The integration of the cryptocurrency market with the mainstream financial market has been a priority ‘numero uno’ for luminaries in the world of digital assets. The goal has been slowly getting traction as many mainstream institutions are partnering with cryptocurrency companies or they themselves are creating their own set of tokens and distributed ledger technologies.
In the latest International Monetary Fund [IMF] Springs Meeting held in Washington DC, officials from various organizations such as JPMorgan and M-Pesa spoke about the effects of DLT and the changing landscape of the financial market in a panel moderated by IMF Chief Christine Lagarde.
The official from JPMorgan stated that the organization’s entry into the field was to provide useful solutions for customers and that a little bit of competition in the field, if beneficial to the users, is always welcome. She added:
“The United States is a mature market but is still less mature when you compare it to markets like China. They have a very mature infrastructure at the point of sale and calculations show that almost 72 percent of the transactions is represented by debit cards or credit cards.”
The JPMorgan official admitted that the focus is still to make it a Peer to Peer network but with the security of a banking structure. She also revealed that distributed ledger technology is great to bolster the KYC-AML [Know Your Customer-Anti Money Laundering] process. According to her:
“The DLT is great to filter bad actors in the banking system. It is a much better process when compared to the earlier ways of making phones calls and confirming with other banks and entities.”
Christine Lagarde further asked the JPMorgan official if the ledger stores the history of transactions, to which she replied that they don’t as it is a collaborative effort involving over 200 banks. The banking giant also claimed that they don’t charge other banks for accessing their ledger.
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Bitcoin’s 2017 bull run was fueled by FOMO & hype; present run more fundamentally driven, claims report
Here we go again. Another bull run. Another “hype session” among investors as Bitcoin rises again. The cryptocurrency market is well known for its incredible shift in market sentiment, especially on the back of the world’s largest cryptocurrency surging again.
Bitcoin not only reached its 16-month high today, but it also recorded a growth of 15 percent over the week. This has contributed to several analysts and industry insiders speculating how high Bitcoin will go, with Anthony Pompliano claiming that the digital currency will soon cross its all-time-high valuation of nearly $20,000 and reach a massive $100,000 by 2021.
These predictions have definitely contributed to the coin’s growth as while the present surge is similar to the 2017 rally, it’s not driven by FOMO alone.
A recent comparison drawn out by the SFOX Volatility report compared the preset rally with the bull run of 2017.
The report suggested that the rally of 2017 was largely driven by ‘FOMO.’ When Bitcoin started climbing the valuation ladder, word got out and many investors discovered virtual assets for the first time. The rally of 2017 was mainly fostered through hype and speculation, since there were no major readings or past data to back the rising price.
The present run, while similar, is different in some aspects, one of them being that Bitcoin has a larger user base now than in 2017. While FOMO remains a major factor in driving the price up, the current surge is also backed by developments in the ecosystem, such as the entry of retail investors and huge financial/non-financial institutions joining the crypto-bandwagon.
Facebook’s crypto project, Libra, and Bitmain’s pursuit for a U.S IPO have validated Bitcoin and the rest of the cryptocurrency market, a luxury not available to the market of 2017. The present rally thus, is more mature than the 2017 rally as the present market’s fundamentals are more data-driven.
There remain some stark similarities in the trends however. For instance, in 2017, the push from $9000 to $11000 took place in a period of 7 days. The current push from around $8800 to $11000 came to be in 8 days.
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