Bitcoin could be boosted by the current political unrest Hong Kong as the upper and middle classes are reportedly starting to move their assets offshore.
Hong Kong Begins Moving Wealth Offshore
Fears over the hated extradition bill, whose introduction the Hong Kong government has only suspended but declined to withdraw, are causing the wealthy to start moving their capital from Hong Kong to offshore.
People in Hong Kong vehemently oppose a proposed bill, which would give authorities the power to deport those suspected of crimes to mainland China.
In protest, Hongkongers have been staging massive street demonstrations for several days, with varying degrees of violence. These demonstrations have caused widespread alarm, particularly for both government and business.
On June 10, 2019, the US State Department warned that “the amendments could damage Hong Kong’s business environment and subject our citizens residing in or visiting Hong Kong to China’s capricious judicial system.”
Moreover, the city is already suffering from liquidity problems, fueled in part by the China-U.S. trade war. Many now fear that if the extradition bill passes, it will increase capital outflows, thus further reducing liquidity.
As a consequence, rich people are now focusing on how to move their wealth offshore. According to Reuters,
Some Hong Kong tycoons have started moving personal wealth offshore as concern deepens over a local government plan to allow extraditions of suspects to face trial in China for the first time, according to financial advisers, bankers and lawyers familiar with such transactions.
In addition, many middle-class Hongkongers are withdrawing their money from Chinese banks in protest.
Even if you don't listen to the people, maybe you should listen to the money. Middle-class taking money out of Chinese banks in anger at #ExtraditionBill … could this be the start of a new spontaneous campaign?https://t.co/g21xAKVArz
For many, these events explain in part Bitcoin’s present trajectory towards the $9,000 USD price mark.
HK Authorities Not Withdrawing the Extradition Bill
Hong Kong authorities are now backing down. However, they are not withdrawing the bill.
On June 14, 2019, Hong Kong Chief Executive Carrie Lam announced that she was suspending the extradition bill she was trying to push through the Hong Kong Legislative Council.
But the mere suspension of the bill does not satisfy protesters. Therefore, they will go ahead with another massive demonstration on Sunday, June 16.
Thus, Lam’s latest move will not remove uncertainty from the political and business environment for a long time because she has not set a date for the next step forward.
Earlier this week Bitcoinist reported that Hong Kong is already seeing an uptick in Bitcoin trading volume on LocalBitcoins platform.
If the political unrest continues, it will likely further encourage the rich and the middle-class to protect their assets by moving it elsewhere from the former British colony.
Hong Kongers, therefore, may already be eyeing the world’s first apolitical and borderless store of wealth, i.e. Bitcoin, to prevent the government from tracking their private data and confiscating their wealth. In fact, China is no stranger to paying a premium for cryptocurrencies to not only trade and invest but also as a means to circumvent capital controls.
In October 2018, a Chinese court issued a ruling saying there is no prohibition on owning and transferring bitcoin in China.
Will some wealthy Hong Kongers choose Bitcoin to protect their wealth? Let us know in the comments below!
The full list of partners working with Facebook to host its new crypto stablecoin has gone public – and already sparked fears of mass data collection.
Facebook Crypto Nets Giants Of User Data
Published by cryptocurrency news outlet The Block June 14, the partners for the project variously dubbed ‘Libra’ and ‘Facebook Coin’ make for revealing reading.
We know that Facebook is charging $10 million to run nodes for its cryptocurrency. Bitcoinist even uncovered a few who’d paid it. So I’m launching a revolutionary new ‘currency for the internet’. Who do I need to get on board?
Well I need some on-ramps, so payment providers like Visa and MasterCard. Why not throw in PayPal, Stripe and Pay U too? The more the merrier.
Clearly I also need some merchants and service providers to give users an outlet to spend their ‘internet money’. Well you can buy everything on eBay, and it certainly did wonders for PayPal. People spend money on Uber, although some insist on spending it with Lyft. And music streaming… so Spotify is a shoe-in.
Add in a few Blockchain-related companies, so as not to alienate the crypto crowd, and a sprinkle of non-profits to make me look good, and we’re golden.
Oh, and some venture capitalists, obviously. You can’t do anything without venture capitalists these days.
Facebook ‘Gatekeepers’ Could Spy And Ban
So yeah, for the launch of a payment ecosystem, Facebook has several boxes checked with its launch partners. But then we come back to the fact that these ‘partners’ have each paid $10 million for the pleasure.
