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Steve Hanke Blasts Bitcoin: It Is ‘Not a Currency’ and Has a ‘Fundamental Value of Zero’

In one of his most recent tweets, Steve Hanke, Johns Hopkins professor of applied economics, has criticised bitcoin’s value. The well-known economist who is vocal about the negative effects crypto can have on global economies, attacked bitcoin’s utility in , declaring.

Bitcoin is not a currency. Bitcoin is a highly speculated asset that has a fundamental value zero.

Hanke illustrated his opinions with a cartoon by Robert Rich. This was part of Hanke’s work for Hedgeye risk Management. Hanke compares bitcoin to other major fiat currencies like the dollar, yen and yen.

Bitcoin Community Responds

The bitcoin community quickly responded to Hanke’s comments. , a digital artist known for his work that is bitcoin-focused, tweeted a cartoon in which he depicted bitcoin being a better money option than fiat currencies.

Hanke was criticised by others, including Dr. Julian Hosp (CEO of Cake Defi), who wrote a counter to Hanke’s view. declaring

Bitcoin is useful. It is not clear how much. It is certain that there are people who desire its utility. It is also provably rare. Therefore, the statement that bitcoin is worth nothing is incorrect.

Hanke is a proponent of currency boards and dollarization as a way to solve inflation and devaluation issues in countries such as Argentina. He has repeatedly criticized bitcoin’s adoption and function.

Hanke, who was a critic of El Salvador’s adoption of bitcoin as a legal tender in June 2021, stated that it could lead to the collapse the country’s economy. He stated at the time that all El Salvador’s dollars could be ‘vacuumed’ and citizens would only have bitcoin.

This criticism grew in October 2021 when he said that Nayib Bukel, El Salvador’s president, was ‘playing fast [loose] again with El Salvador’s tax dollars’. He announced purchasing the bitcoin dip and 150 bitcoin.

Crypto Exchange Coinbase Launches Ethereum L2 Scaling Network Called Base

Coinbase has launched an L2 called Base to join the competition of Ethereum L2 scaling project, like Polygon, Arbitrum and Starknet. The launch of the Base testnet was announced by and the company advised the public that they would be launching the mainnet soon.

Twitter user Coinbase said that Base is an Ethereum L2 which allows anyone to create decentralized apps. It’s secure, affordable, and developer-friendly. Base’s goal is to make Onchain the next online platform and allow 1B+ people into the crypto economy.

Base, the cryptocurrency exchange, explained that it will be open-source and will use Optimism’s OP Stack. Coinbase also stated that it is collaborating withOptimism. Coinbase stated in a blog post that they see the toolkit as an open platform where anyone can contribute, fork and extend it to help the cryptocurrency economy scale.

Coinbase will initially have greater control. However, Base’s vision for becoming completely permissionless is being realized over time. The announcement stated that Base will move from Stage 0 to Stage 1 in 2023 and Stage 2 in 2024. The blog post also stated that Coinbase does not plan to issue new network tokens. Base will be an independent network but will be powered by Ethereum. It will also leverage the security of Ethereum.

Coinbase has also announced the creation of the Base Ecosystem Fund. This fund will support Base-related early-stage projects, provided they meet certain investment criteria. Base, like many L2 platforms will charge lower fees to transact onchain Ethereum. ETH fees this week are higher than usual. ‘s daily transaction count was outpaced by Ethereum’s L2 protocol Arbitrum which charges lower fees.

The blog post explaining the L2 Base states that Base offers EVM equivalence for a fraction of what it costs and is committed towards pushing forward the development platform. The native token of L2 scaling network Optimism (OP) rose 7.4% after the Coinbase announcement. Recently, Optimism announced that it will upgrade its network in March.

People on social media were unhappy that Coinbase’s Base testnet was launched. Roberto Bayardo , Coinbase Web3 developer, explained the problem was resolved and pointed out that many people were bridging. Bayardo updated: “We’re submitting contracts for verification now.”

Japan Urges Regulators Worldwide to Subject Crypto Exchanges to Bank-Level Oversight

Bloomberg reported Monday that Japan’s Financial Services Agency, the country’s top financial regulator has asked global regulators to apply bank-level regulations to cryptocurrency exchanges. Mamoru Yanase was quoted as saying the following:

You must implement effective regulation if you want to supervise and regulate traditional institutions.

Following the fall of cryptocurrency exchange FTX, and subsequent fraud charges against its former CEO Sam Bankman Fried (SBF), the FSA called for stronger crypto regulation. The cryptocurrency industry has suffered a serious blow from the FTX collapse, which highlighted gaps and differences in regulation around the world.

