The largest cryptocurrency exchange by market volume has acquired popular data site CoinMarketCap (CMC) for an undisclosed price, the companies announced Thursday. Binance CEO Changpeng “CZ” Zhao told CoinDesk the deal closed March 31, although a verbal agreement had been reached “a few months ago.” Read the full story on CoinDesk.

The bitcoin price slipped below $7K yesterday after failing to surmount the $7,500 level for the fifth time since the crash on March 12 and 13. The unprecedented correction in the crypto markets at that time saw bitcoin plummet to $3,700 in hours. Read the full story on ZyCrypto.

The Illinois Federal Court has received a complaint on Brock H. Flagstad. The self-proclaimed ‘top-level businessman and the crypto trader’ was stealing from the investors. According to the court filings, he took at least hundreds of thousands of cash from $2 million cash pile, to fund his luxury life. Read the full story on ZyCrypto.

Grayscale Investments, a crypto asset fund overseen by Barry Silbert, has announced that it will launch an advertising campaign in a few weeks that takes aim squarely a gold investors. The advert compares the futuristic investment vehicle of Bitcoin and other digital currencies with the historic store of value gold.

Although the advertisement is for Grayscale Investments and not specifically promoting Bitcoin, Barry Silbert has stated that he wants the #DropGold hashtag to become the crypto community’s go to rallying cry. He claims that the main aim of the TV campaign is to start a narrative about the similarities between gold and Bitcoin, and highlight the overall superiority of the latter.

Gold vs Bitcoin: Are the Gloves Ready to Come Off?

Bitcoin has been compared to gold many times before. In the advertising campaign announced earlier today, in 30 seconds, Grayscale Investments attempts to portray the historic store of value as a dated, inferior, cumbersome relic versus the asset of the future, Bitcoin.

In the fast-paced advert broadcast earlier today on Grayscale’s website, we see young investors frantically chasing after something through a metropolitan centre. These individuals are free to move at breakneck speeds, whilst ancient bankers lug wheelbarrows full of gold around. Evidently, such imagery is supposed to indicate the convenience of Bitcoin over gold.

https://twitter.com/barrysilbert/status/1123575826036006917

Silbert himself gave some commentary on the advert to a panel hosted by Yahoo! Finance earlier today. He first describes gold as an “easy target to go after”, before stating:

“Bitcoin is nothing more than our generation’s version of gold. It’ll be a huge success.”

He did go on to admit that the technology could be used as a payment rail and for other applications, before outlining the goals of the advert:

“The objective of the ad campaign is to start an honest conversation about gold and why it may not be a great investment long-term and then talk about why Bitcoin is going to outperform gold as our generation of investors inherit tens of trillions of dollars over the next 25 years… Will it all go to Bitcoin? No. But Bitcoin will be a beneficiary.”

The Case for BTC as “Digital Gold”

Natyrally, the format of a 30 second TV advert is poorly suited to outline just why so many analysts believe that Bitcoin is a better version of the shiny precious metal coveted for centuries. That, as demonstrated by Saifedean Ammous in his book The Bitcoin Standard, would take many hundreds of pages to begin to get to the heart of.

However, here are  a few of the key points for anyone wondering why Bitcoin is so hotly championed by those in the know to eventually replace gold.

Firstly, the absolute quantity of Bitcoin is already established and this total will be released at a known rate until there are no more of the 21 million original coins left to issue. Gold was typically used as a store of value because it was notoriously difficult to recreate (i.e. to inflate the supply artificially), and it was not in abundance. This made it superior to other materials for monetary use since people couldn’t devalue the gold held by others by creating more for themselves.

In the twenty-first century, gold looks increasingly like a less-than-perfect form of sound money. If there is a scientific breakthrough in mining technology, there are literally thousands of tones of the stuff that could be hauled out from deep within the earth and completely crash the market. Bitcoin, by contrast, has its supply enforced by the largest network of computers on the planet. To cheat this system has proved to be impossible thus far. With ever-rising hash rates securing the network too, this will only get more difficult in the future.

Likewise, Bitcoin trumps gold when it comes to ease of transportation. Compare how much it would cost to send $1 million worth of gold to the other side of the world with that of a similarly sized Bitcoin transaction. You are talking tens of thousands of dollars difference. The same can be said about securing Bitcoin. There is no need for vaults, security personnel, and custodian solutions with Bitcoin. You are the master of your own monetary sovereignty with crypto.

This point extends when we consider that anyone prepared to threaten enough physical violence can take an individuals’ gold. It is there for all to see and it can be physically lifted out of a vault if there is no one there to protest. With Bitcoin, even if the holder of a private key dies, the Bitcoin cannot be stolen by anyone.

Gold doesn’t fare any better when it comes to divisibility either. Expensive machinery is needed to melt down the metal and recast it into the smaller units needed to make everyday purchases. Bitcoin, of course, is hugely divisible. If fees weren’t an issue, you can even make payments of less than a cent using the payment method. Imagine trying to divide a gold bar into 1c worth. Impossible.

