What's the difference?

What's the difference?

In the spotlight of this week: Brian Stutland compared BTC to VIX, China and South Korea call for lift on ICO ban and XRP rebranding.

Brian Stutland of Equity Armor Investments gave an interview to CNBC about the correlation between the world’s most prominent digital currency and the wider, non-crypto market

He compared Bitcoin to VIX, the Volatility Index on CBOE, and said that there's a correlation between them.

Of course, you can always find some similarities between two assets, especially when both are in treding down. What is the purpose of VIX? It acts as a fear gauge for the whole market. Its value represents the expected annualized change in the S&P 500 over the next 30 days, calculated with options-market data. As we see, it only reflects the current market sentiment. Last time it tripled in price in February, when the Dow plunged more than 1,000 points. Traders feared that the rising inflation might cause cheap money to be pulled out of the economy. Now it has returned to fairly comfortable levels, as everyone seems to calm down.

Bitcoin always acts on its own. It never reacts to any news related to real economies. Gold is usually considered a defensive asset. Sometimes, it rises when the geopolitical situation in the world becomes tense, and sometimes it doesn't. But the history of Bitcoin trading is too short to make such loud statements. Maybe it'll become a defensive asset when every trader gets the access to buying it on major non-crypto exchanges. Thus, comparing VIX and Bitcoin isn't correct.

Simultaneously with China, the National Assembly of South Korea has plans to lift the ban on ICOs it introduced in 2017

Also, the Korean committee asked the government to set up a special task force to put in order the crypto trading and increase its transparency.

As we see, being a closed country in an open world won't do you any good. Since imposing the ban, Korea is losing talented young people who are forced to move to a new country where they can continue to run their blockchain-related businesses. Many Korean blockchain startups have moved to Singapore, Switzerland, Thailand or Japan, where they are always welcomed. In the new environment, where people can migrate with ease and there are no limits to new technologies, there's no need for restrictions. Those countries, which adapt to ever-changing conditions, will lead the development. Technologies are the new resource of our century, and slowing down their development is like selling your oil fields to another country in 20th century. As technologically advanced as South Korea is, it's pretty natural for them to encourage the development, not to strangle it.

Ripple is making a re-brand for XRP

During the recent Consensus 2018, a new logo was presented. Also, it was announced that Ripple wants to detach its brand from a Coinbase, thus a re-brand serves this purpose.

Quite a smart move by Ripple. While they're having troubles with authorities and, particularly, with US Congress, they want to make it seem like they don't have anything in common with XRP. For those who haven’t been paying attention to this company's progress, it has managed to partner up with many banks, all of which use xVia, their older product for cross-border payments that doesn't require using XRP as an intermediary asset. To this day, there's still no any use for that coin. Despite this it has a very high market capitalization, being in the top 5. Now the rumours are that Ripple wants XRP to be listed on Coinbase, but it's impossible in current conditions, given that Coinbase can't list coins and tokens that are considered a security. A move such as a rebranding could help. At least it seems that Ripple thinks so. But it's hard to believe that they are separate entities, given that there is still a ton of XRP frozen in company accounts.


3,674 USD


0.3303 USD

Related news

What Death Spiral? Bitcoin’s Hashrate is Still Climbing

Following a period of sustained bearish sentiment in the Bitcoin mining market accompanied by three notable hashrate reductions in the final third of 2018, the flagship cryptocurrency’s network appears to be back on its way to optimum health. Bitcoin Reverses Hashrate Decline In December, CCN reported that the flagship Bitcoin blockchain’s hashrate dropped by 7 The post What Death Spiral? Bitcoin’s Hashrate is Still Climbing appeared first on CCN

Mercury FX Makes Its Largest Payment Via RippleNet, Illustrates How Ripple’s XRP Saves time and Money for Businesses

