Michael Green, chief strategist and partner at investment advisory firm Logica Capital, sounded the alarm about China’s Bitcoin (BTC) mining dominance during a debate with crypto proponent Anthony Pompliano.
The discussion between the Bitcoin skeptic and the Bitcoin bull has just been published by digital asset media outlet Real Vision.
Green emphasized the dominant share of hash rate located within China’s borders, describing the network as “incredibly vulnerable” from the perspective of the United States.
“The vast majority of the mining activity is occurring in regions like China, Russia and Iran, and if we incorporate the participation of mining pools, they control in excess of 90% of the hash rate. This is not a decentralized system,” said Green.
“The current estimate of how much it would cost to shut down the Bitcoin network […] if, for example, China were to decide simply to start mining empty blocks […] is around $7 billion a year. For a nation-state, that’s nothing.”
“It’s completely absurd that the U.S. government would put itself into a situation in which the control of the monetary system was outsourced in the same manner that we’ve chosen to outsource our iPhone production,” he added.
But Pomp described Green’s assertion as flawed, asserting that Bitcoin is “the strongest computing network in the world […] by every measure.“ He noted recent “diversification” in the Chinese centralization of hash rate, emphasizing significant increases in the hash power commanded by U.S.-based entities.
Pompliano also challenged Green’s inference that the geographical distribution of Bitcoin’s hash rate is representative of the capacity for a nation-state to exert control over the network, stating, “Just because there is any sort of capital flow elsewhere does not mean that those governments control it.”
Green also characterized Bitcoin as a conduit for criminality and a tool used by enemies of the United States to bypass and undermine the dollar. Ultimately, Green predicted it is only a matter of time until the U.S. government moves to ban BTC.
“In terms of a ban of ownership, I’m not advocating for that,” he said. “I’m actually suggesting that I think [a ban] is the eventual outcome. Whether that is good or bad will ultimately be decided by the future.”
Rebutting, Pomp argued that should Green’s worldview prevail, the United States will make the mistake of excluding itself from the global financial revolution that blockchain and crypto will drive:
“Mike, I think, has this belief that other countries are benefiting from an open, digital, decentralized protocol — he’s not wrong. But the reaction or the end result of that should not be we, therefore, are going to opt out because that will not stop these other countries from using their open, digital, decentralized protocol.”
“We should embrace [Bitcoin] and ensure that the United States stays the leader on a global scale,” he added.
Bitcoin Bull Tone Vays Says Pullback Coming – Here’s His New Crypto Outlook
Veteran crypto trader Tone Vays says despite Bitcoin rising very quickly with its daily and weekly charts, a pullback is imminent.
In a recent live stream during the rumored approval announcement of a Bitcoin (BTC) exchange-traded fund (ETF), Vays expects BTC to reach a high of around $62,000 by the 19th of October.ADVERTISEMENT
“We are right on track for what I anticipated in the daily outlook where we top out at approximately $62,000 a the end of this week or early next week. October 19th is where I was looking for that top. So we got about three or four days to go. Especially if we keep going up and up and up.”
In terms of taking profit before any potential pullback – Vays says it depends on whether Bitcoin hits certain targets, noting how it has gone up almost 50% in a matter of weeks.
“It probably is a decent time to take your profit for a pullback because it would have gone up way too far way too quickly. Three weeks ago the price was half of what it is today… we are rising fairly quickly and there will be a pullback… but right now the weekly chart is fully bullish and you still have room.”
Vays says with such a fast rise, there is a higher probability for a fall – predicting a pullback to around $53,000 or $54,000, remaining hopeful with his end-of-year target.
“Bitcoin is looking great I’m still thinking mid-60s for a double top with April, a pullback to maybe mid-50s, and then I still got a shot at being right about that $100,000 at the end of the year. I’m still optimistic.”
Bitcoin Forecast and Analysis October 18 — 22, 2021
Bitcoin BTC/USD ends the trading week at the level of 61394, continues to move in the framework of the growth and the bullish channel. Moving averages indicate a bullish trend. Prices went up from the area between the signal lines, which indicates pressure from the buyers of the asset and the potential continued growth of the asset’s quotes. At the moment, we should expect an attempt to develop a correction and a test of the support area near the level of 50055. Where can we again expect a rebound and a continuation of the rise in the Bitcoin rate with a potential target above the level of 75055.
Bitcoin Forecast and Analysis October 18 — 22, 2021
An additional signal in favor of the growth of BTC/USD quotes in the current trading week on October 18 — 22, 2021 will be a rebound from the upper border of the descending channel. The second signal will be a rebound from the support line on the relative strength index (RSI). Cancellation of the Bitcoin growth option will be a fall and a breakdown of the 42505 area. This will indicate a breakdown of the support area and a continued fall in BTC/USD quotes with a potential target below the level of 30505. Confirmation of the development of the bullish movement will be the breakdown of the resistance area and closing of quotations above the level of 65055.
Bitcoin Forecast and Analysis October 18 — 22, 2021 supposes an attempt at a support area near the level of 50055. Then, the cryptocurrency will continue to rise to the area above the level of 75055. An additional signal in favor of the growth of the Bitcoin rate in the current trading week will be a test of the trend line on the relative strength index (RSI). Cancellation of the option to raise Bitcoin cryptocurrency quotes will be a fall and a breakdown of the 42505 area. In this case, we should expect a continued decline with a target at 30505.
El Salvador’s Vice President Expects Other Countries to Adopt Bitcoin
El Salvador hopes that its Bitcoin law will become a blueprint for other nations
El Salvador’s Vice President Félix Ulloa recently predicted that other countries are going to follow the tropical nation’s Bitcoin adoption model during a meeting with Pascal Drouhaud, vice president of the LATFRAN association, according to a report by local media outlet Diario La Huella.
Ulloa expects poverty-stricken El Salvador to become an economic and financial hub because of its audacious bet on Bitcoin.
In addition, he claims that Bitcoin will benefit an estimated 1.17 million Salvadoran immigrants who reside in the U.S.
According to Ulloa, the number of people who have a Bitcoin wallet is now twice as big as the number of bank account owners in El Salvador.
This, as the politician believes, highlights the level of confidence that Salvadorans have in Bitcoin.
The adoption of Bitcoin in El Salvador was accompanied by a slew of protests, but the opposition stopped short of stopping the law from officially coming into effect in early September.
Much of the criticism that the Bitcoin bill has received was directed at Article 7, which forces businesses to accept the largest cryptocurrency.
As reported by U.Today, Ethereum co-founder Vitalik Buterin described El Salvador’s Bitcoin experiment as “reckless.”
Bukele vs. Hanke
Following Bitcoin’s rally to $60,000, El Salvador President Nayib Bukele took a jab at anti-Bitcoin economist Steve Hanke.
Hanke refused to back down from its earlier comments, insisting that the tropical nation will face “financial ruin.”
El Salvador’s bonds tumbled last month out of fear that Bitcoin adoption could jeopardize the countries talks with the International Monetary Fund.
The IMF has been highly skeptical of the country’s decision to adopt the decentralized and volatile cryptocurrency as its official currency