Local investors have been protected by Japan’s strict regulatory framework for crypto assets. They are expected to be able to withdraw their funds from two Japanese crypto exchanges that are linked to FTX.

Yanase commented on the failure to FTX:

The latest scandal is not crypto technology. It’s loose governance, lax controls, and the absence supervision and regulation.

Yanase claims that the FSA has “began to urge” their counterparts in Europe, America, and other countries to apply the same level of supervision to cryptocurrency exchanges as traditional financial institutions such as banks and brokerages.

Yanase noted that some countries might need to create a multilateral resolution mechanism in order to coordinate when large crypto companies fail. He also stressed the importance to have consistency across regulations.

Officials from the FSA stressed that countries must ‘firmly demand’ crypto exchanges implement strong governance, internal controls and auditing, as well as disclosures. This will ensure consumer protection and curb money laundering. To ensure that crypto firms are properly managing their clients’ assets, he said that regulators should have the power to enforce such actions as onsite inspections.

Mark Cuban: Bitcoin Is a Good Investment, Gold Investors Are Dumb

Shark Tank star Mark Cuban, the billionaire owner and founder of the NBA Dallas Mavericks team, spoke out about bitcoin and gold on an episode of Club Random, hosted by Bill Maher. It is scheduled to air Monday.

Maher stated that he believes in the intrinsic value of gold and is “very anti-bitcoin”. The Dallas Mavericks owner commented on gold investing.

If you don’t have gold, you are dumb as f ***.

The podcast host continued to argue that gold is “never going away” and is “like a hedge against all else.” Cuban replied:

It’s not, but it is a hedge against any kind of risk. It is the stored value, and you don’t have physical gold. … Bitcoin is also a stored value, just like gold.

“When you have gold, all that you have is a digital transaction.” Cuban explained that you don’t actually own the gold bar. If everything went to hell and you had a golden bar, what would you do? Shark Tank’s star warned that someone would either beat you to death or take your gold bars.

Maher acknowledged Cuban’s criticisms of gold and clarified that ‘We are not mostly in gold. Cuban replied, ‘And that is fine. You don’t think I’m primarily in bitcoin? It’s something I have. Dallas Mavericks owner, John McLaughlin, stated that it was a digital transaction. It’s also a store of value. People perceive that bitcoin has a greater value than gold.

Cuban stated that bitcoin is a “good investment”, but he cautioned that he’s not telling people to purchase the cryptocurrency. Shark Tank’s star also added:

I want bitcoin to fall a lot more so that I can buy more.

Cuban believes cryptocurrency has potential despite crypto winter and the collapse crypto exchange FTX. He explained previously that the FTX collapse is not a failure of crypto. Although he admitted that he doesn’t know everything, he stated that former FTX CEO Sam Bankman Fried (SBF), should be concerned about being in jail for a long time.

Kevin O’Leary (aka Mr. Wonderful insists that SBF is a top crypto trader and will support him again if he launches another venture. O’Leary was a spokesperson of FTX during the bankruptcy filings.

Bitcoin could fall 13% to 2019 levels after confirmed breakdown amid the FTX fallout, Fairlead’s Katie Stockton says

Bitcoin’s steep decline in the fallout of the FTX bankruptcy may not be over soon, according Fairlead Strategies’ Katie Stockton.

Stockton wrote Monday that bitcoin had fallen below $18,300 in the midst of the crypto selloff. This puts the popular cryptocurrency at risk of falling further to levels not seen in 2019

Stockton specifically targets $13,900 as the next level of support for bitcoin. This represents downside potential at 13% below current levels.

Stockton stated that the breakdown is a bearish intermediate term bias. He also noted that a loss of upside momentum in the weekly [moving Average Convergence Divergence] and a stochastic decline increase the risk to downside. Technical analysts often follow momentum indicators are beginning to lose their value.

This is not a good sign to crypto investors. Stockton will look for secondary support at $10,000 if $13,900 is not enough to hold the support level. This would be close to the February 2020 high. A drop to this price could mean a downside of 38% from the current levels. This would be a major blow for crypto investors hoping to contain the FTX bankruptcy contagion.

Stockton stated that the breakdown “reaffirms bitcoin’s long-term downtrend with our monthly gauges supporting an ongoing bearish bias.”

If bitcoin does manage to recover, traders need to be aware of resistance levels at $17600 (the June low) and $18,900 (the falling 50-day moving mean).

Stockton says the outlook for ether is equally grim. According to Stockton, the technical analyst believes the second-largest cryptocurrency in the world will retest the $1,000 mark. Stockton stated that a breakdown below would place next support at $500 in a bearish trend.

