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Is Bitcoin Set to Have a 2017-style Mini Boom This Year?

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Bitcoin to Surge Like in 2017 this Year

Bitcoin’s price is set to “surge before the end of 2020” with investors keen not to “sleepwalk” through a 2017-style mini-boom, says the CEO of one of the world’s largest independent financial advisory and fintech organizations.

The prediction from Nigel Green, the deVere Group CEO and founder, which has $12bn under advisement, comes as Bitcoin – already one of the best-performing assets this year – appears to be on the brink of a bullish breakout.

In recent days, Square, which is owned by the billionaire founders of Twitter, has allocated 1% of its cash reserves to the cryptocurrency, whilst a former Goldman Sachs hedge fund chief says the price of Bitcoin will jump to $1m in five years.

Mr Green comments: “There’s been something of an avalanche of interest in Bitcoin in recent weeks from household-name investors.

“Investor activity is picking up considerably with various on-chain metrics and ongoing – and heightening – global political, economic and social turbulence suggesting that there will be a price surge before the end of the year.

“Like gold, Bitcoin can be expected to retain its value or even grow in value when other assets fall, therefore enabling investors to reduce their exposure to losses.

“Investors will increase exposure to decentralised, non-sovereign, secure digital currencies, such as Bitcoin, to help shield them from the potential issues in traditional markets”.

He continues: “There’s a growing sense that we’re set to experience a mini-boom similar to that at the end of 2017.

“Prices are yet to catch-up with investor interest – but this is only a matter of time as investors will not want to sleepwalk towards perhaps year-high prices in the run-up to the end of 2020.”

The late 2017 bull run saw the Bitcoin price reach its all-time high of $20,089.
The deVere CEO concludes: “There’s been a notable ramping-up of interest in Bitcoin amongst investors since the end of summer. Indeed, it has been the best performing week for one of the year’s best-performing assets since July.

“I can see no reason why this upward trajectory will not continue between now and the end of the year.”

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

Global Spending on Blockchain Up by 50%, US Leads with $1.6 Billion

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Blockchain Spending Rose by 50 Percent Globally

According to the research data analyzed and published by Stock Apps, global blockchain spending is set to hit $4.1 billion in 2020. From $2.7 billion in 2019, it is estimated to grow by nearly 50%. Over the five-year period between 2020 and 2024, it is expected to maintain a 46.4% CAGR.

The International Data Corporation (IDC) also states that the total spending on blockchain solutions will be nearly $18 billion by 2024.

Finance Sector Accounts for Nearly 30% of All Blockchain Spending

Another report from Markets and Markets indicates that the global blockchain market is estimated to be worth $3.0 billion in 2020. It is projected to grow at a 67.3% CAGR between 2020 and 2025, to reach a $39.7 billion valuation by the end of the period.

The total spending in the blockchain space amounted to $1.5 billion in 2018. At the time, the financial sector was most dominant, accounting for 60% of all spending. Though it still leads in 2020, its market share is now about half of that, at 29.7%.

Between 2020 and 2024, the IDC predicts that the blockchain industry will maintain a healthy pace of investment at 45.3% CAGR. Process and discrete manufacturing will together account for 22.3% of all blockchain spending in 2020. While process manufacturing will grow at a 50.3% CAGR, discrete manufacturing will grow at 46.5%.

With $1.6 billion, the US will top the list globally in terms of spending while Western Europe will be second with $1.0 billion. China will take the third spot with $457 million, but it will be the leading country in terms of growth, with a 51.7% CAGR.

China’s blockchain spending was $87 million in 2017. It could rise as high as $1.420 billion by 2022. Prior to the pandemic, it was growing at a 65.7% CAGR against APAC’s 50.3% and the global’s 60.2%.

