Traditional Banking Presses down Blockchain Prospects

Cryptocurrencies stay on “hibernation mode”. Bitcoin shows practically no dynamics as most other main cryptocurrencies. However, behind the scenes, there are events occur that can determine the crypto assets future.
Alexander Kuptsikevich
IT hardware. Cryptocurrency business equipment.

The largest mining pools total hash rate (Antpool and BTC.com) fell from 42% to 29%. Bitmain closes offices, dismisses employees, and, after all, the company may face IPO application reject. The cost of bitcoin mining in many countries has a long time ago exceeded its current price. Some miners operate at a loss, some spend the past windfall, but this can’t last forever.

The volume of transactions in the BTC network is indeed growing, however, as long as they are associated with the return of popularity in Darknet, this will hardly be a convincing argument for bankers and regulators to give the green light to this technology. At the moment, cryptocurrencies in general, and Bitcoin in particular, have become a kind of salvation for the countries like Venezuela. Its citizens bought almost 2,000 BTC last week, that is around $6.8 million in the current prices. It should be noted that currently with $10 in this country you can buy 1,000 liters of gasoline.

Ripple’s intentions to introduce its products into the traditional banking sector are already facing serious hurdles. Bank officials do not understand why blockchain is better than existing technologies. The Paris Fintech Forum participants came to the conclusion that the crypto-fever was really over, all the participants realized that the new tendency was down to earth due to technical and regulatory restrictions.

Moreover, SWIFT quickly realized the emergence of competition. Their new protocol already allows tracking the money transfer and shortening the delivery time to several hours. Yes, this is not a few seconds or minutes, as when sending to the blockchain, however, given the absence of the need to use a volatile cryptocurrency in the transaction, full compliance with the rules of regulators and closest ties with the largest banks around the world, Ripple prospects are shaken against this background.

As for the regulators, they are clearly not in a hurry. So, the SEC has just now begun to look for a company that would conduct for them the analysis of the main cryptocurrencies’ transactions. Most likely, this slowness is connected with the fact that regulators want to see where the “crypto” is moving in general and is there any point in spending large resources on it.

This article was written by FxPro

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US