Recently, there has been an uptick in the numbers of notable people publicly discussing some form of ban on crypto assets such as Bitcoin. The latest comes from Germany, where one of the nation’s left wing parties is in favour of attempting to outlaw digital currency across Europe.The news follows similar calls by US Congressman Brad Sherman and respected economist Joseph Stiglitz. Lacking technical backgrounds, however, it is unclear just how much any of these crypto critics have considered the logistics of enforcing such a ban.German Leftists Die Linke Call for a Ban on Bitcoin and CryptoAccording to domestic tech and business news source, Gründerszene, a left wing German political party has just released its European Parliamentary election campaign manifesto. The elections will be held on May 26 and, as part of the “Die Linke” (The Left) party’s policies that are “against an EU of millionaires”, there is a plan to outlaw Bitcoin and other crypto assets.The main gripe against digital currencies appears to be on environmental grounds. The fact that some use a large amount of electricity is an issue for the German leftists. This may mean that proof-of-stake digital coins and those using other consensus finding systems than proof-of-work are deemed permissible by the party.Like the others that have called for a ban on crypto assets like Bitcoin in recent weeks, Die Linke gives little explanation as to how it plans on achieving such a ban. Bitcoin is a decentralised network. There is no central weakness for authorities to come after.Even if all of Europe outright banned it tomorrow, digital assets would survive. They might have to evolve to survive, becoming more stealthy and private, but that would only make them even more difficult to police.Interestingly, one of those calling for a ban recently, US Congressman Brad Sherman, himself inadvertently stated exactly why Bitcoin would not die – the fact that it weakens US hegemony. Sherman stated, remarkably candidly, that a large part of his nation’s privileged position in the world comes from the fact that the US dollar is used a world reserve currency.the video of @BradSherman‘s call to ban bitcoin is the best advertisement for the digital asset i’ve seen in quite some time (HT Oskar_Koch on Reddit) https://t.co/KeGCO0uXSh pic.twitter.com/VDF6XxBFre— Kyle Torpey (@kyletorpey) May 9, 2019Bitcoin offers an alternative that many nations that are currently trying to reduce their dependence on the dollar might find attractive. That was the precise reason Sherman gave for wanting “to nip [Bitcoin] in the bud”. Given that nations such as Iran, North Korea, Russia, and China would all like US dominance to wane significantly, it is incredibly difficult to believe that these states would join Europe or the US in some clampdown against the currency.Those who understand how Bitcoin works also understand that only such a universal ban, enforced equally around the world, would stand any chance of success. That said, even with global cooperation, wiping crypto assets from the face of the earth is still highly unlikely to succeed.Rather more likely would be a scenario where a partial ban is attempted and Bitcoin goes underground by integrating privacy-focused upgrades rapidly. This would effectively stifle any legitimate use of the currency and transform it very quickly into a drug-dealing, money-laundering, human-trafficking mega-tool for international criminals and anyone else who refuses to endorse such draconian, monopolistic policies. Related Reading: Bitcoin Flavour of the Week Again: Crypto Back in Mainstream MediaFeatured Image from Shutterstock.
