Connect with us

Bitcoin

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

Priya

Published

on

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.”





Subscribe to AMBCrypto’s Newsletter




Follow us on Telegram | Twitter | Facebook



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

Bitcoin surges by ~7% in under an hour; Has the rally finished correcting?

Avatar

Published

on

Bitcoin surges by ~7% in under an hour; Has the rally finished correcting?
Source: Unsplash

Bitcoin’s price rally in a parabolic curve led most of the community to believe that this was the bull rally, however, the correction of this surge was due, which began on May 16.

The correction wave, as expected by many prominent traders was approximately 30-40%, which would put the price of Bitcoin $5,000 to $5,800. However, the correction seems to have finished as the price of Bitcoin surged by more than 7% in less than an hour.

Source: TradingView

The market cap of Bitcoin, at press time, was $136 billion and most the volume for Bitcoin was coming from BitMEX exchange via trading BTC/USD derivatives. BitMEX contributed a total of $3.38 billion in terms of trading volume, which is 12% of the total trading volume.



A Twitter user @DoveyWan suggested a head and shoulder pattern for Bitcoin:

CNBC suggested something similar, however, the pattern doesn’t seem to be holding. A Twitter user @thecryptomonk, tweeted:





Subscribe to AMBCrypto’s Newsletter


Continue Reading

Trending