CNBC Trader claims that the lightning network is the reason behind the latest surge in the Bitcoin price. Following the coming altcoin news, he is not the only one who thinks so.
During his weekly blockchain coverage, the CNBC trader hosted a series of cryptoanalysts and enthusiasts to analyze the reason behind the sudden price surge. Bob Iaccino is the chief market strategist at the Path Trading Partners. He joined the discussion yesterday and explained his opinion on why the price of the largest cryptocurrency doubled so far.
CNBC reporter Seema Mody explained that ‘’two large crypto trading desks’’ told her that all of the traders who purchased bitcoin in 2016 and sold in 2018 have returned to the crypto market in 2019 and are ready to invest. She also asked Bob Iaccino for an opinion and he stated:
“Well it’s entirely possible. I don’t have any more direct insight, me being more of a futures and equities guy, as to who’s actually doing the buying. I do believe I know part of the reason why, and that has to do with the inception and application of software called the Lightning Network.”
The Lightning Network as previously explained in our latest cryptocurrency news is a second-layer scaling technology that crypto developers strongly believe will allow Bitcoin first and later other cryptocurrencies, to scale better and improve their on-chain capabilities. By moving the transactions off the chain, the LN allows the users to transact anonymously, instantly and with low cost.
Iaccino continued to explain that the lightning network will actually make the smaller transactions to conduct much easier for those who hold Bitcoin:
“Where you look at Visa, who can transact 65,000 transactions per second, bitcoin’s [prior level] was about seven, and now with the implementation of the Lightning Network you can actually get these smaller transactions off the blockchain network, making adoptability of bitcoin as a currency a lot easier.”
While we are waiting for the Lightning Network to progress, the mechanism is far from ready for mainstream adoption. There is also little evidence that benefits this technology and there is also no evidence that claims the LN has anything to do directly with the price surge.
New Crash Of $35 Billion Makes BTC Revisit Four Figures
“And there’s the dump right before the daily close. Typical price action for $BTC near important levels is a pump or dump right before or after the daily/weekly close. This certainly sets up the daily and weekly to close bearish. And will likely focus on shorting any rally,” he said in a tweet.The weekly candle closed heavy and ignited the new crash further. As BTC tested the 50 day moving average which is currently serving as a level of support, all signals are indicating a continuation of this correction. So, Bitcoin visiting the $8,000 region is definitely a possibility - but Rager added that even like this, four figure BTC is a gift.
“Said it once and will say it again, 4 digit Bitcoin is a gift, whether it hits $9ks or even $8ks," he concluded.In the coming altcoin news, we can see that the new crash and Bitcoin retreat has hurt the altcoins even more, with some of them losing as much as 20% of their value.
Trump Banning Bitcoin Could Happen But It Is Unlikely: Economist
“Trump could also go after fiat onramps, by simply forbidding banks to service crypto exchanges, or by requiring banks to not service exchanges unless conditions XYZ are fulfilled (and make that practically impossible).”In reality, however, Trump would need to convince the Congress of the need to ban Bitcoin and lawmakers could overturn his demands - even if they occurred via an executive order or similar emergency measures. So, Trump banning Bitcoin is feasible at this point - but the probability of it becoming law is extremely low, Krueger concluded. https://twitter.com/krugermacro/status/1150638173837516800 Krueger's comments went viral on many best cryptocurrency news sites several days after the mainstream media suggested that Trump had inadvertently made Bitcoin a campaign issue for the upcoming 2020 presidential elections. https://twitter.com/krugermacro/status/1150638180800090112 As Forbes also noted, some of the competing hopefuls (among which Andrew Yang) have long held an opposing view which shows that Bitcoin is in fact something to embraced at national policy levels. Krueger's comments on Trump banning Bitcoin showed thaT US regulators could arguably determine that crypto assets are too volatile to be sold to retail (non-accredited) investors. In the last tweet, Krueger noted that Trump could issue an executive order banning US people from dealing in Bitcoin - and that he has already done so with the Petro cryptocurrency.
Wells Fargo Claims It Won’t Allow Customers To Purchase Bitcoin
“Customers can be better served when they have a relationship with a trusted provider that knows them well, provides reliable guidance, and can serve their full range of financial needs.”As noted in the best cryptocurrency news sites, Wells Fargo banned the purchase of Bitcoin and other crypto assets by using the bank’s credit cards. The company’s spokesperson stated:
“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency […] We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.”When Wells Fargo claimed that Bitcoin is risky and volatile, they didn’t look back to the 2008 financial crisis when all of the markets collapsed. As a result, millions lost their homes and jobs and an economic disaster started around the world. The bank was the contributor to one of the world’s largest financial crises but it did receive about 25 billion USD of Emergency Economic Stabilization Act funds and as CBS put it:
“Wells Fargo hit the jackpot. It was one of the first banks to get bailout funds – the biggest amount awarded in a single shot: $25 billion tax dollars.”
Did Donald Trump Make Bitcoin A 2020 Election Issue?
"Possibly the largest bull signal for [bitcoin] ever," said Jeremy Allaireo Twitter, the head of the Bitcoin/crypto exchange and payments group, Jeremy Allaire. "Crypto now a presidential/global policy issue. People everywhere will embrace a mix of sovereign and non-sovereign digital currency."The Bitcoin and cryptocurrency community is also asking themselves “did Trump increase the hope in Bitcoin” as they are ready to embrace a new bull run by the most dominant cryptocurrency. Many people took Trump’s tweets as an endorsement of Bitcoin and the underlying blockchain technology.
"Achievement unlocked! I dreamt about a sitting U.S. president needing to respond to growing cryptocurrency usage years ago," Coinbase chief executive Brian Armstrong tweeted in the latest altcoin news. "'First they ignore you, then they laugh at you, then they fight you, then you win.' We just made it to step three y'all."Again, did Donald Trump push the BTC price higher? The market is not sure about that - but there are many market watchers who think that there will be a positive boost from Trump giving Bitcoin and crypto airtime.
"Even though Donald says he's not a fan of bitcoin, the fact that he's mentioning it at all is hugely bullish for the entire crypto market," wrote Mati Greenspan, senior market analyst at eToro.Now that Trump has made Bitcoin a valid issue, there is nothing stopping the major cryptocurrency from pushing forward and becoming a bigger part of many campaigns
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