Connect with us

Bitcoin

“We are at war against bitcoin,” says Turkey’s president

Published

on

We are at war with bitcoin,” Turkish President Recep Tayyip Erdogan declared on Saturday as he attended a meeting with students in Mersin, southern Turkey.

According to Bloomberg HT, the statement came from the president when asked by a participant at the event whether the Central Bank was interested in opening for cryptocurrencies. More than confirming the lack of interest, Erdogan said he is in a war against cryptocurrencies and is fighting to fight them.

The controversial statement came just days after the Turkish Central Bank launched a collaborative platform to study the issuance of a Central Bank Digital Currency (CBDC), the digital Turkish lira.

Advertisement

The bank said it has completed CBDC’s proof-of-concept stage and has moved on to the next stage of testing with the participation of several technology companies, such as Aselsan and Havelsan, in addition to the TÜBİTAK science and technology center.

The results of this testing phase are expected to be announced next year, when the BC will decide whether or not to issue the digital Turkish lira.

Interest in blockchain technology, however, does not mean the government will let its guard down on cryptocurrencies. “We are still on the road with our money, which is our fundamental identity in this matter”, retorted the president during the event.

Advertisement

Turkey vs Bitcoin

The Turkish president’s declaration of war on bitcoin is not a surprise since since the beginning of the year the country has been preventing the advance of the crypto market in the country. In April, the Turkish government banned bitcoin and other cryptocurrencies from being used to make payments in the country.

At the time, the Central Bank defended the measure saying that the ban was necessary because the cryptoactives “were not subject to any regulation and supervision mechanisms of a central authority”, citing possible “irreparable” damages and other risks with transactions involving digital assets.

Back in May, regulators published a decree that tightened the rules that exchanges should follow to operate in the country, forcing all companies in the sector to follow the same security guidelines as traditional banks.

Advertisement

At the same time, the interest of the Turkish population in bitcoin only grows in the country that is suffering the devaluation of its national currency. When President Erdogan fired the central bank president in March, sending the Turkish lira plummeting against the dollar, Google searches for the term ‘bitcoin’ soared across the country.

News Source

Advertisement

VanEck

VanEck Filed for Digital Assets Mining ETF

Published

on

Global investment manager VanEck, with more than $60 billion assets under management, has filed an application to establish an exchange-traded fund that will track the price and yield performance of the Global Digital Asset Mining index.

Fund’s investment principles

The Global Digital Asset Mining index is being used to track the performance of companies that are somehow engaged in digital assets mining activities, including Bitcoin or altcoin mining operations. Additionally, companies that provide various services like software development, as well as hardware suppliers, also fall into the category of mining operations providers.

Advertisement

The fund will invest at least 80% of its total assets in securities in the DAMC but, at the same time, the company is not allowed to invest in digital assets by using derivatives products like options or futures. Hence, the fund is not going to track the price movement of any cryptocurrency.

The VanEck ETF will be able to provide exposure to companies that are in fact operating with digital assets or holding them on their balance sheet and are also being presented in the Global Digital Assets Mining index.

Risks for investors

The application also contains a section related to the risks behind the digital assets mining industry. According to the filing, the main risks for investors are technological obsolescence, supply chain issues and certain issues with obtaining new hardware.

Advertisement

Additionally, the fund agrees that most digital assets mining companies are exposed to the issue of relying on third-party companies that are located and functioning overseas.

Bitcoin Daily Chart
Source: TradingView

In addition to risks tied to hardware wearing, digital assets miners generate revenue from selling their assets on various cryptocurrency exchanges, and the price of their assets is a subject of high volatility that could lead to the value loss of their holdings.

While most cryptocurrency miners remain in high profit from their operations, rapid change of assets like Bitcoin may potentially lead to additional losses of those companies and, therefore, losses for investors that receive direct exposure to the aforementioned index.

News Source

Advertisement
Continue Reading

Bitcoin

Bitcoin Senator Rallies For Support Against Powell’s Renomination As Federal Reserve Chair, Here’s Why

Published

on


Popular Bitcoin Senator, Senator Cynthia Lummis is reportedly soliciting for the support of her fellow Republicans in her stance against Jay Powell after the latter got renominated to chair the Federal Reserve.

