Remember when Bitcoin was considered a joke, when many predicted its death?
Something worthless, they said. Now SEC Chairman Jay Clayton claims that Bitcoin is not a security, it’s „a payment mechanism and a store of value.
Bitcoin tried the $18,000, but was rejected. Is a bubble forming?
Bitcoin Achievements
Bitcoin has had a long history, many have criticized it from the beginning and others have managed to recognize its potential. However, without a doubt, this year the behavior of the leading crypto has opened the eyes of many investors.
Bitcoin is now considered an attractive asset to shelter against inflation, even more so than gold itself. Therefore, it could be said that 2020 has been the result of years of crypto community struggle.
All the confidence investors have placed in Bitcoin has brought it to where it is today.
Today Jay Clayton, president of the SEC, during an interview with CNBC assured that Bitcoin is not a security. According to Clayton, Bitcoin is „more like a payment mechanism and a deposit of value.
„We determined that bitcoin was not a security, it was much more a payment mechanism and stored value,“ says SEC Chairman Jay Clayton on #btc. „Our current payment mechanisms-have inefficiencies those inefficiencies are the things that are driving the rise of bitcoin.“ pic.twitter.com/3r1mxzfgpi
– Squawk Box (@SquawkCNBC) November 19, 2020
Clayton also explained that „the inefficiency of our current payment mechanisms“ prompted the adoption of Bitcoin. I don’t completely agree. The truth is that, from my perspective, inefficient economic policies have driven Bitcoin.
However, there is another detail that Clayton comments. According to the SEC Chairman, as leading crypto becomes more popular, we could see tighter regulations.
„I think we’ll see this mature and I think we’ll see more regulation in the payment space,“ Clayton said. Basically with this Clayton made it clear that the SEC does not have the responsibility to regulate Bitcoin as a payment mechanism, the government does.
Would regulation be bad news for Bitcoin? Not necessarily. If the crypto regulations are appropriate, we might even see a boost.
Where will the price of Bitcoin go? Check out the recent predictions about its price
Crypto factors that drive Bitcoin
Related to the previous news, where Clayton attributes the growth of Bitcoin to the inefficiency of the payment mechanisms, comes Sam Trabucco, a trader from Alameda Research, and offers us four general factors that are driving up the price of Bitcoin.
Yesterday Trabucco posted an extensive Twitter thread where he highlighted four key factors that are driving the leading crypto: The accumulation of whales, increased adoption, institutional purchases and the influence of other markets.
Vitalik Buterin: „The advantages of ETH 2.0 will arrive sooner than expected“
The crypto advantages of ETH 2.0 will arrive sooner than expected
As we reported in CryptoTrend, in an Ask me anything session, Vitalik Buterin indicated that the crypto community could see the advantages of ETH 2.0 sooner than expected.
The interesting thing is that the Ask me anything session was organized by the Ethereum Foundation. Was it an attempt to draw attention to the crypto upgrade?
Blow for Bitcoin: OKEx suspends withdrawals, but funds were in and out
OKEx will finally allow Bitcoin cryptographic removals
The OKEx crypto exchange announced that it will renew crypto withdrawals starting November 27, after suspending them on October 16.
It is worth remembering that last month the police took Xu Mingxing, the founder of crypto, as a cooperation with the investigation. Since then, the crypto exchange has paused the retreats and provided much conversation in the community.
CME’s open interest rate for future Bitcoin reaches a new record
In a few lines…
Changpeng Zhao, CEO of Binance, said today that selling Bitcoin holdings now could be a big mistake. This as some investors have decided to take their profits.
The Bitcoin crypto-futures market reached a six-month high yesterday of more than $50 billion in volume.
According to Reuters, the three largest banks in Japan will collaborate on an experiment with the digital yen.