Bitcoin price declined heavily yesterday and traded close to the $6,650 support against the US Dollar.The price traded as low as $6,645 and it is currently recovering towards the $7,400 level.There is a key bearish trend line forming with resistance at $7,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair needs to clear the $7,400 and $7,512 resistance levels to start a strong upward move.Bitcoin price seems to be forming a new support base above $7,000 against the US Dollar. BTC is likely forming a decent bottom and it could climb higher above $7,400 and $7,500.Bitcoin Price AnalysisYesterday, we saw a significant downside correction in bitcoin price below the $8,000 and $7,500 supports against the US Dollar. The BTC/USD pair declined heavily and even broke the $7,000 support and 100 hourly simple moving average. Finally, there was a spike towards the $6,650 support area, where buyers emerged. A swing low was formed at $6,645 and the price recently started an upside correction. It traded above the $7,000 and $7,050 resistance levels. Besides, there was a break above the 23.6% Fib retracement level of the recent decline from the $8,050 swing high to $6,645 low.At the moment, the price is trading above $7,200, but it is facing a strong resistance near $7,400. There is also a key bearish trend line forming with resistance at $7,400 on the hourly chart of the BTC/USD pair. Moreover, the price is struggling near the 50% Fib retracement level of the recent decline from the $8,050 swing high to $6,645 low. If there is a proper break above the trend line and $7,420, the price could trade further higher.An important hurdle is near the $7,512 level and the 61.8% Fib retracement level of the recent decline from the $8,050 swing high to $6,645 low. A successful follow through above $7,512 is likely to set the pace for more gains in the near term. The next key resistances are near the $7,720 and $7,800 levels. On the downside, an initial support is near the $7,200 level. If there are further declines, the price could retest the $7,000 support.Looking at the chart, bitcoin price is currently trading with a positive bias above the $7,000 support. Therefore, there are high chances of a fresh increase above the $7,400 and $7,500 levels. Only a close below $7,000 could increase bearish pressure in the near term.Technical indicators:Hourly MACD – The MACD is back in the bullish zone, with a positive bias.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is moving higher and is currently above the 50 level.Major Support Levels – $7,200 followed by $7,000.Major Resistance Levels – $7,400, $7,512 and $7,720.
Archives for May 17, 2019
By CCN: HitBTC users are being asked to provide excessive detail about the derivation of their funds, according to multiple sources. Even Bitcoin developer Luke-Jr was forced to undergo KYC in order to withdraw funds. The famous small-blocker reportedly had chosen the exchange for its perceived lack of know-your-customer compliance.
High-Profile Users Get Their Issues Resolved
⚠️🔥Looks like @hitbtc have decided to go full scammer, and are stealing balances of users (including me).🔥⚠️
Probably a good idea to get anything you have there off, and take care not to use it.
(And as always, keep as little on exchanges as possible!)
— Luke Dashjr (@LukeDashjr) March 28, 2019
They’re locking accounts and making unreasonable demands for private information, which many people *can’t* provide even if they wanted to. And when you don’t/can’t comply, they just keep your bitcoins instead of closing your account and sending them to you.
— Luke Dashjr (@LukeDashjr) March 28, 2019
Citing their ToS, they claim the user agreed to cooperate with the KYC when they signed up.
But the KYC nonsense wasn’t in their ToS until recently, long after most people signed up. Indeed, many people probably signed up specifically because HitBTC had a reputation of no-KYC.
— Luke Dashjr (@LukeDashjr) March 28, 2019
And while every exchange does update their ToS from time to time, HitBTC’s explicitly said they would notify customers of any changes. They did NOT give any notification of adding the KYC clauses.
— Luke Dashjr (@LukeDashjr) March 28, 2019
Update: Can confirm my withdrawl has been broadcast.https://t.co/HaIArONT1V
— Luke Dashjr (@LukeDashjr) March 29, 2019
HitBTC, Would You Like A Blood Sample Too?
