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Stellar Lumens [XLM]: Payments depend really heavily on network effects, says Jed McCaleb

Priya

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Stellar Lumen [XLM]s Jed McCaleb says "payments depends really heavily on network effects"
Source: Unsplash

Stellar Lumens [XLM], the eighth largest cryptocurrency by market cap, and Stellar.org, has made headlines over the past couple of days.

Additionally, the cryptocurrency is going to be used for cross-border, near-instant transactions as part of the IBM Blockchain World Wire. The payments solution is going to be used in more than 50 countries, with the support of the Stellar protocol.

Jed McCaleb, the CTO of Stellar.org and Jesse Lund, the Head of Blockchain and Digital Currencies at IBM, spoke about cryptocurrency enabling financial inclusion, during the Money 20/20 conference. They also spoke about the progress cryptocurrencies have made in the payments sector.

Jesse Lund spoke about how this new step would have a positive impact in terms of financial inclusion, and how it would help banks and money transmitters make faster and cheaper transactions. Lund stated that digital currencies would definitely have a positive impact on financial inclusion, adding that it is one of their focus areas.

He further stated that there are around 2 billion adults across the globe, with no access to financial services or bank accounts. However, over a billion have access to smartphones capable of storing digital value, he added. Jesse Lund said,

“That’s the whole point. I mean we can actually bring money further and farther than it could ever go before even if there’s not you know a tangible banking presence in some of these emerging economies.”

He further stated that this factor is the reason for the growth of the payments industry. He added,



“It’s not just taking revenue or market share away from somebody else some of the incumbents. There’s actually new business being born because there’s 2 billion people in the world that can now be part of this global financial economy”

This was followed by Jed McCaleb speaking about the progress of cryptocurrency adoption in the payments industry. McCaleb stated that several people in the cryptocurrency space “underestimated” the time it would take for cryptocurrency adoption in payments, adding that he has been working in this sector for over eight years now.

“[…] the reason why is that payments depends really heavily on network effects and that’s just not there yet and and the only way that it can kind of be achieved is by bringing like a consortium like a whole group of people together that are willing to adopt one common thing at the same time and that’s exactly what World Wire is doing or so I think”

This was followed by McCaleb stating that even though there has not been much progress, there is a lot of interest for such an endeavour.

“So being able to bring them all at once we should see like the snowballing effect and things really got get rolling now so I’m not that interested in the last six months but the next six months in the next year is things where things are going to really start to heat up”





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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

Bitcoin [BTC] surges above $5,500 and breaks major resistance level; collective market rises

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Bitcoin [BTC] surges above $5,500 breaking major resistance level; collective market surges
Source: Pixabay

Bitcoin [BTC] broke out of its sideways trend that saw coins fall after a brilliant start to April. This “break-out” is especially significant since it came days after the coin was trading sluggishly, pulling the market cap below $175 billion.

After breaking the $5,200 level on April 16, the coin held steady, showing no noticeable dips. However, it also began losing the momentum it had gained when it rose by 15 percent on April 2. Many saw the past week as Bitcoin losing steam, opining that a drop to as low as $4,000 would manifest. This pessimism coupled with the delisting dilemma saw the global market decline by 3.31 percent over the past weekend.

Given this backdrop, the present Bitcoin price incline was even more bullish for the collective market. Further, this was not just an effort to shrug off “sideways bears,” but instead, two key levels were broken in order to usher a collective market rise and sustain BTC bullishness.

Source: Trading View

RESISTANCE

The first, as indicated by eToro’s senior market analyst Mati Greenspan, was the resistance level of $5,350. When Bitcoin began to consolidate following the early April high, Greenspan stated that if the BTC price were to punch above the aforementioned level, it “would likely serve as confirmation that we’re pushing higher and will lead to further buying pressure.”

Greenspan stated that the $5,350 level acted as a major support level throughout 2018. Hence, it is incredibly important that Bitcoin surge above it in the next rise to consolidate buying pressure. Another important point to signal the coming of a bullish market was the 200-day moving average which Bitcoin has stayed above since the April 2 rally.

PSYCHOLOGY

The other significant level for the collective market is Bitcoin’s ascendance over $5,500, which it managed courtesy of this rally. Many, including Greenspan, pegged $5,000 as a key psychological level for the coin and hence, the rise above $5,500 less than three weeks after $5,000 was broken will bring back optimism to the BTC market.



Further, as was seen in the April 2 rise, the Bitcoin pump resulted in the king coin increasing its market dominance. At the close of March, Bitcoin was edging closer to losing the majority. However, the rally saw its share increase to 52.4 percent within a day. Following this recent 4.61 percent increase against the US Dollar, the king coin’s dominance increased to 53.2 percent.

Given the elasticity of the collective market to changes in Bitcoin’s price, the market was awash in green as Bitcoin broke the resistance and psychological levels. Amid this bullish charge, some coins stood out for their above-average gains, which included Bitcoin Cash [BCH], Cardano [ADA], EOS [EOS], Litecoin [LTC], and the exchange-ousted Bitcoin SV [BSV].





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