Will Bitcoin Mining Confidence Cause A BTC Price Spike To $28k?

Data from blockchain.com shows Bitcoin’s hash rate is at all-time-high. Last week, it peaked at 98.5 quintillion hashes per second. In addition, according to the mining pool, BTC.com, mining difficulty is also at its highest ever level at 11.9 T.
All in all, miner’s confidence, in Bitcoin, has never been higher, which is indicative of a project here for the long term. And, some might say, a bullish indicator.

Confidence In Bitcoin Has Never Been Higher
Hash rate refers to the computing power supporting the network by way of transactional processing. The higher the hash rate, the more secure the network. And Bitcoin’s hash rate has never been higher, having a steady upward ascent since December 2018.
Indeed, as pointed out by industry observers, Bitcoin’s hash rate is eight times what it was in December 2017, the height of the last bull run, demonstrating a growing belief in the original cryptocurrency.

Bitcoin's hashrate is now 8 times larger than it was during price's all-time high of $20,000 in 2017.
— Rhythm (@Rhythmtrader) September 12, 2019

This belief not only takes the form of more miners joining the network, but existing miners are also convinced enough to invest in more up to date equipment.
This comes off the back of Bitmain announcing the release of the new Antminer 17 series. The Antminer S17e and T17e models offer improvements to hash rate by way of upgrades to heat dissipation technology.
And, as claimed by Binance CEO, Changpeng Zhao, as hashing power increases from growing mining confidence, so does price. In a recent tweet, he said:
“Hashrate increase means more miners are investing in BTC, they are bullish. You know what follows?”
Game Theory And Price
This is a belief echoed by the financial reporter, Max Keiser, who, at the start of the month, made a prediction that Game Theory would play out to result in a $28k Bitcoin price.

#Bitcoin hash approaches 90 Quintillion. Per protocol’s hard-coded Game Theory, hash precedes price. $28,000 in play.
— Max Keiser, tweet poet. (@maxkeiser) September 1, 2019

In essence, Game Theory refers to the psychology of how and why people make decisions within a competitive environment. In other words, when applied to cryptocurrency, this relates to how to become the most profitable.
Founder of alternative investment firm, Otis, Michael Karnjanaprakorn put it like this:
“Miners are incentivized to be good actors on the network. If miners want to earn rewards, they have to abide by the rules. Otherwise, miners lose time, electricity, and processing power (costs). This is because mining has a recursive punishment system.”
And so, Game Theory and Bitcoin’s proof of work consensus mechanism, not forgetting the homeostatic mining difficulty algorithm, work in tandem to coordinate the efforts of people to ensure the best possible outcomes for all involved.
Keiser’s reference to Game Theory merely attributes the cumulative combined cooperation of miners to provide a secure network, adding to Bitcoin’s inherent value. And as more miners, and potential miners, take the stance of Bitcoin being a viable alternative to the legacy system, the more we can all benefit.
Photo by Dominik Vanyi on Unsplash
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Bitcoin as a Hedge Against Uncertainty Is An Overstated Narrative

Demand for Bitcoin in Argentina and Hong Kong is such that locals are paying up to 10% above market price.
The ongoing unrest in both regions has led to soaring Bitcoin demand, as investors look to hedge against the system. And once again, Bitcoin has shown itself to be the default option when times get tough. But is this narrative an accurate reflection of reality?
Argentina’s Financial Markets Tank On Election News
Following the defeat of President Mauricio Macri, in Argentina’s primary elections over the weekend, the country is teetering on the edge of a financial disaster.
Outgoing Argentine President Mauricio Macri. Image courtesy of Shutterstock.
The shock defeat to left-wing Alberto Fernández left markets reeling. With the country’s main index, the MERVAL, plunging 48% on Monday to a new YTD low.

The Argentine Peso is also under pressure, having lost 15% of its value against the US dollar as markets opened following the weekend result. One Peso is now worth just under two cents.
Argentine Peso against the US Dollar since 2010. Courtesy of XE.
Many saw this election result as a way for the people to express their dissatisfaction with Macri’s austerity policies. However, attention now turns to the incoming administration, which some believe are more likely to renege on the country’s IMF loans.
In response to the market reaction, incoming president, Fernández blamed President Mauricio Macri by saying:
“Markets react badly when they realise they were scammed. We are living a fictitious economy and the government is not giving answers.”
And so, reports are circulating that Argentinians are increasingly turning to Bitcoin as a way to protect their assets. Rayne Steinberg, CEO at Arca, highlighted this trend by saying:
“Bitcoin is becoming the asset of last resort in areas of extreme currency devaluation and political uncertainty. In the last week alone, Bitcoin is up approximately 50% against the Argentine peso and trading at a significant premium on local exchanges. And they are not alone, joining the ranks of Venezuela, Hong Kong and Turkey who have also experienced similar shocks.”
Anti-Government Protests In Hong Kong Are Intensifying
Elsewhere, continuing political tensions in Hong Kong have seen reports that Beijing is posturing a military response to protestors.
Although Chief Executive Carrie Lam backed down on proposals to extradite personal on China’s wanted list, civil unrest in the Special Administrative Region did not fizzle out as expected.

Indeed, the general mood of Hong Kongers is down to more than just changes to extradition policy. Lam’s extradition proposal was merely the final straw in what has been years of increasing uncertainty for the Hong Kong people.
Is Bitcoin The Default Alternative For Most?
And in times of uncertainty, Bitcoin has, on more than one occasion, been championed as a viable alternative. Thus, lending support to the idea that Bitcoin is a way to protect assets during times of economic and political uncertainty.
However, Economist, Alex Krüger seeks to calm what he sees as irrational thinking. Indeed, Krüger pointed out that, in reality, the USD is the default alternative and not Bitcoin.
And while Krüger is not anti-Bitcoin as such, he thought it necessary to bring to light exaggerations that play off of national tragedies.

I do believe everyone should have bitcoin. Argentines in particular. I am openly bullish bitcoin for multiple reasons. However, I don't think it is right to use a national tragedy to fabricate uninformed narratives.
— Alex Krüger (@krugermacro) August 12, 2019

And Krüger is not the first to say this. Indeed, while Bitcoin has provided a lifeline for some Venezuelans, there are reports that its popularity is greatly overstated.
José Rafael Peña Gholam, Editor at CriptoNoticas, pointed out the prevailing scam sentiment, as well as the lack of internet access, present considerable barriers to mass adoption in the country. He wrote:
“Bitcoin can play an important role for some people in Venezuela. But cryptocurrency adoption is not massive and should happen in a more organic way. A lot of foreign crypto enthusiasts simply don’t understand our country. Don’t try to fit Venezuela’s crisis into your favorite crypto narrative.”
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Bitcoin Is Winning Over The Skeptics, Mainstream Acceptance Is A Matter Of Time

Since its inception over ten years ago, Bitcoin has drawn a multitude of criticism. We, in the community, have had to contend with swipes about volatility, illegitimacy, and perhaps most cutting of all, that it’s a scam.

