Bank Of England Talks Negative Interest Rates In Best ‘ad’ For Bitcoin

Have you heard about the new advertising for Bitcoin? It has been floating as one of the significant bank assets that encourage people to save their money more.

As per Bloomberg’s reports, the Bank of England has apparently become the latest central bank to discuss the negative rate. Let’s know a bit more details about this.

As per the sources, England’s bank had proper discussions with the bank regulators over the negative rates, which precisely indicated to mean lending institutions. Thus, individuals might pay to store their cash!

Why such a significant change all of a sudden? The possible reason is the impact of the epidemic that has clearly shaken the world right now. The impact on the economy is terrible, and the prospect that is taking the shape of Brexit. This can surely make or break the scenario. But the bank has left many options to choose from due to the unprecedented times as per the news.

Even though the policyholders had voted to keep the interest rates at the bare minimum of 0.1%, there was still a decent slide against the major currencies.

The advocates of Bitcoin who have come up have apparently seized on the troubles of the Bank of England. They have stated the allegation that such a policy might underestimate or undermine the reputation and fiat currency position.

This has resulted in a pretty major outrage on Twitter, as all of them came down to talk about this finally. There were various opinions that either went in favor of their decision or were contradictory. This is a major concern for people out there since paying just to store their money is simply not feasible for them. According to them, they are basically advertising bitcoin and are taking the stand in their favor.

As per the sources, England’s bank is specifically not liked by the people due to the bitcoin issue. Furthermore, the uNited Kingdom government is even bailing out of the banking sector in the year 2009. Even an article from the Times was attached to him to justify the fact stated by them. And now it was clearly evident that bitcoin would surely hold power and functionality as a hedge against fiat in the upcoming years. This is surely a great deal for the U.K.

This week, the United States Federal Reserve has put up queries about various plans and ventures to overshoot inflation targets. This process would weaken the U.S. dollar and likely boost safe havens such as gold and Bitcoin.

According to England’s bank, this could be pretty damaging to the economic condition of the United kingdom. The European central bank(ECB) has been in this phase before, but such a massive move would be the first time in the United Kingdom and thus is a matter of debate at the moment. But keeping everything aside, the final decision is yet to be taken and will surely be on the right side, keeping every possible aspect in mind.

Covid-19 Vaccines Will Spark Bitcoin Crash

The crash of the Bitcoin (BTC) is impending when the world finds the answer to the pandemic, COVID-19. In other words, when a vaccine for the cure is found that works, the cryptocurrency would fall, as claimed by Robert Kiyosaki.

In a tweet, on September 15, 2020, Robert Kiyosaki, the famous author of the book “Rich Dad Poor Dad,” warned that a functional solution to COVID-19 would send the safe-haven assets to crash.

Kiyosaki also says that the Vaccine crash will be a Bitcoin buying opportunity.

So, “What happens when a vaccine is proven? Gold, Silver Bitcoin will crash and will be a buying opportunity for all investors,” he wrote.

In continuation, Kiyosaki argued that the virus was making the “real” issues at stake for the United States economy in particular. With $26.7 trillion in debt as per the monitoring resource U.S. National Debt Clock, much of which was because of the announced stimulus package for COVID-19 hit, the country is now “bankrupt.”

The tweet states that the “real problem is not pandemic, but the massive U.S. debt. He says that the U.S. is bankrupt with massive $28 trillion balance sheet debt and $120 trillion off balance sheet social obligations.

Gold, Silver Bitcoin is the best investment in the long term.

The reasoning favoring long-term investment in Bitcoin has become more and more public since March’s cross-asset market crash.

In spite of the current strength, the U.S. dollar is widely seen as being in a downward spiral, which will only worsen because of the Federal Reserve Policies. Apparently, the policies are also intended to counter COVID-19 fallout.

The weakness in the U.S. dollar currency index has elated Bitcoin and gold in recent months, underscoring the opposite correlation, which remains a significant consideration for traders.

The Federal Reserve is set to submit fresh comments on the future of its market participation, which would add on to the prospect of dollar volatility. A new trend highlights the increase in Bitcoin price rise in tandem with the Central Bank’s balance sheet.

Kiyosaki, meanwhile, remains an ardent supporter of Bitcoin, whatever the weather. Last August, he urged the investors through Twitter to buy cryptocurrencies before a significant banking crisis appeared.

The Federal Reserve meddling in the economy and the weakening dollar has been the basis of Kiyosaki’s advice. Also, Warren Buffet exiting U.S. Banking Investments and buying gold was another warning bell for the author.

