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Bitcoin [BTC] innovation cannot be bought by the financial institutions, says Andreas M Antonopoulos




Bitcoin [BTC] innovation cannot be bought by the financial institutions, says Andreas M Antonopoulos
Source: Unsplash

During a Q&A session, Andreas M Antonopoulos, a Bitcoin [BTC] Advocate and the author of Mastering Bitcoin, spoke about financial institutions hopping onto the blockchain bandwagon in the future.

Andreas was asked about the implications on space if financial institutions joined the bandwagon. In addition, financial institutions would be faster than the rest of the industry even if individuals can create their own financial instruments on the blockchain.

The author said:

“… I’m not particularly worried because the fundamental issue here is that what most financial institutions are trying to do is take the fundamental idea and use it to do business as usual without changing the fundamental practices.”

He continued to say that the most important factor about the blockchain technology is decentralization. This system’s architecture says that there is no one in charge and no one in control. This is because it is a collaborative project where everyone participates and because of this, the truth gets recorded on the blockchain and it is not controlled by any single entity.

Andreas stated that the financial institutions would not adopt decentralization as a principle even if it would make the economy “far more robust”. According to him, they are going to “try to pretend” to adopt the principle while creating “something” that can be controlled because the nature of corporations is centralization and the nature of financial corporations is even “more so centralization.”

He further adds:

“… as to the fact that they will be able to move faster there is this pervasive idea that just because financial services companies have all the money, quite literally, because they made it themselves that they can simply buy their way into the future fortunately for us, unfortunately for them, there are a few things you can’t buy innovation and creativity is one of them.”

The author stated that these companies strangle innovation within 72 hours if it arises in their company by deciding to create an innovation committee to study it. Moreover, if the innovation arises outside the company which is not too disruptive, they would end up buying it or suing it and it would reach to a point where all the creative and innovative people would have left.

For innovation which is too disruptive which these companies would not even consider buying, they will “try and snuff it out” with the help of governments. He said:

“… their favorite technique, have the government’s turn off their disruptive competitor for them by making sure that there are enough regulations in the way that the smaller competitor can’t compete”

However, these techniques could not be used on Bitcoin. This is because the financial institutions cannot buy Bitcoin because it is not an ‘it’. They cannot sue it because there is ‘nowhere to sue’ and the governments cannot regulate it as users did not seek for the government’s permission to use it.

Andreas said:

now they’re faced with in the first time in maybe 75 years of traditional financial services with the one competitor they can’t do any of those things. they haven’t started panicking yet because hubris is a pretty big mountain to overcome but at some point they will”

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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.


Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market




Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market
Source: Pixabay

Bitcoin’s much-awaited Golden Cross, which many analysts claimed will lead to a resurgence of a bullish market, has been confirmed. The intersection of the 200-day moving average and 50-day moving average, which indicates the Golden Cross, was achieved over the past few hours.

Earlier today, the top cryptocurrency saw a massive rise after days of sideways movement. Bitcoin’s ascendance saw it break the $5,350 resistance level, which eToro’s Mati Greenspan had previously suggested will consolidate “buying pressure.”

Source: TradingView

Additionally, a major psychological level of $5,500 was also surpassed less than three weeks after Bitcoin broke the $5,000 mark.

The Golden Cross theory holds credibility among analysts in the cryptocurrency realm as it infers that the coin’s average price is above its 200-day equivalent. For the first time in over a year, the cryptocurrency market has seen its 50-day MA move above the 200-day MA, which according to many is a sign of a bullish market.

On the opposing side of the Golden Cross indicator is the Death Cross, where two indicators cross over into a bearish market i.e. the 200-day MA moves above the 50-day MA. The Death Cross manifested in April 2018, after the prices went into a free fall following the December 2017 high.

In April 2018, BTC was priced at just over $7,000, following which it lost more than 50 percent of its price by the end of the year. The price of the king coin has recovered exceedingly well in 2019 however, winning back almost 50 percent of its lost value.

Many analysts, including Greenspan, agree that the crossing of the two moving averages is a clear testament to the return of the bull market. Although he didn’t quite use those words, Greenspan tweeted,

“Ladies & Gents… The Golden Cross!
Bitcoin’s 50-day moving average (gold) crossing above her 200-day moving average (blue). 📈
This is yet another sign that we’re back in a🐂market. 🚀🌛”

However, in an exclusive interview with AMBCrypto last week, Greenspan had stated that the Golden Cross theory is a “lagging indicator,” as the Death Cross was last seen in April 2018, months after the market took a bearish turn.

In his view, the 200-day moving average is the key indicator. On April 2, Bitcoin broke this mark for the first time since March 2018, by recording a massive 17 percent daily gain and rising above $5,000.

Based on historic price changes with reference to the Golden Cross, the last time the 50-day MA soared above the 200-day MA, price of Bitcoin rose by over 8000 percent from $246 in October 2015 to almost $20,000 in December 2017. Given past market movements, the current market scenario, and the optimism in the air, the Golden Cross may just have initiated the Bitcoin bull market.

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