Listen to this week’s Bad Crypto podcast
It’s another strong week for Bitcoin. The dollar price rose 2.5% over the course of the week, although that’s still something of a decline from its recent high of over USD 13,400. At one point, Bitcoin fell 4% in 24 hours. At one point Bitcoin fell by 4% in 24 hours. But the upside remains optimistic and sees the price moving towards USD 20,000, possibly as early as March. That future price movement will depend on a number of factors, including whether banks follow in Paypal’s footsteps and accept cryptomonies; the size of the stimulus expected to counter the new coronavirus outbreak; and the pattern of the hash rate, among other factors. One point of volatility could come at the end of the month: this is when the BTC options market reaches a USD 750 million maturity. Meanwhile, large amounts of Bitcoin are being moved. A whale recently transferred $1 billion worth of Bitcoin. It cost him USD 3.58.
Despite that instability, Anthony Pompliano, the co-founder of Morgan Creek Digital, believes that Bitcoin has broken its correlation with the stock market and is now a safe haven for investors. Mike Novogratz agrees. He sees Bitcoin as a kind of digital gold: a good way to store value but not something that will work as a currency for the next five years. That opportunity, however, may only be available to Bitcoin. Altcoins are not doing so well; Ethereum, for example, seems relatively weak despite Bitcoin’s growing strength.
Some companies are doing well with that strength. The business intelligence firm MicroStrategy has made over $100 million in profits from its investment in Bitcoin. That’s more than it has done in business analysis. Visa may have difficulty tracking them. The U.S. Department of Justice is investigating the acquisition of Plaid, a financial technology company.
The government has also been investigating social networks. A Senate Commerce Committee hearing gave the CEOs of Google, Facebook and Twitter a partisan reprimand. One solution to the opacity of corporate content moderation, however, could be open source algorithms.
Senators have not been the only ones involved in partisan piracy. A group of hackers took over President Trump’s campaign website. The hackers said they had evidence showing the „criminal involvement of the president and his cooperation with foreign actors“ (sic)… and asked for funds.
In Japan, a group of companies has joined together to create a blockchain-based business data management system. In Siberia, a new Bitcoin mine will create 100 jobs. Singapore’s largest bank, DBS, is launching an exchange to swap trust money for crypto-currencies. And in China, charities are using blockchain to give donors confidence as they raise money for people in Wuhan, the epicentre of the coronavirus outbreak. However, in the United States, while Nasdaq CEO Adena Friedman has said that machine learning and cloud technology will drive developments in the capital markets, the adoption of Blockchain technology is „complicated“ and „will take longer“.
At least the art world is moving forward. From Blockchain-inspired art to the art of crypto-currencies and digital markets, artists and auction houses have found new opportunities in Blockchain technology. Another reason for optimism.
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