Three of the most respected economists in the world – Kenneth Rogoff, Nouriel Roubini and Joseph Stiglitz – have repeated their past criticisms of bitcoin, saying governments will regulate it “into oblivion” in an effort to fight money laundering and tax evasion.
The three, all of whom have criticized bitcoin in the past, now claim it will experience additional falls in value due to regulators’ efforts to stop criminals from using it to launder money and evade taxes, Barron’s reports.
Stiglitz: Governments Will Act
Stiglitz, a Columbia University professor and Nobel Prize-winning economist, said a means of payment based on secrecy cannot be used to develop a transparent banking system. He said no government can permit opening a hole such as bitcoin and allowing “nefarious activity” to go through it.
Governments have not taken such action to date, Stiglitz said, because of the relatively small size of the bitcoin market. As it grows to a more significant size, he said governments will take action.
More than a year ago, Stiglitz said bitcoin’s main use is to avoid taxes and regulation. In January, he again said he saw no other use for bitcoin.
Rogoff: Bitcoin To Fall To $100
Rogoff, a Harvard University professor who was formerly the International Monetary Fund’s chief economist, concurred, repeating his previous prediction that bitcoin will fall to $100 in a decade. He said it is a certainty that authorities will regulate anonymous transactions.
Rogoff stated in October that the technology behind bitcoin will prosper, but that bitcoin’s price will deteriorate. Bitcoin’s fate, he said, depends on what action governments take to regulate it. This past March, he said that if bitcoin’s use for evading taxes and money laundering ends, its use for transactions is “very small.”
Roubini: Bitcoin Not A Currency
Roubini, a New York University economist known as “Dr. Doom” for predicting the financial crisis, said for bitcoin to be a currency, it must be a stable store of value, a unit of account and a means of payment, none of which it currently is. He asked how something that falls 20% in value one day and jumps as much the next day can be a stable store of value, adding that the cryptocurrency is not even accepted at bitcoin conferences.
Roubini has called bitcoin a bubble since 2014, and in May reiterated his longstanding contempt for it, calling it “bulls–t” during a panel discussion at the annual Milken Institute Global conference in Los Angeles.
Criticism Strengthens Bitcoin Critics
The three economists are not the only observers to criticize bitcoin’s growth, but their comments bring additional heft to arguments against bitcoin. Bitcoin advocates want it to move from its association with money laundering to a more legitimate financial instrument.
The comments come amidst news in recent months that JPMorgan and Goldman Sachs have taken measures to profit from cryptocurrencies.
The majority of large asset managers, however, have stayed skeptical. Six of the biggest asset managers in January said they will not invest in bitcoin.
Warren Buffet, the head of Berkshire Hathaway, said in April that purchasing bitcoin is more similar to gambling than investing.
Crypto Arbitrage Today: XLM, LTC, Dash, TRX, EOS, XMR
As the overall cryptocurrency bear market continues to rage on in full effect, the moneymaking opportunities involving Bitcoin and altcoins are slowly drying up. There is still money to be made by playing the spreads, but arbitrage opportunities may slowly become a better option at this rate. The following six options are worth keeping in mind throughout today.
Dash (Bittrex / Kraken / HitBTC)
Another day of price gaps between exchanges and another day selling altcoins on HitBTC will yield the best results. In the case of Dash, there are options to buy the altcoin cheap on either Bittrex or Kraken and selling it on HitBTC for profits of 1% up to 2.39%. These gaps are more than respectable under the current circumstances, especially because all markets are hemorrhaging value right now. That also means the price differences between trading platforms will grow larger over time.
Stellar Lumens (KuCoin / Binance / Sistemkoin)
A fair few different price gaps have opened up where XLM is concerned. Buying on Kraken or Binance and selling on HitBTC can yield a profit of 1.5%. Buying on KuCoin, Kraken, or Binance and selling on Bitexen will yield profits of up to 2%. Buying on Binance and selling on Sistemkoin offers gains of up to 0.9%. All options are well worth looking into for those who want to score some small profits during this next leg of bearish pressure.
