Stack Funds – Negative Rates May Trigger Bitcoin Rally

Stack Funds – Negative Rates May Trigger Bitcoin Rally
May 19, 2020

 

The cryptocurrency market remains range bound with slight bullish bias. Bitcoin (BTC), which touched a high of $9,919.60 yesterday, has lost 1.3% in the past 24 hours to trade at $9,618.13. Ether (ETH) has gained 1.6% to trade at $211.90. Ripple’s native currency XRP has gained 0.5% to trade at $0.2033. Other major altcoins which have gained in the past 24 hours include Tezos (XTZ-2.71, 3.0%), ChainLink (LINK-$3.84, 1.0%), IOTA (IOTA-$0.2017, 0.3%), EOS (EOS-$2.64, 0.4%), Tron (TRX-$0.0152, 0.7%), Binance Coin (BNB-$16.55, 0.3%), Huobi (HT-$4.11, -0.2%), Litecoin (LTC-$44.80, 1.8%), Cardano (ADA-$0.0529, 1.5%), Monero (XMR-$66.24, 1.0%), OKB (OKB-$5.18, -2.2%), Stellar (XLM-$0.0693, 0.1%) and Bitcoin Cash (BCH-$245.64, 1.2%). Altcoins which have lost ground in the past 24 hours include and LEO (LEO-$1.08, -0.1%), Ethereum Classic (ETC-$6.65, -1.3%), Cosmos (ATOM, $2.57, -0.1%) and Dash (DASH-$75.49, -0.9%).

 

Government level initiatives

Italy putting an end to phony “Made in Italy” products

The Italian government wants to put an end to the sale of counterfeit “Made in Italy” products across the globe. To achieve the objective, the government has set aside €15 million (~$16.20 million) for the development of blockchain-powered tools.

A recent survey report by dGen indicates that counterfeit products have resulted in a loss of €12.40 (~$13.40 billion) in 2016 to Italian artisans, making it harder for them to survive. Both the fashion industry and artisan association in Italy use the “Made in Italy” label. Commercially, if it had been registered as a brand, it would have been the third most valuable across the globe, next only to Coca Cola and Visa.

The duplicate goods pave the way for stealing of intellectual property, while blemishing the standing of the label, artisans and brands.  It also results in the loss of billions of dollars for the industry.

The amount set aside by the Italian government will be used to back the adoption of digital technologies and also fund a joint venture between IBM Italy and the artisan fraternity.

 

Private sector initiatives

Visa submits patent application for the development of a digital currency

Visa has submitted an application to the US Patent and Trademark Office for the development of digital currency powered by blockchain technology. Specifically, Visa International Service Association in San Franciso and inventors Alexander Pierre and Simon Hurry have requested a patent for a virtual currency powered by blockchain and administered by a centralized system.

The patent application indicates that the digital currency can be hosted on the Ethereum blockchain. The system makes use of two records, with the first one being “the digital currency for an amount associated with the denomination has been created for a public key associated with a digital wallet.” The second record cites the “removal of the physical currency from circulation in a fiat currency system.”

The application also refers to a centralized system to manage the stablecoin’s value.

The patent document states: “Every time a dollar worth of digital fiat currency is generated, the central entity ensures that a corresponding physical dollar bill is removed from circulation, in order to regulate the value of the digital fiat currency.”

 

SK Telecom and Samsung collaborate to launch first 5G phone with ID verification system

South Korea’s mobile carrier SK Telecom and Samsung have joined together to roll out the world’s first 5G smartphone facilitating blockchain-powered identity verification system. The phone, named “Galaxy A Quantum” includes a chipset, developed in collaboration with Samsung Electronics, for random number generation. The mobile phones are offered at a starting price of 649,000 Korean won (~$527).

The blockchain-powered system handles payments made through SK Pay for goods or services at retail locations. Additionally, blockchain technology prevents the illegal use or theft of data stored on the smartphone. The phone also offers features such as SK Pay biometric protection, a mobile blockchain validation facility.

SK Telecom has announced that the presale of the phone will begin on May 15tg  with the official launch date being May 22nd.

 

Miscellaneous

Negative global interest rates an open door for a Bitcoin price rally

Negative interest rates prevailing in several parts of the world offer a distinct opportunity for Bitcoin (BTC) price rally, as per a survey document published by Stack Funds. The document claims that investors will look for alternatives to conventional assets in case interest rates become negative in the US. In such a scenario, Bitcoin may become the first choice for hedge funds. The term interest rate refers to the Federal Funds Rate, which is the overnight rate paid by financial institutions while borrowing funds.

The document also argues that negative interest rates signal a weak economy. It reads as follows: “Theoretically, a negative interest rate occurs when a central bank needs to boost a weakening economy. During large deflationary periods, people and businesses are keeping their cash instead of spending, and negative interest rates encourage this action as opposed to them keeping it in a bank.”

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.

Ian Maguire

Ian Maguire

Ian is our resident contributor to the latest going ons in the cryptomarket, keeping up to date with the latest icos and coins


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