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Luno highlights rise in use cases for crypto in Africa

Advanced technology is something that is accepted worldwide in a short duration. Though full-fledged use of the same may take some time, it penetrates in different markets soon. Something similar is happening today with the spread of cryptocurrencies and its related technologies. Though some countries have already started using them, and some more are still in the phase of preparing a platform, African countries also have shown a sign of a better move in this direction. 

According to a report published by Luno, there is great potential for cryptocurrency in the African region. It highlighted many factors that can trigger the crypto rally in this region. Other than that, hurdles for this growth were also discussed in the reports. Let us take a look at how crypto is positioned in this part of the world. The demand for this type of digital wallet is growing across the globe, and Africa seems to be no exception. It is interesting to see some positive developments in this regard in recent years.

Most promising region for cryptocurrency

For the world economy, African countries have special significance as they are known for their development and boosting the economy with vast development in almost every segment. When you observe the region of Africa, the striking feature is its cultural diversity and how they are different from their neighboring countries. However, when it comes to socioeconomic issues, there are too many similarities between most African countries. As the continent struggles to sustain in this fast-paced world, crypto can become a game-changer as it is practically suited for such regions. While other countries may look at crypto as an investment objective, it can bring in a lot of stability in regions like Africa. In this regard, Africa can be considered as the most promising region for cryptocurrency.

Crypto ownership trends

Take a look at the ownership trends of cryptocurrencies in different nations, and you will be able to understand the potential in the near future. According to Google Trends data, countries like South Africa, Kenya, Ghana, Nigeria, and Uganda list in the top 10 nations that own cryptocurrencies. You will be surprised to know that 13% of the South African populace owns cryptocurrency, and this is a big indicator of the gaining popularity of the cryptocurrency in this region.

Political instability in the African region

The biggest hurdle for this growth is the political instability in this region that has been haunting this continent for many decades. There have been civil conflicts in recent years, and most of the countries suffer from high inflation and other economic problems. The GDP has collapsed in most countries, and there is no sign of revival shortly. There is also a risk of wealth confiscation due to high levels of political instability. In these circumstances, crypto has various threats as well as opportunities in this region.

Future of crypto in Africa

The future looks bright for Africa if things are planned in the proper manner. To begin with, the economic situation going bad can also boost the demand for stable and reliable currencies like crypto in this region. Once the issues with cryptocurrencies are fixed, and most developed countries start owning cryptocurrencies, this region will show more interest in such options. Apart from that, the political stability factor plays a major role as this will help the country make more investments in different assets. There are few African nations that can lead the rally in this crypto world, and this will set the trend for the rest of the continent in the coming years.

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Bitcoin Dominance Growing — What It Could Mean for Altcoins

After getting a lot of attention in the year 2017, the price of Bitcoin started to drop in 2018. Where Bitcoin has started to recover from the 2018 market price decline, altcoin continues to decline. The price of Bitcoin significantly increased in the year 2019. It was under $4000 at the beginning of the year and its value increased around $14000 in the middle of the year.

Altcoins, on the other hand, was strong during the rise of the year 2019. And some people were even calling it an “altseason”. Bitcoin continues to grow from the year 2019 till now but altcoin is slipping its rank of the number 1 cryptocurrency.

People have a different point of views on it. It has created a situation of debate among them as to whether the Bitcoin will continue to grow or not. They are curious whether or not altcoin will come to the first place ever again.

Even if there are least chances of returning the alt season, it is assured that cryptocurrencies are being used widely. The current bull cycle affects the adaptation of the cryptocurrencies.

How Bitcoin Is Performing In Comparison To Altcoin?

When the cryptocurrency created a lot of buzz throughout the world in 2017, Bitcoin rose to the highest mark of $20,000. The altcoin was also high at that time. But things change the subsequent year. Some of the cryptocurrencies even vanished from the industry.

The main reason for a sudden price increase was the hype around cryptocurrency. When the initial coin offering (ICO) became a trend, the cryptocurrency became popular again. The ICO tokens were also used in the altcoin market.

The Bitcoin’s increase was prominent in the year 2017 but the Ethereum was not rising at all. Since the peak of altseason, the price of altcoin has reduced by 80%. The Bitcoin has been dominating the altcoins since then.

Bitcoin Dominance: Will It Continue Throughout In The Future Too?

The price of Bitcoin is increasing to date. People are investing in Bitcoin System but they are also finding other alternatives to invest in the cryptocurrencies. As a result, altseason can rise again. During that time the Bitcoin no longer dominates the market.

When the Bitcoin becomes less popular, the cryptocurrency can fall into the situation of a bull run. The Bitcoin shares can be still recovered from the altcoins. If the market crashes in such a situation, it doesn’t affect the Bitcoins as much as it does the altcoins.