Monero (Bittrex / Kraken / HitBTC)
As has been the case more often than not, arbitrage opportunities for both Monero and Dash – and often ZCash – are all identical. They revolve around buying on the same exchanges, selling on the same trading platform, and yielding nearly identical profits. Flipping XMR between Bittrex / Kraken and HitBTC can yield a 2.5% profit when timed correctly. A more than respectable option, given the current circumstances.
Tron (Binance / KuCoin / HitBTC)
Buying any currency that is listed on HitBTC from any platform that isn’t HitBTC will often yield some profits these days, it seems. In the case of Tron, buying TRX rather cheap on either Binance or KuCoin and selling it on HitBTC will yield profits of roughly 1.3%. It is a somewhat small spread first and foremost, but these small profits can all add up to pretty decent gains throughout the day.
EOS (Binance / KuCoin / HitBTC)
It shouldn’t come as much of a surprise to learn the arbitrage opportunity involving EOS is identical to Tron’s. These two coins often follow very similar patterns when it comes to exploiting price gaps, for some unknown reason. In today’s edition, the EOS price on Binance and KuCoin is 1.7% lower compared to HitBTC, which makes for a very easy and straightforward direct arbitrage opportunity.
Litecoin (Bitstamp / Binance / HitBTC)
For those who want to sell Litecoin on HitBTC for a profit, buying on Bitstamp, Binance, Kraken, or KuCoin are all viable options to score profits ranging from 1.2% to 2.5%. When buying on Bitstamp, there is also an option to sell on Cex, Bitfinex, or VeBitcoin for a gain of 1.8% on average. All of these options are rather profitable, although it may take some organizing to explore the best options at any given time.
Crypto Price Watch: Waves (WAVES) and Maker (MKR) Continue to Showcase Strong Market Support
At press time, around 85% of the world’s top-30 altcoins lay in the red zone, with premier assets such as Bitcoin Cash (BCH), Stellar (XLM), Bitcoin SV showcasing losses of around 10%, 5% and 6% respectively (over the course of the past 24 hours). However, in the midst of all this chaos, crypto coins such as Maker (MKR), Waves and Ethereum Classic (ETC) have continued to rally strong, with the aforementioned currencies gaining 10%, 3%, and 1.5% respectively.
What’s Causing MKR to Surge?
One of the primary factors that could be behind Maker’s amazing run is the fact that investment fund ‘a16z crypto’ recently bought a whopping 6% of the total MKR token supply for a sum of USD $15 million. As a result of this deal, a16z crypto now owns a tangible stake in the functional decentralized stablecoin (which bytheway makes use of formally verified smart contracts).
At this point, it is also worth mentioning that ‘a16z crypto’ is owned and operated by VC firm ‘Andreessen Horowitz’. The aforementioned deal was facilitated by former federal prosecutor Katie Haun (who is now a partner at a16z).
Additionally, over the course of the past few weeks, there have been other developments that too have spurred the overall adoption of MKR all across the globe. For starters, the dev team at Opera (the web browsing application) announced yesterday that they had created an all-new lightweight crypto wallet solution that allows users to ‘store and transact’ altcoins such as Dai and MKR using a pre-built extension module on the browser
Amazing to see @Opera for Android browser offer a built-in crypto wallet, allowing you to store and transact with #Dai & #MKR! No additional extensions needed, super cool. 😎 https://t.co/kZFvNOXPbo #Web3
— Maker (@MakerDAO) December 13, 2018
Lastly, MKR is also now live on the Wanchain main net. In regards to the matter, the Maker team released the following tweet:
“The Dai token will utilize Wanchain’s cross-chain functionality allowing for Bitcoin to be exchanged for Dai in a fully decentralized manner”
Can Waves Sustain its Amazing Run?
As many of our readers may already know, over the course of the past month or so, the price of Waves has increased quite significantly (with the currency even breaking into the top-30 a couple of weeks back). However, such pump and dumps are quite ordinary within this volatile market and thus it remains to be seen if Waves can continue its amazing performance in the coming few days and weeks.
