It has been an interesting week for cryptocurrencies as the market has seemed to cease declining. There are also several exciting new developments in the blockchain community regarding real estate. Let’s kick it off with a quick cryptoanalysis, shall we?
Bitcoin (BTC) has been fluctuating in the $6,000 dollar range for a few weeks now, moving the market sideways. It seems like Bitcoin’s support is the $6,000 mark. Furthermore, experts are saying that a break of $6,500 is a sign that the bulls are back in control.
Ripple (XRP), one of the worst performing top cryptocurrencies of the year has risen 80 percent on Friday. Its market capitalization is near $26.8 billion, passing Ethereum as the second largest cryptocurrency in the world.
Experts believe that investors are betting on the news that Ripple is close to launching a wonderful new product. For example, the product is targeting banks that rely on the use of XRP.
BlockEstate Partners with Polymath for Real Estate Token
BlockEstate, a tokenized real estate fund that specializes in predictive analytics, has begun a partnership with Polymath. Together, they have formed ComplyAPI and are seeking to raise $50 million USD from accredited investors.
What is BlockEstate’s strategy in the blockchain and real estate industry? The company is combining the liquidity of blockchain technology with an aggressive real estate portfolio.
According to BlockEstate’s website, they “will use predictive analytics to manage and invest that capital in a carefully selected portfolio of market sectors with the goal of maximizing returns.”
The sale of BlockEstate’s security tokens will represent the fractional ownership of real estate. The real estate market is an illiquid one and through BlockEstate’s method, more opportunity is created for investors.
Those with small amounts of capital will be able to invest in real estate through fractional ownership. Furthermore, tokenizing “shares” for a real estate fund allows for more opportunities for investors to enter and exit positions quickly.
Brazilian Brokerage Announces Plans for Crypto Exchange
Bloomberg reported on Friday that Brazil is entering the crypto space in the near future. The Brazilian exchange, Grupo XP, is creating a platform for users to exchange Bitcoin and Ethereum.
In addition, Guilherme Benchimol, Chief Executive Officer of Grupo XP, told Bloomberg that the exchange XDEX will be launched in the coming months.
Benchimol has some reservations about the new business model stating, “this is a theme I’d rather didn’t exist, but it does. We felt obligated to start advancing in this market.”
Additionally, Benchimol admits that Grupo XP has felt pressure from investors to move into the crypto space. For example, it has been reported that 3 million Brazilians “have exposure” to Bitcoin and cryptocurrencies. However, only 600,000 Brazilians invest in the stock market.
U.S. Congressman Suggests Bills Supporting Blockchain Technology
U.S. Representative Tom Emmer has discussed plans to introduce three bills supporting blockchain and cryptocurrencies. Furthermore, announced in a press release on Friday, the bills are titled “Resolution Supporting Digital Currencies and Blockchain Technology,” the “Blockchain Regulatory Certainty Act,” and the “Safe Harbor for Taxpayers with Forked Assets Act.”
According to sources, the new legislation is primarily for the support and development of blockchain technology. Furthermore, it will also push for the establishment of a safe harbor for those with “forked” digital assets.
There is a lack of federal oversight in the crypto space. Additionally, the new legislation seems to be an attempt to create a “simple legal environment.”
Those who state their “forked” digital assets to the IRS will not be fined as opposed to those who do not.
“The United States should prioritize accelerating the development of blockchain technology and create an environment that enables the American private sector to lead an innovation and further growth, which is why I am introducing these bills,” said Emmer.
Recently, Emmer has taken the position of co-chairman for the Congressional Blockchain Caucus. Furthermore, the organization is a platform for government and industry leaders to collaborate examining blockchain technology.
“The Caucus believes in a hands-off regulatory approach to allow this technology to evolve the same way the Internet did; on its own,” said Emmer in an announcement.
This is an excellent approach to this technology as the Internet would not be what it is today without this.