Opinion: Because Bitcoin will be fine

December 2, 2018 Cryptocurrency

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Next year, on the digital money market, several key events will take place that can seriously affect the situation of the Crypto community and Bitcoin.

In 2018, the prices of cryptocurrencies have been continuously decreasing e Bitcoin (BTC) 00 has already fallen in the price of 80% from $ 20,000 to $ 4000. The total capitalization of the blockchain industry decreased by 84%. If, in January, the market capitalization was $ 830 billion, then by the end of November the figure to break down at $ 130 billion.

Recently, the interest in cryptocurrencies has returned to growth and the market has risen to the values ​​of April of this year. The attitude of users towards digital currencies has also changed. Second Google Trends, most people now wonder if the bubble has exploded, if the current situation will lead to the depreciation of digital currencies and their final fall, given that the mood in the market is not very positive. Bitcoin has repeatedly lost the price a lot, and if we compare its charts from 2018 with the values ​​of 2014 we can see that the sector is currently in a similar situation to what it was in four years ago.

But this situation only applies to the prices of cryptocurrencies. Much has changed since then in terms of market development, such as governments have begun to regulate the digital industry, while others like the Chinese authorities have forbidden after all.

Opinion: Because Bitcoin will be fine

Large financial institutions are constantly announcing plans to launch cryptocurrency products and integrate the blockchain into their current business model. In September, global banking firms UBS Group AG, Santander, Deutsche Bank, Bank of New York Mellon Corporation and British broker ICAP joined to issue a new digital currency based on blockchain technology, which should be used to execute bitcoin transactions.

However, the industry is only at the dawn of its development, so there are many obstacles that prevent companies from entering the market.

On September 20, large representatives Russian banks declared their readiness to work with cryptocurrencies, but they can not start making these services because of the lack regulatory authority in the country. Bank officials also said that there is considerable customer interest in digital currencies and have announced active tests on blockchain technologies.

Many large organizations are preparing to enter the cryptocurrency market in 2019. These events can significantly change the situation in the sector, and the price of Bitcoin will rise again, as predicted by well-known experts such as the head of Fundstrat Tom Lee with his $ 15,000 forecast of the marco, president of the New York Stock Exchange Jeff Sprecher with his "Bitcoin and digital resources are here to stay" appeal, and billionaire Mike Novogratz. L & # 39; last he believes the market could see new highs in 2019:

Basically I think you'll see a great fit in 2019, 2020, "he said." A lot of objects in the digital world, the e-gaming space, are low-value objects, so I think people will be more comfortable in participating at the blockchain.

Bakkt: a platform for institutional investors

The operator of the New York Intercontinental Exchange (ICE) is preparing to to launch Bakkt, a platform for institutional investors. His first product will be Bitcoin Futures with the support of physical resources. The plan foresaw that the platform would start operating on December 12, 2018, but the start had to be postponed to January 24, 2019, due to the large influx of customers.

At the end of November, head of Bakkt, Kelly Lefler, said that the current value of Bitcoin is not important for the company. According to her, it is now important to compensate for the missing infrastructure elements and the un-implemented application scenarios, which will positively influence the development of the sector.

Loyalty investments

The holding company of Fidelity Investments, which manages assets worth $ 2.1 trillion dollars launching its own cryptocurrency investment platform. The organization will not open an exchange for the trading of digital currencies, as it is preparing to release products for the storage of large volumes of activities of institutional investors interested in the industry.

According to Fidelity president, Tom Jessop, market analysts, hedge fund managers and family capital management divisions are actively involved in the development of cryptocurrency products and tools. As such, the expert believes that the situation in the sector can change for the better.

Bitcoin ETF and SEC

The United States Securities and Exchange Commission (SEC) is studying an application to launch a Bitcoin ETF from the SolidX start of cryptocurrency, which submitted the application in March 2016. On June 5, it was Signed up of VanEck. The regulatory authority has not yet taken a decision on the matter, but a final declaration is expected to be published by March 2019.

According to many experts, this is a very important event for the cryptocurrency market. Wall Street Investor and Financial Advisor, Ric Edelman he believes that the market situation will change and will no longer resemble the "Wild West" after the approval of the cryptocurrency ETFs.

He also shares Sprecher's opinion that Bitcoin is "here to stay".

Second At the head of VanEck, Gabor Gurbacs, a new instrument could be approved in the near future, as the company has never been so close to receiving a positive verdict from the regulator.

This is not denied by the SEC representative, Hester Peirce, like her he believes that the agency should be more loyal to Bitcoin-ETF, while the president of the Securities and Exchange Commission, Jay Clayton, said that this result is possible only after the problem with market manipulations has been resolved.

