Best Bitcoin Exchange for Malta

2018 has so far been a difficult year. Not only for emerging market and precious metal investors, but especially for the new asset class of “crypto currencies”. While in 2017 it was possible to earn a lot of money here almost blindly, in the current year the wheat is separating from the chaff. So most “newly appointed” cryptotraders had to learn the bitter lesson that nothing is free on the financial markets.

Many are likely to have lost a large part of their profits – and more – in the steadily falling crypto markets.

Gold and Bitcoin have similar characteristics to the weak year. On the one hand, both require a great deal of energy and labour to “mine”. Both are rare and can be converted into Fiat currencies. In addition, they have no counterparty risk and both have characteristics that define money. In order to anticipate it, I think one should incorporate both precious metals (at least 10%) and crypto currencies (max. 5%) into one’s asset structure.

Bitcoins decentralized nature is superior to the socialist national currencies

What distinguishes Bitcoin from established or imposed national currencies and makes it so special is its decentralised nature and the limited number of digital coins that can come into circulation. As a result, there is no single or central entity, such as a state or a bank, that can control the Bitcoin digital currency. Rather, a blockchain (decentralised database) records how many Bitcoins are assigned to which address and where they flow to. After the year 2050 there will hardly be a reward for “mining” any more, but the miners will be paid mainly by means of transaction fees.

In addition, there will be a maximum of 21 million bitcoins, whereby it will become more and more difficult to dig these through mathematical arithmetic tasks. In addition, it is estimated that over four million bitcoins have already been lost forever due to careless handling.

At the same time, the Bitcoin blockchain is still extremely stable despite all prophecies of doom and remains a role model for all imitators until further notice. The enthusiasm of researchers, developers and entrepreneurs for the new technology has led to a meteoric increase in value since the low in August 2015 from 150 US dollars to almost 20,000 US dollars in December 2017. At least theoretically, a simple, but at the same time ingenious mechanism was created for a tamper-proof money, trading and investment system.

Market capitalisation has divided into quarters

While it was almost child’s play in 2017 (I had pointed this out at the time) to drive home triple-digit profits with Bitcoin and numerous Altcoins, the market capitalisation of the entire sector has meanwhile been reduced from over 813 billion US dollars to just under 221 billion US dollars – and thus to a quarter.

At the same time, over 2,000 crypto currencies and tokens are now courting traders and investors. Most of last year’s high-flyers have lost more than 80% since early/mid-January and will most likely eventually become completely worthless. However, those who entered the right projects in time (i.e. before the 4th quarter of 2017) will usually still be sitting on extraordinary book profits.

The strong retracements are part of this industry of the future

It must be clear to everyone that progress towards a new technological dimension is not a one-way street. The strong retracements/corrections are basically completely normal and there is no need to worry about the big picture. After all, there were also massive setbacks in the technology bull market of the 1990s.

However, the high volatility naturally strains the nerves. But those who (and this should be done with every investment) discipline their position size and money management and take them into account with plan will now find increasingly promising investment and trading opportunities in the punished coins, tokens and projects. After all, the Fintech and crypto sector is and will remain a very promising industry for the future.

Steady and dynamic growth in blockchain wallets

Even though prices have been in a sensitive correction for almost 10 months, the blockchain boom itself seems unbroken. The dynamic and steady development of the blockchain wallets is an indication of this. Between spring 2015 and early summer 2018, the number of users of blockchain wallets gradually increased further. In the meantime, there are already over 29 million blockchain wallets worldwide, although it can be assumed that only about one percent of the world’s population has come into contact with crypto currencies.

The Fintech company Wirecard is the largest bank in Germany

It is therefore not surprising that, for example, the technology and financial services company Wirecard AG, based in Aschheim near Munich, has meanwhile become Germany’s largest bank in terms of market capitalization. Over the past five years, the share price has risen by over 635%.

Wirecard, too, is now concerned with cryto currencies and launched a new blockchain supply chain solution in June. The internationally renowned finance and payment service provider intends to combine its many years of experience in transaction, finance and banking with Blockchain technology in order to make current supply chain solutions faster, more efficient and more cost-effective.

With Smart Contracts based on Ethereum, trading processes are automated and Know-Your-Customer (KYC) data is recorded and managed. In addition to its use in agriculture, the service will be generally available for all types of raw materials, such as steel or crude oil.

Hoping for the Bitcoin ETF

Of course, the crypto sector is still extremely speculative and immature. Moreover, the Bitcoin still lacks a clear technical trend reversal signal. At the same time, a lot is happening in the background. In particular, the numerous ETF admission applications (exchange-traded funds) have repeatedly influenced price movements in recent months.

