Banking giant JPMorgan Chase in our crypto news today for making a bold prediction that there’s a 60 percent chance for the next recession to hit the USA by 2020 and crypto is seen as the best alternative as a store of value.
“The probability of a U.S. recession within one year is almost 28 percent, and rises to more than 60 percent over the next two years, researchers wrote in a note this week. Over the next three years, the odds are higher than 80 percent, according to the note,” according to JPMorgan Chase.
According to other analysts, there is even a bigger chance that the recession could occur by the end of 2019. Some of the indicators that show this could be the case include consumer sentiment, labor participation, and compensation growth.
The bigger part of the economist in the US believe this to be the case and according to a research director of the Federal Reserve Bank of Atlanta, predicted that almost two-thirds of the business economists expect that the market will crash due to trade issues.
Because many forecast a market crash in the next three years, the demand for crypto is increasing rapidly every day. Financial institutions such as Goldman Sachs have already established relationships with institutional investors so they can invest in the digital currency market. Banks, on the other hand, avoid doing business with cryptocurrencies because of lack of regulatory certainty.
Investors are likely to invest in cryptocurrencies in the following years because of the already experienced exponential growth. We can see rapid growth in e-commerce that allows users to buy anything with cryptocurrency and also cross-border transactions are growing which leads to a globalized marketplace that helps this trend to only go upwards.
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“Ultimately behind the scenes, they [crypto companies] are going to have to use a bank to move funds. There’s more partnership instead of competition in that space… When it comes to margins and capabilities, payments is never something that grows in margin, nobody wants to pay for a payment…so you need highly efficient and large players.”Karpovich also responded to a question regarding how far the eCommerce industry is from using crypto to facilitating payments. He explained that blockchain - the underlying technology of cryptocurrencies - will be used to facilitate payments behind the scenes. However, he also added that according to him, blockchain won't have a huge impact on consumers.
“I think ultimately you’ll find that the technology behind the scenes will be blockchain, I don’t know that you’ll notice anything as a consumer in that space. I think that you’ll still continue to use the payment type that you prefer, be that a wallet, a card, or a bank account,” he noted.When asked about his anti-crypto sentiment - which is somehow shared in the JPMorgan circles - Karpovich said that there is a difference between adopting blockchain and speculating on cryptocurrencies.
“There’s a difference between trading a cryptocurrency that’s in the market that’s ubiquitous, versus using the technology to enhance your payment infrastructure,” he concluded.
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‘’Binance Lite is a simple site for users to easily buy bitcoin with cash at physical store fronts. This model makes it really easy to bring new users into crypto, starting with Australia, where the government has taken proactive steps to support the blockchain industry. Users won’t have to open complicated online accounts to start using the service.’’The crypto market in Australia was a little behind than other markets in the world such as South Korea or Singapore because the banks didn’t support the crypto businesses in Australia. Back in 2017, during the strongest crypto rally, reports show that the larger Australian banks closed the accounts on multiple crypto investors. However, starting last year, the government of Australia began its proactive approach in regulating the crypto space and the blockchain industry so the investors are now hopeful that they could improve the market in the long run. Zhou also said that more than $5 billion in crypto was traded in crypto in 2018 in Australia and that since then the government is funding blockchain startups and companies by issuing bonds on the blockchain. The government has also started to accept crypto on airports such as the airport in Brisbane and even held a voting trial on the blockchain. He finished his interview by saying:
“Binance Lite also completes a comprehensive value chain for the Binance ecosystem in Australia. For example, users can show their friends how to buy bitcoin from Binance Lite stores, immediately load it up onto Trust Wallet on their phones, and go on to spend this bitcoin in shops accepting bitcoin payments through TravelbyBit, the payments startup Binance invested in last year.’’
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