A further drop in bitcoin and other ether prices will only make matters worse for the crypto industry as it recovers from a difficult downturn that has shaken investor confidence in the emerging asset class.

Mercado Pago Launches Cryptocurrency Trading Services in Mexico

Mercado Pago hopes to expand in Mexico through the introduction of cryptocurrency services. The company, which acts as a wallet arm for Mercado Libre , announced that customers can now purchase crypto using Mexican fiat currency. This means that every Mexican customer can now purchase bitcoin or ether with funds in Mercado Pago.

The company hopes to offer more options to Mexicans who are customers of the company by bringing this product to Mexico. On this, Mercado Pago Mexico’s CEO Pedro Rivas stated:

We are aiming to provide millions of Mexicans with easy access to crypto-world in an educational, safe, and simple manner to increase technological inclusion.

Mercado Libre’s Latam Expansion

The company had previously hinted at this move. Osvaldo Gimenez, the head of Mercado Pgo, , announced a possible expansion in August, remarking about the importance of cryptocurrencies as an alternative investment option for Latam. This type of service was pioneered in Brazil by the company, which has more than 1,000,000 customers who have this functionality since November 2021.

Mercado Pago has yet to allow customers to use crypto to buy merchandise in Mercado Libre. This is in keeping with Marcos Galperin’s views on crypto. He thinks it more important as a store-of-value than as a payment method. The company also launched its token, called Mercadocoin on Aug. 20, but did not give any indications as to when it would be launched in Mexico.

There has been a steady rise in interest in cryptocurrency in Mexico. Other companies have also introduced crypto-payments as part of their business models. , a food delivery service, announced that it would launch a pilot program to accept cryptocurrency as payment for its services.

In July Indira Kempis, a Mexican senator introduced a bill that would declare bitcoin a legal tender to improve financial literacy and financial inclusion.

UK Proposes New Law to ‘Seize, Freeze and Recover’ Crypto Assets Easier and Faster

Thursday’s introduction of the Economic Crime and Corporate Transparency Bill by the British government was made in the House of Commons. The bill “aims to strengthen the U.K.’s fight against economic crime,” the government stated, adding that it will also help to combat terrorist financing.

The government explained:

The new law will make it faster and easier for law enforcement agencies like the National Crime Agency (the National Crime Agency) to seize and freeze crypto assets, which is the digital currency that organized criminals use to launder money from fraud, drugs, and cybercrime.

The bill also includes amendments to 2002 Proceeds of Crime Act (POCA), which will support the recovery of crypto assets.

“We must ensure that law enforcement agencies have proper legislative framework to recover criminals’ crypto assets in order to ensure crime doesn’t pay and prevent these assets from being used to finance further criminality or terrorist activities,” the government stated. The Metropolitan Police reported a significant increase in the use of cryptocurrency in recent years.

Graeme Biggar, Director General of National Crime Agency commented:

For years, criminals from both domestic and international have laundered the proceeds and corruption through abuse of U.K. corporate structures. They are now increasingly using cryptocurrency.

Under the leadership of Liz Truss, crypto regulation could be changing in the U.K. Before she assumed office, several key figures who worked previously on crypto policy in the country resigned.

The U.K government presented its plans to encourage crypto adoption in May and reiterated its commitment regulate stablecoins.

Sunak stated in April that it was his ambition to make the U.K. the global hub for crypto-asset technology. The measures we have outlined today will ensure that firms are able to invest, innovate and scale up here. Glen also stated that he wanted the country to be a worldwide hub, the best place to launch and scale crypto-companies.

Crypto ATM Company Bitcoin Depot Bags SPAC Deal Worth $885 Million, Here’s What Next!

Bitcoin Depot, a fintech firm that operates the largest number of cryptocurrency ATMs in the world, has decided to list on the Nasdaq Wall Street. Bitcoin Depot states that this public listing will be made possible by a merger with a special purpose acquisition (SPAC), GSR II Meteora Acquisition Group, (GRSM).

The deal is valued at $885million. Bitcoin Depot’s move is a quick, easy and efficient way to convert cash into crypto. The transaction is reportedly raising $321 million in cash. This cash is currently held in trust by GSRM and will be used to help Bitcoin Depot raise working capital.

It will also provide support for acquisitions and scaling the platform, as well as the many products it offers over time. The Bitcoin Depot is located in Atlanta. Reports suggest that the deal will be completed by the end next year.

Bitcoin Depot has a network in over 7,000 locations

This merger was initiated during a market downturn. Given the declining risk appetite of investors, this is a very difficult time.

Bitcoin ATMs allow users to purchase crypto with cash or debit card, and then the token is sent to the wallet of their choice.

