Bitcoin (BTC) Range Bound but will be Money in 20-30 Years

Bitcoin (BTC) bears slow down
In 20-30 years Bitcoin will be money says a BoE Chief Economist

Andrew G. Haldane, the Chief Economist of the Bank of England, believes Bitcoin will be money in the next two to three decades. Presently, BTC is trending within a $30 range as bears attempt to press lower.
Bitcoin Price Analysis
Fundamental
Well, it has been a see-saw for Bitcoin and most cryptocurrencies because of their direct correlation with the king. Although some skeptics as Roubini and traditional market influencers as Kevin O’Leary of Shark Tank have their doubts, Bitcoin performance over the last decade is impressive. Designed to counter bankers and decentralize control, Bitcoin is now a global phenomenon. It is the basis of research and a blend of various disciplines, including Economics and Cryptography.
According to Andrew G. Haldane, the Chief Economist of the Bank of England, the peer-to-peer electronic cash will be money in the next two to three decades. While addressing students, an eyewitness said:
“Mr. Haldane said it [Bitcoin] could replace cash. He even joked about us likely having Bitcoin in our wallets. He said he didn’t think it’d replace cash tomorrow, but he was quite open to the idea 20 or 30 years down the line. He was also quite familiar with cryptocurrencies and joked that there were now thousands of them.”
Candlestick Arrangement

Meanwhile, bears are tapering and bear momentum slowing down. Bitcoin (BTC), although up 2.1 percent at the time of press, is correcting, printing lower lows albeit in tight trade ranges. Simply because of this, our last BTC/USD trade plan is valid.
Despite yesterday’s long lower wick hinting of support in smaller time frames, the fact that prices are trending in a $60 range just above the middle BB is a hint of underlying demand. Even so, the failure of buyers to print higher and prevent liquidation as volumes shrink is an indicator of sell pressure.
Pasting a simple Fibonacci retracement tool on May high-low reveals that yesterday’s prices retested the 78.6 level. However, typical of Bitcoin corrections and even with today’s pull-back, we expect a retest of the $6,300 mark before Bitcoin snap back to the primary trend.
Technical Indicator
In general, average participation is high. By yesterday’s close, mean volumes stood at 31k against 21k of May 13th. Even so, volumes are a tad bit lower at 37k against 47k of May 13th.
Therefore, for trend continuation or nullification, any bar closing above $8,500 or $5,600 ought to be with high volumes exceeding 47k.
Chart courtesy of Trading View. Image Courtesy of Shutterstock
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WEF: More Than 40 Central Banks Experimenting With Cryptocurrency

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WEF: More Than 40 Central Banks Experimenting With Cryptocurrency
A new report from the World Economic Forum indicates that over 40 banks are considering offering their own blockchain cryptocurrencies.
WEF: More Than 40 Central Banks Experimenting With Cryptocurrency

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Ripple partner FairFX lands settlement accounts with Bank of England to participate in UK Faster Payments Scheme

FairFX, an e-banking, and international payments group has announced that it has been granted access to settlement accounts with Bank of England [BoE] and has become a direct partner of UK’s Faster Payments Scheme.
UK’s Faster Payment Scheme aka FPS has been growing rapidly since its inception as its the only real-time 24/7 service that is increasing in demand with respect to business and personal customers. Furthermore, the company’s direct connection to the Faster Payments Scheme has been enabled by the New Access Model that extended access to the RTGS accounts held at the Bank of England.
FariFX’s CEO, Ian Strafford-Taylor said,
“Obtaining direct membership of the Faster Payments Scheme together with settlement accounts at the Bank of England represents a major step in the progression of FairFX Group.
This development is in line with the Group’s strategy to streamline the payment supply chain, deliver lower payment processing costs, improve customer experience and facilitate product iteration.”
The efforts of the FPS is to inject more competition that will help stir growth in the payments sector, which has been overdue for a change for a very long time.
Moreover, FairFX can now directly settle payments with other members of FPS, and it is eligible to join other payment schemes in the UK like BACS, CHAPS. In 2018 alone, FairFX has processed more than 1 million FPS transactions, but after the partnership and its inductance into the FPS, it will now be able to process these transactions in real-time.
Ripple partnered with UK’s FairFX back in mid-2018, along with four other companies from around the world [RationalFX, Exchange4Free, UniPAY, and MoneyMatch]. These companies would be using Ripple’s blockchain payment solution, xVia.
xVia is an API solution enabling payment originators – those sending payments on behalf of a customer, but not actually processing and paying it out – to access and reap the benefits of RippleNet. This includes faster entry into new markets, lower operational costs, increased speed and end-to-end visibility over a payment’s journey.
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Source: AMB Crypto