RT host Max Keiser, who is also of the same opinion as Kiyosaki about the economy, forecasted in August 2020, that Bitcoin would hit an all-time high shortly as the current economic situation plays out.

The Iranian Government Took Down Over A Thousand Crypto Mining Farms

A known power company of Iran Tavanir shut down nearly 1100 farms engaged crypto mining recently as they were operating without a valid license. They took the help of whistleblowers to identify such miners and the individuals who provided such critical information received 100 million rials for their cooperation, according to media sources. Hence for the crypto miners, this is a tough time, and they have to restrict their activities in Iran. However, the market of this virtual currency is yet intact with such restrictions in one nation. 

Using subsidized electricity:

Tavanir said that they had to shut down the firms as they were using high levels of subsidized electricity. However, as per their own reports, there is no clarity on the significant increase in the consumption of electricity. Officials said that they are not able to detect all farms just by understanding the consumption patterns, and they had to rely on whistleblowers.

National law on crypto mining:

The national law on crypto mining mentions clearly that the identity of the miners should be disclosed, and all the details should be provided to the Ministry of Industry, Mines, and Trade. Authorities check critical information about the type of hardware used by the farms while allotting the license. In the same manner, they even check the size of the mining farms as this information will help them to validate individuals and companies involved in the mining activities.

All this information is collected to prevent smuggling, and this will encourage mining farms to work with a proper license. When individuals or companies are caught mining cryptocurrencies illegally, they will be fined as per the hardware used by the miners and also by the use of subsidized electricity by the individuals or companies. Both individuals, as well as companies, qualify for such a license.

Recently, iMiner has become the largest crypto-miner in Iran after it got a license by Iran’s Ministry of Industry, Mines, and Trade in May. They have set up around 6000 rigs, and this is the largest crypto miners of the country.

So far, the government has issued authorized licenses to as many as 1000 companies in Iran, and cryptocurrency mining is now considered an industrial activity in the country. Considering such measures by the government, experts are of the opinion that the future of cryptocurrencies is very bright in Iran and other developing countries.

Altcoins Account for One-Third of Total Crypto Mining Power Usage

Recently market research was conducted that proved Bitcoin mining only accounted for one-third of the total power consumption. The analysis of the 20 largest crypto assets was done to come to a conclusion. The regulators have been evaluating the impact of crypto mining on the environment recently. The researchers working at Munich’s Technical University have encouraged the regulators to look beyond Bitcoin when it comes to mining crypto assets’ environmental impact. 

As mentioned in a reputed scientific journal named Joule, the researchers Christian Stoll, Lena Klaaben, and Ulrich Gallersdorfer determined that Bitcoin mining accounted for only 66 percent of the total power utilization. The report stated that as per the algorithm for crypto mining, current hash rates, and the use of mining devices, Bitcoin mining’s energy consumption only accounts for two-thirds of energy consumption, and other understated cryptocurrencies use the remaining one-third. The power consumption of Altcoins is determined by analyzing the mining equipment and hash rates. 

The Blockchains that were analyzed apart from Bitcoin accounts for the top 20 cryptocurrencies by market capitalization. It includes Komodo (KMD), Ethereum Classic (ETC), Ethereum (ETH), Bitcoin SV (BSV), RavenCoin (RVN), Bytom (BTM), Horizen (ZEN), DigitByte(DGB), MonaCoin (MONA), Bitcoin Gold (BTG), Decred (DCR), Zcash (ZEC), Litecoin (LTC), SlaCoin (SC), DogeCoin (DOGE), Monero (XMR), Dash (DASH), and ByteCoin (BCN). 

One of the key aspects of the research was to divert the attention of the environmental effect of crypto assets’ mining from only Bitcoin. It is because other crypto assets are causing high damage to the environment as well, which is a significant point missed out in many of the research studies. The study also mentioned that while energy consumption alone is not the factor that affects the environment. The mining of the crypto assets requires a vast amount of ancillary resources that puts an extra burden on the environment. As the number of full-load hours increases for certain crypto assets’ mining, it can lead to potential fuel switching effects that can drastically increase the intensities of local emission. 

Hal Finney, a well-known Bitcoin pioneer, noted as early as in 2009 that Bitcoin mining can prove to be a nightmare for the environment, especially due to the amount of energy it requires. He made this observation much before altcoins were introduced. As per Digiconomist, the total power consumption of Bitcoin mining currently is nearly 63.5 terawatt-hours, which is way about the power consumption of some of the highly developed nations, including Switzerland. 