BITCOIN IS A SCAM!!Trump says so!!!#MAGA
— Haus (@_HausMaus) July 12, 2019

Unsurprisingly, it’s been an uphill battle to convince no-coiners of the merits of Bitcoin. But a decade on, it’s clear that cryptocurrency is more than a flash in the pan. And with that, it finally seems as though mainstream society is slowly being won over.
Bitcoin Acceptance At The Political Level
The Libra hearings this week saw several high profile US politicians share their thoughts on cryptocurrencies. The overall message was surprisingly bullish for Bitcoin. US House Representative Kevin McCarthy said:
“I like bitcoin … The real thing I like when it comes to bitcoin is I like blockchain because I like the security. I want the government to start using blockchain.”
US House Representative Kevin McCarthy is a fan of Bitcoin. Image courtesy of Shuttershock.
Also, Congressman Tom Emmer spoke about the missed opportunities in not embracing it sooner. He blasted the political system by saying:
“Bitcoin is now ten years old, now suddenly, magically, Congress is responding. In other words, after more than a decade, Congress has apparently started to care. I’m glad that after all these years Congress has decided to pay attention to the technology that could again, just like the internet, up end the way we do everything.”
And with that, it’s expected that the trickle-down effect will seep into the consciousness of the wider general public. Which will take time. However, such is the impact of Bitcoin now, that those already involved with financial markets, who were previously vehemently opposed to Bitcoin, have started to soften their stance.
Even Gold-Bugs Are Thinking Twice
When it comes to bashing cryptocurrency, few have been as open as Euro Pacific Capital CEO, Peter Schiff. Earlier this year, in a debate with Digital Currency Group CEO, Barry Silbert at the SALT Conference, Schiff saw fit to call Bitcoin holders suckers. As the discussion continued, Schiff said:
“Bitcoin isn’t legal tender, you can’t use Bictoin to pay taxes. The only thing giving Bitcoin value is because somebody thinks a greater fool is going to pay a higher price. It’s all the idea that it’s going to up and you’ll be able to sell it. But confidence is going to be lost. And Bitcoin is going to collapse, along with all th eother cryptocurrencies.”
Despite the hostilities, the crypto community, led by Morgan Creek founder, Antony Pompliano rallied together in an attempt to convert Schiff by sending him BTC. At last count, Schiff had received $1,900 worth of BTC.

The vocal Bitcoin hater @PeterSchiff recently admitted that he actually does own some Bitcoin.
Never listen to what they say, always watch what they do with their money!
— Pomp (@APompliano) July 5, 2019

And since then, Schiff’s attitude has softened. So much so that his Twitter account now includes insightful comments on Bitcoin, and the digs have stopped. Also, he recently Livestreamed a YouTube “Bitcoin Challenge,” where he invited viewers to change his mind. Indicating he is at least open to the idea of Bitcoin as a legitimate investment.

The breakout in Bitcoin's dominance is very bearish for crypto. It looks like Bitcoin’s dominance could soon rise to 80%. If you think this will happen in a Bitcoin bull market you’re crazy. Bitcoin could easily end 2019 with a loss, with altcoins leading the way down!
— Peter Schiff (@PeterSchiff) July 14, 2019

The three hour Livestream ended with Schiff still unconvinced. However, a live debate with Anthony Pompliano is scheduled for July 31st on CNBC. During the broadcast, he will have a face to face discussion with a Bitcoin expert, which was something missing from the Livestream.
And so, if the most ardent of skeptics are now thinking twice about Bitcoin, then surely mainstream acceptance is but a matter of time.
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Bitcoin Dominance Continues To Rise, Dashing Hopes Of An Altseason

As the price massacre continues from the weekend, altcoin holders face further anguish by way of rising Bitcoin dominance. As things stand, Bitcoin dominance is at 66%, a level not seen since April 2017.
Several analysts see this trend continuing, with predictions of dominance rising to the 70%-80% mark. The implications of which would put paid to a much-needed altseason. Nonetheless, despite the slide in prices, Bitcoin maximalists can find a crumb of comfort in this.
Market cap percentage split showing Bitcoin dominance at 66% — courtesy of CoinMarketCap.
Bitcoin Dominance Continues To Rise
Bitcoin is currently priced at around $10,300, but has been on a downward course for the past week or so. This follows the failure to breach strong resistance at $13,800, during the parabolic run-up late last month.
While this still represents a 170% increase since the start of the year, the hopes of an overspill into the alts remain somewhat subdued. Indeed, with Bitcoin dominance on an upward trend since January 2018, when it was at 35%, the cries for an altseason become ever more despondent.

So many people promised me altseason soon, while there hasn’t been any sign yet.Time to clean the following list Shorting unexperienced hype farmers$BTC $ETH
— Bullish Kid (@BullishKid) July 15, 2019

On that note, Lunar Express sees a continuation of this in the short term, at least. He said:
“I still expect some minor rise in BTC’s dominance during the next few days. I’m targeting the zone between 69.89% and 73.23% to see a top out. I prefer 69.89% though but we all know that Mr. Market has it’s own will so we have to wait and see where it strands eventually. Although, there are quite some signals that 69.89% could be the top.”

However, he drew attention to the fact that we are currently in the golden pocket zone. Which, last time around, in December 2017, saw a drop in Bitcoin dominance, and the subsequent beginning of altseason:
“Another notable thing is that we are inside the golden pocket zone. Meaning that we’ve retraced 61.8%-65.8% of previous alt season. Which is usual a good spot to expect a turn.”
Is Altseason Imminent?
And while Lunar Express concluded that altseason is imminent, others paint a more pessimistic view. For example, Chris Burniske, partner at Placeholder VC, subscribes to the belief that Bitcoin must first reach its all-time-high. And given the market slump of late, this will not happen any time soon.
In a comprehensive Twitter post, Buriske described the cyclical relationship between Bitcoin and the alts. He talked about altseason being driven by whales looking to invest their Bitcoin gains, but only when Bitcoin gains have been maximized:
“Here’s the cycle: $BTC rallies hard, majority of “alts” drop as BTC is the main liquidity provider to #crypto (right now) and no one wants to sell BTC. Value of “alts” in *BTC terms* then drops until whales choose to cycle into “alts.” Then…”

Here's the cycle: $BTC rallies hard, majority of "alts" drop as BTC is the main liquidity provider to #crypto (right now) and no one wants to sell BTC.
Value of "alts" in *BTC terms* then drops until whales choose to cycle into "alts." Then… https://t.co/lX9VZz5ecC
— Chris Burniske (@cburniske) May 10, 2019

This is a view shared by others, who correlate the timing of the last altseason to Bitcoin’s all-time-high. Twitter user, @BitBitCrypto said:
“Ok, here it comes – your holly grail. In 2017 Altcoins had their biggest ever Altseason AFTER bitcoin was making all time highs. If you’re looking for a big Altseason aim there!”

