From USD 150k to 30m: How MicroStrategy CEO Sold Voice.com To Block.One
Block.one CTO Dan Larimer during the announcement of Voice in June 2019. Source: a video screenshot.
Prior to buying a total of BTC 38,250 for a grand total of USD 425 million, Michael J. Saylor, the CEO of MicroStrategy, an American software company, sold the Voice.com domain to the developers of Voice decentralized social media platform for USD 30 million - one of the largest publicly announced domain name sales to date.
In the recent interview with Anthony Pompliano, Co-founder of Morgan Creek Digital, Saylor shared his story about the sale, which happened sometime around June 20, 2019. According to him, the initial offer was just USD 150,000 but he didn’t get on the call with the buyers until the offer was raised up to around USD 22 million.
“Selling intangible assets like artwork, it all comes down to how much are they worth to you. So if you needed the 10 million dollars you would have taken the 10 million dollars but at this point, you know, I have 500 million dollars of cash in the bank, and I love my things, you know, maybe you can tell that I’m a little bit passionate about some of this stuff. So I would rather own it and not have the 10 million then sell it for that so I said no,” the CEO said.
During the call, he admitted realizing that the buyer at the other end was some sort of anonymous whale who negotiated via a broker and a lawyer, so he decided to wait until they hit his bid.
“I said this is like my daughter: I’ll marry her off but only to a man that's going to treat her better than I will treat her. So if you guys really value this, then give me the 30 million otherwise I’m keeping it,” Saylor said, adding that "the word ‘voice’ in the English language is worth a hundred million.” Also, according to Michael J. Saylor, the sale was his introduction to crypto.
Meanwhile, as reported in August, Voice, developed by EOS developer Block.one, is almost ready to go live, as its beta program opens its doors to the friends and family of the Voice Genesis community. Voice said it's opening up globally, now being available in 20+ countries and territories - with more coming every month.
Block.one CTO Dan Larimer during the announcement of Voice in June 2019. Source: a video screenshot.
Prior to buying a total of BTC 38,250 for a grand total of USD 425 million, Michael J. Saylor, the CEO of MicroStrategy, an American software company, sold the Voice.com domain to the developers of Voice decentralized social media platform for USD 30 million - one of the largest publicly announced domain name sales to date.
In the recent interview with Anthony Pompliano, Co-founder of Morgan Creek Digital, Saylor shared his story about the sale, which happened sometime around June 20, 2019. According to him, the initial offer was just USD 150,000 but he didn’t get on the call with the buyers until the offer was raised up to around USD 22 million.
“Selling intangible assets like artwork, it all comes down to how much are they worth to you. So if you needed the 10 million dollars you would have taken the 10 million dollars but at this point, you know, I have 500 million dollars of cash in the bank, and I love my things, you know, maybe you can tell that I’m a little bit passionate about some of this stuff. So I would rather own it and not have the 10 million then sell it for that so I said no,” the CEO said.
During the call, he admitted realizing that the buyer at the other end was some sort of anonymous whale who negotiated via a broker and a lawyer, so he decided to wait until they hit his bid.
“I said this is like my daughter: I’ll marry her off but only to a man that's going to treat her better than I will treat her. So if you guys really value this, then give me the 30 million otherwise I’m keeping it,” Saylor said, adding that "the word ‘voice’ in the English language is worth a hundred million.” Also, according to Michael J. Saylor, the sale was his introduction to crypto.
Meanwhile, as reported in August, Voice, developed by EOS developer Block.one, is almost ready to go live, as its beta program opens its doors to the friends and family of the Voice Genesis community. Voice said it's opening up globally, now being available in 20+ countries and territories - with more coming every month.
Electrum Wallet Phishing Attackers Steal USD 22M in Bitcoin - Report
Bitcoin (BTC) thieves are amassing a fortune in stolen crypto funds – using a devious Electrum wallet exploit that allegedly tricked one user out of a staggering BTC 1,400 (USD 16.1m).
Per a report from ZDNet, criminals have developed an “attack pattern that has been reused in multiple campaigns over the past two years,” amassing a total of USD 22m.
On the Bitcoin Abuse Database website, a number of users posted similar complaints about one wallet holder with the address bc1qcygs9dl4pqw6atc4yqudrzd76p3r9cp6xp2kny (data viewable here, via Blockchain.com), with one writing,
“Electrum version 3 asks to be updated, in a seemingly genuine way, from the program. Transaction impossible without the update. Downloaded electrum 4.0.0. exe which has no signature and is marked as malware by Avast. As a result, approved transactions are redirected to the above address and the amount is corrected to all wallet content (minus transaction fee). Please boycott that address.”
The wallet holder in question has received over BTC 1,509 – but has apparently taken care to keep the crypto moving, sending almost the same amount off to other addresses.
ZDNet claimed it had identified tracked “multiple Bitcoin accounts where criminals have gathered stolen funds from attacks they carried out over the course of 2019 and 2020,” adding that the latest attacks had taken “as recently as September 2020.”
The users claim they were presented with an apparent pop-up window asking them to download a software update for the wallet in order to complete transactions. This is part of a phishing attack that eventually prompts users to send their funds to what appears to be a series of scammers’ wallets.
The same user who claims they lost BTC 1,400 in the bogus update scam expanded on the matter on a Github thread, with one developer writing,
“Electrum doesn't have a bug that can be exploited, it cannot be controlled remotely. It has no open vulnerability that can cause loss without a user's action. Electrum was no more ‘hacked’ or ‘exploited’ than Gmail, Yahoo, Outlook and all financial institutions (banks, etc.) as well as various other online services are every day.”
Bitcoin (BTC) thieves are amassing a fortune in stolen crypto funds – using a devious Electrum wallet exploit that allegedly tricked one user out of a staggering BTC 1,400 (USD 16.1m).
Per a report from ZDNet, criminals have developed an “attack pattern that has been reused in multiple campaigns over the past two years,” amassing a total of USD 22m.
On the Bitcoin Abuse Database website, a number of users posted similar complaints about one wallet holder with the address bc1qcygs9dl4pqw6atc4yqudrzd76p3r9cp6xp2kny (data viewable here, via Blockchain.com), with one writing,
“Electrum version 3 asks to be updated, in a seemingly genuine way, from the program. Transaction impossible without the update. Downloaded electrum 4.0.0. exe which has no signature and is marked as malware by Avast. As a result, approved transactions are redirected to the above address and the amount is corrected to all wallet content (minus transaction fee). Please boycott that address.”
The wallet holder in question has received over BTC 1,509 – but has apparently taken care to keep the crypto moving, sending almost the same amount off to other addresses.
ZDNet claimed it had identified tracked “multiple Bitcoin accounts where criminals have gathered stolen funds from attacks they carried out over the course of 2019 and 2020,” adding that the latest attacks had taken “as recently as September 2020.”
The users claim they were presented with an apparent pop-up window asking them to download a software update for the wallet in order to complete transactions. This is part of a phishing attack that eventually prompts users to send their funds to what appears to be a series of scammers’ wallets.
The same user who claims they lost BTC 1,400 in the bogus update scam expanded on the matter on a Github thread, with one developer writing,
“Electrum doesn't have a bug that can be exploited, it cannot be controlled remotely. It has no open vulnerability that can cause loss without a user's action. Electrum was no more ‘hacked’ or ‘exploited’ than Gmail, Yahoo, Outlook and all financial institutions (banks, etc.) as well as various other online services are every day.”
'Miner Strike is Nonsense, Miners Are Making a Ton' - Filecoin Founder
Juan Benet, the founder of decentralized, blockchain-based storage network Filecoin (FIL), denied recent reports that miners are protesting the platform.
"I was asked about a supposed 'Miner Strike' — This is nonsense," tweeted Benet several hours ago. "There is no strike. Miners are proving their storage just fine. There’s been no power loss out of the ordinary in the network. Miners are following the protocol, and making a TON of money doing so."
He argued that, if it were possible to "'strike' on a mindless blokchain," it would mean not producing blocks or halting the storage proving process, and he showed data that suggests blocks being produced, top miner earning USD 352,000 in a day, and the top 50 earning USD 3.7m in a day. He claimed that the truth is much different than a strike, and that there are some miners who want to use the situation to get more money, trying "all kinds of manipulative tactics."
As reported, the news started circulating through the Cryptoverse that a mere day after Filecoin's mainnet launch on October 15, miners started a strike against network's economic model which allegedly would force them to buy FIL tokens in order to even start mining, and after they already invested thousands of dollars in equipment.
Soon after, the Filecoin team decided to release 25% token rewards immediately, with no vesting, while the rest will be released within 180 days as originally stated, but Benet said that this was not in response to any miner protest, but something the team was discussing for weeks.
In another section of the thread, Benet gave a response to an earlier tweet by Tron (TRX)'s founder Justin Sun, seemingly accusing Filecoin and Benet himself of fraud and/or exit scam, "dumping" FIL on exchanges without community consent, etc. And though Sun got his fair share of criticism for the post, Benet was also criticised for the way he responded, with entrepreneur and Cake co-founder Julian Hosp stating that Benet attacked the man (Sun), instead of providing arguments against his position.
Juan Benet, the founder of decentralized, blockchain-based storage network Filecoin (FIL), denied recent reports that miners are protesting the platform.
"I was asked about a supposed 'Miner Strike' — This is nonsense," tweeted Benet several hours ago. "There is no strike. Miners are proving their storage just fine. There’s been no power loss out of the ordinary in the network. Miners are following the protocol, and making a TON of money doing so."
He argued that, if it were possible to "'strike' on a mindless blokchain," it would mean not producing blocks or halting the storage proving process, and he showed data that suggests blocks being produced, top miner earning USD 352,000 in a day, and the top 50 earning USD 3.7m in a day. He claimed that the truth is much different than a strike, and that there are some miners who want to use the situation to get more money, trying "all kinds of manipulative tactics."
As reported, the news started circulating through the Cryptoverse that a mere day after Filecoin's mainnet launch on October 15, miners started a strike against network's economic model which allegedly would force them to buy FIL tokens in order to even start mining, and after they already invested thousands of dollars in equipment.
Soon after, the Filecoin team decided to release 25% token rewards immediately, with no vesting, while the rest will be released within 180 days as originally stated, but Benet said that this was not in response to any miner protest, but something the team was discussing for weeks.
In another section of the thread, Benet gave a response to an earlier tweet by Tron (TRX)'s founder Justin Sun, seemingly accusing Filecoin and Benet himself of fraud and/or exit scam, "dumping" FIL on exchanges without community consent, etc. And though Sun got his fair share of criticism for the post, Benet was also criticised for the way he responded, with entrepreneur and Cake co-founder Julian Hosp stating that Benet attacked the man (Sun), instead of providing arguments against his position.
