Nasdaq finally launched the long-awaited Bitcoin and Ethereum indexes on Monday, February 25th. The move was greeted with a lot of support coming from the crypto community, as many expect it to be a large move forward on cryptocurrencies’ road to reaching the mainstream adoption.
The stock exchange announced the move earlier in February, stating that it plans to send real-time Ethereum and Bitcoin index level info on its GIDS (Global Index Data ServiceSM). These are currently the only two cryptocurrencies that Nasdaq supports, although it is still a massive achievement for cryptocurrencies, in general.
The importance of BLX and ELX
BLX (Bitcoin Liquid Index) and ELX (Ethereum Liquid Index) will, as mentioned, offer a “real-time spot or reference rate” for Bitcoin and Ethereum, as Nasdaq put it. The information will be refreshed regularly, every thirty seconds, providing traders and investors with fresh information at all times.
According to the exchange operator, BLX is among the most widely-referenced BTC indices when it comes to the world of crypto trading. This has been the case since 2010, while ELX has not been far behind. The two indices are being calculated via a methodology that has been audited against IOSCO principles.
The move is important for Nasdaq just as much as for cryptocurrencies themselves. While cryptos have made a large move towards mass adoption, Nasdaq ensured that it would not get left behind due to the trend shift.
Can Bitcoin become the world’s reserve currency?
Bitcoin has been compared to gold countless times by now, and there are similarities between the two assets. However, a deeper inspection actually reveals that Bitcoin might be an even better asset than gold itself.
As a result, many have speculated in recent years that BTC might end up becoming the global reserve currency. While this will likely not happen for quite some time, it might still lie in the coin’s future. If it happens, Bitcoin’s all-time high of $20,000 might become irrelevant, as its price would be measured in millions of dollars per coin.
At the moment, the financial world is experiencing difficulties, mostly due to several global events which are bound to have a significant impact. The US global war on trade is one of the largest ones, and because of it, the confidence in the USD is dropping rapidly.
As such, a shift to another monetary solution may be necessary in years to come. However, people still want to buy Bitcoin and other cryptocurrencies, in general, do have a large group of supporters — there are still many who deny them and their potential. Billionaire investor, Warren Buffet, is among them as well, still being skeptical of Bitcoin, and claiming that it is a delusion that holds no value. He believes that the trend would go away if only Wall Street manages to stay out of it. However, there are others who believe that Bitcoin, as the form of money that is expected to return the power to the hands of the people, scares billionaires as it endangers their lifestyle.
After all, crypto is a new trend that threatens to make the banks obsolete. Since the banks hold most of the money billionaires own, it is no surprise that they are trying to bash the crypto trend as much as possible.