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Bitcoin isn’t as Anonymous as People Think it is: Cornell Economist

Bitcoin Anonymous Cornell Economist

Rate this post Eswar Prasad, an economist at Cornell University that says that Bitcoin isn’t as anonymous as people think it is. Other issues pointed out by him include Bitcoin mining being extremely bad for the environment, and that it doesn’t work well as a currency. Cornell Economist Points Out more Flaws of Bitcoin Besides Not Being Anonymous Leading cryptocurrency Bitcoin isn’t as anonymous as people think it is, according to a professor at Cornell University, Eswar Prasad, and formerly head of the International Monetary Fund’s China division. In an interview with CNBC on June 17, Prasad has highlighted the flaws of the flagship cryptocurrency. Firstly, he highlights that Bitcoin mining is an energy-intensive process and that it harms the environment and that it’s “certainly not good for the environment”. On the counterpart, he does highlight that Ethereum requires less energy than the flagship digital asset, saying: “That is going to be much less energy-intensive, and it could deliver a lot of the benefits that bitcoin was supposed to deliver. It could also make transactions much cheaper and quicker.” Secondly, he points out that BTC isn’t as anonymous as people think it is: “The main idea of bitcoin was to provide pseudonymity. But it turns out that if you use bitcoin a lot, and especially if you use Bitcoin to get any real goods and services, then it becomes possible eventually to link your address or your physical identity to your digital identity.” He reminds the U.S. government’s recent success in tracking and retrieving part of the Bitcoin ransom from the Colonial Pipeline ransomware attack has increased doubts about the security and non traceability of Bitcoin transactions. Bitcoin is a “Slow and Cumbersome” Medium of Exchange Lastly, he says that BTC doesn’t work well as a currency as it’s “slow and cumbersome” to use it to pay for goods and services and that the market is very volatile, adding: “So you could take a bitcoin to a store and one day, get a cup of coffee and another day, with the same bitcoin, be able to treat yourself to a lavish meal. So that doesn’t work well for the medium of exchange” According to him, BTC has become a speculative asset for people who hope it will appreciate in value, rather than because they want to use it as a payment mode.

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Eswar Prasad, an economist at Cornell University that says that Bitcoin isn’t as anonymous as people think it is. Other issues pointed out by him include Bitcoin mining being extremely bad for the environment, and that it doesn’t work well as a currency.

Cornell Economist Points Out more Flaws of Bitcoin Besides Not Being Anonymous

Leading cryptocurrency Bitcoin isn’t as anonymous as people think it is, according to a professor at Cornell University, Eswar Prasad, and formerly head of the International Monetary Fund’s China division.

In an interview with CNBC on June 17, Prasad has highlighted the flaws of the flagship cryptocurrency.

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Firstly, he highlights that Bitcoin mining is an energy-intensive process and that it harms the environment and that it’s “certainly not good for the environment”. On the counterpart, he does highlight that Ethereum requires less energy than the flagship digital asset, saying:

“That is going to be much less energy-intensive, and it could deliver a lot of the benefits that bitcoin was supposed to deliver. It could also make transactions much cheaper and quicker.”

Secondly, he points out that BTC isn’t as anonymous as people think it is:

“The main idea of bitcoin was to provide pseudonymity. But it turns out that if you use bitcoin a lot, and especially if you use Bitcoin to get any real goods and services, then it becomes possible eventually to link your address or your physical identity to your digital identity.”

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He reminds the U.S. government’s recent success in tracking and retrieving part of the Bitcoin ransom from the Colonial Pipeline ransomware attack has increased doubts about the security and non traceability of Bitcoin transactions.

Bitcoin is a “Slow and Cumbersome” Medium of Exchange

Lastly, he says that BTC doesn’t work well as a currency as it’s “slow and cumbersome” to use it to pay for goods and services and that the market is very volatile, adding:

“So you could take a bitcoin to a store and one day, get a cup of coffee and another day, with the same bitcoin, be able to treat yourself to a lavish meal. So that doesn’t work well for the medium of exchange”

According to him, BTC has become a speculative asset for people who hope it will appreciate in value, rather than because they want to use it as a payment mode.

