Did American Express Get Caught Spreading ‘Anti-Crypto Propaganda’?

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US multinational financial services corporation American Express (AMEX) has appeared to join the traditional finance entities publicly criticizing cryptocurrency. Energy Usage: Fact Or FUD? As social media users noted October 15, the company recently “promoted” a post by Bloomberg’s TicToc Twitter-based news portal which claimed the cryptocurrency industry “is using more energy than all the world’s electric vehicles.” Beneath the post, which consists of a 100-second video with various figures purporting to compare Bitcoin transactions

The post Did American Express Get Caught Spreading ‘Anti-Crypto Propaganda’? appeared first on Bitcoinist.com.

Rwandan Government to Use Blockchain Tech to Track Conflict Metal Tantalum

Africa Apple

Rwanda’s tantalum mining traceability will be improved by British blockchain startup Circulor in tandem with Rwanda’s government.

Rwanda has partnered with a U.K.-based blockchain startup to trace the mining of the conflict metal tantalum in the country, according to the startup’s press release, published Oct. 16.

Rwanda is the world’s leading producer of tantalum, the mineral used in consumer electronics such as smartphones and computers. By using blockchain technology in partnership with startup Circulor, the Rwandan Mining, Petroleum and Gas Board plans to make the production of tantalum more transparent.

The press release states that blockchain tech implementation will help “companies comply with the internationally mandated efforts to eradicate sources of funding for conflict minerals.”

According to Reuters, mining company Power Resources Group (PRG) — whose listed partners include Kemet, an Apple supplier — has run a pilot for tracing the metal and is now “using the production system.” PRG’s CEO, Ray Power, told Reuters that he has been hearing “criticisms on traceability” for minerals since 2015.

The companies have partnered to use Circulor’s blockchain platform, built on the Hyperledger Fabric, an open source enterprise-focused digital ledger software hosted by the Linux Foundation, for tracing the tantalum’s supply chain.

Douglas Johnson-Poensgen, Circulor CEO, underlined that the new technological application will “dramatically reduce costs for miners who current shoulder a disproportionate share of the cost of compliance.” He also added:

“Our blockchain platform will empower consumers to understand where the materials in the products they buy come from and also make it harder for materials that are not ethically sourced to pass through the supply chain.”  

This spring, Circulor had partnered with the German car manufacturer giant BMW “to track so-called ‘clean’ cobalt supplies in order to ensure their ethical provenance,” Cointelegraph reported March 6.

Also this spring, De Beers, the global diamond producing giant, had announced the use of blockchain technology for digital tracking diamonds “from mine to retail.” The company’s goal was to increase efficiency in the supply chain and to support consumer and public trust in De Beers’ non-conflict diamonds production.

UK-Based Industry Group Develops Blockchain Tool to Track Firms’ Sustainable Commitments

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The UK-based industry body RFI Foundation plans to develop a blockchain tool to track firms’ sustainable commitments.

A U.K.-based industry body for the responsible finance sector revealed plans to introduce a blockchain tool to monitor firms’ sustainable commitments, Reuters reports Wednesday, Oct. 17.

The Responsible Finance & Investment (RFI) Foundation is developing a blockchain-powered tool to track companies’ sustainable commitments and to detect those entities who do not comply with their ethical credentials.

The new system is expected to enable the industry group to reduce so-called “greenwashing,” a practice that implies firms claiming that they are more ethical or ecologically friendly than they are in fact.

The RFI Foundation’s initiative comes as a part of a plan to expand activity beyond its main centers in Europe and North America, with governments such as Indonesia releasing green bonds for the first time in 2018. The industry group will collaborate on the project along with 23 other participants in order to introduce the tool in the 2019, chief executive Blake Goud revealed to Reuters.

Goud claimed that while a number of financial institutions are “taking advantage of the opacity of commitments and actions,” the new blockchain-powered system will allow them to identify companies’ practices in responsible finance “in real time,” as well as will assist new entrants to the sphere.

According to Reuters, other participants include Belgium-based European Partners for the Environment and U.S.-based Magni Global Asset Management.

In April 2018, 22 countries, including 21 EU member states and Norway, signed a declaration to set up a European Blockchain Partnership in a move to become leaders in digital technologies and to provide high standards of blockchain uses in Europe, as well as to improve the quality of cross-border standards and regulatory reporting.

On Oct. 14, Cointelegraph reported on the increasing size of the European Blockchain Partnership — with latest entrant Italy signing the declaration in late September — underlining its commitment to assist in identifying an “initial set of cross-border digital public services” that can be potentially implemented through the European Blockchain Services Infrastructure.

