US Rep. Patrick McHenry (R-N.C.), ranking member of the Financial Services Committee, confirms why Bitcoin is shaking up governments, banks and institutional and retail investors around the globe.
“There’s no capacity to kill Bitcoin.”
Speaking on CNBC’s Squawk Box, McHenry gives an overview of the government’s efforts to tame Libra and its development team at Facebook by holding consecutive Senate hearings. In large part, the hearings reveal Libra’s threat as a game-changer in global finance with the power to reach billions of people overnight.
According to McHenry,
“The issue here is there’s a knee-jerk reaction to kill it before it grows. There’s a whitepaper that’s an idea and there’s a consortium of companies – some with better reputations than Facebook currently has – that are developing a digital payments platform and a digital currency. Interesting, right? Instead, we have a knee-jerk reaction to kill an idea.”
McHenry questions the role of government in private enterprise and intervention in the development of business concepts.
Slaying Facebook over its latest innovation has raised concerns about the government’s willingness to support the foundational tenets of free markets, free enterprise, product competition and the country’s history of invigorating capitalism, jobs and leadership through innovation.
“Look, in the broad sense here, I’m a friend of innovation and I’m not a friend of a missioned society where every business has to come to government with their hand out and say, ‘Can I do this? Can I bring a new product to market?’ If they comply with existing laws, have at it.
I’ve got legitimate questions that I think need to be answered, but this whole thing about yelling at Facebook about trust – give me a break. Consumers are making a choice.”
Regarding Facebook’s record on protecting data privacy, McHenry doesn’t conflate the two.
“There’s a whole slew of litigation about this. Let’s have a separate hearing about that – that’s fine.”
“The way we’ve set this up is we have guardrails. You follow the speed limit, you can drive whatever vehicle as long as it’s safe.“
Host Andrew Ross Sorkin, who posits that governments have a monopoly on money, asks McHenry if lawmakers will ultimately try to stifle the crypto industry or if they’ll let it flourish.
“Long-term, do you think that regulators and politicians like yourself will allow the emergence of these new types of currencies if they don’t look a lot like the regulations and guardrails that we currently have around fiat currency and money?”
“Well, I think there’s no capacity to kill Bitcoin. Even the Chinese with their firewall and their extreme intervention in their society couldn’t kill Bitcoin. So a distributed ledger, full and open, in the essence of Bitcoin as a first mover in this space, the developer of this technology blockchain
When Sorkin jumped in to point out that Bitcoin’s price has taken a precipitous drop over the past 48 hours as speculators seemingly react to a slew of high-level bashes against cryptocurrency, including recent criticisms from President Trump, Treasury Secretary Steven Mnuchin and the politicians conducting the Facebook Libra hearings, McHenry stayed on point about the foundations of the technology which has not changed since Bitcoin launched in 2009.
“My point here is you can’t kill Bitcoin. But new iterations of this that are trying to mimic it, that are not fully distributed, that are not fully open, there are different mechanisms to kill it.”
But regulators could prohibit businesses and services that provide support for Bitcoin – like Coinbase. While McHenry agrees that there’s room for a new financial product that could dramatically improve the flow of money around the globe by implementing a system that is much more cost-effective and technologically advanced than old legacy platforms such as SWIFT and Western Union, he avoided giving Sorkin a direct answer to a key question.
Speaking on behalf of Bitcoin investors, Sorkin asks,
“If you said right now that Coinbase could not accept money from an American citizen, if you said that any of these wallets cannot accept money, you – I’m not saying you’d shut down Bitcoin. Bitcoin would exist somewhere and it would be in sort of a dark web kind of situation. But it effectively would make it very, very difficult for the mainstream to use it…
If it ever gets mainstream, if it ever gets to escape velocity, does Congress, do regulators say, ‘You know what, actually – in the same way that you’re looking at Libra as closely as you are, and this is going to happen at the G7 meeting as well – do people say, ‘Bitcoin will live in the shadows. But boy, it’s not going to live in the mainstream.’ And that’s the question that I think I have and that’s the question that I think Bitcoin investors have and that’s why the price of it has come down, literally, in the past 48 hours.”
McHenry had no direct reply.
Dave Hodgson, director and co-founder of NEM Ventures, the venture capital and investments arm of the NEM blockchain ecosystem, tells Forbes that the rubber has met the road.
“Government and central banks are after Bitcoin and Libra because they reduce their ability to control markets and populations, while also making some of what they do irrelevant. It is uncomfortable when people ultimately realize that the emperor has no clothes.”
BITCOIN VOLATILITY DWINDLING, HAS BTC TAKEN AN EARLY VACATION?