Facebook has stated that it does not intend to control Libra (or GlobalCoin, FacebookCoin, or ZuckerBucks if you prefer?). Instead, after launch it will hand control to the ‘Libra Foundation’, essentially made up of all of these launch partners.
Facebook, Coinbase, Mastercard, Stripe, Paypal and other gatekeepers of the finance and tech establishment want to create a global currency so they can ban you from both spending and making money on the internet for WrongThink.
Uber certainly didn’t need to pay $10 million in order to accept the coin for ride-sharing services. Nor did Visa need to pay to become an on-ramp. A more likely scenario would see Facebook courting companies like these to attach themselves to the project.
So what are these companies paying for? (For now, we’ll assume that the non-profits didn’t pay, and are genuinely just token image-improvers.)
$10M Surveillance Capitalism?
This is not a ‘brave new world’ of borderless convenient money, but a ‘Big Brother’ scenario. The current gatekeepers of finance and tech are moving to preserve the power that they see cryptocurrency eroding.
Uber could very easily start to accept Bitcoin 00 (or any other crypto) payments, without spending $10 million. Is Facebook suddenly interested in finance and cryptocurrency? Or is it still treading the only path it knows, the data industry.
As Coinshares’ Meltem Demirors points out, “this is less about payments and more about privacy and data gathering. SURVEILLANCE CAPITALISM Y’ALL.”
$10 million for access to all that lovely data starts to sound like a bit of a bargain. And with the proposed level of KYC, that really is going to be some useful information.
Facebook coin is about revolutionizing data, not finance.
Why would Ebay, Uber, Lyft, Coinbase, Stripe, Visa and Mastercard care about governing the coin?
More than likely, that $10 million for a node is an investment to receive the transactional data going through said nodes.
After over a week of consolidation, bitcoin price has started to move again as we enter the weekend. Many had anticipated a selloff and larger correction, which still may come, but at the moment the bulls are back in play as BTC breaks resistance.
BTC/USD Breaks Resistance
From an intraday low of around $8,200, bitcoin price shifted gear and broke this resistance level to push to a high of $8,730 a few hours ago during early Asian trading. The 6% gain has had the usual effect of lifting most of the altcoins with it. Bitcoin volume has also increased to its highest level for over a week which is back above $20 billion.
At the time of writing, BTC 00 had retraced slightly but was still trading at a two week high of $8,650.
BTC prices 1-hour candles – Tradingview.com
Bitcoin Correction Fears Fading
Now that the expectations of a massive correction have started to dissipate, and the head and shoulders formation has broken down, traders and analysts are turning to the charts to map out bitcoin’s next move.
Analyst Josh Rager has shared two possible scenarios revolving around a resistance level at $8,566.
Battle at the $8566 resistance. Two possible scenarios:
1. Close above this level and continue up to $8750+
2. Close below level, retest $8k area followed by push back up to $8750+
The next couple hours will be key for 4hr and daily close.
It turns out that the first scenario was the correct one as the daily candle closed at $8,700. BTC is currently sitting at the next resistance level so a move above this could take it back to $9k once again. The opposite would be a pullback to the $8,400 zone in the short term.
Trader ‘CryptoFibonacci’ has been looking at the futures charts which also confirms that the head and shoulders are now null.
So, the “possible” Head and Shoulders pattern is null and void IMO. The futures closed right close to the 61.8 retrace. Another gap is possible, but the Squeeze indicator is still not giving any signal at all.
So, the "possible" Head and Shoulders pattern is null and void IMO. The futures closed right close to the 61.8 retrace. Another gap is possible, but the Squeeze indicator is still not giving any signal at all. #BTC#bitcoinpic.twitter.com/DACRHN5kY6
The move has taken bitcoin dominance back over 56% and lifted total crypto market capitalization by over $10 billion in the last 24 hours.
Total market cap is now around $272 billion, its highest level since June 3. The rest of the pack appears to be slowly following their leader but gains are a lot smaller as bitcoin is clearly in the driving seat this Saturday morning.
Will bitcoin hit $9k this weekend? Add your thoughts below!
Bitcoin’s improving fundamentals and the arrival of institutional investors could impact the volatility and price action of future rallies and corrections.
The Nature of Bitcoin Rallies will Change
Aaron Brown, the author of a recently published op-ed in Bloomberg, believes that the next sustained Bitcoin rally could be more measured as it will be propelled by fundamentals and global financial events rather than FOMO.