Usually, Bitcoin dominance stays around 60-80%. According to some graphs and market trends, if Bitcoin dominance index falls below 60%, it can be assumed that the altcoin season is going to begin.

It also indicates that the altcoins will be popular for a shorter duration. If the Bitcoin dominance rises from above 40% during the altcoin season, it is a signal that the Bitcoin is ready to replace the altcoins.

This year the altcoins have again faced a bull-run. This rise is also being connected to the number of new coins entering the market. The total number of altcoins is 5000. It is expected to reduce Bitcoin dominance. Thus, the altcoin market can bloom anytime during this year.

The Ethereum 2.0 is all set to be launched in July 2020. This crypto sector is the second largest in the cryptocurrencies. This upgrade can affect the transaction speeds more than anything.

It is expected that in the middle of 2020, the Bitcoin will again outperform the altcoins. One major reason for this bubble is “halvening”. It occurs when the reward to Bitcoin miners is halved after every four years. This also reduces the number of new Bitcoins to sell on the crypto market.

However, although the new bitcoin mining will reduce the other coins will continue to circulate in the market. Facebook, for instance, is going to launch its cryptocurrency. And there are other multinationals too following the steps of Facebook. These major companies can have their own set of effects on the market.

It is entirely difficult to comprehend whether or not Bitcoin will take over the market again. Since many factors are in the support of altcoins. It is too soon to decide anything right now. Bitcoin will have its effects on the market but altcoins are also standing strong.

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Terrorists Still Raise Money Through Crypto, But The Impact Is Limited

The role of cryptocurrency in Terrorism would be minuscule. This is not a way that is embraced by people to finance for terrorism. In this digital world, there are a lot of frauds happening, including money laundering, terrorist financing and breach of data and so on. The United States Treasury Secretary, Janet Yellen stated that cryptocurrencies is considered to be a tool to fund for terrorism. There is a key turn that is taken to fight against terrorism and this has raised many questions. The main question is how dangerous is it if the crypto is in the hands of terrorists to the society as well as the government and the other question that is on the rise is how much risk it poses to the cryptocurrency and block chain industries.

The evidences that are submitted in the recent times proven that the role of crypto currency in the increase of terrorism would be very minute. The cryptocurrency was being used in many of the terrorist financial activities. However, this was not the primary way to receive funds to the terrorist groups. This was stated by the director of Jeanette and Eli Reinhard Program on Counterterrorism and intelligence. Gina Pieters, who is working as the assistant professor in the Department of Economics in the University of Chicago stated that the cryptocurrency can be a tool. However, Yellen chose to say the words carefully. It was stated that this is not a major tool, but is growing. With the growth of cryptocurrency, it will be used in many of the criminal activities.

Dave Jevans, who is the CEO of the Cipher Trace, expressed few of the uneasiness about the treasury secretary words. If some of the great leaders would consider cryptocurrency to be associated with many illegitimate activities, then the regulators would impose stringent rules on the transactions that are carried out through cryptocurrency. By banning blanket cryptocurrency, it would prevent mass adoption and innovation in this arena. The issue must be raised and bring it to the notice of the people. The misuse of this currency would be considered as a geopolitical issue with many trying to avoid the sanctions imposed like in Iran, Russian and Venezuela. The help that is done to the terrorist groups through this cryptocurrency would be worrisome. Though, the financing through cryptocurrency is happening in small amounts and it is traced that out of 37.35 bitcoins, a mere of around 0.00324% is spent on the illegitimate activity. The US has seized the cryptocurrency accounts of three of the terrorist groups in the Middle East. It is the largest seizure of cryptocurrency accounts so far.

There are many Jihadi groups, which are using cryptocurrency for years. The MEMRI observed that there are a few groups who are discussing the usage of cryptocurrencies. The news related to Jihadis and cryptocurrency has led companies to shut the accounts. However, not all the cryptocurrency would address the financial needs of terrorists. However, the cryptocurrencies like bitcoins have improved usability and there is a little evidence gathered and found that there are a few terrorist groups who would use cryptocurrencies. It is essential for these groups to get money without letting the government know about it. The cryptocurrency is found to be the best way to move funds without physical transportation and much risk.

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Prepare to Lose All Your Money’, Warn Crypto Investors

A British analyst has recently said that digital currencies are at a high-speculative risk. Many people have predicted since the beginning of the crypto revolution that investing in a digital currency can be highly risky.

The United Kingdom’s Financial Conduct Authority (FCA) has warned that electronic currency investors are at a danger of losing all of their money. As per an analyst from the UK, investment in digital currencies also pose a compounded risk of scam.

The last few days have been quite dizzying for many cryptic coins. In fact, yesterday, the value of Bitcoins depreciated by almost 20%. Thus, the value of Bitcoin came down to $30,000. Few days back, the value of bitcoin was more than $40,000 per unit. The high fluctuation in the value of Bitcoins may be a worrying situation if you are not an institutional and experienced investor.

