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Is the Price of Bitcoin Satoshi Vision (BSV) Driven by Fake News?

The Bitcoin Satoshi Vision (BSV) price chart is peculiar to analyze. Given the state of cryptocurrency investment, it is safe to say that a large influencer of crypto value is derived from speculation, and BSV is plagued by speculation as its chain leader, Craig Wright, continues to claim that he is Satoshi Nakomoto—the anonymous original creator of Bitcoin. Analyzing BSV over the last year, there were two major surges in price and they both appear to be driven by intriguing public announcements or as some in the community would adamantly say: fake news.

Source: CoinMarketCap

The First Surge: Craig Wright is Granted U.S. Copyright

On May 21, 2019, news sites reported that Craig Wright had United States copyright registrations for the Bitcoin (BTC) white paper authored by Satoshi Nakomoto.

Upon hearing the news via CoinGeek that Wright had been granted copyright registrations for the original Bitcoin Whitepaper by the U.S. Copyright Office, I had had very mixed reactions. While I, and many others in the crypto space, would like to know the true identity of Nakomoto – it was difficult to picture Wright as the anonymous author of the whitepaper that kick-started it all.

With many believing that the U.S copyright office had vindicated Wright and his claims, the price of BSV shot up from around $61 to nearly $230. The price would be short-lived, however, as the U.S. copyright office would go on to release a statement that emphasized that the agency, “does not investigate the truth of any statement made,” and BSV slowly made its way back down throughout June and July.

As highlighted in an article from Bitcoin.com published on May 23rd, anyone can apply for registration of anything at the copyright office and unless someone else makes the same claim it is unlikely there will be much contention.

The Second Surge: Wright Claims Access to Tulip Trust

As would be expected, an inventor of Bitcoin would have large holdings in BTC. Wright and his late partner David Kleiman had previously brought to light a draft of a contract that described the Tulip Trust which is estimated to hold around 1.1 million Bitcoin which is worth approximately 10 billion U.S dollars. Following the death of David Kleiman, Wright revealed that the contract further outlined the Bitcoin held should be granted entirely to himself which has led to an ongoing battle with Ira Kleiman, David’s brother.

On Jan 10th, 2020, Wright was issued a court order that compelled him to unlock the Tulip Trust. The order stipulated that he has until February 3rd to provide the keys to the Tulip Trust, with the public keys required via bonded courier before the end of January.

As reported by Blockchain.News, on Jan. 14 Wright seemed to instigate the second surge in BSV’s price when he filed a notice of compliance with the court which stated, “Dr Wright notifies the court that a third party has provided the necessary information and key slice to unlock the encrypted file, and Dr.Wright has produced a list of his bitcoin holdings, as ordered by the Magistrate Judge, to plaintiffs today.

Following the filing of compliance, the price of BSV surged up to a high of $459 and lead to BSV being the 4th highest ranked cryptocurrency in terms of market cap, surpassing Bitcoin Cash.

As the key slice itself has not been produced, Wright’s announcement of the court filing is being viewed by many as an attempt by Wright to further manipulate the price with sensational news. As Wright was a trailblazer for the Bitcoin Cash fork, many in the community are still suspicious and believe he is instigating an exit scam and has driven the price up through speculation.

While the technology behind BSV is not technically bad or uncompetitive with other cryptocurrencies, it is clear the milestones of BSV price are mainly driven by deliberately sensationalized and perhaps misleading news. Other sources have also cited wash-trading as the main contributor to the increased price.

One thing is clear, is that Wright’s reputation has been suffering as he continues to make sensational headlines. Major exchanges like Binance and Kraken have already delisted BSV coin. Wallets like Blockchain.com wallets have also ended their support for BSV.

Wright in Conflict with Satoshi’s Final Message

Perhaps the evidence that Wright is not Satoshi is in the Bitcoin creator’s final message “It would have been nice to get this attention in any other context. WikiLeaks has kicked the hornet’s nest, and the swarm is headed towards us.”

Satoshi clearly realized the power of the technology he was bestowing upon the world and he apparently wanted none of the praise and none of the scrutiny. Juxtaposed to the outlandish character of Craig Wright and his desperate need to be recognized, we feel confident that Wright is not Satoshi.