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Elon Musk Installs Bitcoin ATM at Tesla in Nevada

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Bitcoin ATM Found in Elon Musk’s Tesla Gigafactory in Nevada

Will Reeves, the founder of Fold Inc, a company that builds payments stack for a new economy— one that puts privacy and bitcoin within the reach of every shopper, on Sunday said he saw a Bitcoin ATM at the Tesla Gigafactory in Nevada.

I “just passed by and saw @elonmusk has a bitcoin ATM at the Gigafactory,” Reeves said via his Twitter account.

Reeves accompanied the tweet with a Google maps image revealing the exact location of the ATM.

However, on Monday Elon Musk, Tesla founder and CEO, downplayed the whole bitcoin ATM, saying he did not believe the claim was accurate.

But a bitcoin ATM operator, LibertyX, in a direct message, confirmed that three bitcoin ATM machines were enabled in the factor to allow employees to access their funds and also transact bitcoin.

LibertyX said: “We have enabled 3 traditional ATMs inside so employees can use their debit cards and buy bitcoin.”

The company claimed it has installed over 5,000 crypto ATMs across the U.S. and has bitcoin buying service in 20,000 stores in the United States.

Why is this Important?

The news validates bitcoin’s growing acceptance by the mainstream and also attests to global firms like Tesla gradually considering it as a means of payment.

While bitcoin ATMs does not tell much about crypto adoption, the fact that the company claimed it has installed over 5,000 in the US alone and has bitcoin buying service in 20,000 stores in the world’s largest economy, showed bitcoin is gradually growing on people.

Also, the more people adopt the digital coin, the higher its value.

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Uk Regulator Decision to Ban Crypto Derivatives to Hurt Investors

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Uk’s Ban on Crypto Derivatives to Hurt Investors, Not Protect them

Following the decision of the U.K’s Financial Conduct Authority (FCA) to ban the sale of crypto derivatives and exchange-traded notes (ETNs) to retail investors, financial experts are saying the decision will hurt investors and not protect them.

In a statement issued about a week ago, the FCA had said it considers certain types of crypto assets to be ill-suited for retail consumers due to the fact that they cannot be reliably valued by retail consumers because of the following reasons:

  • Inherent nature of the underlying assets, which means they have no reliable basis for valuation
  • Prevalence of market abuse and financial crime in the secondary market (e.g., cyber theft)
    Extreme volatility in crypto asset price movements
  • Inadequate understanding of crypto assets by retail consumers
  • Lack of legitimate investment needs for retail consumers to invest in these products.

According to the UK regulator, the ban will affect “the sale, marketing and distribution” to retail investors of any derivatives contract or ETNs that linked to “unregulated transferable crypto assets” issued by entities in or outside the U.K.

The regulator further classifies unregulated transferable crypto-assets as “tokens that are not ‘specified investments’ or e-money, and can be traded.” The term incorporates major cryptocurrencies like bitcoin, ether and XRP.

The new ban will be effective from January 6, 2021, according to the statement.

However, experts are now saying the ban will not protect investors but hurt them as they will not be able to take advantage of market opportunities like their global peers.

Nigel Green, chief executive and founder of deVere Group, has this to say, “This move by the FCA underscores the regulator’s rather misguided approach to cryptocurrencies.

“Whilst the FCA is not stopping people buying Bitcoin or other cryptocurrencies directly, it is banning the sale of products based on their prices.

The regulator does express some valid concerns in its new rules, which we welcome and support.

“However, rather than banning, the FCA should be regulating the booming and unstoppable sector.

“This market, thanks to its exponential growth, needs a robust and enforceable regulatory framework. It needs scrutiny.”

The deVere boss added that “The staggering pace of the digitalisation of economies and every aspect of our lives highlights that there will be a growing demand for digital, global, borderless money.

“Already digital currency is almost universally regarded as the future of money – and we need a joined-up approach to tackling those who undermine it.

“In this regard, most major financial institutions globally already have or are preparing to establish crypto desks. It is why more and more retail and institutional investors are piling into the market. And it is why tech giants, like Facebook, amongst others are getting involved.

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