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Bitcoin [BTC]: #DropGold campaign gets called out for being ‘Bitcoin cartel’

Akash Anand

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Bitcoin [BTC]: #DropGold campaign gets called out for being 'Bitcoin cartel'
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The Bitcoin [BTC] ecosystem has seen a resurgence of sorts recently, with multiple price fluctuations in the cryptocurrency field being spearheaded by the world’s largest cryptocurrency. Several movements and campaigns were launched to spread the message that Bitcoin is a thing of the future, along with its benefits over the standard ‘store of value,’ Gold. The Drop Gold initiative launched by the Barry Silbert-led Grayscale Ventures, was one such popular example.

In a recent Twitter thread however, the campaign was called out by Dan Popescu, a prominent gold and forex analyst, who claimed that the precious metal and its value were not dying, but rather was on an uptrend. His tweet read,

“Contrary to fake news spread by the bitcoin cartel with their “dump gold” campaign, facts are that #gold is NOT being demonetized. On the contrary, since 2008 crisis gold has been accumulated by central banks, sovereign funds in large quantity at an accelerated rate since 2018.”

The 2008 recession is claimed to be one of the trigger points for the creation of Bitcoin and is used as a reminder of the fragile nature of fiat economy. One of Drop Gold’s statements has been about how Bitcoin is a faster and cheaper method for store of value, rather than the cumbersome gold. Silbert had previously stated that all Bitcoin needs to trump gold is time, as Bitcoin has been around for just a decade while gold has existed for much longer. The organization’s statement had said,

“With an estimated $68 trillion in generational wealth changing hands over the next 25 years (including $48 trillion from Boomers), we may see more investment dollars make their way into uncorrelated assets like Bitcoin.”

Popescu added that although gold is not outrightly used for transactions and payment settlements, it has been fundamental to the world economy. The analyst tweeted,

“During, since 2008 financial crisis BIS transactions show that gold is being used in international settlements after so many decades of being sidelined in the monetary system. Gold remained even after 1971 the backbone of the international monetary system even if in the shadow.”

Popescu’s comments did not go unnoticed by Barry Silbert, who was amused about the notion of the existence of a ‘Bitcoin cartel.’





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ErisX goes all hands on deck to launch a Bitcoin Futures market

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ErisX goes all-hands on deck to launch a Bitcoin Futures market
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ErisX’s CSO, Matt Trudeau, detailed the company’s four important plans for the future, which includes launching a spot market, to secure a Bit License, DCO, and to launch a futures market.

ErisX currently has a DCM contract, which is a Derivative Contract Market that allows ErisX to run a CFTC-regulated futures exchange. However, ErisX aims to get a DCO [Derivatives Organization], which will effectively allow it to run a CFTC-regulated clearinghouse. A clearinghouse would mean that ErisX can take control of the custody of the assets and clear and settled trades.

The CSO explained the benefit of this, stating,

“There is some efficiency for firms like producers [like mining companies]; if they need to hedge their inventory or need liquidity on a spot market, they could do that conveniently on a single platform. “

Trudeau added that from the “post-trade standpoint” and “the collateral management standpoint,” ErisX would have cash, crypto, and the futures, all stored in their clearinghouse. This would boost efficiency since it would be available for all customers under a single platform. The CSO added,

“… so there is some efficiency in terms of managing collateral, if you don’t have assets on  multiple platforms, it can all be in our clearinghouse.”

Apart from the aforementioned plans, Trudeau added that the crypto-industry needs to mature more and that ErisX plans to make a significant contribution to that. He added,

“The market is professionalizing and we think that in terms of what institutions are expecting from a trading/custody experience, we will bring some of the solutions to the market and that’s really the foundational pieces that they are looking in order to build their businesses on top of us.”

Apart from ErisX, LedgerX has also received a go-sign from the CFTC to settle Bitcoin Futures in Bitcoins. Other exchanges include Intercontinental Exchange’s Bakkt and Seed CX.





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