Can Bitcoin ETF Skyrocket the Market Like It Did For Gold?
Bitcoin’s latest surge could be in preparation for ETF which, in the gold market, played a huge role in upping its price. Can Bitcoin replicate this?
Gold has always been a steady and reliable asset, but it has also been one that is ever evolving and growing. There have been changes in the gold investment game that have helped it along the way, and one of the bigger ones has been ETFs.
An ETF is a kind of investment fund where the price of assets like gold, stocks and oil can be tracked. These assets can then be traded on exchanges, just like conventional stocks.
So, if we look at the graphs of Bitcoin and Gold over a period before the introduction of ETFs, and then after in the case of the precious metal, there are some clear and obvious similarities.
A matching graph
Gold’s growth in value has seen a few big changes, one of those being in the 1980s when Richard Nixon unsealed the US Dollars from gold, and that increased its worth as a result of demand and supply. Gold increased from $20 to $30 an ounce to about $600.
Then in 2003, the gold-backed ETF was introduced into the market by the Rothschilds and the Deutsche Bank; and this skyrocketed the price of gold to $1,300 an ounce, which is a 300 percent increase.
Bitcoin, who's price graph matches Gold’s in a manner which is slightly eerie, is now very much on the brink of its ETF moment.
The president of CBOE, a company that also has Bitcoin futures markets out there, has been trying to persuade the SEC to allow for ETFs to come to fruition. This follows from the first ever application in 2014, when the Winklevoss twins made the first formal proposal. Three full years later, the SEC finally got around to reviewing the proposed ETF - and rejected it.
But with the growth of Bitcoin recently into a much more stable and mass accepted product, it is getting harder and harder for the SEC to deny this moves. The SEC has spoken positively about Bitcoin before and could well be warming up to it.
Take over the gold market
There is also a belief that Bitcoin could start to outshine gold as an asset should it reach its ETF level. Gabor Gurbacs, director of digital asset strategies at VanEck/MVIS, says the following:
“Gold today has around $7 tln outstanding. If you take, say, five to 10 percent, I’ll let everyone do the math, Bitcoin has upside,” he explained. “Bitcoin is used as digital gold today. It’s a de-ri, if someone wants to outlay systematic risk, then one would go to access gold or digital gold (Bitcoin).”
It is interesting times for Bitcoin with positive rushing back to the market. If it was too suddenly pick up a major institutionalized coup like an ETF, it could well be a game changer.
A focused on an in-depth comparison of three major exchanges: Bitstamp, Kraken and Coinbase
When it comes to American exchanges, Kraken and Coinbase are the two obvious leaders on the market. They are currently situated neck-to-neck on the CoinMarketCap list (the 12th and the 13th places respectively).
Another highly reputable European exchange is called Bitstamp. As of now, Bitstamp trails behind the aforementioned two exchanges sitting at the 19th position with an average trading volume that is about to cross a $99 mln mark.
All three aforementioned exchanges were founded around the same time in 2011. They are highly reputable and well-known, and have managed to survive in a highly competitive market. Bitstamp vs. Kraken, Coinbase vs. Bitstamp, Bitstamp vs. Kraken vs. Coinbase- let’s find out which one of them is the best option for investors.
Bitstamp vs. Kraken vs. Coinbase: Availability
Bitstamp is one of the longest standing exchanges out there along with Kraken and Coinbase. Bitstamp was originally founded in Slovenia, then they moved servers to Luxembourg where Bitstamp was licensed by local authorities. Consequently, Bitstamp became the first fully regulated exchange in the entire cryptocurrency industry. As of now, it operates in 28 EU countries along with 50 other countries around the globe.
Kraken hardly has any competitors in this area, since the exchange is available all around the world. However, judging by the fact that their official website is available only in two languages (English and Japanese), one can make a conclusion that this exchange mainly focuses on American and Asian markets.
Coinbase is supported in 32 countries (mainly Europe and the Anglosphere). As of July 2018, Singapore is the only Asian country where this exchange is available.
The winner: Kraken
Bitstamp vs. Kraken vs. Coinbase: Supported assets
The Gemini vs Coinbase vs Kraken debate is impossible without reviewing the variety of supported assets. The same is true if one replaces Gemini by the aforementioned Luxembourg-based exchange Bitstamp.