Ok, here it comes – your holly grail.
In 2017 Altcoins had their biggest ever Altseason AFTER bitcoin was making all time highs.
If you're looking for a big Altseason aim there!(Check eth or others for reference) pic.twitter.com/eivHLjyxAk
— ฿ (@BitBitCrypto) June 21, 2019

And so, given the expectation of rising Bitcoin dominance, in conjunction with the recent price slump across the markets, there is every possibility that altseason won’t be happening soon.
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Visa Invest $40 Million in Crypto Startup, is Mainstream Acceptance Here?

Electronic payments giant, Visa, along with VC firm, Blockchain Capital, have raised $40 million for a Series B funding round at digital asset custodians, Anchorage. The little-known startup seeks to advance institutional participation in cryptocurrencies. And this latest round of funding brings a total of $57 million invested since 2017.
While Anchorage is a relative newcomer to the space, both Visa and Anchorage are participating companies in Facebook’s Libra project. And despite the criticisms that beset Libra, that hasn’t stopped them, as well as a host of others, from wanting to get in on the crypto game.

Anchorage Provides Custodial Services With A Difference
The goal of Anchorage is straightforward. They intend to bring institutional investors to the space by providing secure custodial solutions. Co-founders, Diogo Mónica and Nathan McCauley wrote:
“We’ve started with solving the biggest problem facing our industry: making it safe for institutions to hold and use crypto. Since starting down this path in 2017, we’ve built the most secure digital asset custody solution on the market, and on-boarded some of the leading institutional investors in the space as clients, including Blockchain Capital, Polychain, Paradigm, and a16z crypto.”
Custodial services are nothing new. But Anchorage differentiates itself on a number of fronts, including participation features such as offering returns for staking and inflation, as well as support for on-chain governance.
But perhaps the most pertinent difference lies in their next generation cold storage solution. It relies on biometric software, as well as multiple approval systems, including human review, to secure the digital assets of clients. According to Mónica, this is particularly advantageous because:
“…investors gain greater access to and control over their holdings, enabling them to freely and actively participate in cryptocurrency networks.”
In this respect, the co-founders draw parallels with Visa, in that, Visa also provides “financial plumbing.” To which SVP and Head of Fintech at Visa, Terry Angelos, said:
“This investment is consistent with Visa’s global strategy to partner with and invest in emerging fintech companies…We’re pleased to add Anchorage to our growing investment portfolio.”
Visa’s Investment Indicates Growing Mainstream Acceptance
Not so long ago, legacy US financial organizations, including Citibank, JPMorgan, and Bank of America, moved to ban crypto related transactions. This had a trickle-down effect of smearing cryptocurrency in the minds of no-coiners.

Yesterday in Congress Rep. Sherman called for a bill to ban all #cryptocurrencies, due to concerns about illegal activities. This doesn’t surprise us, as his top campaign donations are coming from banks and credit card companies. #crypto
— Weiss Ratings (@WeissRatings) May 10, 2019

And while Visa had concerns over KYC and AML, they remained somewhat openminded when it came to cryptocurrency. Speaking to CNBC in October 2018, Visa CEO, Al Kelly talked about the threat of cryptocurrency to Visa’s business:
“Certainly not in the short to medium term in any way. And I think if we actually think that crypto starts moving from being more of a commodity to actually really being a payment instrument. If it goes in that direction, we will move in that direction. We want to be in the middle, Jim, of every payment flow in the world regardless of how it happens or what the currency is behind it. So if we have to go there, we will go there. But right now, it’s more of a commodity than a payment vehicle.”
Indeed, with Visa’s continual investment in crypto companies, it would seem as though that moment has happened. But more than that, Visa’s interest in cryptocurrency is an indication of growing mainstream acceptance. Which is a term that has often been banded about in the past.
But now, in the present, there is no denying the evidence that exists throughout the space. And while a number of significant hurdles still exist, most notably in a balanced global regulatory framework. It feels as though the worst is behind us.
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Why Winklevoss Twins Approve Libra as Crypto Despite Concerns

In a further show of support for Facebook’s crypto asset Libra, the Winklevoss twins waded into the discussion by giving their backing to the much-maligned project. Despite their chequered history with Mark Zuckerberg, the twins believe Facebook’s standing as an established tech company would be beneficial to crypto as a whole.
This comes at a time when Libra is facing open hostilities. Not least from political opposition, such as the French Finance Minister, Bruno Le Maire, who flatly condemned the project by saying it must not happen. Similarly, European Parliament member, Markus Ferber raised concerns over its potential to become a shadow bank. Whereas Bank of England Governor, Mark Carney holds a more amenable view, citing benefits to do with cross border efficiencies.
Libra executives likely expected a backlash. But the scale of opposition means they are now cutting back on their original plans. As such, it’s reported that Libra will exclude the Indian and Chinese markets.

The world’s largest social media company, @facebook has no plans to launch its "cryptocurrency" #Libra in India. https://t.co/IfPEUd2p9s
— NEWSBTC (@newsbtc) July 10, 2019

Winklevoss Twins Support Libra
Following the official launch of their whitepaper in June (since removed,) the Libra project has attracted a chorus of conflicting reactions. However, the Winklevoss twins have gone on record to say Libra will be good for crypto. In an interview with CNBC, they drew attention to Facebook’s influence by saying:
“[Libra] is very positive for crypto, a company the stature of Facebook talking about crypto currencies demystifies the word and makes people feel a lot more comfortable.”
And when questioned on how Facebook should approach lawmakers, ahead of its Senate Banking Committee meeting on July, 16th, the twins said:
“Work with regulators. Talk with them. You know, we definitely went through the front door, and we tried to educate the regulators and shape the regulation in a thoughtful manner because if you get the regulation wrong it can stifle innovation. But the right regulation allows for innovation to flourish, and we think we have achieved that right balance with New York.”
And while US authorities are progressive enough to discuss the matter, not every country is as openminded. Indeed, with draft proposals to criminalize crypto trading, India stands out as one place where Libra would not be welcomed.
Loss Of Central Bank Control
The raft of anti-crypto sentiment from the Indian government means their opposition to Libra should come as no surprise. Speaking on the matter, Economic Affairs Secretary, Subhash Garg said:
“Design of the Facebook currency has not been fully explained. But whatever it is, it would be a private crypto asset and that’s not something we have been comfortable with.”
Facebook responded by rejecting the roll out of Libra in India. According to Bloomberg, a Facebook spokesman said:
“There are no plans to offer Calibra in India. As you may know, there are local restrictions within India that made a launch of Calibra not possible at this time.”
But more than that, Libra’s stab at a global payment system has forced governments around the world to rethink. On this point, Facebook co-founder, Chris Hughes, sees the rise of Libra as a frightening prospect. In his piece for the Financial Times he wrote:
“Libra will disrupt and weaken nation states by enabling people to move out of unstable local currencies and into a currency denominated in dollars and euros. And managed by corporations. The fewer rupees or lira a country’s citizens hold, the less power the national central bank has to set monetary policy. Making it harder to stimulate the local economy in times of economic stress.”
With that in mind, the power shift from governments to corporations is a real possibility. And with the prospect greater globalization, are the Winklevoss twins fully prepared for what might be?
Featured Image from Shutterstock
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Bitcoin SV Soars To All-Time-Highs, But Is This Down To Manipulation By Whales?

