Bitcoin has fallen by about 10% from near $40,000 to now testing support with it strongly bouncing off $34,200.
Ethereum and most other cryptos share the same story, with bitcoin somewhat ranging as it tries to clear off $40,000.
One reason why it may well be able to so is because more checks are to rain on USA as Joe Biden, the president elect, unveils a $1.9 trillion stimulus.
There’s an increase in child credits, tax credits, jobless benefits and a $1,400 giveaway for every American, including the spouses of undocumented immigrants.
Where these trillions come from is of course not something we ask anymore as budgeting the books is old fashioned nowadays, but Biden hinted at tax rises for the wealthy.
When that’s to be expected is not clear. For now it’s the spending bit as UK locks down its border while the government there blame the voters for the lockdown that didn’t work in March and didn’t work in November still not working in January.
So UK and Europe maybe need another trillion stimuluses as well, with money growing on trees in the wealthy west as semiconductor shortages due to the lockdowns leads to shortages in car production.
For some however all this printing is not a problem. The problem is that Tether is tokenizing the devaluing dollar, and instead of keeping all of it into such worthless paper, they’re sending some of it to bitcoin.
Mainstream media loves all this because their owners receive a big chunk of the fiat block reward, this $2 trillion that Biden is borrowing from them.
However, a bust Tether would actually be good for bitcoin, maybe even parabolically good.
The last time there were real concerns about Tether as it was cut off the banking system and USDt went off peg, bitcoin and other cryptos rose significantly.
The reason is simple. All these people wanted to get off USDt. To do so, they bought bitcoin or eth with the USDt they held. Bitcoin being a scarce resource, there were only so many available so its price went up.
Making this a strange FUD because if some tether explosion was true, then you’d expect bitcoin’s price to go up quite a bit.
This FUD on the surface and seemingly the opposite of FUD in substance apparently applies to the latest round that has today, January 15th, as an important date because the NYAG injunction expires.
How they’ve turned that into a bad thing is a mystery because as it happens, that injunction which constrained tether’s ability to lend within its own organization, like to Bitfinex, no longer applies after today. So tomorrow tether is in a better position because its operations are not constrained by NYAG’s now expired injunction.
“Tether and Bitfinex produced more than 2.5M documentation pages in response to requests from NYAG. Discussions are progressing well. Business as usual after the 15th of Jan,” said Paolo Ardoino, Tether’s CTO.
Making this presumably good news, but this is the same crowed that claimed in 2018 bitcoin’s 2017 rise was due to tether, with Bloomberg of course stating so in a most serious tone.
The then $2 billion tether marketcap led to the then $800 billion crypto marketcap, Bloomberg effectively said, with it doing so by some sort of incomprehensible magic.
They just don’t want to believe the fact the people now have an exit and they are using it to escape their rigged game.
You can join them, or you can believe their lies. To do the latter is easy. To do the former, you play their game but in your turf, or since there’s many of us, in our turf.
You can give you money to these individuals who have far too much already and generally use it to control you, except Musk maybe, or you can give it to the world computer and hope it liberates you or at least some of you.
The fact that the latter option exists is discomforting to control freaks, like Bloomberg, but the current unfolding would have been very scare indeed if that option did not exist.
So keep throwing money created from nothing through your make-believe plain databases and keep blaming little tether, we can’t hear you any longer because we’ve built our own world where we can see your rigged excel sheets.
XRP Lawsuit: On Ex-SEC Chair Jay Clayton’s Sudden U-Turn After Suing Ripple
Ripple’s Boss, Brad Garlinghouse, on Monday, left a few remarks via his Twitter handle on a Wall Street Journal’s post co-written by former US-SEC, chairperson, Jay Clayton.
The post which was co-written by Brent MacIntosh, the former Undersecretary of the US Treasuries for International Affairs, sought to preach the all-to-familiar stance of most crypto companies: ‘Crypto needs regulation, but it doesn’t need new rules.’
Garlinghouse spelled out surprise over Clayton’s turncoat comments that the US government has no concrete and adequate regulatory framework for the crypto industry. He further added:
“Cryptos, like nearly any new innovative technology, can be used for good or bad purposes. The problem is that US companies seeking to be compliant and use this tech for good are left in limbo (or for Ripple, worse!) because of a lack of a clear, predictable framework.”
Jay Clayton, in his last days at the SEC, pulled a shocking stunt on the crypto community, suing Ripple for what it believes is the undocumented sales of large-scale XRP digital assets to unidentified customers.
The bane of the case which was first announced in December last year is in determining if XRP – the digital currency of Ripple – is an investment contract or just another type of asset existing in digital forms. Assets bought and sold do not lie under the jurisdiction of the SEC, but investment contracts (also known as securities) are well within their powers to investigate, using the Howley test as a yardstick.
When compared to Bitcoin and ETH…
XRP, unlike fully decentralized Bitcoin, takes the shape of a centralized digital currency. This is because Bitcoin is still being mined by different people across the world, but Ripple pre-mined billions of XRP coins.
