Bitcoin Bitcoin Could See Credit Card Companies Sweating, Says Bank Report Published 2 years ago on September 9, 2016 By Samburaj Das The Money Makers Club now has 6 of 15 available seats. Learn more here! A recently published bank report by Spanish banking giant Banco Santander is foreseeing a future wherein – if bitcoin is adopted in the mainstream – the fundamental business model of credit and debit card companies could be uprooted. A research report [PDF] was published earlier this week by Santander Investment Securities (SIS), a subsidiary owned by the Spanish banking group. The report and its findings came after an August meeting which saw SIS researchers, local investors and most notably, Mercado Bitcoin – the largest bitcoin brokerage in Latin America. The bank-sanctioned report, titled “To Bitcoin or Not to Bitcoin?” assess what bitcoin could have in store for banks and financial services in Brazil. In it, the impact of a future with wider adoption of the cryptocurrency and its underlying technology, the blockchain, upon various sectors of the financial services ecosystem is predicted. Card issuers and acquirers, card brands, exchanges and Brazilian banks are all taken under the scanner to see the threats or opportunities that bitcoin and blockchain brings. Card Issuers Closest to Bitcoin’s Rising Tide The report does not pull any punches, as researchers suggested: Simply put, we believe a future with bitcoin transactions with their low (or no) costs and fees puts at risk the entire business model of credit and debit card companies. Acquirers such as Cielo (through net MDRs and POS revenue) and issuer banks (through interchange fees) potentially could suffer the most, in our view. The researchers followed up their claim with a list of the disadvantages of a card payment in comparison to a bitcoin payment. They are: Long payout time for merchants; 30 days as opposed to 10 minutes, with a bitcoin transaction. The lack of card contracts, with bitcoin. Card fees and other middlemen costs. Local taxes as opposed to no taxes with bitcoin Operational costs from IT, back-office to process the transactions with cards. As more merchants and suppliers accept bitcoins, “the risk increases” for card issuers, the researchers note. Blockchain Benefits for Banks and Cards While card issuers fall under the endangered category in a big bitcoin future, the researchers see card brands – the likes of Visa and Mastercard – to benefit from blockchain technology. “[T]hey could benefit from the blockchain concept in order to lower transaction, IT, and back-office costs,” the report adds. Furthermore, the report cites a Visa initiative where it is testing a payments system based on the blockchain, to process interbank transactions. The upside, compared to a traditional transfer method such as SWIFT, would be significantly faster settlement times, reducing credit risk over domestic and cross-border transfers and cost cutting. “In our view, it is definitely a challenge to Swift,” the authors wrote. Meanwhile, the authors of the report also believe banks have already started taking action in preparation for the cryptocurrency , even though they perceive banks to consider digital currencies’ technology to be in their “early stages.” With this in mind, banks are already looking toward their own digital currencies such as Goldman Sachs’ SETLcoin, the report stated. It added: We believe the blockchain concept has the potential to redefine money transactions in the banking world, taking advantage of the power of decentralized computer networks to eliminate difficult, time-consuming and costly trading among banks. IT, transaction costs, the banks’ huge back-offices, capital requirements – all of those could change in a material way, in our view. Altogether, the authors believe that in the future, that the answer to the report’s title, would see a response heavily leaning toward the cryptocurrency. [W]e believe that the question in this report’s title will eventually be answered with a resounding “Yes, to bitcoin.” Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (0 votes, average: 0.00 out of 5)You need to be a registered member to rate this. Loading... Samburaj Das 4 stars on average, based on 1 rated postsSamburaj is the contributing editor at Hacked and keeps tabs on science, technology and cyber security. Follow @HackedCom Feedback or Requests? Related Topics:Banco Santander Up Next Crypto-Crooks Steal Monero Using Compromised FTP Server Swarm Don't Miss Nobel Laureate Economist Thinks the US Govt Has ‘Shut Down’ Bitcoin You may like 1 Comment 1 Comment Gimmel Yod October 3, 2016 at 7:53 pm reading all of the talk about BitCoin by the “banks” is like listening to old fogies talk about the “new innovation of the DVD”. They’re already behind the curve. BitCoin is AWESOME but it’s most awesome as a digital store of wealth — eventually destined to become a digital global reserve currency (worth about 50000x of it’s current (2016) value). It will be ETHereum that composes the digital freight-train that fukks over the current established banking system. And the fact that the “banks” are still focused on BitCoin tells me that they’re too slow to “get-it” until it’s too-late. Log in