Category: Cryptonews - Page 4

Visa applies for patent for a digital currency based on the Ethereum blockchain

The United States Patent and Trademark Office (USPTO) released a patent application that Visa filed to create a digital currency. The system is described as a method to digitize fiat currencies issued by central banks, through a central computer and with blockchain technology.

The Visa application was originally submitted on November 8, 2018. However, it was made public on May 14, with the authorship of Simon J. Hurry and Alexander Pierre. The document proposes a system run by a central entity computer, which receives requests to generate a digital currency registered on a blockchain. The application includes the serial number and denomination of a fiat currency, for example a banknote or a metal coin.

Bitcoin fell more than USD 2000 in one day: why is it so volatile?

by rcanessa

The cryptocurrency can only become an accepted form of payment if its volatility stabilizes, but that depends on a constant conviction that it represents the future of the money

The volatility of Bitcoin frightens many potential users of the cryptocurrency. This is due to the close relationship between volatility and risk: the higher the level of volatility, the greater the risk associated with the asset. In the same way, however, risk can be a source of attraction: the more volatile the price of an investment, the higher the yield – or loss – that can be obtained from it. These general rules also apply to Bitcoin.

Bitcoin is considerably volatile compared to other assets, but much less volatile than it was before. Over time, fluctuations in the price of the main cryptocurrency have been decreasing in percentage terms. On average, the daily volatility rate (how much the price changes per day) has been mostly below 5% since 2015, compared to an average volatility of 1.2% for gold. In 2016, Bitcoin was less volatile than Twitter shares, and just as volatile as oil.

However, Bitcoin continues to register violent price oscillations. On Wednesday, the cryptocurrency fell USD 2,041 from a daily maximum (and annual peak) of USD 13,880 to USD 11,200, the biggest daily price movement since January 2018.

Expiration of Bitcoin CME futures generate volatility in the markets

by rcanessa

In past periods, the maturity of Bitcoin CME futures resulted in price movements
CME recorded record volumes in the month of May, moving more than 33,000 contracts.

On Friday, May 24, some 2,710 contracts expired for the equivalent of 13,500 bitcoins settled by the CME. The maturity of these futures contracts increased the volatility of prices in the Bitcoin market. Taking as reference the past values, it can be observed that in the days following this type of events, the prices of the cryptocurrency with the highest capitalization in the world begin to move.

Bakkt Bitcoin futures platform will start testing in July

by rcanessa

- The company will offer different types of future contracts in July.
- A go-ahead from customers and regulators could speed up its launch.

The Intercontinental Exchange (ICE) subsidiary, Bakkt, is still in the process of developing its futures platform aimed at institutional capital. Through a post on Medium, the company announced on Monday May 13 the development of user acceptance tests (UAT, for its acronym in English) for bitcoin futures and crypto custody, which are expected to begin in July of this year.

The Atlanta-based company said it is continuing to work in partnership with the Commodity Futures Trading Commission (CFTC) of United States to build a platform that meets customer requirements in terms of clarity and stability, but that also conforms to all standards of US federal regulations. n this sense, the objective is for the Bakkt bitcoin futures to comply with all regulations and at the same time be a really attractive product for institutional investors.

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