On the CoinsBank Blockchain Cruise, AMBCrypto approached John McAfee to obtain his perspective on the price of Bitcoin [BTC] in the long term. McAfee spoke about the economics of the coin, and about the state of mining currently.
He began by saying that he had no idea as to what would happen in the short term. However, he offered an anecdote from his time working at MGT Capital. This was shortly after they turned to cryptocurrency mining as their full-time occupation, leading to John McAfee to gain insights into mining. He stated:
“I was one of the world’s largest miners when i was with MGT…we did it because it was profitable. No matter what the price of Bitcoin, you cannot lose money by mining Bitcoin. Let’s say the price drops to $2000, everybody gets out and the difficulty rate drops to zero and you’re cranking out millions of coins per day.”
He also spoke about balancing the four variables of temperature, hashrate, mining difficulty and consumption of electricity, further elaborating on the perspectives he gained being a miner of Bitcoin. He stated:
“As a large miner I am able to see the actual growth and use of Bitcoin. Two weeks ago I did a Bitcoin transaction and it took me 18 hours. If you have an item, entity, product whatever that is in such demand and you tell me the price is going to go down, no it’s not.”
The mining difficulty of the Bitcoin blockchain has slowly been going up, with the next block halving on the horizon. This means that the supply of Bitcoin would be cut in half, as the block reward will be reduced from 12.5 to 6.25 BTC. On this, McAfee stated:
“Why don’t we look at the last Bitcoin? We have thousands of people to mine one coin. What is that coin going to be worth? Maybe billions. Mathematics doesn’t lie. Say what you want, mathematics doesn’t lie. If it’s not a million dollars in 2020, it has to be. The end of 2020, december. That’s my prediction, I’m going to stand by it…it is the number 1 coin for processing transactions. Run the numbers.”
The current state of the market has many analysts stumped, as the price seems to hike and fall in seemingly the most random and unplanned way. However, McAfee believes that this is manipulation of the market, quoting the drop in Bitcoin from $7400 to $6400 in 3 days. On the subject, he elaborated:
“You can only manipulate something if you have the power to do so. Now if that thing becomes more valuable your power decreases, and the inherent value is many times the current price of Bitcoin. It just comes through always in every market situation. The people that are manipulating it, they are going to lose billions of dollars and then it’s going to be over.”
The state of the Bitcoin market is in an “infant state”, stated McAfee, likening it to a blade of grass that is susceptible to the wind or a footstep. However, soon it will become a “fire raging in a forest”, he said, stating:
“It’s a fire raging in the forest, and you’re outside the forest and you’re in your house and you’re leaning back but it’s going to break out of the forest and it’s going to be in the world and we’ll have to deal with it. And keep in mind that as cryptocurrency increase, fiat currencies will inflate.”
When asked about whether he had anything to say to the readers of AMBCrypto, McAfee stated:
“Stay true, stay the course, and hold. There is no such thing as a wealthy short term investor.”
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LocalBitcoins see steady trading volume in Russian Ruble following cash-trades exodus
LocalBitcoins, the Finland-based peer to peer cryptocurrency exchange, announced earlier this month that trading in a country’s national fiat currency will be disallowed, leading many in the community to believe that countries not on the frontlines of the digital asset world would be hit the hardest. Three weeks on, some defiant trends have been noticed.
According to CoinDance, the weekly LocalBitcoins chart revealed that the Russian Ruble [RUB] recorded towering volumes, even after the June 1 cash-exodus announcement. With many expecting a drop in volume, other top countries have also seen the absence of an immediate plummet, with Moscow being the stand-out.
The first week of June saw a notable high of RUB 1,174 million in volume owing to the native currency, while the aftershock of the announcement dropped the same down by to RUB 1,104 million by the second week. The next two weeks saw the volume surge back to its May 2019 heights, with the week beginning on June 22 recording a volume of RUB 1,188 million in volume.
On the basis of the above data, Russia is indeed a positive LocalBitcoins market.
The Finnish exchange has also been popular in South America, with its weekly volumes doing exceedingly well in the markets of Colombia, Venezuela, Peru, Chile, and Argentina, with Brazil, the only Latin American country left-out.
Buenos Aries saw its weekly volume from the initial weeks of June to mid-June drop from $13.71 million to $10.53 million, following the cash-removal announcement. In terms of the Colombian Peso, CoinDance stated that the number for the same was $9.98 billion towards the close of May 2018, and dropped to $7.16 billion by the first week of June. However, the same has since stabilized to stand at $9.2 billion.
LocalBitcoins began mulling the possibility of phasing out fiat currency trades following its inclusion under the supervision of Finland’s financial watchdog, the Financial Supervisory Authority [FSA] in March 2019. This inclusion was made days after Finnish legislators stated that cryptocurrency-based assets would be given legal status under the law. However, the act will officially come into force later in November 2019.
Additionally, several changes were made to the country’s Anti Money Laundering [AML] laws and Countering Financial Terrorism Act [CTF], which would require the exchange to follow the stated guidelines.
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