READ  Grayscale Bitcoin Trust Sees Rebound as Institutional Demand Increase

#Bitcoin #Cornell University #Eswar Prasad

Source: https://www.cryptoknowmics.com/news/bitcoin-isnt-as-anonymous-as-people-think-it-is-cornell-economist/

Blockchain

Bitcoin Cash, Cosmos, VeChain Price Analysis: 01 August

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With Bitcoin soaring up to $42,000 today, other altcoins pumped too. BCH was preparing to test its immediate resistance, ATOM hiked by 8% overnight, and VET flashed signs of an uptrend. 

Bitcoin Cash

Bitcoin Cash, Cosmos and VeChain Price Analysis: August 1

BCH/USD, TradingView

Bitcoin Cash was trading at $554 on the back of a 2.1% gain over the last 24 hours. From the 4-hour chart, BCH depicted an upward movement towards its immediate resistance of $566. On failing to test the same, the prices could land near the $544 mark and then subsequently rest on $528. 

The Relative Strength Index despite noting a slight fall in buying pressure stayed well within the bullish territory. The green signal bars on the Awesome Oscillator depicted the presence of the bulls in the market.

Conversely, however, the MACD flashed red bars on the histogram at press time after a bearish crossover yesterday, although it was declining in size marking a reversal of the bearish sentiment on the indicator. 

Cosmos (ATOM)

Bitcoin Cash, Cosmos and VeChain Price Analysis: August 1

ATOM/USD, TradingView

ATOM displayed a considerable hike of almost 8% within a day. It alt was priced at $12.88 at press time. If it continued moving on the upside, the token might cross the immediate price ceiling of $12.96. 

If ATOM reaches the $12.96 mark over the upcoming trading sessions, it could expect strong resistance at $13.60. If the coin dips below its current price level, the support region lies at $12.00 and then eventually at $11.53. 

Overall technical outlook of ATOM remained quite bullish with the Relative Strength Index spotted above 60 despite a minor fall. Awesome Oscillator showed amplified green signals bars validating the same. 

Bollinger Bands widened suggesting chances of market volatility as prices kept touching the upper band. 

VeChain (VET)

Bitcoin Cash, Cosmos and VeChain Price Analysis: August 1

VET/USD, TradingView

VET had seen a period of consolidation a few days back, however, it rebounded from that and registered steady gains over the last few days. VET’s price at press time stood at $0.0913 as it recorded a 5.2% gain overnight. 

The technical analysis chart showed that VET witnessed a bullish trade, with the Relative Strength Index touching the overbought zone just 24 hours ago. At press time, however, the indicator fell below the overbought territory.

Chaikin Money Flow, over the last few days, registered increased capital inflows and was pictured in the bullish zone despite the minor fall in capital inflows at press time. 

Bollinger Bands opened up in anticipation of increased market volatility. With prices touching the upper band, the bulls might push the prices higher. The immediate resistance for VET lay at $0.93, failing to test that, the support region awaited at $0.0870 and then at $0.801.

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Source: https://ambcrypto.com/bitcoin-cash-cosmos-vechain-price-analysis-1-august

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What you should know about Paraguay’s push to welcome Bitcoin miners

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Of late, Paraguay seems to be offering Bitcoin miners exactly what they need and thus, it has emerged as the latest country many miners are migrating to.

China – Not the powerhouse anymore?

China’s wariness towards crypto is an open secret and so is its intention to drive most crypto miners away from the country. While China has historically been a powerhouse of the Bitcoin network, generating a huge chunk of its hash power, the recent crackdown on miners has fueled a migration.

While some chose Kazakhstan and the United States of America to set up shops, there is another country miners are now increasingly turning to.

Paraguay to the rescue?

Paraguay is home to two of the world’s largest hydroelectric dams in Itaipú and Yacyretá. In fact, it generates 100% of its electricity through hydroelectric power. What’s more, the country is also responsible for the generation of the most renewable electricity per capita in the world.

The damns generate nearly 8,500 MW of power, out of which Paraguay only consumes less than half while sharing the rest with Argentina and Brazil, among others.

