HONOLULU (HawaiiNewsNow) – Bitcoin prices hit a new record high of more than $103,000 on Thursday, boosted by expectations that the White House is friendly towards cryptocurrencies.
Local advocates say Hawaii is poised to benefit from this boom, but implementation will take time.
Since state regulations for crypto companies were eased in July, proponents argue that Bitcoin adoption has become even more widespread.
Drip Studio HNL, located at the Fort Street Mall in downtown Honolulu, is one of the few businesses in the state that accepts Bitcoin, making it the de facto hub of the local cryptocurrency industry, which is currently unregulated.
“We love the whole concept and the idea behind it,” co-owner Vincent Pohak said.
The Grassroots Institute, a local think tank, has called on the state to stop requiring digital currency companies to obtain money transfer licenses starting July 1 of this year. Under the “dual reserve” rule, companies were required to hold cash assets equivalent to their digital assets.
Because cryptocurrencies do not rely on banks to verify transactions, proponents argue that they offer financial freedom and a means to avoid inflation.
“We're already seeing the cost of living go up and up, in large part because governments are printing tons of money. But with Bitcoin, you can't print money. There is a cap on supply, which makes it a more stable source of value,” said Joe Kent, vice president of Grassroots. “Finally, we have money created by the people, for the people…so we can finally start competing for a better currency, and that will help people avoid inflation.” I hope it will be helpful.”
But critics warn that the industry is rife with fraud and that investors have no protection or recourse if they lose money. It is also known that the price of virtual currencies can go up and down significantly due to speculation.
Economist Paul Brubaker calls cryptocurrencies a medium of exchange for criminal activity.
Schools and non-profit organizations were not deterred from accepting cryptocurrencies as donations, as safeguards are in place to prevent fraud.
The Mid-Pacific Institute recently changed its policy to allow donors to donate up to $200,000.
“Our goal is to make giving convenient for donors, and we want to make it as easy as possible for even those few people for whom it is the right vehicle for them. ” said Vice President Shannon Cleary. Promoting institutional progress in the central Pacific. “We expect to see an increase in that area beyond this initial gift, which was very generous at the time of admission.”
Some may continue to hold Bitcoin as an investment, while others may choose to cash out to protect themselves from volatility.
Kent says his focus is on adoption and education, and warns first-time investors: “Buyer beware.”
Consumers are being urged to do their research and consult their financial advisors as the incoming Trump administration takes digital currencies mainstream and pushes them to record highs.
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