As of July 26, 2018, bitcoin is trading at about $8,200 and blockchain venture capitalist Spencer Bogart believes there are many catalysts which could send bitcoin prices even higher, or bring them down rapidly.
Bitcoin is coming back in style. After a difficult period for this cryptocurrency, it seems the times are finally changing.
However, the price of about $8,200 on the morning of July 26, 2018, still isn’t even close to the glorious times of December 2017, when bitcoin traded at $19,783.21.
Spencer Bogart, a partner at Blockchain Capital, a venture capital company which invests in blockchain related companies, stated:
“Any number of catalysts could send bitcoin exploding higher. (…) Bitcoin is kind of a tinderbox right now, waiting for reasons to go higher.”
According to Bogart, such catalysts include global trade tensions, the possibility of creation of a bitcoin ETF, and rising currency rates. Let’s not forget the fact MasterCard has recently announced a new patent allowing bitcoin transactions on credit cards.
Spencer Bogart (Source: Moon Catcher Meme)
Bitcoin is truly having a fun week. On Monday, July 23, 2018, it reached a two-month high of $7,820, only to hit staggering $8,200 just three days later.
These results present a great comeback, considering in late June 2018 bitcoin traded as low as $5,900.
As they are slowly creeping into every pore of today’s society, bitcoin and other virtual currencies are gaining the attention of the world financial leaders.
Over the weekend of July 21-22, 2018, the finance ministers of G20 met in Buenos Aires, Argentina, where they discussed cryptocurrency, among other things.
They concluded cryptocurrencies are not a threat to the global financial stability risk, although there is a need to keep an eye on them.
Their primary concern is money laundering violations, for which they blame the cryptocurrencies.
In a report from July 21, 2018, the G20 countries express the position that the blockchain technology and use cases like cryptocurrencies might do great things for the world economy, but there are some security concerns.
The report stated:
“Technological innovations, including those underlying crypto-assets, can deliver significant benefits to the financial system and the broader economy. Crypto-assets do, however, raise issues with respect to consumer and investor protection, market integrity, tax evasion, money laundering and terrorist financing.”
In March, this group said it wants to solve the problem of harmonization of international regulations on cryptocurrency to a certain degree. They echoed this attitude at their July meeting.
On Sunday, July 22, 2018, the group asked the Financial Action Task Force (FATF), an international organization for combating money laundering and terrorist financing, to explain in detail by October 2018 how its standards apply to cryptocurrencies.
Referring to FATF’s research, G20 found 17 percent of designated non-financial businesses and professions (DNFBPs) in G20 jurisdictions had no anti-money laundering measures, nor did they have any mechanisms against the financing of terrorism.
DNFBPs often include auditors, lawyers, real estate agents, trust, casinos, dealers in precious metals and stones, although the precise list depends on the country.
The G20 finance ministers stated:
“Virtual currencies and crypto-assets facilitate easy online access and global reach which make them attractive to move and store funds for money laundering and terrorist financing.”
There you have it. Although there is still some skepticism surrounding crypto assets, the world is nevertheless getting used to the fact that they’re here to stay and the leaders will need to adapt to this fact by adopting favorable laws organizing this field.