Legendary Investor Paul Tudor Jones Gives More Likes to Bitcoin
Legendary hedge fund manager Paul Tudor Jones now claims he likes bitcoin (BTC) even more than when he decided to invest in this most popular cryptocurrency.
“I think we are in the first inning of bitcoin and it’s got a long way to go,” Jones said on CNBC’s "Squawk Box" on Thursday. The founder and chief investment officer of Tudor Investment Corporation also admitted that he holds a "small single-digit investment" in BTC, adding that "It’s like investing with Steve Jobs and Apple or investing in Google early."
"The reason I recommended bitcoin is because it was one of the menu of inflation trades, like gold, like TIPS Treasury Inflation protected Security breakevens, like copper, like being long yield curve and I came to the conclusion that bitcoin was going to be the best inflation trade," Jones said.
The 66-year-old American billionaire hedge fund manager first dabbled in BTC in 2017, doubling his money before selling BTC near its peak at almost USD 20,000. This year, he authorized his hedge fund – Tudor BVI – to allocate “a low single digit” of its assets to bitcoin futures contracts. At the end of March, the fund had over USD 21bn in assets under management, and 1% would mean an investment of around USD 210 million. Many have wondered since whether he holds physical bitcoin.
Jones founded his own hedge fund back in 1980. He is known for macro trades and betting on interest rates and currencies, as well as for predicting the 1987 Black Monday, when it’s said he tripled his money. Also according to Forbes, Jones’ real time net worth is USD 5.8bn.
Legendary hedge fund manager Paul Tudor Jones now claims he likes bitcoin (BTC) even more than when he decided to invest in this most popular cryptocurrency.
“I think we are in the first inning of bitcoin and it’s got a long way to go,” Jones said on CNBC’s "Squawk Box" on Thursday. The founder and chief investment officer of Tudor Investment Corporation also admitted that he holds a "small single-digit investment" in BTC, adding that "It’s like investing with Steve Jobs and Apple or investing in Google early."
"The reason I recommended bitcoin is because it was one of the menu of inflation trades, like gold, like TIPS Treasury Inflation protected Security breakevens, like copper, like being long yield curve and I came to the conclusion that bitcoin was going to be the best inflation trade," Jones said.
The 66-year-old American billionaire hedge fund manager first dabbled in BTC in 2017, doubling his money before selling BTC near its peak at almost USD 20,000. This year, he authorized his hedge fund – Tudor BVI – to allocate “a low single digit” of its assets to bitcoin futures contracts. At the end of March, the fund had over USD 21bn in assets under management, and 1% would mean an investment of around USD 210 million. Many have wondered since whether he holds physical bitcoin.
Jones founded his own hedge fund back in 1980. He is known for macro trades and betting on interest rates and currencies, as well as for predicting the 1987 Black Monday, when it’s said he tripled his money. Also according to Forbes, Jones’ real time net worth is USD 5.8bn.
BBC Radio Scotland Show Goes Bullish on Bitcoin (and Whiskey)
The UK may be preparing for a second countrywide lockdown, but the national broadcaster has a suggestion for those marooned at home wondering what to do with their dwindling cash savings.
In an article on the BBC website created by BBC Radio Scotland’s Clever about Cash program, authors put forward “five alternatives to keeping your savings in the bank.”
And number four on the list may come as a surprise to regular listeners to the show – not known to veer into the world of blockchain-powered tokens.
The Clever about Cash team suggested “cryptocurrency” as a viable alternative to fiat, writing,
“If you’re not convinced by traditional savings options, an alternative is to invest in cryptocurrency. This is money that is completely virtual; it's basically a line of code.”
The team then quotes Temple Melville, the director of the Scotland-based team behind an ERC-20 token called Scotcoin, as stating that crypto “is a viable investment compared to traditional currency, which can lose its value.”
Melville was quoted as stating,
“Governments have recently thrown all the rule books of economics out the window. The result of that is that there have been trillions of dollars and pounds, euros, yen, you name it, that have been printed. Each new dollar reduces the purchasing power of every dollar in existence. So, to take bitcoin (BTC) as an example, there will only ever be 21 million BTC, it’s built in to their system. So if you only have one bitcoin you’re only ever going to have one bitcoin out of 21 million.”
In addition to crypto, the BBC program also advised readers to consider stocks, classic cars, gold…and Scotland’s favorite export, whiskey.
BBC Radio is not known for its maverick stance on crypto-related matters, although it last year hosted a nine-part podcast expose series on the operators of the scam “token” OneCoin, parts of which focused on bitcoin and blockchain technology.
The UK may be preparing for a second countrywide lockdown, but the national broadcaster has a suggestion for those marooned at home wondering what to do with their dwindling cash savings.
In an article on the BBC website created by BBC Radio Scotland’s Clever about Cash program, authors put forward “five alternatives to keeping your savings in the bank.”
And number four on the list may come as a surprise to regular listeners to the show – not known to veer into the world of blockchain-powered tokens.
The Clever about Cash team suggested “cryptocurrency” as a viable alternative to fiat, writing,
“If you’re not convinced by traditional savings options, an alternative is to invest in cryptocurrency. This is money that is completely virtual; it's basically a line of code.”
The team then quotes Temple Melville, the director of the Scotland-based team behind an ERC-20 token called Scotcoin, as stating that crypto “is a viable investment compared to traditional currency, which can lose its value.”
Melville was quoted as stating,
“Governments have recently thrown all the rule books of economics out the window. The result of that is that there have been trillions of dollars and pounds, euros, yen, you name it, that have been printed. Each new dollar reduces the purchasing power of every dollar in existence. So, to take bitcoin (BTC) as an example, there will only ever be 21 million BTC, it’s built in to their system. So if you only have one bitcoin you’re only ever going to have one bitcoin out of 21 million.”
In addition to crypto, the BBC program also advised readers to consider stocks, classic cars, gold…and Scotland’s favorite export, whiskey.
BBC Radio is not known for its maverick stance on crypto-related matters, although it last year hosted a nine-part podcast expose series on the operators of the scam “token” OneCoin, parts of which focused on bitcoin and blockchain technology.
PayPal CEO: Financial System 'Not Working,' Users 'Very Eager' For Crypto
Dan Schulman, CEO of online payments giant PayPal, has presented his diagnosis of the current financial system’s shortcomings, claiming it is inefficient and causing millions of people to be excluded, as the company expands into cryptocurrencies.
“The pandemic has brought focus to the stark reality that billions of people across the world are struggling to get by. In fact, in the past nine months, over 100 million … adults moved into extreme poverty. The current financial system is just not working for most people. It’s inefficient and expensive for the underserved,” Schulman said during an earnings call on PayPal's results for the third quarter of 2020 yesterday.
He said that modern technology combined with an emerging financial platform have the potential to tilt the odds in favor of the disadvantaged majority, driving “a future of inclusion and financial health”.
“As the use of cash continues to decline … central banks around the world are seriously exploring or even trialing forms of retail digital currencies that they issue directly. And it’s also clear that digital wallets are a natural complement to all forms of digital currencies,” according to Schulman.
With this in mind, the company is launching cryptocurrency services for its users, including a new digital wallet, and plans to embrace central bank digital currencies (CBDCs).
The company’s CEO forecasts that the digitization of the digital economy combined with the increase in popularity of digital wallets will drive PayPal’s growth in the coming decade.
Schulman confirmed that the company has already rolled out its new crypto services to 10% of its customers in the US "a couple of days ago" while the rest of their American clients should be able to use it in 2-3 weeks. According to the CEO, their customers are "very eager" to start using crypto and their waiting list of new crypto users exceeded their expectations by "2-3" times. Due to higher than expected demand, PayPal said it's going to increase their weekly limit of crypto purchases by 50%, to USD 15,000.
“We are investing to create one of the most compelling, inexpensive digital wallets in the world, and you can see this beginning to play out in our strong Q3 results,” Schulman said, adding the last quarter brought a record USD 247bn in total payment volume on the platform.
Commenting on Venmo, the company’s digital wallet app, the CEO said it had an inactive consumer base that exceeded 60 million, making it a robust vehicle for the company’s planned expansion.
“We are seeing substantial increases in the use of Venmo as the pandemic continues on, as more consumers turn to their mode to live their financial lives, including the adoption of direct deposit functionality, and later this year the Venmo credit card,” according to Schulman.
As reported, the company plans to expand its new crypto services to other countries as well as Venmo in the first half of 2021.
"It's just the beginning of what we want to do," the CEO said, adding that he sees "a lot of interesting things" that they can do with cryptoassets. Schulman did not elaborate on these plans.
Dan Schulman, CEO of online payments giant PayPal, has presented his diagnosis of the current financial system’s shortcomings, claiming it is inefficient and causing millions of people to be excluded, as the company expands into cryptocurrencies.
“The pandemic has brought focus to the stark reality that billions of people across the world are struggling to get by. In fact, in the past nine months, over 100 million … adults moved into extreme poverty. The current financial system is just not working for most people. It’s inefficient and expensive for the underserved,” Schulman said during an earnings call on PayPal's results for the third quarter of 2020 yesterday.
He said that modern technology combined with an emerging financial platform have the potential to tilt the odds in favor of the disadvantaged majority, driving “a future of inclusion and financial health”.
“As the use of cash continues to decline … central banks around the world are seriously exploring or even trialing forms of retail digital currencies that they issue directly. And it’s also clear that digital wallets are a natural complement to all forms of digital currencies,” according to Schulman.
With this in mind, the company is launching cryptocurrency services for its users, including a new digital wallet, and plans to embrace central bank digital currencies (CBDCs).
The company’s CEO forecasts that the digitization of the digital economy combined with the increase in popularity of digital wallets will drive PayPal’s growth in the coming decade.
Schulman confirmed that the company has already rolled out its new crypto services to 10% of its customers in the US "a couple of days ago" while the rest of their American clients should be able to use it in 2-3 weeks. According to the CEO, their customers are "very eager" to start using crypto and their waiting list of new crypto users exceeded their expectations by "2-3" times. Due to higher than expected demand, PayPal said it's going to increase their weekly limit of crypto purchases by 50%, to USD 15,000.
“We are investing to create one of the most compelling, inexpensive digital wallets in the world, and you can see this beginning to play out in our strong Q3 results,” Schulman said, adding the last quarter brought a record USD 247bn in total payment volume on the platform.