According to Brown, the boom and bust nature of the cryptocurrency market is not likely to change immediately and if future price action mirrors previous bull markets then Bitcoin could rise to $60,000 to $400,000 before declining sharply.
Brown argues that the last two rallies in 2013 and 2017 were primarily driven by retail investors and that 2019 is different as the current $260 billion cryptocurrency market cap is much larger than it was in 2013 ($1 billion) and 2015 ($3 billion).
Furthermore, today there are significantly more cryptocurrency investors and in 2018 more than $30 billion of institutional and investment capital went toward building new platforms.
There is also more clarity on the regulatory front and with major institutions like Facebook, Goldman Sachs, JPMorgan Chase, and Fidelity investing in the sector, Bitcoin’s price action could be more measured in 2019.
Though the overall landscape appears robust, Brown cautions that this does not negate the possibility of a bubble and crash but as the sector matures so does the possibility of the market providing ‘predictable’ returns with the occasional 20% correction instead of the drastic 85% corrections which typically take place at the end of Bitcoin’s bull cycles.
Bitcoin Options Contracts Provide Valuable Insight
Looking into Bitcoin options data provides a little foresight into how Bitcoin price 00 action could differ in 2019. In November 2017 Bitcoin contracts traded with an implied volatility above 300% and investors believed there was a 25% chance that Bitcoin could gain above $10,000.
Currently, BTC is nearly the same price it was around November 2017 and the same contract sells at approximately an 85% implied volatility which means there is a 15% chance of Bitcoin overtaking $10,000 in a month.
Accordingly, if Bitcoin reaches $10,000 then the expected high is around $11,000 and if it does not then the expected price is around $7,500. While this is a risky bet, it pales in comparison to the risk investors took on in 2017.
Market Correlations Matter
Bitcoin’s correlation to the S&P 500 Index also provides some guidance on 2019 price action. When the correlation is closer to zero for a quarter, Bitcoin tends to average high returns in the following quarter but volatility also increases.
On the other hand, when Bitcoin responds to market fundamentals, regardless of the correlation, the average returns tend to be lower or even negative.
As shown by the chart above, Bitcoin’s current correlation with the S&P 500 is near -0.2 and this is an area where volatility has not reached extremes in the past. Brown also pointed out that since mid-2018 Bitcoin’s correlation to the S&P 500 only hovered near zero for a couple of months in the first few months of 2019 whereas the correlations were near zero from September 2017 to January 2018.
According to Brown, Bitcoin appears to flip between positive and negative correlations with the S&P500 and intense price increases tend to occur when the correlation is near zero.
For this reason, Brown believes that the upcoming cycle could be different and he expects that over the summer prices will react to news about market fundamentals instead of FOMO.
What do you think about Aaron Brown’s theory? Share your thoughts in the comments below!
Twitter and Square CEO Jack Dorsey has repeated his belief that only Bitcoin will become the global currency of the internet.
Bitcoin Can ‘Align’ The World
Speaking in an interview with Quartz on June 14, Dorsey, who has made a name for himself as a Bitcoin advocate, said that the world was in a unique position to change the financial system. Blockchain-based cryptocurrency, he said, would be that change.
“This is our one opportunity to align every community, and every country, around the world, which I think provides a lot of clarity, enables a lot more innovation, and most importantly, creates a probability of much greater access for more people,” he told the publication.
Bitcoin is enjoying a resurgence in public consciousness on the back of two months of price rally and increased media attention.
For Dorsey, cryptocurrency is one of just two “big secular trends” in worldwide finance – and Bitcoin, with its “amazing brand,” will take the poll position. The other trend is a shift toward algorithm deployment.
“Because (BTC) is a scarce resource, it has a probability of always increasing in value, which makes you consider a lot more how you spend it,” he continued.
Because you know that spending it today—it might go up in a week. And purchasing coffee, or a new sofa, with that really puts everything in perspective. Do I really need this? So from a psychological perspective, I think that’s interesting.
Dorsey Pledges To Take BTC Global
As Bitcoinist reported, Dorsey became revered among cryptocurrency users this year when he joined in and publicized a transaction relay to demonstrate the effectiveness of the Bitcoin Lightning Network.
Subsequently, he revealed plans to integrate cryptocurrency functionality in both Square and Twitter, the former having offered a Bitcoin wallet in its Cash app since 2018. A dedicated off-shoot dubbed ‘Square Crypto’ has also appeared.
Asked about alternatives to Bitcoin, Dorsey used his latest interview to deliver a snub to centralized cryptocurrencies, specifically the secretive token under development at Facebook.