Bitstamp allows its users to purchase five cryptocurrencies:
NB! The US dollar and the euro are both supported here (just like on the other two fiat-to-crypto exchanges).
Kraken offers a fairly big amount of altcoins for a fiat-to-crypto exchange. As of June 2018, the company features 16 currencies, but promises to add as many as 1,600 coins. However, investors should consider this tongue-in-cheek tweet with caution, since that tween was supposedly an attempt to poke fun at Coinbase.
However, the exchange has recently appeared in the headlines after an announcement about adding five more currencies (which reportedly have already been vetted by regulators).
The winner: Kraken
Bitstamp vs. Kraken vs. Coinbase: Trading platform
Bitstamp is popular with experienced users with traders who are looking for advanced trading tools. Bitstamp‘s Tradeview-powered candlestick chart reflects most recent price fluctuations and provide users with plenty of instruments for in-depth analysis. It features both market and stop orders, but, unfortunately, a Luxembourg-based exchange doesn’t support margin trading which may come as a big drawback for those who would like to trade with leverage.
Coinbase’s trading platform is a perfect choice for beginners who are only making their first steps into the crypto world. The San Francisco-based has also recently launched its new project Coinbase Pro rebranding their GDAX that was founded in 2015 for professional investors.
As for Kraken, it’s trading platform is not really suitable for inexperienced traders. It operates similarly to Forex exchange which many confusing for new users. However, is you are not afraid of sophisticated trading tools, all you have to do as a newbie is to create a new account, deposit a particular amount of money and place an order.
Undoubtedly, security is an issue of paramount importance for crypto traders who want to make sure that their assets won’t be compromised. There have been huge exchanges (for example MT.Gox) which couldn’t survive a major hacking attacks. In a major hacking attack. In 2018, all major exchanges make sure that they won’t suffer the same fate. Let’s find what exchange is the most secure.
Security was clearly one of Bitstamp weak points in the past. The exchange tarnished its reputation after an infamous hack that happened back in 2015. This major security breach resulted in more than 19,000 Bitcoins being stolen from the exchange. The company made a significant effort to repay the losses, but the damage had already been made. Right now, Bitstamp keeps as many as 98 percent of its funds in a cold storage and works hard in order to restore its strong reputation.
Kraken has a perfect reputation because of a high emphasis on security since the very inception of this exchange. In fact, Kraken’s founder and current CEO Jesse Powell was inspired to create this exchange after visiting MT.Gox’s office and seeing many security flaws which would inevitably lead to a tragic outcome. After the fall of the Japanese-based MT.Gox, Kraken experienced a sudden surge in subscriptions, since many investors started turning to this highly secure platform.
Coinbase also enjoys a high standing when it comes to security. The exchange is fully compatible with AML laws and other types of regulations. Moreover, Coinbase is expected to become the first to become the first exchange registered as a broker-dealer and regulated by the US SEC. Apart from offering the the the TFA and keeping more than 90 percent of all funds in a separate cold storage, Coinbase also covers its users’ hot wallets with by FDIC insurance which provides a maximum level of protection. Even if a hacking attack does happen, there will be an immediate refund. On top of that, you can also use Coinbase Vault for your storing needs.
The winner: Coinbase.
Bitstamp vs. Kraken vs. Coinbase: Payment methods
Bitstamp supports SEPA transfers, international transfers along with credit card payments (Visa or MasterCard). Wire transfers take up to two to five days, but they also have a significant advantage such as lower fees. In the US, however, only US residents from Puerto Rico are able to make a credit card deposit on Bitstamp.
Kraken, similarly to all fiat-to-crypto exchanges, accepts traditional currencies. However, the San Francisco-based exchange only allows its users to deposit money via wire transfers which is not quite convenient for those who would like to use instantaneous methods of payment like PayPal or any credit card service.
Coinbase has a significant advantage over Kraken here because it allows its user to deposit money both via wire transfers and credit/debit cards. On top of that, you can also send money to your Coinbase wallet with the help of PayPal. Such a variety of payment methods stems from the fact that Coinbase tightly cooperates with major US banks and adheres to all regulatory norms.
The winner: Coinbase
Bitstamp vs. Kraken vs. Coinbase: Fees
Take a look at the following table in order to find out what exchange has the most reasonable deposit fees . Let’s compare Bitstamp fees. Let’s compare Bitstamp fees Coinbase fees vs Kraken.
