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Most bullish bitcoin news of 2019: Fidelity to launch Bitcoin Custody Service.

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Most bullish bitcoin news in 2019 is the news of the launch of bitcoin custody service by Fidelity in March 2019. Here is a brief about it.

Crypto space has visited various things in the last few months. The crisis in 2018, the entry of institutional money into this space, Bitcoin Lightning Network, Bakkt etc were some of the news that shaken this industry. While some investors take back their investment from the crypto space, new firms entered. Some of them are largely opposed whereas there are some of them are completely bullish in the field.

If we talk about the most bullish bitcoin news in 2019, one news that comes first in our mind is the news of the launch of bitcoin custody service by Fidelity in March 2019. In this article, we will firstly brief about this news and then we will argue how this news is the most bullish news of 2019.

 

What the Fidelity news is all about?

Fidelity, also known as Fidelity Investments Incorporation is a Boston based multinational financial service organization. In October 2018, Fidelity announced that it would be launching several crypto products. Further, it was added that these products will be only for large investors such that of Hedge Funds. This news was normal but after some days some bullish addition to this news came into focus.

It was revealed that the first product that will be launched in March 2019 would be a bitcoin storage product. According to the news, the firm is aiming to launch its Bitcoin custody service in March 2019. This product as per the firm is a move to reduce the fear of cryptocurrencies among large investors. Further, it was revealed that the next product after this launch will be ethereum custody service.

According to the officials, the firm was aiming to serve some selected clients only at the initial phase. This information was completely like the catalyst in this space.

 

How the news is the most bullish bitcoin news of 2019?

First of all, let us have a deep understanding of the news. As per Fidelity, the product to be launched in 2019 will dedicate to bitcoin custody service.

Custody service if we understand in normal finance, is a common practice which involves third party services which hold securities to minimize the risk of being stolen or lost. It is widely used in stocks as well as bond markets. However, some govt. doesn’t support this service as a possible security breach.

Now, Fidelity aims to implement the same into the cryptocurrency industry. It wants to use its name and faith of people of its core performance. However, it seems completely feasible. There was a need of such service in this sector. Without any doubt, the idea is appreciable as thousand of theft news of cryptocurrencies are seen and it is aiming to handle and reduce such kind of risks from crypto space.

 

1. First of all, we need to understand the need for such service in the crypto market. The transactions are not physical here. Also, the currencies have completely different properties here. They are digital, not cash or normal currency. These things make it almost feasible to recover if someone steals the vulnerable value of your cryptocurrencies. Thus, the market was in need to have a faithful service provider in this concern for a long time.

 

2. Two of the ever faced challenges to the crypto space are scalability and security. These two factors are dependent on each other. If we increase the scalability, there are changes in the decrease in security. Similarly, if we try to increase the in-built security in this network, the scalability goes down. So, the perfect solution was to have a third party who can manage this security. Thus it will serve as a solution for both, directly for security as well as indirectly for scalability.

 

3. After the crisis of last year, crypto space needed some excellent features and support to it to regain its desired position. While the introduction of Bakkt, the launching of Lightening Network etc ignited the market, this feature is surely going to help cryptocurrencies rising their values. Security and no fear of being stolen the cryptocurrencies will attract more and more investors thus eventually leading to a fruitful step for cryptocurrencies and their future in the market in this year

 

4. Apart from that, we all know that cryptocurrencies are undergoing a transition to a different consensus algorithm. They are moving from proof-of-work (POW) to proof-of-stake (POS). These make the stake more vulnerable. If someone steals your coins, you will lose all your coin as well as position in the crypto space in this consensus algorithm (POW). This certainly makes the essential need of such service in the space to secure the stake in this market.

 

We discussed how the news of the launch of bitcoin custody service by Fidelity in March 2019 is complete bullish. The crypto space was in search for some trusted and big organization who can provide security in this market and then come to Fidelity. This service completely seems feasible with the current scenario and market conditions in the crypto space.

#Bitcoin

Donald Trump policies push Mexico to Bitcoin

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Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse.

Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse that remittance payments of Mexican migrants in the United States of America will potentially be the target of new restrictions essentially ending the possibility of Mexican migrant workers to be able to cheaply send money back home to their families.

 

Mexico adopting Bitcoin:

Mexico has been experiencing a massive increase in the number of transactions on localbitcoins. Mexican migrant workers are believed to be exploited by the remittance companies which are charging around 10% fees. What is essentially being discussed here by the Trump Whitehouse is a new tax on these migrant workers. The number that they are currently floating around is a 3% tax on the remittances going from the USA to Mexico. This may not seem super crazy but considering the $33.4 billion which were sent to Mexico in 2018 alone, that extra 3% could mean $1 billion more per year for the United States government.

 

98% of the transactions that were sent during the last year, were sent via electronic means which means that there is actually a very strong remittance route that is ready for mass disruption going from the United States to Mexico and Bitcoin could be the perfect answer. However, the average size of a remittance payment from the United States to Mexico is $322 last year and the problem is that if the fees rise again exponentially on bitcoin, then bitcoin might not be the ideal cryptocurrency for these kinds of smaller remittance payments. Maybe we are going to see some other cryptocurrency being adopted in that situation. But regardless of which cryptocurrency is used, we can see that there is a clear need for disruption as government policies again seeks to impede or overly exploit the free float of money.

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Bitcoin Crashes Downwards: Is BTC Going to Fall Back to $4000?

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Bitcoin fell down to test the $5000 support level. If the current support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels.

Bitcoin fell down to test the $5000 support level which is the most crucial level for BTC currently. The downward correction started after bitcoin tested the $5500 resistance level yesterday at around 18:00 UTC.

 

The resistance around $5500 proved very strong and pushed the price downwards sharply. The sharp declining pattern attracted a lot of sellers which even pushed the price below $5200 support level and BTC tested the $5000 support reaching up to $5018.

BTCUSD Price Chart- Coinbase

BTCUSD Price Chart- Coinbase

Bitcoin is currently trading around $5070 (at the time of publication) showcasing a bearish pattern.

 

Bitcoin Price Drop:

The sudden price drop has led to people speculating that BTC might soon crash back to the $4000 range. Earlier, analysts were also predicting the sudden rise of bitcoin to be a conspiracy. Also, Bloomberg had also called the sudden rise a Blip. If BTC had successfully crossed over the $5500 range, the next major resistance was around $5800, however, BTC fell sharply losing more than $400 in value over the last 24 hours.

 

The bearish move does not clearly indicate a crash towards $4500 and $4000 range, however, if the current major support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels. With the price of bitcoin falling, other major altcoins are also in the red zone today with Ethereum falling more than 8% in the last 24 hours, XRP falling more than 6% and Litecoin falling around 12% in the last 24 hours.

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China to completely ban crypto mining: Bitcoin about to Crash Hard?

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As reported by Bloomberg, China is moving towards putting a complete ban on mining bitcoin and other crypto as it causes serious wasatage of resources.

As reported by Bloomberg, China is moving towards putting a complete ban on mining cryptocurrencies such as bitcoin. In accordance to a document posted by the National Department and Reform Commission of China, the mining of cryptocurrencies should be completely banned as it causes serious wasatage of resources.

 

China is known to be the largest hub of cryptocurrency mining with huge mining rigs been set up in the country. Earlier, China has also banned small investors to invest in security token offerings or STOs and only large investors with more than $1 million funds are allowed to invest in such projects. Now, the country is planning to take strict action against cryptocurrency miners in the country.

 

Cryptocurrency miners were earlier attracted to China due to their cheap electricity rates and subsidies in the country, however, due to the strict actions being taken by the government with the guidelines of the NDRC which has disincentivized cryptocurrency mining, a lot of miners have shut down their operations or moved to other nations.

 

Largest Mining Pools in China:

China has been a hub for some of the largest cryptocurrency mining polls. Even though the mining pools have been shifting to other countries, there has been some effect of the ban on the market for bitcoin and other cryptocurrencies as the mining is a major part of the overall working of cryptocurrencies.

 

How do you think the complete ban on cryptocurrency mining in China will effect the bitcoin price? Tell us in the comments section below.

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