Category: Bitcoin Study/Strategy

You Can Now Buy Crypto With Visa and Mastercard via Binance App for Android – Siamak Masnavi

On Thursday (April 25), Binance announced that its mobile app for Android now lets you buy with Mastercard or Visa some of the most popular cryptocurrencies that are listed on Binance.com.

According to Binance, this support for cryptocurrency purchases via debit/credit cards, which is possible as a result of the partnership with Fintech startup Simplex that was announced on January 31, is available in version 1.5.8.0 or higher of the “Binance – Cryptocurrency Exchange” app for Android.

Since January 31, it is has been possible to buy on the main Binance website (Binance.com) Bitcoin (BTC), Bitcoin Cash (BCHABC), Ether (ETH), Litecoin (LTC), and XRP using debit/credit cards (Mastercard and Visa). Then, on March 12, it became possible to do the same on Trust Wallet (Binance’s official non-custodial wallet app). And now, the Binance app for Android joins the party by offering the same feature.

Here is what you need to do to buy crypto via debit/credit cards on the Binance app for Android:

  • Tap on the “Credit Card” button, which is the last button on the toolbar you see in the middle of the “Home” screen. This takes you to the “Buy Bitcoin” screen.

Binance App for Android - Screenshot 1 - 25 Apr 2019.jpg

  • On the “Buy Bitcoin” screen, you can choose from a dropdown list the cryptocurrency you want to buy (BTC, XRP, ETH, LTC, or BCHABC), specify the quantity of a particular cryptocurrency that you want to buy, and choose the fiat currency (USD or EUR) you want to pay with.

Binance App for Android - Screenshot 2 - 25 Apr 2019.jpg

  • You will then be shown the total amount (including the fee) that you will get charged if you go ahead with the purchase.

Binance App for Android - Screenshot 3 - 25 Apr 2019.jpg

  • Once you tap on the “Buy Now” button on this screen, you will be shown a “Confirm Your Order” screen.

Binance App for Android - Screenshot 5 - 25 Apr 2019.jpg

  • If you then tap on the “Accept, go to payment” button on the confirmation screen, you will be taken to the checkout screen on Simplex.com, where you will be asked to enter into a form your personal details (email, phone number, date of birth) and your card details.

Binance App for Android - Screenshot 6 - 25 Apr 2019.jpg

Source: CryptoGlobe

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Germany Is The European Leader Of Bitcoin & Ethereum Nodes

 

In what is emerging to be an interesting trend on the bitcoin network, Germany is fast growing as a hub for bitcoin nodes, as it is now responsible for 20% of all public nodes, inching closer to the United States, which accounts for 25% of bitcoin nodes.

Rounding off the top 5 for bitcoin nodes is France, Netherlands, and Canada. China may be experiencing a drop in mining after China’s strict approach to the cryptocurrency industry in recent times, and it is possible that miners may configured nodes to be publicly unreachable.

Similarly, it is also growing in terms of the number of Ethereum nodes, coming second again to United States, with 13% as opposed to the latter’s 28%. Data on the number of Ethereum nodes is conflicting, depending on the source. Here, China, France and Singapore complete the top 5.

Whatever the exact figure, it is clear that Germany is emerging as a hub for crypto activity. The nation’s authorities themselves are looking into the matter of crypto regulation.

Abhimanyu Krishnan
About Abhimanyu Krishnan

Abhimanyu is an engineer on paper but a writer by living. To him, the most celebratory aspect of blockchain technology is its democratic nature. While he’s hodling, he can be found reading a good book or making the local dogs howl with the sound of his guitar playing.

Source: Germany Is The European Leader Of Bitcoin & Ethereum Nodes

7 Reasons Bitcoin Price Will Smash Record Highs in 2020: Tom Lee

Bitcoin permabull and Fundstrat Global co-founder, Tom Lee says the worst is over for bitcoin.

In an interview with CNBC, Lee said the bitcoin price will likely see a new all-time high in 2020, eclipsing the previous $20,000 mark. Lee is famous for inflated bitcoin price predictions, but he backed up the latest forecast with seven key indicators.

1. The bitcoin halving is coming

Every four years, the bitcoin block reward is cut in half to maintain the strict 21 million supply. It gives bitcoin an artificial scarcity and inherent value.

bitcoin halving

The next bitcoin halving takes place in 390 days. Historically, the bitcoin price starts climbing a year before.