As you can see, the amount of fee greatly depends on the payment method of your choice. A SEPA transfer would obviously be the best solution for European residents, regardless of the exchange.
The bottom line
When it's all said and done, it becomes clear that Kraken takes the cake as the best exchange among these three. Kraken offers a high level of security, a large number of currencies, has relatively low fees and is available everywhere around the globe. Go to Bitstamp vs Coinbase Reddit page in order to find out which of the two frontrunners is better.
What makes VeChain a good investment– VeChain prediction 2018/20/25
Although Bitcoin seems to rule the market completely and undividedly, there are many decent altcoins popping up on the horizon. One of them is VeChain. Surprisingly, the platform behind it has existed over 10 years, and now VeChain creators are ready to join the competition for the top of crypto market. What makes this cryptocurrency so special, and should you invest in it? Our guidelines and VeChain price prediction will help you to make an informed decision.
What is VeChain?
Recently renamed, Singapore-based VeChain Thor project is a Blockchain platform that’s designed for business applications dedicated to the storage, transportation, inventory quandaries, and tracking. It relies on Ethereum to implement smart contracts.
One of the basic technologies underlying VeChain is PoA (proof of authority) that allows successfully combining some advantages of centralization with technological advanced. This platform eliminates some problematic issues connected with government regulations because it’s based on the identity of the validator, not consensus. It’s authorized nodes that are responsible for transaction validation.
VeChain’s technological superiority ensures a high speed and frequency of transactions, as well as simplicity of operations. Like Ethereum, it supports decentralized Apps and can help to streamline business activities across a broad spectrum of sectors, being combined with IoT. VeChain has already established a partnership with some authoritative companies.
Although this platform is called ‘Ethereum for business, ’ there are many considerable differences between both:
There are 867,162,634 VET in circulation
There are 100,800,359.50 ETH in circulation
The application is limited by the sphere of tracking and a few other business operations. VeChain relies on the RFID tags to work.
Sphere of application isn’t limited. Ethereum is a flexible solution but required a lot of extra coding to be adjusted to a project.
Now when the stage is set, let’s get down to VeChain coin price prediction.
VeChain Thor Prediction in 2017: Were the expectations justified?
Unlike other altcoins, the cryptocurrency experienced a sudden growth even before the November-December 2017 VeChain coin prediction started realizing. At the end of Summer 2017, VEN coin rose and reached the price of $2.31. Suddenly, it got back to $0.25, and some investors lost faith in the currency. However, despite the fact price prediction for VeChain didn’t exceed $5, it soared in December, and in the middle of January 2018, got to its maximum of $8.02.
VeChain price prediction 2018
If the crypto community witnesses another wave of coin popularity, VeChain can be traded for about $19.6 by the end of this year. Therefore, you can make a good return on your investments. However, this can be called a too optimistic VeChain 2018 price prediction– other sources provide different numbers.
According to technical analysis that’s based on historical price trends and currency performance, VeChain can reach $12 in one year (WalletInvestor’s prognosis). Another website, tradingbeasts.com, predicts VeChain to reach $8-11.8 in December 2018. Both forecasts are quite positive.
What do experts say? Roger Ver, one of the biggest Bitcoin millionaires, says that VeChain has a lot of potentials since it allows for solving real problems, and can be applied in a wide range of industries. Therefore, your investments can pay off pretty quickly.
VeChain price prediction 2020
Forecasts for a longer term also seem to be pretty great. Thus, according to tradingbeasts.com, VeChain may be in the range of $21.02- $30.92 in 2020. Website cryptoground.com predicts VeChain will be around $5.5. in 2020, which doesn’t seem to be much.
There’s one aspect that makes authoritative investors believe in VeChain potential. This platform is versatile– it may be used for tracking literally any item. Therefore, It may attract a lot of attention from corporate investors.
Long-term VeChain coin prediction
If we look even further, VeChain appears to be a very promising investment. According to smartereum.com, the price of currency can get as high as $75. Walletinvestor.com’s forecast is only $41.457 in 5 years time. However, it means that your investments will be compensated by over 1,000 percent, which is great!
Other sources give different information:
When it comes to VeChain prediction on Reddit, users cannot say exact numbers, but share a mutual opinion that this currency has enough potential to outperform its rivals and be widely implemented in various projects. Thanks to supporting from the famous partners like BMW, it can become enormously popular.