The CEO of asset management firm US Global Investors has given his opinions on the Bitcoin and wider crypto market, and how it relates to that of gold. Frank Holmes is of the belief that digital currencies are fast becoming an “alternative asset class”, just like the shiny, precious metal.However, Holmes has apparently not fully sided with either when it comes to store-of-value assets. Unlike many in the pro-crypto camp, he remains a staunch proponent of the shiny, yellow metal.Frank Holmes: Bitcoin has Bottomed and is Ready to Continue Climbing AgainCEO of HIVE Blockchain Technologies and US Global Investors, Frank Holmes, took a break from attending Consensus this week to appear on Kitco News. There, he opined on both the crypto and gold markets.For Holmes, the signal that the ultimate bottom occurred in Bitcoin at $3,200 was JP Morgan introducing its own currency, styled loosely on crypto, in February:“They trash talked Bitcoin all the way down until February of this year when they released their coin. All of a sudden we had a bottom in Bitcoin.”Looking towards the space’s future, the entrepreneur says that the increase in new wallets continuing over the course of the bear market should give the Bitcoin price a great base to built into “the next bull cycle” from.For Holmes, the crypto market should recover much more quickly than other historic crashes. He stated that unlike the housing market collapse, the bear market of 2018 was not caused by overleveraging. This will further fuel Bitcoin’s rise to bone fide investment vehicle in the eyes of many:“This [correction] can be a year, and we’re slowly climbing out of it, and [bitcoin] is becoming an alternative asset class like gold.”When the segment’s presenter brought up Grayscale Investments’s recent #DropGold campaign and the presumed rivalry between the two safe haven asset classes, Holmes was keen to state to people that Bitcoin should not be seen as a replacement for gold.Bitcoin has often been described as “digital gold”.Seemingly irked by the suggestion that some people might be turning their back on the historic store-of-value in favour of gold, Holmes went on a somewhat bizarre rant about the work ethic of “ignorant millennials” and their desire to wage “rebellion against anything and everything” before stating:“[Millennials] should do their homework, they should open up a history book on why gold is so significant… why the great ‘love trade’, that if you love your country you should have gold in reserve. If you have a crisis, your paper money goes down in tremendous value. Gold is what bailed out Britain, getting it over to Canada, and then trading to get weapons from America, it was gold that did it.”Finally, the CEO touched upon the atmosphere at the Consensus conference occurring this week. He described it as “subdued” and that this was a positive sign for the market:“People are still fragile, they don’t believe it. I think this is a positive sign for the cryptocurrencies all to trade higher.” Related Reading: Bitcoin FOMO is Strong But The Bears Will Not Go QuietlyFeatured Image from Shutterstock.
Bitcoin appears to be very much the mainstream media’s flavor of the week once again. The crypto asset will be prominently featured on US national television for two separate reasons in the coming days.Firstly, there are the first broadcasts of the Grayscale Investments television advertising campaign to #DropGold in favor of crypto. The second is a “60 Minutes” report, broadcast on CBS News, about the digital asset.You Can Count of Mainstream Media to Pour Gasoline on the Current Bitcoin BlazeIn case you missed it, Bitcoin is a hot topic once again. The price has been soaring of late and naturally, many people have renewed interest in the digital currency. There is no better evidence of this than the fact that the crypto asset will appear prominently on mainstream television twice this week in two completely unrelated instances.As reported by NewsBTC last week, Grayscale Investments will broadcast an advertisement for its services that attempts to persuade viewers to #DropGold in favor of Bitcoin and crypto. The ad will air for the first time today and the firm Tweeted out which networks will be showing it earlier:Excited to share that the #DropGold TV spot begins airing nationally TODAY during commercial breaks on:
– Comedy Central
– Fox Business
– Fox News
– Nat Geo
– SundanceCan’t wait? #WatchNow via https://t.co/mo009CyYFL— Grayscale (@GrayscaleInvest) May 16, 2019The advertisement focuses on the argument that Bitcoin is a better version of gold. It depicts decrepit bankers lugging around heavy, cumbersome bullion, whilst youngsters race through the streets with agility impossible to those burdened with gold. The argument it alludes to is that Bitcoin serves as a digital gold in that it is strictly limited in total supply and its issuance occurs at a known rate. Meanwhile, the crypto asset is easier and cheaper to transport, store, and divide than gold making it a clear choice in the 21st Century.With names like NFL, National Geographic, Paramount, and Comedy Central making the list, there will be no shortage of eyes falling on the Grayscale advertisement in the coming days.Perhaps more exciting, however, is the broadcasting of a “60 Minutes” special on CBS News on Sunday at 19:00 ET/PT. According to a post about the show, it will be presented by Anderson Cooper, a choice that resonated with some:It’s gonna be a great show, I’m really excited and enjoyed filming this. Impressed that @andersoncooper really understands Bitcoin https://t.co/s9rJepmCHL— Charlie Shrem (@CharlieShrem) May 16, 2019The special also reportedly features the first-ever television interview with Laszlo Hanyecz, better known as the Bitcoin Pizza Guy. Hanyecz famously made the first commercial Bitcoin transaction – 10,000 Bitcoin in exchange for some pizzas. Typically, during an excerpt from the interview, Cooper is keen to remind his Hanyecz of the value of his pizzas using today’s Bitcoin price – $800 million.Also featured in the report is a visit to a crypto asset mine in Iceland and the Federal Reserve in Washington D.C. Since it is being broadcast at 19:00 on a Sunday, Bitcoin should be showcased in a light that isn’t just focusing on money laundering and the dark web in an extended form. Hopefully, Cooper does the crypto space proud as Charlie Shrem and others suspect he might.Related Reading: Nations Continue to De-Dollarise by Hoarding Gold: Is Stockpiling Bitcoin Next?Featured Image from Shutterstock.