One user reports that HitBTC has frozen around $12,000 with the following message, which came after he provided all the requested verification documents:
“The source of funds report has to describe all the actions you have performed with these funds before sending them to HitBTC, e.g. purchasing them, exchanging, transferring from one address to another. Kindly present the chain of such events in chronological order. Please attach screenshots, which will confirm each step.”
The unusual request for further information is viewed as a violation of the user’s privacy and an attempt to simply withhold the funds. Meanwhile, other users claim that their funds have been stopped with limited response from customer support, sometimes for weeks on end.
It’s unclear if these demands are even in compliance with the laws that exchanges must abide by or what laws HitBTC is purportedly trying to respect. Various professional services exist, such as Chainalsysis, which are meant to help companies verify the legitimacy of crypto funds.
Any chance to get a serious answer, @hitbtc?
It’s been a week and still no news.
If you still wonder why i’m doing this, that’s because i can and i have an audience large enough to bring the attention on these cases.
Too many people have life changing money on your platform. pic.twitter.com/arB5WcpwHV
— The Crypto Monk ⛩ (@thecryptomonk) May 9, 2019
hitbtc are you Ethic? I CAN NOT Withdraw my BITCOIN FROM 4 OF MAY 2019, YOU WILL REPLAY ME THE SAME. Hi Carlos, we are working on this issue. We’ll get in touch with you once there is an update, AGAIN? pic.twitter.com/9SHWoQVhNI
— Carlos Leonardo Coro (@12345678910clc) May 15, 2019
HITBC WITHHOLDING FUNDS. HIDING BEHING KYC DEMAND THAT ARE IMPOSSIBLE TO FULFILL.
JUST LOST $12k.
ALLOWING DEPOSITS, BUT NOT WITHDRAWALS.
— Kenny Akman (@NYCrypto777) May 15, 2019
Another Month, Another HitBTC Problem
Complaints against HitBTC seem to stack up and stack up. Here’s a gentle reminder that the crypto trading world has hundreds of exchanges.
The exchange recently found itself under our microscope for inappropriately handling a token swap during a bull rush. Having closed the market in question, HitBTC users who held MaxiMine tokens were effectively locked out of realizing their gains. HitBTC later promised to send the tokens back to MaxiMine so that it could fairly distribute the tokens. The effect on the traders remains, as the price eventually collapsed.
A Reddit user says of HitBTC:
“Here is their favorite tactic: they wait until you send a large amount of funds to your account (for example, more than 1 btc) and then suspend the withdrawal and start an exciting quest called “go f**k yourself”.”
As recently as today, the exchange promised that a resolution is coming for its storied affiliate program, which has been in “maintenance” for several months.
Hello, @MalcolmRoseGM – can you provide us with a ticket number regarding the affiliate program? We need it to directly reach out to you once our team comes with a solution regarding the affiliate earnings. Thanks in advance.
— HitBTC (@hitbtc) May 17, 2019
Hardly a month passes without some public complaint against HitBTC. In the words of Luke-Jr:
Reminder: The technology required to secure a #Bitcoin exchange does not exist today. Plan accordingly.
— Luke Dashjr (@LukeDashjr) April 26, 2019
The leading cryptocurrency by market cap has only been around for just over a decade. Due to this, there isn’t much history in Bitcoin price charts to attempt to discover historical repeating patterns that can be used to help determine future movements.
Bitcoin’s value was slashed by approximately $21 billion in the last 24 hours, with the BTC price currently holding above the $7,000 threshold. The declines were traced back to a mega sell order on Bitstamp exchange, either creating an opportunity for investors who missed the previous run or providing a warning before the other shoe drops.
Of course, crypto bulls and bears disagree about what comes next.
Crypto trader DonAlt set the tone on Twitter, making it clear the direction in which he believes the bitcoin price is headed: up to $10,000. Blockchain pioneer Vinny Lingham, who only recently conceded that bitcoin had bottomed, seemingly has not wavered from his new bullish take.
