Bitcoin Faces Regulatory Scrutiny After Record-Breaking Rally – 1 January 2021
Bitcoin Faces Regulatory Scrutiny After Record-Breaking Rally
It’s been a tough year by all accounts. But for Bitcoin, 2020 has been a marvelous time.
The cryptocurrency almost quadrupled, surpassing $20,000 for the first time as it notched record after record. The diehards cheered it as an inflation hedge in an era of unprecedented central bank largesse. Wall Street veterans from Paul Tudor Jones to Stanley Druckenmiller blessed it as an alternative asset, adding to the rally. And companies like MicroStrategy Inc. and Square Inc. moved cash reserves into crypto in search of better returns than near-zero interest rates deliver.
While none of those reasons for buying Bitcoin comport with its origins as an alternative to fiat currencies, they do point to a growing acceptance of crypto as an asset class of its own. And that has the zealot-like community taking yet another victory lap in their quest for legitimacy.
But with Bitcoin capturing greater attention, it could also garner further scrutiny from regulators, says Guy Hirsch, managing director for the U.S. at online-trading platform eToro. “Despite this meteoric rise, there are some storm clouds on the horizon,” he said, including the fallout from several last-minute actions by the outgoing Trump administration, among others.
Devotees say that in some ways, the pandemic-ravaged year proved the perfect environment for the digital coin. Warnings of rampant money-printing by global central banks — some of which started to reveal their own interests in digital assets — sparked fears of eventual inflation, while interest rates dipped to rock-bottom lows. That’s thrust some investors to chase returns and hedge with cryptocurrencies, pushing its price past $28,000 from around $7,200 at the start of January.
What else is on the radar? To Meltem Demirors, chief strategy officer at digital-asset manager CoinShares, there are some concerns about what the incoming Joe Biden administration might mean for the crypto space.
“Generally, I think we have had challenges with the Dems — they prefer more regulation, more oversight,” Demirors said. “I am a bit worried about the direction things are trending,” especially around antitrust lawsuits and an erosion in internet privacy. Still, the industry has some allies, said Demirors, including North Carolina’s Patrick McHenry and Ohio’s Warren Davidson, who she says have been advocates for the preservation of consumer financial privacy.
Going forward, many strategists and investors say, the industry could see more scrutiny and tighter regulation with Biden in the White House.
A lot will, of course, depend on who fills key positions within the administration. Janet Yellen, who’s been nominated to serve as Treasury secretary in Biden’s administration, has in recent years cautioned investors over Bitcoin, saying it was a “highly speculative asset” and “not a stable store of value.” A representative didn’t immediately return a request seeking comment.
Meanwhile, Bloomberg News reported that Gary Gensler could be nominated to replace Jay Clayton at the U.S. Securities and Exchange Commission. Clayton’s exit from the regulator is welcome news for crypto fans who saw him take a hard line over the years, suing to halt initial coin offerings, rejecting applications for Bitcoin exchange-traded funds and launching a last-minute lawsuit against Ripple Labs Inc. Gensler, who served as a Commodity Futures Trading Commission chairman during the Obama administration, is a senior advisor to the MIT Media Lab Digital Currency Initiative and teaches about blockchain technology and digital currencies.
According to eToro’s Hirsch, there is uncertainty around how the Biden administration will approach cryptocurrencies, but the appointments are notable “because Yellen is famously anti-crypto and Gensler is known for being pro-crypto.”
“Without knowing how authorities will seek to more robustly regulate crypto in the coming years, it is hard for the markets to continue growing at the same rate they are now, especially if, as some fear, regulations aimed at curbing innovation rather than fostering it are enacted,” said Hirsch. “Once again, clarity is the name of the game.”
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- Peter Schiff’s Understanding of Money is Flawed, Says His Pro-Bitcoin Son – Bitcoin Price Network
- Better Than This Year: Bitcoin Price to Hit $120,000 in 2021, Tom Lee Predicts
- Darknet Giant White House Market Drops Bitcoin, Supports Monero Payments Only | Altcoins Bitcoin News
- Ark Invest Analyst Says XRP Freefall Bodes Well for Bitcoin – Here’s How High BTC May Go According to Yassine Elmandjra
- Bitcoin dazzles, silver shines in 2020; equity surprises positively
Peter Schiff’s Understanding of Money is Flawed, Says His Pro-Bitcoin Son – Bitcoin Price Network
Gold bug Peter Schiff has been publicly confronted by his 18-year-old son, a bitcoin proponent, on the topic of value. Calling his dad’s understanding of money “Flawed,” Spencer Schiff made the statement in defense of TV Personality Max Keiser, who was having an argument with Peter on Twitter.