“…We need a currency for the internet. And the internet being an entity that isn’t controlled by any company or any one government, that is for the world and for the people of the world,” he said.
That is what I would want to help make happen. I would hope that all private companies can see the value of having a stateless currency that all people can access, and is not bounded or constrained by any one corporate entity.
As Bitcoinist noted, new global regulations targeting cryptocurrency exchange have received condemnation for their inability to understand decentralized blockchains such as Bitcoin.
What do you think about Jack Dorsey’s forecasts? Let us know in the comments below!
Bitcoin buyers are attempting to reject the bearish rising wedge pattern right now, after a short squeeze on the Bitcoin futures market elevated the price beyond $8,300. Will bulls be able to maintain this momentum, or will the heavy selling pressure prove too much to handle? Let’s take a look.
Bitcoin Daily Chart
On the BTC/USD daily chart, we can see that the price is still constricting inside the rising wedge pattern that we identified in yesterday’s analysis. Surprisingly, however, bullish traders were able to successfully close above the strong $8,200 resistance zone (red area) yesterday which was highlighted as a key historical level.
The unexpected break above this price point has subsequently caused a large short squeeze across the Bitcoin futures market, with Bitmex reporting a $13 million short liquidation in the last hour alone – according to figures provided by Datamish.
This short squeeze is undoubtedly what’s driving Bitcoin’s price 00 over the $8,300 level right now and closing the gap between the $8,400 above.
Looking at the depth of sell orders around the next bull target however, we can see that bear traders have already started loading up in anticipation of a sell-off (see below).
A poignant battle now wages between BTC buyers and sellers.
If bulls capitulate against the mounting selling pressure at the $8,350/8,400 level then it’s likely that BTC’s price will breakout bearish from the rising wedge and tank towards lower supports. Namely the $8,000, the $7,800 and $7,610 levels.
We could, however, potentially see bullish traders reject this rising wedge pattern if enough buying volume arrives to counter the sell-wall. A break above this level could trigger a significant FOMO rally towards the next psychological level at $8,500 where bulls will likely run into the second wave of bearish opposition.
On the MACD indicator, we can see a marked decrease in selling volume on the histogram as it heads towards a bullish flipping. The 12-MA is also closing in on the 26-MA above as momentum begins to turn favorably bullish.
Right now, we are waiting to see if the price can confidently close above the upper resistance of the rising wedge over the 4-hour chart, to confirm that bulls have rejected the bearish pattern.
Which way do you think Bitcoin will breakout of the rising wedge pattern? Let us know your thoughts in the comment section below!
[Disclaimer: The views and opinions of the writer should not be misconstrued as financial advice.]
Weiss Ratings revealed yesterday that it has upgraded Bitcoin from a ‘B-‘ to a ‘B’. However, it still recommends holding out for a price correction before buying.
Highest Rated Bitcoin Just Gets Better
The, perhaps most respected, independent ratings agency, Weiss rates cryptocurrencies based on four factors, technology, adoption, risk, and reward. These are often split to give two ratings, one for tech/adoption, and one for risk/reward. A combined average of these is used to work out an overall rating.
Bitcoin’s tech/adoption score has been rated a solid ‘A’ for some time now, largely thanks to improvements such as Lightning network. The risk factor has always dragged it, and all cryptocurrency, down.
However, recent price gains have improved the reward, bumping risk/reward up to a ‘C-‘, and giving Bitcoin an overall rating of ‘B’
Top Of The Heap, But Not A Buy… Yet
So Bitcoin rules the roost, according to Weiss. After ten years at the top, the grand-daddy of all cryptocurrencies still sets the standard by which others are measured.
But despite the upgraded rating, vastly improved adoption, and significant technological evolution, Weiss doesn’t recommend buying bitcoin at the moment.
The reason? Bitcoin’s success is its downfall; those recent price gains have led Weiss to anticipate a “substantial price correction.” After which, we are recommended to “buy with funds we can afford to risk”
Bitcoin is now rated 'B'. Our recommendation: Wait for a substantial price correction. Then buy with funds you can afford to risk. Find out more details about our rating of BTC:
That’s a far more conservative message than the ‘best buying opportunity since 2015’ that it heralded last month. But Weiss still says that we are enjoying the first phase of a new bull market, and that risk/reward rating will continue to improve as a sustainable bull market unfolds.
Some People Are Never Happy
So, Weiss tweeted a positive development for Bitcoin. Surely nobody can be upset or offended by that? Anyone? Anyone? Bueller?