This surplus can help miners choose Paraguay over any other location in the world. Benítez Rickmann, CEO of Paraguay-based mining firm Digital Assets S.A, shares this sentiment.

According to the exec,

“In China 6,000 MW were turned off and that coincides with what there is in Paraguay that has an energy surplus of 5,500 MW. It is very attractive for them.”

The road ahead

Right now, the country is welcoming eight China-based Bitcoin mining firms. Following the same, 500,00 machines will be installed in the country. One mining operation alone will set up 90,000 Bitcoin mining rigs, he added. In light of the surplus in electricity generation, miners and others might find some relief in mining Bitcoin with renewable energy in Paraguay.

On the legislative front, the country’s lawmakers are also working on a bill to regulate miners and attract foreign business.

Rickmann, an advisor to the aforementioned bill, is of the opinion that such efforts have been fruitful.

“The bill is designed for large mining companies to come to Paraguay. In China, 6,000 MW were turned off and that coincides with what there is in Paraguay, which has an energy surplus of 5,500 MW. It is very attractive to them. I have many names of companies from all over that are very interested in coming to Paraguay.”

This would be a crucial development going forward. Especially since Bitcoin hash power was hit badly when the Chinese exodus was in full flow.

As per data provided by Crypto Parrot, mining revenue surged by 179.4% over the last 30 days. Miners earned heavy amounts on 26 and 27 July with $36.49 million and $13.06 million, respectively. Furthermore, cumulative earnings were reported to be $841 million over the last 30 days.

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Source: https://ambcrypto.com/what-you-should-know-about-paraguays-push-to-welcome-bitcoin-miners

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German Institutional Funds Can Now Invest 20% of Portfolios in Crypto

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According to a new law coming into effect next week, some German investment funds will be able to hold up to 20% in digital assets. This comes amid growing demand from various institutions towards the industry.

Germany’s Next Crypto Move

As per a Bloomberg report from July 30th, Spezialfonds – German investment funds with fixed rules – will be able to allocate as much as 20% of their holdings in digital assets. Those funds reportedly manage around 1.8 trillion euros or $2.1 trillion and can only be accessed by local institutional investors like insurers or pension firms.

Tim Kreutzmann – an expert on cryptocurrencies at BVI, Germany’s fund industry body – pointed out that the majority of the funds would most likely prefer to start small at first:

“Most funds will initially stay below the 20% mark. On the one hand, institutional investors such as insurers have strict regulatory requirements for their investment strategies. And on the other hand, they must also want to invest in crypto.”

Even though the initiative comes after increased demand from numerous German institutions towards cryptocurrency products, Kamil Kaczmarski – an executive at the management consultancy firm Oliver Wyman LLC – opined that many local investors are still skeptical, mainly because of the infamous volatility. He argued that this trend would remain for the next five years.

According to a spokesman, Deutsche Bank AG’s asset manager DWS Group and one of Germany’s leading financial institutions – DekaBank – have both showed interest in investing in cryptocurrencies but so far have not made any decisions.


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Deutsche Bank is Keen on Cryptocurrencies

As CryptoPotato reported in May, the German multinational financial institution – Deutsche Bank – demonstrated its support towards virtual currencies. Back then, its CIO – Christian Nolting – highlighted the growth of the asset class experienced in the past few years and especially following the COVID-19 pandemic. Moreover, he believes cryptocurrencies are here for the long haul:

“I think that by now, it is clear that cryptocurrencies (in some form) are here to stay, but I would argue that they are far from a mainstream asset class.”

On the contrary, Nolting argued that CBDCs could harm digital assets and reduce their chances of serving as international payment instruments:

“A widespread introduction of CBDCs accompanied by higher regulation of cryptocurrencies could create a more challenging environment for crypto assets as some of their advantages compared to traditional financial assets would fade in the longer term.”

Deutsche Bank’s executive also compared Bitcoin to gold, saying that the primary cryptocurrency has all the qualities of the precious metal. He went further, stating that one day BTC “could ultimately replace gold as a store of value.”

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Source: https://cryptopotato.com/german-institutional-funds-can-now-invest-20-of-portfolios-in-crypto/

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