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Bakkt BTC Options Trading Falls To Zero: What Does This Mean for Mainstream Adoption?

When the Intercontinental Exchange (ICE) announced its plans to launch the Bakkt Bitcoin physically settled futures trading platform, many believed it would act as the trigger for mass institutional adoption of cryptocurrency.

Yet the platform has so far failed to show any signs of being the catalyst for the mainstream and here we are at the start of a new year and trading volumes on Bakkt for options on Bitcoin futures contracts have effectively fallen to zero.

As the majority of cryptocurrencies have been in a bullish state since the start of the year, what does the lack of the regulated and institutional platform’s BTC options mean for the market?

Ten Days with No Options

Popular analytics firm Skew posted a tweet on Tuesday, highlighting that Bakkt had not recorded any trading on Bitcoin options on its platform for ten straight days. This figure is supported by ICE’s own website which also records zero trades from Jan 20 – Jan 24. In fact, it would appear that the last trade was 20 bitcoins which occurred on Jan 17.

Bakkt’s options futures have so far performed poorly at best and they were soundly outmatched by the unregulated exchange Deribit in their opening week.

Are the Institutions Ready?

The impetus behind Bakkt was to create a safe and regulated environment where larger institutions, corporation, and investors would feel comfortable leveraging for access to the nascent crypto market.

The trading volume or lack thereof seems to indicate that these larger investors are still weary of cryptocurrency. While it would be over eager to expect mass adoption right now, the slow build is a little slower than most would have expected.

Although the platform is not currently being heavily utilized, the fact that it exists and has the backing of ICE—which also owns the New York Stock Exchange—is a significant step in bringing Bitcoin and cryptocurrency to the mainstream. At least when the big boys finally come to play, there will already be a venue ready for them.

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Google Web Searches for Bitcoin Hit a Historic Low with Nigeria Still Leading

Regardless of the fact that there have been a lot of concerns lately about the recent outbreak of the Coronavirus and its possible negative impact on the cryptocurrency market, the price of Bitcoin continues to break new resistance levels, soaring above the $9000 mark over the last few days.

The Global web search data from Google Trends indicate that there has been a decline in searches for Bitcoin in recent times, as it has recorded an all-time low since October 2018. Even in the midst of the activities going on in the global scene we see that some African countries have maintained the lead in these searches with Nigeria is recorded as the country with the highest level of Bitcoin google searches, followed by South Africa and Ghana respectively. Although the results from Google trends are often seen as irrelevant data metrics by some people, it serves a very strong indication which is very important to the growth of the industry.

Image from Google Trends

Google Trends also revealed that “Binance exchange” is the most popular Bitcoin-related search query followed by IOTA, TRON, and Luno.

The top ten countries by global Bitcoin web searches include; Nigeria, South Africa, Ghana, Austria, The Netherlands, St. Helena, Slovenia, Singapore, Switzerland and Australia with a score of 100, 90, 76, 68, 66, 66, 66, 63, 60, and 59 respectively at the time of writing this report.

However, the major leaders in the industry, i.e., Canada, United States, Malaysia, Germany, and the United Arab Emirates, hold the 11th, 12th, 13th, 14th, and 15th positions, respectively. Statistics from China are left out in this data metrics as Google has no access to that region.

Meanwhile, the United States of America is one of the leaders in the cryptocurrency and blockchain industry but has recorded an even lower position on Google Trends than the results generated for previously stated countries.

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Ugandan Government Forms an Expert Task Force to Delve into Crypto Usage

The Ugandan government has formed a team of experts to research and offer guidance on digital financial operations, such as cryptocurrencies. This information was revealed by David Bahati, the State Minister of Finance in charge of Planning, as he aired his views on the floor of the Ugandan parliament about the dangers posed by pyramid and ponzi schemes to citizens.

Cryptocurrencies are Ideal Examples of Blockchain

Bahati noted that cryptocurrencies were an ideal example of the benefits rendered by blockchain technology even though they are not under the control of the Ugandan government.

He acknowledged, “Cryptocurrency is a virtual currency in which encryption techniques, based on Blockchain technology, are used to generate units of the virtual currency and verify the transfer of virtual funds. This process typically operates outside the purview of a Central Bank or any other Central Authority.”

