the El Salvadorian President’s remark only created the image of digital assets being used as an “official currency in a third world country,” others are expressing hope that other countries would follow suit.
Judging by these news reports, what is important is that the overall public market is having a keen interest in digital assets. Let’s hope that we will continue to see similar cases setting the stage for cryptocurrencies to grow more.
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