I concur 😉 https://t.co/bZckGhfxGX
— Vinny Lingham (@VinnyLingham) May 17, 2019
And while the CNBC trading desk isn’t always where you might turn for crypto trading analysis, cooler heads appear to have prevailed this time around. They provided technical analysis and were encouraged by the “trend line” that’s been in place since the April 4 rally. Tim Seymour stated seemed to suggest that bitcoin was due for a cooling off.
“You actually still are above that trend line, which probably takes you up to around $6,800. You got to a 95 nine-day RSI. Even for bitcoin, that was extreme.”
Another trader on the desk Carter Worth was also impressed with the technical signals, suggesting that the dip in the BTC price is a buying opportunity.
Bitcoin nightmare as a sell-off wiped $21B off its market cap overnight. Here’s what’s behind the crypto crush. pic.twitter.com/w5SX22hhcW
— CNBC’s Fast Money (@CNBCFastMoney) May 17, 2019
Tone Vays, Bitcoin, and the Flash Crash
Not everyone is so bullish. Derivatives trader and analyst Tone Vays analyzed what he described as a “monstrosity” in the bitcoin price when it precipitously dropped from $7,800 to $6,180 on Bitstamp. Based on the hourly chart, he said earlier today the stage was set for a “beautiful short trade.” He’s not personally taking the short trade, but said it’s a “tradeable setup.”
Vays warns that “he would not be buying on the way down” and instead “would wait and see when the down ends,” adding:
“I actually think we are going to go down and I think we are going to go sub-$6,000 on this one…I even think we’re going to go below $5,000 as well.”
The uber-bear even wagered during the Consensus conference in New York when the excitement around bitcoin was high that the price would fall below $4,500.
Should the BTC price retreat below $6,900, Vays expect that its drop could be swift to “retest the prior flash crash.”
If bitcoin has proven one thing in 2019, that would be its resilience to pressure.
Bought the BNB dip on the hack. Already paid dividends.
If you bought the BTC dip.
— The Crypto King (@JBTheCryptoKing) May 17, 2019
The crypto markets incurred a significant amount of selling pressure late-yesterday that sent them reeling downwards, surrendering a decent portion of the recent gains they have incurred as a result of the massive rally that has been taking place since early-April.Despite the recent drop, some analysts believe that Bitcoin’s rally may not be done just yet, as a bout of coordinated selling may have sparked this temporary downwards movement.Bitcoin (BTC) Plummets Towards $7,000At the time of writing, Bitcoin is trading down 11% at its current price of $7,100, down significantly from its 24-hour highs of over $8,000.Over a one-week period, Bitcoin is still up significantly from its lows of $6,300 but is down slightly from its highs of nearly $8,400 which were set this past Wednesday.Although this latest move downwards has drastically shifted the market’s sentiment for the worst, it is important for investors to keep in mind the fact that the latest pullback comes on the heels of a massive rally that put a significant amount of distance between Bitcoin’s current price and its 2018 lows of roughly $3,200.As for what may have caused this latest pullback, Dovey Wan, a popular figure on Twitter and a founding partner at Primitive, explained that this recent drop was sparked by a large sell order of 5,000 BTC on Bitstamp, which may have sparked the downtrend.“This is what happened: 1. A jackass put up an aggregated sell of 5000 $BTC on stamp. 2. Stamp poor depth + algo glitch? 3. Bmx index is 50% on stamp. 4. Massive Bmx liq tanked the mkt. 5. Despite all BTC quickly bounced back to $7000… This might be the best chance to BTFMD,” Wan said, bullishly concluding that now may be the time to “buy the dip.”This is what happened1. A jackass put up an aggregated sell of 5000 $BTC on stamp2. Stamp poor depth + algo glitch?3. Bmx index is 50% on stamp4. Massive Bmx liq tanked the mkt5. Despite all ☝🏻BTC quickly bounced back to $7000This might be the best chance to BTFMD— Dovey Wan 🗝 🦖 (@DoveyWan) May 17, 2019Analyst: BTC Must Break Back Above 4-hour RSI and Candle Resistances to Continue Surging Although it is unclear as to whether or not the current drawback is over or if further losses are imminent, it is important that Bitcoin breaks above newly formed resistance levels in order for it to continue surging upwards.The Cryptomist, a popular cryptocurrency analyst on Twitter, spoke about Bitcoin’s important resistance levels in a recent tweet, noting that BTC is likely to test both its 4 hour RSI resistance and its recently formed candle resistance in the next few days, which will give traders greater insight into whether or not BTC will be able to continue surging higher in the near-future.