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Current State of The Crypto Market (May 26th, 2019)

Hackers:   HitBTC, a Hong Kong-based exchange has been the center of accusations among users on Reddit, Twitter, and other forums. HitBTC users started complaining about issues regarding withdrawal and extensive procedures after one particular user @ProofofReserach put out a thread alleging insolvency of HitBTC.  To put an end to all the accusations, HitBTC has broken its silence with a blog post explaining their side of the story. According to HitBTC, their systems performed well during the winter of 2017-18, however, HitBTC mentioned that due to overwhelming demand for the services, they experienced bottlenecks at an operational level.  At the moment there have been no recent hacks on HitBTC exchange, but traders should be careful and proceed with caution when leaving large amounts of currency on the exchange.

Bullish Key Players:   Bitcoin halving takes place every few years to prevent Bitcoin value from inflation, analysts and bulls point out that after each of those events Bitcoin price experienced a substantial rally.  Halving or ‘halvening’ happens every few years – as soon as new 210,000 blocks are mined. When it takes place, the rewards of miners are cut down in half.  A recent Twitter poll shows that among 2,500 voters, 61% expect BTC price to demonstrate a major rally. Since the award will be cut down by half, fewer Bitcoins will be released in circulation, which will make the coin scarcer than it is now, thus the price should go up.  Major Bitcoin bull, Anthony ‘Pomp’ from Morgan Creek Digital, have been drawing attention to the 2020 halvening, emphasizing its importance. Pompliano tweeted “Imagine if daily printing of US dollars was suddenly cut in half forever. Bankers would be FOMOing even through USD isn’t a scares asset.  Now imagine what they’re going to do when the daily bitcoin supply is cut in half for one of the scarcest assets in the world.”

Banks & Institutions:  Originally, Facebook Coin was simply going to be a currency that could be used to purchase goods and services through Facebook’s WhatsApp messenger system. In addition, the social media platform was building what was called the “Libra Network,” which would allow users to purchase items through or from other merchants that featured Facebook login options.  But if there’s one thing we can all say about Facebook, it’s that it’s ambitious. It’s not happy being a simple social media platform, and it’s consistently looking for ways to push the boundaries and potentially boost its presence throughout the tech space. That’s why the new Facebook Coin will be classified as a “global coin.” In other words, it can be used in multiple countries around the world without the risk of volatility, inflation or other problems.  Facebook is hoping to start testing the currency by the end of the year, with several countries using it by the time 2020 rolls along. At press time, very little is known about the specific properties of the coin other than the idea that it will be a stable currency. It will be tied to the U.S. dollar, so those who use it can expect to avoid the price swings one often experiences with mainstream cryptocurrencies such as bitcoin, Ethereum and bitcoin cash.

Adoption: According to a recent reports, Coinbase Commerce, the crypto startup’s application for merchants and online retailers, has recently surpassed $50 million in processed transactions. This facet of Coinbase has seen volume pick up through Q2 of this year, which coincidences with the bullish price action. Coinbase Commerce has already been integrated into online e-commerce giants like Shopify, WooCommerce, and others, which has helped to boost the adoption of the application.  While Coinbase Commerce has done well, BitPay has arguably done even better. The Coinbase competitor processed over $1 billion in transactions in fiscal 2018, as we reported previously. And it’s chief executive, Stephen Pair, wants this sum to grow to $10 billion and $100 billion in the years to come as a sign of the growing influence of cryptocurrencies on a global scale.

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