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Russian Government Buying Bitcoin? Largest Bitcoin Price Catalyst.

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According to Vladislav Ginko, the new rounds of US sanctions will indeed push Russia to invest in Bitcoin and it is indeed inevitable.

According to Vladislav Ginko, a lecturer at Mosco’s Russian Presidential Academy of National Economy and Public Administration, the new rounds of US sanctions will indeed push Russia to invest in Bitcoin. He said that he is appearing recently on Russian state TV and radio providing economic commentary and saying that much of his recent work has been in persuading Russian officials that bitcoin is the best way to mitigate the impact of new sanctions on Russia. If this is the case, it could be huge.

The idea of a state level actor getting into cryptocurrencies in indeed inevitable and when it does happen, it is going to push the bull market to new extremes.

 

Russia adopting bitcoin:

If a country is going to start adopting bitcoin as a percentage of their strategic foreign reserves then Russia may just be a prime candidate for that to happen. Recently Russia has been drastically increasing the number of gold reserves. Now gold currently at around $41.2 million a ton, in the last months of 2018 Russia bought around 92 tons or $3.8 billion worth of gold bringing the total gold stockpile in Russia to 2066 tons or approximately $85 billion worth of gold.

Russia has been progressively moving away from the dollar and the dollar is moving away from Russia as well. The United States has been very antagonistic towards Russia so it’s no surprise that they wouldn’t want to be using the currency of a country which is continually hostile towards them. Russia’s US treasury holdings have dropped from $96.1 billion back in March 2018 to $14.4 billion in September 2018. We don’t have a current number on that but it is continuing to fall until they completely relieve themselves of US foreign currency holdings. The Kremlin, of course, fears that US sanctions may end up freezing a significant portion of country’s international reserves and that would be a terrible situation for Russia and as we see sanctions continued to be pulled against Russia they have rightly paranoid and its probably not a bad idea to be exploring alternative options.

 

How would it affect the bitcoin markets:

Currently, the Russian Central Bank has around $460 billion worth of gold and foreign currency assets. So to see them diversifying into bitcoin could be very interesting. Although if it does happen, Russia is going to buy that on the OTC market if we imagine that Russia is going to take just 1% of the assets which would be $4.6 billion invested in bitcoin, that’s a massive amount of money.

So the OTC statement actually kind of ignores the reality of the markets because that $4.6 billion would equal more than 1.2 million bitcoins at the current price. Nevertheless, the OTC markets would have a tough time filling those orders in a quick fashion. So the OTC desks are going to have to go to regular exchanges and buy more bitcoin and that would surely have an effect on the market. Let’s just assume that if Russia is able to fulfill all of its orders via some magical OTC desks which have enough bitcoin to meet that demand, that’s probably going to be most of the available OTC bitcoin on the markets. So then the OTC desks are again going to have to go to regular exchanges and buy more bitcoin to put their stockpiles together.

 

The Sad Truth of the Current State of World Affairs:

The sad truth is that the system that the financial system which has been primarily US-led has been used as a financial weapon against other countries. Finance and money have been weaponized and that’s exactly what’s happening. Predatory loans against poor countries, for example, sanction regimes etc. It’s all one-sided and its all hypocritical but bitcoin doesn’t care.

Currently we see a situation where the United States is forcing Europe to do things that Europe doesn’t necessarily want to be doing and so in response to France, Germany, and others not wanting to always have to be the dog following America’s lead, they are proposing some of their own solutions to free themselves from a one country dominated financial system. So France and Germany have announced that they are looking at a new international trading system beyond US control. Germany would likely include Russia in this because they are such major partners that haven’t been officially the part of the announcement and just speculation.

French finance minister Bruno Le Maire or Mr. Bitcoin as they call him in France has agreed to the overall idea with Germany. He said that we are determined to work on an independent European or Franco-German finance tool which would allow us to avoid being the collateral victims of US extraterritorial sanctions. These countries which are the closest allies of the US are looking for alternatives.

It’s interesting that they don’t need a new SWIFT network, they could just use bitcoin. That would be totally next level if some of the world’s biggest economies all started using bitcoin to interact with one another in terms of international transactions. Now the reality of Russia investing or not investing in bitcoin, we can definitely see the use case.

If you want to talk about fear of missing out, just wait for Russia to announce that it’s going to buy 1.2 million bitcoin. You think Japan is going to sit back watch Russia gobble up all the bitcoin, You think China will sit back? This kind of country-level FOMO could be unimaginable big when it comes down to it. We could see countries literally adding hundreds and thousands of bitcoin to their strategic reserves and for these countries, it’s not a huge amount of money.

 

What do you fell about the same? Tell us in the comments section below.