You don’t even need to visit a cryptocurrency exchange platform for this. Scammers may also be associated with crypto ATMs. They might have advertised their products on Craigslist or eBay.

Scammers tell victims to deposit the fiat currency at an ATM, then send the crypto to the wallet. These fake sellers do not deliver the products after the transactions have been completed.

Bitcoin Depot operates a network with more than 7,000 locations across the U.S. and Canada. In 80 countries, there are over 38,000 ATMs that are available for crypto transactions.

Bitcoin Depot, based in Atlanta, claims it has over 7,000 locations throughout the U.S. and Canada. This gives it a market share of 19.1%.

Footprint of the Bitcoin Automated Teller Machine has been increased

Bitcoin Depot’s goal is to make this initiative reach as many people as possible. The convenience of cryptocurrencies has made it easy to own money and make simpler monetary transactions.

Brandon Mintz, CEO and Founder at Bitcoin Depot, was mentioned.

Bitcoin Depot has reached an important milestone today. We are excited about the many growth opportunities available to us and believe that a public listing will allow us to grow and develop to help achieve our goal of offering a secure and convenient way to buy cryptocurrency.

Public listing via SPCAs has become more popular in recent years. A public listing has been used for more than half the IPOs that took place in 2020 and the next year. However, it is important to note that the U.S Securities and Exchange Commission has warned that SPCAs will be subject to greater scrutiny.

Bitcoin Rises Above $22,000 As Fed Raises Interest Rates By 0.75%

On Wednesday, the Federal Open Markets Committee increased its target interest rates for federal funds by 75 basis points or 0.75%. This was the largest back-to-back rate rise since 1980.

Jerome Powell, Chairman of the FOMC, and Federal Reserve, spoke about the rate hike during the usual follow-up conference.

Powell started by noting that both indicators for production and spending have slowed but also attesting that the labor market was still strong.

Powell also discussed a variety of topics, including continued supply chain constraints and fears of recession, continued qualitative tightening, the Ukrainian War, and offered insight into future FOMC actions in relation to rising inflation pressures.

Powell stated that a second unusually large increase might be appropriate at the next meeting.

Powell stated last month at the FOMC meeting that the committee is not trying to incite a recession. There is little hope for economic growth if there are hints made at the meeting about the continuing difficulties facing the economy’s borrowers via rising rates. The chairman stated that a recession was more than a possibility. It’s likely due to rate increases.

Powell stated that Powell expects more increases to come. The FOMC believes that the economy must slow down if the U.S. is to have any hope of price stability.

He explained that this process would likely result in a period of lower than average economic growth and a weakening of labor markets. “We believe it is necessary for growth to slow down.

Bitcoin’s price briefly touched $23,000 before the news about the rate hike and the press conference. At the time of reporting, the peer-to-peer digital currency was being exchanged for $22,800.

Bitcoin faces greater downside risk than Ethereum- Here’s why

While the market for cryptocurrency continues to experience selling pressure, the entire market is showing signs of stability. According to CoinGlass data, 62,000 traders were liquidated during the bearish price action. In the same time frame, liquidated more than $180 million.

Battle of the bears

Massive losses have been caused by the end of bull markets and the collapses of top projects. Since the beginning of 2022, the overall performance of crypto-asset markets has been poor.

The market has been harsh on the top two cryptocurrency, Bitcoin [BTC], and Ethereum[ETH], respectively. BTC’s price has dropped by 70% from its high point, while ETH’s price has dropped by 75% from its high. Despite this, the downside risks for the former are still greater.

Price movements in cryptocurrency markets are a result of increased pressure from investors who have been buying a lot of put options.

It is possible to wonder what caused the price drop. The huge selling that was triggered by the liquidation institutions has led to the unprecedented price fall. This is the case for the largest cryptocurrency.

A medium (publishing platform blog) has been created to provide a weekly review of the crypto market.

“The derivatives market was affected by the continuous selling that was triggered by the liquidation institutions. This drove the risk aversion sentiment to stay high for a long period. One manifestation of risk aversion is the inversion of volatility surface.

The blog analysis also highlighted the ‘gamma exposure” for BTC compared to ETH.

A persistent negative gamma exposure will mean that option sellers who hedge against falling prices will experience additional selling pressure, increasing the overall risk in the crypto market.

Take a look at the graph below. BTC exposure is not easily controlled.

The blog stated that ETH exposure is controlled. This offsets the potential for additional selling pressure.

On a neutral note?

There have been patterns in the crypto market of high-level mentions of peak bearishness occurring after prices fall and before they flatten out or reverse. The bear market consciousness has dropped significantly in the last month as traders adopted a neutral tone.