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Recent Comments From Fed’s Kashkari On Inflation Could Trigger Massive Bitcoin Buys

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Recent Comments From Fed's Kashkari On Inflation Could Trigger Massive Bitcoin Buys

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President of the Federal Reserve Bank of Minneapolis Neel Kashkari has said that a 4% inflation rate would not cause him any form of panic.

In an interview sponsored by the Economic Club of New York, Kashkari told American macroeconomist and Harvard professor Gregory Mankiw that his concerns would majorly depend on “why” inflation had hit 4%.

He noted that the most momentous approach would be to define the cause of the inflation—if it is caused by something temporary, “like a blockage in the Suez Canal”, or a factor that would linger for a lengthier period.

A higher inflation rate at this point would influence greater dependence on BTC—it is only logical, and we’ve witnessed it firsthand. 

Additionally, the fact that Neel Kashkari’s primary message reeks of alarming insouciance and points to the possibility of a higher inflation rate could put a lot of people on their toes—especially those who were unconcerned at first—inducing them to flee to a more secure store of value.

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Inflation concerns have been among the major proponents of the exodus from traditional fiat currencies to cryptocurrencies. The COVID-19 pandemic fuelled the printing of more money and drastically reduced the production of goods. This raised major inflation concerns and more people trooped to Bitcoin—an asset limited in supply and functions as a decent store of value—for financial security.

A lot of U. S. citizens are flocking to BTC as a result of inflation concerns amid the dispensation of several stimulus packages—a trend that has patently influenced the recent bullish patterns the asset has been seeing.

More precisely, a lot of billionaires and big investors have set their eyes on BTC, diversifying their respective portfolios to accommodate the firstborn crypto. On the list are American hedge fund manager, Paul Tudor Jones; Coinbase CEO, Brian Armstrong; Dallas Mavericks owner, Mark Cuban; Twitter CEO, Jack Dorsey among others.

Now, with recent hints at a higher inflation rate, it would not be inapt to assume these, and more would add more BTC to their portfolios for greater security.

Besides these notable personalities, a good number of U.S. citizens have expressed concerns about the increasing inflation rate in the country according to a CiviScience survey which saw 77% of 2,600 correspondents indicate they were at least somewhat concerned. This has and will quite possibly keep influencing a greater interest in BTC.

Those that have invested in BTC of late have recorded massive gains in short periods of time. Elon Musk’s Tesla made $1 billion from BTC in less than a month of investing $1.5 billion; MicroStrategy stock soared massively in response to its BTC purchases; furthermore, Square reported $4.7 billion in BTC sales in 2020.

While there are other digital assets to be considered, BTC has proven to be one of the best investments of late and will keep attracting more attention.

The global economic woes majorly triggered by the pandemic, the growing inflation concerns, and the favorable yields BTC investments have so far brought are chief contributing factors to more BTC adoption and it is not out of line to presume a significant increase now that there are indications of even greater inflation.


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://zycrypto.com/recent-comments-from-feds-kashkari-on-inflation-could-trigger-massive-bitcoin-buys/

Blockchain

PancakeSwap Lottery Hack: $1.8 Million in Question

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The Binance Smart Chain continues to see some of the projects being built on it exploited. The latest was done by someone who had access to the PancakeSwap admin address.

The Exploit

It’s an age-old problem with smart contracts: randomness. Solidity has no native random function, and all sources of randomness have to be on-chain. Projects use things like block headers, transaction hashes, and more to create legitimate sources of randomness, but none are truly random – they are merely pseudorandom.

This issue has led to exploits in the past, such as the recent Meebits exploit. The PancakeSwap lottery numbers were generated based on certain predictable conditions. The exploiter could use this information to predict the numbers in advance, thus draining the entire pool.

Who Did It, and Why?

The author of this post has provided detailed evidence proving that this may indeed have been foul play from the PancakeSwap admins, given that they created the contract, ‘found’ the exploit, and took the money using their own address.