Before making any decisions and believing VeChain crypto price prediction, keep in mind that this cryptocurrency hasn’t been properly researched yet. Here are some pro tips:
opt for short-term investments better
make diversified investments
or wait a bit to see the performance and overall authority of VeChain platform.
Hello to all my readers. This is Andrew Strogoff again and we are going to take off with our cryptocurrency analysis. Unfortunately, we still have to wait for the targets to be reached. I established them on Friday, but Ethereum, Ripple, EOS and NEM still avoid to meet them.
However, Bitcoin seems to take force. This let me say reserve cryptocurrency goes higher and higher establishing new heights. I think the main reason is the runaway of investors from altcoins into Bitcoin.
As for the news, there are a couple of events I would like to share with you. The first one is the ban of mining that is going to be launched in Xinjiang Uyghur autonomous Chinese province on September. China is known for its banning of crypto-related activities. However, the government states that the Blockchain technology is promising.
The US Chamber of Commerce recommends the SEC to hold ICO’s by the throat meaning some more serious measures are required to regulate this industry.
Bitcoin (BTC/USD) the lonely hero in this cryptocurrency industry, price analysis, July 24
Bitcoin is the only currency pair that develops its uptrend from the top 20 currently. I think that this is due to the runaway from the altcoins as there is a huge money inflow into BTC/USD. I think that the currency pair is likely to develop its uptrend in the nearest future and may take the altcoins aboard.
My targets were reached again, but I think that BTC/USD aims for higher targets currently. The currency pair has tested the resistance area at $7,734 and went higher. It aims at the next resistance area at $7,949, where my green rocket is.
Why do I think Bitcoin looks promising currently? The first reason is that BTC/USD is the lonely gainer. The currency pair benefits from altcoins deeper corrections as investors are running away from other cryptos. Moreover, there are no reasons for the market to fall.
Ethereum (ETH/USD) still needs some more fuel to fly, price analysis, July 24
The currency pair developed its deeper than expected correction on Monday frustrating my expectations. I saw ETH/USD rising after testing the support area at $453.24. However, ETH price went upwards and retreated from the resistance area at $473.39
What are my next thoughts on the currency pair? I think Ethereum is going to resume its uptrend in the nearest future. This kind of range fluctuations between the two levels in coming to the end already. I also think that ETH/USD is likely to reach the next resistance area at $500.36 in the next couple of days.
What do I see currently on the four-hour chart? There is a kind of bullish hammer candlestick pattern, which I suppose is a signal indicating the price may grow in the nearest future. However, the price resides slightly below $453.24 level and needs to go above before developing upside progress.
Ripple (XRP/USD) has a deeper than expected correction, price analysis, July 24
Ripple goes in the opposite side from my targets but I still believe XRP/USD is going to reverse in the nearest future to reach the goals I have set on Friday. The currency pair develops a deeper than expected correction, but I think it is near its end.
As far as you can see, the currency pair is close to its local lows meaning we can see a reverse soon. I am far from thinking that the crypto market is going to develop downtrend as there are no reasons for it. New Chinese bans have almost no impact on price as market participants have an immunity to it already.
As for targets, I still think that the currency pair is going to reach $0.5088 in the nearest future. However, this task is a bit hard currently as Ripple needs to break through several resistance areas, which are on the way to my target.
EOS (EOS/USD) has longer correction, price analysis, July 24
EOS flats between the two levels but I personally think that the currency pair is likely to resume its growth in the nearest future. EOS/USD has almost reached the support at $7.65 on Tuesday. The correction still develops but it is going to end on Tuesday, I think.
My EOS targets are the same as I see the currency pair to go upwards and to reach the resistance area at $9.56 in the nearest future. However, the currency pair will have to break through several resistance areas before my aim will be touched.
Proof of Stake is an alternative to mining that’s been getting a lot of attention and could be much more energy efficient.
Proof of Stake (POS) is a consensus mechanism that requires proof of ownership of the network’s coins before a person can add blocks to the Blockchain. Proof of Stake networks probabilistically select a user to “validate” or “forge” the next block, adding it to the Blockchain. Users can only be selected to add to the Blockchain if their coins are “staked” using the network’s wallet. Users are incentivized to stake their coins by being rewarded with new tokens each time they successfully forge a block.