Mercury FX is trying to change the way people and businesses make international transactions. Their mission is to beat banks by providing customers with lower “exchange rates and lower transaction fees on all international transactions.” They aim to replace current systems with blockchain to improve and replace the way businesses interact with each other. “Whether it’s receiving or sending currency internationally, we will always provide a better service, with better exchange rates and at a lower cost than the banks,” Mercury FX claims. In a series of tweets, @mercury_fx_ltd shared how easily and efficiently one of their clients, Mustard Foods, was able to send funds internationally. “We’ve made our largest payments across RippleNet using #XRP – 86,633.00 pesos (£3,521.67) from the U.K. to Mexico in seconds. UK-based Mustard Foods saved £79.17 and 31 hours on the transaction. “As a food production company supplying 500+ restaurants in the UK & Europe, we pay suppliers around the world to get quality ingredients for our customers. Faster, cheaper payments allow us to fulfill orders quickly and grow our business.’ James Durrant, Commercial Director.” Endorsements from thriving businesses is pretty much the best way to spread the use of blockchain technology. It’s important for not just the people of the cryptocurrency space to see, but also the skeptics of the financial world to witness the capabilities of cryptocurrency. Transactions like the one made by the UK-based, international company Mustard Foods highlight the ability that blockchain and cryptocurrency have to change the way people do business. As previously stated by Mercury FX, the aim is not just to disrupt, but replace the old guard. And the strategic cooperation with Ripple could make it possible. “We believe that the more established blockchains will eventually replace the SWIFT network alongside other frankly clunky payments networks. Cryptos will be used as a conduit to replace fiat eventually.” When companies realize they could save money and simultaneously speed up their processes, it will be a no-brainer for them to integrate blockchain transactions into their businesses models. The post Mercury FX Makes Its Largest Payment Via RippleNet, Illustrates How Ripple’s XRP Saves time and Money for Businesses appeared first on ZyCrypto.

Coinstar Kiosks Across the United States Will Now Sell Bitcoin, at a Hefty Fee

The same bulk coin-counting machines that turn spare change into bills at the grocery store can now turn bills into bitcoin. Coinme, a Seattle-based Bitcoin ATM company, has partnered with Coinstar to enable Bitcoin purchases at grocery stores in California, Texas, and Washington. Example of a kiosk. Image courtesy of Coinstar Coinstar machines are large coin-cashing kiosks located at grocery stores, drug stores, and other retail locations in the UK, US, Canada, and Ireland. Shoppers frequently use the machines to convert loose change into bills or gift cards. Today, Coinstar operates over 20,000 of these machines across the world. On Jan. 17th, Coinme, the first state-licensed Bitcoin ATM company in the U.S., announced a partnership with Coinstar to offer bitcoin on the coin-counting kiosks. Users are now able to purchase up to $2,500 worth of bitcoin at these machines at select Safeway and Albertson stores in California, Texas, and Washington. Those who purchase bitcoin at one of these kiosks would receive a voucher that is redeemable for bitcoin on the Coinme website. The company advertises the plan as the “easiest and most convenient way to buy cryptocurrency with cash,” but opinions may differ. Steeps Fees and Glaring Exceptions Unfortunately, these Bitcoin ATMs are notorious for their high fees. Each Coinme transaction comes with a 4 percent service fee, not including the trading spread (the difference between the buy and sell price of bitcoin on an exchange), which could make the real cost of buying even higher. For comparison, Coinbase charges a fee of 1.49 percent. When dealing with several thousand dollar purchases, these fees add up. Meanwhile, Coinstar has even steeper fees. Customers that want to count their coins are charged a hefty 11.9 percent fee, for a service that many banks provide for free. The most perplexing part of the announcement is that “coins cannot be used for Bitcoin transactions,” a major selling point for customers who would rather turn their spare coins into BTC. Plans for Expansion If successful, the company plans to expand to other retailers and locations in the United States. Thousands of these machines could be enabled to facilitate bitcoin transactions. Neil Bergquist, Coinme’s co-founder had this to say about the move: “We’re excited to team up with Coinstar to give consumers a convenient and easy way to buy Bitcoin during the course of their daily routines. Bitcoin is no accessible at your local grocery store via Coinstar kiosks, and this offering will make it even easier for consumers to participate in this dynamic new economy.” Meanwhile, according to Coinstar’s CEO Jim Gaherity: “Coinstar is always looking for new ways to offer value to our consumers when they visit our kiosks, and Coinme’s innovative delivery mechanism along with Coinstar’s flexible platform makes it possible for consumers to easily purchase Bitcoin with cash.” Maybe with the novelty and hype around bitcoin, people will overlook the fact that they can buy bitcoin much more cheaply elsewhere. But, for people looking to sample the nascent cryptocurrency, this is a great way to get started. The post Coinstar Kiosks Across the United States Will Now Sell Bitcoin, at a Hefty Fee appeared first on CryptoSlate.

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.