Kvě 24

Weiss Ratings: Bitcoin Correction The Best Buying Opportunity Since 2015

Weiss Ratings believes that bitcoin price surging to $8,373 will open the doors to a once in a lifetime purchasing opportunity.


Weiss Says Buy the Dip

On Thursday Weiss Ratings tweeted that Bitcoin’s current technical setup presents the best purchasing opportunity for investors since 2015.

The independent rating agency based their assessment on analysis from their chief crypto analyst Juan Villaverde.

The analyst explained that Bitcoin’s recent surge to a 2019 high at $8,373 has primed the market for an impending correction that will represent the greatest purchasing opportunity since 2015.

According to Villaverde, similar price action occurred in 2012 and 2015 and the cryptoanalyst explained that:

In January 2012, for instance, after Bitcoin has rallied to $7 per token from its bottom of $2 just months earlier, Bitcoin suffered a 45% correction down to about $4. But that was a launching pad for a bull run that would take Bitcoin into four-digit territory for the first time in its history, hitting a high of almost $1,200 by December 2013.

Villaverde then pointed to an identical occurrence in 2015 when Bitcoin price notched $500 in November only to be followed by a sharp 40% sell-off to $300 a week later.

Will Bitcoin Pull Off a ‘Three-Peat’?

Naturally, investors will be concerned about whether history will repeat itself and the phrase “past performance is not indicative of future results” comes to mind.

Villaverde addresses this valid concern by pointing out that that Bitcoin’s fundamentals have improved significantly over the past year and the fact that Bitcoin usage is near all-time highs, with daily transaction volumes nearly reaching levels not seen since late 2017 is encouraging.

According to him, Bitcoin’s 24-hour transaction volume recently reached a 2019 high of 450,000 and the previous all-time high occurred on December 13, 2017, just a few days before prices reached $20,000.

Weiss also pointed out that Bitcoin network fees remain at their lowest levels since August 2017 despite the consistent increase in transaction volume. Villaverde explained that there is a negative correlation between usage and fees and this is proof that upgrades like SegWit and the Lightning Network were paramount in making this possible.

Overall Villaverde encouraged investors to focus on the positives and reiterated that: the recent major rally confirmed the beginning of a bull market, Bitcoin’s fundamentals have improved the point of supporting increasing price and he cautioned investors to be attentive of an impending sharp correction, which could provide a fantastic purchasing opportunity.

Do you agree with Weiss Ratings advice to buy the next Bitcoin dip? Share your thoughts in the comments below! 


Images via TradingView.com, Twitter, Shutterstock

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Kvě 23

10 Fintech Leaders Predict Bitcoin to End 2019 Above $9,500

Ten prominent fintech experts shared their bitcoin price predictions and all agreed that BTC would close 2019 above $9,500, according to Finder.com.


Experts Expect a Bull Market

The US-based comparison website surveyed 10 fintech leaders on their thoughts and projections on 13 cryptocurrencies (including the top-10 by market capitalization) and the participants included executives from BitBull Capital, Arca, and Blocktoken.

The participants were most optimistic about EOS, Binance Coin and Tron as each was forecast to gain 727%, 459%, and 449%, respectively.

When asked whether the current climate is ideal for the average person to invest in cryptocurrency, 5 out of 10 executives agreed that now is a good time to allocate a small portion of portfolio funds to digital assets. 4 survey participants also said that they believe Bitcoin will surpass its $20,000 all-time high during the next bull-run.

50% of the participants believe that the next uptrend will end just like the one in 2017. But while the majority of the participants expected Bitcoin to eventually cool off from its recent parabolic run, the general consensus was Bitcoin would exceed $9,659 by the end of 2019.

Analyst and participant Joe Raczynski said that:

We are entering a new period with Bitcoin. Many of the institutional players have said they are done with this experiment (publicly), which may be the case [but] I think privately, some other hedge funds and other institutions will continue to invest during this lower period.

Altcoins to Outperform Bitcoin in 2019

Surprisingly, Blockchain Capital partner Jimmy Song expects Bitcoin to close 2019 at $5,901 and Song explained that there seems to be some daylight between Bitcoin and other cryptos.