The Bitcoin price has started 2019 off in fine form. Since reaching the $3,200 price point last December, which some have been calling this cycle’s ultimate bottom, the value of BTC has surged around 150% in just six months. With the price of most other crypto assets also increasing in recent weeks relative to the U.S. dollar, many analysts have declared that the current price action looks like the early stages of a new bull market.There are increasing signals that they might be correct too. Terms such as “Bitcoin”, “Coinbase”, and “Blockchain” have been trending across various online search platforms and technical analysis is pointing towards the theory that there is upside to come.Have the Bitcoin Bears Finally Been Vanquished?There is a growing body of evidence to suggest that the Bitcoin price could finally be ready to make a prolonged move to the upside once again. The price has been generally on an upward trend since it sank as low as $3,200 in December 2018.Just recently, however, there has been a much more dramatic price increase than we have seen since the days of 2017. During April and the start of May, Bitcoin’s price more than doubled to a yearly high of $8,320 (according to CoinMarketCap). It has since dropped back to just below $8,000 as of the time of writing.The rising prices have been accompanied by other signs that new money might be ready to get back into the Bitcoin and crypto asset markets. One indicator of such investor confidence is the fact that wallet software is trending hard in the Apple wallet store.Both Coinbase and Blockchain’s software are now listed as trending in the popular application store. This was highlighted by Twitter user Cryptorae recently:Trending now: “Coinbase” and “Blockchain”. Not sure I’m ready for this. pic.twitter.com/mRGgcr8RWO— rae (@cryptorae) May 14, 2019A related signifier that there is renewed interest in crypto relates to trending searches on the well-known search engine Google. According to data from the technology giant, the term “Bitcoin” is currently being searched for three times as often as it was just three weeks ago. It is still nowhere near as high as it was during the peak of the 2017 bull market but it is a clear sign that those less familiar with the technology are becoming interested either again or for the first time.Crypto pundits have posited some theories as to why interest might be on the rise once again. RT’s Max Keiser believes recent financial policies initiated by the US have made the sound monetary policy offered by Bitcoin highly attractive once again. He also states that during this bull market, institutions are likely to fear missing out just as much as retail did in 2017. This could lead to the $100,000+ Bitcoin he has been calling for as clients of Fidelity, Bakkt, and TD Ameritrade all scramble against retail investors to buy up the increasingly scarce crypto asset.Technical analysis also appears to be pointing towards more upside too. One trader and CEO of coding firm NodeSource, Joe McCann, highlighted that Bitcoin’s 200-day moving average recently moved into an upward-facing position. Previous times this has happened — in 2012 and 2015 — huge run-ups in the value of cryptocurrencies have been observed. The trader says we could be looking at a “prolonged bull market”.Judging from the technicals, along with clues into current levels interest in Bitcoin and crypto provided by trending searches at Google and Apple, the likes of Keiser, McCann, and others might be right in their bullishness. There might finally have been enough healing time for investors’ appetites for risk to have returned.Related Reading: Moving Averages Will Be Key In Bitcoin’s Next Move, What Are The BTC Pullback Prices?Featured Image from Shutterstock.
