Bitcoin price certainly knows how to play with nerves on a Friday, as it took yet another snipe at the USD 8,000 support, making a fresh low but still a whisker off the mark at USD 8,014 at 9:00 am London (CoinDesk).
It hasn’t been able to improve on yesterday’s high, though, and is still struggling to make pace above USD 8,200, where it currently hovers with the American markets opening now.
— Cryptocoinsinfo.net (@ccinfonet) October 4, 2019
Altcoins, on the other hand, are getting some breeze from upwinds, with almost all of them enjoying some small returns on the day, led by Ripple (XRP) and EOS, making over 4% gains, and Ether and Litecoin enjoying over 2% gains.
Now we’re not going to talk too much about Bakkt again, as we’re quite clear on our stance that it was never a point for bull runs to start, but we’ll quickly mention here that today, a first block trade of Bakkt Bitcoin futures took place.
Conducted by investment fund Galaxy Digital and over-the-counter (OTC) firm XBTO, this activity is of minor significance, but the fact that it had to happen off the open market means that large transactions are finally happening on the platform.
The ongoing Delta Summit in Malta is brewing some bullish news for blockchain derivatives, with FXStreet reporting that futures are an immediate focal target for Malta-based crypto exchange OKEx, who is saying that investors are looking for such advanced tools to hedge their bets in risky positions. OKEx Financial Market Director Lennix Lai believes that short options especially are attractive to mainstream investors who are still sitting on the sidelines when it comes to crypto.
The rest of the commentators at the conference do agree that as the crypto industry takes time to mature, derivatives will surely be needed in the mean time. These would serve not only as a means of managing risk, but also as a gateway to trading actual digital assets.
But let’s not get ahead of ourselves and say that derivatives will guarantee that crypto is brought to the masses! First, we’d have to get over the clear hurdles that keep presenting themselves, such as from “Shark Tank” investor Mark Cuban.
The billionaire technopreneur, who made his fortune selling Broadcast.com to Yahoo for USD 5.7 billion in 1999, has claimed in an video interview with Wired that he “hates crypto” and says that he would “rather have bananas than Bitcoin”. He insists that mainstream adoption would be so difficult for a digital asset that he claims is too complex to learn about:
“I could eat bananas — bitcoin, not so much… Crypto is so complicated for 99% of the population,” he said. “Do you put it in a device? Do you print it out? How do you keep it from being hacked? Who is going to host it for you?”
Cuban even says that baseball cards and comic books are in the same category as Bitcoin, since none of them have intrinsic value, though argues he could find more use for a baseball card than for Bitcoin. Not everything is bad about Bitcoin, though. Despite all he says, Cuban admits that he does seem them as “stored value”:
“I say it’s like gold. Gold is a religion: people who are really into gold—they’ll tell you that there’s a bad depression and things go to hell in a handbasket, if you own gold then you’ll be okay. No, you won’t!”
Non-profits the world over might disagree about Cuban’s assessment of Bitcoin, according to the 2019 Global NGO Technology Report, published by Nonprofit Tech for Good. Since 2018, it appears now that crypto adoption by NGOs in donations has more than doubled in Australia, North America and Europe.
Polling more than 5,700 NGOs and charities in 160 countries, it was found that only 2% of total donations were in crypto but that is already a clear sign of adoption. The numbers get more interesting, when we see that the highest number of crypto-accepting NGOs are found in the African continent.
Charities have admitted, however, that they still do not understand the technology behind blockchain, and this may affect how crypto helps aid recipients on the ground. Only 12.5% of respondents said they understood the technology, but efforts led by the likes of Jimmy Song, whom we covered yesterday, hope to target this challenge.
Song will work with bodies like the Human Rights Foundation to teach people what Bitcoin is about, how to use it to their advantage and how to free themselves from financial oppression.
If that’s not bullish for Bitcoin long term, little else is.
Image Courtesy: Pixabay