Bitcoin will start being seen as a different asset than all the others,” he said.

Meanwhile, Bitbull Capital’s Sarah Bergstrand said that she expects bitcoin price to “bounce between $3,000 and $5,000 for the next few months.”

The survey results also show that the majority of participants think Cardano (ADA) will wrap up 2019 at $0.14 and the group was fairly optimistic about EOS.

Brenden Markey-Towler from RMIT Blockchain Innovation Hub predicting that

….as EOS transitions with NEO and Ethereum to next-generation consensus algorithms, I suspect their scope as an institutional technology will increase, and their value with it.

Stellar Lumens (XRP) is expected to reach $0.18 by year-end and the group optimistically forecasts that TRON and XRP will close the year at $0.15 and $0.44.

Finder has held its Bitcoin Predictions Panel since January 2018 and interested investors can find the details of each monthly survey here.

Do you agree with these bitcoin price predictions? Share your thoughts in the comments below! 


Images via TradingView.com, Twitter, Shutterstock

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Kvě 22

Winklevoss: Sitting on the Sidelines is Crazier Than Investing in Bitcoin

Prominent Bitcoin investor and Gemini Exchange co-founder Cameron Winklevoss says that the future of money is currently being built with Bitcoin and crypto and that it’s ‘crazy’ to be sitting on the sidelines. 


‘The Future of Money is Literally Being Built’

Popular cryptocurrency commentator and a prominent Bitcoin investor Cameron Winklevoss has argued the craziness of investing in the crypto space. He said:

“Some people think it’s crazy to invest in crypto. Maybe. But definitely not as crazy as sitting on the sidelines when the future of money is literally being built before your eyes.”

The Winklevoss twins, in general, have been more than well-known in the space. Earlier in January, they said that Bitcoin will pass the $7 trillion gold market cap.

Mr. Wonderful Disagrees

One of those who seem to believe that investing in Bitcoin is more than crazy is popular TV personality and millionaire entrepreneur Kevin “Mr. Wonderful” O’Leary. Those of you who’ve watched the popular entrepreneur show “Shark Tank” surely know him.

Kevin O'Leary bitcoin

Just yesterday, in a rather heated debate with Anthony “Pomp” Pompliano of Morgan Creek Capital, on CNBC’s SquawkBox, O’Leary argued that there’s no value in owning bitcoin as an asset class. He said:

Where is the value in owning bitcoin as an asset class? Tell me why this, which is basically a digital game, has any intrinsic value. And where is the long-term value? Just this idea that they’re going to cut the number of units in half is just a scam. That’s just total BS.

Despite Pompliano’s arguments, the investor couldn’t seem to wrap his mind around the idea and denied all merits of Bitcoin and other cryptocurrencies as well.

Tom Lee Says Current Bitcoin Bull-Run Has Legs

Speaking on CNBC’s Markets Now, Fundstrat Global Advisors’ head analyst, Tom Lee, discussed the current case for Bitcoin. He outlined that the top ten days in any year account for all the gains for crypto.

tom lee Bitcoin price

However, Lee also said that there’s plenty of reasons to be optimistic. He reiterated on the narrative that Bitcoin “has proven to be digital gold” – something also expressed by the Winklevoss twins themselves.

Lee also mentioned the upcoming Bitcoin halving which is estimated to take place in less than a year from now.

As Bitcoinist reported yesterday, the overwhelming majority of people bullish regarding the effect it will have on the cryptocurrency’s price given historical trends.

What do you think of Bitcoin going forward? Let us know in the comments below!


Images via Shutterstock

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Kvě 21

Argentina: Bitcoin Bought at $20K Retained More Value Than the Peso

Bitcoin has proven to be a store-of-value in Argentina where you would have been better off buying BTC at its peak rather than hold the peso.


Argentina Ensnared Political and Economy Turmoil

The Argentinian economy continues to shrink, afflicted by stubbornly high inflation, which President Mauricio Macri, who is running for re-election, has been unable to rein in. Hence, he is becoming increasingly unpopular.