The Bitcoin price has been doing rather well of late. The number one digital asset has surged more than 100 percent in 2019 alone and many crypto market analysts are calling for more upside to come.Crypto technical analyst and CEO of tech consultancy firm NodeSource, Joe McCann, is one such voice. He has highlighted that the recent uptrend of the 200 day moving average (DMA) could be an indicator of the start of a “prolonged bull market”. He uses the Bitcoin market’s previous performance versus the 200 DMA to back up his theory.Joe McCann: 200 DMA Reversal has “Massive Implications for a Bull Run”Self-proclaimed “market mercenary” Joe McCann has speculated that the recent moves in the Bitcoin market could be the start of something much bigger. The NodeSource founder and CEO posted a lengthy Twitter thread summarising the potential implications of Bitcoin’s 200 DMA starting to trend upwards recently.1/ May 10th, 2019, marked the first time in 577 consecutive days that bitcoin’s 200 Day Moving Average (DMA) has recently started trending upward.This has massive implications for a bull run. Let’s look at why.(thread) #crypto #BTC— Joe McCann (@joemccann) May 15, 2019In the thread, McCann compares the current situation in the Bitcoin market to previous times where the 200 DMA has turned upwards again. First, he looks at the reversal prior to the 2013 bull market. It occurred on June 6 and preceded a continued increase in prices that followed almost uninterupted for the next 761 days.The 200DMA finally turned to the downside two years following the initial reversal. During the period, the Bitcoin price increased by a vast 23,308 percent. McCann speculates of such a simple system could be used to trade crypto markets over longer time periods for potentially huge gains:“Note, the percentage gain does NOT include the all-time-high (ATH) as the 200 DMA by definition will never reach the topmost value for a period. The idea here being if one invests only when the 200 DMA turns up and sells when it slopes down, you netted a 23,308% return.”The second example McCann draws on is from before the 2017 bull market. This time, the 200 DMA started heading upwards on October 10, 2015. Those who bought Bitcoin on this date and sold as the indicator started pointing down in the summer of 2018 would enjoy 961 days of general upside and a total percentage gain of more than 7,500.McCann concludes by stating that the recent reversal of the simple technical indicator could mean big things for the Bitcoin and wider crypto market:“History doesn’t repeat itself, but it does influence the future. If the 200 DMA is of any use to us, then we are setting up for a prolonged bull market in bitcoin.”Crypto Bullishness EverywhereIt’s not just the technicals that are indicating that we could well be in the early stages of a full-blown mania like those that have previously shocked the world with just how high Bitcoin prices can go. If you browse Twitter, you’ll see increasing reports from long-time proponents of crypto stating that friends and relatives are once again asking how to buy into digital assets:I just had 3 rl friends text me about bitcoin, wanting to set up their wallets and basically enter here. I told them to read https://t.co/ZcSFt7Q2fV and get back to me. It’s happening!!!— al[e]hodl🔑 (@btcale) May 15, 2019Likewise, the Bitcoin and Cryptocurrency subreddits are full of typical newcomer posts. Simple questions such as setting up a wallet for the first time or enquiring about which exchange to invest $1,000 on are becoming more common by the day.As we’ve seen before, as prices begin to rise, the fear of missing out on the next shot to the moon can inspire a frenzy that leads to prices unimaginable just weeks previous. However, the difference this time, as highlighted by Max Keiser yesterday, is that institutional investors could well feel the FOMO too.Related Reading: Crypto Markets Bullish on Ethereum, Expected to Outperform Bitcoin Short-TermFeatured Image from Shutterstock.