Commenting on Venmo, the company’s digital wallet app, the CEO said it had an inactive consumer base that exceeded 60 million, making it a robust vehicle for the company’s planned expansion.
“We are seeing substantial increases in the use of Venmo as the pandemic continues on, as more consumers turn to their mode to live their financial lives, including the adoption of direct deposit functionality, and later this year the Venmo credit card,” according to Schulman.
As reported, the company plans to expand its new crypto services to other countries as well as Venmo in the first half of 2021.
"It's just the beginning of what we want to do," the CEO said, adding that he sees "a lot of interesting things" that they can do with cryptoassets. Schulman did not elaborate on these plans.
US Presidential Crypto Candidate Brock Pierce Yet to Break Silence
As President Donald Trump and his leading challenger, the Democrat Joe Biden, continue to claim victory in an exceptionally tight general election, the crypto community is on the lookout for its self-proclaimed champion Brock Pierce.
Pierce is a former Hollywood actor who has since found fame in the crypto world, and is the chairman of the Bitcoin Foundation, a non-profit organization. He also leads Puerto Rico-based firm Gox Rising that aims to buy out creditor claims from the now-defunct Mt. Gox exchange.
He announced his independent candidacy for the United States presidency in July this year, and his Brock the Vote campaign has won endorsements from the likes of former Minnesota governor Jesse Ventura, bitcoin (BTC) advocate Tim Draper and the crypto-keen pop star Akon.
Current AP election forecasts have independent “other candidates,” including Pierce, on 0.3% (or 348,609 votes) of total votes cast, behind Trump, Biden and leading third-party candidates Jo Jorgensen and the Green Party’s Howie Hawkins.
In the District of Columbia, which AP has called, Pierce has apparently won 0.2%, with 461 votes – a sixth-placed finish.
For some, the real contest to watch is between Pierce and another crypto-keen candidate.
On a recent episode of the Joe Rogan Experience podcast, pop star and fellow presidential candidate Kanye West, the world-famous musician, stated that he had spoken to “bitcoin people” ahead of the election, stating,
“Jack Dorsey decentralized Twitter two months before it really hit because he was talking to the bitcoin guys.”
He added,
“I was talking to my man Fred and my boy Anthony possibly Pompliano about crypto and bitcoin yesterday just to be prepped for this conversation.”
Meanwhile, the former actor recently told Fox News,
“I'm in this for the long run. I'm running in 2024. I'm running the next four years all the way through. This is the beginning of that movement.”
He also stated that his goal was to build a “21st-century economy,” and said he hoped both his and West’s campaigns could “collectively deliver a message to the American people.”
As President Donald Trump and his leading challenger, the Democrat Joe Biden, continue to claim victory in an exceptionally tight general election, the crypto community is on the lookout for its self-proclaimed champion Brock Pierce.
Pierce is a former Hollywood actor who has since found fame in the crypto world, and is the chairman of the Bitcoin Foundation, a non-profit organization. He also leads Puerto Rico-based firm Gox Rising that aims to buy out creditor claims from the now-defunct Mt. Gox exchange.
He announced his independent candidacy for the United States presidency in July this year, and his Brock the Vote campaign has won endorsements from the likes of former Minnesota governor Jesse Ventura, bitcoin (BTC) advocate Tim Draper and the crypto-keen pop star Akon.
Current AP election forecasts have independent “other candidates,” including Pierce, on 0.3% (or 348,609 votes) of total votes cast, behind Trump, Biden and leading third-party candidates Jo Jorgensen and the Green Party’s Howie Hawkins.
In the District of Columbia, which AP has called, Pierce has apparently won 0.2%, with 461 votes – a sixth-placed finish.
For some, the real contest to watch is between Pierce and another crypto-keen candidate.
On a recent episode of the Joe Rogan Experience podcast, pop star and fellow presidential candidate Kanye West, the world-famous musician, stated that he had spoken to “bitcoin people” ahead of the election, stating,
“Jack Dorsey decentralized Twitter two months before it really hit because he was talking to the bitcoin guys.”
He added,
“I was talking to my man Fred and my boy Anthony possibly Pompliano about crypto and bitcoin yesterday just to be prepped for this conversation.”
Meanwhile, the former actor recently told Fox News,
“I'm in this for the long run. I'm running in 2024. I'm running the next four years all the way through. This is the beginning of that movement.”
He also stated that his goal was to build a “21st-century economy,” and said he hoped both his and West’s campaigns could “collectively deliver a message to the American people.”
The U.S. is suing for the forfeiture of thousands of bitcoins, totaling more than $1 billion, that it recently seized, the Department of Justice said Thursday.
The seizure on Tuesday, tied to early darknet market Silk Road, is the largest the U.S. has ever conducted, the DOJ said.
Court documents reveal the seized funds include over 69,370 bitcoin and nearly equivalent amounts of forked cryptos bitcoin cash (BCH), bitcoin gold (BTG) and bitcoin satoshi vision (BSV).
Prosecutors say an unnamed hacker stole the trove from Silk Road and moved them to a wallet where they sat from April 2013 until the Tuesday seizure.
The individual consented to the government seizure on Tuesday.
The news comes days after blockchain intelligence firm Elliptic reported that a wallet possibly belonging to the Silk Road marketplace moved almost $1 billion worth of bitcoin (BTC, +5.52%) earlier this week.
This was the first transaction from the address since 2015, when it transferred 101 BTC to BTC-e – a now-shuttered cryptocurrency exchange allegedly favored by money launderers, Elliptic said. BTC-e operator Alexander Vinnik has been in custody in Europe since 2017.
Earlier this week, Elliptic co-founder Tom Robinson speculated the coins may have been moved by imprisoned Silk Road operator Ross Ulbricht or a Silk Road vendor.
Ulbricht – who operated under the pseudonym Dread Pirate Roberts – operated the darknet website from 2011 until his arrest in 2013 and is currently serving a life sentence.
Since the coins have sat dormant in the wallet for years, unavailable for trading, their confiscation appears unlikely to have played any role in the recent run-up in bitcoin’s price. On the contrary, if the government were to auction them as it typically does, the coins could rejoin the circulating supply.
The seizure on Tuesday, tied to early darknet market Silk Road, is the largest the U.S. has ever conducted, the DOJ said.
Court documents reveal the seized funds include over 69,370 bitcoin and nearly equivalent amounts of forked cryptos bitcoin cash (BCH), bitcoin gold (BTG) and bitcoin satoshi vision (BSV).
Prosecutors say an unnamed hacker stole the trove from Silk Road and moved them to a wallet where they sat from April 2013 until the Tuesday seizure.
The individual consented to the government seizure on Tuesday.
The news comes days after blockchain intelligence firm Elliptic reported that a wallet possibly belonging to the Silk Road marketplace moved almost $1 billion worth of bitcoin (BTC, +5.52%) earlier this week.
This was the first transaction from the address since 2015, when it transferred 101 BTC to BTC-e – a now-shuttered cryptocurrency exchange allegedly favored by money launderers, Elliptic said. BTC-e operator Alexander Vinnik has been in custody in Europe since 2017.
Earlier this week, Elliptic co-founder Tom Robinson speculated the coins may have been moved by imprisoned Silk Road operator Ross Ulbricht or a Silk Road vendor.
Ulbricht – who operated under the pseudonym Dread Pirate Roberts – operated the darknet website from 2011 until his arrest in 2013 and is currently serving a life sentence.
Since the coins have sat dormant in the wallet for years, unavailable for trading, their confiscation appears unlikely to have played any role in the recent run-up in bitcoin’s price. On the contrary, if the government were to auction them as it typically does, the coins could rejoin the circulating supply.
Bitcoin Moves Towards USD 16,000, Altcoins Pick Up Pace
Bitcoin bulls gained strength after there was a clear break above the USD 15,000 resistance. As a result, BTC gained over 10% and it surged above USD 15,500. The price traded to a new multi-month high close to USD 15,950 and it is currently (06:00 UTC) correcting gains below USD 15,750.
After consolidating in a range, most major altcoins started a strong increase, including ethereum, XRP, litecoin, EOS, XLM, LINK, BNB, TRX, bitcoin cash, and ADA. ETH/USD gained more than 5% and it cleared the USD 425 resistance level. XRP/USD also gained bullish momentum and it broke the USD 0.245 and USD 0.250 resistance levels.
Bitcoin price
After a follow-through move above USD 14,500, bitcoin price rallied by more than USD 1,200. BTC broke many hurdles near USD 15,000 and USD 15,500. It traded close to the USD 16,000 resistance level and recently started a downside correction. There was a break below USD 15,750 level and the price is now consolidating near USD 15,500.
An initial support on the downside is near the USD 15,350 level. The main support is now forming near the USD 15,050 and USD 15,000 levels. On the upside, the USD 15,750 level is an immediate hurdle, above which the bulls might aim a break above USD 16,000.
Ethereum price
Ethereum price finally started following bitcoin price rally and it broke the USD 425 resistance. ETH even cleared the USD 435 resistance and spiked above the USD 440 level. The price is currently correcting lower, but dips might remain limited below USD 420.
If there is a fresh increase, the USD 435 and USD 440 resistance levels might act as hurdles. A clear break above USD 440 may perhaps push the price above USD 450 and USD 452.
Bitcoin cash, chainlink and XRP price
Bitcoin cash price is up 3% and it surpassed the USD 245 and USD 250 resistance levels. BCH is approaching the USD 255 resistance, above which it could aim a test of the USD 265 resistance. Any further gains could lead the price towards the USD 280 level. On the downside, the price might find bids near the USD 240 level.
Chainlink (LINK) formed a strong support base near USD 9.80 and USD 10.00. As a result, there was a fresh increase above the USD 10.50 resistance level. The bulls had an upper hand and they managed to clear the USD 11.00 resistance. The price is now trading above USD 11.00 and it seems like there are chances of a move towards USD 12.00.
XRP price spiked above the USD 0.245 resistance level to move into a positive zone. The price even climbed above USD 0.250, but it is struggling to gain pace above the USD 0.252 and USD 0.254 levels. The main resistance is near USD 0.255. If there is a downside correction, the USD 0.245 level is a decent support zone.
Other altcoins market today
In the past few hours, many altcoins rallied over 10%, including UNI, MANA, AAVE, SNX, CVT, RSR, CEL, XEM, GNT, SNT, ZRX, KNC, THETA, EWT, and LTC. Out of these, UNI gained over 25%.
Overall, bitcoin price is trading in a strong uptrend above USD 15,000 and USD 15,350. There could be range moves or even a downside correction, but the current price action suggests more possible gains in BTC in the near term.
