1
Ekta Mourya
FXStreet
BIP 119 could place a covenant on where Bitcoin transferred to a wallet can be spent or how it can be spent. Proponents believe a condition placed on spending could result in Bitcoin losing its fungibility, or exchange value, one of its unique propositions.
Bitcoin Improvement Proposal (BIP) 119 places covenants or spending conditions on Bitcoin. This would imply, a given quantity of Bitcoin sent to a user's wallet address can only be spent if the spending conditions are met.
A certain op code in BIP 119 would impose restrictions on a transaction. If Bitcoin is sent from address A to address B, "B" can only send it to a whitelist of addresses on receipt of the BTC. Since this creates two different classes of UTXOs, it affects the fungibility of Bitcoin.
Bitcoin is considered a fungible asset because every BTC unit has similar functionality and quality. The introduction of a covenant that changes the properties of some Bitcoin, in terms of where they can be spent and transferred, would create two different asset classes within BTC.
Interestingly, the restriction imposed through a covenant could allow financial regulatory authorities and governments to restrict Bitcoin transactions to whitelists or verified addresses and track them further, hurting privacy and equal access of users.
While the introduction of BIP 119 could protect user funds from hack or theft, its impact on the asset's interchangeability and user's privacy.
@DaCrypoGeneral, a crypto analyst and trader, observed a descending wedge reversal breakout and expects BTC to hit the $42,500 target after overcoming resistance at $40,600.
$BTC (4H) update; the price is bullish with Descending wedge reversal breakout, I'm expecting price to trade around $40.6k level
If price breaks $40.6k level then it will pump straight to the next target at $42.5k#BTC pic.twitter.com/JiC86ADlaU
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Only four days have passed since two of Argentina’s biggest banks opened up to crypto trading but now the central bank has stepped in to block the offerings. The central bank of Argentina (BCRA) has put the kibosh on financial institutions offering crypto trading only days.
Cardano price experienced a strong comeback from buyers, which pushed it up explosively. However, the price faced a massive resistance at a significant barrier, leading to a full 180. Going forward, investors need to be patient in observing how ADA reacts to the current support before establishing a directional bias.
Bitcoin price has fallen to its lowest point all month as the price has finally tested the anticipated $36,500 price level. The current price could be the final low for April. Bitcoin price appears to print the anticipated Wyckoff spring within the $37,000-$40,000 range.
Polkadot has questionable price action that needs further narrative before forecasting anything more than a 12% rally for the bulls. Traders should consider looking for more profitable opportunities. Invalidation of the no-trade zone is a breach of $17.20.
Bitcoin is likely to slide below $37,699 to collect liquidity before heading higher. BTC has prematurely triggered a minor run-up, leaving its downside objective unfulfilled. Investors can expect BTC to slide lower and collect liquidity below a significant level before triggering a full-blown impulse move.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
