Daily Bitcoin News Update
For the second consecutive week, Bitcoin prices are struggling to breach the $9,000 mark. It seems like cryptocurrencies are still stuck in purgatory. The massive crash of 2018 is continuing to haunt investors. Nonetheless, one after another, bits of good news keep pouring in and reinvigorating our faith in Bitcoin.
Just yesterday, Bitcoin unlocked another achievement. This time, in a new market. Bitcoin has earned official recognition as a legitimate investment asset class in the Middle East.
A trading company in Dubai, Regal RA DMCC, has become the first in the Middle East to earn a trading license from the authorities to trade in Bitcoin and some other cryptocurrencies.
Regal RA has predominantly been a gold trader and will be trading Bitcoin just like it does the yellow precious metal. The company will be promoting Bitcoin to its clients as an alternate store of value, allowing them to buy and sell the crypto with ease and security. All holdings will be transferred to cold wallets and the cold wallets will be stored in the same vaults as gold.
The firm views Bitcoin as more of a commodity than a currency and welcomes regulations, which may pave the way for secure trading in cryptocurrencies.
Ksenia Kiseleva, manager of the Regal RA Dubai office, said she has also been buying Bitcoin and altcoins for her personal portfolio. “We love them. Both on a company and a personal level. It’s exciting to be in this asset class, and we really hope that we create a more regulated environment to be fully compliant and audited for the benefit of the customer.” (Source: “Dubai’s first licensed Bitcoin trader: ‘It’s a commodity not a currency’,” Arabian Business, February 13, 2018.)
It is understandable why the Middle Eastern trader has viewed Bitcoin for a purpose quite different from the one it was initially created for.
Bitcoin’s utility as a monetary unit of exchange has been affected because of its slowing network. High transaction fees and longer processing times have rendered it impractical to use for day-to-day payments. It’s possibly one reason why Bitcoin prices continue to move sideways.
Chart courtesy of TradingView.com
Until Bitcoin is upgraded to the “Lightning Network” (which is expected to happen later this year), chances are that investors will continue to view it only as a commodity fit for storing value.
Regardless, demand for this digital asset is going nowhere but up as Bitcoin enters this tax-free market rich in oil money.
Bitcoin’s price journey from $8,000 to $20,000 last December was the classic manifestation of a price bubble. It was destined to burst from the beginning.
Prices are now in more stable territory, and a steady ascension from here would foster an even more stable trading environment for investors. With Bitcoin reaching new milestones each passing day, we expect Bitcoin prices to maintain their stride up north. Our Bitcoin price forecast is bullish, with a BTC price target of $15,000.