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“Massive Disruptions”: Bitcoin Hits All-Time High, Sparking New Avenues for Startups


“Massive Disruptions”: Bitcoin Hits All-Time High, Sparking New Avenues for Startups

Bitcoin, a well-known cryptocurrency has reached an all time high, breaking an equivalence of $5,000 per coin this past week. This comes on the heels of two major developments in the cryptocurrency industry. First, IMF Chief Christine Lagarde commented that international banks should anticipate a ‘disruption’ by cryptocurrencies in the near future, and second, a highly controversial Israeli court decision ruled that banks are not obligated to provide financial services to firms and startups that trade primarily in cryptocurrencies for security reasons.

This rise in Bitcoin’s value, particularly following controversy in the news media, reflects well on the currency, and its instrumental role in revolutionizing e-commerce, financial regulation, and money markets. Firms all over the world are jumping on cryptocurrencies as the new frontier of investment, particularly those who operate primarily online because of their international flexibility and great potential for growth. Growing numbers of startups, especially those operating internationally, are becoming increasingly interested in cryptocurrencies.

Banking and Technology

For startups and new businesses today, fluency with cryptocurrencies is not critical, but it does give an advantage on many fronts. Whether a company deals directly in cryptocurrencies, or simply provides professional services to a company who does, keeping abreast of trends in modern money markets will allow for more well rounded recommendations and better cautionary decision making when it comes to investment and security. While easily accessible resources for traditional investment questions surrounding loans, mortgages and financial health abound globally, like in this Norwegian example, resources for beginners interested in cryptocurrencies can be harder to find. The relative novelty of the currencies, combined with traditional businesses’ reluctance to adopt them due to security concerns have caused an iceberg of value to build up, largely underappreciated by traditional financial institutions.

Controversy and Tradition

Christine Lagarde’s comments, that cryptocurrencies are going to cause a disruption, sent ripples through the business and finance sectors who have been reticent regarding cryptocurrencies. A large majority of the firms adopting and innovating in the cryptocurrency market are startups Particularly important were her comments that the IMF may develop its own form of cryptocurrency at some point to create a sort of international reserve asset in case of financial collapse. She also disagreed with JP Morgan Chase CEO Jamie Dimon’s comments that Bitcoin is a fraud, and her legitimization of the cryptocurrency market is a huge step forward for businesses and investors currently working with, or expecting to work with Bitcoin and other cryptocurrencies.

However, the Israeli ‘Bits of Gold’ court decision, that financial services firms do not need to serve cryptocurrency-focused firms because they often fail to meet critical identity security measures, seems like a step back. The advantage in the industry is now in the hands of startup firms, willing to tackle the challenges of the market and create new innovative avenues for the cryptocurrency frontier.

As with all new technology, the early adoption period transitions into the mainstream market phase with more than a few bumps in the road. For today’s startup manager, investor, or tech-savvy 21st century citizen, cryptocurrencies promise to be a critical part of the e-commerce, financial services, and money market industries for years to come.

I am the founder of Startup Today. I am the main writer and have put in many hours of work into creating this blog. If you want to find out more about me then lets get in contact.

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