Bitcoin spending coming from personal wallet will be considered illegal if Digital Assets-Existing Law gets filed in the U.S.
While Bitcoin and other cryptocurrencies are still making its wave in the global financial markets, many lawmakers and investors are still skeptical and non-enthusiastic about digital currency.
Jerome H. Powell, Federal Reserve testified in the filing of the Digital Assets-Existing Law that Bitcoin brings grave perils to investors. New York Professor, Nouriel Roubini also agreed with Powell and reiterated that Bitcoin is nothing but a Ponzi scheme.
The Digital Assets-Existing Law is a property act categorizing digital assets as a property within the existing Uniform Commercial Code. By which, authorizing security interests and establishing banks involvement and regulation to provide custodial services, and giving jurisdiction to Wyoming, among others.
According to Caitlin Long, a Wall-Street Veteran and Blockchain forum chair thinks alongside with other critics that bill passing is obviously anti-Bitcoin and anti-innovation. If the said law passes and regulated, spending Bitcoin coming from personal wallets will be considered illegal.
The bill is still under negotiation. More insights from lawmakers, investors, and Bitcoin enthusiast are expected to be given as the subject progresses.
Bank of International Settlements or BIS trolls Bitcoin
The Bank of International Settlements (BIS) serves as the central bank of all the central banks has showcased its position about Bitcoin.
Bitcoin, a digital currency that aims to replace other currencies in the world has a hard time to get an excellent impression from BIS. If the digital currency aspires to continue and develop its current stand in the global market, approval of BIS is needed.
While this is still far from happening, BIS has stated that Bitcoin is counterfeiting because of its ‘double-spending’ scheme. Also, the transaction market of the said currency cannot produce suitable ‘mining’ level of income. It is because users freeride on certain fees in other blockchain transactions.
BIS is not sure of how blockchain performs its liquidity. Thus, its lack of institutionalization could also be a challenge.
What BIS requires for Bitcoin and for cryptocurrency for that matter, is to have a centralized solution to ensure everyone’s benefit and protection.
Price of gold possibly giving clues about BTC next move in the digital financial market
On November 13, 2018, gold placed a solid bid of $1,196, and its price increased to $1,300 by January 4 of this year. The jump of the price is probably because of the weakening sell-off of the U.S. dollar.
Most currencies and digital currency like Bitcoin (BTC) are down in the last two months of the previous year. It is speculated that the Federal Reserves (Fed) could put a halt on interest hikes by this new year.
Bitcoin, on the other hand, did not duly joined the benefit of such market movements. In fact, it revitalized a resounding move of less than $6,000 by November 14, 2018 – a day gold has also found patrons buying off $1,200 per ounce.
This price movement in the market can indicate that the two assets correlate. For investors, it is purposely stating that the element has a possibility of indicating the change that Bitcoin will have next. In fact, a 90-day correlation of -0.593 between the assets is made to validate its direct relationship. A statistical ration of -1 of 1 can specify that the gold and Bitcoin can be linked.
Currently, Bitcoin is trading slightly above $3,500 for 13 consecutive days. It could still be identified as weak compared to its market drive in the past.
Enthusiasts and investors see that Bitcoin could regain its market standing soon.