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Mark Karpeles is not entirely at fault for the Mt. Gox episode, claims Peter McCormack

Jibin M George



Mark Karpeles is not entirely at fault for the Mt. Gox episode, claims Peter McCormack
Source: Pixabay

Peter McCormack of the WhatBitcoinDid podcast fame, was on the hot seat as a guest on Brock Pierce’s podcast. The podcast touched upon a host of topics, including how Peter McCormack came to enter the crypto business, his career as a crypto-podcaster, and his opinion of Mt. Gox’s Mark Karpeles.

When asked about how Peter McCormack came to be introduced to the world of cryptocurrency, McCormack stated that he discovered cryptos through Silk Road, the darknet marketplace that was shut down over charges of alleged drug trafficking and arms smuggling. However, McCormack conceded that he didn’t fully get into crypto until late 2016, when he bought Bitcoins to arrange CBD (Cannabidiol) for his sick mother. The popular podcaster also admitted to having earned and lost a lot of Bitcoin over the period.

McCormack elaborated on his introduction to the world of crypto, stating that he started by writing articles and blogging about Bitcoin, before a friend convinced him to go ahead with a podcast. Citing the host of crypto-proponents he interviewed via his podcast, including the likes of Luke Martin, Charles Hoskinson, Charlie Lee, Jameson Lopp, Adam Back, and Hester Pierce, Peter McCormack had a piece of advice to give to fellow podcasters:

“Get very good guests.”

McCormack and Brock Pierce also discussed other subjects pertinent to the world of cryptocurrency. The host of WhatBitcoinDid podcast agreed with Pierce who felt that the sentencing of Ross Ulbricht, the man behind Silk Road, was harsh and severe. Pierce had cited the argument that Ulbricht was neither buying or selling on the darknet marketplace and the fact that the world’s most dangerous drug lord, ‘El Chapo’, received a comparatively reduced sentence.

The podcaster also provided some interesting insights into the character of Mark Karpeles, the former CEO of Mt. Gox, once the world’s largest Bitcoin exchange. Talking about the time he met Karpeles in Japan, McCormack said,

“Karpeles did a lot of stupid things, but I have a lot of sympathy for him.”

McCormack also spoke about Karpeles as a “nice guy”, stating that on a person-to-person level, the podcaster liked him and felt sorry for him since he seemed like “he had been through a lot”. With respect to the allegations leveled against Mark Karpeles, McCormack said,

“He was the wrong guy in the wrong place and got trapped in a situation, and I don’t think he’s entirely at fault.”

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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise




JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:

“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.

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