This week we thought we would take some time to reflect on the Fear, Uncertainty and Doubt (FUD) surrounding bitcoin and its network. These stories and FUD only really seem to rear their head every few years or so when bitcoin is in the spotlight and regulators are anxious.
Bitcoin is legal tender. These are words we didn't really expect to hear in 2021. Yet, somehow, on the 8th of June 2021, in Central America, the country of El Salvador passed a bill that officially recognises bitcoin as legal tender in its country. It took 12 short years to go from the online chatrooms of Cyberpunks and computer scientists to nation-state money. To say we are proud is an understatement.
“Bitcoin has no fundamental value” has long been the war cry for many traditional financial participants. This week we thought we could shed some light on this short-sighted mantra.
One of the most common questions we get when talking to people about digital assets usually concerns the difference between Bitcoin and Ethereum. We believe this confusion stems from the idea that both of these assets compete with each other as money.
Money has always been technology. It allows society to store time, effort and sacrifice today and redeem it for time, effort, and sacrifice in the future. Similar to how a title deed gives the holder a claim on a property, money is a claim on human time. When we exchange our time for money we hope that it can hold value for long enough to enable us to trade it for something we want.
Our banking and financial networks of today are simply communication networks for settling financial transactions, they guarantee that transactions will be processed, executed, and settled. Banks are responsible for interfacing with these networks on behalf of their clients — sending the right messages and responding appropriately to messages received. The internet brought us, as users of banks, that much closer to their messaging network, allowing for online banking and fast mobile payments all whilst hundreds of bank branches closed across the globe.
"We've already witnessed a watershed year for crypto in terms of regulation," says Cobus Kruger, CEO and co-founder of Stackr, a global long-term savings platform, but it hasn't yet been sufficient. He adds:
"It's imperative for survival and growth. Without regulated instruments like an ETF, the industry will tread water, because there will only be insignificant institutional adoption."
Stackr, the complete global long-term savings solution, introduces a personalized trust structure that allows investors to hold both capital and digital assets.
As we move closer to the launch of Stackr in Q1 2019 we wanted to give you an update on how the project is progressing and what the founders (Cobus and Brendan) have been up to.
Cobus and Brendan have had a busy couple of weeks meeting with our service providers and regulators across the globe.
As the crypto market suffers its steepest drop in months, we asked to hear what the people who live the industry day-in and day-out had to say about the crash's causes, its lessons and its significance going forwards.
Cobus Kruger, CEO of Stackr comments:
"The positive news around this fall is that if you understand the fundamentals of the crypto market, then what we are seeing right now is an incredible buying opportunity.”