Bitcoin bulls gained strength after there was a clear break above the USD 15,000 resistance. As a result, BTC gained over 10% and it surged above USD 15,500. The price traded to a new multi-month high close to USD 15,950 and it is currently (06:00 UTC) correcting gains below USD 15,750.
After consolidating in a range, most major altcoins started a strong increase, including ethereum, XRP, litecoin, EOS, XLM, LINK, BNB, TRX, bitcoin cash, and ADA. ETH/USD gained more than 5% and it cleared the USD 425 resistance level. XRP/USD also gained bullish momentum and it broke the USD 0.245 and USD 0.250 resistance levels.
Bitcoin price
After a follow-through move above USD 14,500, bitcoin price rallied by more than USD 1,200. BTC broke many hurdles near USD 15,000 and USD 15,500. It traded close to the USD 16,000 resistance level and recently started a downside correction. There was a break below USD 15,750 level and the price is now consolidating near USD 15,500.
An initial support on the downside is near the USD 15,350 level. The main support is now forming near the USD 15,050 and USD 15,000 levels. On the upside, the USD 15,750 level is an immediate hurdle, above which the bulls might aim a break above USD 16,000.
Ethereum price
Ethereum price finally started following bitcoin price rally and it broke the USD 425 resistance. ETH even cleared the USD 435 resistance and spiked above the USD 440 level. The price is currently correcting lower, but dips might remain limited below USD 420.
If there is a fresh increase, the USD 435 and USD 440 resistance levels might act as hurdles. A clear break above USD 440 may perhaps push the price above USD 450 and USD 452.
Bitcoin cash, chainlink and XRP price
Bitcoin cash price is up 3% and it surpassed the USD 245 and USD 250 resistance levels. BCH is approaching the USD 255 resistance, above which it could aim a test of the USD 265 resistance. Any further gains could lead the price towards the USD 280 level. On the downside, the price might find bids near the USD 240 level.
Chainlink (LINK) formed a strong support base near USD 9.80 and USD 10.00. As a result, there was a fresh increase above the USD 10.50 resistance level. The bulls had an upper hand and they managed to clear the USD 11.00 resistance. The price is now trading above USD 11.00 and it seems like there are chances of a move towards USD 12.00.
XRP price spiked above the USD 0.245 resistance level to move into a positive zone. The price even climbed above USD 0.250, but it is struggling to gain pace above the USD 0.252 and USD 0.254 levels. The main resistance is near USD 0.255. If there is a downside correction, the USD 0.245 level is a decent support zone.
Other altcoins market today
In the past few hours, many altcoins rallied over 10%, including UNI, MANA, AAVE, SNX, CVT, RSR, CEL, XEM, GNT, SNT, ZRX, KNC, THETA, EWT, and LTC. Out of these, UNI gained over 25%.
Overall, bitcoin price is trading in a strong uptrend above USD 15,000 and USD 15,350. There could be range moves or even a downside correction, but the current price action suggests more possible gains in BTC in the near term.
More Japanese Pro Gamers Agree to Receive Salaries in XRP
Japanese securities giant and Ripple partner SBI has recruited four more pro gamers to its SBI eSports roster – with three teams so far all agreeing to receive their salaries in the XRP token.
Per an official release, the latest batch of recruits is a four-member Apex Legends team. Apex Legends is a free-to-play battle royale-style game developed by American gaming giant EA.
And all four recruits have signed deals that will see them compensated for their turnouts for SBI eSports in XRP, rather than fiat yen.
SBI eSports was launched earlier this year, and appears to be part of a wider strategy to drive up interest in crypto among younger Japanese people. From the outset, SBI announced its intention to pay players in crypto when possible.
The eSports franchise’s main sponsor is SBI’s crypto exchange, SBI VC Trade – and players will wear SBI VC Trade insignia during competitive league and cup matches.
The four new recruits were named as HaRu, P1NKI, Wasuo and Leila – the latter of whom claimed to be a “long-term crypto owner” who is “happy to be involved” with a team that pays players in tokens, rather than JPY.
SBI eSports announced that “The annual salary for the four players will be paid in XRP in accordance with the wishes of each individual and the terms of our sponsorship contract with SBI VC Trade.”
SBI has previously unveiled Super Smash Bros and FIFA teams – and last month announced that all member of both of these units would also be accepting their salaries in XRP.
SBI’s CEO Yoshitaka Kitao is a member of the Ripple board.
At the time of writing (15:57 UTC, November 6), XRP trades at USD 0.257 and is up by almost 5% in a day. The price is also up by 3.4% in a month, trimming its losses over the past 12 months to less than 12%.
Japanese securities giant and Ripple partner SBI has recruited four more pro gamers to its SBI eSports roster – with three teams so far all agreeing to receive their salaries in the XRP token.
Per an official release, the latest batch of recruits is a four-member Apex Legends team. Apex Legends is a free-to-play battle royale-style game developed by American gaming giant EA.
And all four recruits have signed deals that will see them compensated for their turnouts for SBI eSports in XRP, rather than fiat yen.
SBI eSports was launched earlier this year, and appears to be part of a wider strategy to drive up interest in crypto among younger Japanese people. From the outset, SBI announced its intention to pay players in crypto when possible.
The eSports franchise’s main sponsor is SBI’s crypto exchange, SBI VC Trade – and players will wear SBI VC Trade insignia during competitive league and cup matches.
The four new recruits were named as HaRu, P1NKI, Wasuo and Leila – the latter of whom claimed to be a “long-term crypto owner” who is “happy to be involved” with a team that pays players in tokens, rather than JPY.
SBI eSports announced that “The annual salary for the four players will be paid in XRP in accordance with the wishes of each individual and the terms of our sponsorship contract with SBI VC Trade.”
SBI has previously unveiled Super Smash Bros and FIFA teams – and last month announced that all member of both of these units would also be accepting their salaries in XRP.
SBI’s CEO Yoshitaka Kitao is a member of the Ripple board.
At the time of writing (15:57 UTC, November 6), XRP trades at USD 0.257 and is up by almost 5% in a day. The price is also up by 3.4% in a month, trimming its losses over the past 12 months to less than 12%.
Ex-Microsoft Engineer Convicted In Landmark Case Involving Bitcoin Tax Fraud
In what is presented as the first US criminal case involving bitcoin (BTC) that has a tax component, a software engineer was sentenced to nine years of prison for 18 federal felonies related to his scheme to defraud software giant Microsoft, his former employer, of more than USD 10m.
The convict used a bitcoin mixing service with the aim to hide the source of the funds ultimately passing into his bank account, the US Department of Justice said in a statement.
The sentence was issued by a US District Court in Seattle after a jury convicted Volodymyr Kvashuk, a 26-year-old Ukrainian citizen who first worked as a contractor at Microsoft and then was the company's employee from August 2016 until he was fired in June 2018. Kvashuk was found guilty of “five counts of wire fraud, six counts of money laundering, two counts of aggravated identity theft, two counts of filing false tax returns, and one count each of mail fraud, access device fraud, and access to a protected computer in furtherance of fraud,” the statement said.
The software engineer was involved in the testing of Microsoft’s online retail sales platform, and used his access to steal currency stored value (CSV) such as digital gift cards. He then resold the CSV online, transferring USD 2.8m worth of BTC to his bank and investment accounts over a period of seven months.
“Kvashuk then filed fake tax return forms, claiming the bitcoin had been a gift from a relative,” according to the DoJ.
Among others, the convict used the proceeds from his criminal activities to buy a USD 160,000 Tesla vehicle, and a USD 1.6m lakefront house.
Commenting on the cryptocurrency tax-related dimension of the case, Ryan L. Korner, a special agent at the Internal Revenue Service’s Criminal Investigations branch who was in charge of the case, said that the “sentencing proves you cannot steal money via the Internet and think that Bitcoin is going to hide your criminal behaviors. Our complex team of cybercrimes experts with the assistance of IRS-CI’s Cyber Crimes Unit will hunt you down and hold you accountable for your wrongdoings.”
In what is presented as the first US criminal case involving bitcoin (BTC) that has a tax component, a software engineer was sentenced to nine years of prison for 18 federal felonies related to his scheme to defraud software giant Microsoft, his former employer, of more than USD 10m.
The convict used a bitcoin mixing service with the aim to hide the source of the funds ultimately passing into his bank account, the US Department of Justice said in a statement.
The sentence was issued by a US District Court in Seattle after a jury convicted Volodymyr Kvashuk, a 26-year-old Ukrainian citizen who first worked as a contractor at Microsoft and then was the company's employee from August 2016 until he was fired in June 2018. Kvashuk was found guilty of “five counts of wire fraud, six counts of money laundering, two counts of aggravated identity theft, two counts of filing false tax returns, and one count each of mail fraud, access device fraud, and access to a protected computer in furtherance of fraud,” the statement said.
The software engineer was involved in the testing of Microsoft’s online retail sales platform, and used his access to steal currency stored value (CSV) such as digital gift cards. He then resold the CSV online, transferring USD 2.8m worth of BTC to his bank and investment accounts over a period of seven months.
“Kvashuk then filed fake tax return forms, claiming the bitcoin had been a gift from a relative,” according to the DoJ.
Among others, the convict used the proceeds from his criminal activities to buy a USD 160,000 Tesla vehicle, and a USD 1.6m lakefront house.
Commenting on the cryptocurrency tax-related dimension of the case, Ryan L. Korner, a special agent at the Internal Revenue Service’s Criminal Investigations branch who was in charge of the case, said that the “sentencing proves you cannot steal money via the Internet and think that Bitcoin is going to hide your criminal behaviors. Our complex team of cybercrimes experts with the assistance of IRS-CI’s Cyber Crimes Unit will hunt you down and hold you accountable for your wrongdoings.”
Response to Ray Dalio: Banning Bitcoin Is a 'Game of Whack-a-Mole'
Following a statement by Ray Dalio, American billionaire investor, founder of major global investment firm Bridgewater Associates, that governments would outlaw bitcoin (BTC) should it get too big, multiple responses came out from the Cryptoverse on why this is impossible, or at the very least, highly unlikely.
If bitcoin becomes "material, the governments won't allow it, I mean they'll outlaw it," said Dalio in a November 7 interview with Yahoo Finance. "They'll use whatever teeth they have to enforce that." The governments would forbid people to transact in bitcoin, putting people in a position where such a transaction might be a felony, argued the investor.
