Newsletter 50: Glass Half Full

7 mins read

“Fear is a reaction. Courage is a decision.” — Winston Churchill

The events in the past week has turned the world on its head. The increasing spread of Covid-19 (110,000 infected with worsening situations experienced in the west), the plummeting of Crude Oil futures (down to USD 30), has caused much havoc for the global community. Even gold has crossed USD 1,700!

In this confusion there will always be opportunists looking for ways to profit. The past 24 hours has seen futures contracts for BTC increase by at least 50% in trading volume and shorts taking the day with BTC diving from USD 9000 to 8000 (at the time of writing). So with the markets in turmoil, it always pays to look at the fundamentals of the economy and the investments made, and apply a time scale to it. Traders with larger margins around the globe WILL find entries where others are unable to offload their positions due to poor risk management and capital protection — “the time to buy is when there is blood in the streets”.

The cryptocurrency industry has also seen its fair share of highlights in the past week.

Germany; the German Parliament passed a bill which will allow German banks to both sell and store cryptocurrencies. The new law will take effect January 1, 2020, though certain requirements must first be met through the country’s financial regulator. Germany’s financial regulator recently released guidelines classifying cryptocurrencies as financial instruments. They are digital representations of a value that has not been issued or guaranteed by any central bank or public body and is not necessarily linked to a currency specified by law and that does not have the legal status of a currency or money, but is accepted as a medium of exchange by natural or legal persons and can be transmitted, stored and traded electronically.

France; a court has decided that Bitcoin is money, the first time a court in France has issued such a ruling. The ruling had come about due to a dispute between French cryptocurrency exchange Paymium and alternative asset investment firm BitSpread. Paymium loaned 1,000 BTC to BitSpread in 2014.When holding the leased 1,000 BTC, BitSpread also got hold of 1,000 Bitcoin Cash (BCH) when the hard fork creating the altcoin was carried out in 2017. As part of its ruling, it concluded that Bitcoin was a fungible asset, just like money.

India; the Supreme Court of India struck down the Reserve Bank of India’s (RBI) ban on financial institutions providing banking services to cryptocurrency businesses. However, there is still a bill that was put forth last year that bans cryptocurrencies. One of the reasons the Supreme Court supported the industry was because there was “no law banning virtual currencies yet,” which implies the verdict would not stand once there is such a law.

Cambodia; the National Bank of Cambodia (NBC) plans to launch Project Bakong. It is a central bank digital currency (CBDC) that has the support of 11 banks locally to enable the unbanked the ability to receive and transfer funds within the local populace in an effort to boost the economy by way of efficiencies and inclusion. Project Bakong is expected to be launched in a few months. More on CBDCs in a coming newsletter!

CBDCs are expected to be the next wave in the digital economies of the world and will probably be the talk of the town for 2020.

 

 

 

TRY OUR TESTNET TODAY!

If you just saw your testnet exchange account reset to 10 playBTC, then you’re on the latest version — March 5! Start your training today and learn how to trade perpetual futures using the BitOrb Exchange.

Have you tried our multi-long and shorts trading interface?

In a turbulent day of Bitcoin price movement (like today), on a typical crypto futures exchange you may have a net LONG position and thus you’re in the red! That said, you have enough MARGIN to keep your LONG position ACTIVE and perhaps you’re within a 10% or less STOP-LOSS. Now you want to open a SHORT, however doing so would result in closing your net position.

Two options are now available if you trade on the BitOrb Exchange:

  1. You are engaging stop-loss by closing your long position and going short.
  2. You want to keep your long position (for now), and go short.

In BitOrb, the multiple orders are kept separate and thus “easier” for you as a trader to decide what to do. To not accept a loss is just part of human nature. With BitOrb, you can trade the opposite direction (and profit) without realising a loss first.

by

Hoong-Teng Lim

10th March 2020

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