China lifts crypto mining ban, Bitcoin prospects improve

November 7, 2019
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“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.”
― Ayn Rand

5-Day Change

  • Bitcoin $9,188
    -0.01%
  • Ethereum $186.24
    +3.18%
  • Ripple $0.2895
    +1.56%
  • Litecoin $60.87
    +6.27%

China Reverses Course on Mining

China, home to four out of the five biggest Bitcoin mining pools, will no longer ban mining...which can only mean good things for the world’s leading cryptocurrency. The country had previously considered a ban on mining, and regulation was included in its annual industrial standards document, but the reference to regulation is now gone.

Why would China change its mind? It probably has to do with Chinese Premier Xi Jinping’s guidance to focus on developing blockchain technology and for China to take a ‘leading position in the emerging field of blockchain, occupy the commanding heights of innovation, and gain new industrial advantages.’

What does this mean for Bitcoin? Well, good news in Bitcoin has a pretty good correlation to price jumps. And this reversal is excellent news for miners who have invested hundreds of thousands of dollars in capital. Even though there is a ban on bitcoin trading in China, the country still remains a driver of price.

Does this mean the ban on trading will be lifted? It’s doubtful – despite the reversal on the mining ban, there’s been no sign that China is softening on exchanges. But it may approach them with a lighter touch since exchanges are often centers of innovation.

Wut We Think: Public relations has a saying – “All news is good news.” While that may not be strictly true for cryptocurrency – it does have a kernel of truth – the good news is definitely good news. And this might just be what the Bitcoin price needs to break out of the current $9,200 consolidation.

 

Blockchain Drives Interest in Cross-Border Payments

The remittance market is one of the juiciest in the world...but it’s currently locked up by a globe-spanning duopoly consisting of MoneyGram and Western Union, both of which charge outsize fees and often use unfavorable exchange rates. Cryptocurrency is a solution to that problem, but adoption has often been a tough challenge.

Payment leaders are looking at the blockchain: A recent poll by Ripple,  – crypto intended explicitly for cross-border payments  – shows that 87% of payment leaders are looking at blockchain implementation. This could result in improved adoption as blockchain features are added to existing consumer products.

Ripple is making good progress: Ripple’s become a giant in the crypto industry, forging key partnerships with market leaders. The partnership with MoneyGram, which makes use of Ripple’s instant settlement product, will soon be launched in Walmart locations across the US. In the short-term, Ripple’s popularity represents an opportunity for quick-witted traders.

And Ripple’s price has good prospects: Not only does Ripple have over 300 customers, it has one draw most cryptos are missing – a viral presence. But all that may change, as pop superstar Justin Bieber reportedly runs an Instagram campaign with Ripple’s slogan.

Wut We Think: Cross-border payments have long been crypto’s white whale – presumably, cryptocurrency being used to transfer money across national borders would result in something akin to mass adoption. And with the most promising digital coins to reach adoption – Libra and Telegram’s TON coin – currently on hiatus, it may be established cryptos like Ripple that manage to breakthrough.

 

Trading Spotlight: Bollinger Bands

Bollinger bands are a commonly used and powerful tool in technical analysis. Created by John Bollinger in the 1980s, the bands set two boundaries for a price trend, allowing a trader to see both the minimum and maximum moving averages, as well as volatility, at a glance.

Bollinger Bands: Bollinger bands are created by looking at the standard deviation of prices over some amount of time, which then allows an analyst to draw high and low bands, enveloping a price trend. Trading signals generated by Bollinger bands involve monitoring when prices touch or breakthrough a given band – prices at the upper band often indicate an overbought market, which will correct downwards, and the opposite for the lower bands. For more information, take a look at the Monfex Trading Academy

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