BOE Advisor: Crypto Fails Fundamental Tests, But Banks Face Growing Competition from FinTech Companies

It’s no secret that those who are heavily involved in the world’s traditional banking systems have a disdain for crypto, likely because of the many ways the relatively young technology challenges the traditional notions of banking.
While offering a somewhat cliché opinion about the cryptocurrency markets, Huw van Steenis, the senior advisor to the Bank of England Governor Mark Carney, said that cryptocurrencies fail fundamental tests that mark a solid and successful financial tool.
Although this assessment is dreary, the ever-growing innovation of FinTech companies is leading many traditional banks to see a growing amount of competition, much of which is coming from crypto-friendly companies like Robinhood and Revolut.
Van Steenis: I’m Not Worried About Cryptocurrency
Many proponents of cryptocurrency believe that it could one day drastically alter the way the world’s traditional financial systems, including banking, work. The nature of decentralized currencies, like Bitcoin, would shift a significant amount of power away from institutions and into the hands of individuals if they were to be widely adopted on a global scale.
That being said, Van Steenis told Bloomberg in a recent interview at Davos, Switzerland, that he isn’t worried at all about cryptocurrencies posing a threat to traditional financial institutions because they “fail the basic tests of financial services.”
“I’m not so worried about cryptocurrencies. They fail the basic tests of financial services. They’re not a great unit of exchange, they don’t hold value, and they’re slower,” Van Steenis explained.
FinTech Companies Becoming Competitors to Traditional Banks
Revolut was just recently granted a European Banking License by regulatory authorities.
Van Steenis further added that the Bank of England’s (BOE’s) biggest concern at the moment is how to regulate new, technology-based, entrants to the banking system.
Examples of FinTech companies that are entering the banking industry and are rapidly changing the way customers interact with banking services are Robinhood and Revolut, who are both rapidly expanding their offerings of traditional banking services with a digital twist.
Revolut was just recently granted a European Banking License by regulatory authorities, which will allow them to offer Europe-based customers a significant amount of digital banking services typically found at traditional institutions.
It is important to note that both Robinhood and Revolut offer users a gateway to purchase a variety of cryptocurrencies. Presently, Revolut offers users the ability to gain exposure to five cryptocurrencies, including Bitcoin, Bitcoin Cash, Litecoin, Ethereum and XRP.
As these digital banking services continue gaining traction and expanding their customer base, it will likely introduce a significant amount of investors to cryptocurrencies, which will further validate their usefulness as both tools and investments.
Van Steenis said that if traditional banks fail to innovate and digitalize as quickly as their FinTech-based counterparts, they could lose out on customers.
“What I love when meeting with Fintechs is their obsession with customers. The challenge is will they get customers before the traditional banks can innovate,” he said.
Featured images from Shutterstock.
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Why Bitcoin Won’t Fail the “Tests of Financial Services” Forever

