Today on Bitcoin This Week we comment on the recent announcement made by the social network Facebook, appointing a new Blockchain Director; Huobi opens business operations in the US through its strategic partner HBUS and much more.
Facebook Appoints New Blockchain Director
You could be forgiven for thinking that Facebook is anti-blockchain. After all, the social media giant outlawed crypto advertising – for a few months anyway – and still forbids ICOs from advertising to the platform’s two billion users. When Facebook CEO Mark Zuckerberg announced that he was investigating blockchain technology back in January, there was understandable skepticism.
It was a surprise, therefore, when it emerged this week that Facebook had appointed a “Director of Engineering, Blockchain”, leading to speculation that the ubiquitous tech giant might make some interesting announcements in the coming months. The appointment comes just days after Facebook backtracked on its January blanket ban on cryptocurrency-related advertising. Zuckerberg has conceded that Facebook is perceived to be too centralized, and what better way to decentralize than through the use of blockchain technology? Just how much control Facebook is willing to give over to its huge community, however, remains to be seen.
Bitmain Mines Strikes Gold On A Grand Scale
One reason why Facebook might be keeping its options open on blockchain is the huge amount of capital that has flooded into the crypto space in recent years. Now Bitmain, one of the world’s largest and most profitable Bitcoin mining operations, has reportedly been valued at $12 billion. The company, which dominates the market for Bitcoin mining equipment, is privately owned, although it may soon follow the lead of its closest competitor Cannan Creative, in launching an IPO.
The latest valuation follows a second round of funding which raised $400 million for the Chinese mining colossus. Apart from developing and manufacturing ASIC Bitcoin Mining equipment, Bitmain also operates one of the world’s largest mining pools, Antpool.
Huobi’s US Partner Opens For Business
Another Chinese giant was active this week. Huobi’s US partner company HBUS, is now taking registrations for its American operations. Investors from most of the US will be able to deposit their coins and trading is expected to commence on the 10th of July, with coin pairings to be announced on the day.
Huobi has been expanding rapidly this year, with new operations in South Korea, Japan and trading in its Australian wing commencing last week. London is now in its sights, with a view, one would suspect, to the European market.
Tom Lee Shares Another Bitcoin Price Prediction
Bitcoin investors love nothing more than being told how many trillions of dollars the currency will be worth in the years to come. There was a slight sense of anticlimax last week therefore, when Tom Lee, a notorious Wall Street-based Bitcoin bull, said he foresaw the currency scaling $22,000 by the end of the year. Although this would be a 380% increase on Bitcoin’s current position, commentators were quick to pounce on the fact that Lee had previously predicted that Bitcoin would trade for $25,000 by the year’s end.
What has made him change his mind and scale back his price forecast? Well, as we all know, there has historically been a correlation between the price of Bitcoin and the cost of mining Bitcoin. It is expected, explained Lee, that the cost of mining a single Bitcoin will reach $9000 by the end of the year, and, historically, the coin has sold for about two and a half times its mining costs. There was nothing bearish, said the Wall Street Exec, about predicting $22,000 instead of $25,000, he was just speaking in general terms. Lee predicted in March of this year that Bitcoin would be worth a very precise $91,000 by the close of 2020.
Bitcoin Consolidation Looking More Secure
Bitcoin was safely in the green on Sunday after a week in which it successfully held onto gains made at the end of June, rising $600 in value over the week.
Opening at $6300 on Monday, Bitcoin was trending upwards by Tuesday with a high of $6650. Steady progress was through the middle of the week, when it reached $6700 on Wednesday. Through the following days, it remained steady and by Sunday, had jumped to $6856, closing the week at its highest mark in a few weeks now. Let’s hope charts stay in the green for a bit longer. To see current prices click here.