In fact, if you consider every quality that has made gold a historic store of value, Bitcoin beats it across the board. There is only one thing that continues to make gold the favourite investment vehicle of the two and that is its historical precedence as a store of value. Being as it has been a fixture of human history for literally thousands of years, attitudes towards the asset are well and truly entrenched.

Although we have no historical data confirming it, we can only presume that the transition to each new form of monetary technology was accompanied by many naysayers who originally scoffed at the latest innovation. When gold replaced seashells and other primitive currencies, people presumably dismissed it and would continue to prefer to accept the older currency for many, potentially thousands even, of years. Likewise when paper money became the norm in favour of actual gold. People outright rejected it. After all, how could this piece of paper be worth anywhere near the same as a lump of shiny yellow metal?

Each of these new monetary technologies offered something new that the previous didn’t. It might have been portability or a more sound monetary policy but eventually people began to see the benefits of using the new technology and the old ways were phased out. This process will likely occur once again with Bitcoin. However, in the crypto asset’s corner is the most powerful data sharing platform ever known to humanity – the internet. That should speed things along nicely.

Source:  NewsBTC

Bitcoin has had enough eventful week despite BTC price cooling off. Let’s take a look at the most important stories that shaped the past week with the Sunday Digest.

BITCOIN PRICE PULLS BACK TO $5K

For now, Bitcoin’s mini-bull charge seems to be on hiatus, although support has been found at $5000, leading to some stability. The latest research seems to suggest that bitcoin has indeed bottomed and that the next peak is set to be significantly higher.


INSTITUTIONAL INVESTOR INTEREST IN BITCOIN RISING

Grayscale’s GBTC investment trust was trading at a 47% premium over bitcoin’s spot price.

Some suggest that this is a sign of increasing institutional demand. Institutional interest certainly seems to have been one of the drivers of the previous week’s price rally, with trading volume growing for four consecutive months.

Interestingly, Bitcoinist also reported that institutional investors increased their Bitcoin futures longs on the CME by 88 percent on Bitcoin as of April 2nd compared to the previous week. The date coincides with the latest bitcoin price $5128.62 -0.20% rally when it soared from around $4,100 to more than $5,300 in minutes. At the same time, the number of shorts saw a 63 percent decrease.

BITCOIN IN THE MAINSTREAM

Bitcoin’s relentless infiltration of the mainstream continued, as the start of the week saw the Lightning Torch passed to former Miss Finland, and Miss Universe contestant, Rosa-Maria Ryyti.


Julian Assange’s arrest this week, caused rejoicing and condemnation in equal measures. It did, however, also spur almost $30k in bitcoin donations from those eager to support his legal fund.

Twitter and Square CEO, Jack Dorsey, revealed that his combined earnings from the two companies in 2018 was just $4.15. But he does also max out his $10,000 BTC purchasing limit thru Square on a weekly basis, so can’t be doing too badly.

Elon Musk and SpaceX were in the news again this week, although both are regularly out-searched on Google by the term ‘Bitcoin.’


Bitcoin’s most unwitting champions still appears to be Donald Trump and the Federal Reserve. His ill-considered policies, both home and abroad, are creating mistrust of the fed and financial uncertainty in bounds.

Case in point, his proposed clampdown on remittance payments by Mexican immigrants will surely push more towards bitcoin as an alternative.

CRAIG AND CALVIN VS. THE WORLD

The Bitcoin community came together to show that it will not stand for Craig ‘Faketoshi’ Wright and Calvin Ayres litigious dick-swinging.

In order to sue Lighting Torch creator, Hodlonaut, they offered a bounty to anyone who would ‘dox’ him. This led firstly to the CEO of Binance threatening to delist Bitcoin SV, and then Anthony Pompliano calling for a simultaneous mass delisting by exchanges on May 1st.

Meanwhile, the #weareallhodlonaut legal fund crowdfunding campaign hit its target in less than a day with nearly $30K raised.

Have a great Sunday and #weareallhodlonaut!

Source: bitcoinist

Trump and other world leaders have been named and shamed in the recent Fitch ratings report. Slowing global economic growth coupled with governments’ relentless interventions are eroding central banks’ independence around the world.

1. TRUMP MAKES THE FED LOOK STUPIDLY UN-INDEPENDENT

Ever since his presidency began, Trump has been on a mission to gain greater control of the Central Bank. He’s already placed four out of seven board members and nominated a further two.


However, according to the Fitch report, this government intervention sets a dangerous precedent–in the U.S. and around the world.

Global Head of Sovereign Ratings at Fitch James McCormack adds that Central Banks are:

"being increasingly viewed by governments as ripe for a broadening of their remit.

He adds that now is the time for investors to think deeply about what a global recession and greater pressure from governments on central banks to support economic growth could mean for their portfolios.

