GB Market Commentary 13/12/2021
by Marcus Sotiriou
Bitcoin was rejected again from the $50,000 level yesterday as it trades at around $49,000 at the time of the writing. On Saturday, Ascendex Exchange was hacked for $77 million in ERC-20, BSC and Polygon tokens after a security breach which allowed hackers to take control of some of the wallets. The exchange has announced that it will reimburse the funds of any affected user. GlobalBlock’s custodial provider Qredo, backed by Lloyds of London, minimises the risks of hacks by using advanced technology called MPC (multi-party computation) – this means that multiple parties have to sign off transactions, hence increasing security.
Yesterday, Bitcoin reached a historical milestone, as 90% of the maximum 21 million Bitcoin has been mined into supply. This means that only 10% (2.1 million Bitcoin) is left to enter the supply, with the last Bitcoin being mined in 2140. Bitcoin’s scarcity is one of its most attractive aspects as an investment, which is what many people, institutions and governments are starting to catch on to. I think Bitcoin’s scarcity will lead to a supply shock for Bitcoin to help it overtake Gold’s market cap over the next 10 years, which is around $10 trillion – this gives a $500,000 target for Bitcoin’s price.