The next bitcoin “halving” is scheduled to take place on May 23rd 2020. Historically, the bitcoin price has begun to climb a year before the halving takes place. Tom Lee predicts the shrinking supply and upcoming halving will add fuel to the bitcoin rally.

2. Trading volumes back near record highs

As CCN previously reported, bitcoin trading volumes are back near record highs. Lee points to a key moment in January 2019 when year-on-year trading volumes turned positive

3. Bitcoin smashes past its 200 day moving average

Earlier in the month, bitcoin closed above its 200 day moving average in a technically strong bullish sign. The last time it happened was October 2015 and bitcoin went on to kickstart a two-year bull-run.

4. Fundstrat’s Bitcoin Misery Index turns positive

The bitcoin misery index (BMI) measures investor sentiment using a composite of bitcoin volatility, price, and trading activity. In April it hit its highest point since mid-2016.

Lee sees this as a sign that a bull market is forming since a high reading only occurs during bull markets. However, he also acknowledged that bitcoin famously took a 25 percent fall last time the BMI hit this point.

 

5. 60% – 70% increase in bitcoin OTC trading

According to a Fundstrat survey, institutional investors are pouring into bitcoin through over-the-counter (OTC) markets. OTC markets exist outside the main reported exchanges and reportedly account for half of all bitcoin trading volume.

Lee claims OTC trading activity is up 60% – 70% which is a sure sign that “big money” is coming to crypto. As he explains, OTC markets are:

“Really important in terms of how institutional investors trade crypto.”

6. Consensus that the “bottom is in”

Lee points to a handful of “original” bitcoin bulls who believe we have seen the lowest prices in this bitcoin rout. He repeatedly claims that bitcoin whales, who pulled money out of the market in early 2018 are now beginning to put their money back into bitcoin.

7. Bitcoin’s golden cross

Lastly, Lee points to the “golden cross” technical indicator. The golden cross is another hugely positive indicator that traditionally confirms a bullish breakout.

Bitcoin price will shatter its all-time-high of $20,000 in 2020, according to Tom Lee. | Source: Shutterstock

7 Reasons Bitcoin Price Will Smash Record Highs in 2020: Perma-Bull Tom Lee

By CCN.com: Bitcoin permabull and Fundstrat Global co-founder, Tom Lee says the worst is over for bitcoin.

In an interview with CNBC, Lee said the bitcoin price will likely see a new all-time high in 2020, eclipsing the previous $20,000 mark. Lee is famous for inflated bitcoin price predictions, but he backed up the latest forecast with seven key indicators.

1. The bitcoin halving is coming

Every four years, the bitcoin block reward is cut in half to maintain the strict 21 million supply. It gives bitcoin an artificial scarcity and inherent value.

bitcoin halving

The next bitcoin halving takes place in 390 days. Historically, the bitcoin price starts climbing a year before.

The next bitcoin “halving” is scheduled to take place on May 23rd 2020. Historically, the bitcoin price has begun to climb a year before the halving takes place. Tom Lee predicts the shrinking supply and upcoming halving will add fuel to the bitcoin rally.

2. Trading volumes back near record highs

As CCN previously reported, bitcoin trading volumes are back near record highs. Lee points to a key moment in January 2019 when year-on-year trading volumes turned positive.

Lee cites increased bitcoin adoption in Venezuela and Turkey for the increasing volume:

“Just taking those two countries, they’re close to 30% of the increase in on-chain activity, so it’s meaningful. “People are saying, ‘Look, I don’t trust using these local currencies. I don’t trust the banks. I’m going to start using bitcoin.’ And that’s what’s causing on-chain volume to really take off.”

3. Bitcoin smashes past its 200 day moving average

Earlier in the month, bitcoin closed above its 200 day moving average in a technically strong bullish sign. The last time it happened was October 2015 and bitcoin went on to kickstart a two-year bull-run.

4. Fundstrat’s Bitcoin Misery Index turns positive

The bitcoin misery index (BMI) measures investor sentiment using a composite of bitcoin volatility, price, and trading activity. In April it hit its highest point since mid-2016.

Lee sees this as a sign that a bull market is forming since a high reading only occurs during bull markets. However, he also acknowledged that bitcoin famously took a 25 percent fall last time the BMI hit this point.