In an interview at the World Economic Forum in Davos earlier, the senior adviser to the governor of the Bank of England weighed in about the threat posed to the current financial status quo by Bitcoin and other cryptocurrencies. Huw van Steenis largely dismissed the blockchain-backed fintech innovation on the grounds that Bitcoin had not yet achieved the kind of traction that more traditional forms of value storage or mediums of exchange had.
Van Steenis stated that he did not see Bitcoin as being capable to pass the “fundamental tests of financial services”. However, what he seems to be missing in his rudimentary analysis is that Bitcoin has emerged in a post-internet world meaning that all it will take mass adoption is a solid track record of greater utility and enough information reaching the global public to dissuade them away from ascribing value in government-issued fiat currency.
Technological Adoption Occurs Faster than Ever Today, Why Will Bitcoin be Different?
The main reason Van Steenis cites for his stated lack of concern over Bitcoin’s ability to threaten his very raison d’être is that it does not serve as a means of exchange and does not hold value well. Presumably, although not mentioned explicitly in the interview, the Bank of England adviser prefers government-issued fiat currency over Bitcoin in terms of its ability to serve these monetary functions.
However, if we look closely at how fiat currency works, we see many more issues with both the premise that it serves as a good store of value and that it is a suitable medium of exchange. Firstly, the idea fiat currency is a solid store of value is questionable at best. Think about your own life. How much have you seen basic commodities increased in price over the years?
The alpine town of Davos, Switzerland, where the WEF is held each year.
Banks print money both directly and indirectly through lending, enriching themselves at the expense of the population. That is Van Steenis’s institution’s entire business model. The purchasing power of the pound, dollar, or yuan is perpetually decreasing. It may go up slightly from month to month but over a long-term chart, the trajectory is always downwards. How again is this to be considered a store of value?
Compare this to Bitcoin’s sound monetary policy. It requires much more than a banker authorising the printing of currency or to make loans with money the bank never had to create additional Bitcoins. In terms of a basis for a store of value, this is far superior to anything we as a species have known before. There is nothing in the world that people can categorically say how many there will ever be with reasonable certainty – apart from Bitcoin.
Of course, the purchasing power of Bitcoin swings wildly at the moment. This is to be expected since people are still coming to terms with the technology and perpetually questioning whether something so new and innovative could really replace fiat currency. The more people learn about Bitcoin and the longer it successfully serves its purpose as a peer-to-peer, decentralised value transfer system, the greater faith will be generated in it. Taken on face value, it is far easier to trust open-source code that anyone can verify than it is a global network of shadowy banking elites making deals us mere mortals will likely never know about.
Thanks to the internet, there has never been as much information that directly challenges the status quo either. This is encouraging the formation of a society that is much more equipped to question those things taken as norms – one of these is money itself.
However, it is not just in terms of a potential future store of value and sound money that Bitcoin outperforms fiat currency. Even as a medium of exchange, the financial innovation trumps government-issued money. Of course, you cannot send funds from one side of the planet to the other in minutes using the current legacy financial systems. Even when it appears you have done just that, in reality you are relying on a massive network of trust. One bank allows you to access the money sent before it is really there because they trust where it is coming from.
With Bitcoin, many people complain that it does not allow instant value transfer. Yet, if you are willing to exercise the amount of trust that banks do every day, it is as close to instant as is feasible using today’s technology. Think how long it takes to see that an “unconfirmed transaction” has appeared in your Bitcoin wallet- just seconds.
If you trust the sender, zero confirmations might be enough for you to be happy you have indeed received funds. Alternatively, if you lack trust in the party sending the money, you can elect to wait for as many confirmations as you like. Even if you were to wait for hundreds of confirmations, the BTC would have still arrived in your wallet much faster than a fiat currency could ever move from bank to bank.
However, fiat currency can also be used in a peer-to-peer fashion (for now) in the form of cash. People will say that Bitcoin can never travel as fast as when you had someone ten bucks in a bar or shop. However, in reality, it already serves this purpose far better than paper money can. People blindly trust most peer-to-peer cash transactions. Do you spend any time checking a bank note that you receive from a supermarket in your change? Of course you do not. However, there are many fraudulent notes in existence, perhaps if we were to receive a pile of high value notes, we would be more careful but for small value transactions, people take convenience over security and get on with their day without rigorously checking their money for authenticity.
With Bitcoin, we are at the beginnings of a massive experiment in decentralised cash. Given market price discovery dynamics it would be frankly ridiculous and immensely reckless for enough value to have swamped into the market to make prices as stable as the dollar, pound, or yuan. That is not to say that it will never. As discussed, the fundamentals of Bitcoin are sufficiently strong to make it a real threat to the current financial status quo, whether Van Steenis has realised this (or cares to admit it) or not.
 
Related Reading: Messari CEO: Killer Use Case For Bitcoin Is Still Money, Digital Gold
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Davos 2019: Crypto is Not a Threat to Traditional Banks, Believe Bank of England’s Officials

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Davos 2019: Crypto is Not a Threat to Traditional Banks, Believe Bank of England’s Officials

According to Huw van Steenis, senior adviser to Bank of England Governor Mark Carney, cryptos have no value and fail fundamental tests of financial services.