Well, there was one section of the crypto community which had something to say about the matter. Can anyone guess who it might have been?
Yep, the Ripple army seems to have taken Weiss’s tweet as a personal affront. Three out of the five comments on the post mention XRP, seemingly because Weiss had omitted to mention it in the actual tweet.
How very dare Weiss not mention XRP in a tweet about Bitcoin. I mean, it’s not like Weiss is also very positive about XRP or anything. Or like Ripple is also graded a ‘B’, along with Ethereum.
Oh no. I mentioned Ethereum in a sentence about Ripple. Well that’ll be the floodgates open then…
What do you think about Weiss’ ‘B’ rating for Bitcoin? Share your thoughts below!
Doubts were raging over Italy’s plans to issue a new currency called ‘mini-bots’ this week after it appeared it would have nothing whatsoever backing its value.
Italy’s Paper Backed By Nothing
Italy, which is suffering from a crippling debt crisis, is constantly seeking a way out of the red, but its populist government has failed to strike any form of deal with the European Union.
The right-wing administration made bold spending promises to the electorate when it rose to power, but has been on a collision course with Brussels ever since.
The latter is demanding Italy decrease its debt, and the Liga and Five Star Movement parties now think they have a solution: mini-bills of treasury (mini-BOTs).
Essentially a parallel currency – illegal under EU law – mini-BOTS would allow debts to be paid and more freedom for Italian taxpayers hungry for a way out, the government argues.
However, despite the issues surrounding the euro, commentators have already decried the concept of mini-BOTS due to the lack of any meaningful value supporting them.
Ghosts Of ICOs And The French Revolution
Even cryptocurrency figures, traditionally opposed to the paper bills backed by no hard asset or scarcity, are ridiculing the idea.
“(Italy’s) proposed Mini-BOTS are actually more like ICO ‘utility tokens’ than the French Assignats were — the latter were (at least on paper) backed by lands confiscated by revolutionaries, whereas mini-BOTS aren’t backed by anything,” Adamant Capital founder Tuur Demeester wrote on social media June 13.
Demeester was commenting on research into the plans by monetary historian Rebecca Spang. For her, Italy’s mini-BOTs would also fail due to an ultimate lack of willingness to accept them as currency on the part of those who have the choice to use fiat.
“…What makes a money BAD isn’t what is behind it, what backs it, but who will accept it. And when rich and powerful people or institutions won’t accept ‘bad money,’ it’s left in the hands of the poor and is poor money indeed,” she summarized.
As Bitcoinist reported, ICO utility tokens, even those with some form of backing, have all but failed due to the myriad regulatory issues surrounding their issuance and trading.
Not everyone is convinced that the initiative will ever see the light of day in reality. Rome, say experts, is likely continuing its policy of pressuring the EU by threatening to make its third-largest economy go rogue.
“I want to underline that there is no study of any measures aimed at… issuing [mini-BOTs],” Italy’s economy minister, Giuseppe Tria, told parliament on Wednesday, quoted by the New York Times.
Nonetheless, Liga has devoted considerable energy to finding a euro alternative. Claudio Borghi, the politician who worked as an advisor to the party’s quasi-leader Matteo Salvini, has even produced a dedicated guide to mini-BOTs.
Do you think it is right to compare Italy’s mini-BOTS to ICO utility tokens? Let us know in the comments below!
Bad news for U.S. citizens trading on Binance. They have less than 90 days before their trading functionality is disabled. But CZ has a plan. ‘Binance America’ is coming.
Less Than 90 Days to Cease Trading on Binance
Binance is unable to provide services to any U.S. person. Binance maintains the right to select its markets and jurisdictions to operate and may restrict or deny the Services in certain countries at its discretion.
If that wasn’t clear enough, the company made a further update about an hour ago that said as part of its continuing compliance efforts:
But Binance America Is Coming
Thanks to draconian laws, U.S. citizens get a raw deal when it comes to trading cryptocurrencies. However, those left feeling deflated over the latest news have some cause for celebration, Binance.US is coming soon.
Just moments after, the company officially announced its partnership with BAM Trading Services Inc. in order to offer trading services in the U.S.
How will the exchange boldly go where no man (except for the likes of Huobi, and Bitflyer) has gone before? Succeed where others failed? Well, because it’s Binance and this company is going to take over the world.