He also pinpointed that a cryptocurrency offers its own usage terms and conditions, validity, and authenticity as it is a decentralized peer-to-peer payment network that is propelled by its users with the absence of a central authority.

The minister asserted that blockchain technology was not only used in operating cryptos, but also in various industries, such as logistics, manufacturing, and land registration. The government has high hopes for the technology’s applications to revamp the Ugandan economy.

He ascertained, “Blockchain is one of the disruptive technologies that can be harnessed to revolutionize and improve business processes.”

Ugandans Preyed Upon by Crypto Scam

In December 2019, the Ugandan police arrested directors of a cryptocurrency business scam dubbed DunamisCoin that had allegedly embezzled its citizens 10 billion Ugandan shillings, approximately $2.7 million USD.

It is the reason why the minister was keen on addressing Ponzi and pyramid schemes that were taking advantage of the citizens.

He stated, “Ponzi and pyramid schemes involve dishonest investors taking advantage of innocent individuals by encouraging them to invest their savings (money) into ventures – that have no underlying product, with a promise of extraordinary returns.”

The Ugandan government, therefore, seeks to capitalize on blockchain technology by establishing an expert task force.

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Could Bitcoin and Blockchain Be Affected by the Coronavirus?

As blockchain has spread in the global industry, the coronavirus has begun to follow. Unfortunately, rather than offering freedom and independence, the disease brings uncertainty and risk.

To help stop the spread of the virus, many businesses are implementing measures to aid and help employees avoid contact with others, as the disease is said to be passed on through body substances found in sneezing and coughing. Large companies have been asking people to work from home and even ask if anyone would like to leave certain high-risk countries and work remotely from their birth country. People in Hong Kong, China, and other Asian countries would be largely at risk, and the offer to leave is certainly important to factor in.

With workforces all feeling the effects of the problem, it is certain that businesses will be feeling slowed down processes and overall performance as well.

Blockchain mining and the Bitcoin platform

Economies will be hit hard, feeling effects from staff and sourcing as well as customer dips in spending. Major businesses including even Apple, are expected to incur massive losses to growth and overall earning during this period, with a senior analyst stating, “Were it not for the coronavirus, the sustainability of the performance in China would not be called into question … (It) is an important risk that investors need to monitor.”

Businesses expect to see major roadblocks and problems from the virus, but this is not just a problem for the very best and rich companies. Small to medium businesses are most at risk, as cash flow and month to month income can be crucial to survival. Some businesses were already struggling in the current economy and a setback in spending from customers due to fear would be the final nail in the coffin.

Blockchain mining, despite all of the problems, is operating and expected to continue at close to normal due to machines being the main source of power providing Bitcoin and all other cryptocurrencies the foundation to run.

Mining factories require and usually have limited employees, leading to quick turn around and machine maintenance. Reports did share that some businesses waiting on new computing chips and supplies have needed to adjust, but that most facilities have operated as normal.

If the coronavirus does continue to cause shortages and provide more restrictions, it is certainly possible that all areas of mining would come under attack, due to the upkeep of machines and parts.

During the past few weeks, the crypto markets have continued to grow. Bitcoin, as well as other top currencies, continue to hit yearly highs in spite of viruses and health fears.

With the cryptomarket showing strength, maybe it will be able to outlast this latest health scare and not follow other traditional stock markets that have seen a sharp decline, showing a 9% drop across Chinese Indexes.

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Canadian Dollar Stablecoin QCAD Launched for Mass Market

Canada Stablecorp Inc. has launched a new regulated Canadian Dollar pegged stablecoin called “QCAD”.

Canada Stablecorp Inc. is a joint venture between 3iQ, Canada’s largest cryptocurrency manager and blockchain development leaders, Mavenet. QCAD’s launch was officially announced in a press release on Feb. 11.

Built on the Ethereum blockchain, QCAD utilizes the ERC-20 token standard and is the first Canadian dollar stablecoin designed for the mass market.

Challenge Tether

Since its launch, QCAD has been available for purchase through cryptocurrency exchanges DVex, Newton, Bitvo, Netcoins, and Coinsmart.