“After a week of warning about the RSI support, we finally broke it. CME gap also filled. I am watching to see how we react upon the RED RSI support line. 4hr RSI & candle resistances that led to this drop need to be broken for bullish momentum. Should test in next few days,” she said.$BtcAfter a week of warning about the RSI support, we finally broke it 😊
CME gap also filled
I am watching to see how we react upon the RED RSI support line4hr RSI & candle resistances that led to this drop need to be broken for bullish momentum
Should test in next few days pic.twitter.com/sIpSMGtnWx— The Cryptomist (@TheCryptomist) May 17, 2019As the week wraps up and the weekend trading session kicks off, the magnitude and long-term importance of Bitcoin’s latest pullback will likely grow much clearer.Featured image from Shutterstock.
Bitfinex: Supreme Court Ruling a “Victory”
The embattled exchange called the ruling a “victory” and insinuates that the case will end up going nowhere. Bitfinex has already admitted that as much as $850 million evaporated from its coffers while Tether Limited has publicly confessed to only partially backing the world’s oldest stablecoin.
Under the order, Tether and Bitfinex can continue business as usual, but Tether Limited may not make any loans to Bitfinex. Moreover, while the injunction has been modified, Bitfinex and Tether are called on to cooperate with the investigation to the best of their ability.
“Having now heard both sides of the story, the Court grants Respondents’ motion in part and denies it in part for the reasons set forth on the record at a hearing on May 6, 2019 and as summarized herein. In a nutshell, the Court finds that Petitioner is entitled to the Order requiring Respondent to promptly produce evidence, but that the preliminary injunction contained in the Order should be modified.”
NY court grants Bitfinex’s motion to modify injunction: https://t.co/b8TY0QBvYs
— Bitfinex (@bitfinex) May 16, 2019
Tether-Bitfinex Credit Line Frozen
Judge Joel M. Cohen notes that a vital part of the attorney general’s investigation rests on the idea that Bitfinex secured a line of credit from Tether. Tether will not be allowed to loan any money to Bitfinex while the investigation is ongoing, and both companies need to provide information about that situation. While stipulating that New York law doesn’t give the AG with carte blanche, the court does uphold the AG’s right to investigate under New York business law.
“[T]he Court finds that Petitioner has made a sufficient showing to warrant a targeted preliminary injunction preventing Respondents from continuing to let dollars flow out of Tether’s reserves via the type of extraordinary transaction that triggered Petitioner’s concern.”
Moreover, while noting that Bitfinex denies the AG’s characterization of its relationship with Tether, the order more or less refutes the notion that the government has no authority over how such companies do business.
How the Mighty Could Fall
Bitfinex believes that the investigation is a dead end. The stance smacks of the “no collusion” mantra of Donald Trump and his supporters. The firm claims it is being wrongly investigated and seems bitter about having voluntarily cooperated with authorities previously:
“The New York Attorney General’s office has sought to proceed ex parte against us and in bad faith, notwithstanding our previous, historical, and voluntary co-operation with them. We will vigorously defend against any action by the New York Attorney General’s office, and we remain committed, as ever, to protecting our customers, our business, and our community against their meritless claims.”
Part of the problem with Bitfinex and Tether’s behavior is that investors were not previously aware of the unusual dealings. Whatever the outcome, Bitfinex and Tether both find themselves in the crosshairs of one of the least-friendly-to-crypto governments in the U.S. Despite Bitfinex’s apparent confidence, the effect of this judgment amounts to a mild annoyance for the NY Attorney General.