to Reply You must be logged in to post a comment Login Leave a Reply Cancel replyYou must be logged in to post a comment. Altcoins Crypto Market Cap Falls Below $200 for the First Time Since November Amid ICO Backlash Published 19 hours ago on August 14, 2018 By Sam Bourgi The Money Makers Club now has 6 of 15 available seats. Learn more here! Cryptocurrencies extended their selloff overnight Tuesday, as the total market capitalization pierced below $200 billion for the first time since November. The decline was far-reaching and severe, with 78 of the top 80 altcoins recording double-digit percentage losses. Crypto Market Update Roughly $26 billion was wiped from the cryptocurrency market overnight, a sign that the bears were firmly in control and not giving up their position anytime soon. The market bottomed at $189.6 billion late Monday and has since recovered to around $193 billion. Twenty-four hours ago, coins were collectively worth more than $217 billion. Below are two snapshots of the crypto top-50, as reported by CoinMarketCap. Although the declines were largely concentrated in altcoins, bitcoin also experienced a tumultuous overnight session, with prices coming within $100 of a new yearly low. The bitcoin price bottomed at $5,858.60 on Bitfinex but has since recovered above $6,100. Ethereum’s downward spiral intensified Tuesday, with prices crashing to fresh 14-month lows. At press time, ether was down 16.6% at $267. The second-largest cryptocurrency by market cap has shed more than 35% over the past seven days. The Market’s Next Move The rout in altcoins has left bitcoin with a 54.1% share of the total cryptocurrency market – the highest since December. Although this gives bitcoin a stronger gravitational pull on other digital assets, it’s also an indicator that investors are shifting their portfolios away from more speculative altcoins and tokens. As Bloomberg pointed out on Monday, Ethereum’s massive decline could be a sign that ICOs are cashing out. If this is true, ether could face a deeper short-term correction as token offerings fizzle out. Biswa Das, the head of quantitative hedge fund BloomWater Capital, said the following of ICOs: “These startups are raising a lot of funds but they don’t have treasury management or enough cash management experience, so they’re selling too early and causing a lot of pressure in the market. It was fine last year but right now the market is so fragile that it causes a lot of pressure.” The cryptocurrency market has lost a staggering $140 billion since June 1, and a look at bitcoin’s technical chart suggests more pain could be on the way. The bitcoin price faces a critical support test at $5,800; a break below that level could expose the digital currency, and the broader market, to new yearly lows as early as this week. Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading. Featured image courtesy of Shutterstock. Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (2 votes, average: 5.00 out of 5)You need to be a registered member to rate this. Loading... Sam Bourgi 4.6 stars on average, based on 546 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts. Follow @HackedCom Feedback or Requests? Continue Reading Bitcoin Bitcoin Price Stabilizes Above $6,000 as Altcoins Get Rearranged Published 21 hours ago on August 14, 2018 By Greg Thomson The Money Makers Club now has 6 of 15 available seats. Learn more here! Bitcoin has emerged as the victor from the bloody chaos of the past week, but perhaps only by default. The 5% losses incurred by BTC in the past seven days would be considered a poor week at the markets in a different climate; but within the current context BTC looks positively bullish in comparison to its nearest competitors. Bitcoin Stabilizes Above $6,000 Bitcoin’s fall over the last 24 hours didn’t come quite so fast or as hard as that of the altcoins, although it did eventually drop below $6,000 at one point during the night. At around 03:00 UTC the BTC coin price sunk to the $5,970 range, but by the time people were waking up for breakfast the $5,000’s had been rejected and BTC was back up above $6,000. With just under 18% of BTC trades coming against USDT Tether, it seems the price dip was more a case of cautious hands taking refuge in USDT for the night while the storm cleared. After a 40% drop off in volume overnight, BTC is now starting to gear up for more, as the daily volume has grown from $4.1 billion to $5.3 billion in the last six hours. A quick glance at the market cap beyond Bitcoin is enough to justify the most dramatic of language, and once again one of the worst periods in recent times has fallen on ‘Monday Bloody Monday’. Altcoin Top-Ten Rearranged Everything looks different in the top ten this morning, with several pieces of altcoin furniture having been rearranged during the night’s turmoil. All of a sudden Stellar (XLM) finds itself in 5th spot, while EOS has been kicked down to 6th spot for the first time since its ICO ramped up to completion in early 2018. EOS has incurred 17.8% losses in the last 24 hours, descending to a coin price of $4.27 at the lowest point of the night. Further down the pack, USDT Tether has jumped into 8th spot and is battling it out with Cardano (ADA), which plunged 24% today before stabilizing at net losses of 19%. ADA coins dipped to levels not seen since early November 2017 when they reached a value of $0.086 this morning, although they’ve since rebounded to the $0.09 range at the time of writing. Further down still and IOTA was temporarily kicked down to 12th spot, behind TRON, as it recorded 24% losses for the day alone. TRON isn’t much better off, with losses similarly approaching the 24% mark. While Ethereum won’t be displaced any time soon, it has been shaken as bad as any coin in the top ten today, with 20% losses coming as ETH falls to a coin price not seen since September 2017 at $256.58. Despite a rebound to $264 at the time of writing, Ethereum is still down nearly 40% over the last seven days. Featured image courtesy of Shutterstock. Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (3 votes, average: 4.67 out of 5)You need to be a registered member to rate this. Loading... Greg Thomson 4.4 stars on average, based on 38 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home. Follow @HackedCom Feedback or Requests? Continue Reading Analysis Crypto Update: Altcoin Crash Continues, Ethereum Hits $250 as Bitcoin Holds Up Published 22 hours ago on August 14, 2018 By Mate Cser The Money Makers Club now has 6 of 15 available seats. Learn more here! The cryptocurrency segment endured another ugly overnight session, with the major altcoins plunging by double digits across the board yet again. The total value of the market is now handily below the $200 billion mark after the latest selloff, and despite the deeply oversold momentum readings, there is still no sign of even a short-term bottom, and our trend model continues to flash red too. While Liteocin and Monero provided a glimmer of hope for bulls during the initial phases of the current leg lower, the coins that are among the laggards from a long-term perspective followed the broader market below support later on. With no bullish leadership forming, the strong downtrend is still dominant and traders should still remain defensive, despite the already heavy losses in the segment. That said, in time, a more durable bottom is likely close, thanks to the negative sentiment and the oversold environment, but percentage-wise, further steep losses could be ahead. ETH/USD, 4-Hour Chart Analysis Ethereum is still in the epicenter of the decline, with a more than 15% daily decline, as the coin quickly got below the $275 level just after violating the $300 support, and even touched 4250 in early trading. The second largest coin fell through key zones without even a blink, and that points to forced liquidations in the market. The coin is still on sell signals on both time-frames and traders still shouldn’t enter new positions. Support is now found at $260 and $230, while resistance is ahead between $275 and $280, and near $300. BTC/USD, 4-Hour Chart Analysis While sellers have been trying to push Bitcoin below the $6000 level amid the altcoin rout, the coin always managed to bounce back so far, and it continues to hold up clearly above the structurally important $5850 level. The coin is still in a bullish secular trend and while the long-term picture is overwhelmingly bearish in the segment, the strength of the largest coin might be the basis of a coming recovery. That said, the short-term downtrend is clearly negative in the BTC, and traders shouldn’t enter new positions. Resistance is still ahead at $6275, $6500, $6750, and $7000, while initial support is at $6000, while further support is found between $5000 and $5100. Relentless Selling in Altcoins XRP/USDT, 4-Hour Chart Analysis Ripple still resembles a falling knife, similarly to most of the majors, and the coin continues to slide lower, as last week’s break-down led to a series of support breaches. The coin is now down by 40% in a bit more than a week, and it is currently testing the strong support zone near $0.26 after spiking briefly below it overnight. Should XRP hold above the spike low, traders could be looking for signs of a bottom, but for the coin is still on a clear sell signal. XMR/USDT, 4-Hour Chart Analysis With the smaller coins also being hammered lower, there is no real hiding place beside BTC in the segment, and yesterday’s slightly strong coins also broke down overnight. Monero violated the key long-term support near $80, which served as a base for the late-2017 run-up, and the coin is trying to hold its ground above that after the spike lower. While the downtrend is clearly intact, and the short- and long-term sell signals are in place, a recovery above $90, could point to the exhaustion of sellers. Featured image from Shutterstock Disclaimer: The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins. Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink. Rate this post: Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way. (5 votes, average: 4.80 out of 5)You need to be a registered member to rate this. Loading... Mate Cser 4.6 stars on average, based on 317 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market. Follow @HackedCom Feedback or Requests? Continue Reading 5 of 15 Seats Available Learn more here. 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