Connect with us

Blockchain

“Proof-of-Nuclear-Bombs”: a most reliable design for stablecoin utility (Part I)

Republished by Plato

Published

on

A neat chart on ZeroHedge on world reserve currencies. Before looking at previous currencies however, we start with what we know best, the USD.

Proof-of-Nuclear-Bombs & the Nixon Shock

While I was traveling from eastern Turkey to Georgia in 2015, I met some truck drivers coming from Iran to Uzbekistan at a local gas station since my car broke down. Thousands of miles away from my apartment in New York, they were all dealing in US Dollars from buying groceries, gambling to dealing with debts. I inquired, they responded: it was because the dollar was as liquid as the gas in their trucks, the source of their livelihood. How did this happen?

In the late 1960s, the US controlled more than ¾ of the global gold reserve, but was facing a deteriorating US balance of payments by competitive economies through a loss of power and confidence in the US economy. Even other “pegcoins” today are facing the Triffin dilemma that the US once faced.

Bitcoin seems to be getting a lot of heat for being an “economic experiment,” but the USD was no less of an experiment when Nixon’s administration ventured into uncharted territories of fiat currency issuance. While the story behind the elimination of Bretton Woods and an international gold standard is well known in the history books and public forum, there were lesser known unilateral events that had an equally political and economic impact: namely the US’s unprecedented control of the world’s oil circulation.

Separate events may have indirectly contributed to an oil-focused imperialism through various initiatives, such as the development of SWIFT, that slowly made all transactions and oil trades to be settled in USD: an “oil-USD payment restriction.”

Counterpoints: I do not want to further perpetuate the debate about the petro-dollar theory in the present economy, there seems to be some consensus that this concept was a defendable theory at a previous point of time. Nevertheless, all of the oil continuing to be settled in USD seems not to be a coincidence, nor did the future involvements in the Gulf War, Afghanistan and Iraq. In reality the Proof-of-Nuclear-Bombs is a double entendre: it is not to show that the US is strong in order to reinforce the USD value, but rather it is the fabricated “proof” that can be used to prove that Middle East countries have stockpiles so the US government can take over the oil circulation. If I get asked to have a superpower, it wouldn’t be “nuclear power” or the “ability to control perceived reality,” but I’d like to have the “United States.”

There are a few qualities about oil that I want to highlight:

– Essential for industry/economy

– Scarce resource

– It is expendably used and not recyclable

– Essential for the human well-being in the modern age

The more basic questions arise, why is oil so vital from a modern anthropological perspective? Oil is the basis of mobility, industry and production in a consumer-driven environment, and to not have control over its circulation is to have no hold over one’s own economy and therefore currency— it is a human need, and every day that the US did not control this commodity was another day that they saw their mortality in the hands of the producers. This goes beyond economic well-being, military supremacy or strength. This constrained, mutually critical resource was a centerpiece of the world when the USD reinforced its status as the reserve currency, and this is also true in a world before a dependence on oil but for other mortality-revealing commodities. If the US already had its dollar face used to settle this resource, why proxy through gold? More importantly, this was a good that was used, and individuals needed a perpetual flow for their own well being — the USD was settling not just a commodity, but the flow of the river that fed the village every season. While this may have catalyzed the world to begin depending on USD fiat, I do not necessarily claim that it is the continued truth that we see today. The United States in the 1970s now controlled what I introduce as the mortal sink, or oil in the case of USD.

Source: https://tokeneconomy.co/proof-of-nuclear-bombs-a-most-reliable-design-for-stablecoin-utility-part-i-e7f338d7df16?source=rss—-fbbd350c08fc—4

Blockchain

Bitcoin price hits $50K after bullish outlook from Citigroup and Goldman Sachs

Republished by Plato

Published

on

On March 1 cryptocurrency investors woke up to the sight of Bitcoin (BTC) rising from it weekend correction to $44,000 as the market found its bullish momentum and altcoins rebounded from their swing lows.

Data from Cointelegraph Markets and TradingView shows that the price of Bitcoin increased 16.6% from its low of $43,504 on Feb. 28 to the $50,000 level which bulls are attempting to flip back to support.

BTC/USDT 4-hour chart. Source: TradingView

Earlier in the day, MicroStrategy CEO Michael Saylor tweeted that the firm had purchased another $15 million worth of Bitcoin, bringing its total holdings to 90,859 BTC and further demonstrating that institutional demand for the top cryptocurrency continues to grow as firms buy each dip’

Analysis of key BTC price indicators also shows that bulls were eager to buy the $43,000 retest which occurred over the weekend.

