In an interesting development which points towards growing acceptance of cryptocurrencies and blockchain, Swiss bank Falcon announced on …
In an interesting development which points towards growing acceptance of cryptocurrencies and blockchain, Swiss bank Falcon announced on Monday that it has introduced direct transfers of selected cryptocurrencies for both private and institutional clients. As per the press release, Falcon Private Bank has reaffirmed its position as the leader and pioneer in the arena of using blockchain banking by accepting direct transfers of selected cryptocurrencies.
After the announcement, with immediate effect private users private and institutional clients can directly transfer cryptocurrencies to and from segregated Falcon wallets, as well as convert them into fiat money. This new move makes digital assets fully bankable.
To start, Falcon reportedly only supports four major cryptocurrencies, Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC), the press release notes.
The press release further goes on to add that customers can now place trading orders conveniently through e-banking or a dedicated relationship manager. Digital assets will now be included in portfolio statements as well as in tax reporting documents.
The bank has taken every care to make the whole process secure and fool proof. The process ensures compliance to AML laws and it also takes care of the KYC laws and regulations, making it a robust and secure process.
Speaking about this latest offering, Martin Keller, CEO Falcon Private Bank said, “Falcon has once more seized the opportunity to demonstrate its expertise as a market leader in the digital assets space by merging traditional private banking services with innovative financial solutions.”
It is important to note that Falcon’s custodial service has been audited and examined by third-party providers, the company stated.
Falcon Private Bank was the first bank to be given the green light by the Swiss Financial Supervisory Authority (FINMA) to manage blockchain-based assets in July 2017.
By CCN.com: Throughout the 2017 crypto market bull run, bitcoin price predictions kept the crypto hype train fat and happy. Whether it was eccentric …
Asset manager Lucid makes the case that the bitcoin price could one day rise as high as $10 million. | Source: Shutterstock
By CCN.com: Throughout the 2017 crypto market bull run, bitcoin price predictions kept the crypto hype train fat and happy. Whether it was eccentric ICO promoter John McAfee promising to emasculate himself if bitcoin failed to reach $1 million within three years or Fundstrat setting a “conservative” price target at $25,000, every crypto influencer had a price target — and most represented significant upside, often in the extremely short-term.
Increasingly, though, such optimistic — and specific — bitcoin price targets seem like a relic from a bygone era. Even Tom Lee, perhaps Wall Street’s biggest crypto bull, rage-quit the bitcoin price prediction game, complaining that the market failed to recognize that the asset’s true value was far above its current level.
Lucid: Global Debt Crisis Creates Major Opportunity for Bitcoin
Against this bearish backdrop, asset management firm Lucid Investment Strategies is breaking away from the pack to make a bull call that sounds like a throwback to 2017: The bitcoin price could one day reach $10 million, become the new gold standard, and solve the world’s debt crisis.
According to Lucid, the ratio of global debt to wealth has spiraled out of control, creating a “grotesque imbalance” of wealth inequality. As of the end of 2018, total world debt was an estimated $247 trillion, compared to $317 trillion in total world wealth. But while global wealth continues to outpace debt, the gap is quickly closing; Over the past 20 years, debt has ballooned by 394 percent, while wealth has climbed just 133 percent.
Writing in a new report, Lucid claims that this status quo is not sustainable and that the world economy must eventually locate a solution to address the debt crisis. The five most likely strategies, the firm says, are the adoption of a gold standard, the creation of a new commodity/currency basket, economic growth, outright default on sovereign debt, or mass investment in bitcoin.
While perhaps not the likeliest outcome, the firm maintains that bitcoin is the best alternative since it would provide a “permanent fix” to the debt crisis while limiting the damage that will inevitably accompany widespread economic upheaval.
