Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Monday, 20 May 17:09 (GMT -05:00)



Foreign exchange market

Bitcoin: Long-Term Prospects


Market participants, including traders, investors and regulators, have been watching cryptocurrencies getting more and more popular over the last few years. Some experts say that central banks will start regulating digital currencies at some point in the near future.

 

 

 

 
According to the analysts working for Pro Finance Service, Bitcoin has already gone up in value by 740% over the past 12 months and by a stunning 1600% over the past 24 months. History shows that sooner or later the governments gain control over everything that the private sector comes up with. Most likely, this is something that the global market of digital currencies will have to face further down the road.
 
While some experts call Bitcoin and other cryptocurrencies a big market bubble, others call them one of the greatest innovations of modern times, with really considerable investment potential. Chances are, people will get used to the technology and let it inside many economic sectors and fields of their lives. However, in this case, Bitcoin may lose most of its value.
 
NordFX experts report that Bitcoin set another all-time high at $6200 the other day. And even though it’s currently trading well below this area, the market bias still seems to be bullish. Anyways, 1BTC is currently 3 times as expensive as an ounce of gold! Many experts believe that Bitcoin is yet to set new price highs in the coming years.
 

RNOKqZW.jpg

Governments Will Determine the Future of Cryptocurrencies

While market participants don’t know how to treat Bitcoin and other cryptocurrencies and are trying to get used to them, the fate of cryptocurrencies is being decided by governments behind the closed doors. They are also trying to figure out the best way to approach digital currencies. Apparently, this is something new to both central banks and politicians. Since the scale of the cryptocurrency market and the pace at which it has been growing so far is really impressive, they have to come up with a well-though-out approach to the market.
 
Chances are, no government is going to put up with anonymous payment systems that make tax evasion and illegal transactions a piece of cake. In theory, central banks may join the club and start their own cryptocurrencies to make rival to conventional ones like Bitcoin. That’s one of the key reasons why this is definitely going to impact the entire financial world in the future, whether Bitcoin’s peers succeed or fail.
 
However, it will be rather difficult to question the leadership of Bitcoin, the world’s first and biggest cryptocurrency to date. At the same time, the legal side of the matter, as well as the way international governments treat digital currencies, is still ambiguous. For example, China has banned Bitcoin exchanges to prevent Chinese from evading taxes and withdrawing their capital abroad through Bitcoin and other digital currencies.  On the contrary, Japan has legalized Bitcoin. Most probably, Japan is trying to become a fin-tech center.
 
As for the USA, the U.S. government is said to be trying to follow in Japan’s footsteps when it comes to regulating the sector, but the chances of Washington making the same decision are still rather low. Still, Bitcoin doesn’t have to win each and every battle to win the entire war. The very fact that the world’s third biggest economy (Japan) has approved Bitcoin is a major victory itself.
 
By the way, the Silicon Valley is rumored to be investing heavily in cryptocurrencies and related technologies. Experts say, it’s all about cyber security. The technologies the digital currencies are based on can really take cyber security to the next level, they say.
 
At the same time, more and more developers want to oust the U.S. Dollar from the position of the world’s most significant reserve currency and replace it with cryptocurrencies.
 
On the other hand, there is no reason to expect Bitcoin to replace conventional payment means emitted by central banks. From the standpoint of governments, a limited amount of anonymous transactions may seem acceptable. However, legalizing a big-scale system of anonymous payments is a completely different story.
 

 

 

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Forex and Cryptocurrency Forecast by NordFX. May 20-24, 2019

Roman Boutko, an analyst for NordFX, has come up with another consensus forecast for the forex and cryptocurrency markets for the forthcoming trading week starting on May 20, 2019.


Publication date: 20 May 03:50 AM

U.S. Sanction Trap For Russian Rouble

It's not a secret that the amount of sanctions against Russia has been growing over the last few years. At the same time, experts are losing faith in the stability of the Russian Rouble. Washington is discussing more and more variants to impose even more sanctions on Russia to undermine its economy and national currency.

Publication date: 18 May 03:25 PM

Facebook articles contest from FortFS

FortFS offers you to show off your writing skills and compete with other traders for a prize fund of 1000 USD, which will be distributed among the authors of the most interesting articles about our company!

Publication date: 18 May 12:24 AM

BTC Market Will Set New Highs In 2020

Tom Lee, Chief Analyst for Fundstrat Global Advisors, has recently shared his optimistic view on the future of Bitcoin (BTC). In early May, he said that the BTC exchange rate is undervalued and, given some fundamental factors, it should be somewhere around 14K dollars per coin. At this point, he thinks that the current all-time highs may well be renewed this year. This means BTC prices above $20K per coin and market cap well over 830 billion dollars within the next 20 months.

 

Publication date: 15 May 10:05 AM

U.S. Unemployment Rate Drops To Nearly 50-Year Low

The U.S. Department of Labor has released another unemployment reports. For the first time in over 49 years, the unemployment rate dropped all the way down to 3,9%. For the most part, this has to do with a considerable decline in the economically active population.

Publication date: 13 May 11:22 AM

Six main components of Alpha Bonus from FortFS

From 06 of May till 07 of June 2019 become the owner of a unique artifact called Alpha Bonus and subdue the financial element!


Publication date: 13 May 01:40 AM

Bitcoin Reaches 5-Month High

The cryptocurrency has been maintaining a stable bullish trend. over the last few days, the market cap has exceeded 185 billion dollars. According to CoinMarketCap, the market cap used to be 179 billion dollars on Tuesday. Over the last few days, the cost of all the cryptocurrencies circulating in the global market has grow considerably. 

 
Publication date: 27 April 10:24 AM

ETH's At Local Highs: What's In For Ethereum And ICO?

Ethereum is back in the game! It's currently trading around 5-month lows. Still, the market seems to be showing some confidence that the coin has already overcome its existential crisis and managed to recover from crisis that started after the ICO bubble burst in 2018. Will ETH and ICO revive?

Publication date: 17 April 10:42 AM

NordFX Shares Another Forex and Cryptocurrency Forecast for Mid-April 2019

The balance of powers in the international currency market (also known as forex) influences many contemporary tendencies in the entire world. At the same time, traders and investors rely on accurate forex forecasts to earn money. That is why we keep on publishing those weekly consensus forecasts, courtesy of NordFX.
Publication date: 15 April 10:54 AM

Weekly Forex and Crypto Prediction by NordFX. Mid-April 2019

Any exchange rate between any two currencies is the result of multiple factors affecting the currency pair at any given moment. At the same time, those exchange rates themselves are actually capable of affecting other processes important to specific countries and even the entire world.

Publication date: 09 April 11:01 AM