5. 60% – 70% increase in bitcoin OTC trading

According to a Fundstrat survey, institutional investors are pouring into bitcoin through over-the-counter (OTC) markets. OTC markets exist outside the main reported exchanges and reportedly account for half of all bitcoin trading volume.

Lee claims OTC trading activity is up 60% – 70% which is a sure sign that “big money” is coming to crypto. As he explains, OTC markets are:

“Really important in terms of how institutional investors trade crypto.”

6. Consensus that the “bottom is in”

Lee points to a handful of “original” bitcoin bulls who believe we have seen the lowest prices in this bitcoin rout. He repeatedly claims that bitcoin whales, who pulled money out of the market in early 2018 are now beginning to put their money back into bitcoin.

7. Bitcoin’s golden cross

Lastly, Lee points to the “golden cross” technical indicator. The golden cross is another hugely positive indicator that traditionally confirms a bullish breakout.

Tom Lee polled his Twitter followers, 43 percent of whom believed the golden cross was a good sign.

Bitcoin to $25,000?

Tom Lee has long-held a positive view of bitcoin’s price but his forecasts aren’t always accurate. He predicted bitcoin would end 2018 at $25,000, a call that fell significantly short. Let’s see if this latest bullish prediction is more accurate.

Source: 7 Reasons Bitcoin Price Will Smash Record Highs in 2020: Tom Lee

This Awful Bitcoin Stat Guarantees It’s Not Crypto’s Future: Mathematician

With all the hype about blockchains and their many uses, we shouldn’t forget the original purpose for the Bitcoin blockchain and Nakamoto’s great leap forward.

Blockchains and cryptocurrencies were created to be decentralized currencies, replacing or complementing fiat currencies. For the most avid crypto fans, crypto is the future of currency and will eventually handle full-scale economies. We dream of the day that we laugh and tell our kids and grandkids that we had physical wallets, paper currencies, and things called “credit cards” (“Grandpa, seriously, you are so old!”).

Preparing the Crypto Economy for Mass Adoption

So what has to happen in order for us to run economies on the blockchain?

There are several hurdles we still need to clear, like getting the value of these currencies to be stable, handling privacy in a sensible way, and getting confirmation speeds fast enough for point-of-sale transactions.

By far the most glaring hurdle, however, is throughput. We need to be able to handle many, many more transactions per second than any current blockchain is capable of. At 13 transactions per second (a high estimate), Bitcoin can handle just over a million transactions per day. For niche, small economies, this might do the trick. But it certainly won’t do it for, say, the US economy.

Let’s put this into perspective. In 2017, the US gross domestic product (GDP) was almost $20 trillion. GDP isn’t a great measure of how much money changes hands during the year, but for our purposes, it’s close enough. If about $20 trillion changed hands in the US in 2017, then about $54 billion changed hands every day (20 trillion divided by 365). Ignoring how slowly Bitcoin processes transactions, if it were to handle $54 billion in transactions in one day, transactions would have to be on average about $54,000 (54 billion divided by 1 million).

What? Your everyday transactions aren’t $54,000 on average? Of course not. Between 2012 and 2017, US consumers spent roughly $80 per transaction online.

bitcoin is bad for payments

Bitcoin doesn’t look like a candidate to replace credit cards in the online payments realm. | Source: Statista

In 2016, transactions on Amex credit cards averaged about $141, and those on Visa averaged about $80. While it is true that corporations tend to transact in higher dollar amounts, it’s still likely that the crypto community is still a few orders of magnitude away from being able to handle all the transactions in an economy on a single blockchain.

If, based on the statistics I just gave, we assume that transactions are about $100 on average, then $54 billion would change hands every day in roughly 540 million transactions (54 billion divided by 100). That boils down to about 6,000 transactions per second on average. If we take into account the fact that most people transact during the day, a quick recalculation yields about 10,000 transactions in an average daytime second (instead of dividing by 24 hours of the day, divide by 16 to account for about 8 hours of sleep).

This estimate is probably about right. There are roughly 324 million people in the United States, and about 5 million businesses. If we assume that people and businesses, on average, transact 1.5 times per day, then we have about 500 million transactions per day (329 million entities multiplied by 1.5). This is close to our estimate of 540 million daily transactions from before, which gives about 10,000 transactions per daytime second in the United States.

