The recent trend of Bitcoin is very boring. It has been in a sideways market between 9200-9600 USD for nearly two months without any surprises. The industry joked that "Bitcoin will soon becomestablecoin”。
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Bitcoin's "ID"?
Many people attribute the price breakthrough of Bitcoin to the recent judgment of the US Federal Court on Bitcoin, which defines Bitcoin as "money" and believes that Bitcoin has been officially recognized as a legal "identity card". Therefore, the currency price rose sharply.
This is a beautiful misunderstanding.
According to Bloomberg News, on July 25, Washington, D.C. Chief Judge Beryl A. Howell said that the virtual currency Bitcoin is a "currency" covered by Washington, D.C.'s Money Transmitter Act.
The judge said this in the context of criminal charges against Larry Dean Harmon, an illegal bitcoin platform trader, for operating remittances and money laundering without a license. According to the regional laws of Washington, DC, any remittance business needs to apply for a remittance license. The defendants attempted to defend themselves by arguing that “Bitcoin is not a currency, and the platform operated is not a remittance business under the U.S. Code.” The judge finally rejected the defense of the defendant, and only then did the above assert that Bitcoin is a currency.
Bitcoin being recognized as a currency by a S.C. judge, will the impact be big enough to push Bitcoin, which has been sideways for a long time, to $10,000?In fact, the judge's decision has no substantive impact, because it is nothing new for Bitcoin to be recognized as a currency by state law. In fact, Bitcoin is recognized as currency by state law in most states across the United States.
Mr. Cai, the back wave on the chain, once served as the person in charge of a digital currency exchange company in the United States. When expanding business in the United States, he applied for business licenses state by state, which is the "Money Transmitting License" mentioned above. License, MTL).
Not only in the states, but a special agency at the federal level in the United States also considers Bitcoin a currency. FinCen, the financial crime prevention and anti-money laundering office under the U.S. Department of the Treasury, believes that digital currency is closer to currency, so it stipulates that all institutions involved in digital currency in the United States must register with FinCen as Money Service Business (Money Service Business, MSB), and a corresponding compliance department needs to be set up internally.
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certainly,
certainly,The United States has a very complicated regulatory system for digital currencies, which is also an important reason for this beautiful misunderstanding.
Most of the states at the state level, like the above-mentioned Washington, D.C., regard Bitcoin as a currency, and they need to apply for a remittance license to operate this business. And New York has gone a step further, setting up a business license specifically for digital currencies called BitLisence. Some states also ban bitcoin transactions.
At the federal level, the Federal Reserve, which has the most say in the nature of digital currencies, tried to throw the pot away, saying that digital currencies are not real currencies, and the Federal Reserve has no legally authorized responsibilities and obligations to directly supervise them. The Securities Regulatory Commission (SEC) recognizes all tokens except Bitcoin as securities, the Futures Trading Commission CFTC recognizes Bitcoin as a commodity, and the IRS of the Taxation Bureau considers digital currency as an asset that needs to be taxed. There are also OCC Office of Currency Management, CFPB Consumer Protection Bureau plus the above-mentioned FinCen, etc., which have different definitions of digital currency according to different functions.
The United States has not yet formed a unified system for digital currency supervision, and various departments overlap. For details, you can refer to the article "Houlang Cai on the chain" once publishedDigital Currency Series Six in the Eyes of Economists: Advancing with the Times (Regulation)”
In short, unless the Federal Reserve declares Bitcoin as a currency, no one says it will be of much use.secondary title
Compensation to be pulled up
Bitcoin broke through $10,000 not because of a sentence from the judge. What is the reason behind it? A picture is worth a thousand words, and this picture explains why Bitcoin is soaring.
In the past two months, gold has soared all the way, repeatedly breaking through record highs, reaching a high price of $1,948 an ounce, only one step away from the $2,000 mark. The reason is that the COVID-19 epidemic is raging around the world, which has severely damaged the global economy and triggered the expansion of global currencies. At the same time, the international political situation has become increasingly tense, and the deteriorating Sino-US relations are worrying. Investors were deeply disturbed and flocked to gold, which is known as a safe haven, in anxiety, pushing up the price of gold step by step.
Bitcoin, as digital gold, is also one of the options for safe-haven assets. It stands to reason that it should have the same upward momentum as gold, gathering upward potential energy, but it is extremely quiet and uninitiated. Until recently, the price of Ethereum broke through due to the hot Defi market, and Bitcoin followed suit.
It can be said that the surge in Bitcoin this time is more of a compensatory increase driven by gold and Ethereum, and has nothing to do with the speech of the US judge on Bitcoin.
Bitcoin has been sideways for too long, and it is understandable that holders are anxious, but don't get too excited. Regarding the market outlook, everyone should be calm and wait for changes.