Bitcoin Senator Wary of Crypto-unfriendly Nominees

As reported by Decrypt who first broke the news, a source in Lummis’ office says her reasons border on her belief that there is an unlawful treatment of crypto-based institutions in her home state, Wyoming.

Meanwhile, the Bitcoin senator is not only against the nomination of Powell. The source still claims that Senator Lummis is also asking her Republican colleagues to help block Leal Brainard’s nomination as well. Brainard is another nominee of President Biden’s for the Fed positions.

Advertisement

Lummis’ skepticism might be as a result of the Special Purpose Depository Institutions or SPDIs as they are otherwise called. They are a new type of crypto-based bank that Wyoming lawmakers granted a special operational license to, just last year.

Two crypto-based companies that received the license in 2020 include Kraken exchange and Avanti — the stablecoin issuer. However, the Federal Reserve’s decision to not approve their applications for central bank-issued accounts has placed a hold on their banking ambitions.

Speaking about the Federal Reserve’s delay in a Wall Street Journal feature article by Lummis on Wednesday, she says it is an intentional and unlawful obstruction. She added that the Fed’s reasons are ambiguous at best. According to the Bitcoin Senator, Lummis claimed that the Wyoming entities have met all requirements for being a bank under the Federal Reserve Act.

Advertisement

Lummis insists that Powell and Brainard are only avoiding their legal obligations in their continued treatment of SPDIs and like many other U.S lawmakers, she wants to know why.

Could Lummis’ Pressure Affect Powell’s Confirmation?

As Lummis continues to apply even more pressure on her colleagues, the possible extent to which this pressure can truly go in affecting the confirmation process of both Powell and Brainard, remains to be seen.

But with the chair of the Senate Banking Committee, Sherrod Brown, reportedly holding a vote on the pair sometime this month, both of them could be confirmed.

Advertisement

Also, there’s a possibility of a potential tight vote now that some progressive Democrats — most notably Elizabeth Warren — are saying they will not be voting for Powell.

News Source

Advertisement
Continue Reading

Bitcoin

PlanB’s Floor Model First Miss: Bitcoin Price Closed Way Below $98K In November

Published

on

PlanB’s floor model was wrong about BTC’s November closing price. The stock-to-flow model, though, is still on track.

Bitcoin’s closing price for November below $60,000 meant that PlanB’s floor model, which was particularly accurate until now, was finally broken.

At the same time, though, the analyst confirmed that the more popular stock-to-flow model was still valid as BTC is on track towards $100,000.

Advertisement

PlanB’s Floor Model Fails

PlanB is among the most popular analysts in the cryptocurrency space, predominantly known for the Bitcoin stock-to-flow model, which he published in early 2019. However, he also posted another model, which he referred to as the “worst-case scenario,” in July this year.

Also known as the floor model, it’s based on technical aspects, such as the 200-day moving average, and saw BTC closing August at $47,000, September at $43,000, and October at $63,000.

The first two months were spot on. BTC closed in October at $61,000, which was still very near to the model’s predicted price, and PlanB said it was “good enough” for him.

Advertisement

However, November’s closing actual closing price of way below $60,000 was quite different from what the model envisioned – $98,000. As such, the analyst admitted that this was the model’s first miss after nailing the previous few months.

S2F on Track

As mentioned above, the floor model works separately from the stock-to-flow model, which sees the stock as the size of existing reserves (or stockpiles) and the flow as the annual supply of new bitcoins to the market.

Advertisement

It’s actually even more bullish as the original version sees bitcoin tapping $100,000 by the end of the year. The upgraded stock-to-flow cross-asset model, which introduced different phases of bitcoin’s development, predicted a price tag of $288,000 until 2024.

Although bitcoin still struggles below $60,000 at the time of this writing, PlanB believes that the original S2F hasn’t been broken as the asset is on its way towards $100,000. If BTC is indeed to go into a six-digit price territory, it would have to increase its USD value by more than 66% in the next 30 days.

News Source

Advertisement
Continue Reading