News has emerged that the overwhelming majority of Bitcoin SV volume comes from just 100 transactions. In comparison, the equivalent figure for Bitcoin is less than 10%. As such, this raises doubts over the legitimacy of the BSV network and its standing as a top 10 coin.

86.4% of all Bitcoin SV volume yesterday came from 100 transactions. The BSV network is a total ghost town.
Despite that, network value is now $4.5 billion, up 300% in the last 45 days.
Totally insane. pic.twitter.com/5xS2qvNsJc
— Kevin Rooke (@kerooke) June 23, 2019

Bitcoin SV Fights Back From Binance Delisting
BSV has had a roller coaster ride this year. After being delisted from Binance, many assumed it would be game over for the project. But, in the face of industry-wide condemnation against the founder, Craig Wright, and his claim of being Satoshi Nakamoto, it has done well to recover.

Indeed, the past month has seen a steady upward trajectory, which coincided with the fake news of a Binance relisting. Nonetheless, when Binance CEO, ChangPeng Zhao publically refuted the story, the bitcoin SV market did not dump as expected, and it has continued on an upward trend ever since. The BSV price peaked yesterday at $243, an all-time high for the much-belied project.
It would seem as though BSV investors are confident in Wright, and the developments that are taking place at the project. Talking to BSV mouthpiece, Coingeek, at the recent Coingeek Toronto Conference, Wright gave an update on MetaNet, an incentivized internet which Wright believes will be a Google killer. He said:
“And we will have documents and blogs and training materials starting to come out from nChain, so that people can start building and developing the incentivized version to replace the internet. The new way of doing things. Not a system based on popularity, like Google, where it’s really about selling advertising, so you don’t care about the value of what you’re selling. You care about how many hits. We want people to get value for their money. So, they don’t go to the site because lots of people do; they go there because it has the best information.”

Median Transaction Value Shows Low Value Transactions On The BSV Network
All the same, when the top 100 transactions make up 86% of bitcoin SV volume, accusations of simulated activity cannot be ignored. One Twitter user, XRP_Tooch, was quick to point out that that this can happen during exchange re-arrangements, and that the data in isolation is meaningless:
“I dont want to call you out too hard for misrepresenting the data since Im not a BSV supporter. But this happens often when an exchange re-arranges their funds. You get a few massive transactions. This stat is misleading without more data about the addresses and their owners.”
At the time, this possible explanation, as noted by another Twitter user, still points to a situation where value is created by big centralized players with vested interests, and not the users of the network.

That still means that only exchanges are doing volume, not users.
— 𝖋𝖗𝖊𝖊𝖉𝖔𝖒 ᴏꜰ S̶i̶l̶e̶n̶c̶e̶ (@FreedomOfSilenc) June 24, 2019

Additionally, when comparing the wide spread between average transaction value and median transaction value, things do seems amiss. For example, in June BSV MTV ranged from $6.52 to as low as $2.09.

Whereas its average transaction values ranged from $14.7k to $4.2k for the same period.

One Reddit user put this down to BSV whales manipulating the market. They wrote:
“What both BCH and BSV tried to do was the big holders started moving without exaggeration 40% of the total supply each and every day (a huge outlier from other chains) to jack up the “mean” value and make it look like the chain is used (like the spam are real transactions with actual value). Of course they still are not fooling the “median” value calculation.”
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Stock Indexes Do Not Reflect Economic Reality, Will it Boost Bitcoin Sentiment?

A survey of fund managers, conducted by Bank of America Merrill Lynch, found pessimism at a level not seen since the last financial crisis. The on-going trade war and the expectation of an incoming global recession are driving fears of an economic collapse, which may strengthen the image of bitcoin as an uncorrelated asset.
Nonetheless, despite the gloomy outlook, all three major US market indexes are close to their all-time highs. As such, this contrarian position has led some to label the economy a game of smoke and mirrors. Taking this into account, some look to Bitcoin an alternative, but as a niche product, is that justifiable?

“Investors haven’t been this pessimistic since the global #financialcrisis of 2008.. @BankofAmerica @MerrillLynch Lynch survey… #equity allocations saw the second-biggest drop on record… #cash holdings jumped by the most since the 2011 debt-ceiling” https://t.co/khcICiH53x pic.twitter.com/NxONuVlUIH
— Chris Versace (@ChrisJVersace) June 18, 2019

Fund Managers Go Defensive
The survey of 230 fund managers, who manage $645 billion in assets between them, showed 87% thought the economy is in “late cycle.” This refers to the third phase, of a four-phase cycle, that precedes a recession.
As far back as January this year, talk from Wall Street was all about the “late cycle” and how to trade it profitably. And now, halfway through the year, with the economy teetering on edge, the focus has turned to defensive trading.
Merrill Lynch Chief Investment Strategist, Michael Hartnett spoke about the move into safer, more liquid assets:
“Fund managers are propelling a “huge rotation” into bonds and defensive sectors like utilities and consumer staples…While others are simply stockpiling cash, which saw the biggest jump since August 2011.”
Despite this, US market indexes are booming. According to Market Watch, all three major US market indexes are closing in on all-time-highs as is bitcoin and the rest of the crypto market:
“the Dow Jones Industrial Average DJIA, +1.35% stands less than 2% from its Oct. 3 all-time closing high, the S&P 500 index SPX, +0.97% is 0.6% from its April 30 closing record, while the Nasdaq Composite Index COMP, +1.39% is about 2.1% short of its May 3 record.”
Mistrust In Government
All the same, the divergence between sentiment and market pricing has not gone unnoticed. Deutsche Bank’s Chief International Economist, Torsten Slok, said:
“Either markets have to come down to where growth expectations are, or growth and earnings expectations have to move higher to justify current market valuations.”
But others take a more candid approach. Fundstrat co-founder, Tommy Lee hints at market manipulation being the reason for the opposing indicators.

