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Banks should be afraid, very afraid of Facebook’s GlobalCoin, cautions Andreas Antonopoulos

Arijit Sarkar

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Bitcoin [BTC]: Banks should be scared of Facebook's GlobalCoin, says Andreas Antonopoulos
Credit: pexels

Although the involvement of tech giants in cryptocurrency seems to be a positive development for the ecosystem, some leaders in the space have also predicted a stiff competition for survival in the not so distant future. Andreas Antonopoulos spoke about the same during one of his Q&A sessions, and discussed the expected disruptions associated with Facebook’s GlobalCoin launch.

Answering one of the viewer’s concerns relating to GlobalCoin overpowering Bitcoin [BTC], Antonopoulos responded,

“I’ve sold all my Bitcoin in order to buy Facebook’s GlobalCoin. No, I’m just kidding.”

Antonopoulos substantiated his belief in it not being a threat to cryptocurrency by stating that coins launched by non-crypto companies such as Facebook lack the fundamental characteristics of cryptocurrency and do not stand on the five pillars (open, public, neutral, borderless and censorship resistant) of the open blockchain. He added,

“Anything that’s created by any centralized organization that is subject to specific laws, cannot achieve any of these five pillars. And the reason they cannot achieve is because the law prevents them from doing so.”

Antonopoulos also highlighted the fact that regulated companies are limited by Office of Foreign Assets Control’s (OFAC) list that prohibits institutions from performing monetary transactions with specific number of people and business entities. Existing laws also require financial bodies to identify the sender’s and receiver’s name and location, which further demands KYC documentation, essentially materializing into a replacement of banks.

Antonopoulos stressed on the fact that Facebook, despite being borderless in terms of social content, is still blocked from access across various jurisdictions across the globe. To clarify further, he said that Facebook’s new coin is comparable to PayPal added,

“They are not a cryptocurrency, they are a bank. So, banks should be really scared of an experienced technology company.”





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Bitcoin

Bitcoin falls by over 5% in an hour as major correction ensues; altcoins follow suit

Namrata Shukla

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Source: Pixabay

Bitcoin [BTC], the largest cryptocurrency in the world, revisited its glorious highs over the past few weeks. However, it would seem that Bitcoin is falling back to earth since the coin was falling by 5.88% in an hour, at press time.

The coin while falling by 5.88% over the hour, was being traded at $12,251 on Bitstamp exchange. The market cap of the coin was reported to be $224 billion and the 24-hour trading volume was $41.813 billion. Over the past 24 hours, BTC fell by 9.55%, while noting a growth of 35.78% over the week.

Source: Trading view

Source: Trading view

The Bitcoin community was rooting for the coin to cross $14k and after the strong bullish momentum showcased by the coin, the target was not a far fetched one. However, the crash suddenly pulled its price below $13k. Twitter user, @aquinastheory, explained the trend,

“First MA/EMA cross to the downside since June 2nd and the time before May 4th. Either new distribution/accumulation is gonna occur here within the next few days, weeks or we’re going down for sure. #bitcoin $btc #crypto #forexsignals”

Source: Twitter

Source: Twitter

The coin was highly traded on Binance with BTC/USDT pair, reporting a trading volume of $1.881 billion. BW.com followed Binance, noting a volume of $1.686 billion with BTC/USDT pair. The third place was taken by Huobi Global with BTC/USDT pair, with the volume reported to be $1.578 billion.





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