Payment processor and security provider Vogogo has partnered with Kraken to bring Kraken’s exchange services to Canada. The new partnership and expansion also equates to a new Canadian dollar/Bitcoin exchange that Kraken will provide.
All exchanges are constantly looking for ways to gain a competitive edge and moving to another country also to the one you started in; that’s a good way to expand your business. This is exactly what Kraken has done.
The exchange said Canadians who use its service would benefit from low fees and good technology. It’s hard to tell if that will be enough to get them to start using it, from wherever they currently get their bitcoins.
With governments around the world collapsing, it is good to have a place to purchase a digital asset, like Bitcoin. Bitcoin purports to be immune to such things that might affect traditional markets. Bitcoin is based on scarcity. There is an actual limit on the eventual number of coins, so the idea is that once they are all issued out, the value of the coins that exist will go high. There is, of course, no way to guarantee that a strategy based on this would work out. That tends to be the problem with investment strategies that rely on certain things to go right when other things go wrong.
However, it does seem that when there is a financial crisis, Bitcoin starts trading higher. People like to attribute the higher trading to the financial crisis, but usually it has nothing directly to do with it. That is, there is no link between the place where the crisis is going on and the exchanges where the price is trending higher. The price is trending higher because people are trading it higher.
With an exchange like Kraken moving into Canadian territory, there is a new opportunity for people and companies to move some of their funds out into bitcoins, rather than traditional cash, which could be a good decision, long term.
Images from Pixabay and Kraken.
Last modified: June 27, 2020 10:45 AM UTC