Davos 2019: Crypto is Not a Threat to Traditional Banks, Believe Bank of England’s Officials

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Ripple and XRP discussed by Bank of England’s Governor in an open discussion

XRP is back to being the second largest cryptocurrency in the world after pushing Ethereum [ETH] back to the third spot. 2019 has been a really good year for Ripple and XRP as the latter exceeded more than 200 partnerships with financial institutions.
Moreover, in a recent AMA styled discussion named, “Have your say on the future of money”, Bank of England’s Governor, Mark Carney discussed with a few XRP fans about the bank’s plans regarding the future of cross-border payments.
Carney stated:
“Money is evolving and so is the way we pay and the financial services we want… Bank notes will remain a central form of payment for some time… “
On the discussion forum a user, Steve asked:
“How does the BofE view the increased utility of digital assets? (e.g. the use of XRP through RippleNet as a bridging asset for cross border payments and transfers) and is the BofE working towards the use of a digital asset to perform this or any other monetary tasks?”
Mark Carney replied that the bank had already teamed up with Ripple in 2017 to work towards new ideas in cybersecurity, digital assets, distributed ledger technology, machine learning and many other topics.
Furthermore, he explained:
“For that proof-of-concept study, we looked at whether two transactions in different currencies could be executed simultaneously in separate RTGS systems. he important test is that, if one of the synchronised transactions fails to go through, the other part should not go through. That shows the system is working properly and could in principle be used for cross-currency conversions.”
He said that this could be something that could change how cross-border payments work and ultimately change it in an unprecedented way by reducing fees and transaction times.
Earlier, in October 2018, in an interview with SibosTV, Victoria Cleland, Bank of England’s Executive Director for Banking, Payments and Financial Resilience spoke about their “Proof-of-Concept “, which was a research on the future of money, done by partnering with Ripple. She stated:
“We do want to make sure is that when there are sort of participants or systems who one sort of plug into RTGS that they can do so using DLT so the proof of concepts that we ran over the summer really trying to say if somebody wants to connect to us from a DLT system can that work and the really good news was that it can.”
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Source: AMB Crypto

Bank of England Slammed for Falling Behind Regulating Crypto

The Bank of England (BoE) has been criticized in a UK Treasury Committee during a hearing on Digital Currencies on July 4. Three senior government and banking officials denied the claim, arguing that a taskforce is underway to provide clear guidance over what crypto regulations need to be imposed.

MP: “Facebook Leading the Way”

In the hearing, Labour MP Wes Streeting praised Facebook for ‘having to lead the way’ in banning crypto adverts even though it has recently reversed its position. He argued that private companies are getting on with controlling the market while regulators were falling behind. This led to a defence by all three panel members who said that the BoE is keeping up.

The MP said: “There is a concern that regulators are not moving as fast and are not as front‑footed as you could and perhaps ought to be. Is it fair to say that you have been sleeping at the wheel while Facebook has been getting on with banning the advertisements in this space?”

Martin Etheridge, Head of Note Operations, BoE, responded by saying it the BoE is leading on the international stage and that there will be ‘vigilant monitoring’ on a global basis. David Geale, Director of Policy, FCA, recognized some positives in the work by Facebook and Google but claimed they haven’t been ‘entirely effective’ because they are still receiving reports of people signing up through those channels.

The committee raised concerns over the ‘daily bombardment’ of crypto adverts and what the regulators are doing regarding misleading adverts. Geale responded that their usual powers apply which requires adverts to be fair, clear and not misleading. However, Streeting presented an easyJet advert which he claimed had no warnings that funds may go down.

Streeting said:

“I have just been passed this advertisement from easyJet’s magazine. ‘Ladies and gentlemen, give your bitcoin wings.’ Do you see what they did there? There is no warning that products are unregulated and no warning about prices going up and down. ‘In 2017, we have witnessed the bitcoin rise from $1,000 to $19,000.’ That is a 1,800% increase; that is what they are suggesting there.”

MP: Treasury is Being “Complacent” With Crypto Regulation

Conservative MP Charlie Elphicke raised concerns over terrorist financing and money laundering. David Raw, Deputy Director Banking and Credit, HM Treasury, argued that past assessments show that there is low risk for both issues. He said that using crypto potentially creates a ‘more transparent record of the transaction, which is potentially auditable.’

Elphicke said: “But let me challenge that. Is that not complacent? If you send a cash courier, a cash courier can be caught. A key can be transferred by text message. If I am over in Syria or wherever, I simply send a text message with a wallet passcode to someone who lives in London. Hey presto, they have access to all this cash so they can get up to all the terrorist financing stuff they need to do.”

Raw denied complacency but accepted that there is a potential risk to be examined. He referenced the MP to the task force which will release a report in September.

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