Cryptocurrency Passes More Milestones

By Nicholas Magliochetti

Cryptocurrency has been a hot topic for quite some time now. Although it is still in its adolescence development-wise, it has some promising potential. Not only has the bull market continued into the first quarter of 2021, but cryptocurrency has gained some noteworthy supporters in the form of Elon Musk and Mastercard. The Tesla CEO has frequently been tweeting positively about Bitcoin in recent history. This is quite impactful, as approval from an individual with as much credibility as Elon Musk thus improves the average investor’s perception of Bitcoin’s reputation. This heightened confidence causes more money to be invested in Bitcoin, likely increasing its value. In addition to his own personal opinions, Tesla itself has recently purchased $1.5 billion in Bitcoin. This transaction was made as a means to give Tesla liquidity in the cryptocurrency once they start accepting it as a payment method. The significant support of a company like Tesla vouches for its confidence in Bitcoin’s future potential.

Following this move, financial service giant, Mastercard, also made a large move into the world of cryptocurrency. They announced that this year they will begin supporting select cryptocurrencies on their network. This is a massive development for all crypto fanatics, as this increase in accessibility of crypto will in turn likely increase its value. They are doing so as a means to adapt to the times. Mastercard stated, “Our philosophy on cryptocurrencies is straightforward: It’s about choice. Mastercard isn’t here to recommend you start using cryptocurrencies. But we are here to enable customers, merchants, and businesses to move digital value – traditional or crypto – however, they want.” Their progressive philosophy allows them to branch out into new asset types and take advantage of the developing technology that is the blockchain. Their mindset entering the crypto world isn’t as radical as you might think. Mastercard has laid out four key items they are looking for when researching a viable digital asset. These include; consumer protections, strict compliance protocols, they must follow local laws & regulations in the regions they’re used and they must be stable enough to be used as methods of payment. The first three requirements are quite run-of-the-mill for this kind of situation. The last one is quite interesting. This shows that Mastercard is staying in their comfort zone when it comes to the service being offered. They are accepting Bitcoin as a convenience and because of its increasing popularity. They have no intention of getting involved with these digital assets. A predictable move and wise one nonetheless from a company as big as Mastercard. Bottom line, Bitcoin and cryptocurrency, in general, have gotten monumental support and made significant returns in the past two years. This trend will continue alongside the bull market in 2021 and it will likely peak this coming October. Crypto is still new to the financial scene, but its relevance has only begun to grow.