Meanwhile, according to Parker Lewis, Head of Business Development at Unchained Capital, "bitcoin cannot be banned" - it would be "a fool's errand" that would set a global, "hopeless game of whack-a-mole." He stated that it is irrational to believe that all the people in the world who adopted bitcoin for financial freedom and sovereignty would simply accept the "ultimate infringement" of the most basic freedoms it's designed to provide and preserve.
Furthermore, "setting aside the constitutional issues, it would be technically infeasible to enforce a ban of bitcoin in any meaningful way." Lewis argued that,
"The idea that somehow bitcoin can be banned by governments is the final stage of grief, right before acceptance. The consequence of the statement is an admission that bitcoin "works." In fact, it posits that bitcoin works so well that it will threaten the incumbent government-run monopolies on money in which case governments will regulate it out of existence to eliminate the threat."
Following the interview, numerous other counterarguments came from the Cryptoverse, stating that the idea behind Dalio's statement is overestimated, unreasonable, even impossible, and that banning it might actually lead to its accelerated adoption.
One such commenter is Moon Capital, finding that the threat of governments banning BTC "is HIGHLY overestimated" and "NOT possible or even reasonable," adding that governments have been unsuccessful at banning even those things that exist physically.
Per their comments, a person who presents such an argument has already conceded that BTC is the world's most valuable monetary good, and understand that BTC will become valuable to such an extent that the governments will find it threatening. Furthermore, as Dalio mentioned the US banning private gold ownership in the 1930s, Moon Capital argued it's because the USD was redeemable for a fixed amount of gold and "they needed to break the peg to expand credit (to stimulate)," while today it's not pegged to gold, certainly not to BTC, so "they can stimulate as much as they want."
Popular generalist investor Lyn Alden, who's also an advisor to Swan Bitcoin, a BTC investing app, seems to agree, saying that it was difficult to enforce the gold ban in the first place, and though "governments can ban exchanges and make it illegal to own BTC, which would drive out institutional money and put bitcoin into the black market" - the problem is that large investors and companies already own it. These include Paul Tudor Jones, MicroStrategy, and Square, as does former US congresswoman now elected to the Senate, Cynthia Lummis. Others, like Fidelity and PayPal, are now heavily involved too. And as its capitalization and institutions' exposure to it grows, BTC will only become harder to ban, said Alden.
"Bitcoin was already an unusual asset that grew into the semi-mainstream from the bottom up, through retail adoption. Once the political donor class owns it as well, which they increasingly do, the game is basically over for banning it. Trying to ban it would be an attack on the balance sheets of corporations, funds, banks, and investors that own it, and would not be popular among millions of voters that own it," she argued.
Following a statement by Ray Dalio, American billionaire investor, founder of major global investment firm Bridgewater Associates, that governments would outlaw bitcoin (BTC) should it get too big, multiple responses came out from the Cryptoverse on why this is impossible, or at the very least, highly unlikely.
If bitcoin becomes "material, the governments won't allow it, I mean they'll outlaw it," said Dalio in a November 7 interview with Yahoo Finance. "They'll use whatever teeth they have to enforce that." The governments would forbid people to transact in bitcoin, putting people in a position where such a transaction might be a felony, argued the investor.
Meanwhile, according to Parker Lewis, Head of Business Development at Unchained Capital, "bitcoin cannot be banned" - it would be "a fool's errand" that would set a global, "hopeless game of whack-a-mole." He stated that it is irrational to believe that all the people in the world who adopted bitcoin for financial freedom and sovereignty would simply accept the "ultimate infringement" of the most basic freedoms it's designed to provide and preserve.
Furthermore, "setting aside the constitutional issues, it would be technically infeasible to enforce a ban of bitcoin in any meaningful way." Lewis argued that,
"The idea that somehow bitcoin can be banned by governments is the final stage of grief, right before acceptance. The consequence of the statement is an admission that bitcoin "works." In fact, it posits that bitcoin works so well that it will threaten the incumbent government-run monopolies on money in which case governments will regulate it out of existence to eliminate the threat."
Following the interview, numerous other counterarguments came from the Cryptoverse, stating that the idea behind Dalio's statement is overestimated, unreasonable, even impossible, and that banning it might actually lead to its accelerated adoption.
One such commenter is Moon Capital, finding that the threat of governments banning BTC "is HIGHLY overestimated" and "NOT possible or even reasonable," adding that governments have been unsuccessful at banning even those things that exist physically.
Per their comments, a person who presents such an argument has already conceded that BTC is the world's most valuable monetary good, and understand that BTC will become valuable to such an extent that the governments will find it threatening. Furthermore, as Dalio mentioned the US banning private gold ownership in the 1930s, Moon Capital argued it's because the USD was redeemable for a fixed amount of gold and "they needed to break the peg to expand credit (to stimulate)," while today it's not pegged to gold, certainly not to BTC, so "they can stimulate as much as they want."
Popular generalist investor Lyn Alden, who's also an advisor to Swan Bitcoin, a BTC investing app, seems to agree, saying that it was difficult to enforce the gold ban in the first place, and though "governments can ban exchanges and make it illegal to own BTC, which would drive out institutional money and put bitcoin into the black market" - the problem is that large investors and companies already own it. These include Paul Tudor Jones, MicroStrategy, and Square, as does former US congresswoman now elected to the Senate, Cynthia Lummis. Others, like Fidelity and PayPal, are now heavily involved too. And as its capitalization and institutions' exposure to it grows, BTC will only become harder to ban, said Alden.
"Bitcoin was already an unusual asset that grew into the semi-mainstream from the bottom up, through retail adoption. Once the political donor class owns it as well, which they increasingly do, the game is basically over for banning it. Trying to ban it would be an attack on the balance sheets of corporations, funds, banks, and investors that own it, and would not be popular among millions of voters that own it," she argued.
Bitcoin Cash Faces Increased Selling Pressure Ahead of Hard Fork
With the Bitcoin Cash (BCH) hard fork fast-approaching, BCH inflows to exchanges reached their highest point in eight months, and it appears that more market participants want to sell than buy the coin, according to the data provided by blockchain analysis company Chainalysis.
Another hard fork is coming to Bitcoin Cash on November 15, 2020, following a series of disagreements and tensions related to the project's future and the proposed changes in the underlying code.
According to Chainalysis' Market Intel, BCH inflows to exchanges in the last day hit BCH 271,220 (USD 70m), which is the highest level they reached in the last 244 days, or since mid-March. They came relatively near to this number in early September with a jump to BCH 258,528, which coincided with a sharp selloff in the whole market that week. This number also surpasses the 7-day average of BCH 163,674 and 180-day average of nearly BCH 80,000.
Inflows to exchanges fluctuate with changes in market sentiment and "an increase in inflows suggests increased selling pressure in the market," according to Chainalysis.
Furthermore, those assets that are held on exchanges increase if more market participants want to sell the coin than to buy it, as well as if buyers choose to store their assets on exchanges, said Chainalysis.
The change in BCH held on exchanges in the last day is BCH 70,320, down nearly 28%. Nonetheless, this is still above the 180-day average of some BCH 10,500.
Market Intel also offers a look into the BCH trade intensity. This metric compares the value of order book trades to exchange inflows, and if there is an increase in trade intensity, that "suggests more market participants want to buy than to sell." In BCH's case specifically, the median trade intensity in the last day is 10.23, below the 180-day average of 27.4, or the 7-day average of 15.28.
At the time of writing (14:24 UTC), BCH, ranked 6th by market capitalization, trades at USD 257 and is down by almost 1% in day and is unchanged in a week and a month. The price is down by almost 9% in a year.
With the Bitcoin Cash (BCH) hard fork fast-approaching, BCH inflows to exchanges reached their highest point in eight months, and it appears that more market participants want to sell than buy the coin, according to the data provided by blockchain analysis company Chainalysis.
Another hard fork is coming to Bitcoin Cash on November 15, 2020, following a series of disagreements and tensions related to the project's future and the proposed changes in the underlying code.
According to Chainalysis' Market Intel, BCH inflows to exchanges in the last day hit BCH 271,220 (USD 70m), which is the highest level they reached in the last 244 days, or since mid-March. They came relatively near to this number in early September with a jump to BCH 258,528, which coincided with a sharp selloff in the whole market that week. This number also surpasses the 7-day average of BCH 163,674 and 180-day average of nearly BCH 80,000.
Inflows to exchanges fluctuate with changes in market sentiment and "an increase in inflows suggests increased selling pressure in the market," according to Chainalysis.
Furthermore, those assets that are held on exchanges increase if more market participants want to sell the coin than to buy it, as well as if buyers choose to store their assets on exchanges, said Chainalysis.
The change in BCH held on exchanges in the last day is BCH 70,320, down nearly 28%. Nonetheless, this is still above the 180-day average of some BCH 10,500.
Market Intel also offers a look into the BCH trade intensity. This metric compares the value of order book trades to exchange inflows, and if there is an increase in trade intensity, that "suggests more market participants want to buy than to sell." In BCH's case specifically, the median trade intensity in the last day is 10.23, below the 180-day average of 27.4, or the 7-day average of 15.28.
At the time of writing (14:24 UTC), BCH, ranked 6th by market capitalization, trades at USD 257 and is down by almost 1% in day and is unchanged in a week and a month. The price is down by almost 9% in a year.
Bitcoin Rally Supported by More Busy Miners and Lower Fees
As bitcoin (BTC) rallied, with the trading volume rising as well, the transaction fees moved in the opposite direction as miners turned more of their machines on.
Bitcoin has made quite a move upwards since the beginning of November, with analysts predicting further volatility, but also appreciation in this month. The world's number one coin surpassed the USD 16,000 level for the first time since January 2018 just yesterday, and today jumped above USD 16,400 before correcting lower.
At the same time, the trading volume has been rising. At the time of writing, on November 13, Coinpaprika shows BTC 1,552,121 changing hands so far, worth around USD 25n. This is already up from yesterday's BTC 1.52m, as well as 31% more from the BTC 1.18 seen three days ago - which was the lowest amount recorded this week so far. In comparison, the highest number seen last week was BTC 1.87m, and the lowest was BTC 1.2m.
Meanwhile, the fees have been dropping in the last ten days. After jumping to USD 11.99 on November 3, the 7-day moving average fees dropped 41% to USD 7 recorded yesterday. This is still a lot higher than USD 2.18 recorded before the latest jump in fees.
The median transaction fees show a similar picture, dropping 56.6% between November 3 and November 12. Their USD 2.9 is still higher than USD 1.17 seen in mid-October.
BTC mempool, where all the valid transactions wait to be confirmed, is also less busy compared to October.
