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Cryptocurrency

Bureau De Change Operators Urges CBN to Discourage Cryptocurrencies as a Diaspora Remittance Channel

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Naira Dollar Exchange Rate - Investors King

The fast-growing acceptance of cryptocurrencies as a means of payments, money transfers and investment vehicles in Nigeria and other emerging economies has started having a direct impact on diaspora remittance, according to the Association of Bureaux De Change Operators of Nigeria (ABCON).

In its Quarterly Economic Review for the first quarter of 2020, ABCON urged the Central Bank of Nigeria to introduce measures that will counter the advantages of cryptocurrencies as a channel for diaspora remittances.

This, the association said “It is noteworthy that public acceptability for cryptocurrency exchanges are rising which could be quite accountable for the wide drop in diaspora inflows to Nigeria. Insecurity in the country is giving it greater prominence as investors and citizens are finding cryptocurrency a safe haven for their wealth in case of any eventuality.”

Bitcoin transfers surged in 2020, according to ABCON. The association attributed this to the COVID-19 pandemic that exposed cheaper and more efficient digital remittance services.

Migrants sending money across borders to their families prefer the minimal transaction costs of cryptocurrency exchanges against the exorbitant costs of traditional money transfer companies like Western Union.

“These exchanges override the political complications of official channels.The global reach of cryptocurrencies avoids the inflation risk inherent to official currencies, especially in politically unstable countries reliant on fickle foreign investors.

“Thus, while we commend the efforts of CBN in introducing the package of Five Naira for One Dollar transfer, it can be seen from the analysis above that the challenges exceed just non-payment of foreign currency by the International Money Transfer Operators (IMTOs) and the exchange rate.

“Strategies that satisfy the most sensitive of these advantages of cryptocurrency exchanges must be introduced to redirect flows to the official channel,” it said.

The Central Bank of Nigeria banned banks from facilitating cryptocurrency payments and exchanges in an attempt to discourage people from the largely unregulated fast growing crypto space.

A position the apex bank clarified a week later following the criticism that trailed the decision.

While the apex bank later said Nigerians can trade cryptocurrencies but banks can be tools for such unregulated industry, many Nigerians continue to dump their money on several unproven cryptocurrency projects.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Cryptocurrency

Cardano (ADA) Surges to New All-Time High of $2.37

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Cardano- Investorsking

Cardano (ADA) has continued its bullish momentum as the project saw a new all-time high reached on Saturday, touching $2.37 on Binance.

Following a tumultuous week of volatility in the market, ADA has seen a new all-time high reached over the weekend. Breaking past the $2 mark.

ADA had previously tested a new high one week ago. However, comments made by Tesla CEO Elon Musk regarding the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions” triggered a market sell-off. ADA slumped to a weekly low of $1.50 before continuing its rally towards another all-time high.

The cryptocurrency is currently hovering over $2. With an impressive 25 percent gain in the last week. ADA had previously hit a new high eight days ago. Before seeing three more days of new highs.

Crypto analyst Benjamin Cowen recently tweeted a poll asking “What crypto will be the third coin to make it to $200B market cap?” Surprisingly out of BNB, DOGE, and XRP, ADA was currently the favorite in ratings. With neatly 10,000 votes, ADA was leading the poll with 57 percent of the votes. With BNB coming in second with 24 percent.

Popular forex and crypto trader Peter Brandt had previously tweeted a price target for ADA. Brandt speculates that the price of ADA should hit $2.26 based on his “ballpark” target analysis.

Cardano recently announced it would be launching its Alonzo hard fork in May. The announcement will see the Goguen era of Cardano’s roadmap fulfilled.

The upgrade is set to implement secure smart contracts. The smart contract capabilities will be based on Plutus’s custom-build programming framework.

Furthermore, Input-Output, the parent company of Cardano, has recently partnered with World Mobile Group. The partnership is set to provide affordable network nodes through the Cardano blockchain infrastructure.

The African partnership will allow citizens to backup copies of important documents through the blockchain.

Ada currently has a market capitalization of $72 billion taking the fourth position on coinmarketcap.

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Ethereum

Experts Predict Ethereum Price to Hit $19,842 by 2025

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Thirty-five experts have come together to predict the price of ethereum, the second-largest cryptocurrency after bitcoin. On average, they expect the price of ether to hit $19,842 by 2025. The majority of panelists say now is the time to buy ethereum while 28 percent say to hodl.