Gold bug Peter Schiff was confronted by his son, Spencer Schiff, on Monday after he accused TV personality and bitcoin proponent Max Keiser of not understanding the concept of fiat money.
“According to Max Keiser, I oppose bitcoin because I’m a fiat addict. In the bizarro world of bitcoin, gold is the new fiat,” Peter Schiff tweeted. “Clearly, Max Keiser doesn’t understand the concept of fiat, or how it differs from legitimate currency or actual money. That explains his bitcoin fixation.” At the time of this writing, his tweet got 354 comments and was liked 877 times and retweeted 67 times.
Among those who commented was his son, an 18-year-old bitcoin proponent. Spencer Schiff, a college freshman and student of Austrian economics, replied to his father’s tweet:
Your understanding of money is flawed. You think the key determinant of a money’s soundness is possession of ‘intrinsic value’, a nonsensical concept. What differentiates sound money from fiat money is the former’s emergence on the free market rather than by coercive State edicts.
Many commenters praised Spencer for putting Peter Schiff in his place, with some wondering if he was adopted. Keiser also liked Spencer’s tweet, stating that “The future belongs to bitcoiners. The boomers don’t get it. The millennials and Genz do.” He also urged others to follow Spencer on Twitter.
“By all means follow my son,” Peter Schiff replied. “But not because he has a soft spot for bitcoin. He’s wrong about that. Follow him for all the things he gets right. He’s no monetary scholar yet, but he’s working on it. Losing money on bitcoin will be a costly, but valuable part of his education.”
Peter Schiff and Max Keiser have long been tweeting back and forth about bitcoin and gold. Keiser has predicted that Peter Schiff will panic buy bitcoin at $50,000, just like Warren Buffett and several other bitcoin naysayers, including Mark Cuban and Jim Rogers.
In a tweet on Tuesday, Keiser claimed: “Keep in mind… I started telling Peter Schiff to buy bitcoin at $1. And kept telling him to buy it at $10 $100 $1000.”
Peter Schiff immediately contradicted Keiser, arguing: “I do not recall you ever talking to me about bitcoin when the price was that low. Since so much about bitcoin is a lie anyway, I guess you feel that including a few more makes little difference.”
Do you think Peter Schiff understands what makes money valuable? Let us know in the comments section below.
The post Peter Schiff’s Understanding of Money is Flawed, Says His Pro-Bitcoin Son appeared first on Bitcoin News.
Original source: https://news.bitcoin.com/gold-bug-peter-schiffs-understanding-of-money-is-flawed-pro-bitcoin-son/
Better Than This Year: Bitcoin Price to Hit $120,000 in 2021, Tom Lee Predicts
As BTC looks to end 2020 with massive gains of about 300%, Fundstrat’s Tom Lee believes that next year will be even more bullish for the cryptocurrency. Lee predicted that bitcoin could skyrocket by more than 300% from this point in 2021, which will take the asset into a six-digit price territory.
Bitcoin entered the new century with a price level of about $7,200. Despite highly volatile periods, including a vigorous dip beneath $4,000 in the mid-March liquidity crisis, 2020 will remain in BTC’s history as one of the most bullish years to date.
More specifically, bitcoin skyrocketed by roughly 300% to a new all-time high price of $29,300. Tom Lee, a Managing Partner at Fundstrat Global Advisors, predicted in January 2020 that BTC will reach $27,000 in the next few months. Although his timeframe was a bit off, his price prediction became a reality and even exceeded his expectations.
In a recent CNBC interview, Lee ironically said that he should have provided a higher BTC price number. Nevertheless, he envisioned even more bullish developments for the cryptocurrency next year:
“I think that 2021 will be a lot like 2017, which means that bitcoin will do even better in 2021 than it did in 2020. So, something above 300%.”
With BTC sitting around $29,000 at of writing these lines, an additional 300% increase from this point would place the asset at nearly $120,000. Should that indeed occur, bitcoin’s market capitalization would surge to almost $2.3 billion. This means that the primary cryptocurrency would equal the world’s most valuable company’s market cap – Apple.
Lee also touched upon the topic of the depreciating dollar. The world’s reserve currency has lost about 10% of its value against the Euro and the British Pound in the past few months.