While it’s true that the admin account did make use of the exploit and drain the funds, the author has a misconception: this was no foul play, and the funds weren’t stolen. While there has been no official statement from the PancakeSwap team on the matter, this event was clearly a white hat removal of funds from the contract, preventing a malicious actor from figuring out the bug and exploiting it.


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This is evident, first of all, from the fact that the PancakeSwap admins used their public known address to carry out the exploit. If they wished to drain the funds maliciously, they would have used an anonymous account. Secondly, the funds recovered from the lottery pool are being burned in batches by the admin address.

While an exploit is scary and never a good sign, the handling of this by the team instills some confidence, proving that PancakeSwap is willing to fix issues when necessary (even though they could have trivially taken the morally reprehensible path by stealing user funds).

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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/pancakeswap-lottery-hack-1-8-million-in-question/

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Crypto Scam Watchdog Group Wants To Get Back At Vitalik Buterin

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A crypto scam watchdog group wants to get back at Ethereum’s creator after he got rid of all of his SHIB token holdings. Now, the group created a token that dumps ETH for rival BNB as we can see more in our latest Ethereum news today.

The market for SHIB collapsed after Buterin got rid of all of his tokens and now one crypto scam watchdog group wants revenge. The Telegram group War on Rugs hates rug pulls but now they are trying to rug pull Ethereum. The group says it’s composed of developers and auditors that created the Rug Ethereum token in retaliation for the ETH co-founder Vitalik Buterin’s decisions o transfer millions of his SHIB tokens to charity while at the same time he crashed the market for the token:

“Vitalik rug pulled Shiba, innocent investors have been hurt. He should never be shown as a hero for this.”

Binance CEO Changpeng Zhao agreed to list the token on Binance’s Innovation Zone and called SHIB high risk. War on Rugs which looked at the smart contract said that this year Buterin had a huge stake in the token which meant it could be vulnerable. A rug pull is a type of scam where developers leave a project and take investors’ money with them. They are most common in the DeFi space where people can go to get crypto loans, earn interest, and trade assets without getting the help of a financial intermediary or insurance that intermediaries provide.

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Buterin didn’t develop the token so now the creators of the meme token sent trillions of the asset to Buterin who is reversed among ETH acolytes for his intellectual capacity and lack of concern for the things money can buy. Sending the funds to Buterin’s wallet lent the project a veneer of legitimacy while also decreasing the supply because he wouldn’t touch the funds. DeFi researcher Chris Blec said:

“If you consider a ‘rug pull’ to be quickly, without notice, removing a damaging amount of liquidity from a pool, then I guess that’s what Vitalik did. The fact that he never asked for the liquidity in the first place definitely changes things though.The SHIB token project was originally deployed with a specific set of risks and a whole lot of inherent problems. Vitalik didn’t change any of that. He simply exposed the token for what it was.”

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.dcforecasts.com/ethereum-news/crypto-scam-watchdog-group-wants-to-get-back-at-vitalik-buterin/

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Blockchain

Bitcoinist Book Club: “The Bitcoin Standard” (Prologue and Chapter 1)

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To lay the foundation for everything we’ll learn in the Bitcoinist Book Club, we had to start with “The Bitcoin Standard” by Saifedean Ammous. A fair amount of experts in the field recommend it as the first Bitcoin book people should read. Does that mean it’s too basic for the Bitcoinist audience? Not at all. Our readers might already be familiar with these concepts, but seeing them used as building blocks to construct a case for Bitcoin is a thing of beauty.

Here’s an introductory deep dive into The Bitcoin Standard and the first iteration of the Bitcoin Book Club.

But first…

About The Coolest Club On Earth

The Bitcoinist Book Club has two different use cases: 

1.- For the superstar-executive-investor on the run, we’ll summarize the must-read books for cryptocurrency enthusiasts. One by one. Chapter by chapter. We read them so you don’t have to, and give you just the meaty bits. 

2.- For the meditative bookworm who’s here for the research, we’ll provide liner notes to accompany your reading. After our book club finishes with the book, you can always come back to refresh the concepts and find crucial quotes. 