From the report, which was drafted by Lucid President and Chief Investment Officer Dean Tyler Jenks and Executive Vice President Leah Wald:
[I]s this [mass bitcoin adoption] feasible? Probably not. But we believe it is possible and we believe it offers the greatest benefits with the least collateral damage to the least number of individuals, corporations, institutions, and countries. Most importantly, it would provide a permanent fix, a quality that none of the other solutions provide.
Were this to occur, the bitcoin price would inevitably enter the stratosphere. But how high could it go? Lucid says that $10 million is a good estimate.
Why $10 million? At that level, Bitcoin would provide a sufficient reserve to alleviate the world debt burden. Bitcoin would be worth between $180 trillion and $210 trillion (depending on when that price was reached). Assuming world debt had reached $500 trillion at that time, remember it has grown by 394% over the past 20 years, Bitcoin would represent a 40% reserve against the debt.
How the Bitcoin Price Could Climb to $10 Million
From there, the report examines what sort of path bitcoin would have to take to reach the $10 million mark from where it is today, knee-deep in a 13-month bear market and languishing near the $3,500 mark.
The first step, of course, is breaking out of that slump. Unfortunately, that might happen later rather than sooner. Like many analysts, Lucid believes that the bitcoin price has not yet bottomed — far from it, in fact — but will likely crash below the $1,000 mark before the firesale runs its course.
Exposing Altcoins as Cheap Knockoffs
One important trigger for establishing a bottom will be the “utter decimation” of altcoins and initial coin offering (ICO) tokens, which will prove once and for all that bitcoin is digital gold, and its so-called competitors are just cheap knockoffs.
The next big step in this journey will be the utter decimation of altcoins, ICOs and the realization of the important attributes of Bitcoin. That process has begun, but the regulators must regulate. We believe they will. During this time, Bitcoin will continue to lose value, but at a much slower rate than its competitors.
With the bottom in and no more nonsense about “building a better bitcoin,” the flagship cryptocurrency would begin to grind upwards. After facing initial resistance, the bitcoin price would begin to quicken its ascent as it breaks through key technical hurdles on its way to setting a new all-time high around $20,000.
Replacing Gold as Premier Store of Value
Bitcoin’s next major challenge would come at $100,000, the mark at which it would begin to rival gold as the world’s premier economic hedge. If investors begin to sell gold for bitcoin, the cryptocurrency could quickly eclipse the yellow metal. If not, the path would be slower, though still possible.
Notably, it’s also here that Lucid believes developers must begin delivering on promises to scale the cryptocurrency’s protocol to accommodate a much more crowded network. Scaling, coupled with institutional adoption and regulatory clarity, would put bitcoin on track to become not just a store of value, but the world’s reserve currency.
“This accomplished, the road to $1 million will smooth and straighten. The hurtles will be $1 million both psychologically and financially,” Jenks and Wald wrote. “At $1 million, Bitcoin will have a market cap of $18 trillion. It will be in the major league of asset classes and pockets of wealth. It will be a contender.”
As the fastest growing asset class in world history, it will no longer be ignored by pension funds, sovereign wealth funds, institutional money managers, endowments, financial institutions, and even governments. These will fuel the trip, at high speed to $10 million.
When Pricing Bitcoin, Ask the Right Question
Again, Lucid acknowledged up front that this thought experiment is unlikely to manifest in the real economy. However, they maintain that it could happen, and if it could happen, then why shouldn’t bitcoin bulls gamble that it will, even if only to a much smaller degree?
“Do we believe Bitcoin will be chosen [as the solution to the debt crisis]? That is the wrong question,” Jenks and Wald said as they concluded the report. “The right question is: will there be a choice? Alternatively, will the economic disequilibrium force resolution, probably default?”
Featured Image from Shutterstock. Price Charts from TradingView.
