At 11 pm on January 31, 2020, local time in Britain (7 am on February 1, Beijing time), the United Kingdom officially broke out of the European Union, putting an end to Britain ’s more than three years of Brexit and ending the 47-year EU Membership status. What impact will Brexit have on digital tokens and blockchain? Will BTC skyrocket all the way?
Topic: Brexit wishes come true, can BTC skyrocket? On January 29, the European Parliament approved the British "Brexit" agreement. The UK will begin an 11-month "Brexit transition period" from February 1. The UK and Europe need to work in new trade relations, defense cooperation, immigration, Negotiations on border control issues and end of legislation. Britain's departure from the European Union belongs to "agreement on Brexit", and its impact on itself and the global economy is one of the less important in the Bank of England's prediction of various possible scenarios. Despite the "orderly Brexit" of the United Kingdom, the European financial order may still be reshaped, and opportunities will emerge for digital tokens and the blockchain economy.
Quotes: The broader market is steadily rising and the downtrend is reversed . The ChaiNext Digital Asset 100 Index closed at 844.29 points this week, up 10.9%. The ChaiNext Digital Asset 100X Index closed at 2212.14 points, up 11.5%. The total market value of digital tokens this week was US $ 261.98 billion, an increase of US $ 24.59 billion from last week, or an increase of approximately 10.4%; the average daily turnover was US $ 106.15 billion, an increase of 5.0%. The current price of BTC is 9350.5 US dollars, with a weekly increase of 10.7%, and the average daily trading volume is 28.2 billion US dollars. The current price of ETH is $ 180.2, a weekly increase of 10.5%, and the average daily trading volume is $ 10.76 billion. The BTC balance of the exchange was 792,300, a decrease of 0.02 million from last week. The balance of ETH on the exchange was 10.022 million, and the selling pressure in the market was somewhat alleviated. In the BICS industry, the number of payment and settlement projects has grown rapidly.
Output and heat: BTC mining difficulty hits a new high. BTC ’s mining difficulty this week was 15.46T, which was raised by 0.69T this week; the average daily computing power was 111.6EH / s, which was 1.0EH / s higher than last week. ETH mining difficulty this week is 2057.8, which is 69.5 lower than last week, and the average daily computing power is 164.2 TH / S, which is 1.9 TH / S lower than last week.
Industry: The competition for digital token derivatives is fierce. Nasdaq is discussing the launch of BTC futures with partners; Tether is launching a new stable token backed by physical gold; the CFTC chairman said that Ethereum futures will be launched soon; Cambodia will issue a CBDC.
Risk warning: regulatory policy risks, market trend risks
1 Topic: Brexit wishes come true, can BTC skyrocket?
British Prime Minister Johnson issued a statement saying that Brexit is "a freshman in Britain", "for many people, this is an incredible and hopeful moment, and they think that this moment will never come", "not the end, but the starting point ". In many places in the UK, Brexit supporters set off fireworks. The cheerful Brexit leader Faraki said, "This is the greatest moment in the modern history of a great country." "We have passed the irreversible barrier, and we have never Don't go back. "
On the other hand, I hope that the British people who remain in the EU will "mourn" this night with a solemn candlelight vigil. A video was projected on the white cliffs off the coast of Dover, facing the European continent. The video was a WWII veteran's nostalgia for the European Union. The video ended with the stars on the EU flag slowly disappearing, leaving only a star symbolizing Britain. And accompanied by the text: "This is our star, take care of it for us."
On January 29, the European Parliament approved the British "Brexit" agreement. The UK will begin an 11-month "Brexit transition period" from February 1. The UK and Europe need to work in new trade relations, defense cooperation, immigration, Negotiations on border control issues and end of legislation. Britain has embarked on a very different path, withdrawing from a political and legal framework that has been in use for forty years.
1.2 European financial big shuffle, the blockchain stands out?
The event of Britain's final Brexit spurred less-than-expected stimulus to safe-haven assets such as BTC and gold. The impact of Brexit on digital tokens such as BTC has two aspects. One is that the economic growth of the United Kingdom and the EU member states has fallen, and the devaluation of the currency has caused investors to flood into the digital token market. The regulatory framework for securities and the establishment of a new regulatory system will increase transaction friction costs for UK digital token investors.
Britain's departure from the European Union belongs to "agreement on Brexit", which has less impact on itself and the global economy. The price of the British pound against the US dollar rose by 100 basis points after the announcement of Brexit. The Bank of England has analysed the impact of Brexit on the British economy in two scenarios, including: 1. The UK maintains an economic partnership with the EU; 2. No agreement and no transitional Brexit. The Bank of England believes that Brexit will affect residents' income and consumption, and will be restrained by economic uncertainty and corporate investment. The Bank of England predicts that in the absence of an agreement on Brexit, the UK's gross domestic product (GDP) will fall by 5.5% to 8% compared to the end of 2018, and its impact will be comparable to the economic crisis; while maintaining economic partnership with the EU, UK GDP will change by approximately -0.75% to 1.3% over the next five years.
Despite the "orderly Brexit" of the United Kingdom, the European financial order may still be reshaped, and opportunities will emerge for digital tokens and the blockchain economy.
First, in the process of Brexit, in order to deal with the risk of a no-deal Brexit, most foreign financial institutions that will be established in London will follow the principle of "highest efficiency and lowest cost" and take precautionary measures to transfer risks. According to European Central Bank statistics, as of October 2019, 24 banks, including Citibank, Morgan Stanley, JP Morgan Chase, and Goldman Sachs Group, have transferred related businesses from London to the Eurozone, involving assets of up to 1.3 trillion euros.
Second, European financial regulation may be complicated. Once the United Kingdom has no agreement to leave the European Union, it means that financial supervision and laws between the United Kingdom and the European Union will undergo major changes, and the continuity of a large number of financial business contracts will be affected. Major European cities may start a new round of competition for financial centers, and financial markets will inevitably fluctuate sharply.
In this context, blockchain technology, with its distributed, high-efficiency, low-cost, and non-tamperable characteristics, will replace traditional financial institutions in the fields of international trade, bond issuance, and corporate financing, and will emerge. BTC, as "digital gold", will attract a portion of institutional investors' hedge funds.
2 Quotes: Steady upward trend, downtrend will reverse
2.1 Overall market: BTC is steadily rising, and the concept of production reduction continues to be strong
3 Output and Heat: BTC Difficulty Hits a New High
BTC mining difficulty reached a new high. BTC ’s mining difficulty this week was 15.46T, which was raised by 0.69T this week; the average daily computing power was 111.6EH / s, which was 1.0EH / s higher than last week. ETH mining difficulty this week is 2057.8, which is 69.5 lower than last week, and the average daily computing power is 164.2 TH / S, which is 1.9 TH / S lower than last week.
4 industry news : Digital token derivatives are fierce
4.2 Tether is launching a new stable token backed by physical gold
Tether is launching a new token, Tether Gold, backed by physical gold. Tether said in a Thursday press release that the new stablecoin represents one troy ounce of physical gold on a specific gold bar. The new stablecoin will be issued on ETH and TRON, issuing ERC-20 and TRC20 tokens, respectively.
4.3 CFTC Chairman Says Ethereum Futures Are Coming Soon
US Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert reiterated in an interview with Bloomberg that Ethereum (ETH) futures are in the pipeline. As early as October last year, Tarbert stated that Ethereum futures may start trading sometime in 2020, and also said that the CFTC is willing to give a green light to new products.
4.4 Cambodia will issue CBDC, has entered the final deployment stage