Everybody wins.

That’s it. Let’s get into it.

Related Reading | Gold Begins Breakdown Against Bitcoin, Triggering 90% Decline On Per Oz Basis

“The Bitcoin Standard” – Prologue

The book is divided into three parts. The first one discusses the concept of money and everything it implies. The second part goes back in time and analyzes the use of “sound and unsound forms of money throughout history.” The third, finally, gets into Bitcoin and the possibilities it brings to the table, “and analyzes the possible uses of Bitcoin as a form of sound money.”

The prologue also provides a solid definition of what Bitcoin is: 

In essence, Bitcoin offered a payment network with its own native currency, and used a sophisticated method for members to verify all transactions without having to trust in any single member of the network. The currency was issued at a predetermined rate to reward the members who spent their processing power on verifying the transactions, thus providing a reward for their work.

That means Bitcoin is, “the first demonstrably reliable operational example of digital cash and digital hard money.” This is huge. This is what the world needs. And, as we go through this book, we’ll find out exactly why.

The prologue cannot end without a familiar disclaimer: “This book does not offer investment advice.” Of course it doesn’t, and everybody involved resents the implication.

BTCUSD chart for 05/15/2021 - TradingView

BTC price chart on Bitstamp | Source: BTC/USD on TradingView.com

“The Bitcoin Standard” – Chapter 1: Money

The main function of money is as a medium of exchange. The second is as a store of value, and the third is as a unit of account. We need money because barter is not an efficient enough system for a complex society. So, “A good that assumes the role of a widely accepted medium of exchange is called money.” It doesn’t matter what it is and it doesn’t have to be “government paper.

What the market looks for in potential money is salability. That is, “the ease with which a good can be sold on the market whenever its holder desires, with the least loss in its price.” If that characteristic persists across time, then the asset displays an “ability to hold value into the future.” So, it becomes a store of value.

It therefore follows that for something to assume a monetary role, it has to be costly to produce, otherwise the temptation to make money on the cheap will destroy the wealth of the savers, and destroy the incentive anyone has to save in this medium.

If it’s difficult to produce new “monetary units,” that’s “hard money.” If it isn’t, then it’s “easy money.” Over time, people who use hard money will tremendously outperform people who use easy money. A constant increase in the supply will erode the purchasing power of the easy money, it’s as simple as that. The law of supply and demand never fails.

The ratio between the stock and flow is a reliable indicator of a good’s hardness as money, and how well it is suited to playing a monetary role.

With flow being the “extra production that will be made in the next time period.” These core concepts are the basis for PlanB’s Stock-To-Flow model. And this is the main reason that model works, “The higher the ratio of the stock to the flow, the more likely a good is to maintain its value over time.” Or to, you know… augment its value. 

It’s time to talk about liquidity, “the more people accept a monetary medium, the more liquid it is.” And acceptance throughout a community is the characteristic that allows for pricing to be, “expressed in its terms, which allows it to play the third function of money: unit of account.

So, money plays “the roles of medium of exchange to allow specialization; store of value to create future-orientation and incentivize individuals to direct resources to investment instead of consumption; and unit of account to allow economic calculation of profits and losses.

So simple, and yet it eludes even the smartest of us. 

Related Reading | A new year – new opportunities in crypto

A Critique, Because It Can’t All Be Positive

This sentence should’ve been heavily edited, it sounds like a bad joke:

Producers can specialize in producing capital goods that will only produce final consumer goods after longer intervals, which allows for more productive and superior products.

Five product-related words in a row? Come on! And, as a bonus, in the same paragraph:

The production of these tools stretches the duration of the production process significantly while also increasing its productivity.

Three more product-related words? That’s a total of eight in the same paragraph. Too much.

*

Stay tuned for the next installment of the Bitcoinist Book Club.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://bitcoinist.com/bitcoinist-book-club-the-bitcoin-standard-prologue-and-chapter-1/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoinist-book-club-the-bitcoin-standard-prologue-and-chapter-1

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