Isn’t it puzzling that:– institutions most bearish since 2008. – retail cash balances highest since early 2010
Yet, in the face is massive pessimism, S&P 500 up 17% this year and within 2% all time highs. #BTD https://t.co/UxB3uVyixu
— Thomas Lee (@fundstrat) June 19, 2019

And with that in mind, skepticism over the economic system, and by extension the government that administers it is rife. The Pew Research Centre found that only 17% of those surveyed trust the government. A historic low going back to 1958.

Bitcoin as a Hedge?
But, is Bitcoin the answer? As an uncensorable, borderless, non-inflationary monetary system, it does possess the qualities that are the antithesis to the status quo. But we should be reminded that cryptocurrencies are wholly underdeveloped. And in the case of a recession, have never been tested.
Indeed, JPMorgan analyst, Jan Loeys sees cryptocurrencies taking off only in the case of an extreme dystopian future. He said:
“We have long been skeptical of cryptocurrencies’ value in most environments other than a dystopian one characterized by a loss of faith in all major reserve assets.”
Loeys goes on to say that blockchain technology is more of a complementary system, rather than something to replace legacy systems entirely:
“Blockchain is unlikely to re-invent the global payments system, but instead can provide marginal improvements to various parts of the process.”
Of course, these comments were made before JPMorgan announced their own cryptocurrency. However, going back to Loey’s commentary on a dystopian scenario, as witnessed during the Venezuelan hyperinflation crisis, Bitcoin trading volumes surged as a result of loss of faith in the national currency, the Bolivar.

Incredibly bleak moment milestone for Venezuela. The cost of one cup of coffee just hit 1 million Bolivars. https://t.co/Fbv2NqnAFl pic.twitter.com/LvziiWUynI
— Joe Weisenthal (@TheStalwart) June 28, 2018

With that in mind, while no-one can predict the future, we do know that people will turn to Bitcoin in times of uncertainty.
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Facebook Recruits Heavyweights Like Visa For its Crypto, Why Though?

Facebook has reportedly enlisted the help of industry heavyweights to support its up and coming crypto asset. This, it hopes, will answer concerns over privacy and centralization. The list of names includes Uber, Stripe, Visa, Mastercard, and Booking.com. But, is this enough to convince an already skeptical marketplace?

Differences between Facebook’s #GlobalCoin and #Bitcoin https://t.co/M5AR4naLh8
— FinTechtris (@FinTechtris) June 6, 2019

Facebook’s Crypto Asset Aims To Address Centralization Concerns
So far, the rumors around GlobalCoin indicate it will be a cross-border stablecoin payment solution. Some say it will target developing nations, in a bid to “bank the unbanked.” Blockchain advisor, Reza Jafery said:
“Many have tried to create a stable coin in the past with little success. However, Facebook definitely has the time, money, and resources to address the issue effectively. Facebook is offering people of impoverished nations a chance to take part in the global economy.”
However, scandal and Facebook are two words that are never far apart. And this is something Zuckerberg, and his team of executives, are all too well aware of. But in an attempt to foster trust and deal with concerns over centralization, Facebook will relinquish control of the crypto asset to third-party backers. According to The Information:
“With trust in Facebook marred by a series of privacy scandals—and growing scrutiny from antitrust regulators—the company believes that distancing itself from the token’s management will help keep regulators at bay. It could also help encourage the token’s broad adoption as a payment system, something that is more likely if oversight of the currency isn’t controlled by a single company, said the people briefed on its plans.”
The proposals put forward relate to licensing the right to operate the GlobalCoin network. According to insiders, Facebook will tender 100 nodes, and interested parties would each pay $10 million to control a single node. Consequently, the $1 billion of revenue generated will be used to back the project.
Some say the crypto asset of Facebook may operate as an alternative to the banking system (source: Rhythm)
Do You Trust Facebook?
Despite this, some critics remain unconvinced about Facebook’s foray into crypto. Analyst at eToro, Simon Peters doesn’t believe Facebook has the integrity to operate a crypto asset. With data scandals fresh on his mind, he asks:
“Has Facebook done enough to rebuild their credibility around privacy for users to trust them with their money?”
Also, ING’s Brosens and Cocuzzo don’t believe the operation of third-party nodes is enough to warrant claims of decentralization. They point to GlobalCoin being a closed source code by saying:
“With Facebook’s coin, there is one centralised party which issues and manages the coin on its own platform… So referring to GlobalCoin as a cryptocurrency is wrong, or at best irrelevant.
And while some believe GlobalCoin will bolster the crypto industry, by normalizing the tech for everyday people, it comes down to whether we can trust Facebook. Reza Jafrey ended his article “The Truth About Facebook’s Cryptocurrency,” by tackling this very question. He said:
“If Facebook were to achieve what WeChat and AliPay have achieved, but on a larger scale, it would be the most powerful entity on the planet. It would have the data and power to give us access to anything we could possibly want, right at our fingertips. The only concern I have is that if someone has the power to facilitate your access to something, they also have the power to take that access away.”

The Truth about Facebook’s Cryptocurrency (GlobalCoin). by @RezaJafery https://t.co/PWFw6KVaht
— Constantine (@Brujah03) June 14, 2019

And so, tinfoil hats aside, could you trust such an entity?
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Why This Investment Firm is Going Long on Ethereum, Bullish Prospect

Investment management firm DARMA Capital is going long on Ethereum.
Formed in 2017, the company manages $100 million worth of digital assets under its Ether Optimized Long fund for accredited investors and institutional clients. They are a CFTC regulated firm, with National Futures Association membership.
Having headhunted ConsenSys co-founder Andrew Keys, the firm is set to make a big splash in the world of investing. And their expansion is a significant indicator that institutional money wants to enter the space.