Proof of Stake comes in a number of different forms, but generally speaking, the more coins a person owns, the more likely they are to be chosen to add to the Blockchain. This promotes some network centralization. However, Proof of Work suffers from the same deficiency, since miners with more mining computers and thus more hash power are able to subject the network to centralization risk as well.
Proof of Stake suffers from a key weakness, called the “nothing at stake” problem. If the network is attacked by a bad actor, the economically rational thing to do is for each forger to forge on both the legitimate and the illegitimate Blockchain. This enables them to hedge their bets, by ensuring they are rewarded for their work no matter who “wins.” Proof of Work isn’t subject to this problem, since it’s only possible to mine on one Blockchain at a time. Since Proof of Stake doesn’t require the expenditure of resources (like electricity), there is no cost to forging on multiple versions of the network’s Blockchain.
Ethereum is currently trying to solve the “nothing at stake” problem with a system called Casper. In this Proof of Stake implementation, validators “stake” their coins, but if the network determines they are acting maliciously (trying to mine on the legitimate Blockchain and an attacker’s Blockchain, for instance), they will suffer a penalty. Some of the coins they put up as stake are taken from them by the network. One weakness of this system is that validators who go offline, even accidentally, are punished.
You have probably heard from mainstream media that cryptocurrency is “unregulated” or “largely unregulated.” It’s usually implied that the lack of these regulations is a bad thing. In fact, the most determined Bitcoin skeptics often resort to scare tactics, saying that Bitcoin’s unregulated nature makes it perfect for financing terrorism and laundering money.
However, cryptocurrencies (and the companies that deal with them) are most definitely regulated in most jurisdictions, at least to some extent. What the media should be telling you is that cryptocurrency is only lightly or partially regulated and that the regulations which exist are patchwork in nature.
The regulation that most financial pundits and government authorities are calling for already exists, to some extent. Many exchanges, particularly those based in the US, require customers to submit personal information to prove their identity. Anti-money laundering (AML) and know-your-customer (KYC) laws require exchanges to collect this information; it’s a form of regulation. Other forms of regulation include cryptocurrency exchanges, in the US, being required to register with the Financial Crimes Enforcement Network (FinCEN) as money transmitters.
Some regulations are missing, however. In denying the Bitcoin ETF proposed by the Winklevoss twins, the Securities and Exchange Commission (SEC) cited a lack of regulated cryptocurrency exchanges as part of the reason for their denial. The SEC watches over the major stock exchanges and the CFTC supervises commodities exchanges, both ensuring that the rules are followed. Things like insider trading, front running, spoofing, wash trading and other forms of market manipulation are forbidden on regulated stock and commodity exchanges. However, crypto exchanges currently lack this level of oversight, potentially making them the playground of market manipulators.
Good or bad?
Many in the crypto community are philosophically opposed to regulation of any kind. Bitcoin was conceived as a decentralized, peer-to-peer currency that the government had no control over. Indeed, it still is that. But governments do have power over their own fiat currencies; nobody in the world can stop you from using Bitcoin. However, authorities can make you follow certain rules in order to trade crypto for fiat, or fiat for crypto.
On the other hand, there are those who think regulation can be a good thing if done correctly. Many fear knee-jerk reactions by regulators who demand the impossible. However, smart regulation could actually make banks and other companies more willing to work with cryptocurrency and crypto-based companies.
Clearer rules and regulations could also make it much easier to operate a business in the crypto field, such as an exchange. At present, each US state has its own regulations (and interpretations) that crypto businesses and users are subjected to. One single set of federal regulations would make it a lot easier for businesses to operate since they would no longer have to worry about complying with 50 different rulebooks in 50 different states.
Gemini just announced the creation of a self-regulatory organization (SRO), which will create and enforce its own set of rules. If done properly, and if well-enforced, this form of self-regulation might convince regulators to step back and let the industry make its own rules. No regulator really wants to sit down and write out thousands of pages of rules- not if they can get the industry to do it themselves. Members of the cryptocurrency SRO would know their businesses far better than the government, and would likely write smarter regulations.
It remains to see what happens with this SRO, but the chairman of the Commodities Futures Trading Commission, a key regulator of cryptocurrencies, has praised the effort.