On May 19, 2019, the country’s grim economic outlook became even muddier when former president Cristina Fernandez de Kirchner announced she was running for the vice presidency alongside Alberto Fernandez (her former cabinet chief), in the upcoming presidential elections in October 2019.

Ms. Kirchner made the announcement a few days before the beginning of her trial for alleged corruption offenses related to public works contracts. The trial is scheduled to start on May 21, 2019. Reuters wrote,

Cristina Fernandez is considered by investors to be a riskier prospect because of her past populist policies. She introduced currency controls and tax increases on farm exports while in office between 2007 and 2015.

Fearing that if Ms. Kirchner returns to power it would bring populism back to the country, investors are now more than ever seeking refuge in safe-haven currencies, such as US dollars and Bitcoin.

In effect, Bitcoin’s value in relation to the Argentinian peso and Bitcoin’s trading volumes are reaching all-time highs. Likewise, the US dollar is an all-time high against the Argentinian peso. This set of circumstances will most likely reinforce Argentina’s inflationary spiral.

Argentinians Better Off Holding Bitcoin

Officially, as of March 2019, Argentina’s annual inflation rate reached over 55 percent. But even this elevated rate of inflation is questioned. Economist Steve Hanke argues that when using high-frequency data, the inflation rate in Argentina is over 80 percent.

Such a high inflationary rate significantly erodes the purchasing power of the peso, to such an extent that replacing the peso with Bitcoin to save Argentina’s plummeting economy no longer seems like a crazy idea.

As a result, many are turning their attention to Bitcoin’s deflationary attributes. For example, one strong argument put forward is that Bitcoin is a better store-of-value than the peso.

In this regard, Partner at Sixtant, Josu San Martin, noted:

If an Argentinian had bought Bitcoin at the highest point of the ‘biggest bubble in history,’ in 2017, he would have been better off than leaving his money in his Argentinian bank account. So tell me again how Bitcoin is a horrible store of value.

As a completely new asset class, Bitcoin is still volatile. Nevertheless, in the long run, Bitcoin is proving to be a better (and rapidly appreciating) store-of-value than gold, even more so in a digital economy.

In this regard, Grayscale Investments, one of the largest cryptocurrency asset managers, details key features to highlight Bitcoin’s superiority to gold in, verifiability, divisibility, durability, fungibility, portability, and recognizability.

Moreover, a compelling and most relevant argument for the Argentinian economy is Bitcoin’s inflation-resistant nature, which is strengthened by its scarcity. Only 21 million bitcoins will ever be created by around the year 2140.

Furthermore, Grayscale compares the cryptocurrency to gold in the features shown in the chart below.

To save the failing economy, President Macri has already received advice to bear Bitcoin in mind. In March 2019, serial investor Tim Draper advised him that to attract foreign investors he must dramatically transform Argentina’s economy and replace its peso with Bitcoin.

How do you think that Bitcoin can help Argentina to minimize inflation? Let us know in the comments below.


Images via  Grayscale, Shutterstock

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Kvě 19

You Can Now Send and Receive Bitcoin on Whats App

Whats App users can now send and receive Bitcoin (BTC) and Litecoin (LTC) via the popular messaging platform thanks to the Lite.Im bot. The announcement is the latest attempt to simplify the cryptocurrency transaction process, bringing virtual currencies closer to the everyday person.


Sending Bitcoin on WhatsApp

In a tweet published by Zulu Republic on Sunday (May 19, 2019), the digital platform announced that its cryptocurrency messaging platform Lite.Im had introduced a simple way to send and receive bitcoin via WhatsApp.

All users have to do is add the Lite.Im WhatsApp bot and follow the on-screen prompts. There are numerous options for users apart from sending and receiving BTC and LTC.

The service also allows people to earn cryptocurrency via a referral program. There are also options that allow users to set their default coin, as well as select their preferred language and password.

Send and Receive Bitcoin via WhatsApp

Presently, the two default languages are English and Spanish. The service also supports sending and receiving Ether (ETH) and ZTX – the native token on the Zulu Republic platform.