Recently, there has been an uptick in the numbers of notable people publicly discussing some form of ban on crypto assets such as Bitcoin. The latest comes from Germany, where one of the nation’s left wing parties is in favour of attempting to outlaw digital currency across Europe.The news follows similar calls by US Congressman Brad Sherman and respected economist Joseph Stiglitz. Lacking technical backgrounds, however, it is unclear just how much any of these crypto critics have considered the logistics of enforcing such a ban.German Leftists Die Linke Call for a Ban on Bitcoin and CryptoAccording to domestic tech and business news source, Gründerszene, a left wing German political party has just released its European Parliamentary election campaign manifesto. The elections will be held on May 26 and, as part of the “Die Linke” (The Left) party’s policies that are “against an EU of millionaires”, there is a plan to outlaw Bitcoin and other crypto assets.The main gripe against digital currencies appears to be on environmental grounds. The fact that some use a large amount of electricity is an issue for the German leftists. This may mean that proof-of-stake digital coins and those using other consensus finding systems than proof-of-work are deemed permissible by the party.Like the others that have called for a ban on crypto assets like Bitcoin in recent weeks, Die Linke gives little explanation as to how it plans on achieving such a ban. Bitcoin is a decentralised network. There is no central weakness for authorities to come after.Even if all of Europe outright banned it tomorrow, digital assets would survive. They might have to evolve to survive, becoming more stealthy and private, but that would only make them even more difficult to police.Interestingly, one of those calling for a ban recently, US Congressman Brad Sherman, himself inadvertently stated exactly why Bitcoin would not die – the fact that it weakens US hegemony. Sherman stated, remarkably candidly, that a large part of his nation’s privileged position in the world comes from the fact that the US dollar is used a world reserve currency.the video of @BradSherman‘s call to ban bitcoin is the best advertisement for the digital asset i’ve seen in quite some time (HT Oskar_Koch on Reddit) https://t.co/KeGCO0uXSh pic.twitter.com/VDF6XxBFre— Kyle Torpey (@kyletorpey) May 9, 2019Bitcoin offers an alternative that many nations that are currently trying to reduce their dependence on the dollar might find attractive. That was the precise reason Sherman gave for wanting “to nip [Bitcoin] in the bud”. Given that nations such as Iran, North Korea, Russia, and China would all like US dominance to wane significantly, it is incredibly difficult to believe that these states would join Europe or the US in some clampdown against the currency.Those who understand how Bitcoin works also understand that only such a universal ban, enforced equally around the world, would stand any chance of success. That said, even with global cooperation, wiping crypto assets from the face of the earth is still highly unlikely to succeed.Rather more likely would be a scenario where a partial ban is attempted and Bitcoin goes underground by integrating privacy-focused upgrades rapidly. This would effectively stifle any legitimate use of the currency and transform it very quickly into a drug-dealing, money-laundering, human-trafficking mega-tool for international criminals and anyone else who refuses to endorse such draconian, monopolistic policies. Related Reading: Bitcoin Flavour of the Week Again: Crypto Back in Mainstream MediaFeatured Image from Shutterstock.
