Banks and the cryptocurrency world have been at odds ever since the latter emerged a decade ago. From initially shrugging decentralized currency off as a mere distraction, now the disruptive force has irked the banking industry with the seventh largest bank in the world, HSBC rumored to be halting cryptocurrency transactions.
Hong Kong and Shanghai Banking Corporation [HSBC], the British multinational financial services giant is purportedly engaging in blocking all transactions related to cryptocurrencies. According to cited sources the reason behind this “censorship,” is because virtual currencies are “volatile.”
According to a Reddit thread by a BlockHeart357 titled, “HSBC Apparently Blocking All Crypto Purchases…?” the author details his conversation with a “customer service agent” of the bank. The author stated that prior to this incident, crypto purchases were carried out “without any major issues,” but then, out of the blue, his card got ‘blocked.’
“I come to find out that HSBC now seems to be blocking crypto transactions on all cards, even debit.”
The conversation with the agent attested to HSBC blocking crypto transactions due to the “especially volatile” nature of the underlying assets. The agent reiterated that “for these kinds of transactions,” referring to those pertaining to decentralized currency, the bank had decided to ‘block’ the card of the author in question.
A furious BlackHeart357 stated,
“So what the fuck is my alternative now? Go to a new bank, have to open an entirely new account, all that shit, just to potentially run into the same issue? Go to a Bitcoin ATM and pay an exorbitant percentage fee that is basically thievery? This is horseshit.”
Another inkling of the HSBC-crypto-block was revealed by a Trenton Gaddis, attested to the same, tweeting,
Long $BTC, short HSBC
HSBC now seems to be blocking crypto transactions on all cards, even debit. At least, that’s what the customer service agent told me.
Well, HSBC has decided to not allow this kind of transaction because cryptocurrency is volatilehttps://t.co/PpPkE23vI8
— Trenton Gaddis (@DDGaddis) June 1, 2019
Ambcrypto reached out to HSBC regarding the matter and are awaiting a reply.
Several banks have engaged in issuing threatening notices to customers who transact cryptocurrencies and outrightly blocking them as well. Recently, the Indian private lending financial institution HDFC [Housing Development Finance Corporation Ltd] issued “threatening” e-mails to customers purchasing cryptocurrencies.
HDFC, in the notice, told the customer to “clarify” the nature of transactions within a 30-day period, failing which the account would be ‘frozen.’
Another Indian bank, Kotak Mahindra stated that a customer’s Credit Card would be blocked if the bank account was used in the purchase or sale of virtual currencies.
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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