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Cryptocurrencies - Asset Class

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The mere fact that IG are offering Cryptocurrencies for its clients to trade tells me that they are not going anywhere for the foreseeable future.

Whilst there is demand for traders to trade them, brokers, will have to take positions on them and this will create demand. It may not be real demand in terms of real use cases but it will keep the momentum going until the real use cases begin to mature. 

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Guest BTC view

Number of possible reasons.

  • Consensus currently taking place. https://www.coindesk.com/events/consensus-2019
  • A number of providers have said they’re looking to closed Beta test futures trading and looking at BTC deliverable rather than cash settled futures.
  • New crypto ETFs have recently been filed at the SEC.

Outside of fundamentals I think this is sentiment change. Sell side pressure has gone as people think the bottom is in – trade activity is very much range / fib / Pivot traded. The majority of those who hold the underlying will always believe in it being revolutionary and won’t sell, so speculators are moving the price.

We’re also one year out of the bitcoin halving event. Historically there has been a steady rally into the event and then a parabolic move afterwards. I imagine the market thinks this will happen again – news outlets are already talking about it. https://www.coindesk.com/bitcoins-next-halving-rally-coming-soon-in-2019 Block rewards half, sell side pressure from miners who sell the majority of their stake to cover costs will reduce, inflation reduces from 3.6% to 1.8%...

Bitcoin halving countdown https://www.bitcoinblockhalf.com/

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17 hours ago, TrendFollower said:

You can now pay with cryptocurrency at Whole Foods

https://www.technologyreview.com/f/613532/you-can-now-pay-with-cryptocurrency-at-whole-foods/

@PandaFace and @andysinclair this article and the previous post above may be of interest to you both. 

Remember Luncheon Vouchers? Every time I read an article like this I replace Crytpo/Bitcoin with Luncheon Voucher and Blockchain with database 😉:

Quote

 

You can now pay with luncheon vouchers at Whole Foods

Cameron and Tyler Winklevoss want you to pay for groceries, movies, ice cream, and many other everyday retail products using luncheon vouchers. 

The news: The twins’ luncheon vouchers company, called Gemini, has formed a new partnership with payments startup Flexa to incorporate luncheon vouchers-payment capabilities into the scanners that let you pay with services like Apple Pay.

Users can now use an app called Spedn to pay with luncheon vouchers, luncheon vouchers Cash, or Gemini’s dollar-backed stablecoin called the luncheon voucher dollar for items at retailers including Whole Foods, Regal Cinemas, Baskin-Robbins, Starbucks, and others, according to Fortune.

Will luncheon vouchers-payments stick this time? The luncheon vouchers industry has wanted to achieve mainstream adoption in retail for ages. A number of merchants tried to accept luncheon vouchers payments in the past, but it was probably too early: paying with luncheon vouchers had yet to take off, and many retailers stopped taking it. In many cases that’s probably been down to price volatility and slow processing times.

Speed merchant: In this case, Flexa will serve as a bridge between merchants and the database, and will settle the payments in real time using its own network. Merchants can choose to take the payment in either luncheon vouchers or dollars. According to Gemini, processing payments like this will be cheaper than using credit card networks.

Whole Foods is not taking any risk on Bitcoin nor holding Bitcoin on it's accounts - it will simply allow bitcoin to be converted to fiat at it's stores, or rather it's accepting a "voucher" for a coffee, the voucher just so happens to have been bought with Bitcoin.

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@andysinclair,

You are right to challenge some of this. You do have a point as well. However, one must remember that to change the way we pay for goods and services around the world which has existed for many, many, many years requires a lot of time and effort. 

What we are seeing is a layered approach. This is merely a base layer which is trying to lay the foundations for an infrastructure involving Crypto, Blockchain, Tokens etc. to co-exist with Fiat currency. This will require a lot of time. It will not happen quickly or overnight. We are many years away from even getting close but all great and major change requires a starting point somewhere. 

This humungous project may fail but that does not mean they should simply give up. Eventually a consensus will emerge as to the most effective way to bring about this change of Cryptocurrencies, Tokens and Blockchain. 

I totally understand why you may not be so confident. I would be interested to see if you view could become more positive after reading some of the books I suggested earlier on in this thread? I posted the book list on Tuesday and it is on page 1 of this thread. I appreciate that you may have missed it with Caseynotes constantly posting to ensure only his posts are seen and the rest of our posts disappear from the 'Latest Forum Post' page. It does not matter how many posts or when I post, Caseynotes, seems to post pretty much quickly to ensure his posts are at the top. It may just be coincidence but it seems to be happening rather regularly for me to think it is a coincidence. Anyway I understand you may not have the time to read the books or simply may not wish to which is fine. I just think after reading the books you will acquire more knowledge and appreciation of the asset class. This will enable you to appreciate the time this is going to take and how it will happen in small steps along the very long path to the destination. 

 

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