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Bitcoin exchanges and custodians are too big to bail; can fail like pre-1914 gold banks, says Tuur Demeester




Bitcoin exchanges and custodians are too big to bail, can fail like pre 1914 gold banks, says Tuur Demeester
Source: Unsplash

Tuur Demeester, Founder of Adamant Capital, recently remarked that, “Bitcoin exchanges and custodians are too big to bail,” on his official Twitter handle. Further, Tuur Demeester also stated that there was a possibility that platforms may fail the same way as “pre-1914 gold banks could.”
He further explained that this meant,

“[…] – No lender of last resort – Private insurance only option – Ultimately good for HODLers: no socialization of risk – But: due diligence matters, buyer beware.”

The Founder stated that the “lack of centralization” in Bitcoin would be “further improved” with the use of multi-signature solutions, smart custody, and collaborative custody. He also added that this was the reason Bitcoin was “so desirable as a hedging instrument.”
He said,

“This is why bitcoin is so desirable as a hedging instrument: it can insure traditional portfolios against trust based, systemic risks. Here’s a possible scenario:”

This was followed by Demeester explaining the reason why the Federal Bank thinks of Bitcoin as “undesirable”. The first reason was systemic risk, where the “Bitcoin Fed” could get compromised to a security breach or even “face a bank run.” The second reason was bureaucratization, a result of private profits and socialized risk. The third reason was that the cryptocurrency’s banknotes would “only be fractionally backed,” which would be at the “expense of savers.”

He went on to state,

“Most of the people currently still claiming that “Bitcoin can’t work” operate on the premise that centralization is important and desirable. Once Bitcoin is mature, these people will inevitably clamor for a central bank of bitcoin. Imo this will become a huge public debate.”

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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.


Bitcoin SV drops by a massive 24% in an hour after Bitcoin whitepaper patent backlash




Bitcoin SV drops by a massive 24% in an hour after Bitcoin whitepaper patent backlash
Source: Unsplash

Bitcoin SV’s sudden surge from $65 to $195 was caused mainly due to FOMO after the news about Craig Wright’s patent on Bitcoin Whitepaper broke out. The coin did breach the top-10 list when it pumped; however, it settled down to its original position of 12. At press time, it overtook Tron, and is the 11th largest cryptocurrency according to CoinMarketCap.

The crypto, at press time, was priced at $112 and had a market cap of $1.98 billion, just below Cardano. BSV, in a 24-hour timeframe, was still up by a massive 77%; however, the price dipped by 24% in an hour, from $148 to $112.

Source: TradingView

The Bitcoin Whitepaper patent caused most of the prominent people in the community to lash out against Craig Wright. Monero’s Fluffypony, tweeted:

Peter McCormack, the host of What Bitcoin Did, podcast tweeted:

Although the copyright for the patent doesn’t fully mean that Wright is Satoshi, crypto Twitter started doing what it does best- troll. Alistair Milne tweeted:

BREAKING: world’s biggest dating app Tinder believes Craig Wright is Satoshi Nakamoto, having allowed him to register the username/handle “iamsatoshi” Alternative aliases he has also been successfully granted include: “iamricherthanyourcountry”
and “billionairemode1970”

Jake Chervinsky, a lawyer, tweeted:

Ironically, Bitcoin SV got delisted after its pump followed by a dump. Float SV tweeted:

“Based on a lack of trading volume, Float SV will be delisting BTC/USDT, BTC/USDC, and BTC/TUSD on Friday at 5pm CST. Details to come. Deposits and withdraws for associated assets will remain supported.”

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