The blockchain/crypto week in quotes

“Bitcoin’s price will reach $250,000 by 2022, and I’m hedging a little, maybe Q1 2023. It may be Q1 2023, but it will be [$250,000] before that.” Tim Draper

“Bitcoin has been excessively volatile, especially the last couple of years. It’s the sexy kind of thing to go to now. I don’t base my investments on sex appeal. I base my investment on longer-term perspective. And from a longer-term perspective, in terms of Bitcoin being that safe haven, I think it’s way too soon to call that.” Brian Belski, Chief Investment Strategist, BMO Capital Markets

“We know that the Libra network has already opened dialogue with many financial regulators on how it intends to comply with financial services product rules. However, given the rapid plans for Libra and Calibra, we are concerned that there is little detail available about the information handling practices that will be in place to secure and protect personal information.” The UK’s Information Commissioner’s Office (ICO) 

“The regulatory hammer has officially dropped in Germany (crypto businesses will need to hold a Federal Financial Supervisory Authority (BaFin) licence starting next year) and Bitpay’s recent exit could be a sign that other crypto payment service providers will also leave in the coming months.

We believe decentralised marketplaces are a stellar, alternative solution for businesses whose revenue stream could be lost due to the BaFin regulation. Decentralised marketplaces are highly secure, deliver more value at lower cost to buyers and sellers without middlemen like Amazon, and can be user-owned, meaning in theory no central authority like BaFin can take them down.” Paul Schmitzer, Head of Communications, Particl

“It’s no coincidence Bitcoin’s surge over the weekend has coincided with Donald Trump’s announcement of tariffs on $300 billion worth of Chinese goods. The yuan has fallen against the dollar to levels not seen since the 2008 financial crisis, and Chinese investors are casting around for alternative assets for their wealth.

Gold, the traditional haven asset, has been a beneficiary of some of this investor uncertainty. Yet Bitcoin also seems to have served a similar purpose. Given that Chinese investors make up a large proportion of crypto investors, there’s a strong possibility some are backing Bitcoin’s chances against the yuan.

Bitcoin’s status as a haven asset will be made or broken in the coming months, as global market uncertainty is set to increase further. Interest rate cuts from the Fed last week and expected cuts from the ECB in the autumn lay bare central bankers’ worries over the state of global economies. The pound has taken a significant hit in the past couple of weeks as investors fret about the possibility of a no-deal Brexit. The fact that these events are concurrent with Bitcoin’s block reward halving means the stars could align for it to become a safe port in a storm.

If demand for Bitcoin soars just as supply falls due to a halving in the block reward, we could see prices increase significantly in the long term. In the short term, the next major resistance level we’re keeping an eye on is $14,000 – if we see Bitcoin break through that level, the cryptoasset will be at prices last seen in the market highs of January 2018.” Simon Peters, Analyst at eToro

“Bitcoin has rediscovered its mojo this year with multiple mini-surges but a no-deal Brexit could see a massive and unprecedented breakout. Not only will a no-deal departure from the EU create turmoil and volatility across two major fiat currencies, it will also trigger an identity crisis for the global system as the contingency and vulnerability of major global fiat currencies is laid bare. 

Come 2020, we expect an increasingly populist and politically unstable world to cement the safe haven status of Bitcoin and cryptocurrencies more generally. And if central banks revert to ramping up the money printing all over again, the case for cryptocurrencies like Bitcoin whose supply is capped will be further reinforced. Each time a central bank increases the money supply, it’s another nail in the coffin of fiat.” Nicholas Gregory, CEO, CommerceBlock