Around 73 percent of Bitcoin mining is powered by renewable energy as per the research firm CoinShares. One of the solutions that are proposed to curb energy consumption for Bitcoin mining is to convert additional gas produced during oil mining into electricity. The mining operations can be set up at the field itself in containers, which would save the cost of setting up pipelines or let the excess gas waste. 

Swiss SIX Exchange lists actively managed Bitcoin ETP

The Swiss SIX Exchange is listing a new cryptocurrency ETP called Bitcoin Capital Active ETP. This will trade BTC against as many as 14 top altcoins, including ETH. It will also exit into fiat without the need for investors involved in the transaction. This is the first actively managed crypto ETP to enter the market, and it is now listed on SIX exchange, which is one of the largest stock exchanges in the world. This step is, therefore, considered of vital importance for the finance world. It can prove as a massive step in the direction of acceptance of virtual currency that is considered as the currency of the future. 

According to analysts, the coins that are traded against BTC are chosen after carefully analyzing their strengths. Such coins usually have their own blockchain and have high market capitalization. In this way, there will be no problems associated with liquidity in the future. In this way, investors are secured to some extent as the trading is done only on reputed coins. This can set the trend for many such ETPs shortly.

Unlike traditional ETPs that operate in the finance market, the crypto-backed ETPs are always backed by assets. Apart from that, this is actively managed ETP, unlike other options available in the market.

Future of ETP

The concept is still in its early stages, and the response to such actively managed ETP will be known in the near future. However, many people believe that actively managed ETPs are a better option when compared to standard ETP, and this is especially true in the cryptocurrency market. The risk management process is done actively, and the regular passive approach of ETP will not be followed in this option.

The Bitcoin Capital AG will issue the BTCA, which will trade against other crypto coins. This is expected to give better returns to investors. The good thing about the ETP is that it has received regulatory approval from the Switzerland Government and FiCAS will be offering BTCA to investors.

SIX is also well known for other crypto ETPs, and they are used by clients to bet against bitcoin’s price in the market. In the same way, investors can also invest in other ETPs that track the price movement of various other crypto coins like ETH, BCH, and XRP on the SIX exchange. However, this is the first time they are offering actively managed ETP for investors.

Twitch to offer gamers discounts for paying with Crypto

With time the change of currency is visible, and people also have started using the same. To make the same more popular, the corporate world is also helping virtual currency in different ways. Twitch also is supporting the same now. Twitch is all set to entice cryptocurrency users into the gaming zone by offering them good discounts. The live streaming giant has announced recently that it will offer a 10% discount for subscribers opting to use cryptocurrency for the subscription fees. It was using the Bitpay processing system for this offer.

Twitch – An Amazon subsidiary

The company was formed in 2011, and it has gained excellent traction since then by attracting a large number of users. It has over 2 million broadcasters and 27000 partner channels. The daily active users on this platform exceed 15 million, which is huge for this category. The Amazon subsidiary has partnered with Bitpay to allow for crypto processing so that it can accept payments in ETH, BCH, BTC, Ripple, and other cryptocurrencies.

First of its kind in the market

Even though Twitch is not the first company to offer cryptocurrency support for gaming subscriptions, it is the first big company to have taken this approach. It was usually seen with small streaming services in the past, and now a big company like Twitch entering the digital currency space is a huge boon for the crypto industry. Other companies like Take-Two also offer cryptocurrency support.

Even Bitpay is excited about this prospect as it believes that this is a good opportunity to expand the user base with lost cost and fast payment processing system. This also removes the restrictions of borders, and crypto-assets can be easily transferred anywhere without any hassles. The company executives said that the gaming industry has always been supportive of crypto assets, and this only goes to show that the demand for such currencies is here to stay for a long duration.

Getting a 10% discount is a big thing for regular gamers, and they may easily start using Bitcoins or other cryptocurrencies for making payments at Twitch. Even if a small percentage of users start using this service, the company is likely to get good traction. Apart from that, this has also caught the attention of other gaming enthusiasts, and it can bring in more subscribers in the near future. Hence for the gamers it will be easier to enjoy the sessions than ever before.

Crypto Facilities Gets FCA Nod to Set up Crypto Futures Venue

Crypto Facilities, which is a subsidiary firm of the popular Kraken Cryptocurrency exchange, recently announced that it had received the much-awaited MTF or Multilateral Trading Facility License. The MTF License is awarded by the United Kingdom’s Financial Conduct Authority or FCA. The MTFs function more or less like a stock exchange but are independent and conduct their own trading venue. The Multilateral Trading Facility uses advanced electronic systems like the stock exchange to function as it is a market built on securities. 