That said, hashrate, or the computational power of the Bitcoin network, shows something of an inverted fee picture: after dropping substantially in late October, it started climbing again on November 2. It's gone up 17.7% between then and November 12 to 127.36 EH/s. It's still a lower than the all-time high of 147.21 recorded in mid-October.
Bitcoin mining difficulty, or the measure of how hard it is to compete for mining rewards, is expected to drop again during the next adjustment in three days, following the second-largest drop in the network's history.
As bitcoin (BTC) rallied, with the trading volume rising as well, the transaction fees moved in the opposite direction as miners turned more of their machines on.
Bitcoin has made quite a move upwards since the beginning of November, with analysts predicting further volatility, but also appreciation in this month. The world's number one coin surpassed the USD 16,000 level for the first time since January 2018 just yesterday, and today jumped above USD 16,400 before correcting lower.
At the same time, the trading volume has been rising. At the time of writing, on November 13, Coinpaprika shows BTC 1,552,121 changing hands so far, worth around USD 25n. This is already up from yesterday's BTC 1.52m, as well as 31% more from the BTC 1.18 seen three days ago - which was the lowest amount recorded this week so far. In comparison, the highest number seen last week was BTC 1.87m, and the lowest was BTC 1.2m.
Meanwhile, the fees have been dropping in the last ten days. After jumping to USD 11.99 on November 3, the 7-day moving average fees dropped 41% to USD 7 recorded yesterday. This is still a lot higher than USD 2.18 recorded before the latest jump in fees.
The median transaction fees show a similar picture, dropping 56.6% between November 3 and November 12. Their USD 2.9 is still higher than USD 1.17 seen in mid-October.
BTC mempool, where all the valid transactions wait to be confirmed, is also less busy compared to October.
That said, hashrate, or the computational power of the Bitcoin network, shows something of an inverted fee picture: after dropping substantially in late October, it started climbing again on November 2. It's gone up 17.7% between then and November 12 to 127.36 EH/s. It's still a lower than the all-time high of 147.21 recorded in mid-October.
Bitcoin mining difficulty, or the measure of how hard it is to compete for mining rewards, is expected to drop again during the next adjustment in three days, following the second-largest drop in the network's history.
New Bitcoin Narrative Targets Multitrillion Bond Market
Major Australian investment fund Pendal Group considers that government bonds could become a "dead asset class" as they continue to lose their relevance in portfolios due to trillion-dollar quantitative easing programs run by central banks, pushing investors towards bitcoin (BTC).
“We think ultimately that government bonds will turn into a dead asset class, so we now have to imagine what it will be like for other assets classes when bonds are no longer relevant to hold in a portfolio,” Vimal Gor, Head of Bond, Income and Defensive Strategies, told the Australian Financial Review. According to him, as bond yields are going to "stay low for a very long time," investors are looking for alternatives and "commodities and cryptocurrencies have a part to play in the answer."
However, Gor said that bitcoin is superior to gold as a social contract and store of wealth because its easier to transact, there are flat running costs, and BTC has a finite and decreasing supply.
"We have been positioning in gold for our clients for many many years now. Now we're doing it with bitcoin," he said, adding that many of their high-net-worth clients and wholesale investors are asking about BTC. In either case, according to Gor, the fiat currency system will collapse but evolve.
As of August 2020, the overall size of the global bond markets in terms of USD equivalent notional outstanding, is approximately USD 128.3tn, according to estimates by the International Capital Market Association.
As reported, last week, Rick Rieder, BlackRock's Chief Investment Officer of Global Fixed Income said that BTC is "much more functional" than gold and the most popular cryptocurrency could replace the yellow metal. At the end of last year, BlackRock had USD 7.4 trillion in assets under management.
With some AUD 101.4bn (USD 74bn) in funds under management as of end 2019, Pendal Group says it is one of Australia’s largest investment managers. The company is listed on the Australian Securities Exchange.
Su Zhu, CEO of crypto investment fund Three Arrows Capital, commented on the Pendal’s approach by stating that “if pensions begin divesting from the zero/negative yielding global sovereign bond market to buy BTC that would be a veritable deluge of capital”.
Meanwhile, Michael Saylor, CEO and Founder of business intelligence firm MicroStrategy, expects BTC and other cryptocurrencies to strengthen its position of a “better store of value” for the USD 300 trillion that are currently “trapped & rapidly depreciating in bonds, stocks, real estate, cash, & gold”.
At pixel time (10:38 UTC), BTC trades at USD 18,726 and is up by 3% in a day and 15% in a week. The price rallied by 44% in a month and 159% in a year.
Major Australian investment fund Pendal Group considers that government bonds could become a "dead asset class" as they continue to lose their relevance in portfolios due to trillion-dollar quantitative easing programs run by central banks, pushing investors towards bitcoin (BTC).
“We think ultimately that government bonds will turn into a dead asset class, so we now have to imagine what it will be like for other assets classes when bonds are no longer relevant to hold in a portfolio,” Vimal Gor, Head of Bond, Income and Defensive Strategies, told the Australian Financial Review. According to him, as bond yields are going to "stay low for a very long time," investors are looking for alternatives and "commodities and cryptocurrencies have a part to play in the answer."
However, Gor said that bitcoin is superior to gold as a social contract and store of wealth because its easier to transact, there are flat running costs, and BTC has a finite and decreasing supply.
"We have been positioning in gold for our clients for many many years now. Now we're doing it with bitcoin," he said, adding that many of their high-net-worth clients and wholesale investors are asking about BTC. In either case, according to Gor, the fiat currency system will collapse but evolve.
As of August 2020, the overall size of the global bond markets in terms of USD equivalent notional outstanding, is approximately USD 128.3tn, according to estimates by the International Capital Market Association.
As reported, last week, Rick Rieder, BlackRock's Chief Investment Officer of Global Fixed Income said that BTC is "much more functional" than gold and the most popular cryptocurrency could replace the yellow metal. At the end of last year, BlackRock had USD 7.4 trillion in assets under management.
With some AUD 101.4bn (USD 74bn) in funds under management as of end 2019, Pendal Group says it is one of Australia’s largest investment managers. The company is listed on the Australian Securities Exchange.
Su Zhu, CEO of crypto investment fund Three Arrows Capital, commented on the Pendal’s approach by stating that “if pensions begin divesting from the zero/negative yielding global sovereign bond market to buy BTC that would be a veritable deluge of capital”.
Meanwhile, Michael Saylor, CEO and Founder of business intelligence firm MicroStrategy, expects BTC and other cryptocurrencies to strengthen its position of a “better store of value” for the USD 300 trillion that are currently “trapped & rapidly depreciating in bonds, stocks, real estate, cash, & gold”.
At pixel time (10:38 UTC), BTC trades at USD 18,726 and is up by 3% in a day and 15% in a week. The price rallied by 44% in a month and 159% in a year.
South Korea’s Banking Giant to Co-create ‘Crypto Bank’ for Exchanges
South Korean banks are rapidly stepping up their crypto game, with Kookmin (KB), one of the biggest commercial banks in the country, co-creating a “digital asset management company” with a number of the nation’s leading blockchain players that will safeguard the bitcoin (BTC) holdings of corporate customers such as crypto exchanges.
KB appears exceptionally keen to roll out crypto custody-related services for institutional investors before its nearest banking rivals, with some functionality becoming available as of next month.
Per CNews, KB has made a “strategic investment” of an undisclosed amount in a new firm called Korea Digital Asset (KODA), along with blockchain accelerator Hashed and fellow blockchain investor and developer Haechi Labs – both of whom have also invested undisclosed sums in the new company.
KODA will roll out a beta service for corporate customers starting next month.
An official from Kookmin Bank said that they plan to start with handling the digital assets of corporate customers including crypto exchanges.
Hashed CEO Kim Seojoon told,
“KB is the largest bank in Korea. I’m sure [this deal] has tones of meaning for the industry.”
And KODA will also evolve new layers of functionality in the future, with the firm’s architects claiming that it would also function as a sort of trading platform for enterprises – a B2B “digital assets bank” for crypto, initially only compatible with bitcoin, but with ethereum (ETH) handling capacities set to be added in the near future.
KODA added that it plans to provide a wide range of services such as cryptoasset trusts, anti-money laundering (AML) solutions, tax and legal compliance tools and over-the-counter (OTC) services for corporations and institutions – such as exchanges – who deal with digital assets.
South Korean banks are rapidly stepping up their crypto game, with Kookmin (KB), one of the biggest commercial banks in the country, co-creating a “digital asset management company” with a number of the nation’s leading blockchain players that will safeguard the bitcoin (BTC) holdings of corporate customers such as crypto exchanges.
KB appears exceptionally keen to roll out crypto custody-related services for institutional investors before its nearest banking rivals, with some functionality becoming available as of next month.
Per CNews, KB has made a “strategic investment” of an undisclosed amount in a new firm called Korea Digital Asset (KODA), along with blockchain accelerator Hashed and fellow blockchain investor and developer Haechi Labs – both of whom have also invested undisclosed sums in the new company.
KODA will roll out a beta service for corporate customers starting next month.
An official from Kookmin Bank said that they plan to start with handling the digital assets of corporate customers including crypto exchanges.
Hashed CEO Kim Seojoon told,
“KB is the largest bank in Korea. I’m sure [this deal] has tones of meaning for the industry.”
And KODA will also evolve new layers of functionality in the future, with the firm’s architects claiming that it would also function as a sort of trading platform for enterprises – a B2B “digital assets bank” for crypto, initially only compatible with bitcoin, but with ethereum (ETH) handling capacities set to be added in the near future.
KODA added that it plans to provide a wide range of services such as cryptoasset trusts, anti-money laundering (AML) solutions, tax and legal compliance tools and over-the-counter (OTC) services for corporations and institutions – such as exchanges – who deal with digital assets.
The USD 4.2bn Question: Has China ‘Dumped’ PlusToken Bitcoin, Ethereum & Co?
Crypto community members are wondering what has become of a huge stash of crypto worth a combined USD 4.2bn seized by the Chinese authorities who closed down the PlusToken crypto scam earlier this year – with some asking if the funds were already “dumped” onto the market months ago, and others suggesting the state may still be holding onto the funds.
