The Dallas Mavericks have become the second NBA team to accept Bitcoin (BTC) as a means of payment for match tickets and merchandise.
A tweet from cryptocurrency payment processor BitPay confirmed the news on Aug. 13.
Mavs’ billionaire owner is a crypto enthusiast
Cryptocurrency adoption has been on the horizon for the Mavs since early last year, when team owner and billionaire tech investor Mark Cuban hinted that fans would soon be able to use Bitcoin to buy tickets to the team’s games.
A year and a half later, Cuban’s plans have materialized and the Mavs join their NBA rivals, The Sacramento Kings, in rolling out cryptocurrency access for their fans.
The Sacramento Kings became the first NBA team to accept Bitcoin for promotional products as well as for tickets as early as 2014.
According to an excerpt from a Dallas Mavericks press release shared by industry sources on social media, the Mavs — like The Sacramento Kings — be using BitPay’s services to process their fans’ Bitcoin payments.
The investor has this summer voiced his opinion that Facebook’s Libra cryptocurrency is a big mistake and could even be dangerous. This month, he also said he believes Bitcoin is fundamentally similar to gold from an investor’s perspective.
Driving mass cryptocurrency adoption
Sports are becoming an increasingly fertile ground for bringing blockchain and cryptocurrency to a vast audience.
Just yesterday, Cointelegraph reported that the iconic American boxer Mike Tyson is leading a new blockchain-powered cross-entertainment venture and fan token ecosystem that aims to catapult aspiring young fighters to success.
Blockchain platform Socios.com has also sealed a range of partnerships with leading international soccer teams — including French club Paris Saint-Germain, Italy’s Juventus and the United Kingdom’s West Ham United — for a series of fan token offerings.
Bitcoin (BTC) Price Still Follows Stock-to-Flow Model Despite 48 Percent Correction
The Bitcoin price is still in line with the much-talked-about stock-to-flow model. Will the coin rally in 2020?
While Bitcoin’s massive 48 percent correction from its yearly high of $13,700 might cast doubt on the new bull market, it actually remains in line with the stock-to-flow (STF) model. Hence, it is not unreasonable to assume BTC could see another rally after the upcoming halvening if the model is valid.
The first scarce digital object
The STF model, which was aims to predict the price of the leading cryptocurrency based on its scarcity, was developed by Dutch crypto analyst Plan B.
Commodities with a high STF ratio (the existing stockpile divided by the annual production) are preferred by investors because they are gradually becoming more scarce. For example, gold, which boasts a market cap of $8.4 trln, has a
BTC’s STF ratio is currently at 25 but it will increase after the next halvening in May 2020. The miner reward for each block will be reduced from 12.5 BTC to just 6.25 BTC. It is expected that the ratio will reach 50, which would put “digital gold” very close to the yellow metal.
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“Almost entirely nonsense”
However, not everyone is amused by Bitcoin’s STF model. In early November, economist Alex Krüger called it “massively overhyped.”
Krüger downplays the importance of the supply side if the demand for Bitcoin is not factored in. He believes that demand is the most important factor that drives the BTC price.
He further doubled down on his criticism, claiming that the model is “almost entirely nonsense.”
Global Debt to be Worth $12 Million per Bitcoin by Year End
Bitcoin has achieved market capitalization close to some of the biggest corporations, ranging between $100 and $300 billion. But taken in proportion to the size of the world’s financial system, BTC may have a different valuation.
Debt Issuance Shows No Signs of Slowing
The bloated worldwide debt, fueled by extreme quantitative easing in the last decade, will reach $255 trillion by the end of the year, reported Reuters. The analysis of the Institute of International Finance estimates each person on the planet would carry $32,500 in debt.
“With few signs of slowdown in the pace of debt accumulation, we estimate that global debt will surpass $255 trillion this year,” the IIF said in a report.
Due to bitcoin’s limited supply, it is possible to chart the size of global debt-fueled finance in BTC terms. One bitcoin (as per current aggregated supply) will have to be worth over $12 million to describe the size of the worldwide debt.