Not every analyst is bullish

Bitcoin’s surge above $49,000 has some calling for new all-time highs in the near future, but according to veteran analyst Peter Brandt, nothing is certain when it comes to the cryptocurrency market.

Today Goldman Sachs announced that it would restart its crypto trading desk and Brandt was quick to tweet the following chart and point out that its launch didn’t work out so well for the cryptocurrency market in December 2017. 

BTC/USD 1-week chart. Source: Twitter

According to David Lifchitz, Chief Investment Officer of ExoAlpha, it’s still “too early to tell” if the pullback in Bitcoin is over but $44,500 appears to have provided strong support.

In terms of whether the top cryptocurrency could breakout to new highs in March, Lifchitz said he’s uncertain on exactly what might happen as March is historically a bearish trading month for BTC.

According to Lifchitz, tax season in the U.S. could put bearish pressures on the market as investors may need to “sell some of their holdings to pay for earlier realized capital gains.”

From a bullish perspective, the 20% correction during the second half of February may have signaled an “early start” to the usual March weakness, with the worst of the downturn already transpiring.

Lifchitz said:

“Despite the 20% pullback, we’re still in an upward sloping trend since the October $10K breakout. The big unknown is what the miners will do as they are net sellers. They are the real short-term risk.”

Analysis of Glassnode’s Net Unrealized Profit and Loss (NUPL) metric shows that while both 20% corrections experienced during this cycle have created the “signature sideways and choppy” price action typically seen during bull markets, buyers have been stepping in sooner than they had in previous bull cycles and fewer long-term holders are willing to sell their BTC. 

Bitcoin Entity-adjusted NUPL. Source: glassnode

Steadying yields help to stabilize traditional markets

The traditional financial markets also rallied on Monday as Treasury yields stabilized and optimism related to the COVID-19 vaccine rollout boosted investor sentiment about the future of the global economy.

The S&P 500, Dow and NASDAQ all closed the day in the black, finishing up 2.38%, 1.95% and 3.01% respectively. The strong performance from each index occurred as global central banks world continue to reaffirm commitments to accommodative policies that will support the global economic recovery.

Altcoins also recovered their recent losses as Bitcoin price broke out to $50,000.

Daily cryptocurrency market performance. Source: Coin360

Binance Coin (BNB) was the best performer in the top 10, increasing 21% to $248, while Ethereum (ETH) saw its price rise 9.46% to $1,525. PancakeSwap (CAKE) and Fantom (FTM) both rallied price 36% and currently trade for $12.30 and $0.558 respectively.

The overall cryptocurrency market cap now stands at $1.52 trillion and Bitcoin’s dominance rate is 61%.

Source: https://cointelegraph.com/news/bitcoin-price-hits-50k-after-bullish-outlook-from-citigroup-and-goldman-sachs

Continue Reading

Blockchain

Goldman Sachs Plans to Relaunch Its Cryptocurrency Trading Desk

Republished by Plato

Published

on

Reports on Reuters today revealed that American multinational investment bank, Goldman Sachs, will offer bitcoin futures and non-deliverable forwards on behalf of its clients starting next week.

According to sources familiar with the matter, the move is part of the bank’s effort to take advantage of the fast-growing crypto space, which is gradually becoming an investment of choice for institutional players. 

Notably, the bank is also considering developing a Bitcoin Exchange-Traded Fund (ETF) soon as part of its commitment to fully venture into the industry. 

Based on this regard, the unnamed source noted that Goldman Sachs had already “issued a request for information to explore digital asset custody.” 

Goldman’s First Shot At Crypto

In late 2017, Goldman Sachs became the first Wall Street biggest firm to ever consider offering crypto-related products, as the bank was planning to open a cryptocurrency desk.

At the time, the Wall Street financial institution was working on how to address security challenges associated with the business, as well as how it would custody the assets.

Plans were on the way for the launch slated for late 2018 when reports emerged in September that same year that the bank has chosen not to offer crypto-related investments. 

Sources said that the bank dropped its crypto plans due to the regulatory concerns associated with the industry, with regulators breathing down the neck of most projects. 

The issue of regulatory uncertainty has been the major stumbling block that hindered several institutional players from getting involved with cryptocurrencies. 

Interestingly, there have been clearer regulations in recent times luring institutional investors like Microstrategy and Tesla. 

The entrance of these large corporations has given other institutional investors the greenlight that crypto is safe compared to how it was viewed in 2018. 