June 06, 2019 NEW YORK–(BUSINESS WIRE)–Andrew Keys joins Digital Asset Risk Management Advisors (DARMA Capital) as Managing Partner. DARMA Capital currently manages over $100M of digital assets since its public soft launch in early 2019. https://t.co/6IkQbedt4H
— HY Hyutte (@HyHyutte) June 7, 2019

Investment Firm DARMA Capital Plugging A Gap In The Market
DARMA Capital’s bullish take on Ether is welcome news for the entire industry. More so, the appointment of Andrew Keys, whose experience of developing infrastructure using the Ethereum platform, represents a real coup for the firm.
Speaking to BusinessWire, Keys outlined a vision that combines digital asset technology within a regulated environment.
“Our mission of providing Quantitative Systematic Alpha Generation of Web3 protocols will help corporations and institutions effectively manage risk in the nascent and volatile blockchain ecosystem. By registering with CFTC and having world class vendors such as Greenberg Traurig as our legal counsel. And Opus as our fund administrator, we plan to be the gold-standard of institutional investment.”
However, Keys will retain some involvement with ConsenSys, who have struggled as a result of the extended bear market. But, on speaking about his appointment at DARMA Capital, Keys talked about his desire to fill a gap in the market. In particular, the need to bring financial solutions to institutional investors. He said:
“My core competency has been in finance and my secondary competency has been in technology. There’s a void in the market, and this is a simple solution and I think a necessary missing piece of the market.”
Confidence In Ethereum
As an investment firm focused on managing blockchain risk, DHARMA Capital has set forth a thesis on investing in Ethereum. They have explicitly stated that their approach seeks only to deal with the most established digital assets.
To which, compliance with the highest standards of cryptocurrency regulation is possible.
As institutional investors need regulatory clarity, DHARMA Capital are confident that Ether will not present an issue. That is to say, they are confident that Ether is not subject to securities laws. To which they quote SEC Director, William Hinman’s speech at the Yahoo Finance All Markets Summit last year:
“based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions. And, as with Bitcoin, applying the disclosure regime of the federal securities laws to current transactions in Ether would seem to add little value.”
In addition, DHARMA Capital is further bullish on Ethereum as a result of rising demand from developers. They say:
“Developer adoption for Ethereum is steadily increasing and this directly impacts demand for ETH. All major cloud providers, including Amazon, Google and Microsoft, offer Ethereum as a service.”

Not only that, but the development of Ethereum’s blockchain capabilities is disrupting entire industries from advertising to telecoms. In short, DHARMA Capital believe Ethereum is poised for widespread adoption.
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The Bitcoin Bull Run Ended Before It Began Says Analyst, is Big Fall Likely?

Last week, the Bitcoin price peaked at around $9,100. Since then, it, along with the rest of the market, has been in decline. The question on everyone’s lips is, what will happen next? Renowned analyst, Willy Woo, on analyzing the Network Value to Transactions (NVT) ratio found a significant divergence between price and organic investor flow.
Several explanations have been put forward. But regardless of the reason(s), some see this as an indicator the bull run is over.

Presently the market price of BTC has outstripped organic investor flow unseen since the bull market mania phases of 2013 and 2017. Never before have we seen such a divergence so early in the bull market. pic.twitter.com/S3rfBKdlzL
— Willy Woo (@woonomic) June 6, 2019

What Is NVT?
The NVT is a metric to gauge value in crypto assets. It’s simply the ratio of the Market Cap divided by the volume transmitted by the blockchain. On explaining how to read NVT, Willy Woo said:
“When Bitcoin’s NVT is high, it indicates that its network valuation is outstripping the value being transmitted on its payment network. This can happen when the network is high growth and investors are valuing it as a high return investment. Or alternatively when the price is in an unsustainable bubble.”
Also, volume through the blockchain should not be thought of as payments. This is because Bitcoin is considered a store of value network, to which volume flowing through the network reflects investor flows. More investment activity creates more volume, and when this volume dries up, NVT moves higher than normal.
What Will Happen To The Bitcoin Price?
Woo’s tweet highlighted a significant difference between the Bitcoin price and investor flow. By establishing that volume flows are as expected, he concluded that this is the result of bots shorting the Bitcoin price. He said:
“With on-chain investor volumes in the normal range, the only explanation is from short term trade activity on the exchanges. This is a quant fund driven short squeeze devoid of any true investor volume.”
On predicting what will happen next, Woo is anticipating an end to quant fund trading, which will bring a further pullback in price. Real investors will then step in, at which point, the true bull market can begin.

I'm awaiting this exchange driven pump to blow off, a proper retrace, and only then do I think real investor flows will come in and drive the true organic bull market.
— Willy Woo (@woonomic) June 6, 2019

End Of The Bull Run?
Interestingly, Woo’s original tweet highlighted a level of divergence not seen since 2013 and 2017 bull runs. If taken at face value, this would imply the recent run of late was the peak.
The bitcoin price is in decline after a month of strong gains (source: coinmarketcap.com)
Josh Rager believes if the Bitcoin price struggles to stay within the high $7,000s, there is a strong possibility of a significant pullback. He said:
“People have asked if that was short term sell off and the price is heading back up. Due to the amount of volume, it’s more likely price has short term relief that can last hours or days before another push down to retest support. Price action isn’t a straight line :).”
How Accurate Is NVT?
The coming days will prove critical for Bitcoin, and the rest of the markets. And while the worst is expected, it’s also mindful to realize indicators, whether NVT ratio, RSI, MACD, etc, all have shortcomings. This is because they can never account for all of the factors involved with price movement.
In the case of NVT ratio, Dmitry Kalichkin, Chief Research Office at Cryptolab Capital, said:
“There is, however, another more fundamental weakness of NVT. It only takes into account total value of on-chain transactions, but it doesn’t factor in the number of transactions or the number of addresses (wallets) participating in these transactions. Let’s call this metric Daily Active Addresses (DAA).”
With that in mind, it remains to be seen whether the bull run finished before it began.
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Analysts: Stock Up On Fiat For Incoming Recession, Not Bitcoin

As the US-China trade war shows no sign of abating, talk of a global economic slow down is rife. And while some analysts attribute Bitcoin’s recent resurgence to uncertainty within legacy markets, there are those who disagree with that sentiment. Indeed, critics say Bitcoin makes a poor investment, even in times of economic uncertainty.
The bitcoin price is up 113 percent year-to-date against the U.S. dollar (source: coinmarketcap.com)
Some Say Bitcoin Rules In A Crisis
Although today has seen a 6% fall in Bitcoin price, that doesn’t detract from its stellar performance of late. Taking into account today’s market dump, Bitcoin is still up 112% from the start of the year.
Since the 1st of January, Bitcoin experienced months of sideways action until the 1st of April. Which saw this year’s first parabolic jump. Some attributed this to a fake news event on the SEC approving Bitcoin ETFs.

#Bitcoin Casually pumps on April 1st. *HONK* *HONK* pic.twitter.com/AeBJ9usZj6
— Crypto Charts [ŁTC] (@ChartsCrypto) April 2, 2019

But it was until the intensification of US-China trade talks, over a month later, that Bitcoin’s price took off. Speaking to the South China Morning Post, Garrick Hileman, Head of Research at Blockchain.com, said:

“We can’t be 100 per cent certain that bitcoin’s recent price increase is being driven by concerns over the trade tensions and declines in the RMB’s exchange rate as correlation does not necessarily equal causation.”