UK-Based Industry Group Develops Blockchain Tool to Track Firms’ Sustainable Commitments

Adoption Belgium

The UK-based industry body RFI Foundation plans to develop a blockchain tool to track firms’ sustainable commitments.

A U.K.-based industry body for the responsible finance sector revealed plans to introduce a blockchain tool to monitor firms’ sustainable commitments, Reuters reports Wednesday, Oct. 17.

The Responsible Finance & Investment (RFI) Foundation is developing a blockchain-powered tool to track companies’ sustainable commitments and to detect those entities who do not comply with their ethical credentials.

The new system is expected to enable the industry group to reduce so-called “greenwashing,” a practice that implies firms claiming that they are more ethical or ecologically friendly than they are in fact.

The RFI Foundation’s initiative comes as a part of a plan to expand activity beyond its main centers in Europe and North America, with governments such as Indonesia releasing green bonds for the first time in 2018. The industry group will collaborate on the project along with 23 other participants in order to introduce the tool in the 2019, chief executive Blake Goud revealed to Reuters.

Goud claimed that while a number of financial institutions are “taking advantage of the opacity of commitments and actions,” the new blockchain-powered system will allow them to identify companies’ practices in responsible finance “in real time,” as well as will assist new entrants to the sphere.

According to Reuters, other participants include Belgium-based European Partners for the Environment and U.S.-based Magni Global Asset Management.

In April 2018, 22 countries, including 21 EU member states and Norway, signed a declaration to set up a European Blockchain Partnership in a move to become leaders in digital technologies and to provide high standards of blockchain uses in Europe, as well as to improve the quality of cross-border standards and regulatory reporting.

On Oct. 14, Cointelegraph reported on the increasing size of the European Blockchain Partnership — with latest entrant Italy signing the declaration in late September — underlining its commitment to assist in identifying an “initial set of cross-border digital public services” that can be potentially implemented through the European Blockchain Services Infrastructure.

UK-Based Industry Group Develops Blockchain Tool to Track Firms’ Sustainable Commitments

Adoption Belgium

The UK-based industry body RFI Foundation plans to develop a blockchain tool to track firms’ sustainable commitments.

A U.K.-based industry body for the responsible finance sector revealed plans to introduce a blockchain tool to monitor firms’ sustainable commitments, Reuters reports Wednesday, Oct. 17.

The Responsible Finance & Investment (RFI) Foundation is developing a blockchain-powered tool to track companies’ sustainable commitments and to detect those entities who do not comply with their ethical credentials.

The new system is expected to enable the industry group to reduce so-called “greenwashing,” a practice that implies firms claiming that they are more ethical or ecologically friendly than they are in fact.

The RFI Foundation’s initiative comes as a part of a plan to expand activity beyond its main centers in Europe and North America, with governments such as Indonesia releasing green bonds for the first time in 2018. The industry group will collaborate on the project along with 23 other participants in order to introduce the tool in the 2019, chief executive Blake Goud revealed to Reuters.

Goud claimed that while a number of financial institutions are “taking advantage of the opacity of commitments and actions,” the new blockchain-powered system will allow them to identify companies’ practices in responsible finance “in real time,” as well as will assist new entrants to the sphere.

According to Reuters, other participants include Belgium-based European Partners for the Environment and U.S.-based Magni Global Asset Management.

In April 2018, 22 countries, including 21 EU member states and Norway, signed a declaration to set up a European Blockchain Partnership in a move to become leaders in digital technologies and to provide high standards of blockchain uses in Europe, as well as to improve the quality of cross-border standards and regulatory reporting.

On Oct. 14, Cointelegraph reported on the increasing size of the European Blockchain Partnership — with latest entrant Italy signing the declaration in late September — underlining its commitment to assist in identifying an “initial set of cross-border digital public services” that can be potentially implemented through the European Blockchain Services Infrastructure.

US CFTC Official Tackles Accountability in an Era of Smart Contracts

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The CFTC’s Brian Quintenz has addressed the question of accountability in an era of disintermediated finance and smart contracts.

The U.S. Commodity Futures Trading Commission (CFTC)’s Brian Quintenz has addressed the question of accountability in an era of disintermediated finance and smart contracts. The commissioner made his remarks at the 38th Annual GITEX Technology Week Conference in Dubai Tuesday, Oct. 16.

