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Ripple: Bank made ‘business decision’ to close my account over crypto-transactions, claims David Schwartz

Namrata Shukla



Ripple's David Schwartz informs about his forceful bank account closure in reply to NeuNer's Twitter rant
Source: Pixabay

The cryptocurrency community has been working relentlessly to further crypto-adoption by mainstream institutions. According to a recent report, Fidelity Digital Assets was interested in learning and investing in crypto. However, banks have always been tough on transactions involving cryptocurrencies. In a recent tweet, Ran NeuNer, crypto-influencer and CEO of Onchain Capital, shared his experience with his bank after it asked ‘for a call to discuss’ his crypto-related activities.

NeuNer tweeted,

“The compliance department at my bank has asked for a call to discuss my Crypto related deposits/withdrawals-It’s as if I have engaged in criminal activity by buying Crypto. The So for 2 hours today I will have to explain to a narrow minded idiot that buying Crypto is actually legal.”

This tweet attracted many prominent personalities from the space, everyone talking about incidents where banks failed to support their transactions, despite being completely legal. Ripple’s Chief Technology Officer, David Schwartz, advised NeuNer of “never doing any crypto-related transactions” from his “primary bank.” The CTO explained,

“Having your main account that you pay bills from randomly closed on you is very annoying. You’re lucky they’re talking to you. Union Bank just closed all my accounts and told me later.”

Schwartz said that the bank failed to inform him of his account being shut and that he found out about it only when his online banking services stopped working. On contacting the bank, Schwartz was told that it was a “business decision” to close his account. Similarly, Peter McCormack, notable crypto-blogger, also revealed that he encountered a lot of problems with his transfers, especially for operating a business that uses Bitcoin [BTC]. McCormack said,

“Operating a business which uses Bitcoin has come with challenges from the start, primarily getting banking services. I was rejected by 6 retail banks despite no mention of accepting Bitcoin in my application.”

Among people voicing their problems with banks was Tron Foundation’s CEO and Founder, Justin Sun. He also participated in this Twitter rant, but his tweet was not received well by the crypto-community. The CEO opined that it was necessary to make purchasing cryptocurrency a “basic human right.” He tweeted,

“Seriously, I believe we should petition the @UN to adopt buying crypto as one of the basic human rights in the #UDHR! Buying crypto is part of the Universal #HumanRights for EVERYONE in the world!”

The crypto-community has been facing a tough time with banks, with almost all crypto-related transactions leading to forceful account closures. However, an absolute solution to this problem is yet to materialize.

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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise




JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:

“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.

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