The “Finder Cryptocurrency Predictions 2021” which was updated Monday predicts that the price of ether will be nearly $20K by 2025 according to 35 experts on Finder’s cryptocurrency panel. The report says: “By 2025, the panel expects Ethereum to hit $19,842 on average.”

The ethereum price, after beginning the year at under $1,000 per ether token, has smashed through $4,000—climbing alongside bitcoin and most other major cryptocurrencies.

Now, an expert panel has predicted ethereum is set to soar to almost $20,000 by 2025, an increase of 400 percent from its current price, with “major upgrades” to the ethereum network potentially pushing it higher.

The highest forecast came from Bitbull Capital COO Sarah Bergstrand who believes that the price of ether would be $100,000 by 2025. “We are likely to see major upgrades to the Ethereum network this year, and those can be expected to push the price higher,” she explained.

One of the most bearish forecasts came from UNSW associate professor Elvira Sojli who predicted that ETH will end 2025 at just $1,850.

The report continues: “The majority of panelists (59 percent) say now is the time to buy ethereum, while 28 percent say ‘hodl’ and 13 percent say it’s time to sell.”

As for the price prediction for the year 2021, the report notes that the “Panellists predict that the price of Ethereum will hit $4,512 on average by the end of the year. That’s a 234% increase from December’s end-of-year prediction of $1,351.”

One of the highest forecasts came from YAP Global founder and CEO Samantha Yap who noted that the price of ether would be $10,000 at the end of this year, emphasizing that “once BTC is mass adopted, ETH will be next on people’s list.”

Paul Ennis, a lecturer and assistant professor at the University College of Dublin, arrived at the same forecast of $10K for ETH this year, “arguing ethereum is highly undervalued and has far more uses than bitcoin.”

LMAX Group’s cryptocurrency strategist, Joel Kruger, gave a more moderate forecast of $2,000. He is also convinced of “ethereum’s potential, viewing the currency as the major hub of innovation on the blockchain.” He described that “As crypto adoption continues, most of that innovation will therefore be hosted on Ethereum, which we expect will translate into a much higher valuation.”

The panelists include Bitriver CEO Igor Runets; Thomson Reuter’s technologist Joseph Raczynski; Okcoin COO Jason Lau; Etoro analyst and senior account manager Simon Peters; Consensys head economist Lex Sokolin; Coinmama CEO Sagi Bakshi; Unocoin CEO Sathvik Vishwanath; and Origin Protocol co-founder Josh Fraser.

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Bitcoin

Tesla Suspension Won’t Derail Bitcoin, It’s Still a Buy- Says Bloomberg’s McGlone

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Bitcoin

Elon Musk’s concern that bitcoin might be bad for the environment isn’t enough to derail the cryptocurrency’s potential for further price gains, said Bloomberg Intelligence commodity strategist Mike McGlone.

McGlone in a new report on Thursday wrote “Elon Musk saying Tesla is suspending purchases using bitcoin doesn’t shake our thesis that the crypto is in early price discovery days on its way to becoming the global digital reserve asset in a world of accelerating digitalization and electrification.”

The report follows a 13 percent drop in the price of bitcoin, the most in a single day in almost four months. The drop was prompted by Musk, Tesla’s CEO, saying late Wednesday the electric-car company was ending its bitcoin-for-cars offer made earlier in the year. That Feb. 8 announcement drove up bitcoin’s price so dramatically – by 19 percent – that it was lionized by some fans of the cryptocurrency as “Elon’s candle,” in a reference to the resulting pattern on price charts.

Now, bitcoin analysts are scrambling to adjust their price forecasts and respond to concerns about bitcoin’s energy needs contribute to fossil-fuel burning, making it a climate threat at a time when environmental, social and governance concerns are becoming more important to institutional investors.

McGlone is considered a hot hand in cryptocurrency markets because he accurately forecasts bitcoin’s price rise to $50,000 last year, at a time when it was trading at just a fraction of that level.

What matters the most, according to McGlone, is the source of the Bitcoin network’s energy.

“The source of electricity is increasing from solar and wind, which are cost effective,” according to the report. “On a global scale, electricity is going renewable.”

Musk’s remarks about the crypto’s electricity consumption are “odd” coming from an automaker whose product is “fed solely by electricity,” the analyst wrote.

McGlone wrote that bitcoin “shows comfort at the whole-number level around $50,000, which was our initial call on a 2021 target resistance value.”

“The rule of money flowing to where it’s treated best looks like an enduring tailwind for bitcoin,” he wrote.

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