Making BTC Transactions Easier

SMS-based cryptocurrency transactions introduce some simplicity into the cryptocurrency transaction paradigm, especially for less tech-savvy individuals. Lite.Im already has similar services for Facebook Messenger, Telegram, and SMS.

According to the company, “social messaging” is an important component of wider cryptocurrency adoption. WhatsApp alone has more than 1.5 billion users in virtually every corner of the globe.

With mobile money transactions becoming easier in places across Southeast Asia and Africa, there is the possibility of more unbanked and underbanked people getting greater access to payment channels.

In 2019 alone, there has been a slew of announcements from different establishments about plans to adopt Bitcoin. From trading desks to acceptance as a medium of exchange, the top-ranked cryptocurrency continues to dominate the news.

Many commentators in the industry say BTC is becoming a more mature asset class and looks well on its way to fulfilling the expectations of many early believers.

Competition for ‘Facebook Coin’

With Facebook having its own cryptocurrency plans, Lite.Im could potentially be seen as competition. There is no official word about the exact nature of the social messaging giant’s virtual currency ambition but rumors persist that it will be a “Bitcoin-like” cryptocurrency token.

Though it’s like FBCoin will be anything but. Luckily, you can already send bitcoin on Whats App.

What do you think about SMS and social media-based Bitcoin transactions? Let us know in the comments below.


Images via Twitter @ztxrepublic and Bitcoinist

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Kvě 18

Bitcoin is Front Running Stock to Flow Price Model at $7300

Despite dropping by about $1,000, Bitcoin is still way ahead of even some of the most optimistic price projections and detailed price forecast models. Here is a look at how Friday’s ‘flash crash’ hasn’t derailed Bitcoin in the long term.


Current Bitcoin Price Still Leads $1 Million S2F Model

Tweeting on Saturday (May 18, 2019) Bitcoin analyst “planB” showed how even at $7,300, BTC still leads the stock-to-flow (S2F) model about $1,000 on the road to hitting $1 million per coin.

PlanB’s S2F model posits that scarcity and value have a direct relationship with scarcity being a measure of stock flow (SF). The analysis also takes into consideration important parameters like Bitcoin block reward halving which occurs every four years until all 21 million BTC are mined.

According to the model, by the time of the next halving which is in May 2020, BTC’s SF should double from its current value of 25 to 50. This doubling would bring BTC’s SF closer to that of commodities like gold.

BTC permabulls like Max Keiser say Bitcoin has the potential to reach a fraction of the gold market capitalization, which is somewhere in around $8 trillion. The S2F model predicts that by 2020, BTC should have a market price of $55,000 based on an SF value of 50.

S2F hinges heavily on scarcity which for BTC takes on another dimension given that a portion of the 21 million total token supply isn’t even attainable since some BTC are forever lost.

Data from BitInfoCharts shows that there are about 16.82 million BTC held in dormant Bitcoin addresses. Between cumulated BTC dust and lost private keys, there are about 10.5 million BTC that haven’t moved in over a year.

16 Million Bitcoin Likely Lost

Perfect Pullback?

Before the Friday price drop, there had been the talk of a possible retracement in the BTC price action to the mid-$6,000 level. These predictions hinged on massive profit taking above $7,000, creating another entry point for a new BTC accumulation in preparation for a fresh upward swing.

In the short-term, there is an expectation that BTC might slip further downwards perhaps to the 50-day or 200-day moving average support levels. This puts a possible downward slide between $4,500 and $5,500.

However, such a move would mean breaking the $6,400 support level which characterized BTC trading for most of 2018. Only the fallout from the Bitcoin Cash civil war in November 2018 successfully took BTC below that price level.

Do you think the flash crash adversely affected Bitcoin’s parabolic advance? Let us know in the comments below.


Images via Twitter @100trillionUSD and BitInfoCharts.com, Shutterstock

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Kvě 18

These 13 Bitcoin Lightning Network Upgrades Will Solve Its ‘Biggest’ Hurdles

The Bitcoin Lightning Network will overcome some of its “biggest hurdles to use” in the near future as new features roll out from developers.