Bitcoin Would Need to Increase Transaction Capacity By Four Orders of Magnitude to Replace Visa

Mastercard, Visa, Bitcoin

With Bitcoin’s staggeringly-limited transaction capacity, it’s unrealistic to believe it can rival Visa or Mastercard – much less both. | Source: Shutterstock

Getting back to the original question, how many transactions per second does a blockchain have to be able to handle in order to support the United States economy? Our rough calculation of 10,000 transactions per second is almost certainly not enough, but it does give a base from which we can work. To give perspective, Visa processes about 1,700 transactions per second on average but at peak times it can handle up to about 24,000 transactions per second. Their max limit is just over an order of magnitude higher than the average, in order to handle high-volume days like Black Friday or the post-Christmas wave of returns.

Taking Visa’s data as an example, since 10,000 transactions per second is our rough estimate for the average, we’d probably need to be able to handle around 100,000 transactions per second to really kill it (one order of magnitude higher than the average, similar to Visa). That’s a lot. More precisely, that’s about 10,000 times faster than Bitcoin—a whopping difference of four orders of magnitude.

To me, this says that our methods of finding consensus on a blockchain are simply not fast or powerful enough to actually use crypto as a viable currency. We need innovations in infrastructure, hardware, and consensus algorithms in order to even hope to reach this threshold.

Bitcoin Is Not the Future of Crypto

bitcoin

Derek Sorensen believes Bitcoin is definitely not the future of crypto. | Source: Shutterstock

That is to say that, barring some major changes and improvements, Bitcoin is almost certainly not the future of crypto.

Technologies like the Lightning Network attempt to solve the scalability problem, but do so awkwardly and ineffectively. Opening channels to transact off-chain ties up money in extremely inconvenient ways. In practice it incentivizes users to open a single channel with a centralized liquidity provider on the blockchain, rather than opening many channels. This effectively creates unregulated, centralized banks, and in my view goes against the core principles of blockchain technology. Even worse, because transactions are done off-chain and channel data can’t be deterministically rebuilt, if a Lightning node crashes, both parties can easily lose funds. It may genuinely be one of the worst ideas in cryptocurrency.

Notwithstanding, the blockchains of the future may not be so far off. New research in math shows promising results in the mathematical foundations of consensus that could produce blockchains with 50,000 transactions per second or more without compromising safety or decentralization. Every day, a new paper comes out or a crypto startup launches a new product.

There are plenty of bright minds working on securing the crypto dream. I guess in twenty years if you’re paying for your groceries with crypto you’ll know that we succeeded.

About the Author: Derek Sorensen, Pyrofex Research Mathematician, has an MSc in Mathematics and Computer Science from the University of Oxford and is set to start his PhD this fall at the University of Cambridge, where he will study logic and topology. His work at Pyrofex is in formal verification, which includes research on the theory of consensus and setting up mathematical frameworks to prove theorems about code.

Source: This Awful Bitcoin Stat Guarantees It’s Not Crypto’s Future: Mathematician

NYSE-Linked Bitcoin Exchange Bakkt Just Unveiled a Major Acquisition

Bakkt – the cryptocurrency startup launched by New York Stock Exchange (NYSE) owner Intercontinental Exchange – just yanked the lid off the full range of its blockchain ambitions.

The firm announced today that it has acquired Digital Asset Custody Company (DACC) as part of its efforts to gain regulatory approval for its crypto products.

Reportedly, Bakkt is less concerned with merely building a Bitcoin exchange than they are with offering institutional custody and payment platform services, all of which still requires regulatory approval.

Bakkt Acquires Crypto Custodian DACC

bakkt bitcoin futures

Bitcoin startup Bakkt acquired a crypto custodian to help bring its regulated platform to market. | Source: Shutterstock

The company recently announced its application for a BitLicense, and it is also pushing to become a trust company in New York. The company’s efforts have been repeatedly stalled by regulatory delays, despite positive news around its partnerships with Starbucks, Microsoft, and others.

Coinbase previously acquired a trust charter with the New York Department of Financial Services. Becoming a trust can be a faster process than becoming a BitLicense recipient, which can take several years. Bakkt says in a new blog post that it’s applied for a charter, and recently we reported that they’re also seeking a BitLicense.

Bakkt wants to offer Bitcoin futures contracts that pay out in cryptocurrency, which would set them apart from other Bitcoin futures offerings. Bakkt has several other ambitious projects in mind, but it must get through several layers of red tape before it finally launches.

