Bitcoin has had a pretty active 2019, with major price fluctuations pulling the price of the world’s largest cryptocurrency up, while also pulling up the prices of other cryptocurrencies. Post the rise in value of the world’s largest cryptocurrency, many transactions and transfers of significant amounts have taken place. A recent transfer of Bitcoin worth $3.25 billion had put a spotlight on the BTC ecosystem once again, with users interested in the industry taking a deeper look at the transfer market.
Recently, Whale Alert, a cryptocurrency transfer alert website, revealed that 18,899 BTC worth $153.44 million had taken place from the Brian Armstrong-led Coinbase to an unknown wallet. The transfer held a hash of cbc24d99af76c969b037ebd3824a0e9b6794e423e261a and the Coinbase address was 3Qy5mTpumWh24f5UdwGPJEhStoD3A25fK9. The unknown wallet possessed 4 different addresses, with the transfer settling at 0.302 BTC, 1999.89 BTC, 9899.89 BTC, and 6,999.85 BTC. The transfer had a time stamp of 22:51 UTC on June 12.
The transfer was spoken about by C3|Nik, a popular cryptocurrency proponent, who tweeted,
“18,900 Bitcoin were transferred to Coinbase a few hours ago.
An easy way to freak out some people who interpret these kinds of transactions as an impending “dump”.
A few hours later, a total of 18,900 are transferred out of Coinbase again in three separate transactions. Fake.”
The transfer was speculated by many members of the community to be a way to get the market moving again. However, looking at the charts, it is clear that BTC’s price moved consistent to what it was doing over the past couple of days. C3|Nik added,
“The market did not react much. It seems like a lot of the people who interpret these transfers as legitimate learned their lesson …. or got liquidated.”
One Twitter user viewed this as an opportunity to air his concerns, commenting,
“Why does Coinbase let 18,900 BTC move in and out so easily, but when I want to move a measly $500 worth, I have to wait a week?”
The crypto-proponent’s opinion was shared by a majority of the Bitcoin community too, with many claiming that the digital asset industry needs to be more mature for sustainable growth and development.
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Bitcoin is an enterprise; its users are comparable to traditional shareholders, claims Goldmoney Founder
Bitcoin was conceived in the backdrop of banks bailouts and the 2008 financial crisis. The recession and the loss of faith in banking, financial institutions gave Bitcoin a platform to rescue the ones affected, giving them hope for a better financial system without the hassle of corrupt institutions. With the rise of Bitcoin’s fame, both in the darknet and in the mainstream, questions about its regulations had to arise.
The question was put to rest when the SEC/CFTC ruled Bitcoin as a commodity and taxed it. However, Goldmoney’s Roy Sebag brought this discussion up again recently in his tweet thread, where he said that Bitcoin as an enterprise is working towards its good, comparing its users to traditional “shareholders” among other things, while concluding that Bitcoin is a security. He tweeted,
“Is Bitcoin a security? <10 years old so regulators haven’t even had enough time to truly learn how it works (think Napster or Kazaa in early days). Miners are clearly issuing coins and responsible for governance, an absence of formal relations among them is irrelevant….”
In successive tweets, Sebag attributed miners with the role of “stewarding” the so-called enterprise. In return, these miners get paid in “direct fees” or in “share appreciation.” In Bitcoin’s case, it is the mining reward, which is “BTC”. Similarly, buyers are compared to “shareholders” with a common interest in the enterprise, i.e. profit. Sebag added,
“Coins trade at exchanges. The common enterprise is designed for the price appreciation of coin.”
Bitcoin could face a shutdown by the government, just like it did with big players in file sharing, said Sebag, who added that Bitcoin could also be interpreted as a security under the “34 act of the SEC.” The Goldmoney Founder concluded that “this realization rests on the belief that neither Bitcoin nor any common enterprise is truly decentralized.”
However, his inputs weren’t very well-received by many in the crypto-community. Casa’s CTO Jameson Lopp refuted Roy Sebag’s ideas, tweeting,
“Roy will believe what he wants to believe, though if he’s not actually participating in Bitcoin then his beliefs are irrelevant to its consensus formation.”
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