Leading crypto asset management firm Grayscale Investments has recently launched a campaign attempting to dissuade investors from gold whilst demonstrating the advantages of digital assets such as Bitcoin. The latest effort depicts Richard Nixon with words to the effect that gold wasn’t good enough for Nixon, so it isn’t a good investment today.The problem is that much of the argument for fixed-supply digital assets that are based on immutable distributed ledgers, such as Bitcoin, is that they may one day usher in a future economic system built on a sound form of money. For those of an Austrian economic persuasion, as many Bitcoiners are, gold is a far better form of money than what Nixon rejected it for – fiat.Attack Something Else About Gold, Grayscale!Grayscale Investments recently made the news when it revealed that it would be targeting gold investors as part of a push to see a greater embrace of Bitcoin as a hedge against traditional investments. The crypto investment firm first put out a video advertisement that it reportedly intends to be shown on social media and streaming websites, as well as national TV tomorrow:Spoiler alert: our #DropGold commercial is airing on NATIONAL TV starting tomorrow. Check back tomorrow for our commercial airing times and channels!— Grayscale (@GrayscaleInvest) May 15, 2019It has also launched the website, DropGold.com. On the homepage, it promotes Bitcoin as a light weight alternative to gold. On the site Grayscale states:“It’s not that gold is bad.It’s just that Bitcoin is better.”It also references Richard Nixon and how he finally dropped the gold standard in the 1970s. This is the theme of the crypto investment firm’s latest Tweet as part of the #DropGold campaign:Gold is no longer the standard of wealth. #DropGold pic.twitter.com/bPkJD2ceJe— Grayscale (@GrayscaleInvest) May 15, 2019The post’s tone seems to suggest that Nixon dropped the gold standard for something better. In reality, he dropped the it for something most Bitcoin proponents claim to despise – fiat currency. It therefore seems an odd move for Grayscale to have attacked the precious metal on such grounds, particularly given that many of those most passionate about investing in gold will probably list the decision to do so as one of the worst political blunders ever.A true gold-backed currency offers many of the same advantages as truly decentralised crypto assets such as Bitcoin. There is only so much gold in the bank’s vaults so there are only so many units of currency in circulation. In this highly simplistic and ultimately idealised model, the units hold their value since no more money is printed until there is enough gold to back it. Many staunch Bitcoin advocates, such as Saifedean Ammous and Tyler Jenks, argue that Bitcoin could serve as an even better asset to back a world economy than gold has done previously and certainly a vast improvement over the current fiat system.Like gold, Bitcoin is limited in supply meaning it can’t be artificially inflated to give anyone an advantage. However, as Grayscale correctly point out on their website, Bitcoin offers a few advantages over the historic store-of-value. Bitcoin is much cheaper and easier to both move and store than gold. It also can be divided into tiny fractions (Satoshis) without the use of specialist equipment. This makes it a much more useful version of the sound money gold provided in days gone by.The bizarre angle of the latest #DropGold campaign push was picked up by more than just us. Twitter user @Crypto_backroad responded to the advertisement:“Dont get me wrong, I am pro-bitcoin; however, you own gold in your portfolio BECAUSE they dropped the gold standard.”Meanwhile, @anilsaidso stated:“This angle makes no sense. Nixon dropped gold stnd because gold WAS valuable and was preventing him from inflating the dollar. Would rethink this particular nixon ad.”Honestly, Grayscale, us fans of crypto love what you’re trying to do with #DropGold but the Nixon reference seems to be a very weak one – particularly given that there are so many other grounds upon which to attack the shiny precious metal.Related Reading: Nations Continue to De-Dollarise by Hoarding Gold: Is Stockpiling Bitcoin Next?Featured Image from Shutterstock.