As BTC is primarily denominated in the greenback, it means that the dollar’s decreasing value would ultimately benefit the cryptocurrency, Lee explained:
“The dollar’s weakness will make people think – how do you sort of keep a unit of sound money? A lot of people thought gold would be that store. I think it still has a reasonable basis for someone to be long on gold. But, I think for younger folk, and those who are from the digital generation, bitcoin is that digital asset that they want to hold as a store of value.”
The narrative that BTC is younger generations’ gold has been breached by several other individuals and institutions in the past. Those include the author of Rich Dad, Poor Dad, Robert Kiyosaki, and the giant US multinational banking organization – JPMorgan Chase & Co.
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Darknet Giant White House Market Drops Bitcoin, Supports Monero Payments Only | Altcoins Bitcoin News
The prominent darknet marketplace, White House Market, has dropped bitcoin payments and now accepts monero only. The darknet marketplace administrators detailed that there was an issue with a payment processor blocking Tor exit nodes, but the full transition to monero was always planned.
A number of crypto proponents have reported on the darknet marketplace, White House dropping bitcoin (BTC) payments in order to exclusively support monero (XMR). On December 28, one individual on Twitter wrote: “[One of the] largest darknet markets, White House Market, drops bitcoin support, now only uses monero.”
News.Bitcoin.com confirmed the payment system change by visiting the White House market’s onion URL. The White House admins detail the issues with bitcoin (BTC) support stemmed from a third party service.
“Bitcoin payments are no longer accepted,” the White House admins stressed. “The [third] party exchange API we used (Morphtoken) has suddenly decided to block access from Tor exit nodes and while this is trivial to circumvent we decided to respect their decision.”
The darknet admins added:
The Bitcoin workaround was supposed to be there just to help with the transition to XMR and as we are concerned it’s done, therefore we are now monero only, just as planned.
Monero (XMR) is a privacy-focused cryptocurrency asset released in 2014 and it leverages the open source Cryptonote protocol. XMR proponents like monero for its privacy features such as stealth addresses, ring signatures, bulletproofs, and dandelion++.
Moreover, monero has gained support across a myriad of darknet marketplaces (DNM) on the invisible web. Statistics from The 1000x Group’s darknet payments dashboard, shows that White House Market is the only DNM that is monero only.
However, in addition to crypto assets like bitcoin, litecoin, and zcash, a number of markets accept monero for payments. This includes DNMs like Darkbay, Cannazon, Darkmarket, Torrez Market, Cypher Market, Dark0de, Mega and Monopoly Market. That’s around ten DNMs that support the privacy-centric crypto asset monero (XMR) for payments.
Data shows on December 29, 2020, 36.5% of DNM vendors accepted monero for goods and services.
What do you think about White House Market supporting monero only and dropping bitcoin payments? Let us know what you think about this subject in the comments section below.
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Ark Invest Analyst Says XRP Freefall Bodes Well for Bitcoin – Here’s How High BTC May Go According to Yassine Elmandjra
Yassine Elmandjra, analyst at global asset manager Ark Invest, thinks XRP’s price plummet will make Bitcoin stronger.
He says Bitcoin, however, will improve in the long term as its value is proved in comparison.
“I think a lot of Bitcoiners actually aren’t really surprised at the outcome of what’s happened with Ripple and if anything in the short term while there’s likely going to be a correlation to the downside with alternative cryptocurrencies, in the long term this actually bodes very well for Bitcoin because people realize just how different it is.
There is no centralized marketing entity. The issuance of Bitcoin is predetermined and not controlled by any single entity and ultimately the rules are encoded in the network and software as opposed to made by humans.”
XRP has fallen more than 65% in the past two weeks in the wake of the U.S. Securities and Exchange Commission officially filing a lawsuit against Ripple alleging that XRP was an unregistered security upon its launch and remains a security to this day.
In a recent interview with Dave Lee, Elmandjra highlights what he believes makes Bitcoin different from any other asset.
“The idea of Bitcoin, you can’t look at Bitcoin scarcity in isolation. You have to look at the idea of Bitcoin being a provably scarce asset that no single entity issues. And it’s the combination of scarcity, combined with no one really owns the issuance aspect of that scarcity and in fact, it’s backed by very hard to break math and economic incentives, that makes it so much different than something like a Tesla.”
As for how high BTC may go, the analyst says it could go well beyond $100,000 in the current bull cycle.
“Bitcoin has broken out from major previous all-time highs only twice before in its history. If this most recent breakout returns half of what the previous breakout returned in 2017, bitcoin will eclipse $150k.”
Bitcoin dazzles, silver shines in 2020; equity surprises positively
Author: Shubham Raj