Broadly, the commissioner proposed that when it comes enforcement actions, not only users, but the coders themselves may be held to account. Quintez explained:

“The appropriate question is whether these code developers could reasonably foresee, at the time they created the code, that it would likely be used by U.S. persons in a manner violative of CFTC regulations.”

Quintenz framed his discussion by noting the complications that arise when applying traditional legal paradigms to “the disintermediated world of blockchain,” emphasizing the challenges that the emerging sector poses to the CFTC’s particular role, which is intermediary-focused and centers on preserving market integrity through oversight.

In the case of disintermediated finance, however, the key players are instead the core developers of a given blockchain network, its miners and users, all of whom operate in an “anonymous, decentralized” framework.

To tackle the regulatory concerns raised by this context, Quintenz focused in particular on smart contracts, which function on a blockchain and are programmed to interact according to binding, pre-specified rules.

As Quintenz noted, these contracts are “self-enforcing,” and “operate without further intervention.” However, he rebutted the well-known crypto adage “code is law,” arguing that even though smart contracts complicate existing frameworks and the question of accountability, they nonetheless fall subject to regulations and particular legal precedents.

In many cases, he argued, the basic nature of such contracts can be identified as having the “essential characteristics” of traditional derivatives products: they may resemble a swap, or have “exchange-like functions by facilitating trading.”

One such example would arise with individuals who develop “predictive data about future financial events, like a stock’s performance […] [and] offer their data for purchase via smart contracts.”

The offering of this data could fall under regulators’ purview either through being deemed “investment advice,” or even, “given the anonymity of the predictions,” being considered to be “nefariously” enabling ”insider trading.”

In other cases, smart contract protocols enable “individuals to bet on the outcome of future events, like sporting events or elections” using crypto, which he suggested can in some cases resemble what the CFTC considers to be a “‘prediction market,” noting that:

“In the past, the CFTC has generally prohibited prediction markets as contrary to the public interest, only permitting them in limited circumstances when it has found that they operate on a small-scale, non-profit basis, and serve academic purposes.”

As reported yesterday, former CFTC chairman Gary Gensler emphasized that most tokens sold through Initial Coin Offerings (ICOs) should be classified as securities, and be brought under the regulatory purview of the U.S. Securities and Exchange Commission (SEC).  

Blockchain Startup Offering ‘Dynamic Fees’ To Help Users Save Money On Transactions

ARK Arkecosystem

A blockchain company wants to make its technology so easy that “consumers do not know they are using blockchain.”

A blockchain-driven startup believes that blockchain technology has the potential to be more than a “one trick pony designed for investors” – setting the objective of creating cutting-edge technology for fast transactions, and delivering “practical services for real people.”

According to ARK, its entire ecosystem has been built around encouraging the mass adoption of cryptocurrency through a user-friendly platform. The company says its team is determined to ease consumers into blockchain by creating easy-to-use tools and products that gradually increase awareness and general knowledge about the opportunities that blockchain technology provides.

Among ARK’s distinctive features is a development called SmartBridge, which enables its blockchain to interact with any other popular networks, including Bitcoin and Ethereum. “Continuous risk analysis and internal recurring penetration testing is constantly being carried out” to assuage fears about security.

Overall, the company hopes to make blockchain creation and adoption as easy as making a website with Wordpress.

Desktop, mobile, and hardware wallets

ARK believes one of its strengths is its easy-to-use wallets. Syncless, paving the way for “very fast” transactions, they are compatible with all ARK based blockchains and can be customized with plugins and personalized to fit users. Ledger Nano hardware has been built into the wallets for added security.

A major hurdle to cryptocurrencies becoming more popular in public circles has been the risk of transactions being delayed because of congested systems. ARK says its network resolves this by being “one of the fastest in the industry” – with block times being completed in just eight seconds.

ARK also believes that it has managed to protect itself against any potential issues when it comes to scalability in the future. Through the SmartBridge functionality, the platform says it is “able to offload non-essential functions to hundreds of parallel chains.” Therefore, making the team believe that this paves the way “for great scalability, while keeping the main ARK blockchain lean and fast.”

The power of dynamic fees

Another concept put forward by the ARK Network is dynamic fees. This makes ARK the first DPoS based blockchain to achieve this feat, the company says. Here, the speed with which a transaction is processed will hinge upon how much the consumer is willing to pay in terms of fees. The startup hopes that this will deliver financial flexibility to the community without detracting from a “seamless user experience” – and the platform says it will be reviewing this feature’s progress and make tweaks wherever necessary. In short, it means someone who needs their crypto in a hurry can jump to the front of the queue by paying a higher fee, while someone watching their pennies can pay less for transfers as long as they are willing to wait a little longer for it to be processed.

