Twitter CEO Says Bitcoin Will Become World’s ‘Single Currency’ Within A Decade.
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G20 Confirms There Is No Need to Regulate Cryptocurrencies as of Right Now.
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Fundstrat’s Analyst Tom Lee Predicts Bitcoin Price to Reach $91,000 by March 2020.
The articles:
Jack Dorsey, the CEO of both Twitter and payment service Square, has said that he sees Bitcoin (BTC) as the world’s – and Internet’s – single future currency, The Times reports today, March 21.
Dorsey believes that Bitcoin’s leading emergence will take “probably over ten years, but it could go faster”:
“The world ultimately will have a single currency, the Internet will have a single currency. I personally believe that it will be Bitcoin.”
At the end of February 2018, Dorsey had previously said that Square will focus on developing more options for interacting with Bitcoin via their Cash App, calling it a “transformation technology for our industry.”
Dorsey did note to The Times that he does not believe that at the moment BTC has the capabilities to become an effective currency, namely as a medium of exchange:
“It’s slow and it’s costly, but as more and more people have it, those things go away. There are newer technologies that build off of blockchain and make it more approachable.”
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A lot of people are concerned that the G20 will crack down on cryptocurrency and potentially even ban Bitcoin and altcoins. So far, it seems those concerns are unnecessary, as the group has no immediate plans to intervene in this industry. In fact, the group has rejected the call for regulation, which is an extremely bullish signal for the industry as a whole.
For those not aware, the G20 is an international forum for the governments and central bank governors from Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, the Republic of Korea, the Russian Federation, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union.
G20 REJECTS CRYPTO REGULATIONWhenever the topic of cryptocurrency regulation comes up, there will be a wide variety of opinions. To some people, regulation is irrelevant, as cryptocurrencies can’t be regulated in the first place. With no central authority or company to provide access to this new form of money, there is very little regulators can do by default. Going after the service providers in this industry is not the right course of action either, as doing so will irk consumers first and foremost.
It seems the G20 agrees with this sentiment, as the group has officially rejected the call to regulate this industry moving forward. That decision comes as quite a surprise, considering both France and Germany were adamant on putting Bitcoin regulation on the G20’s agenda. It seems any concerns people may have had regarding Bitcoin regulation are pretty much moot right now. That is a good thing, although the topic may be revisited at a later time.
During a meeting Sunday afternoon, the G20 issued an official statement indicating that the global watchdog will review existing rules rather than design new ones. This means we will not see any new regulations for Bitcoin, altcoins, or other so-called “financial threats” anytime soon. It also confirms that the existing rules and guidelines do not apply to cryptocurrency, which will certainly be a thorn in the side of many regulators around the world.
Even though the global interest in cryptocurrency has never been higher than it is today, the G20 isn’t too concerned about the impact of these markets. While that doesn’t mean Bitcoin suddenly no longer poses a threat to financial stability, the prospect of regulating something that can’t be controlled isn’t all that appealing. It seems the G20 made it clear it doesn’t want to get involved in cryptocurrency regulation.
Whether or not this means the volatility in the cryptocurrency market is finally behind us remains to be determined. There is still a lot of bearish pressure on all markets as of right now, and it seems the current 24-hour gains could be wiped out in a matter of hours. For the time being, caution is still advised, even though the recent price dip has certainly created an excellent buying opportunity for both novice enthusiasts and investors alike.
***********************Tom Lee, in his analysis, has presented a new Bitcoin Misery Index which is a contrarian indicator which meaning the lower Bitcoin goes, the higher are the chances to rise again.
The overall cryptocurrency market has gone through a painful journey so far in 2018. There has been a significant erosion of more than 50% in the overall valuations of the crypto markets which started the year at above $800 billion valuations and is currently at around $330 billion. The journey of the most dominant cryptocurrency ‘Bitcoin’ has been on similar lines which started the year above $17,000 and has corrected by more than 50% to trade currently at $8500 levels, according to data onCoinMarketCap.
Although Bitcoin price has been moving sideways, popular analyst and head of research at Fundstrat Global Advisors – Tom Lee – continues to remain bullish. Lee recently made yet another claim that by March 2020, Bitcoin can rise to as high as $91,000. Lee’s predictions are based on a huge database, graphs and statistics on Bitcoin which helps to chart the short-term and long-term trends. The details include the cost of Bitcoin mining, daily and monthly trading trends and deep technical analysis.
Last week the crypto markets witnessed yet another deep correction of this year where nearly $50 billion-plus were wiped off from the overall market cap. The correction came as a result of multiple reports of increased global scrutiny of regulatory bodies along with Google’s ban on crypto ads adding to further woes. Fundstrat analysts including Tom Lee and Robert Sluymer wrote: “When sentiment is this weak, the market is increasingly ‘fire, ready, aim’ — meaning, any headline today is likely to trigger selling.”
Earlier this month, Lee also presented the Bitcoin Misery Index or BMI which is currently at the second-lowest point in past eight years. The BMI is a contrarian indicator which means that the lower it goes, the higher are the chances of Bitcoin to rise again. The graph that Lee and his team has presented shows that it is not for the first time that Bitcoin has corrected by this huge margin and similar losses have occurred in stretches during the 2011 and 2013 period. But the graph also goes to show that after every such drop, the cryptocurrency has delivered a solid pull-back thereby eclipsing the returns of any other digital currency during the same time-period.
Lee describes this recovery as a “monster-rally” wherein Bitcoin is shown to have generated unprecedented returns. This is not for the first time that Tom Lee has made such predictions. Earlier this year, Tom Lee said that Bitcoin might hit the $25000 benchmark by the end of 2018.
Apart from just Bitcoin, Tom Lee remains bullish on other cryptocurrencies like Ethereum which in addition to Bitcoin will benefit from “larger and more established blockchains growing in dominance” this year, as mentioned in the Fundstrat report.
Moreover, Forbes in the recent article said that the ban on crypto advertisements will, in fact, help fundamentally strong cryptocurrencies like Bitcoin, Ethereum, Ripple and others. It says that the ban will further help to filter out all the scam coins in the market due to which investors will shift more towards the fundamentally strong ones.
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