From Experiment To Bitcoin Killer App

That was according to Guy Swann, the presenter of the Cryptoconomy podcast, who this week dedicated two episodes to introducing Lightning and analyzing its upcoming changes.

As Bitcoinist has frequently reported over the past year, Lightning represents the ‘next level’ of payments using Bitcoin, and is widely considered to be the way in which the largest cryptocurrency will scale up to meet the needs of billions of future users.

Readers can find more information on the protocol, which debuted on the Bitcoin mainnet at the start of 2018, here.

Looking forward, Swann presented a list of no fewer than thirteen upcoming improvements to Lightning which he says will boost its mainstream appeal.

The basis for the list came from a blog post by Bitcoin business Bitrefill, which offers a range of products and services payable using Lightning.

Top on the list for Swann was Atomic Multipath Payments (AMPs) – or breaking a single payment down into several smaller ones, and sending them over multiple Lightning channels.

“Payments become much more reliable, no longer limited to 1 channel capacity,” he summarized.

[AMP] Removes the biggest (in my opinion) hurdles to payment issues, single channel capacity & liquidity.

Swann is by no means alone in being concerned about those aspects of using the network. As Bitcoinist reported last year, despite its rapid growth, the vast majority of Lightning payments worth more than several US cents failed.

Not Just Lightning Atomic Swaps

Due mostly to its age, Lightning remains a highly-technical tool which lacks a user-friendly interface. Developers are still working on making its base layer suitably robust, themselves stressing the fledgling ecosystem is still an experiment.

Activity is gathering pace, however, and soon for example, Lightning will offer not just major efficiency gains for Bitcoin users, but those of other coins at the same time – via Atomic Swaps.

“Channels don’t have to only send (Bitcoin). Any blockchain… with (Lightning) can connect payments across blockchains. Useful for decentralized swapping of coins, & sending bitcoins to pay invoices in multiple cryptocurrencies,” Swann explained.

Other improvements focus on more specific weak areas in the current Lightning setup. The full list is as follows:

  • Atomic Multipath Payments (AMPs)
  • Atomic Swaps
  • Channel Factories
  • Dual-Funded Channels
  • Eltoo
  • Neutrino
  • Rendezvous Routing
  • Sphinx
  • Splicing
  • Submarine Swaps
  • Trampoline Payments
  • Turbo Channels
  • Watchtowers

As Bitcoinist reported, despite its technical level, Lightning gained significant publicity in 2019 thanks mainly to a public outreach project by Bitcoin user Hodlonaut.

A form of transaction relay, the project, Lightning Torch, raised money for the plight of Venezuela’s citizens using Bitcoin, ultimately seeing participation from well-known figures both within and outside the cryptocurrency industry.

What do you think about the Lightning Network? Let us know in the comments below!


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Kvě 17

Bitcoin Now a More Popular Google Search Term Than ‘Donald Trump’

Google search interest in Bitcoin has spiked to a fresh six month high as BTC has posted 100 percent gains during the same period. In fact, people are now searching for ‘Bitcoin’ more than ‘Donald Trump.’


As Price Rises, People Google Bitcoin

It’s no secret that public interest in ‘Bitcoin’ and everything related rises as BTC price moves. People are naturally curious about what’s causing the bitcoin price 00 to skyrocket. They also want to know what Bitcoin is and whether now is a good time to hold, buy or sell.

Bitcoin’s recent rally over $8K has indeed started seeing more people googling to find out more. Currently, the number of searches is the highest since mid-December 2018. Moreover, this number is projected to reach levels not seen since the peak price of late 2017.

bitcoin google search trends

Google search trends are one of the best online resources for gauging real-time public interest in Bitcoin.

This was demonstrated at the beginning of April, for example, when bitcoin initially broke out of its bearish slump. Google searches for bitcoin spiked.

Today it is more popular than other big search terms such as SpaceX, Tesla, Elon Musk and even Donald Trump.

Donald Trump bitcoin

Furthermore, the majority of searches for Donald Trump are confined to the US. While searches for Bitcoin are global with significant activity on all continents.