ARK’s website comes complete with detailed updates of how far along it has come in completing certain milestones – as well as providing a due date. For example, at the time of this writing, it was 84 percent through a “total overhaul” of the ARK Core – paving the way for a plethora of new features, including a higher number of transactions per second. It is expected to be released later in October or early November.

 

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

Indian Internet ‘Blockchain Committee’ Attracts Reps From Zebpay, MasterCard, Microsoft

Blockchain Cryptocurrency Exchange

India is getting a dedicated group for exploring blockchain expansion courtesy of the Internet and Mobile Association of India.

The Internet and Mobile Association of India (IAMAI) is forming a dedicated focus group for blockchain exploration made up of both big business and cryptocurrency players, Indian daily newspaper Economic Times reported Monday, Oct. 15.

Confirmed in a tweet Tuesday, the IAMAI, whose remit is to “expand and enhance” the online and mobile sector, will use its “Blockchain Committee” to “identify opportunities and challenges and work with government, industry and startups” to develop a blockchain “ecosystem.”

The move comes amid testing times for cryptocurrency in India, with the country’s supreme court still deliberating on the legality of the Reserve Bank of India’s (RBI) cryptocurrency banking ban it instigated in July.

Commenting on the plans, Tina Singh, chair of the newly-founded Blockchain Committee, said the technology was nonetheless “undoubtedly the technology of the future,” noting:

“The IAMAI Blockchain Committee will focus on creating dialogue between all stakeholders; curate and create content to aid skill development and move towards creating a participative economy with the usage of blockchain.”

Participants in the committee include major Indian cryptocurrency exchange ZebPay, itself a conspicuous victim of the central bank’s ban, having halted its exchange offering altogether late last month.

Other parties include representatives from MasterCard, Microsoft and IBM.

The RBI itself is also “researching” blockchain, sources reported in August, as part of an assessment process in which it would “check what can be adopted and what cannot.”

Bitcoin Volatility Hits Record Low, Calm Before a Major Short-Term Rally? Experts Weigh In

Bakkt Bitcoin

Bitcoin volatility hits all-time low, which could lead Bitcoin to initiate a major rally and bottom out at $6,000

Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, you should conduct your own research when making a decision.

In the beginning of October, Bitcoin achieved a 17-month low volatility rate, recording its highest level of stability since mid-2017.

Bitcoin Price and Market Cap in 2018

Bitcoin has started to experience a noticeable decline in its volatility during a period in which the volume of the dominant cryptocurrency achieved a new yearly low. Thus, the volume of Bitcoin dropped from $4.2 billion to $3.2 billion on October 7, by more than 23 percent. Since then, the volume of BTC has recovered substantially, back to $4.2 billion, but it still remains substantially lower than previous weeks. The overall decline in trading activity in the cryptocurrency exchange market due to the uncertainty in the short-term price trend of Bitcoin is said to have contributed to the significant drop in its rate of volatility.

Mike McGlone, a commodity strategist, stated that as the cryptocurrency market matures, the rate of Bitcoin volatility will continue to rapidly decline. He explained that an emerging asset class often sees a large discrepancy in its daily price movements and volatility in volume until it finds strong infrastructure to support and solidify its market.

“This is a maturing market, so volatility should continue to decline. When you have a new market, it will be highly volatile until it establishes itself. There are more participants, more derivatives, more ways of trading, hedging, and arbitraging.”

Since August 9, the price of Bitcoin has remained relatively stable in the range between $6,400 and $6,800. Apart from one occasion in mid-September during which BTC surpassed the $7,000 mark, the asset has shown no signs of solid momentum, mostly due to the lack of volume in the cryptocurrency exchange market.

On October 6, the cryptocurrency exchange market recorded its lowest daily volume in over 12 months, leading traders to be concerned regarding the short-term trend of the market.

Historical lows in volatility: their impact on the crypto market

The decline in the volume and volatility of Bitcoin can have a negative impact on the short-term price trend of the asset. But historically, BTC tended to experience a dip in volume and volatility before initiating large rallies on the upside.

As seen in the volatility chart of Bitcoin, dating back to 2012, provided by Woobull, a cryptocurrency market data platform operated by technical analyst Willy Woo, Bitcoin achieved one of its lowest volatility rates in October 2013.