Under the same framework, a British specialist and analyst claimed that investments and loan products related to cryptocurrencies like Bitcoins can be in the “Very high risk” category. As per a warning by FCA, if consumers want to make an investment in digital currencies, they must be ready to lose their investment and money.

FCA also opined that cryptocurrencies belong to the category of “High-risk speculative investments.”

Those who buy cryptocurrencies should try to understand what they are investing in and the risk associated with the investment. Consumers should also know that regulatory protections are not applicable in case one plans to invest in cryptocurrencies.

As per a statement by Laith Jalaf, who is a financial analyst, sudden growth in the rate of bitcoin can also create a marker bubble.

Regulators in the UK are clearly concerned about the high risk associated with the crypto asset. In addition to the highly versatile nature of the cryptocurrency, it also leads to scam activities. Many unregulated companies are also targeting customers with different types of marketing collateral.

On one hand where many analysts are saying that investment in bitcoins may be risky, big companies like JP Morgan are promising a future for cryptocurrencies. Asper Analysts at JP Morgan, the price of bitcoin can rise as much as $146,000 and it can easily compete with the value of Gold. It has also the potential to become an alternative currency.

Thus, making an investment in bitcoin should totally depend on the customers and their personal will. Or else, they won’t have any regulatory backup that will save them after the scam and high-scale loss.

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Traditional Banks Provide Digital Currency Custody Amid Compliance Legislation

For banks and conventional organizations that provide services for web platforms, enforcement and laws have become much more relevant than it has ever been. As the value of Bitcoin proceeds to highlight record-breaking all-time peaks, more conventional banks have begun confirming funding for crypto currencies. And big banks such as JPMorgan Chase have taken significant attention in the crypto currency, which had formerly despised Bitcoins. Directly opposed to what Goldman Sachs lately said, the tacticians of JPMorgan recently observed that due to Bitcoin’s rise, the value of gold will be suffering from systemic flows crosswind over the upcoming months.

Reports from some known Faces Regarding the Matter

Although JPMorgan Chase is obviously taking a lighter approach on Bitcoin, by providing consumers storage facilities for crypto properties, several pioneering banks are moving a step farther. FV Bank CEO Miles Paschini announced that in early 2021, the bank would begin providing possession facilities embedded into its network connection.

It would then be necessary for both retail and corporate clients to set up an account for fiat and virtual resource holdings. This is what Paschini has to say – Banks are very well placed to have safe custody and to have a streamlined experience with online banking. Puerto Rico is clearly a developed market for international trade that is well placed to encourage its approved entities to offer the foreign customers with these facilities whilst staying true to the appropriate Bank Secrecy Act and Anti Money Laundering criteria.

For each and every digital resource they choose to keep in their accounts, FV Bank account owners would be granted crypto deposits addresses, as per Paschini. In a safe and protected statutory account connected to the customer’s electronic bank account, the electronic or digital properties would be handled. Via digital banking apps, facilities can be accessible.

Via the Swiss Stock Exchange, Swiss banks are planning to deliver digital properties. It is known as SIX. It is a brand new programme that has recently been developed that helps banks around Switzerland to offer consumers with access to facilities linked to digital properties. It is all set to be launched in 2021.

Banks betting big on crypto?

Wayne Trench who is the CEO of OSL (It is one of the major outlets for digital assets in Asia) and who is also a member of the BC Technology Group, mentioned in a report that in addition to the cases of Fidelity Digital Assets and Standard Chartered, key figures like DBS are among the famous players who have launched digital asset ownership strategies. As per Trench, because of the demand from conventional custodial customers, banks would give support for digital properties.

As per Trench, because of the demand from conventional custodial customers, banks would continue to provide support for digital properties. Production is approaching its all-time peak in 2020, and comparatively cautious financial firms have started to distribute virtual currency deposits. One such instance is the latest acquisition of a hundred million USD of Bitcoins by MassMutual. As per Paschini, in accordance with the transaction and transfer process, virtual currencies and bitcoins are a higher investment asset class. He indicated that this would be better served for banks to experiment with crypto currencies, with the financial markets already surpassing Bitcoin.

It’s also necessary to point out the rising importance of fund managers in digital properties. This has not only recently attracted the interest of large banks, but global hedge funds are starting to take notice.

Compliance has been more essential than it has ever been

While the inclusion of funding for virtual currencies by banks and conventional investment firms is innovative, ever-changing enforcement and regulatory requirements still need to be kept in mind. John Jefferies, senior financial analyst at the cryptocurrency analysis company CipherTrace, stated in a report that these new regulations may have an effect on digital asset-supporting banks, adding that enforcement should really be a primary concern.