Kevin O’Leary has stated that Bitcoin is “garbage” , a “digital game”, and ultimately, “worthless”. The Shark Tank investor attacked Bitcoin and the rest of the crypto industry largely based on the current volatility of digital assets.The successful entrepreneur states that because he was unable to buy property using the popular digital asset, it is completely useless. He complains that most people are not willing to take the risk to receive Bitcoin in exchange for goods and services because of the volatility but dismisses that anyone else might see worth in a decentralised, permissionless system of value transfer.Kevin O’Leary Doesn’t See Worth in Bitcoin Ergo It’s Garbage…In a rather typical attack on crypto assets and specifically Bitcoin, entrepreneur and TV personality Kevin O’Leary has appeared on CNBC’s “Squawk Box” segment to state that that current price volatility makes it a lousy currency and ultimately, “worthless” and “garbage”:“To me, it’s garbage, because you can’t get in ad out of it in large amounts.”He went on to state that he had recently failed to buy Swiss real estate with the digital asset because the seller would not accept the volatility that is associated with Bitcoin:“Let’s say you want to buy a piece of real estate for $10 million in Switzerland, they want a guarantee that the value comes back to the U.S. currency. You have to somehow hedge the risk of bitcoin. That means it’s not a real currency. That means the receiver is not willing to take the risk of the volatility it has. It’s worthless.”However, as is often the case with attacks on Bitcoin, those making them have not considered that they might not be part of the demographic best served by the financial technology. O’Leary is a successful entrepreneur living in the developed world. In terms of access to banking facilities, he’s probably in the top tenth of a percent of people on the planet.To him, the currency may not offer anything of worth. However, to state categorically that it is worthless because it does not help him to expand his property portfolio, for now at least, is incredibly disingenuous to those that may use the crypto asset as a store of value through necessity or because they simply cannot access traditional banking facilities.Being uncorrelated to any fiat currency or other asset class on the planet, cryptocurrencies like Bitcoin can be used to escape from national economies in a way not previously possible. In the history of fiat currency, there have been many examples of governments recklessly printing money to such a degree that the value of each unit of their national currency spirals downwards. Entire life savings can become worth next to nothing in just months.For citizens in countries where the national currency is devaluing rapidly, Bitcoin, even during the worst days of the recent bear market, often represented a better bet than the currencies of some of the national governments with most questionable economic policies. To these people, Bitcoin most certainly has worth and utility.In his blanket dismissal of the digital currency, O’Leary also neglects to consider the billions of people that do not have access to any banking facilities whatsoever but who can get online via smartphones. If Bitcoin allows a merchant in Africa to take part in the global economic system for the first time, who on earth is this guy to say it’s garbage? Related Reading: Warren Buffett Claims Bitcoin is Like a “Seashell” In His Latest Attack on CryptoFeatured Image from Shutterstock.
Russia Today presenter and one of the first people to publicly endorse Bitcoin (BTC), Max Keiser, has reaffirmed his belief that Bitcoin is going past $100,000. The long-term proponent of the most popular crypto asset stated that institutional investors are likely to drive the price even higher than seen during recent price rallies as “fear of missing out” kicks in amongst those with the deepest pockets.Keiser also stated that December’s low of $3,200 would serve as the ultimate bottom for BTC. For him, the price will only continue to surge from here as Bitcoin captures a share of more traditional store of values’ markets.Keiser Bought Bitcoin at a Dollar and is Yet to Sell a SatoshiLong-term Bitcoin proponent and Russia Today journalist Max Keiser recently appeared on a Kitco News segment discussing the crypto asset space. In town because of New York Blockchain Week being held at the moment, Keiser sported a pristine white suit and impressive Bitcoin tie for the occasion.#Bitcoin, not gold, is the best store of value, according to Max Keiser, host of the Keiser Report, who maintains his $100,000 bitcoin call@DanielaCambone @maxkeiser #gold #Fed #KitcoNews #KeiserReport #economy https://t.co/3FQM8NGStb— Kitco NEWS (@KitcoNewsNOW) May 14, 2019He was first asked about where BTC price was heading, to which the crypto evangelist stated that the recent announcement that the Federal Reserve was going to allow permanent quantitative easing was a signal to him that the previous Bitcoin low of $3,200 last December was the ultimate bottom of the market. He refers to the policy as:“Completely irresponsible, global shenanigans.”Keiser believes that hunger for a store-of-value asset is growing as the world continues to de-dollarise, and investors seek out alternate ways to protect their wealth. He argues that gold is too manipulated for many. For the RT News presenter, this will ultimately lead to greater demand for Bitcoin:“To capture a piece of the gold market, you’re talking $60-, $70-, $80-, $100,000 a Bitcoin.”The presenter then asked Keiser about his long-term outlook and if he had taken profit during any of the previous bull markets. Keiser responded simply:“I have not sold any Bitcoin because my price target is $100,000 and beyond.”He went on to argue that if Bitcoin continues to prove itself a store-of-value and the market capitalisation continues to grow as he expects it to, BTC will become more useful. Since it will take more money to move the market in any sort of meaningful way, volatility will be greatly reduced at $100,000+ Bitcoin prices. This will make it more usable as a medium of exchange. Eventually this will lead to it being considered a unit of account since commodities can be easily priced in stable assets.Just like retail “fear of missing out” caused the Bitcoin price to soar in late 2017, Keiser believes the same common market phenomena will occur during the next bull run only this time with institutional investors. With the likes of TD Ameritrade, Fidelity, Bakkt, and others all positioning themselves to take advantage of institutional demand for BTC, once those with the deepest pockets start to think that Bitcoin is the must-have investment, price could well hit this $100,000 level faster than most people think possible. Related Reading: The Case for Bitcoin as a Store-of-Value, Can it Really Rival Gold Going Forward?Featured Image from Shutterstock.