Bitcoin and cryptocurrency markets are slowing down. There has been very little activity over the past week as volumes and volatility decline. Technical indicators are also lining up which could indicate a larger move is imminent or is BTC on vacation for the rest of the year?
BITCOIN SLOWING DOWN
This may not be such a bad thing. One of the points bitcoin detractors always make is that it is too volatile to be used as a daily currency. This much is true if a cup of coffee is going to be 20% cheaper ten minutes later you’re not going to buy one in BTC right now.
Over the past year or so these massive price swings have decreased in amplitude and it appears that bitcoin has entered a low volatility regime.
Day traders seeking quick bucks have had to take a break as movements are minimal at the
This type of action often preludes a bigger move and technical indicators such as Bollinger bands squeezing are also indicative of such.
This slowing of momentum has happened across the board, not just on bitcoin markets. Ethereum volatility is also at low ebb, falling to levels not experienced since 2016 as noted by Coin Metrics.
It could just be that time of year when traders take a break and FOMO is as thin as the first fall of winter snow. If this is the case then markets will remain flaccid until sometime next month.
Bitcoin News Today – Headlines for December 14
- Investor believes round numbers are very important in BTC markets
- BTC crossing $10k is important says investors and analysts
- Crossing the $10k mark in the near-term will ensure that Bitcoin’s price action is positive.
Bitcoin News Today – Bitcoin investors have always gravitated towards round figures. According to one top crypto investor and commentator, the importance of round numbers can’t be overstated especially in a nascent market. This implies that after reclaiming the $10,000 mark, the macro price scales will ensure that Bitcoin can go higher and higher until it reaches a new round number.
The Importance of Round Number Prices in Crypto
During a recent interview with Luke Martin, Three Arrows Capital Su Zhu said gave his opinion on why round numbers are essential. According to Zhu round numbers are important in the crypto market because the leading crypto topping the $10,000 mark will be an important time in terms of forcing a good price action. It isn’t only Zhu who is of the view that $10,000 is of great importance for Bitcoin and the entire crypto space.
Earlier in the year, Tom Lee, Fundstrat Global Advisors’ resident crypto analyst released his analysis for BTC by his firm. His analysis implies that if the price of BTC reaches and crosses the $10,000 level it could mean
Another platform that agrees with Zhu’s view is Bloomberg. Bloomberg wrote in November of this year about the importance of the $10k barrier and how essential round figures with four and five digits are. The platform said Bitcoin faces a solid resistance point at the $10,000 area. The coin will have to break this barrier if there is to be a confirmation and continuation of meaningful gains.
Is the $10k Mark Attainable for Bitcoin?
Speaking about Bloomberg and BTC getting to the $10,000 mark, one analyst at Bloomberg believes that it’s just a matter of time before the number one crypto tops that key position. The analyst, Mike McGlone, who is the senior commodities strategist at Bloomberg, revealed in his monthly market update that he believes that Bitcoin will top the essential $10,000 resistance point. He said as gold rallies, Bitcoin should rally. While Gold is currently trending below BTC amidst the trade war, the macro picture may begin to favor gold and Bitcoin as we head into 2020.
Stratis Will Increase Rapidly If It Moves Above 4500 Satoshis, Predicts Trader
Stratis has been trading in a range since August 2019. This movement has the characteristics of the consolidation phase, after which a new bullish market cycle is expected to begin.
The trading range of this consolidation has a magnitude of 40%, and the price has tested both the resistance and support areas several times. At the time of writing, it was moving upward towards the resistance area.
Additionally, he suggested that a breakout above the 4500 satoshi resistance area would probably accelerate the rate of increase.
Let’s take a closer look at the price and see how likely this is to happen.
First, the Stratis price reached the long-term support area at 3000 satoshis in August 2019.
This was almost an all-time low, coinciding with the lows reached in 2016, which was the bottom before the 2017 upward move.
Additionally, the RSI reached an all-time low value of 23 during this time and created bullish
This suggests that this is a very suitable level to make a low and initiate a reversal, as we have suggested in our previous article.
Looking closer at the movement, we can see the trading range, consisting of two support and one resistance area.
The main support area is at 3250 satoshis, where the double bottom was created. This is followed by the minor support area at 3850 satoshis. The minor support coincides with the 100-day moving average (MA). The price has flipped it as support. The price fell inside it twice and began an upward move each time.
The resistance area is found at 4500 satoshis and the price has not reached it since November 30.
On December 11, the Stratis price broke out above the descending resistance line that had been in place since the beginning of December.
The breakout transpired with significant volume, increasing the validity of the movement. Afterward, the price returned to validate the descending resistance line, a common movement after breakouts.
To conclude, the Stratis price is likely consolidating before beginning a new market cycle. A decisive breakout above 4500 satoshis is expected, confirming that the new cycle has begun.