I’m going to keep this short as Bitcoin and Ethereum have both followed their respective red counts, although not as a triangle for 4. That’s academic …
Red Path Confirmed
I’m going to keep this short as Bitcoin and Ethereum have both followed their respective red counts, although not as a triangle for 4. That’s academic though. What is key now is that we hold one more low, which should be 5 of V of C in both counts. While I still count support as $3320 in Bitcoin and $94 in Ethereum, these counts are more than ‘full’. And, if we see correction action out of these levels in this coming week, I will presume a break of support is coming, at least as far as trading goes. By that I mean risk management will be more important than trying to catch a low, at least until five up toward the range of the .382 and .618 extension.
I currently have $3368-$3400 as the probable zone for a bottom, and strong over $3575 suggests this small wave 5 is complete. We saw a nominal break of resistance for 4, but only a spike through that did not follow through. Obviously, we then came back down.
I currently have $105 to $109 as the probable zone for a bottom, and strong over $121 suggests this small wave 5 is complete.
I have ETHBTC wrapping up a WXY as long as it holds .03
No change to GBTC at this time, and still quite unclear.
Starting at 2019/01/22 10:00 AM (UTC), Binance will open trading for BCHABC/TUSD, BCHABC/PAX, BCHABC/USDC, BCHSV/TUSD, BCHSV/PAX and BCHSV/USDC trading pairs. Earlier one could only trade using BTC and the stablecoin Tether (USDT).
As usual, the announcement attracted criticisms from the users who are still angry about the hardfork which is said to have worsened the crypto winter. A user said
“How about delisting instead?” To which another realized, “Exactly, please delist it, all bitcoin fork is a scam.”
Even though, many were not too excited about the listing some did seem a bit happy, especially with having an option of additional stable coins.
Both BCHABC and BCHSV have been the center of controversies. However, many traders are using these controversies, which has led to increased volatility when compared to other coins, for their profits. It is only those traders that will be excited by this announcement.
Bitcoin SV, which has fallen behind even TRON with a market cap of $1.3 Billion, sees very less trading. The daily trading for SV is a meager $50 million. BCHABC is still doing a bit better with a daily trading volume of over $200 million and is ranked 4th when it comes to market cap.
Popular crypto payments portal Coingate has initiated a trial of the Lightning Network (LN), currently applicable on just Litecoin payments. Coingate is a service that lets regular users as well as online merchants to buy, sell and accept payments in terms of Bitcoin and more than fifty altcoins.
As Veronika Mishura, the manager of the Coingate platform explained that even though the crypto payments firm usually processes a large number of Bitcoin payments, Litecoin transactions also make up roughly ten per cent of their total volume of transactions in a month.
The use of Lightning Network the facilitate Litecoin (LTC) payments is expected to introduce quite a few benefits and points of convenience for merchants who mostly make these transactions. Since the Lightning Network has more than one hundred nodes, it means that integrating it with the system of transactions will not only boost the speed of them, but also bring down the costs. This is expected to get more merchants interested in availing of Litecoin transactions over the network owing to the decrease in the amount of fees that are to be paid.
As Mishura reportedly commented, it may not always be practical for merchants to use cryptocurrencies for payments. However, that problem is taken care of if the cost of transactions can be dropped substantially.
Moreover, if you have read our beginner’s guide to Litecoin, you would know that this coin is meant for lightweight transactions, which is also expected to be a major factor in heightened adoption.
“VPNs are to be honest one of the most frequently used services by crypto-enthusiasts (what we see by our data). However, due to quite low price, it is usually a no-win to pay for it with Bitcoin or Litecoin; and that’s exactly what Lightning should solve. That’s what we are trying to showcase – paying even for low-priced products should be possible, convenient, and cheap using cryptocurrency.”
As of now, Coingate has a user base of 4,500 merchants who use the platform. The first company that will be able to take advantage of Lightning Network’s integration with Litecoin transactions will be Surfshark, a VPN provider.
Rushali Shome is a history undergraduate with a keen interest in puns, politics and beyond. When not typing away furiously in the “Notes” section of her phone, she can be found trying to catch the eye of servers at restaurants or weddings for a second helping.