The Crypto Facilities has said that it is the first of its kind self-regulatory independent trading venue in Europe. It also added that the acquisition of license would now enable the company to add to its extensive list of products. However, Crypto Facilities did reiterate that it would ensure that all the regulatory parameters are strictly adhered to in the process. Conventionally, the MTF licenses are only issues to large investment banks or approved financial market operators with good standing in the market. It allows more participation by the retail investors so that they can trade in the financial securities freely. 

The move by the FCA to provide the MTF license to Crypto Facilities has enabled the latter to offer its services comprehensively to institutional clients. Getting access to trade in crypto derivatives for constrained investors and retail traders in Europe wasn’t possible earlier. The CEO and co-founder of Kraken Cryptocurrency Exchange, Jesse Powell, said that getting the MTF license would help the constrained investors to trade comfortably on the venue that is regulated and offers them flexible trading options. 

Jesse also said that the only reason why Kraken engaged in extensive efforts to acquire MTF license is to ensure that the company is able to enhance its outreach. In the booming crypto market, it is essential to ensure that more and more people can get access to crypto, and it is what Multilateral Trading Facility will do. The approval for MTF license for the Crypto Facilities by FCA came just a few days after it engaged in a massive cryptocurrency study. The study has revealed that all of the United Kingdom’s citizens having cryptocurrency like bitcoin era as investments have increased drastically in the last couple of years and the number is steadily increasing. 

One other reason why many institutional investors, as well as regulated institutions, prefer the Multilateral Trading Facility is because it offers them a level playing field for all the market participants without any added or undue advantage to any particular investor. There is absolutely no discrimination among the members of the platform, and there is a transparent process through which the buyers are matched with the sellers. The user is only able to buy on the platform at the fixed price when there is a sell order for the same price is available. 

One other reason why the investors so highly trust the MTFs is that they are European Union’s Markets follow the Financial Instrument Directive II. The directive is not only aimed at boosting the competition in the crypto market but also to provide investors with an enhanced level of protection. 

Tyler Winklevoss: It’s Good for BTC When the Fed Prints Money

Bitcoin might get eventually benefitted from the U.S. Federal Reserve’s activities. The famous American cryptocurrency and Bitcoin investor and entrepreneur Tyler Howard Winklevoss made this statement which stirred the cryptocurrency space worldwide.  

The Powerful Insight by Tyler Winklevoss

The U.S. government spending on Bitcoin may gradually lead to mounting Bitcoin prices. This prediction was made by the founder of Winklevoss Capital Management and Gemini cryptocurrency exchange; Tyler Winklevoss. His knowledge, financial and cryptocurrency acumen and insight made him competent to cite such powerful statements. Winklevoss 22nd July tweet reads ‘”The Fed continues to set the stage for bitcoin’s next bull run.” This powerful tweet was also backed by a link of an article based on the discussions by a government agency on additional stimulus spending.  

The Role of the U.S. Government

Bitcoin reserves a 21-million-coin maximum stock, shielding the asset against value weakening. When money calculations and estimations go bizarre and swell up the stock market, it is the ideal time to use Bitcoin. Winklevoss stated this with conviction mentioning about the U.S. money production, ensuing in an increasing stock market while giving the affirmation to Bitcoin as a powerful substitute. With the halving behind the Bitcoin trader, the price should soon be across $10,000. The U.S. Federal Reserve has said it will do whatsoever it takes while motivating the government to devote generously. Since March, the U.S. government has grumbled up its fiscal activity, endeavouring to pile up a stressed economy, due to the impact of global pandemic COVID-19 precaution measures. Such hard work has encompassed a $2 trillion incentive package, which, in portion, dipped out fundamentally free money to U.S. people, reliant on their income strata.

The Wobbly Financial State 

Classically, it is nothing exceptional inequities to oversee an index grow towards a round number and drop down when it reaches it, but for a millennial generation of crypto traders, it’s an experience, never seen before. As a regionalized borderless numerical asset, detached from the government regulation, Bitcoin holds as a budding verge to mainstream marketplaces and the country’s currencies. With present stimulus, money reaching its termination soon, the government must evaluate the condition, perhaps delivering additional reprieve capital. The financial experts highlighted the inflation trend of the U.S. dollar over the last few decades, observing the position of withdrawing cash into several assets, along with Bitcoin.

These are hazardous times, and it hasn’t fled anyone’s attention that the United States Federal Reserve is contributing its role and effort to lessen the hassle and challenges. This started with the global COVID-19 pandemic and has had a huge hit to the global economy and to combat this trying time; the U.S. government is operationally printing more money.