Adam White wrote in Bakkt’s blog today:

“To provide regulated custody, we have filed with the New York Department of Financial Services for approval to become a trust company and in this capacity serve as a Qualified Custodian for digital assets. […] It is with that same commitment to setting a new standard for securely storing digital assets that we’re excited to announce that we have acquired Digital Asset Custody Company (DACC). DACC shares our security-first mindset and brings extensive experience offering secure, scalable custody solutions to institutional clients. The team’s experience integrating multiple blockchains and operating cutting-edge consensus mechanisms is a valuable addition to our team and future product line.”

Bakkt CEO Kelly Loeffler told Fortune:

“From the ground up what ICE has been building for two years is the safest version of a custody solution for digital assets.”

Custody: The Key to Mass Bitcoin Adoption?

bitcoin wallet crypto

A lack of regulated custodians has kept many crypto-curious institutions out of the burgeoning asset class. | Source: Shutterstock

Bakkt and Coinbase have both claimed that offering secure, modern custodial solutions for cryptocurrency will encourage institutional investors to expand their portfolios to include the speculative asset class. Thus far, Coinbase and Circle’s offerings have yet to make a significant dent in the overall market.

Fidelity, a traditional assets management company, also nears completion of its custodial solution. A range of options doesn’t necessarily equate to investor interest, but their availability may play a vital role during any future bull run. Institutional investors will, at a minimum, have several popular options to choose from if they consider getting into the market, opportunities that didn’t exist in previous times.

Bakkt’s current push is three-pronged:

  • They’ve acquired a company already engaged in playing custodian to digital assets.
  • They’ve applied for a BitLicense.
  • They’re working to become a registered trust.

There are other avenues they might still pursue, such as operating without New York as an available market at first. What is clear is that the company is anxious to get into the game, and the recent bull market activity is probably not far from their mind.

Source: NYSE-Linked Bitcoin Exchange Bakkt Just Unveiled a Major Acquisition

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Bitcoin Is The New Gold

I always write about this basic idea when it comes to any investing: which way is the market going, up or down?

If you know, you are in great shape; if you don’t, you should not be playing at all.

This is the question on bitcoin.

All last year I was saying, “It’s going down, hopefully to about $2,500.” It hit the low $3,000s.

Now bitcoin is going up and I will be saying “It’s going up.” I think it will hit $6,000 soon and go on to $10,000.

At $10,000 I will look to recalibrate.

For now the crypto winter is over.

Here is the chart:

The Bitcoin chart: the crypto winter is over

This is a simple chart with some guidelines and there is a clear pathway upwards.

There is apparently a lot of China interest in crypto right now, with tether selling at a premium. This makes sense if the market considers a yuan dollar depreciation on the cards. Tether has been shown to be resilient, even if it is still a controversial coin. It remains a good place to stash capital from short-term moves, be that from bitcoin volatility or ‘fiat’ privations.

Money flowing into stablecoins is going to lift bitcoin because fundamentally  money flowing into crypto is what sustains and raises prices.

Bitcoin and altcoins have to have positive money flow because they are “mined” and have their monetary bases expanded with every block. For bitcoin $9 million of new money must enter every day to match new supply. It’s not that straight forward because if miners hodl on to some or all of their bitcoin, less money needs to enter on a daily basis to prop up the price. In the end, however, supply and demand creates the price and for new supply to be matched at current levels, more than $3.3 billion dollars has to flow into bitcoin to make it go up.

That might seem a lot but it is not when you see the scale of modern markets. Gold production is $140 billion, so that’s the amount of fiat that most come into the system to keep its price around $1,300 an ounce.

Both assets have about the same emission as a percentage; the difference being the market cap of gold is about $5 trillion and bitcoin is $0.09 trillion.

Gold is the global asset to hedge against risk and investors are incredibly interested in it. It is a mainstream asset dwarfing equities and other assets in the mind of the man in the street as an “investment.”

Google searches for gold and Bitcoin in the US

Google searches for gold and bitcoin in the U.S.

Credit: Google

When you drill down into mindshare, when you look at interest in the financial news,  you can see what looks like bitcoin eating into the interest in gold, at least in the U.S.

If you look at the global picture this trend can’t be seen as clearly and when you appreciate global interest in gold is driven by countries with low tech penetration it suggests that as time passes, bitcoin and crypto will increasingly share the flight capital/risk asset crown with gold.