"Fitch believes investors would be wise to consider the potential implications of mounting political pressures for greater contributions from monetary policy to support economic growth, possibly by unconventional means.

It’s becoming obvious that tightening of monetary policy amid slowing growth is failing to halt the impending economic downturn.

Most Central Banks around the world are beginning to reduce or retract on interest rate hikes against heavy criticism from world leaders:

https://twitter.com/piersmorgan/status/1067836706886479872

https://twitter.com/realDonaldTrump/status/1077231267559755776

MMT (Modern Monetary Theory) is also gaining traction. MMT proponents believe that Central Banks should create their own base money rather than regulating the economy through interest rates. However, few times over the course of history has printing money been a good idea.

2. HE’S APPOINTING PRO-BITCOIN STAFF IN HIGH PLACES

Not only does Trump continue to urge the Fed to keep easing, but he’s also appointing pro-Bitcoiners in very high places. Mick Mulvaney’s recent appointment as Budget Director could be extremely bullish for Bitcoin. His knowledge of the digital currency goes way back and he was instrumental in educating people inside Washington about Bitcoin and blockchain technology.

Mulvaney even co-created a bi-partisan initiative called Blockchain Caucus to act as a discussion center for ways to incorporate blockchain technology in the national government.

While his spending policy and ideas for Social Security may be at odds with Trump, it’s likely that any regulation surrounding Bitcoin will be positive while Mulvaney is in office. If he lasts longer than most of the president’s appointees, that is.

3. ECONOMIC UNCERTAINTY IS THE PERFECT STORM FOR BITCOIN

Trump and other world leaders continue to bash their Central Banks while leaning on them for further funding. This uncontrollable spending and economic turmoil is inadvertently creating the perfect storm for Bitcoin.

After all, political discord, economic instability, and the demising power of central banks are all conditions that favor the adoption of Bitcoin. Its immutable ledger and particularly the inability of anyone to change the rules makes it the most politically-neutral form of money that ever existed.

This makes Bitcoin unlike any other ‘asset’ that existed before – which explains why it thrives in times of political instability and economic turmoil.

As Max Keiser commented in a previous interview with Bitcoinist:

"Bitcoin adoption has always been driven by bank failures, bailouts, bail-ins, and political unrest.

So, carry on the interventions and bring on the global recession, Bitcoin will rise from the ashes as the way forward once more.

Source: bitcoinist

The return of a previously well-known phenomenon to Bitcoin this week continues to excite traders as Bitcoin price pushes above $5250.

RETURN OF THE ‘KIMCHI PREMIUM’

Spotted online by social media traders, the so-called ‘Kimchi Premium’ – a surcharge on the Bitcoin price specifically impacting South Korean investors – is making a comeback on local cryptocurrency exchanges.


BTC/USD $5121.47 -0.32% shot up over $1300 last week to hit a local high of $5330. After a slight reversal, momentum reappeared to take the pair above $5000 and hold it in an area around $5200 ever since.

This, while delighting many who are eager to call a definitive ‘bottom’ in bitcoin price, has led to uneven spreads across exchanges.

As Bitcoinist reported, it was China that led the trend this month, with the country’s traders paying extra for acquiring stablecoin Tether (USDT), their main entry point into Bitcoin and other cryptocurrencies in a highly restricted market.

South Korea’s Kimchi Premium, which presents as a markup on Bitcoin price asks directly, is now following suit, leading some to draw comparisons to previous bullish Bitcoin activity.

The pattern first emerged in late 2017 as BTC/USD aimed for its all-time high over $20,000. Thereafter, the Premium came and went, most recently last October, before Bitcoin’s descent to recent lows of $3100.

https://twitter.com/CryptoHamsterIO/status/1115799812761198593

In its latest incarnation, according to data from South Korean exchange Korbit, the premium is leading Koreans to pay 6.05 million won per bitcoin, against a USD price of $5230. This represents a markup of around 1.5 percent.

WOO ANALYSIS SUGGESTS BOTTOM IS IN

Meanwhile, further evidence bitcoin price may have bottomed out in the past months has come from independent analyst Willy Woo. In an update to his Woobull blog, Woo extended his Bitcoin price measurements in an attempt to place its recent lows in context.

His latest metric, Cumulative Value Days Destroyed (CVDD), focuses on transactions, and is remarkably accurate when applied to previous bear market lows.


“When a HODLer sells to another HODLer the transaction contains both value (USD) and a length of prior HODL time,” he explained.

"CVDD is the cumulative sum of this value and time destruction for every on-chain transaction (adjusted by age of market which brings the units back into USD)."

If Woo is correct, the latest bottom should already be behind Bitcoin, with the surge above $5000 the start of a fresh longer-term uptrend.

As Bitcoinist noted, however, not everyone is convinced, with veteran trader Tone Vays this week leading calls to treat the latest Bitcoin price performance with skepticism.

Source: bitcoinist