Thus it could be the reason Goldman Sach is making plans to restart its cryptocurrency trading desk in earnest.

A Change Of Heart? 

However, Goldman Sachs’ second shot at launching a cryptocurrency trading desk comes less than a year after the bank told its clients during a conference call that bitcoin and cryptocurrencies are not an asset class.

Reports at the time suggested that part of the reason for the call was to discourage its customers from including bitcoin and cryptocurrencies in their portfolio.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Source: https://cryptopotato.com/goldman-sachs-plans-to-relaunch-its-cryptocurrency-trading-desk/

Continue Reading

Blockchain

Bitcoin Still Has an Uncertain Future: Citibank Analysts

Republished by Plato

Published

on

In a 100-page deep-dive report dubbed “Bitcoin, at the Tipping Point,” Citibank’s global perspectives and solutions team noted that the cryptocurrency could potentially “become the currency of choice for international trade.”

The analysts acknowledged that the massive interest shown by several large institutional investors like Tesla, Microstrategy, and PayPal is one of the major propellants for the digital asset gaining mainstream adoption.

The team further noted that several other factors, including a wide range of digital payment options like stablecoins and Central Bank Digital Currency (CBDC), could also increase the chances of bitcoin adoption for cross-border settlements.

An Uncertain Future

The report also pointed out that a side-by-side comparison of the risks associated with bitcoin and the opportunities it presents makes it very easy to conclude that the digital asset is at a tipping point.

They wrote:

 “There are a host of risks and obstacles that stand in the way of Bitcoin progress… Weighing the potential hurdles against the opportunities leads to the conclusion that Bitcoin is at a tipping point… Bitcoin’s future is thus still uncertain, but developments in the near term are likely to prove decisive as the currency balances at the tipping point of mainstream acceptance or a speculative implosion.”

Bitcoin Going Mainstream Already 

The concluding part of the report quoted the famous philosopher, Schopenhauer, who said,

“All Truths pass through three stages, first it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.”

The team states that the positive change in stance on issues about bitcoin by several financial institutions very well prove these words of Schopenhauer, which he said more than 150 years before the bitcoin idea was born.

Several banks had actively shunned bitcoin in the past, arguing that it has no intrinsic value as it is allegedly backed by mere speculations from its proponents.

However, bitcoin’s immense growth has forced its former critics to re-evaluate their stance and join the bitcoin adoption trend. Some of the biggest banks in the world have started offering bitcoin services to their clients.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Source: https://cryptopotato.com/bitcoin-still-has-an-uncertain-future-citibank-analysts/

Continue Reading
Blockchain4 days ago

Gemini collaborates with The Giving Block and others, adds donations option

Blockchain4 days ago

NextGen Blockchain Platforms Self-Organize to Win Government Contracts

Blockchain1 day ago

Google Finance adds dedicated ‘crypto’ tab featuring Bitcoin, Ether, Litecoin

Blockchain4 days ago

What Coinbase Going Public Could Do For Crypto

Blockchain4 days ago

Crypto Investment Fund to Sell $750M in Bitcoin for Cardano and Polkadot

Blockchain3 days ago

This was avoidable – The lost Bitcoin fortunes

Blockchain5 days ago

Tezos, IOTA, Dash Price Analysis: 25 February

Blockchain2 days ago

Economist warns of dystopia if ‘Bitcoin Aristocrats’ become reality

Blockchain5 days ago

Coinbase public listing filing details 2020 revenue, major a16z stake

Blockchain2 days ago

Korean Government To Levy Taxes On Bitcoin Capital Gains Starting 2022

Blockchain2 days ago

XRP, STEEM, Enjin Price Analysis: 27 February

Blockchain2 days ago

Inverse Finance seizes tokens, ships code: Launches stablecoin lending protocol

Blockchain1 day ago

NBA Top Shot leads NFT explosion with $230M in sales

Blockchain1 day ago

Polkadot, Cosmos, Algorand Price Analysis: 28 February

Blockchain3 days ago

‘Bitcoin could reach $1 million or $1, and may do both of those’

Blockchain2 days ago

Here are 6 DEX tokens that have seen exponential growth in 2021

Blockchain2 days ago

6 Questions for Kain Warwick of Synthetix

Blockchain2 days ago

3 reasons why Reef Finance, Bridge Mutual and Morpheus Network are rallying

Blockchain2 days ago

How KuCoin Shares (KCS) Can Create a Stream of Passive Income

Blockchain2 days ago

Litecoin, Monero, Dash Price Analysis: 28 February

Trending