Bitcoin 60-day volatility

Image source: Woobull.com

Subsequent to demonstrating a few months of stability, by the end of 2013, the price of BTC increased from around $30 to $1,000, by more than 30-fold within a two-month period. The stability of BTC allowed investors in the market to initiate an accumulation phase in a low price range, enabling more investors to enter the market and acquire BTC.

As prominent venture capital investor Garry Tan, who invested in Coinbase and a group of startups, worth more than $20 billion collectively, said, a low price range helps investors enter a new market or an asset class with significantly less risk:

“The crypto winter generally makes it safer for super-long-term oriented Yale-model institutions to enter at a price that isn’t dangerous. You know what is scary? Investing and then immediately seeing an 80% drop. That is hard to recover from.”

Bitcoin is unlikely to experience a surge in its price in the magnitude of its previous rallies including the 30-fold growth it achieved in 2013. But, in the long-term, stability could allow BTC to establish legs and build stronger support levels in its low price range, increasing the probability of both short-term and mid-term rallies.

Bitcoin price and MArket Cap in 2013

Why the Bitcoin market is not reacting to positive developments

Currently, the cryptocurrency market is not reacting to many of the positive developments that have emerged in the sector over the past few months.

In a period of three months, NYSE, Microsoft, and Starbucks have announced the launch of regulated cryptocurrency brokerage Bakkt, to better institutionalize the cryptocurrency market. Coinbase and BitGo received the approval of regulators to operate as trusted custodians to service institutional investors. Citigroup and Goldman Sachs have announced their plans of establishing crypto-focused custodian solutions in the short-term.

$30 billion brokerage giant TD Ameritrade recently backed the launch of ErisX, the first regulated multi-crypto futures market with Bitcoin, Ethereum, Bitcoin Cash, and Litecoin support. Seba, a cryptocurrency bank in Switzerland, is expected to obtain a banking license from the Swiss Financial Market Supervisory Authority (FINMA) by the end of October.

It is entirely possible, upon the recovery of Bitcoin’s volume and trading activity in the cryptocurrency exchange market, that the market will begin to respond to most of the progress that has been made in the sector over the last three months.

Stability of Bitcoin and what it means for the market

Bitcoin has not demonstrated such a high level of stability in a long period of time. Considering that BTC has continuously demonstrated higher lows throughout the past 30 days, meaning that BTC has consistently recovered beyond its previous high point, it is more likely for BTC to eye a movement to the upside.

Bitcoin Price Over the Last Month

Danny Les, cryptocurrency analyst, stated that extended periods of stability and consolidation often lead to a strong upside movement.

“Any extended period of consolidation or ranging is usually the run up to a fairly strong move. That said, opinion is mixed on whether that move is up or down. When you’re analyzing charts, generally higher highs and higher lows are the indicators of a positive move up. Lower highs are probably not the best thing to pin hopes to in expectation of a rally. However, this is Bitcoin so [it is unpredictable].”

Many analysts and traders in the cryptocurrency sector have echoed this sentiment, stating that in hindsight, the bull run of BTC will be strikingly obvious. But, the low volume of the dominant cryptocurrency and the lack of momentum on major cryptocurrencies, still poses a concern for traders in the space. Les added:

“Unless already comfortably in profit, a drop in volume is never something one wants to see when in a position. The overall sentiment attached to crypto probably isn’t the most positive. Bitcoin effectively nose diving since last years all-time high has created a steady wave of retail interest decline across all crypto markets.”

Unprecedented stability since August: $6,800 is a major resistance level

Billionaire investor Mike Novogratz has emphasized $6,800 as a major resistance level for Bitcoin throughout the past month, and if BTC comfortably surpasses that level, then it will be able to eye resistance levels in the $7,000 and $8,000 region.

If Bitcoin breaks out of the $6,800 mark relatively quickly, Novogratz said it is possible for BTC to demonstrate a 30 percent increase in price by the end of the year.

“Thirty percent – there’s some key levels. You’ve got to take out $6,800 and if that breaks, you’ll go up to $8,800, $9,000 and if that breaks, it’s $10,000. Those kind of numbers make sense to me by the end of the year. You’re not going to see the massive run until the institutions actually start buying a lot. And the architecture is being put in place now. It’s going to be announced in the next few months. But then it’ll take a little bit of time to go through investment committees and whatnot.”

