Bitcoin is claimed to be a payment mechanism which will change the way payments are made, eventually influencing economics and even politics. Bitcoin critics have the opposite view. They opine that Bitcoin will suffer inevitably, and there might be a dramatic collapse.
Coinbase now officially owns Xapo, the cryptocurrency custody business. Coinbase outbid Fidelity in winning the bid.
BitGo stated in its blog post, “The clients calling us are concerned about the safety of their digital assets.” This BitGo says in its attempt to bring down the importance of Coinbase and its custody business activity. BitGo further fueled the process stating that they will be offering qualifying clients with a year of custodial service completely free of charge.
Keeping custody of customer’s crypto assets is becoming a big business, and giants are competing among themselves to scoop their stakes in this business. In summary, the cryptocurrency custody battle is brewing.
Brian Armstrong opines, “The institutional space for crypto is going through a period of incredible growth. Many still don’t realize it.” He further stated, “Custody has been a huge unlock for the industry.”
In reality, a very practical unlock will happen only when the regulators’ issue guidance, which is clear concerning cryptocurrency.
Davis Polk stated that Robert A. Cohen will be a member of White Collar Criminal Defense and Government Investigations Group. By virtue of this membership, Robert A. Cohen, the former chief of Cyber Unit at the US Securities and Exchange Commission (SEC) will be representing companies and boards in matters concerning regulation and compliance.
Neil MacBride, co-chair, stated, “Rob’s enforcement actions ranged from securities fraud to insider trading to market manipulation to cybersecurity, all areas of importance to our clients.”
Of note, Cohen was previously pursuing actions against ICOs, being the cyber unit head in SEC.
There are now more than 18,000 Bitcoin millionaires. Bitcoin has a market cap of 70% of the total cryptocurrency market volume. The Bitcoin hash rate has broken yet another all-time high.
Max Keiser, the Bitcoin investor, stated, “Price follows hash rate and hash rate chart continues its 9 yr bull market.”
Bitcoin halving is approaching in May 2020. Bitcoin is becoming an unlikely haven. However, not all are of a similar opinion. The volatility of Bitcoin is considered a plus, and it is not tied to the same forces, which currently drives the stocks and bonds market.
Evan Quo stated, “There have been almost ten years of data to suggest that the coin has no risk exposure to precious metals, commodities, equities, currencies and so on.”