Per a court report issued yesterday and posted online by The Block, the authorities claimed they had seized the following from seven of the scam’s masterminds in their raids:
Bitcoin: BTC 194,775 (USD 3.297bn)
Ethereum: ETH 833,083 (USD 425m)
Litecoin: LTC 1.4m (USD 95m)
EOS: EOS 27.6 million (USD 79m)
Dash: DASH 74,167 (USD 6.7m)
XRP: XRP 487m (USD 263m)
Dogecoin: DOGE 6bn (USD 19m)
Bitcoin Cash: BCH 79,581 (USD 21m)
Tether: USDT 213,724 (USD 214,217)
And internet-based Twitter sleuths believe that the tokens have indeed been sold, although mystery still surrounds exactly how, where and when Chinese authorities have managed to do so considering crypto exchanges have been outlawed in Mainland China since September 2017.
The Chinese police completed an 18-month international hunt for the scam operators earlier this year, and began sentencing convicted ringleaders back in September.
But some Twitter-based observers have stated that they believe the tokens were sold (or “dumped”, as one said) earlier in the year – with one opining that the news was possibly “stale“ by “six or more months.”
An analyst named @ErgoBTC claimed to have traced the sales back to the Huobi platform, going back as far as 2019, with a Twitter user opining that this was simply a case of the Chinese government “putting a bow on the saga.”
Another yet claimed that this was simply another demonstration that China’s policy on crypto is crystal clear: Beijing will continue to crack down hard on tokens unless it retains an iron grip over them. These thoughts echo the sentiments of a prominent Japanese China observer, who also claimed China was pursuing a centralized approach to digital finance.
But the possibility of a major state – particularly a superpower – becoming a major player in the crypto markets appears to have given some pause for thought.
Crypto community members are wondering what has become of a huge stash of crypto worth a combined USD 4.2bn seized by the Chinese authorities who closed down the PlusToken crypto scam earlier this year – with some asking if the funds were already “dumped” onto the market months ago, and others suggesting the state may still be holding onto the funds.
Per a court report issued yesterday and posted online by The Block, the authorities claimed they had seized the following from seven of the scam’s masterminds in their raids:
Bitcoin: BTC 194,775 (USD 3.297bn)
Ethereum: ETH 833,083 (USD 425m)
Litecoin: LTC 1.4m (USD 95m)
EOS: EOS 27.6 million (USD 79m)
Dash: DASH 74,167 (USD 6.7m)
XRP: XRP 487m (USD 263m)
Dogecoin: DOGE 6bn (USD 19m)
Bitcoin Cash: BCH 79,581 (USD 21m)
Tether: USDT 213,724 (USD 214,217)
And internet-based Twitter sleuths believe that the tokens have indeed been sold, although mystery still surrounds exactly how, where and when Chinese authorities have managed to do so considering crypto exchanges have been outlawed in Mainland China since September 2017.
The Chinese police completed an 18-month international hunt for the scam operators earlier this year, and began sentencing convicted ringleaders back in September.
But some Twitter-based observers have stated that they believe the tokens were sold (or “dumped”, as one said) earlier in the year – with one opining that the news was possibly “stale“ by “six or more months.”
An analyst named @ErgoBTC claimed to have traced the sales back to the Huobi platform, going back as far as 2019, with a Twitter user opining that this was simply a case of the Chinese government “putting a bow on the saga.”
Another yet claimed that this was simply another demonstration that China’s policy on crypto is crystal clear: Beijing will continue to crack down hard on tokens unless it retains an iron grip over them. These thoughts echo the sentiments of a prominent Japanese China observer, who also claimed China was pursuing a centralized approach to digital finance.
But the possibility of a major state – particularly a superpower – becoming a major player in the crypto markets appears to have given some pause for thought.
US Regulations Key To Ripple’s Relocation Decision As Customers Worried About XRP
As the California-based major blockchain company continues to mull an initial public offering (IPO), Ripple CEO Brad Garlinghouse said the US regulatory framework is out of step with a number of markets such as the UK, Singapore and Japan. This lack of regulatory clarity and certainty for investors is a key factor hampering the company’s development in the US and the recruitment of new customers, he said in an interview with CNN.
“We have been big advocates of a bill that was introduced in the Congress called the DCEA, or the Digital Commodity Exchange Act … which could be a very important step in providing that clarity and certainty here in the US,” Garlinghouse said.
The CEO was making reference to earlier statements suggesting his firm was considering to leave the US, and some of the potential destinations to which the company could move include countries in Asia and Europe.
According to Garlinghouse, the lack of a clear regulatory framework in the US was impacting on the company’s talks with numerous customers who were hesitating whether to join its network because of country-specific reasons.
“Often times when I’m speaking with customers and we’re talking to them about our product that uses XRP in the payments flows, they will ask me about the regulatory dynamics, and they will [say] … look, until there’s clarity in the regulatory frameworks, we’re going to hold off,” the CEO said. “Now, that has not been the case because of the clarity and certainty in countries like… the UK, or the UAE, or Switzerland.”
Given that 95% of Ripple’s customers are based outside the US, the company said “one of the dynamics causing this is we have US companies who are waiting for clarity” in particular from the US Securities and Exchange Commission.
Commenting on its potential IPO, Ripple’s CEO said the company has “not been public about what our plans are with the exception that I’ve said there will be public crypto companies. I originally predicted we’d see them in the year 2020” but “the pandemic affected a lot of things, slowed down things a bit”.
At pixel time (10:36 UTC), XRP trades at USD 0.627 and is up by 1% in a day and 19% in a week. The price rallied by 169% in a month and 192% in a year.
As the California-based major blockchain company continues to mull an initial public offering (IPO), Ripple CEO Brad Garlinghouse said the US regulatory framework is out of step with a number of markets such as the UK, Singapore and Japan. This lack of regulatory clarity and certainty for investors is a key factor hampering the company’s development in the US and the recruitment of new customers, he said in an interview with CNN.
“We have been big advocates of a bill that was introduced in the Congress called the DCEA, or the Digital Commodity Exchange Act … which could be a very important step in providing that clarity and certainty here in the US,” Garlinghouse said.
The CEO was making reference to earlier statements suggesting his firm was considering to leave the US, and some of the potential destinations to which the company could move include countries in Asia and Europe.
According to Garlinghouse, the lack of a clear regulatory framework in the US was impacting on the company’s talks with numerous customers who were hesitating whether to join its network because of country-specific reasons.
“Often times when I’m speaking with customers and we’re talking to them about our product that uses XRP in the payments flows, they will ask me about the regulatory dynamics, and they will [say] … look, until there’s clarity in the regulatory frameworks, we’re going to hold off,” the CEO said. “Now, that has not been the case because of the clarity and certainty in countries like… the UK, or the UAE, or Switzerland.”
Given that 95% of Ripple’s customers are based outside the US, the company said “one of the dynamics causing this is we have US companies who are waiting for clarity” in particular from the US Securities and Exchange Commission.
Commenting on its potential IPO, Ripple’s CEO said the company has “not been public about what our plans are with the exception that I’ve said there will be public crypto companies. I originally predicted we’d see them in the year 2020” but “the pandemic affected a lot of things, slowed down things a bit”.
At pixel time (10:36 UTC), XRP trades at USD 0.627 and is up by 1% in a day and 19% in a week. The price rallied by 169% in a month and 192% in a year.
Bitcoin, Blockchain: Most Americans Don’t Know the Difference – Survey
Blockchain and crypto awareness in the United States is highest among the young, per a new survey. But few people know the difference between the two terms, and many think Bitcoin (BTC) and blockchain are one and the same thing, despite the fact that BTC and altcoins are now grabbing headlines in the mainstream media.
The report’s authors wrote,
“In the general population, only 25% of American adults have any idea what blockchain is, but this rises to 42% in the age 18-34 demographic.”
However, the authors noted that of the adults who said they recognized the term blockchain, “most don’t understand it,” with a staggering 62% “stating that “blockchain is the same as cryptocurrency” and almost half of the same group believing that “blockchain is the same as bitcoin.”
Well, they're not far from each other as blockchain is used by Bitcoin, which itself is a network, protocol, and the most popular cryptocurrency.
In either case, adoption appears to be on the rise, regardless of how knowledgeable (or not) the American public is about these emerging forms of technology.
The authors noted,
“Only 18% of United States adults say they’ve used a product or service related to blockchain, but this rises to 25% among the 18-34 demographic.”
And 63% of gamers responded that they would be keen to spend more on game-related cryptoassets and blockchain if they saw “virtual goods had real-world value, and could be traded or sold.”
Furthermore, more than a third of the total sample and almost 50% of the 18-34 year age group said their trust in blockchain was “strong or complete.”
Meanwhile, at the time of writing (14:40 UTC), BTC trades at USD 18,952 and is down by 1.4% in a day and 1% in a week. The price rallied by 24% in a month and 151% in a year.
Blockchain and crypto awareness in the United States is highest among the young, per a new survey. But few people know the difference between the two terms, and many think Bitcoin (BTC) and blockchain are one and the same thing, despite the fact that BTC and altcoins are now grabbing headlines in the mainstream media.
The report’s authors wrote,
“In the general population, only 25% of American adults have any idea what blockchain is, but this rises to 42% in the age 18-34 demographic.”
However, the authors noted that of the adults who said they recognized the term blockchain, “most don’t understand it,” with a staggering 62% “stating that “blockchain is the same as cryptocurrency” and almost half of the same group believing that “blockchain is the same as bitcoin.”
Well, they're not far from each other as blockchain is used by Bitcoin, which itself is a network, protocol, and the most popular cryptocurrency.
In either case, adoption appears to be on the rise, regardless of how knowledgeable (or not) the American public is about these emerging forms of technology.
The authors noted,
“Only 18% of United States adults say they’ve used a product or service related to blockchain, but this rises to 25% among the 18-34 demographic.”
And 63% of gamers responded that they would be keen to spend more on game-related cryptoassets and blockchain if they saw “virtual goods had real-world value, and could be traded or sold.”
Furthermore, more than a third of the total sample and almost 50% of the 18-34 year age group said their trust in blockchain was “strong or complete.”
Meanwhile, at the time of writing (14:40 UTC), BTC trades at USD 18,952 and is down by 1.4% in a day and 1% in a week. The price rallied by 24% in a month and 151% in a year.
BTC, ETH Slide Lower Despite Insurers’ USD 100m Bitcoin Buy & Ether ETF
The crypto community has been buoyed as – despite sliding bitcoin (BTC) and ethereum (ETH) prices – two major breakthroughs were reached for both tokens.
At pixel time (09:03 UTC), BTC trades at USD 17,883 and is down by 3% in a day and 8% in a week, while ETH is down by almost 4% to USD 545. Its price declined by 11% in a week.
Last night, the news broke that America’s Massachusetts Mutual Life Insurance (also known as MassMutual) has purchased USD 100m worth of bitcoin to add to its general investment fund – on the same day as the world’s first-ever ethereum exchange-traded fund (ETF) made its market debut in Canada.