Google searches for gold and Bitcoin worldwide

Google searches for gold and bitcoin worldwide

Credit: Google

Even if bitcoin takes 20% of that market, bitcoin will be through its previous $20,000 high. That is without bitcoin continuing to be used for transactions or any other emergent use case or situation.

Bitcoin winter is over, the price is going up, the only question is how high. For now $6,000 is an easy target and $10,000 a coin this year is not such a hard target. I’m still accumulating.

Forbes Special Offer: Be among the first to get important crypto and blockchain news and information with Forbes Crypto Confidential. It’s free, sign up now.

Clem Chambers is the CEO of private investors Web site ADVFN.com and author of Be Rich, The Game in Wall Street and Trading Cryptocurrencies: A Beginner’s Guide.

In November 2018, Chambers won Journalist of the Year in the Business Market Commentary category in the State Street U.K. Institutional Press Awards.

 

Clem Chambers Clem Chambers Contributor

I am the CEO of stocks and investment website ADVFN . As well as running Europe and South America’s leading financial market website I am a prolific financial writer….

Intelligent Investing is a contributor page dedicated to the insights and ideas of Forbes Investor Team. Forbes Investor Team is comprised of thought leaders in the area…

Source: Bitcoin Is The New Gold

Bitcoin Could Plunge to $3,000 Even if it Surges Above $4,200

Bitcoin Could Plunge to $3,000 Even if it Surges Above $4,200: According to one cryptocurrency trader, even if bitcoin hits the $4,200 resistance level, which has been widely considered as a key level for the dominant cryptocurrency to break out of, it is vulnerable to a drop to the low $3,000

https://www.pivot.one/share/post/5c9e1327ad59e75b4127d719?uid=5bd49f297d5fe7538e6111b6&invite_code=JTOJYV

It took around 24 hours for Bitcoin (BTC) to drop under $4,000

It took around 24 hours for Bitcoin (BTC) to drop under $4,000 and come back to the same price level. On March 25, Bitcoin fell under $3,950 and a few hours later, it grew again and reached $4,080. This shows that there is a large number of investors purchasing Bitcoin under $4,000…

https://www.pivot.one/share/post/5c9cd1311d57e7624f5d137b?uid=5bd49f297d5fe7538e6111b6&invite_code=JTOJYV

Sleeping with the Enemy: Why Institutional Adoption is Bad for Bitcoin

bitcoin, wall street, crypto, nyse

If recent noises coming out of Wall Street are anything to go by, it looks like 2019 is shaping up to be the year of the institutions for Bitcoin and cryptocurrency.

However, the arrival of the institutions as they stampede over that hill represents a double-edged sword. On the one hand, prices will almost certainly pump in the short to medium term, even if just by association alone.

On the other hand, we appear to be in the process of welcoming into our beds the very enemy that cryptocurrency was set up to defeat – the old, deep-rooted bloodlines of the financial elite.


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So yes, the institutions are absolutely coming to crypto, and if you think that’s a good thing, then this may be a good time to ask where your loyalties actually lie.

Cryptocurrency’s Overton Window Threatens to Get Smaller

gemini bitcoin crypto exchange

Gemini, the crypto exchange founded by the Winklevoss twins, is touting its status as a “regulated” platform to lure institutions. | Source: Shutterstock

The Overton window refers to the range of ideas that are permitted to be discussed in the public sphere. The topics outside the window aren’t necessarily banned or censored – they’re just buried so deep that most people don’t know they exist. Not until years later when you stumble across them in some shady corner of the internet, usually presented in the form of a rouge-colored pill.

As has already been witnessed in the r/bitcoin subreddit, when people have a vested interest to protect, they will quite happily make adjustments to the length and breadth of the Overton window to keep its range of view to their liking.

Deleting unfavourable comments from a crypto subreddit isn’t all that surprising, especially given how much rabid coin holders want to protect their investments. But there’s ample evidence to suggest that the rampant censorship on r/bitcoin began only when the institutions arrived.

Those institutions are the financial backers behind Bitcoin’s leading development group – Blockstream. They include AXA Venture Partners, an investment wing of AXA Group – the second largest financial services firm in the world. Blockstream has helped guide the development of Bitcoin since 2016, and if you didn’t already know that, then it may be because the Overton window has been set up specifically so that you don’t.