In 2018, ‘What is Bitcoin’ topped the “What is…?” Google category in both the UK and the US.

Top 10 Countries Looking Up ‘Bitcoin’

In fact, the top ten countries interest in bitcoin right now (excluding St. Helena) are:

  • Nigeria
  • South Africa
  • Ghana
  • Netherlands
  • Austria
  • Switzerland
  • Singapore
  • Slovenia
  • Australia
  • Germany

Where Are People Googling Bitcoin in the US?

In the US, the states where Bitcoin is now being searched for more than Donald Trump may surprise you.

The top 10 states/regions are:

  • Hawaii
  • Nevada
  • California
  • Washington
  • New York
  • Utah
  • Colorado
  • New Jersey
  • District of Columbia
  • Alaska

Chicken or the Egg?

So does price precede interest or does interest precede price?

Evidence exists for both, in fact. As Bitcoinist reported earlier this month, the volume of tweets and Google Search Volume Index (SVI) were found to be leading price indicators for Bitcoin and Ethereum, according to a research paper published by the Southern Methodist University.

google search bitcoin

However, this particular study mainly focused on the late 2017 price spike and the simultaneous retail interest that likely fuelled the surge to $20K. Notably, it found Tweet volume to be a much more reliable indicator of potential price increase than Google searches – which tend to lag price moves.

As of late, Google searches have shown to rise a day or two later. For example, the spontaneous surge by $1,000 that occurred on April 1st was followed by a surge in searches on April 2nd and 3rd. This suggests that the general public looks for more information about bitcoin after seeing that the price has already risen (and covered by the mainstream media).

At the same time, the Tweet volume for #bitcoin has been rising steadily since March. Currently, it is at about 30K per day, though still lower compared to the period prior to November-December 2018.

Making a Comeback

Overall, the figures suggest that interest is coming back as the price of BTC appears to be bottoming out. Relevant indicators such as the Mayer Multiple and many market analysts are also suggesting that the bear market has come to an end.

If this is indeed the case then some outrageous bitcoin price predictions may not be so outrageous in the future. With fundamentals stronger than ever and shifting market sentiment, a new bull market would do seem to be around the corner, if the past few weeks are anything to go by.

So if these trends are anything to go by, ‘Bitcoin’ will undoubtedly become the most popular search term in

Will price eventually hit $100K in the future as Max Keiser expects? If it does, you can surely bet that the searches would follow.

Do Google searches for Bitcoin lag behind price? Share your thoughts below!


Images via Shutterstock, Google trends, Bitinfocharts.com

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Kvě 15

The Tiniest Fraction of a Bitcoin is Now Worth More Than 3 Fiat Currencies

Bitcoin has long been more ‘expensive’ per one BTC particularly compared to other fiat currencies. Now, its smallest unit known as a satoshi (or 0.00000001 BTC) is now worth more than some national currencies.  


In an interesting Reddit thread, one Bitcoin enthusiast noted that, at the current rates, one Satoshi is worth more than one unit of these three global fiat currencies.

Iranian Rial

As far as sh**coins go, Iran’s doing pretty well with its rial (IRR). If you want to feel rich, this is the ideal place to saunter around the streets with your wads of cash. One U.S. dollar will get you a staggering 42,101 rials.

Iranian Rial to USD

The government devalued its national currency in July 2013 to half of its former value. This was meant to reduce the subsidization of the exchange rate against the dollar.

With increasing U.S. sanctions, Iran came up with a second sh**coin in the form of a centralized and highly questionable “crypto rial”. However, the PayMon, is yet to prove itself as a plausible way of avoiding them.

Inflation in this country could reach as much as 40 percent by the end of this year. The economy is also expected to retract substantially as well. Oh, and one satoshi is worth more than one Irian Rial right now.

Vietnamese Dong

You don’t get quite as much bang for your buck with the Vietnamese Dong. But it’s not that far behind Iran, at 23,321 dongs for a dollar.

Vietnamese Dong USD

Coins have long become extinct in this southeast Asian country (you can see them in museums) and its people are used to using bills with tons of zeros on them. The smallest bill starts at 100 dongs and the largest goes all the way up to 500,000 dongs.