According to Canada Stablecorp Inc, the new stablecoin is supported by cryptocurrency custodians Bitgo and Canadian local custodian Balance. George Bordianu, CEO of Balance said, “Given QCAD’s aim and focus, it only made sense to have a Canadian custodian offer support from day one. We’re extremely excited to be that custodian and to be working closely with Stablecorp in enabling the local ecosystem to grow.”

Justin Hartzman, CEO of Coinsmart expressed his excitement over the development citing the need for a Canadian stablecoin. He said, “As Tether has become the most actively traded of all cryptocurrencies, having a Canadian equivalent will be a game-changer for the Canadian crypto ecosystem. It will provide much-needed flexibility as investors will finally be able to park their funds in a stablecoin while coming in and out of trades. We could not be more excited to partner with the QCAD team to bring this idea to the market.”

The Rise of Stablecoins

Cryptocurrencies are traditionally highly volatile assets to hold. Even the most prominent and established assets in this class, like Bitcoin and Ether, are now having to contend with the rise of stablecoins which can function as cryptocurrencies but, as the name implies, remain at a stable price point.

According to Canada Stablecorp Inc, stablecoins are now the fastest growing digital asset class and provide the critical missing link between traditional financial systems and the nascent digital asset class.

Kesem Frank, President of Mavennet Systems, stated, “QCAD is a significant stepping stone for the Canadian financial market, establishing an imperative link to the world of digital assets.”

QCAD is being launched as stablecoins are being developed the world over. Last December, the European Central Bank (ECB) announced its own plans to get “ahead of the curve” on stablecoins and accelerate their efforts in the digital currency space.

At her debut press conference, ECB President Christine Lagarde said, “My personal conviction is that given the developments, we are seeing, not so much in the bitcoin segment but in the stablecoins projects.” She reiterated “We’d better be ahead of the curve if that happens. Because there is clearly demand out there that we have to respond to.”

A debate has raged within Europe regarding whether the ECB should issue its own digital currency but there has been considerable resistance from EU authorities.

In September 2019, the IMF released a paper entitled, Digital Currencies: The Rise of Stablecoins outlining the significant benefits stablecoins could bring to society. The IMF also said that banks could lose their intermediary roles as the public would most likely switch to stablecoin providers.

Lagarde was head of the IMF at the time and appears to be responding as to this issue with her role in the ECB, by mandating the central bank to compete with its own innovation.

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Coinbase Becomes First Custodian to Pass Two Major Security Evaluations

Coinbase Custody has become the first cryptocurrency custodian to pass two new security evaluations.

In a press release published on Feb. 12, Coinbase Custody announced it had been awarded both Service Organization Control (SOC) 1 Type 2 and SOC 2 Type 2 reports by accounting firm Grant Thornton.

What is SOC?

For Coinbase Custody clients, these reports reinforce that the system requirements, service commitments, and data protection safeguards of the custodian meet the rigorous standards necessary to provide the safest custody solution in the crypto ecosystem.

The evaluation was conducted by the Grant Thornton accounting firm. On the firm’s website, it is explained that SOC reports provide and evaluation of the strength of “financial, operational and information security controls in an organization.”

SOC 1 deals specifically with an organisation’s ability to audit itself effectively while SOC 2 reports provide information on the “security, availability, processing integrity, confidentiality and privacy.”

The press release confirmed that Coinbase Custody, “Will continue to perform regular SOC 1 and SOC 2 examinations to maintain the same level of rigorous security and oversight standards that has established us as the largest and most trusted leader in the space.”

In Jan 2020, cryptocurrency exchange and custodian Gemini was also awarded a SOC 2 Type 2 evaluation in partnership with Big Four firm Deloitte.

Crypto Custody Turning Mainstream

As reported by Blockchain.News, many German banks have filed for a license to offer crypto custody services.

Germany’s Federal Financial Supervisory Authority, popularly identified as BaFin, has received over 40 applications from German banks interested in offering crypto custody services.

At the beginning of this year, BaFin updated the Anti-Money Laundering Act, therefore, permitting the banks and other financial institutions to extend their offerings beyond traditional securities like bonds and stocks to include digital assets such as XRP, Ether (ETH), and Bitcoin (BTC).

The new law gives those institutions, which are already offering such digital assets, a transitional period till November 2020. They, however, must notify the regulator about their intention to obtain such a license by the end of March. In other words, the new regulations require financial institutions to have an operational license if they want to offer custody services.

