Back

Crypto Analyst Willy Woo Explains 'Real Value' of Bitcoin (BTC), Calls Fiat Money Experiment

News
Sun, 06/14/2020 - 15:21
article image
Vladislav Sopov
Typically, cryptocurrencies and Bitcoin (BTC) are criticized for having zero intrinsic value. Top analyst Willy Woo showed some cases where this approach doesn't work.
Crypto Analyst Willy Woo Explains 'Real Value' of Bitcoin (BTC), Calls Fiat Money Experiment
Cover image via www.youtube.com
Contents

Top-level analyst and hedge fund manager Willy Woo, who is also known as a venture investor and advisor, explained his concept of 'real-world value' as backed by the Bitcoin (BTC) network. He also indicated why fiat money represented a sort of long-term experiment.

Still an Experiment

Mr. Woo announced that modern fiat money system is an experiment, although it has lasted four times longer than that of Bitcoin (BTC). However, the very essence of both assets looks similar in this regard.

Willy Woo: Fiat Money system is an experiment
Image via Twitter

It looks like Mr. Woo is referring to the 'Nixon shock' as the birth of a fiat money system in its modern age. In 1971, the President Richard Nixon of the United States decided to start the unilateral cancellation of direct international convertibility of the U.S. Dollar to gold.

So, Mr. Woo would rather refer to it as 'fiat with no golden equivalent' versus fiat money by default. 

The 'experimental' nature of most popular assets around the world may be result in a lack of understanding its internal mechanisms. Thus, the traditional money system also keeps its secrets just like its blockchain-based competitors.

Energy and Amortization Bring 'Real World Value'

Additionally, Mr. Woo highlighted that the experiments with a modern fiat system are not unique at all since history remembers similar instruments.

What is unique is the level of dependence of global economics on the fiat system. Therefore, it becomes incredibly vulnerable at times of hyperinflation.

Opponents of Mr. Woo claimed that neither Bitcoin (BTC) nor fiat money have any 'real world value' as they are attributed only to precious metals, i.e. Gold and Silver.

The analyst indicated at least two cases when assumptions about Bitcoin's zero value were false:

Every BTC created is a digitisation of real world value without need for a central trusted entity (that is energy and amortisation of mining hardware).

article image
About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?

News
Fri, 10/23/2020 - 09:24
article image
Vladislav Sopov
Grayscale, undisputed giant of institutional crypto investments, is celebrating another monstrous milestone, adding a nine-digit sum to AUM in 24 hours
Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?
Cover image via stock.adobe.com
Contents

Grayscale is an investment company that provides the clients with an exposure to digital currency markets eliminating the need to buy tokens. The firm does it by selling shares of 'trusts' related to certain digital assets. The recently started FOMO has already brought Grayscale's 'asset under management' (AUM) values to previously unseen levels.

Grayscale assets are on steroids

In its most recent report shared in a tweet, Grayscale Investments stated that its net AUM now surpasses $7,300,000,000. Mostly, this upsurge should be attributed to the spikes of Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) prices.

Grayscale adds $300M to its AUM in 24 hours
Image by Twitter

Its founder, CEO of Digital Currency Group Barry Silbert, unveiled that Grayscale’s holdings added a whopping amount of value in the last 24 hours.

Added a cool $300 million in AUM in one day

In terms of separate ‘trusts’, the most impressive increase is associated with Litecoin (LTC). Its value added almost 10% bringing its total to over $34 mln. 

Bitcoin (BTC) allocation surged above $6 bln with a 5% increase. Notorious Grayscale Ethereum Trust (ETHE) added 6% and now is valued at $942 mln.

PayPal assists Grayscale

By contrast, Stellar Lumens (XLM) and Bitcoin Cash (BCH) trusts witnessed mediocre increases of 2-3%. The only integral product of Grayscale, Large Cap Trust that unites the most valuable coins under its umbrella, therefore, added less than 4%.

The numbers of Grayscale Investments positions rocketed due to the rapid spike of crypto prices associated with PayPal’s decision to add major digital assets to its instrument toolkit.

As covered by U.Today previously, PayPal announced that Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) will be added as payment methods by the end of this year.

  

Following this surprising news, Bitcoin (BTC) revisited its multi-months high over $13,000. At press time, its price has slightly retraced and flirts with the $12,800 level.

article image
About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)