Evidently, the recent security compromise that affected crypto exchange giant Binance has done little to dampen optimism for the trading venue’s digital currency, Binance Coin (BNB). Almost the entire crypto market has gone parabolic in the kind of fashion not seen since the days of the 2017 bull market but BNB leads the way in terms of 24-hour price increases.The price of the tokens issued by the exchange initially fell following the announcement of the hack last week. However, following a series of open announcements from Binance, the exchange’s coin is surging back from its brief decline.How Did Binance Shrug off a $41 million Crypto Hack?As one of the few crypto exchanges to have issued its own digital currency, observers have a unique insight into public sentiment regarding Binance following its recent costly hack. The security compromise last week saw 7,000 Bitcoin taken in a heist that is reportedly the sixth largest in the history of Bitcoin.Following such a potentially catastrophic security breach, it would be easy for digital currency traders using Binance’s services to turn their backs on the company, and by extension, its token. However, judging by the current price performance of BNB, there has been no such continued dumping of the crypto asset – quite the opposite in fact.As mentioned, the exchange’s own crypto is currently leading the last round of price increases. Whilst the majority of the top ten digital currencies are up over the last 24-hours at the time of writing, Binance Coin, according to Coinmarketcap, is up the most at over 16 percent. This compares to Bitcoin’s 12 percent, Ethereum’s more than 7 percent, and Litecoin’s 5 percent.A lot of the current price performance by Binance Coin is likely down to how open and transparent the Binance team appear to have been regarding the exchange hack. Just days after the breach was first discovered, Changpeng “CZ” Zhao, the trading venue’s CEO and founder, held an Ask-Me-Anything session to try to put customers minds at ease.The exchange’s staff were even open about their discussions regarding a potential blockchain reorg that would return the stolen Bitcoin. This, understandably, was quickly shot down by many loud voices in the crypto space before eventually being dismissed by CZ too.The exchange has also kept users updated with fresh information regarding the hack as it becomes available. This has taken the form of a series of blog posts, the latest of which, published yesterday, states that deposits and withdrawals should come back online tomorrow. The exchange is hoping to resume business as usual following necessary downtime in the immediate aftermath of the hack. CZ states in the post:“Our team is making progress and has been working through the weekend. In the past few days, we have made some significant overhauls to our system, with a large number of advanced security features added and/or completely re-architected. We will share details on some of the changes later.”#Binance Security Incident Update #3 – @cz_binance https://t.co/9RsBOc95Ky— Binance (@binance) May 12, 2019Another fact that differentiates the Binance hack from the many previous examples of such security compromises at crypto exchanges is the fact that this time the affected company had the capital on hand to pay back those impacted by the breach. The firm had been putting away a percentage of its monthly profits in the amusingly named SAFU Fund – the Secure Asset Fund for Users. In fact, Binance did not even take up the many offers of financial help it received following the hack. CZ stated at the time:“We are hurt but not broke.”The overall handling of the situation by CZ and the Binance team is likely why such a potentially catastrophic hack has not resulted in a mass exodus from the trading venue and, by extension, the Binance Coin. Not many others in the crypto space could have shrugged off a $41 million breach so casually. Related Reading: Analyst: Strong Possibility Bitcoin Runs Past $8,000 Before a Significant Correction Takes PlaceFeatured Image from Shutterstock.