By teaming up with BAM, the exchange will be able to effectively license out its technologies to its U.S. partner who is fully regulated with FinCEN approval. Changpeng Zhao (CZ) said:
We are excited to finally launch Binance.US and bring the security, speed, and liquidity of Binance.com to North America… Binance.US will be led by our local partner BAM and will serve the U.S. market in full regulatory compliance.
This statement was also confirmed in a brief post on the BAM blog:
BAM Trading Services is thrilled to announce a partnership with global leading cryptocurrency exchange Binance to launch Binance.US.
However, no specific details as yet. U.S. traders will have to “stay tuned” for more updates on Binance America.
BNB Token Not Happy About the News
Binance Coin (BNB) 00 fell by 5.27% upon the updated T&C and partnership news and is currently trading at around $33.78 USD, showing that not everyone is happy about the road ahead.
Though perhaps Binance.US may just be a move to buy the company time to get U.S. regulators off its back while its DEX grows. At which point, it will move them all over to the decentralized platform, which cannot, in theory, geo-block them.
Of course, that’s purely speculation at this point since none of us are privy to the inner tactics of the Binance team. Moreover, even if U.S. traders did opt for the DEX, that won’t exempt them from regulation. KYC will pretty much kill that plan.
Whichever way the company decides to move forward, if CZ & Co. can pull off penetrating the U.S. fortress, it could set a precedent for other exchanges, opening the gateway to this major market. One in which the likes of Fidelity, TD Ameritrade, and Bakkt are all entering as well.
Will Binance America succeed in entering the U.S. market? Add your thoughts below!
Big companies like Visa and PayPal are reportedly willing to pay millions for the privilege of running a node on the Facebook cryptocurrency network.
Facebook’s foray into crypto has been met with mixed reaction. Some are hailing it as the next step in a global financial revolution, while others have expressed concerns over the company’s shady past record when it comes to security, privacy and data abuses.
Nevertheless, U.S. tech and finance giants clearly want a slice of the Facebook crypto pie. According to the Wall Street Journal, a number of financial and e-commerce companies, venture capitalists and telecommunications corporations have already pledged to back the new project.
Big Names Want In On ‘GlobalCoin’
The report added that over a dozen firms, which include Mastercard Inc, Visa Inc, PayPal Holdings Inc, Stripe Inc, Booking.com, and Uber Technologies Inc, have formed a consortium and agreed to pledge $10 million each to secure governance over the new crypto coin.
It was reported last month that the social media giant was recruiting backers and aimed to raise $1 billion for the crypto project.
The currency dubbed ‘Libra’ or ‘Global Coin’ is expected to be officially announced next week. The stablecoin will be pegged to a basket of government-issued currencies — similar to the IMF’s SDR (special drawing rights) basket of fiat currencies — to avoid the volatility of cryptocurrencies.
The report was not very complimentary of bitcoin stating,
It has been a decade since bitcoin was born, yet consumers hardly use it—or the hundreds of other cryptocurrencies—to pay for things. Facebook is betting it can change that with a crypto-based payments system built around its giant social network and its billions of users.
The usual regulatory concerns have been raised as governments get anxious about the potential for money laundering. According to the WSJ, Facebook won’t exactly control the new coin, neither will the individual members of the consortium, which is known as the Libra Association.
Citing people familiar with the situation, it added that some could serve as nodes for blockchain transaction validation.
Facebook is still the direct developer of the greatly guarded technology so its influence over the coin is likely to be as strong as it has over the data on the social media platform. Just like Google, Facebook has a highly secretive algorithm that determines what users can and cannot see in its news feed.
‘Facebook Coin’ Will Boost Bitcoin
Co-founder and partner at Morgan Creek Digital Anthony ‘Pomp’ Pompliano said that the move was especially bullish for Bitcoin adoption considering two of the backers are Visa and Mastercard.
Facebook has secured Visa and MasterCard as two of the backers for their new cryptocurrency.
Very positive signs for future adoption of Bitcoin
Participating in the Libra project allows companies like PayPal, Visa, and Mastercard to exert some level of control over the new ‘cryptocurrency’ and its centralized governance. This makes the new coin unlike Bitcoin that’s an open-access cryptocurrency allowing anyone to download the software and run a node.
Therefore, ‘Facebook Coin’ is unlike to pose any real threat to the future of decentralized peer-to-peer finance. Instead, it already looks to be more like a competitor to banks or even Starbucks Rewards than P2P ‘digital gold.’
Will Facebook crypto be a threat to bitcoin? Add your thoughts below.