The growth of debt comes from governments and government companies, as well as non-financial businesses. A debt bonanza analysis by Bank of America Merill Lynch shows that government debt has ballooned by $30 trillion, companies added $25 trillion, households $9
Instead of entering a decade of stagnation, central banks poured in liquidity to boost all sectors, leading to significant asset valuation growth. In spite of that, the financial sector carries debt which is 240% of the world’s gross domestic product.
Bitcoin Still Valued Low in Comparison to Size of Financial Sector
It is somewhat difficult to reconcile the idea of sound money, which BTC aims to be, with a debt-fueled economy. But in a way, the current market price of bitcoin reflects the fact that not all funds in circulation are sound, and that debt-based economic activity has been the chief driver of asset valuations in the past decade.
If bitcoin’s value was matched to real economic output, it would be about 60% lower, at around $4 million per BTC. But the presence of debt skews nominal prices.
This potential BTC price has far outpaced the historical highs of the coin. Based solely on the crypto market, bitcoin has peaked around $20,000 in Korea, and at $19,600 in other markets. Some predictions see bitcoin price going to $50,000 again. Experts admit BTC would have reached higher bids if the futures markets did not start swaying the price as well.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Sell the rallies– key theme ahead?
- Crypto markets uninspired by short-lived optimism.
- Top 3 widely traded coins to shed 4+% each on the week.
The world’s no. 1 digital coin, Bitcoin, is seen fading its tepid recovery from 2.5-week lows of 7,007, as we head towards the weekly closing. However, the second most traded cryptocurrency, Ethereum and Ripple, both cling to minor recovery gains so far this Sunday but the further upside lacks momentum, as sellers continue to lurk. The total market capitalization of the top 20 cryptocurrencies now stands at $195.25 billion, as cited by CoinMarketCap.
The top three coins are seen resuming last week’s downtrend into a fresh week ahead, with FXStreet’s Confluence Detector tool enabling to highlight key supports and resistances for better trading decisions.
BTC/USD: Bears headed to November lows
As explained here, Bitcoin failed to sustain it recovery near the $ 7,200 mark, as stiff resistances are aligned there, with the confluence of the previous high on the 4-hour chart and 23.6% Fibonacci Retracement (Fib) level of the weekly price action.
However, if the bulls manage to take out the last, the next resistance near the 7,265 region, the 23.6% Fib of the monthly price action. A break above which will expose the 10-day Simple Moving Average (DMA) at 7,332.
Given that the bears have returned, a test of the 2.5-week lows at 7,007 is back on sight. Note that the multi-week lows also intersect with the Pivot Point 1 Week S1 and Bollinger Band 1D lower, making it a critical demand zone. Should this support be breached, it is likely to accelerate the downside momentum towards 6,750 – Pivot Point 1 Week S2.
ETH/USD: Stiff resistances are packed just ahead of 144
Ethereum has pared the recovery gains, as a pack of resistances just ahead of the 144 handle restricts its every upside attempt. The resistance
A sustained break above the last will intensify the recovery momentum towards the next resistance aligned near 147.50, where the 23.6% 1M and 61.8% 1W coincide.
To the downside, the earlier support around 143, the intersection of the 38.2% Fib 1D and previous low on the 15-minutes sticks, is already breached, opening floors for further declines towards the 140 handle – the previous week low.
XRP/USD: Bearish bias intact while below 0.2225
Ripple is seen consolidating around 0.2170 levels, as the immediate upside remains capped near the 0.2180 region (38.2% Fib 1D/ 5-HMA).
A break above that level, the coin is likely to test the day’s high at 0.2197 beyond which the 0.2220-0.2225 supply zone will grab buyers’ attention. That level is the key confluence of the 200-HMA, 38.2% Fib 1W and 100 4-hour SMA.
On the flip side, the next support is directly seen near 0.2157, which is the previous week low. Sellers are likely to aim for the minor support of the Pivot Point 1W S1 at 0.2135 if the bearish momentum picks up pace.
See all the cryptocurrency technical levels.
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