The Bitcoin price slump that happened in mid May 2021, changed the fundamentals of crypto markets. Without getting into details suffice it to say that, the market slump was triggered by one man – a big BTC investor.
In the next few paragraphs, we present our viewpoint on BTC, we will also try to prove that Bitcoin is just another crypto with, the same risks, the same volatility.
1. Glitzkoin had on multiple occasions, highlighted the dangers of building crypto markets that were dominated, by a single or a handful of cryptocurrencies. The underlying meaning was that, the concept of Bitcoin comfort was a myth.
2. The fact that a major portion of Bitcoins are held by, a small group of high volume crypto investors is no secret. Glitzkoin CEO Navneet Goenka, had warned months ago that, this scenario would likely lead to price manipulation.
3. We often hear about Bitcoin offering a better ROI (return on investment), as compared to gold and conventional shares. It is important to have a thorough knowledge, of investment options. Each investment type has its specific characteristics and risks. We are likely to arrive at a stage where, investments would cover a spread of gold, shares and cryptocurrency.
4. The general trend was to see ETH and BTC, follow similar price movements. One of the most obvious reasons for this would be, an overlap of investors. While that behavior is likely to remain among high volume investments, small and medium investors could show a preference to one of the two. It might be too early to conclude that, ETH would define its own course.
5. Glitzkoin Business Development Manager, Lila (Hussain) Ruzaini had made an interesting point in her LinkedIn post. This came at a time when several crypto media reports, were recommending a conversion of cash reserves to Bitcoin. Lila’s advice was that money that, could be required at short notice was best kept as liquid cash. Medium to long term investments in BTC, should be made only after gauging an individual’s capacity to bear losses.
6. Interestingly most crypto analysts have avoided making an important statement. Bitcoin which was touted as the foundation of the crypto industry and crypto markets, was ultimately brought down by the whims and fancies of one big investor.
It would not be right to highlight the weaknesses of Bitcoin here without, suggesting a constructive way to mend the situation. Glitzkoin is confident that, Altcoins could play a more active role in crypto markets. The idea is to develop resilient markets that, are not heavily dependent on a single or a handful of cryptocurrencies. The CEO has recently put forward the 30/70 ratio for crypto markets. This visualizes a market where 30% (in dollar terms) is composed of Bitcoin, the remaining 70% is made of several Altcoins.
GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token. The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry.
The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.
The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform. This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases.
Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.
Related Resources: [Project Updates]