How The Case is turning out
The latest in the seven-month-old lawsuit is a winning streak for Ripple. Judge Sarah Netburn denied the SEC’s plea to examine all records of Ripple’s conversation with lawyers and expert advisers to determine if it knew what class of asset XRP is, and what violations of the SEC’s laws it may have knowingly violated. This signified a sigh of relief for the company which has called the lawsuit a hindrance to its growth and plans to go public.
Clayton further expressed that the foundational frameworks of the US laws suffice to build upon for crypto regulations, but the government has to be careful not to commit under-regulation or over-regulation.
Ethereum Co-Founder Anthony Di Iorio Bets Big on the Future of Cardano and Polkadot
Anthony Di Iorio, a Canadian entrepreneur and the co-founder of leading smart contract platform Ethereum, said that he believes in the potential of Cardano (ADA) and Polkadot (DOT).
In an interview with crypto proponent Anthony Pompliano, Di Iorio, who is also the CEO and founder of Canadian blockchain startup Decentral and crypto wallet Jaxx, revealed that he has a diversified investment portfolio featuring several top projects, including Cardano and Polkadot.
A Big Fan of Cardano and Polkadot
“Now I’ve kind of fallen back to just simplicity. I’m in a number of different projects, but the majority of my stuff is in the top projects. I’m a big fan of Polkadot, I’m a big fan of Cardano.”
Di Iorio went on to narrate why he was so sure of the future of these two projects. He had joined the Ethereum development team earlier in 2012 when he met Vitalik Buterin at a Bitcoin conference.
He has formed strong relationships with other co-founders of Ethereum, including Vitalik Buterin, Cardano’s founder Charles Hoskinson, and Polkadot’s current CEO Gavin Wood.
Di Iorio admitted that while he worked with these men, he knew that they were goal-oriented and would help push these projects further.
“Big fan of Charles, let’s say that. You know, taking some different approaches in the way that they’re doing things, much more on the academic side of what he’s done and bringing stuff forward. Real big fan of Gavin Wood… Knowing those guys from the days back at Ethereum – and knowing their drive and knowing their competitiveness and their smarts – I was able to see those projects for the last few years and know that they were gonna get to where they’ve gotten up to.”
Not Getting Lost in DeFi
Despite all the recent hype about DeFi, Di lorio pointed out that he is keeping his investments simple and investing in larger projects.
“Most of my stuff is in the top few things, Ether, Bitcoin, Cardano, Polkadot. I like Cosmos as well. And there’s a few others, but I’m not getting lost in all the DeFi stuff. I just think there’s not enough time, not enough energy. It’s a full-time gig to be running a lot of that stuff and keeping on top of stuff, so I’ve simplified my life quite a bit over the past few years.”
Featured image courtesy of Business Insider
What you should know if your bank is exposed to Bitcoin
On one hand, El Salvador recently became the first nation to officially declare Bitcoin as its legal tender, and on the other, several nations have recently opined that their indigenous banks face a ‘threat’ from the world’s largest crypto-asset. Nevertheless, the rise in the adoption of cryptocurrencies has been accompanied by regulators taking the fast-growing market seriously.
Banks will now face “the toughest” capital requirements for their holdings in Bitcoin and other crypto-assets under global regulators’ plans to brush off the insecurity offered by the “volatile” crypto-market.
Using money laundering, reputational challenges, and massive price swings as the base of their proposal, the Basel Committee on Banking and Supervision is in the news after it explicitly stated that the banking industry faced “increased risks” and “financial stability concerns” from crypto-assets.
Accordingly, they have now placed Bitcoin in the “highest risk” category. The aforementioned committee comprises a host of nations and global institutions as its members.
The Basel Committee isn’t alone, however, with a Bank of International Settlements exec recently commenting that El Salvador’s Bitcoin policy is an “interesting experiment.”
*BITCOIN PUT IN HIGHEST RISK CATEGORY IN BANK CAPITAL PROPOSAL
— *Walter Bloomberg (@DeItaone) June 10, 2021
What’s more, the panel proposed a 1250% risk weight be applied to a bank’s exposure to Bitcoin and certain other cryptocurrencies. Bloomberg’s estimates highlighted,
“In practice that means a bank may need to hold a dollar in capital for each dollar worth of Bitcoin, based on an 8% minimum capital requirement.”
However, stablecoins and other tokens tied to real-world assets are set for lower capital requirements. The report further highlighted,
“The capital will be sufficient to absorb a full write-off of the crypto asset exposures without exposing depositors and other senior creditors of the banks to a loss.”
The proposal did not specify any specific timeline, and hence, the implementation of these rules can take a couple of years. The proposal is, however, open to public comment before it comes into effect. It should also be noted that the committee said that the initial policies were “likely to change” several times as the market “evolves.”
Even though banks like HSBC have been cautious about stepping into crypto-trading, a few big names, like Standard Chartered Plc have announced their entry into the space.
As for Bitcoin, it fell by over 3.7% in the last 24 hours to trade at $35,418 at press time.
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