The legislation triggered a run on the license among German banks. The volume of applications has outstripped the expectation of the finance ministry. The regulator has already received more than 40 applications from licensed banks for a license for custody and other services related to cryptocurrencies.

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OKEx Delves Deeper Into Indian Crypto Space with CoinDCX Partnership

OKEx, a leading Malta-based crypto exchange, has shown its resilience to penetrate the Indian crypto market and now plans to launch leveraged future products in partnership with CoinDCX, the nation’s biggest crypto trading platform.

New derivative to be established

Through the strategic collaboration, CoinDCX will be able to launch a new derivative product called DCXfutures, and this will be instrumental in enabling OKEx set foot in the Indian crypto space.

As a result, both retail and institutional Indian investors will be in a position to trade futures, and OKEx will offer a 15x leverage on various cryptocurrencies, such as Bitcoin, Litecoin, Ripple, Bitcoin Cash, and Ether. Additionally, perpetual futures contracts will be availed in both Ether and Bitcoin.

OKEx is being touted to prompt more liquidity based on its notable capacity of providing world-class futures.

Head of OKEx India, Zaz Zou, noted, “India is primed to be the driving force behind the mass adoption of cryptocurrencies, which is why we are keen on adding more equitable currencies to the ecosystem.”

He added, “We believe having a variety of options to transact digital currencies will bolster the growth of the economy in India as it positively impacts both crowdfunding and institutional funding.”

During DCXfutures launch, maker fees will be at 0.2%, whereas the service will be at the beginning availed to select participants on an invitation-only criterion. Nevertheless, the general public is expected to utilize DCXfutures from the second quarter of 2020 using a single wallet.

India eyes 5 trillion dollar club status

Sumt Gupta, CEO and co-founder of CoinDCX, noted that India holds considerable capabilities in the crypto sector. Once fully exploited, this nation could become a force to reckon with globally.

He acknowledged, “With the huge potential of cryptocurrency markets to accelerate economic growth and wealth generation in India, we believe that this collaboration takes India one step closer to joining the ‘5 trillion dollar club’ as one of the fastest-growing economies in the world, allowing us to avail of new opportunities and take on new challenges.”

India has been making essential steps in the blockchain arena. For instance, according to LinkedIn’s 2020 Emerging Jobs Report, sought after positions such as blockchain developers, have skyrocketed to unprecedented levels in this country.

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Virgin Galactic CEO Rejects Coronavirus Bitcoin Bull Theory as “Idiotic”

Virgin Galactic CEO, Chamath Palihapitiya has dismissed the notion that the disruption to traditional markets caused by the coronavirus will serve as the catalyst for a major Bitcoin and cryptocurrency bull run.

Appearing on CNBC’s Squawk Box, Palihapitiya discussed the intrinsic value of bitcoin, stating that everybody would benefit from staking as little as “1% of their assets” in Bitcoin.

Coronavirus Bull CorrelationDuring the episode, the billionaire chairman advised everyone to get hold of some Bitcoin (BTC) as a form of crisis insurance. Palihapitiya also discussed Bitcoin’s disconnection from every other financial instrument which in his view makes it a “fantastic hedge” option.

Despite these claims, Palihapitiya was quick to dismiss the theory that economic disruption caused by the coronavirus outbreakwill serve as a trigger for a crypto bull run. He said, “I don’t think when you wake up and see a coronavirus scare and the Dow down 2,000, you should not be going in and buying Bitcoin – that is an idiotic strategy.”

Palihapitiya is a former Facebook executive and longtime Bitcoin advocate. Virgin Galactic, began accepting Bitcoin for its spaceflights in Nov. 2013, becoming one of the first high-profile companies to accept BTC.

Is Bitcoin a Safe Haven Asset?

Traditional markets have been falling amidst the Coronavirus disruption and Bitcoin’s price has taken a ride down with it. Once again bitcoin disciples are reconsidering the pioneer cryptocurrency’s status as a safe-haven asset.

As reported by Blockchain.News, last month during the escalating tensions between the US and Iran, the bitcoin price surged and several crypto analysts reignited the old debate on Bitcoin’s ability to function as a safe-haven asset similar to gold in times of geopolitical uncertainty.