The crypto markets have been on the up-and-up for the past several weeks, and Bitcoin just recently set fresh year-to-date highs in the mid-$8,000 region. Despite this, the upwards momentum that have incurred since early-April was put in jeopardy late-yesterday when BTC plummeted below $7,000 before quickly bouncing back into the $7,000 region.Despite some short-term choppiness, over a long-time frame the markets are still in a clear uptrend, and one prominent venture capitalist believes that the improved fundamental conditions of the crypto markets will help propel them back towards their all-time-highs in 2019.Bitcoin’s Sentiment and Technicals Look Great, Claims Prominent VCBarry Silbert, who is the founder and CEO of the revered crypto/blockchain focused venture capital firm, Digital Currency Group, shared his thoughts on the current state of the markets in a recent interview with Bloomberg, where he bullishly noted that the markets are likely to rocket towards fresh-all-time highs in the near future.Silbert justified his bullish bias by referring to the improving sentiment surrounding the cryptocurrency as well as its improving technical formations.“Sentiment, the technicals look great. An 80 percent drawdown happened three or four times and every time that’s happened [it hit] record highs. So as soon as you get the price going back up, and animal instincts come back, [the market recovers],” he explained.Despite growing technical strength, it is important to note that the status of the recent bullish uptrend does appear to be unclear at the present, as BTC swiftly plummeted below $7,000 late yesterday, before finding some levels of support that helped to propel it back towards its current price levels of $7,175.BTC Incurs Better Infrastructure That May Minimize Chances of Another CrashDespite the recent drop, however, it is undeniable that the crypto markets as a whole have been incurring growing fundamental strength, with more institutional investors foraying into the markets through newly formed gateways being offered by the likes of Fidelity and the ICE-backed Bakkt.On this note, Silbert noted that the current uptrend differs from previous ones that subsequently resulted in massive crashes in that the currently rally is being supported by significantly better infrastructure than the markets have had in years past.“But the difference between this increase in price versus the bubble in 2017 is the infrastructure is much different. You have custodians now. you have trading software, you have compliance software, people are educated about the asset class, so this time is different,” Silbert said.Although it remains unclear as to whether or not the current rally will ultimately morph into a long-term uptrend, there’s no question that the crypto markets have been incurring greater fundamental and technical strength, which may ultimately help fan the flames that fuel the next parabolic uptrend.Featured image from Shutterstock.
The CEO of asset management firm US Global Investors has given his opinions on the Bitcoin and wider crypto market, and how it relates to that of gold. Frank Holmes is of the belief that digital currencies are fast becoming an “alternative asset class”, just like the shiny, precious metal.However, Holmes has apparently not fully sided with either when it comes to store-of-value assets. Unlike many in the pro-crypto camp, he remains a staunch proponent of the shiny, yellow metal.Frank Holmes: Bitcoin has Bottomed and is Ready to Continue Climbing AgainCEO of HIVE Blockchain Technologies and US Global Investors, Frank Holmes, took a break from attending Consensus this week to appear on Kitco News. There, he opined on both the crypto and gold markets.For Holmes, the signal that the ultimate bottom occurred in Bitcoin at $3,200 was JP Morgan introducing its own currency, styled loosely on crypto, in February:“They trash talked Bitcoin all the way down until February of this year when they released their coin. All of a sudden we had a bottom in Bitcoin.”Looking towards the space’s future, the entrepreneur says that the increase in new wallets continuing over the course of the bear market should give the Bitcoin price a great base to built into “the next bull cycle” from.For Holmes, the crypto market should recover much more quickly than other historic crashes. He stated that unlike the housing market collapse, the bear market of 2018 was not caused by overleveraging. This will further fuel Bitcoin’s rise to bone fide investment vehicle in the eyes of many:“This [correction] can be a year, and we’re slowly climbing out of it, and [bitcoin] is becoming an alternative asset class like gold.”When the segment’s presenter brought up Grayscale Investments’s recent #DropGold campaign and the presumed rivalry between the two safe haven asset classes, Holmes was keen to state to people that Bitcoin should not be seen as a replacement for gold.Bitcoin has often been described as “digital gold”.Seemingly irked by the suggestion that some people might be turning their back on the historic store-of-value in favour of gold, Holmes went on a somewhat bizarre rant about the work ethic of “ignorant millennials” and their desire to wage “rebellion against anything and everything” before stating:“[Millennials] should do their homework, they should open up a history book on why gold is so significant… why the great ‘love trade’, that if you love your country you should have gold in reserve. If you have a crisis, your paper money goes down in tremendous value. Gold is what bailed out Britain, getting it over to Canada, and then trading to get weapons from America, it was gold that did it.”Finally, the CEO touched upon the atmosphere at the Consensus conference occurring this week. He described it as “subdued” and that this was a positive sign for the market:“People are still fragile, they don’t believe it. I think this is a positive sign for the cryptocurrencies all to trade higher.” Related Reading: Bitcoin FOMO is Strong But The Bears Will Not Go QuietlyFeatured Image from Shutterstock.