And while Hileman is correct in citing the primary tenet in statistics, that hasn’t stopped some from associating the two events. Hileman went on to say:

“But this is not the first time we’ve seen significant increases in the value of bitcoin taking place alongside yuan concerns. We also continue to see growing recognition of bitcoin as ‘digital gold’ and it being used as a hedge against various macroeconomic risks.”

This is a view echoed by David Cheetham, the Chief Market Analyst at XTB. Speaking to Yahoo Finance, he believes Chinese investors are buying Bitcoin to protect their wealth during these times of uncertainty.
Others Say Bitcoin Is A Poor Choice
Despite these assertions, some remain skeptical of Bitcoin as a hedge against the system. Mati Greenspan, Analyst at eToro, doesn’t see Bitcoin as a safe haven. Quoting John Authers’ comments on the volatile nature of cryptocurrency, Greenspan agrees that Bitcoin represents a poor investment choice.

Spot on as always @johnauthers from Bloomberg @business.
Bitcoin is not a safe haven. Unless you consider the entire fiat system unstable, which the current global market clearly does not. pic.twitter.com/8iqVbnvdWn
— Mati Greenspan (@MatiGreenspan) June 4, 2019

But interestingly, Greenspan gives the proviso of economic uncertainty in his tweet. Expanding on this point, Jan Loeys, Managing Director and Analyst at JPMorgan, speaking to CNBC said:
“We have long been skeptical of cryptocurrencies’ value in most environments other than a dystopian one characterized by a loss of faith in all major reserve assets.”
But even in the case of an economic collapse, Loeys believes fiat will succeed due to its familiarity and simplicity:
“Even in extreme scenarios such as a recession or financial crises, there are more liquid and less complicated instruments for transacting, investing and hedging, in part due to the scale afforded by fiat currencies’ legal tender status.”
Fiat Fares Badly In Recession
And while major economies are teetering on recession. The escalation of the US-China trade war has the rest of the world on tenterhooks.

China has yet to officially respond to Trump’s inclusion of Huawei on the Entity List. But any further escalations will likely impact legacy systems detrimentally. As cryptocurrencies came at the tail end of the last recession, there is no data to test either viewpoint. But one thing is for sure, in times of crisis, fiat has always fared badly.
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Bitcoin Investors Prefer To Speculate, Would it Hurt Merchant Adoption?

While major retailers have become increasingly receptive towards Bitcoin as a payment method, research from Chainalysis Inc shows that just over 1% of transactions relate to merchants, whereas speculation makes up the dominant use for Bitcoin. However, the idea behind BTC always related to parties transacting without an intermediary, and never as an investment. With that in mind, has BTC become a parody of itself?

Hodling Bitcoin Will Lead To Network Failure
According to Chainalysis Inc, in the first four months of this year, only 1.3% of BTC transactions related to merchants. And despite on-going infrastructure development over the past two years, the proportion of merchant related transactions has remained consistently low during this period.
The data shows the most extensive use relates to speculation via exchanges. And much like merchant transactions, this has also remained at a consistent level over the past two years. On analyzing the data, Kim Grauer, senior economist at Chainalysis Inc said:
“Bitcoin economic activity continues to be dominated by exchange trading. This suggests Bitcoin’s top use case remains speculative, and the mainstream use of BTC for everyday purchases is not yet a reality.”
And so, as things stand, there is a belief that BTC is too valuable to spend. Which, if taken to the extreme, creates a paradox within the Bitcoin ecosystem that will lead to its eventual demise. A Twitter user explained it as:
“If people do not use Bitcoin, there will be no transactions, with no transactions there would be no need for miners, without miners the blockchain will not function…”
No-one Wants To Spend Bitcoin
The issue of investment versus spending is further compounded by the tale of Laszlo Hanyecz, who paid 10,000 Bitcoin for pizza almost a decade ago. While he draws acclaim as a Bitcoin pioneer, his story is tinged with anguish over what could have been. And nobody wants to be the next Hanyecz.

every time when I think I am failed… I remember that story and it makes me feel not that bad…
— Sophie (@Sophielorennn) May 22, 2019

But, when Satoshi Nakamoto published his whitepaper for Bitcoin, the cypherpunk philosophy underlying the project was about rebelling against the system. And using technology to liberate people from the status quo.
However, in the present, BTC has become a beacon for investors hoping to get rich in fiat. The very thing Nakamoto expected to free us from. More than that, its perceived value has investors thinking in scarcity. And hoarding becomes the order of the day, which makes little sense considering how easy it is to obtain.
Balanced Approach To Managing Bitcoin
Instead, a more balanced approach to managing Bitcoin would ensure longevity of the network. This involves treating BTC as you would fiat. By hodling some and spending some. One Reddit user wrote:
“The point is that bitcoin would not have any value if everyone refused to spend their bitcoins. The only reason bitcoin has any current and future value is because people currently use it, and because it is expected that this usage will increase in the future. If you don’t want to use bitcoin, that’s fine, that’s everyone’s right, you can just let others spend theirs, but at least realize that all your expectations for future price is dependent on other people spending their bitcoins as intended.”

HODL is a Lambo motto, using Bitcoin is freedom incarnate. I'm not saying DONT HODL, I'm saying use it more then you hoard it… What good is your local coffee store accepting BTC if no one spends it?
— Kenn ₿rosak (@KennETHbosak) March 26, 2019

And so, Bitcoin was conceived as a payment system. But as a first generation blockchain, it lacks the qualities that make it a competitive payment system. However, that’s not to say scalability and speed concerns cannot be overcome in the future. All the same, what BTC has become is an affront to Nakamoto’s vision. Is it too late to go back?
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Bitcoin SV Surges 33% on the Day: What’s Triggering the Rally?

Following the backlash over Craig Wright’s claim of being Satoshi Nakamoto, which culminated in Binance delisting Bitcoin SV, everyone assumed it would die a death. However, Bitcoin SV is far from done. This morning, it was up 72% to peak at $244.
Bitcoin SV Volume Spikes On Fake News
Markets woke to the news that Bitcoin SV had risen to a new all-time-high. Today’s performance pips the previous high of $239 during mid-November 2018, which happened close to its inception date.
Data shows Upbit, Korea’s largest exchange, makes up the majority of the volume, at 16%. This is closely followed by OkEx and Huobi, which when combined account for a third of the total volume. This currently stands at $2.2 billion – another all-time-high for Bitcoin SV.

Some have attributed the spike in volume to “fake news” of Binance relisting Bitcoin SV. Dovey Wan, investor, and cryptoanalyst noted an image of that scenario, making the rounds on Chinese crypto media. She was quick to tweet about the incident, which Binance CEO, Changpeng Zhao has since confirmed as bogus.

