Bitcoin takes breather at $8,200 while Venezuela, Iran to launch national cryptos

Maduro government is launching a national crypto backed by the Petro which in turn is backed by Venezuela's oil reservesMaduro government is launching a national crypto backed by the Petro which in turn is backed by Venezuela's oil reserves

The bitcoin price is consolidating nicely at $8,200 having seen explorations above 8,400 rebuffed for now, while Venezuela is readying launch of a national cryptocurrency

Market participants will be pleased with developments as the price shooting up too fast before secure foundations were in place was a worry.

With volumes rising those foundations appear to be getting stronger with each passing day.

Venezuela replacing bolivar with national crypto

Other news sees Iran and Venezuela set to launch national cryptocurrencies in response to collapsing fiat currencies. Venezuela is suffering inflation running at 1 million per cent on the bolivar. Venezuela launched the Petro crypto pegged to the country’s oil reserves in April (presale February) but the success or otherwise of the currency is not known. The new national currency – the Sovereign Bolivar –will be linked to the Petro and goes into circulation on 20 August and with five less zeros than the current bolivar.

Another commission-free trading app

Coming on top of Coinbase’s gift card product announcement, a new entrant has arrived in the commission-free trading space called Voyager. It has both Coinbase and Robinhood in its sights.

Unlike Robinhood, Voyager is planning to offer markets in the top 25 coins, giving investors are far wider choice. Voyager also plans to be a price discovery service, offering its users the best price from a number of exchanges at any given time.

Although Robinhood and Voyager are eschewing the typical way in which crypto exchanges make money by charging a fee on every transaction, touting their services as “free”, these companies are able to claw back revenue in the spread between the bid and offer price.

Bitcoin to explode higher

Spencer Bogart, a partner at Blockchain Capital sees bitcoin posed to either rocket higher or take a steep fall, with the balance perhaps skewed to the former at this juncture.

“Bitcoin is a tinderbox, right now that is waiting for reasons to go a bit higher whether its global wars or trade wars, whether it is an ETF approval, etc. I think any number of catalysts can send Bitcoin exploding higher.”

Bogart thinks regulatory risks are on the back burner for now with any regulations that do come forward  more likely to accomodating to the future development of the asset class.

“The cat’s already out of the bag, innovation is going elsewhere if the SEC doesn’t get on board soon.”

He is also not a fan of altcoins, which he sees as mostly “over-promising and under-delivering”.

About the Author

Gary McFarlane
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK's second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane

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