Crypto Lawyers Are In Hot Demand As The Industry Goes Mainstream, Experts Say

With the establishment of cryptocurrency markets, companies have started looking for legal talents.

According to a recent Bloomberg Law article, since the various cryptocurrencies are moving out of the regulatory gray markets, legal hiring may soon get hot in demand. The Bloomberg publication interviewed various experts following the news of Coinbase. It said that Paul Grewal, the former vice-president and deputy general counsel of Facebook, was tapped as their legal team leader by Coinbase.

The consensus is that the number of in-house hires of legal advisers in the cryptocurrency market is likely to scale up significantly, very shortly. This is because of the active push to the market in the financial mainstream.

To be specific, the Chief Legal Officer of the Cryptocurrency Exchange Kraken, Marco Santori, informed Bloomberg that they are going to double the company’s legal team by 2021. He sees cryptocurrencies being serious about participating in international discourses surrounding the development of crypto law. To this, he added, that the current lack of specific laws is making the industry very appealing, especially for the lawyers who are experiencing an active intellectual challenge. 

Mentioning the 2016 acquisition of the blockchain startup Glidera, Santori said that Kraken has been remarkably efficient in acquisitions in the past and will continue the legacy. He focused on aggressive hiring and inclined towards the legal advisers.

There is no definitive legal framework in most countries until now, and they are trying to work on it through different experts and advisers. Stuart Alderoty, Ripple’s General Counsel, stressed his point in a conversation with the Bloomberg journalists that the industry is in urgent need of smart regulation, which both fosters and recognizes the potential of this technology.  

2020 has seen many vital examples indicating the entry of Crypto markets in the financial mainstream. News is circulating about Coinbase getting listed on the stock exchanges. If this happens, it would be the first time a crypto exchange would be listed on conventional markets. There is also news that a new legal counsel lead was brought in Coinbase to maintain good relations with financial regulators.

Institutional investors have increased their crypto investments significantly in recent years.

Gemini and Coinbase have been taken as customers by JP Morgan Chase. It has even built a self blockchain settlement service, with its own US-Dollar backed token, dubbed as JPM Coin. It is the same US Banking giant whose CEO once said that Bitcoin is simply a fraud. 

Global payment giant PayPal is also hiring crypto talents. Rumors suggest that the platform is going to enable crypto purchases for its 305 million users worldwide. There are various job requirements in PayPal for engineers with skills that could overlap Bitcoin development, like experience with cryptographic libraries, experience with C++, and asymmetric cryptography.

However, engineers are not what they need now. They are looking for lawyers to expand in the crypto market and gain the support of the authorities and other organizations around the world.

Bitcoin could be the next big inflation hedge

Since its inception as a virtual currency, Bitcoin has taken the market to a storm which is still not over. Over the period the users of bitcoin as a virtual currency are increased in which big names are also added now. Many high profile investors are now betting on Bitcoin as the new option to hedge against inflation. Earlier, people considered safe assets like Gold when it comes to handling volatility in the markets. As the COVID19 pandemic has caused a lot of economic turmoil across the world, various governments and central banks have announced stimulus to revive the economy. In this situation, inflation is all set to go up shortly as the asset value of the currency is decreased by too much stimulus. In this situation, Bitcoin can offer some relief as it is on a rising trend for many years.

Bitcoin turning into a safe asset

The coronavirus pandemic has resulted in lots of job loss, and the economy is not showing any positive signs in the near future. The interest rates are going to remain near 0% till 2022 according to central bank reports. This has led to a huge surge in Bitcoin prices in the last few weeks. Recently, it crossed the crucial $10000 mark, which showed how much confidence investors have on this asset.

Crypto markets becoming user friendly

Earlier, it was not so easy to access the cryptocurrency markets in different regions of the world. The charges were on the higher side, and investors did not have much knowledge about this asset class. However, the modern-day investor is savvy enough to use Bitcoins for various transactions. Apart from that, many investors are also using it as a hedge against inflation as this can secure their investments in times of volatility.

The trend with investing in cryptocurrency is going to last for a long time, considering the weakening economic system around the world. With the crypto market becoming easier than before, more and more investors are now keen to invest in Bitcoin for various reasons. As other asset classes have become volatile, they are trying to hedge the currency positions by investing some money in Bitcoin. Apart from that, many exchanges are offering bitcoins for trading along with other currencies. In this way, users can hedge their positions with Bitcoins and combine their investments with other currencies in the same account.