The issue is that since August 9, Bitcoin has consistently tried to break out of the $6,800 resistance level and failed in most of its attempts. It recovered beyond $7,000 on September 4, but it struggled to sustain its momentum and fell back down to the mid-$6,000 region.

Les explained that it is more likely for Bitcoin to experience a shakeout prior to a major rally on the upside. BTC has to experience a promising increase in its volume and price to ensure that 2019 begins with a positive sentiment:

“I suspect that there will be more blood before any kind of serious rally up. Volume and price, certainly in Bitcoin’s case need to pick up before we get to near Christmas, otherwise we will see the year out with a very negative sentiment attached.”

Is it the right time to start accumulating Bitcoin?

In late August, when the price of BTC was still at around $6,600, ShapeShift CEO Erik Voorhees stated that the bear market is not over yet but it is a viable period for new investors in the space to start accumulating Bitcoin.

Voorhees stated the rate of collapse of the crypto market has slowed down considerably and it is highly unlikely for BTC to decline far below its current price range.

BTC has dipped below the $6,000 mark on three occasions throughout the past nine months. BTC recovered relatively quickly from the $5,900 region, leaving a short window for investors to acquire the dominant cryptocurrency at a price below the $6,000 level.

BTC/USDT

Image source: Cryptowat.ch

Given the strong support level of Bitcoin at $6,000 and many of the positive developments the sector has seen, Voorhees stated that it is an appropriate time to start accumulating BTC.

According to Les many platforms and companies in the cryptocurrency sector are continuously working on building the infrastructure that is necessary to support the next wave of users, investors, and consumers:

“Many platforms are ignoring talk of token prices and are just quietly working in the background to fulfil their roadmap objectives. In 2019, I think will be a very interesting year for us all. Mainstream adoption of the technology will start to become apparent and investment methods into the market will become much more in line with traditional markets. The future is very bright, however there has to be a bit of darkness beforehand.”

TD Ameritrade, the fifth largest brokerage in the US, stated that it sees sufficient demand from investors in both the crypto and financial sector to be comfortable with its investment in the cryptocurrency sector.

Why bulls are more likely to win over bears in 2018

Technical indicators, such as Williams’ Percent Range of Bitcoin, show that it is more bear-biased as of October 2018. However, as Don Alt, a cryptocurrency trader supposed, bulls have leverage over the bears which are currently dealing with a market with low volume and activity.

The market has also demonstrated intense seller fatigue throughout September and October, making it unlikely for a large downside movement to occur in the weeks to come. It is possible for BTC to be stagnant in a low price range but the probability of the dominant cryptocurrency dipping below the $6,000 support level is low.

Thus, a final shakeout could be in play prior to a major mid-term rally. Generally, most analysts agree that the low rate of volatility Bitcoin has shown throughout the past three months, and particularly in October, will help fuel the next mid-term rally of BTC.

Pantera Capital Exec: Cryptocurrency Market Prices Could Increase Tenfold by 2020

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Cryptocurrency market scaling improvements could see prices ten times higher than now, says co-CIO of Pantera Capital.

Cryptocurrency markets could increase ten times over from 2020, blockchain investment firm and hedge fund Pantera Capital’s co-CIO told Bloomberg Tuesday, Oct. 16.

Speaking in an interview, co-CIO Joey Krug said that scalability improvements for Bitcoin (BTC) were essential to spark a shift in the deflated prices seen throughout this year. He told the network:

“These are all markets, and so if you don’t have scalability, you don’t have market makers.”

The comments came days after new developments on the institutional trading side of Bitcoin markets, with Fidelity Investments revealing it was testing a regulated custody solution for investors and hedge funds.

While reactions from finance figures such as Galaxy Digital’s Michael Novogratz were positive, the news failed to shift market sentiment or prices in Bitcoin.

For Krug, this is because sentiment requires signs of adoption of Bitcoin in the current climate, which in turn depends on capacity improving. To that end, however, the executive voiced doubts about Bitcoin itself “ever” being able to compete with payment networks Visa and MasterCard.

“I don’t know if that will ever happen for Bitcoin, but I do think we’ll see blockchains as fast as Visa or MasterCard within the next couple of years,” he continued, adding that such improvements could nonetheless spark “10x” price increases in two years’ time.

Developers continue to work on improvements for the number of transactions Bitcoin can handle, principally through off-chain solutions such as the Lightning Network.

The downturn in crypto markets since January 2018 has meanwhile meant Pantera has seen its fortunes tested in recent months, earlier in October releasing statistics showing its Digital Asset Fund was down over 40 percent since its inception.