Similar to the introduction of the first Gold ETF in 2004, the crypto industry hopes that the first Bitcoin ETF will be the starting signal for a new bull market. So far, however, the American SEC (US Securities and Exchange Commission) has rejected every application, including nine Bitcoin ETF applications in August alone. Surely sooner or later there will be an approved Bitcoin ETF, which will give the traditional financial markets easier access to the crypto world.

However, it would be better not to bet on a direct authorisation, as the stock exchange supervisory authorities are certainly aware of the implications of their decision and would also like to protect consumers from the “insecure and manipulated” crypto market.

However, if the plans of the Intercontinental Exchange (ICE), owner of the New York Stock Exchange, to launch a Bitcoin futures contract with physical delivery in November become a reality, the situation could indeed change rapidly.

Regulation is crucial

In the large picture, however, the welfare of the crypto currencies is likely to be decided on the regulatory front. Ultimately, the entire industry is hanging in the air, torn between hesitant waiting and courageous rushing ahead. The fact is that many business approaches and companies still lack a clear legal framework.

The regulatory authorities, on the other hand – and this is nothing new in the digital Internet age – are overburdened with speed and complexity and can therefore only make concrete statements very slowly. The industry will have to wait some time before there are clear and unambiguous laws and regulations. At the same time, the first crypto-lobby associations (for example the Blockchain-Bundesverband in Berlin) have been founded with the aim of representing the interests of the crypto industry in Brussels and Berlin – as well as defining their own wishes and needs.
Malta as a pioneer in the regulation of blockchain technology

In Europe, Malta in particular has emerged as a very crypto-friendly country. The small island state in the Mediterranean has thus assumed a pioneering role within Europe in terms of settlement and competitive conditions and wants to establish itself as a centre of excellence within the global digital innovation landscape.

Maltese Prime Minister Joseph Muscat is considered a great supporter of blockchain technology. In his eyes, crypto currencies are “the inescapable future of money”, while blockchain technologies could simultaneously provide more transparency and more justice within a society. “Those who embrace this new technology today will have the ability to create a future-proof society. Most recently, three milestone laws were passed in June establishing a legal framework for the blockchain sector in Malta.

In his speech at the 73rd session of the UN General Assembly on 27 September, the Prime Minister continued: “I passionately believe that technology is revolutionising and improving systems. That is why we want to establish Malta as a “blockchain island”. Malta is the first jurisdiction in the world to have created a regulatory framework for this new technology, which has been operating in a legal vacuum. Blockchain makes crypto currencies the inevitable future of money. More transparency helps to distinguish good from bad business.”

Binance and OKEx are already building new trading platforms in Malta

Malta’s announcement that it wants to become a “blockchain island” has already attracted a number of well-known names in the young industry. For example, the largest trading platform, Chinese Binance, moved from Hong Kong to Malta in March. CEO Changpeng Zhao announced: “We are looking forward to building the Blockchain ecosystem in Malta, which has become a global centre for blockchain technology through active and transparent crypto regulations”.

Similarly, OKEx, the international arm of the Chinese platform OKCoin, signed a similar agreement in July to create a security token trading platform in Malta. Malta Stock Exchange Chairman Joe Portelli said: “We are delighted to be working with OKEx, a leader in digital currencies, to leverage our expertise in regulatory compliance and regulation to truly become a pioneer in security tokens.

Genesis Mining and DQR are the most important German representatives

German Genesis Mining has also entered the race for the stock exchange of the future. Genesis Mining is the world’s leading hash and cloud mining provider for Bitcoin and Altcoins (especially Ethereum) and has over 500,000 active customers. Reliable and customer-oriented, the company has experienced tremendous growth over the past five years. With its data centers (e.g. in Iceland) Genesis Mining provides the complete infrastructure to efficiently mine Bitcoins or other digital currencies.

In Malta, the company DQR Group was co-founded last year and is already working on a new trading platform and innovative products. Among other things, an index token called DQR30 will enable private investors to invest easily and securely in the first 30 largest crypto currencies by market capitalisation at low cost.

It is left to the market or free competition to find out which coins and tokens will actually prevail. If you don’t want to deal with different wallets and the tedious search for the right coin, you will probably find the ideal investment form for a “buy and hold” strategy here.