We are excited to announce a long-awaited update of the #Waves Mobile app! Deposit, store and withdraw your #crypto securely, trade your assets on DEX, lease your $WAVES — everything is now available right on your smartphone! Read more about it here: https://t.co/5Qp7YKTa8r pic.twitter.com/y5hsCXj2GV
— Waves Platform (@wavesplatform) December 3, 2018
One of the most intriguing aspects of the Waves project is the that by next year, the dev team wants to deploy ‘atomic swaps’ into their native operational module. As a result of using this technology, the Waves ecosystem will not only be able to make asset trading much more streamlined but also make digital altcoin transfers cheaper and more secure.
Some of the other key developments in relation to Waves that are worth noting include:
- Decentralized 2-FA: Once implemented, this technology will help usher in a new era of decentralized security since it allows for the creation of a new layer of internet privacy.
- Smart assets: In regards to this technology, the Waves team claims that once this feature is live in its final iteration, it will allow devs to create complex smart assets on the Waves blockchain (thus allowing traders to indulge in even more unique financial exchanges).
— Waves Platform (@wavesplatform) December 13, 2018
Bitcoin Cash Price Heads South of $90 Once Again
Nothing ever comes easy in the world of cryptocurrency and digital assets. As all markets remain subdued for yet another day, it seems there will not be any real improvements moving forward. For Bitcoin Cash, things have looked bleak all year, and the pressure hasn’t relented just yet. In fact, the value now sits below $90 again following another big loss over the past 24 hours.
Bitcoin Cash Price Dip Is not Over
No one will be really surprised to learn there is yet another deficit for the Bitcoin Cash price as of right now. Not just because all other markets are down as well, but primarily because the recent network protocol upgrade has left a mark on this fork of Bitcoin. As such, there are a lot of investors and speculators who are bailing on anything that isn’t Bitcoin. That is only to be expected, especially when the market remains uber-bearish.
Over the past 24 hours, there has been another near 10% drop for Bitcoin Cash in USD value. Additionally, there is a 7.2% decline in Bitcoin value. It has been a while since BCH dipped below the 0.025 BTC mark, yet it seems that may happen pretty soon at this rate. For now, there is no indication the current market sentiment will turn around, neither for BCH nor any other asset or currency on the market.
The positive news is how there will be yet another Bitcoin Cash Meetup in Pasadena this weekend. Events like these usually help to spread the word about specific projects, as well as get existing investors a bit more excited about what the future may hold. This Meetup will apparently discuss the “exciting roadmap for BCH’. An interesting aspect, as BCH needs a plan for the future.
— Bitcoin Cash (BCH) Meetups (@BCHmeetups) December 14, 2018
On the other side of Twitter, there are those who are still pretty annoyed with the Bitcoin Cash “split” that happened about a month ago. Ever since this happened, the value of all cryptocurrencies has decreased significantly. One has to wonder if the Bitcoin SV creation is the only reason for this bear trend, which was in effect well ahead of this network upgrade.
#BSV and #BCH going to zero faster than you can say Craig Wright is a self-obsessed possibly clinically insane delusional childlike man who was a catalyst for this new bear market resulting in many people losing a lot of their hard earned cash!
— Decrypto (@AffairsDecrypto) December 14, 2018
A similar sentiment is echoed by Adhik Joshi, who isn’t too amused by all of these coins deriving value just because they have “Bitcoin” in their name. As such, he dislikes both Bitcoin Cash and Bitcoin SV, a sentiment that has been rather apparent for quite some time now. It will be interesting to see how things play out for all Bitcoin-named currencies over the coming weeks.
Now days Its easy to print fake crypto money
— 𒈟🌙 (@adhik_Joshi) December 14, 2018
Based on the current market conditions, it would appear there is no genuine improvement in sight whatsoever. All markets continue to struggle, despite some positive momentum on the hourly charts. Those gains are incredibly difficult to turn into a sustainable trend these days, which only adds more fuel to the proverbial fire. For now, a Bitcoin Cash price dip to $85 or potentially even lower is not out of the question.