Bitcoin futures from the Nasdaq

November 29, Bitcoinist reported that NASDAQ, one of the largest exchanges in the world, is preparing to launch futures for Bitcoin in collaboration with VanEck. The new product, which will be launched in the first quarter of 2019, will be focused on the spot price of Bitcoin by many exchanges, unlike the CME and CBOE, which use information from four and one platform respectively.

The head of VanEck, Gabor Gurbacs, confirmed this information and pointed out that if 2018 is considered the year of regulation, 2019 will be the year of implementation. He said that the new product will be in the form of version 2.0. of regulated futures contracts.

After opening of futures on the Chicago stock exchanges in December 2017, the value of the first cryptocurrency reached an all-time high of $ 20,000, and in January 2018 the capitalization of the sector exceeded $ 830 billion.

Services from large banks

Many large banks, such as Goldman Sachs, Morgan Stanley, CityGroup and others are preparing to launch cryptocurrency futures, derivatives or simply to provide their customers with access to digital currencies. As reported by Bitcoinist on October 31st, Goldman Sachs It has already begun to attract customers to launch Bitcoin derivatives, which would be similar to CME and CBOE futures, but would not be traded on the exchange.

At the beginning of November, Morgan Stanley published a relationship that calls Bitcoin "a gold mine for institutional investors", where it also makes a parallel between the collapse of Bitcoin in 2018 and the collapse of the Nasdaq in 2000 and asks "if the bear market is coming to an end at the end of the Nasdaq ".

In September, Bloomberg, citing anonymous sources, he wrote that Morgan Stanley is preparing to launch swaps for the first cryptocurrency. The company already has the technology to launch the new service and is now studying the level of demand for it among large customers.

In mid-November, the head of the cryptocurrency division of Susquehanna's commercial giant, Bart Smith, He said that the launch of products from Fidelity and ICE would help increase Bitcoin's liquidity and attract large sums to the market, which would positively influence its development. Bitpay's commercial director, Sonny Sing, shares the opinion and is confident that these events will once again increase the price of the asset next year and, in 2019, will cost between $ 15,000 and $ 20,000.

Regulation and infrastructure

The experts in the field of finance and managers of large capitals agree that cryptocurrencies need serious regulation and need a fundamental infrastructure. If the first factor depends on the regulators, then the latter is for blockchain projects. But, first of all.

In 2017, legislators from different countries studied the question of regulating cryptocurrencies and discussed this problem at intergovernmental level at the G20 summit. After the finance ministers he took a more positive approach to cryptocurrencies at the 2018 G20 meeting in Argentina, Bitcoin prices exceeded $ 9,000.

Countries such as Estonia have achieved significant success in solving the problem of cryptocurrency regulation by implementing the concepts of e-government and residence, as well as the use of blockchains to protect access to citizens' personal data. . Malta is in the same league and has secured the status of an encrypted island.

He said Joseph Muscat, Prime Minister of Malta, during a speech at the 73rd session of the United Nations General Assembly:

Blockchain makes cryptocurrencies – the inevitable future of money – more transparent, since it helps filter good business from bad business, but these generalized accounting technologies can do much more.

This state position in relation to cryptocurrencies is suitable for projects that intend to implement a large-scale infrastructure. The FOTON Crypto-bank decentralized is developing a solution to conduct multi-currency transactions with a single integrated exchange system fiat and cryptocurrencies and instant payments for goods and services. In addition to relatively young projects, a number of important exchanges have made their choice for Malta, including Binance, OKEx, ZB.com, as well as famous blockchain projects like TRON, Great, cubits, Bitpay and other.

The BitPay website States:

BitBay has been conducting analysis for many months in the most friendly jurisdiction for cryptocurrency in the European Union. The productive discussions with the Government of the Republic of Malta and the friendly business climate provide BitBay with the certainty that the choice of Maltese jurisdiction is the best solution.

The current market situation associated with a significant decline in the capitalization of cryptocurrencies will neutralize speculators and projects with no real value and proven liquidity. In the near future, we will probably see a recovery in the market and its growth thanks to a more developed infrastructure and a civilized regulation.

Disclaimer: this publication should not be considered as investment advice and was written solely for the purpose of providing an overview of the market and expert insights.

[Note: This is a guest article submitted by Julia Magas]

What are your thoughts on the hopes for the future of Bitcoin? Do not hesitate to let us know in the comments below!

Images and media courtesy of Bitcoinist archives, Shutterstock, Twitter (@CNBCFastMoney, @coindesk, @ricedelman).

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