Just like Iran, the Dong has been devalued several times. However, that seems to have attracted plenty of foreign investment and the economy is booming here. It also has sensible inflation rate at just over 4 percent.

While trading BTC is still legal, the State Bank of Vietnam banned using it as a means of payment. It’s also clamping down on cryptocurrency regulation in the wake of multiple scams in the country. So, while one Satoshi may be worth more than one dong, its people can’t use BTC to buy anything.

Indonesian Rupiah

Another country with a history of an uncertain economy and high inflation, the Indonesian Rupiah has been devalued many times throughout its history. Moreover, in 2018, it fell to its lowest level against the dollar in 20 years.

IDR

Despite the fact that it’s pretty easy to be an Indonesian millionaire (with one dollar getting you 14,462 rupiahs) they still have coins, which is kind of cute, perhaps just for nostalgic value. The highest banknote here is 100,000.

If you’re heading to Bali and want to buy anything more expensive than a meal, you’ll probably pay in dollars. After all, 40 bucks a night for a room sounds a lot better than 578,532.69.

Indonesia recently came out and recognized Bitcoin as a commodity, allowing it to be traded. However, just like Vietnam, the ban on cryptocurrency payments still exits. So if people wanted to spend their satoshis, they’d be out of luck.

Will a Bitcoin satoshi eventually reach parity with the US dollar? Share your thoughts below!


Images via Shutterstock

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Kvě 14

Stablecoins Beat Bitcoin, Says ECB Presidential Hopeful

Francois Villeroy de Galhau of the European Central Bank (ECB) says stablecoins hold more promise than Bitcoin. The ECB policymaker says fiat-pegged crypto will have a place in the legacy financial system.


We Prefer Fiat-Pegged Crypto

According to Bloomberg, Villeroy believes that cryptocurrencies pegged to fiat will be the ones to experience greater utility within the mainstream finance apparatus. Speaking in Paris on Tuesday (May 14, 2019), Villeroy, a frontrunner for the ECB Presidential seat opined:

The Bank of France is “observing with great interest initiatives in the private sector which aim at developing networks within which ‘stable coins’ would be used in transactions involving ‘tokenized’ securities or goods and services.” These are quite different from speculative assets like bitcoins, and more promising.

Of Course, Central Bankers Prefer Stablecoins to Bitcoin

Villeroy’s comments should come as no surprise as bankers haven’t hidden their dislike for Bitcoin and its ability to disrupt their stranglehold on global finance. The disintermediation of the payments system is in many ways an attack on their bottom-line.

Answering questions during the ECB Youth Dialogue on Wednesday (May 8, 2019), ECB President Mario Draghi described Bitcoin as not being a “real currency” but more like an asset, saying:

A euro is a euro – today, tomorrow, in a month, it’s always a euro. And the ECB is behind the euro. Who is behind the cryptocurrencies?

Draghi fails to mention that questionable monetary and fiscal policies which are often political have a negative impact on the purchasing power of fiat currency. One BTC will always be worth one BTC.

In February 2019, the U.S. Federal Reserve did a complete 180 reportedly under duress from the White House to adopt a more dovish stance. Several commentators say quantitative easing and negative interest rates will put the mainstream market on the path of another major collapse.

$2,000 in Less than Five Days

While uncertainty reigns in the mainstream market, Bitcoin continues to rise even higher, adding more than $2,000 in price value in less than a week. BTC is up more than 120 percent since the start of 2019.

This recent parabolic advance has coincided with renewed institutional interest from brokerage giants and investment firms alike. TD Ameritrade, Fidelity Investments, and E-Trade plan to debut BTC trading for institutional clients.

Bakkt on Monday (May 13, 2019) announced that it would begin testing its physically-settled BTC futures contract in the summer. The company also says it is close to obtaining the green light from the U.S. Commodity Futures Trading Commission (CFTC).

Do you agree that the banking class is running scared of Bitcoin? Let us know your thoughts in the comments below.


Images via Twitter @ecb, wikimedia.org

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