The trick is easy and constantly used by many scams – all chinese crypto media circulate the breaking news via picture as above in wechat, instead of news link. So anybody can just use the same theme template and photoshop one like above
— Dovey Wan (@DoveyWan) May 29, 2019

Wright Files Copyright Claim On Bitcoin Whitepaper
In addition to “fake news” influencing Bitcoin SV’s price, Wright continues to maintain his claim of being Satoshi Nakamoto. His motivations for doing so are unclear. Alex Frenkel, General Manager of Kin Ecosystem, believes his actions are detrimental to Bitcoin. Speaking to Forbes, he said:
“The attempt to associate bitcoin to a single person or company works against the bitcoin idea. The power of bitcoin is in the masses holding it, and if it is associated with a single source, it can be blocked.”
And whoever Satoshi Nakamoto is, it’s clear from the circumstances of his last known actions; he wishes to remain anonymous. All the same, since the Binance delisting, Wright has intensified his efforts in legitimizing his claim.
Last week, Wright filed a copyright registration, with the US Copyright Office, laying claim to the original Bitcoin whitepaper. This saw the Bitcoin SV price spike 80% and was the start of a comeback, which has seen the project languishing in limbo since being dropped by Binance.
However, not everyone is convinced over the validity of Wright’s filing. Jerry Brito, Director of Coincentre, said:
“Registering a copyright is just filing a form. The Copyright Office does not investigate the validity of the claim; they just register it. Unfortunately there is no official way to challenge a registration. If there are competing claims, the Office will just register all of them.”
Lawsuit
Not only that, but Wright is following through with threats to sue influencers who challenge his claims. One such influencer is Peter McCormack, who recently updated the community regarding the libel case against him.
As things stand, McCormack must decide on whether to contest, or not, by tomorrow. The possible outcomes are to fight and win, to fight and lose, or not to contest the case, and pay the sum of £100,000 to settle the claim. Should McCormack fight and lose, the estimated costs could reach £1.5 million.

1/ People have been asking for an update on the legal case with CSW, so here it is. I am being sued for libel and have until Friday at 12.00 to make a decision. The claim is for £100k and includes a number of other requirements.
— Dr. Peter McCormack (@PeterMcCormack) May 29, 2019

Some in the community have rallyed to support McCormack and others like him. ChangPeng Zhao has set up a program to raise money for those affected by the litigation. And rather magnanimously, McCormack has refused the financial help, he said:
“Thanks for this CZ but I really don’t think people should donate their hard-earned Bitcoin to my fund. I got myself into, it is up to me to deal with. Also, it may cost more to fight it than what they want.”

CSW is picking on the people who have a hard time fronting their legal fees. How about we do a @BinanceBCF charity program to raise money from the community for legal fees for anyone CSW sues?@PeterMcCormack @rogerkver @jihanwu
— CZ Binance (@cz_binance) May 7, 2019

The events of the past few weeks have seen Bitcoin SV come back from the dead. While the source of the fake news is unclear, what is apparent is Wright’s unwillingness to concede claims of being Nakamoto. Taking this into account, we all need to be mindful of what we say.
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Retirees Do Not See Legitimacy In Bitcoin, Will Mainstream Adoption Happen?

Following a tough 18-month bear market, it finally seems as though the good times are right around the corner. With this, talk of cryptocurrency, within family and social circles, is also returning.
But despite the development of infrastructure and acknowledgment from both public and private authorities, Bitcoin still lingers as a dirty word. Especially amongst the older generation, who see fit to “lecture” friends and family over the pitfalls of investing in cryptocurrency.
Retirees Are Bitcoin Averse
As a volatile investment, it’s no surprise that Bitcoin ranks lowly with the risk-averse. Of which, those approaching retirement tend to struggle the most in “seeing the light.” A survey by Gold IRA Guide asked 1,000 US participants aged 50+ their thoughts on investing in Bitcoin.

The results show more than half (56.7%) are aware of Bitcoin but have no interest in investing. David Crowder, the author of the article for Gold IRA Guide, concluded this was due to a lack of education around cryptocurrencies. Yet, an equally likely reason and one not mentioned in his piece relates to the scam reputation that blights cryptocurrency.
And it’s understandable why “outsiders” would hold negative sentiment towards cryptocurrency. Tom Robinson, a co-founder of blockchain intelligence company Elliptic, spoke about the notoriety of cryptocurrency:
“It is true the reputation at the moment is that cryptocurrency is the payment means of choice for scammers, terrorists and criminals.”
Moreover, for mainstream acceptance to happen, trust needs to be established within the crypto space. And most see this as a problem with (lack of) regulation, and to some extent it is. However, a deeper level of change needs to happen concerning ingrained beliefs about what money is.
Attitude Towards Bitcoin Are Unfavorable
Lou Kerner, CEO of crypto events company Crypto Oracle, wrote an article about people’s aversion to cryptocurrency. He mentioned ten reasons why people do not believe in cryptocurrencies. One of which is the perpetuation of the idea that only governments issue currency. He wrote:
“It’s hard to get people to appreciate that they are better off believing in an algorithm, like the one that runs Bitcoin, than their own government. Even Wikipedia says “Currencies in this sense are defined by governments.”
And it is this conditioning, which stops people, especially those of the older generation, from accepting that Bitcoin has validity. As well as that, an overriding (misplaced) trust in legacy systems makes the task of legitimizing cryptocurrency difficult.

For those of you who think #bitcoin is a scam: everything sounds like a scam if you don't understand it.
— jgettbtc (@jgettbtc) May 28, 2019

One Reddit user shared his experience of discussing cryptocurrency with this father. Needless to say, the father was horrified with his son for dabbling in Bitcoin. The Redditor wrote:
“He went on a tirade about how I “never listen to him” and that I should have bought out a long time ago after he told me about some FUD article he read 2 years ago about how Bitcoin was a massive scam. He said if I want to give him and Mom peace of mind, I should sell now, invest all of the money into a Roth IRA, and never look back.”
Cryptocurrencies Remain Niche
As much as the crypto space has come on in terms of legitimacy, both from an institutional and regulatory standpoint, cryptocurrency remains a niche offering. With that comes misunderstandings, from the wider public, regarding the core concept of Bitcoin. Which is, building a fairer society.
For things to change, a collective “letting go” of the old world needs to happen. Sadly, this is too much to ask of those who find comfort in familiarity. With that in mind, Bitcoin will remain a dirty word until such time as the consensus attitude, on what constitutes money, changes.

1/2 People from the old world of traditional finance like to hate on our crypto community. Still, we’re here building things for each other, educating people, helping, and working together. We believe in a future where banks don’t decide for you.
— Age of Rust (@SpacePirate_io) June 23, 2018

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