#Bitcoin

Cryptocurrency Price Analysis: Great Week for the top 10

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The current week has proved to be quite amazing for the cryptocurrency market as all major coins are holding green. The total cryptocurrency market rose by around $1.5 billion yesterday night with the price of bitcoin reaching $4100.

 

Bitcoin:

BTCUSD Price Chart

BTC/USD Weekly Price Chart

Bitcoin broke the $4000 resistance level on 17th March and has been over this range since then. Bitcoin has turned the previous resistance into strong support now and has moved upwards slowly currently trading around $4120 (according to Bitfinex chart) with around 1% increase in the last 24 hours. If bitcoin is able to maintain its position above $4100 range for long, it might soon move ahead towards the major long term resistances such as $4500 and $4600.

 

Altcoins:

ETHUSD Weekly Chart

ETH/USD Weekly Chart

Ethereum also saw a nice bullish momentum this week after reaching the highest point of $143. Currently, Ethereum is trading nicely around $140 and is experiencing a few dips while trying to move upwards.

Unlike other top 10 coins, Ripple market is experiencing volatility from the last week but the momentum is still quite bullish.

LTCUSD Weekly Chart

LTCUSD Weekly Chart

Litecoin has been following trends and is steadily trading around $60 from the start of the week. Litecoin has increased more than 1.67% in the last 24 hours which makes it the best performing crypto of the day (in comparison with the top 10 cryptos according to market capitalization). LTC is currently trading around $61 (according to Bitfinex chart).

 

The overall cryptocurrency market is in a bullish momentum with sings of further gains. After a long bearish trend, cryptocurrency analysts are now believing that the bull market might be coming soon.

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Tom Lee: Bitcoin Bull Market Coming Soon

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Tom Lee, the co-founder of Fundstrat Global has predicted that the price of bitcoin will likely experience a bullish run in the next 5 to 6 months.

Tom Lee, the co-founder of Fundstrat Global also known as the bitcoin bull has predicted that the price of bitcoin will likely experience a bullish run in the next 5 to 6 months. Lee predicted this during an interview with the CNBC. According to Lee, the 200 daily moving average is the number to keep in mind. If bitcoin is able to stay above $4000 till August this year, it will cross the 200 daily moving average and thus technically the overall chart would start to look bullish.

During the interview, he also mentioned that the future of bitcoin and other cryptocurrencies lies on the fact of whether it becomes an asset class and bitcoin is still in the early days of becoming one. Although Tom Lee has been quite bullish about the price of bitcoin, Fundstrat had recently posted a warning that the cryptocurrency market might crash to a new bottom before actually starting a bull run.

 

Tom Lee on JP Morgan Coin:

In the interview, Lee also expressed his concerns regarding the recently launched JP Morgan Coin which is a stablecoin launched by the banking giant JP Morgan Chase. He said that things such as the JP Morgan Coin and Facebook Coin create use cases for cryptocurrencies and according to him, the JPM Coin is surely not a competitor to bitcoin as it is a stablecoin in nature.

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Alert: Bitcoin Breaks Record, Highest Hash Rate Since November 2018.

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The hash rate of bitcoin which is the power that secures the bitcoin network has recorded the highest level yesterday (19th March) since last year November.  The Bitcoin hash rate passed over fifty-two quintillion hash per second in accordance with the data feed on Blockchain.com.

 

Bitcoin Hash Rate:

Bitcoin hash rate is the computation of the performance of bitcoin miners. In simpler terms, as the hash rate goes higher, the bitcoin network becomes more secure. It becomes more difficult to attack the bitcoin network as an attacker would need increased resources in order to attack the network. The increasing hash rate also depicts the increase in the number of bitcoin miners. As the BTC mining difficulty level is quite stable now, more and more miners are joining the bitcoin network. Although, the increasing hash rate would eventually result in an increase in the overall difficulty level.

bitcoin hash rate 19th march

Bitcoin hash rate 19th March 2019

 

The bitcoin network security is at its peak since November last year. The highest hash rate ever recorded has been around 62 quintillion hash per second in August last year. Looking at the current chart, it depicts that the hash rate might even cross this level in the coming time.

 

The increased hash rate also builds up confidence in the minds of the miners as it shows the overall security of the bitcoin network and thus predicting a secure future of the investment of the miners. Thus, overall, more and more miners are now joining the bitcoin mining network after a subsequent decrease last year which led to a lot of miners moving out of the mining business. Bitcoin price analysts believe that the hash rate of the network follows the price of bitcoin as it helps them in speculating the future price of BTC.

 

During last year’s bear market, the hash rate also fell drastically which led to a lot of miners shutting down and the mining equipment were being sold at waste prices. Now as the hash rate is rising, miners are again turning on their mining rigs and moving back to business. It is also worth examining that the current hash rate of the network is even more than the recorded hash rate in December 2017 when the price of BTC went up to $20,000.

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