<br> According to data from crypto analytic firm Nansen, Binance saw negative netflows of over $778 million on the Ethereum blockchain, with $871 million of inflows dominated by $1.6 billion flowing out of the exchange. “What could go wrong with crypto? Well, what could go wrong is we could have some really crappy regulation, which will slow things,” Michael Novogratz, hedge-fund manager turned bitcoin pioneer who founded financial firm Galaxy Digital, told attendees at bitcoin promoter Anthony Scaramucci’s SALT conference in New York in September. At the same conference, hedge-fund mogul Ray Dalio of Bridgewater Associates, who dabbles in cryptocurrencies, said he believed regulators would “kill” bitcoin if it became too successful. Regulation has to be taken into consideration here: we will need to drop the ponzinomics and build products that reflect our values if we want to convince regulators to take a sensible approach to regulating DeFi. But regulators and investors alike have long worried about the quality of Tether’s collateral, and whether the project might not be prone to collapse. Despite the crypto asset being extremely volatile, investors who have HODL’ed over the long haul have seen insurmountable returns. The paper by John Griffin, a finance professor at the University of Texas, and Amin Shams, a graduate student, is likely to stoke a debate about how much of Bitcoin’s skyrocketing gain last year was caused by the covert actions of a few big players, rather than real demand from investors.
If cryptocurrency were truly transparent, it might be possible to know how much leverage is currently in use in crypto markets. If left unregulated, he said at a recent conference, cryptocurrency markets “will not end well.” The Treasury Department is also considering regulating Tether – which is under criminal investigation by the Department of Justice – like a bank, as it has been used to avoid both money-laundering rules and taxes. “I would broadly describe what’s going on with El Salvador as they’re trying to make money-laundering the national business,” says Green, who contends that El Salvador Bitcoinxxo.com is at risk of becoming a narco state. In practice, it has been heavily correlated to the stock market, if a lot more volatile (going up more on good days and down more on bad ones). It was, in part, a response to Burry musing on Twitter about actually going short on bitcoin – that is, making a real-life financial bet that it will go down, rather than just talking about it. Once 21 million of Bitcoin have been minted, there will no longer be new supply of it rewarded to miners, and miners are expected to earn revenue by way of transaction fees.<br>>
As Roubini put it in the Goldman report, “Bitcoin and other cryptocurrencies have no income or utility, so there’s just no way to arrive at a fundamental value.” He also scoffs at those who call it digital gold. The Binance app provides you with the fastest and simplest way to buy and sell crytocurrency using your mobile device. “People buy it thinking that the next guy will come along and subjectively value it higher,” he says. Like more traditional commodities, bitcoin’s value comes from its programmed scarcity and from the fact that it takes energy to create and maintain, which was covered in more depth above. The fact is that most bears – including the ones quoted here – aren’t actually shorting bitcoin, even as they predict its demise. Green estimates that 40 percent of bitcoin’s real-world transactions are still criminal in nature (don’t forget, the first killer app was black-market bazaar Silk Road), including recent ransomware hackings. Bitcoin’s advocates tout it as an inflation hedge – but the jury remains out on that question. Until recently, China accounted for more than 50 percent of all mining, but it’s unclear how much – if any – of that capacity remains online now that the central government has banned t<br>n<br>try.
The U.S. government is now trying to figure out how best to regulate stablecoins and their potential impact on the broader financial system. The federal government treats bitcoin as property, and Gensler’s regulatory hawkishness has generally included exceptions for bitcoin itself. Even expectations of a China-like bitcoin ban in the United States might not be reality-based. While bitcoin has lately showed some ability to move independently of the S&P 500, posting gains even when the market declined, critics still see it behaving more like a meme stock than an established asset class. The Economist recently calculated that “90 percent of the money invested in bitcoin is spent on derivatives like ‘perpetual’ swaps – bets on future price fluctuations that never expire. The once-niche and -derisive term “fiat currency” – money issued by central bank fiat rather than, say, mined out of the ground as gold was – has, rather remarkably, gone mainstream as bitcoin and the worldview that inspired it have taken root in the public imagination. The first block of the now 12-year-old blockchain encodes mention of a news story about bank bailouts. 16060 adds the hardcoded block heights for previous soft forks as described in <br>news section.