Without veering into the Bilderberg conspiracy, the censorship of r/bitcoin offers a taste of how the ‘old money’ institutions react to cryptocurrency’s open-source, decentralized ideals. They laugh, then proceed to take your money.

Recuperation: Absorbing Bitcoin Without Killing It

facebook privacy scandal

It’s hard to believe that Facebook was once hailed as a technological messiah. Will crypto suffer a similar fate? | Source: JOEL SAGET / AFP

“Whoops! The web is not the web we wanted in every respect.”

Those words were uttered by Sir Tim Berners-Lee earlier this year, as the man who invented the World Wide Web bemoaned the fact that the original dream of the internet had not come to fruition.

Berners-Lee was comparing the early 1990s notions of what the internet promised to be – free, open, anonymous, decentralized – with the internet we’ve come to know today – censored, controlled, tracked, and spied upon, thanks to the collusion of governments and big tech corporations.

Note: the internet didn’t need to be destroyed to have its disruptive potential neutralized; it only had to be brought round to the accepted way of doing things. This is a process which has happened often enough to gain its own name – recuperation, defined as:

the process by which politically radical ideas and images are twisted, co-opted, absorbed, defused, incorporated, annexed and commodified within media culture and bourgeois society, and thus become interpreted through a neutralized, innocuous or more socially conventional perspective.”

Some Bitcoin enthusiasts were predicting a fate of recuperation for the crypto space back in 2014, such as this early Bitcoin miner by the name of Stefan Molyneux.

Zooming in on the internet analogy, in 2011 Facebook was being hailed as a technological messiah for the inadvertent role it played in helping to organize the Tahrir Square protests in Egypt. Fast forward a few years, and Mark Zuckerberg’s social network has become one of the biggest threats to privacy in internet history.

Crypto is the Cure: But Will We Take Our Medicine in Time?

bitcoin crypto

Bitcoin’s future success or failure as a tool of freedom will not come down to the efficiency of its technology, but whether or not people can step up to the responsibility of being their own caretaker. | Source: Shutterstock

The only way to avoid the snare of the banksters, the globalists, the mainstream, the man – whoever it may be – is to become independent and self-sufficient enough that we no longer need to buy what they’re selling. Under those conditions, no amount of propaganda or salesmanship would have an effect, since there would be no gaping hole left in our lives for them to fill.

The ears of libertarians should be picking up about now, and rightly so. The plight of libertarianism as a political ideology is very analogous to the plight of Bitcoin in its quest to liberate the masses from financial bondage.

The fate of libertarianism depends not on its efficacy as a system of governance, but rather on the ability of the average citizen to live up to its ideals. Likewise, Bitcoin’s future success or failure as a tool of freedom will not come down to the efficiency of its technology, but whether or not people can step up to the responsibility of being their own caretaker.

In today’s culture of dependence, the prospect of either of these eventualities coming to fruition seems slim. The education required to foster this new mentality of independence isn’t found in the public school system. If the sudden increase in Bitcoin’s use in Venezuela is anything to go by, then as is often the case as we look through history, we may first need to suffer catastrophe before we can see where we’ve gone wrong.

Perhaps a catastrophe similar to, or worse than, the one which caused a cipher named Satoshi Nakamoto to commence work on Bitcoin in 2008.

“03/Jan/2009 Chancellor on brink of second bailout for banks.”

Bitcoin’s Future is Not Set – its Fate is what it makes for Itself

bitcoin, institutional investor

It’s unlikely that the established financial order will just saddle up and play along with the quasi-anarchist rules set up by a freakish band of coders and cypherpunks.| Source: Shutterstock

Look, if the institutions arrive and all they do is use cryptocurrency to diversify and boost their pension funds, then all is well. Prices will increase through increased demand and exposure, and all of us early adopters will reap the benefits of this adoption in the long run.

It’s unlikely, however, that the established financial order will just saddle up and play along with the quasi-anarchist rules set up by a freakish band of coders and cypherpunks. Yes, they’ll use the technology, but that doesn’t mean they’ll play by its rules.

This has been seen already as firms like JP Morgan and Facebook turn to creating their own cryptocurrencies – based on their own private protocols, with their own self-tailored rules. Strangely enough, this could turn out to be the most amicable solution between the cryptosphere and the institutions – they have their ‘cryptos,’ and we keep the real thing.

Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.

Source: Sleeping with the Enemy: Why Institutional Adoption is Bad for Bitcoin