Cryptocurrency’s recent status in the limelight has compelled federal agencies to deploy new sets of regulations. The former Director at the Unites States Mint, Honorable Edmund C. Moy, in his latest interview, highlighted the possibility of fiat and cryptocurrencies co-existing. He explained that the lack of an authority to regulate and define crypto has resulted in “each individual agency to see what aspect of cryptocurrency comes within their jurisdiction”. He added,
“Financial institutions such as Bank of England and Royal Bank of Canada have also begun their research on how crypto could benefit fiat currency. To preserve the potential of cryptocurrency requires a really wise regulation.”
This so-called “wise regulation” will eventually lead to new laws being implemented, something that will contradict the existing “total free market”. On the other hand, Moy added that the decentralized industry (crypto-companies) can also provide a roadmap for regulators as to how best to regulate the industry, without killing innovation. Bank of England and Royal Bank of Canada have already begun their research on how crypto could benefit fiat currency, he added.
Moy also shared his belief of a two-fold approach to create a crypto-fiat synergy in today’s economy, which involved cooperation between governments and prominent players within the crypto-community. Additionally, he supported the decentralized industry by saying,
“Having a free market is best for the consumer. But to make sure there are no bad players, companies must self-regulate to really high standard.”
Moy concluded the interview by revealing some of his recent efforts at creating a sustainable crypto-fiat ecosystem, which included his involvement with ICOx Innovations for developing digital economies that can serve as a model for future businesses.
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Bitcoin’s on-chain/off-chain valuation indicators the key point of focus as coin heads to $13,000
With the rise in Bitcoin’s price, the rest of the cryptocurrency market has followed suit by displaying a green trend across the board. In a recent series of tweets by popular cryptocurrency analyst Adam Tache, users were informed about the top Bitcoin on-chain and off-chain valuation indicators, derived from on-chain valuation models.
The analysis touched on the Mayer Multiple created by dividing the price by the all-important – 200 day moving average. The current average Mayer Multiple stands at a figure of 1.39, which may climb higher. Looking at previous figures, the normal Mayer Multiple figures stated that if the value shoots up to 2.4, then Bitcoin eventually retraces back to a comfortable 1.5. The Mayer Multiple is usually considered as the original indicator used to clock the valuation of Bitcoin.
Another major indicator discussed in the thread was the NVT Ratio invented by Willy Woo, Partner at Adaptive Fund. The indicator is used to calculate Bitcoin’s prominence or value in the cryptocurrency space by evaluating the amount transacted on the blockchain as a “proxy for investment flow and bear and bull market cycles.”
At the moment, the NVT ratio for Bitcoin is in an abnormal region compared to the start of previous bullish patterns. The NVT ratio was above the “bear market” separator, which meant that the cryptocurrency was overbought. When Bitcoin is overbought, it usually means that the buying pressure is much higher than the selling pressure. Adam Tache opined,
“NVT signaling overbought is likely due to a number of factors — namely the proliferation of exchange-based, purely off-chain txs driving short-term price action.”
The analysis also pointed out the liveliness of the Bitcoin indicator created by Tamas Blummer. The indicator showed the inverse count of lost or ‘HODLed’ Bitcoin, while stating that when the ratio increases, long-terms holders of the cryptocurrency decrease their positions. The indicator conveyed accumulation of Bitcoin when the ratio decreased.
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