The gold rush in Malta takes shape

In addition to the large players mentioned above, crypto-friendly regulation has attracted numerous smaller companies and ICOs. As contact with high government officials, regulators and other decision-makers in the small island state is relatively easy, smaller companies and start-ups can also benefit from this advantage. The Delta Summit, which recently came to an end, already attracted enormous interest from all over the world. At the Malta Blockchain Summit at the beginning of November, over 200 sponsors and exhibitors as well as over 5,000 conference topics are expected!

Serious estimates assume that the booming industry in Malta will create more than 50,000 new jobs. Since the local labour market cannot satisfy this demand for highly qualified employees in any way, the young crypto founders will have no choice but to fly in the know-how from the rest of Europe or worldwide.

The main beneficiaries of the gold rush are likely to be law firms and property owners. Already now the living space is strongly limited and the prices increased last clearly. At the same time more and more lawyers from the relatively nearby Italy and Sicily are on their way to Malta.

10% of the world’s leading online gaming companies operate in Malta

In the past, Malta has already triggered a boom through its progressive regulation. At that time, the Maltese government undertook a major overhaul and consolidation of gambling legislation, and the parliament passed a new gambling law that led to the creation of the Maltese Gaming Authority (MGA).

Thus, with the introduction of the Remote Gaming Regulations (L.N. 176 of 2004), significant economic activities have developed, making the iGaming sector an essential factor for Malta’s GDP. An estimated 10% of the world’s leading online gaming companies are now based in Malta. Inspired by this success, the Maltese government now seems deliberately and purposefully to want to bring the crypto sector to Malta.

Chart analysis Bitcoin

On the chart, the Bitcoin has been in a clear downward trend since December 2017. Even though the momentum on the underside is increasingly weakening, a sell-off in the direction of 4,500 – 5,200 US dollars still has to be expected. The support zone around 6,000 US dollars has already been tested many times and should not be able to withstand further attacks for much longer. If the logarithmic daily chart shows a descending triangle, prices around 3,000 US dollars are also conceivable!

At the beginning of the week, however, the Bitfinex trading platform saw a sharp spike in Bitcoin prices. Within two hours on Monday morning, prices shot up by over 22% from 6,385 US dollars to just under 7,800 US dollars. This was probably due to emerging uncertainties and rumours about the Stablecoin Tether (USDT).

Tether is actually supposed to reflect the US dollar exchange rate one-to-one. In fact, however, Tether came under considerable pressure on Bitfinex at the beginning of the week, as many customers there apparently sold their tether against other coins such as Bitcoin, Ethereum or Ripple after speculations arose about a possible bankruptcy of Bitfinex. The questions as to whether Tether is actually covered by real US dollars persist, as an official audit has so far been owed to investors. Bitcoin, however, did not follow the sharp rise in prices on most other trading places, so that the whole thing should not be overvalued from a chartistic point of view.

Meanwhile, the situation has calmed down significantly. In my opinion, the extreme spike and the corresponding news situation fit perfectly into a bear market. The already strongly scratched confidence was further damaged. In addition, the crypto exchange Bitfinex and their daughter Tether are unfortunately linked in a very opaque way. Should Bitfinex go bankrupt, this should have similar serious consequences for the entire crypto sector as the bankruptcy of Mt.Gox in 2014. Especially since Bitfinex is the third largest Bitcoin owner in the world with approx. 165,000 Bitcoins (approx. 1.1 billion US dollars).

Since the downward trend could not be overcome on most trading places despite the spikes on Monday, the daily chart remains caught in the month-long correction. Only a sustained rise above the 200-day line (7,210 US dollars) improves the picture significantly. Then further price increases in the direction of 8,500 US dollars and 10,000 US dollars are also possible. Otherwise, the bear market will continue for the time being.

Conclusion

Malta, one of the smallest member states of the European Union, has become a crypto-currency and online gambling centre that also faces corruption and money laundering allegations. In addition, EU passports are illegally sold to rich investors, which makes the tax haven a magnet for even shady characters. On the one hand, it is to be hoped that the EU Commission will not put a stop to free competition between crypto currencies – on the other hand, illegal machinations and fraud must of course be punished. In the dispute over the gambling law, Malta was able to assert itself at any rate against France and record an important legal ruling at European level for itself.

Should the EU classify crypto currencies as a financial product and not as “gaming & drinking”, there is not much in the way of a continuation of the gold rush in Malta. Yet Maltese culture and history would actually fit in quite well with the principles of the blockchain. The Maltese Knights of St.John believed in freedom just as the Blockchain and Crypto disciples do now.

While the crypto winter is still technically intact, the institutional money in the background prepares the takeover and control of the crypto sector.