Jefferies noted that federal authorities have also recommended more huge consequences for those who failed to obey with laws, involving penalties and prison time. That being said, instead of laws, Paschini claims that implementing the right technological infrastructure and standards would be the biggest obstacle for banks going ahead.

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Why Bitcoin Price And Volume Rising Together Is Bad News For Ethereum, Alt Season?

Bitcoin is a volume sucker working to grab all from the cryptocurrency market since the rally continues ahead. It is a reason leading the alternative market for cryptocurrency or alt-coin to face a pullback. As a result, the alt-coin market is experiencing a low demand from the buyers too. In the future, traders hold a belief that there is no return point for alt-season. 

When is the time for alt-coins to recover?

As per the historical records, Bitcoin experienced a significant uptrend in the beginning in the crypto market. After that, it was followed by the alt-coins. Among the traders, such a pattern is foreseen in the current cycle of price. The alt-coins market may stand in the recovery phase in 2021. Until the stabilization and rally completion of BTC, no trader sees an uptrend in the alt-coins market.  

From 13 September, the Bitcoin index of dominance is high to 63.4% from 56%, with a 7.4% rise in just two months.

In the alt-coins market, a significant problem is the dynamic nature of the crypto scenario. With the high rise of Bitcoin, a fall occurs for alt-coins. It is because the capital cycle starts turning backward to bitcoin. If there is a drop in BTC prices, a tandem fall will happen with alt-coins. As a result, alt-coins might come to a precarious stage.

“Don Alt,” recognized as a pseudonymous trader, said that a broad pullback for the alt-coin market is coming if the ETH price doesn’t cope-up with the Bitcoin price.

A CryptoCapo recognized trader interfered in the matter. He said that the alt-coins technical structure doesn’t seem to be a compelling one. He further added:

 “Honestly, Alts exist that don’t sound positive, even the decent Alts, and good-looking Alts too. At present, one can’t state any alt-coin as a good one. So, the wise selection is important.” 

Bitcoin rally key is cooling down:

Since the BTC price will surge quickly and Ether’s slow time is behind, it is unlikely to see an alt-season within the near time. As a strong indicator of alt-season, the ongoing rally consolidation with the ETH price breakout can signal. Seeing the broke-out of BTC/USD involving $13,000, alt-coin and Ether markets can be in the uptrends.

The alt-coin market capital seems to transfer into Bitcoin. In October, a lot of volumes are captured by the decentralized form of exchanges. As a result, it indicates that DeFI tokens demand is going down because of Bitcoin momentum prevailing in the market.

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Bitcoin Is A Better Gold Than Gold Itself, Tyler Winklevoss Says

All these days everybody has been hearing about liquid gold, that’s oil but Winklevoss Says something amazing and different, he says, “Bitcoin is better Gold Than Gold itself!”.  Tyler Winklevoss says bitcoin has the potential to make gold go on its knees. Cryptocurrency has been beating Gold in its “own game” and that is also with a better magnitude of 10x performance. This was a tweet by “Tyler Winklevoss” on 21st September.

In 2008, Bitcoin was introduced in the market by a group or a person whose name has never emerged on the papers yet. For 11 years, bitcoin has been playing its vital role in the market and that is one of the main reasons why one needs to understand the usefulness of digital currency. According to various financial experts, bitcoin is the new age of currency, and that everyone should be prepared to welcome the new change in no time.

The fate of bitcoin

It’s not very clear when, but the fate of bitcoin has drastically transformed around the last decade. Bitcoin has been and is setting new records of surpassing its value compared with other valuable products and elements found in the market. Bitcoin has always been in the place of an asset but never a transactional currency. The financial researches have been comparing valuables like gold with the value of bitcoins. Surprisingly, the new research and information data show that gold has been outshined by bitcoin. It is more valuable than gold. Comparing gold with any other transactional currency is a time-tested method of judging the economic value of the item.

While some say, it is best to compare gold and bitcoin with each other, others say it’s not necessary to compare both valuables with each other because they both proved their own value which is not similar to each other. Like warren buffet says, bitcoin has no intrinsic value, the value of an item depends on the necessity of an individual. Necessity is taught the value of everything.  Similarly, when it will be necessary the more worthy will surface gradually.

How is Bitcoin a better store?

The recent pandemic has transformed the world into a lot of chaos and many of the countries have realized that technology is helping them survive. Without technology, humans would have survived with a huge loss like any other pandemic eras in history. This situation has made people realize the necessity of cashless transactions where bitcoin is one most promising contenders that has gained momentum. Many investors, businessmen, and industrialists are willingly putting their money in bitcoin rather than in gold. The spike in the bitcoin currency has been noticed in this pandemic, hence, the spike and the crazy deterioration of the position of gold to many investors.

The future value of bitcoins is quite high and that is the pull factor for many investors. The estimated recovery on every investment of Bitcoin when purchased at the launch time (or at the earliest price) was approximately 7,615.27%.

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