By CCN: Most of crypto land celebrated when Flexa and Gemini partnered to deliver digital currency-fueled micro-payments to merchants. Spedn will let consumers shop at major stores including Nordstrom and Lowe’s and pay with crypto across bitcoin, ether, Bitcoin Cash, and Gemini Dollar. But one crypto influencer was left out of the celebration – Litecoin Creator Charlie Lee. That’s because Litecoin was noticeably absent from the list of coins that the Spedn app supports.
Lee tagged Flexa Co-Founder Trevor Filter in a tweet rallying followers to agree that the “app should let us pay with Litecoin at Whole Foods, Gamestop, and thousands of other merchants!” Filter retweeted the message with a mysterious response saying that “retweets don’t equal endorsements…or do they?” That left Crypto Twitter to speculate that the fifth-biggest cryptocurrency would be the next coin to make the list.
Retweets ≠ endorsements (…Or do they?) https://t.co/U71uKOEOSg
— Trevor Filter (@trev) May 16, 2019
Litecoin Is Basically Bitcoin Junior
Litecoin Vice President of Nationwide Merchant Solutions Jon Moore couldn’t agree more. He tweeted:
“The reason Litecoin should be added to Flexa is because #PayWithLitecoin is all about spending and supporting merchants that accept LTC!! It has nothing to do with tech, it’s about sound money, freedom, and supporting crypto adoption.”
Litecoin is meant to be a lot like bitcoin, only faster and eventually more private. The Litecoin team doesn’t seem to mind being the silver to bitcoin’s gold. The LTC price has nearly tripled year-to-date while bitcoin has only doubled.
— johnkimofficial.com ⚡️Chief LTC Evangelist (@johnkim77) May 16, 2019
A Whopping $90 Million Was Spent on Credit Card Processing Fees Last Year
If any app so far has the ability to usher in mainstream adoption of crypto, it’s Flexa’s Spedn. Not only do they make it easier for users to spend crypto as a currency but they slash fees for retailers that suffer from a huge pain point of credit card fees, costs that ultimately trickle down to shoppers. According to crypto exchange Gemini, which was founded by Cameron and Tyler Winklevoss:
“Retailers spent $90 billion on credit card processing fees in 2018. This was almost entirely passed onto customers.”
First real world real crypto purchase that was actually as easy as a credit card! pic.twitter.com/kaejvOKsYO
— Joey Krug (@joeykrug) May 13, 2019
Litecoin Is MIA
The way Spedn works is investors load BTC, ETH, BCH, GUSD (and maybe one day LTC) onto the app. Consumers continue to own the crypto in the app until they spend it. Not everyone is a fan of the fact that the funds are stored on the exchange.
The #Spedn app, built on open #Flexa network uses #crypto stored at #Gemini, therefore: not your keys – not your crypto. Additionally, Flexa collects personally identifiable information, as well as has the right to temporarily delay, hold, or return deposits. #ThisIsntCrypto
— Weiss Ratings (@WeissRatings) May 17, 2019
To spend, users must display a code that gets scanned at the point-of-sale, and the transaction is completed. Retailers don’t take on any volatility risk thanks to Gemini.
“They custody and insure all the funds that are deposited within the app,” stated Flexa Co-Founder and CEO Tyler Spalding in a Yahoo Finance interview.
Flexa and Gemini have done all the work and have the power to dramatically lower fees for merchants. But in order for crypto’s use case as a currency to increase, consumers must begin spending bitcoin, Bitcoin Cash, ether, and Gemini Dollar via the Spedn app in stores. And eventually perhaps Litecoin, too.
Retailers spent 90 billion on credit card processing fees in 2018. This was almost entirely passed on to customers. @FlexaHQ is “designed with merchants in mind, and users experience 0 volatility risk when transacting.” #CryptoNotCredit https://t.co/6RPo8UF7dO
— Gemini (@Gemini) May 16, 2019