US Midterms See Bitcoin Believers Elected, Potentially Bolstering Blockchain Growth

  • Darryn Pollock
    ⭐ Features

    With the US Midterms over, there has been some reshuffling of a positive note for Bitcoin believers pushing their way to the fore.

US Midterms See Bitcoin Believers Elected, Potentially Bolstering Blockchain Growth
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The recent Midterm elections in the USA have seen some changes as the Democrats were able to gain the House of Representatives, yet the Republicans held onto the Senate. It is hard to decipher who was the outright winner there. However, in cryptocurrency terms, there was a clear win for blockchain-based digital tokens.

There were wins for pro-Bitcoin and blockchain believers in California and Colorado on behalf of the Democrats, which could help bolster blockchain and Bitcoin adoption. The technology has moved along so much that there are regulators and government agents who are strong believers and could help boost it from their positions of power.

In Colorado, Democratic candidate Jared Polis won his race and is believed to be a huge supporter of blockchain. In California, Gavin Newsom won, and he has been known to accept Bitcoin donations.

The fact that these influential men are open to the potential of Bitcoin and blockchain—and have the power to institute orders that can help bolster the technology—is important. The next wave of adoption has to come with the approval of regulators and governments, and to have these types of people in positions of power is the beginning.

Boost in Colorado  

In Colorado, Polis bested Republican Walker Stapleton in a tight race. Polis is apparently an ardent supporter of Bitcoin’s underlying technology blockchain.

“My goal is to establish Colorado as a national hub for blockchain innovation in business and government. I believe strong leadership will put Colorado at the forefront of innovation in this sector—encouraging companies to flock to the state and establishing government applications that save taxpayers money and create value for Colorado residents,” Polis wrote.

Looking deeper into Polis’ position on blockchain, one can clearly see he is respectful of the power that the decentralized network can bring, but wants it to work within the regulations provided. At the same time, he also wants to use the current laws to make a better environment for cryptocurrencies and blockchain.

“Similar to Wyoming, I will work alongside the legislature to create a statewide safe harbor designed to exempt cryptocurrencies from state money transmissions laws, and I will work to establish legislation that protects “open blockchain tokens” or cryptocurrencies that are exchangeable for goods and services,” the newly elected governor said.

Similar situation in California

In California, Newsom made it known he was an early Bitcoin adopter, stating back in 2014 that he would accept Bitcoin for his campaign, but found it hard to explain just what it was back then.

California’s win with a pro-Bitcoiner is important, as Northern California and its Silicon Valley is widely regarded as home to some of the largest technological and financial technology innovation companies in the world. Coinbase is also based in San Francisco, California.

Power to innovate

With these Bitcoin believers now in power in two important states, it is more than likely that there will be much more room for innovation rather than restriction.

Freedom to participate and innovate is crucial for the growth of a crypto economy, and while other states may be focused on collecting fees and restricting the activities of crypto exchanges and other types of crypto businesses, California is still free from overly restrictive laws like the BitLicense in New York.

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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan
    ⭐ Features

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money

Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.

You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

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Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

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