Good morning, and welcome to our rolling coverage of all things cryptocurrency, including price, regulation, innovation and financial crime. Bitcoin enjoyed a mini price spike late last night after New York’s Department of Financial Services granted a virtual currency licence to Square, developers of the popular ‘Cash’ app. Cash has 7 million monthly active users, and New York residents are now able to trade bitcoin on the app.
Phillip Nunn, CEO of The Blackmore Group, a bespoke investment house, told Express.co.uk that New York-based Cash App adopting bitcoin comes as a surprise after Plattsburgh, New York, became the first city in the US to ban cryptocurrency mining, in March. He said: “This is a great sign for the industry, as a BitLicense has previously only been awarded to the big industry platers – Circle, Coinbase, Gemini Trust and Bitfinex. By allowing app users to enter the market they’ve created a gateway for new cryptocurrency adopters to thrive.”
Jordan Hiscott, Chief Trader at ayondo markets told Express.co.uk that despite the headlines and the volatility, “each week we move a step closer to crypto becoming more mainstream.” He said: “A malaise seems to have struck all cryptocurrencies recently. The extreme price gains from last year, certainly from a speculator perspective, have long since disappeared and in the very short term, we’re seeing a trend of downward moving prices. “Generally, this comes at an important time for cryptocurrencies. Each week we move a step closer to the asset class becoming more mainstream, certainly in the financial world, as more officially regulated exchanges start trying to adopt either just pricing, or actual trading for cryptocurrencies.”
If you’d bought a coffee with your Bitcoin wallet five years ago, it’s likely that coffee could have bought you a car, a very nice car even, at today’s prices. Jordan Hiscott, Chief Trader at ayondo markets. Mr Hiscott cites last week’s positive news on Ether futures contracts as an example.
However he does warn that there remain a number of issues surrounding bitcoin. Most notably the price volatility.He said: “For a genuine monetary tool, like fiat currency, you shouldn’t have 5 percent or 10 percent movements.”Ideally it would be stable and consistent. But also for the use as a monetary tool, the asset needs to decide if it’s a genuine form of exchange or a turbo-charged speculation tool. It can’t be both and the latter leads to issues with what I call opportunity cost.”If you’d bought a coffee with your bitcoin wallet five years ago, it’s likely that coffee could have bought you a car, a very nice car even, at today’s prices.”