Per Bloomberg, Mass Muttual’s holdings are now 0.04% held in BTC, but the firm also moved to also snap up a USD 5m minority equity stake in NYDIG, a Stone Ridge-run subsidiary firm that provides crypto services to institutional investors.
Meanwhile, across the border, The Ether Fund, an ETH-backed offering organized by crypto investment management firm 3iQ finally listed on the Toronto Stock Exchange, after raising some USD 76.5m prior to listing.
Although the Investment Industry Regulatory Organization of Canada (IIROC) announced that there had been a hiccup with a temporary halt prior to the start of trading.
But after around two hours, trading did eventually resume, reaching a high of 11.48 dollars per share – with 345,331 shares traded on its first official day on the market.
The ETH backing the token is being held by the Gemini Exchange’s crypto custody subsidiary, Gemini Custody. Gemini co-founder Tyler Winklevoss wrote on Twitter,
“Huge news for Ethereans. […]To the moon!”
Reacting to the bitcoin news, journalist Laura Shin took to Twitter to state that the development was “a big deal” as the company “isn’t and hasn’t been an advocate for bitcoin.” She added that the move “seems like a sober, non-ideological move” on MassMutual’s part.
Another observer said that the move was a “woke” measure, pointing out that it was telling that MassMutual was “an insurance company whose only job has been to manage risk for 170 years” had decided to take such a bold bitcoin plunge.
A redditor, meanwhile, wrote that investments of this kind were one very rare, but “it seems new large investors are entering on a daily basis now.”
And one more optimistic pundit claimed that with BTC and ETH experiencing so many “watershed moments” it was only a matter of time before “Amazon, Apple and/or some other behemoth is going to get involved in bitcoin.”
“The big boys are putting their funds into bitcoin as a hedge against being called Neanderthals who missed the crypto boat. And let’s not forget that they all have millennial kids or grandkids rooting them on," Tania Modic, the managing member of Western Investments Capital LLC, her investment family office, told Bloomberg.
The crypto community has been buoyed as – despite sliding bitcoin (BTC) and ethereum (ETH) prices – two major breakthroughs were reached for both tokens.
At pixel time (09:03 UTC), BTC trades at USD 17,883 and is down by 3% in a day and 8% in a week, while ETH is down by almost 4% to USD 545. Its price declined by 11% in a week.
Last night, the news broke that America’s Massachusetts Mutual Life Insurance (also known as MassMutual) has purchased USD 100m worth of bitcoin to add to its general investment fund – on the same day as the world’s first-ever ethereum exchange-traded fund (ETF) made its market debut in Canada.
Per Bloomberg, Mass Muttual’s holdings are now 0.04% held in BTC, but the firm also moved to also snap up a USD 5m minority equity stake in NYDIG, a Stone Ridge-run subsidiary firm that provides crypto services to institutional investors.
Meanwhile, across the border, The Ether Fund, an ETH-backed offering organized by crypto investment management firm 3iQ finally listed on the Toronto Stock Exchange, after raising some USD 76.5m prior to listing.
Although the Investment Industry Regulatory Organization of Canada (IIROC) announced that there had been a hiccup with a temporary halt prior to the start of trading.
But after around two hours, trading did eventually resume, reaching a high of 11.48 dollars per share – with 345,331 shares traded on its first official day on the market.
The ETH backing the token is being held by the Gemini Exchange’s crypto custody subsidiary, Gemini Custody. Gemini co-founder Tyler Winklevoss wrote on Twitter,
“Huge news for Ethereans. […]To the moon!”
Reacting to the bitcoin news, journalist Laura Shin took to Twitter to state that the development was “a big deal” as the company “isn’t and hasn’t been an advocate for bitcoin.” She added that the move “seems like a sober, non-ideological move” on MassMutual’s part.
Another observer said that the move was a “woke” measure, pointing out that it was telling that MassMutual was “an insurance company whose only job has been to manage risk for 170 years” had decided to take such a bold bitcoin plunge.
A redditor, meanwhile, wrote that investments of this kind were one very rare, but “it seems new large investors are entering on a daily basis now.”
And one more optimistic pundit claimed that with BTC and ETH experiencing so many “watershed moments” it was only a matter of time before “Amazon, Apple and/or some other behemoth is going to get involved in bitcoin.”
“The big boys are putting their funds into bitcoin as a hedge against being called Neanderthals who missed the crypto boat. And let’s not forget that they all have millennial kids or grandkids rooting them on," Tania Modic, the managing member of Western Investments Capital LLC, her investment family office, told Bloomberg.
Exchanges Send More USD 1M Bitcoin Transfers as Investors Look For a Hedge
In 2020, exchanges have reportedly been sending 19% more bitcoin (BTC) transfers worth USD 1m or more, as investors are looking for a hedge against inflation and devaluation.
BTC has been rallying recently, even hitting a series of all-time highs before correcting downwards. The market is actually being driven by North American institutional investors, according to Philip Gradwell, the chief economist at blockchain analysis firm Chainalysis, as cited by Bloomberg. The largest investors come from the region, he said, while North American exchanges are getting net inflows BTC from other areas in the world as well.
"And the investors have been large — exchanges are sending 19% more transfers worth USD 1 million or more this year while bitcoin’s price has been above USD 10,000 compared with 2017 when it was trading above those levels," the article cited Gradwell.
Major companies, such as software company MicroStrategy and payments company Square, have already invested in the world's number one crypto, as did some well-known individuals like hedge fund manager Paul Tudor Jones.
As another, the most recent example of an investor looking for a hedge, UK-based Ruffer Investment Company allocated 2.5% of it Ruffer Multi-Strategies Fund to bitcoin, worth some USD 15m. "This is primarily a defensive move, one made in November after reducing the company's exposure to gold," said an update to shareholders. "We see this as a small but potent insurance policy against the continuing devaluation of the world's major currencies."
These are examples of companies that are "laying out the groundwork for how you add bitcoin to your balance sheet, how you should think about bitcoin as a substitute for cash," Seth Ginns, a managing partner at investment firm CoinFund, was quoted by Bloomberg as saying. Ginns also claimed that there is "a lot" of interest from hedge funds in BTC, and that a broader institutional adoption trend is likely to continue in 2021.
Crypto market analysis firm Coin Metrics also noted that, though avoiding bitcoin as a risky asset, many institutions endorsed it in 2020. Many find that the reason behind it is "the growing narrative that bitcoin could serve as a good hedge against inflation," particularly in the midst of the COVID-19 pandemic, as well as the combination of rising fiscal deficits and quantitative easing pushing "federal banks to their limits" and creating "conditions that could lead to a significant inflation rate rise."
On the other hand, bitcoin's "predictable and transparent monetary policy is ultimately what makes it a good potential hedge against inflation," said Coin Metrics. New bitcoins are issued every time a new block is mined, meaning there is a predictable, transparent and auditable supply schedule, and there is a limited supply of BTC.
It should then come as no surprise that, in a poll taken in early December, some 15% of fund managers surveyed by Bank of America said that BTC is the third-most crowded trade, according to Bloomberg. Shorting the USD is found to be the second-most crowded trade and "long tech" as the most crowded one.
Furthermore, US senator-elect Cynthia Lummis is quoted by Market Insider as saying that she's a hodler, and that bitcoin is a great store of value which can help with the US national debt as an "alternative path" should an initial plan to retire the debt fail. Additionally, "if we reach the point where we have overspent so much that things start crashing down, the black swan event occurs with any regard to any fiat currency...there is a backstop available to every government in the world and that backstop is bitcoin," said Lummis.
In 2020, exchanges have reportedly been sending 19% more bitcoin (BTC) transfers worth USD 1m or more, as investors are looking for a hedge against inflation and devaluation.
BTC has been rallying recently, even hitting a series of all-time highs before correcting downwards. The market is actually being driven by North American institutional investors, according to Philip Gradwell, the chief economist at blockchain analysis firm Chainalysis, as cited by Bloomberg. The largest investors come from the region, he said, while North American exchanges are getting net inflows BTC from other areas in the world as well.
"And the investors have been large — exchanges are sending 19% more transfers worth USD 1 million or more this year while bitcoin’s price has been above USD 10,000 compared with 2017 when it was trading above those levels," the article cited Gradwell.
Major companies, such as software company MicroStrategy and payments company Square, have already invested in the world's number one crypto, as did some well-known individuals like hedge fund manager Paul Tudor Jones.
As another, the most recent example of an investor looking for a hedge, UK-based Ruffer Investment Company allocated 2.5% of it Ruffer Multi-Strategies Fund to bitcoin, worth some USD 15m. "This is primarily a defensive move, one made in November after reducing the company's exposure to gold," said an update to shareholders. "We see this as a small but potent insurance policy against the continuing devaluation of the world's major currencies."
These are examples of companies that are "laying out the groundwork for how you add bitcoin to your balance sheet, how you should think about bitcoin as a substitute for cash," Seth Ginns, a managing partner at investment firm CoinFund, was quoted by Bloomberg as saying. Ginns also claimed that there is "a lot" of interest from hedge funds in BTC, and that a broader institutional adoption trend is likely to continue in 2021.
Crypto market analysis firm Coin Metrics also noted that, though avoiding bitcoin as a risky asset, many institutions endorsed it in 2020. Many find that the reason behind it is "the growing narrative that bitcoin could serve as a good hedge against inflation," particularly in the midst of the COVID-19 pandemic, as well as the combination of rising fiscal deficits and quantitative easing pushing "federal banks to their limits" and creating "conditions that could lead to a significant inflation rate rise."
On the other hand, bitcoin's "predictable and transparent monetary policy is ultimately what makes it a good potential hedge against inflation," said Coin Metrics. New bitcoins are issued every time a new block is mined, meaning there is a predictable, transparent and auditable supply schedule, and there is a limited supply of BTC.
It should then come as no surprise that, in a poll taken in early December, some 15% of fund managers surveyed by Bank of America said that BTC is the third-most crowded trade, according to Bloomberg. Shorting the USD is found to be the second-most crowded trade and "long tech" as the most crowded one.
Furthermore, US senator-elect Cynthia Lummis is quoted by Market Insider as saying that she's a hodler, and that bitcoin is a great store of value which can help with the US national debt as an "alternative path" should an initial plan to retire the debt fail. Additionally, "if we reach the point where we have overspent so much that things start crashing down, the black swan event occurs with any regard to any fiat currency...there is a backstop available to every government in the world and that backstop is bitcoin," said Lummis.