In the Amun Research Letter—Issue 37 published on Jan. 7, the technology company responded to the debate by identifying two pieces of proof necessary to confirm bitcoin’s safe-haven status argument—proof that Bitcoin could act as a safe haven asset in theory, and proof that the market is actually treating Bitcoin like gold or other safe-haven assets. According to Amun’s research, the second proof is what really decides Bitcoin’s price reaction to geopolitical uncertainty and is the primary driver of Bitcoin’s long-term utilization as a store of value.

Amun’s own Thesis for Crypto discusses Bitcoin as a theoretical safe haven asset due to its limited supply, decentralization, security, and resistance to censorship.

Analyzing Bitcoin’s rolling correlation to Gold over a thirty day period yielded no discernible trend over time and the correlation is incredibly erratic. This data uncovered by Amun defies expectations that there would be a demonstrable strong correlation if Bitcoin did, in fact, fulfill a similar safe haven function.

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Bitcoin Safe Haven Status Under Fire Following US Federal Reserve Rate Cuts to Combat Coronavirus Disruption

Equity markets have been surging following the US Federal Reserve’s (Fed) announcement of an emergency rate cut to counter the economic disruption of the coronavirus.

The bitcoin price which had also been experiencing a recent bearish decline, also reacted to the news of a rate cut of half a percentage point from the Fed, with a sudden spike from $8400 to $8950.

The reaction of the bitcoin market to the first cut to key rates from the Federal Reserve since December 2008, during the global financial crisis, is being carefully observed by the crypto community and may eventually reveal the cryptocurrency’s true nature.

Bitcoin and Commodities

Is bitcoin a currency designed to facilitate commerce, or is it a commodity that has intrinsic value, which rises and falls according to supply and demand? This is a question that the crypto community has been asking for some time and the Federal Reserve’s rate cut could provide the answer.

By cutting rates the Federal Reserve will increase the supply of money in the global market, a welcomed move by businesses everywhere. The half a percentage rate cut effectively devalues the US dollar, the de facto global currency, thus it should put up the price of commodities such as gold as the supply of gold did not increase. This should in theory also apply to bitcoin as its supply is also fixed.

Chart: The Balance Source: St. Louis Fed

The Bitcoin price did react almost immediately to the Fed’s rate cuts, shooting up almost $200 only minutes after the announcement. The rise was short-lived and the price fell immediately beginning the current cycle of volatility.

BTC USDT 1-minute chart. Source: TradingView

It should be noted that the BTC price movements since the announcement have mirrored the traditional commodities and equities markets which also spiked before plunging 2 points. Gold itself did not see a bullish price reaction to the cut but there are still many reasons gold and bitcoin could climb higher from this point.

Bitcoin Safe Haven Hedge Questionable During Outbreak

VanEck recently outlined the case for institutional bitcoin investment in a report published on Jan. 29. According to the investment management firm, even a small amount of BTC allocation could improve a portfolio’s upside.

VanEck explained that BTC is not quite a currency but still has the potential to become one. The report also suggests Bitcoin bears the necessary features that could see it become a digital gold, but its future monetary value hinges heavily on how people’s perceptions of its value develop.

In a recent interview with Blockchain.News, Oleksandr Lutskevych, CEO and Founder of the CEX.IO Bitcoin exchange revealed that US investors have been looking for a bonafide store of value in bitcoin to hedge against the Federal Reserve’s quantitative easing. He noted similar sentiments in the UK during Brexit as citizens also invested heavily in bitcoin to hedge against a possible depreciation of the GBP.

As the coronavirus spread, global markets have been gripped by a ruthless sell-off, and Bitcoin has failed to serve as a store of value, which many believe should be its main use case. In fact, BTC performed worse than any traditional asset, shedding 15 per cent of its value in less than a week

Mike Novagratz, CEO of Galaxy Digital tried to shed some light on why bitcoin is failing as a safe haven in a tweet on March 1.

Novagratz wrote, “ How did BTC go from being a hedge against bad stuff to getting washed out and trading like a risk asset? When things go from bad, to very very bad like they did last week, investors take leverage down as fast as they can. They book profits to make up for other losses. Ouch.”

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