In case you haven’t been paying attention to the Bitcoin price recently, the number one crypto asset is having an epic change of fortunes this year compared with 2018. After already surging more than 100 percent since its December 2018 low point, more than 10 billion dollars have been invested into Bitcoin in the last 24 hours alone.There appears to be something of a perfect storm occurring in the Bitcoin market, with enough time since the epic crash of 2018 passing for positive news events to finally drive prices. But, is such a parabolic move to the upside healthy and sustainable?Bitcoin Up Over $2,500 in Just One MonthErratic as ever, the Bitcoin price continues to surge upwards. After a spectacular April and start of May, many market analysts had called for a reasonably large pullback. However, the Bitcoin price isn’t done pumping just yet.The current Bitcoin price rally seems to lend support to those stating that the $3,200 was the ultimate low for the most popular crypto asset. Even Civic co-founder, Vinny Lingham has recently said he would become a “raging bull” if Bitcoin could hold above the $6,200 level that many felt would serve as insurmountable resistance. Previously, Lingham had stated that he felt Bitcoin price would fall once again unless it could hold above $6,200:If Bitcoin can hold the $6200 level for the next 24-48 hours, then the bear market is officially over and I’m going to become a raging bull!— Vinny Lingham (@VinnyLingham) May 10, 2019Despite being just days ago, the $6,200 level now feels far away as Bitcoin continues to race towards $8,000. A likely cause of the continued buying is that the much-anticipated Bakkt crypto trading platform from the Intercontinental Exchange (owners of the New York Stock Exchange) now has a stated launch date.The platform has been in the midst of legal wranglings as it seeks regulatory approval, and many in the industry see its successful launch as a green light for Bitcoin and crypto from all-important organisations such as the Commodities Futures Trading Commission. The financial institution-facing platform that many have been excited for will apparently launch this July.Another potential underlying factor for the sensational Bitcoin price performance is the rumours from the Consensus 2019 conference that global online marketplace eBay is interested in crypto in some capacity. The company has a stand displaying the following seemingly pro-crypto banner at the event.For your convenience, you will now find all of my content shared evenly among Facebook, Instagram, Telegram and Twitter! 🍻Instagram: https://t.co/9F65saAbcc
Twitter: https://t.co/bSU8q8Neqq pic.twitter.com/K74qpCgDaC— wolf (@ImNotTheWolf) May 12, 2019Some have speculated that the sign might be referring to forthcoming acceptance of certain digital coins from directly within eBay’s payment systems. However, others have stated that the company is most likely working with crypto payment processing company UTRUST to enable sellers to receive payments in fiat currency. Since the payments startup recently hired a former executive from both eBay and PayPal, it stands to reason that UTRUST would start out by using Sanja Kon’s business connections to its advantage.Underlying these two news events is a market that is largely more optimistic about the future Bitcoin price performance than in previous months. More analysts seem to get on board with the idea that the ultimate price bottom is in. With the bear market increasingly a distant memory, the time might finally be right for both retail and institutional investors to take up positions in Bitcoin once again.However, not everyone is convinced that “crypto winter” is over. Some, such as Lucid Investments’s Tyler Jenks remain convinced that $3,200 will be broken again to the downside. That said, all analysts seem to agree that the percentage chance that the bottom is in is constant increasing the higher the Bitcoin price rises.Recent price action in Bitcoin has turned Consensio 100% Bullish. Hyperwave suggests the bottom is not in. I recommend a 20% initial position in Bitcoin. This is 20% of X, where X is the amount of liquid assets you are comfortable putting into Bitcoin. First buy in 17 months.— Tyler Jenks (@LucidInvestment) May 11, 2019Meanwhile, other price analysts and traders were calling for a smaller pullback via Twitter, before upside momentum would overwhelm bearish sentiment and prices would climb once again.With the Bitcoin price action going as parabolic as it has done so suddenly, it’s difficult to not feel a little uneasy at these vast percentage gains day in, day out. The last time Bitcoin price moved so dramatically upwards was at the tail end of 2017, and we all know what followed that… Related Reading: If History Rhymes, Bitcoin (BTC) May Retrace To High-$5,000sFeatured Image from Shutterstock.