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Mt. Gox Bitcoin market share is more than the gold reserves of Swiss Central Bank

Priya

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Mt. Gox Bitcoin market share is more than the gold reserves of Swiss Central Bank
Source: Unsplash

Mt. Gox, a Bitcoin cryptocurrency exchange, has always been a major player in the cryptocurrency space. The exchange platform is said to have played a major role in the adoption of Bitcoin [BTC] in the past. However, it soon came crumbling to the floor because of a hack, resulting in the loss of over 7% of the Bitcoins in circulation in 2014.

The popular exchange has taken the spotlight several times over the past few years. This time the exchange has taken the stage because of a minor study of Bitcoin and Gold reserves. Tuur Demeester, the Founding Partner of Adamant Capital, worked on an analysis of Bitcoin in circulating supply equivalent to Central Bank’s gold reserves.

Bitcoin circulation and Gold reserves | Source: Twitter

Bitcoin circulation and Gold reserves | Source: Twitter

He went on to say:

“Allows for fun comparisons, e.g.: The MtGox Trustee currently controls 137,891 BTC, which is bigger in terms of market share than the gold reserves of the Swiss central bank.”

This was followed by the Founder speaking about how much the Dutch Central Bank would have to invest in Bitcoin in order to have the same control over the Digital Gold as it has over Gold. He said:



“If the Dutch Central Bank wanted to hold as much weight in the Bitcoin world as it does in the Gold world, it could do that by investing $250M in BTC today. The current value of Dutch Central Bank gold is about $25 billion, so in order to buy 69k BTC (the mined Bitcoin equivalent of the Dutch gold reserve) it would only need to sell 1% of its gold, i.e. 492 gold bars.”

Apart from this, the exchange is currently in the spotlight because of the Gox Rising, which is aimed at reviving Mt. Gox. This movement is lead by Brock Pierce, a cryptocurrency billionaire. The billionaire claimed that he had purchased 88% of the exchange’s stake for 1 BTC and remaining stakes from Jed McCaleb, co-founder of Stellar and Ripple, for 1 BTC again.

However, these claims were shot down by Mark Karpeles, the CEO of Mt. Gox at the time of its hack. He said on Twitter:

“No. No purchase agreement was ever even drafted, and the court didn’t approve the LOI. I didn’t hear of the price until recently either, and Tibanne has no record of any payment for the shares. MtGox official shareholders list doesn’t list Brock Pierce anywhere.”





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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

Bitcoin [BTC]: Morgan Creek CEO compares BTC returns to endowment returns

Akash Anand

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Bitcoin [BTC] returns compared to endowment returns by Morgan Creek CEO
Source: Pixabay

Bitcoin [BTC] and the rest of the cryptocurrency market has seen something of an upgrade, compared to its situation in 2018 when the bear market resulted prices falling from their peak. Many supporters of the world’s largest cryptocurrency have repeatedly claimed that the return on investments on Bitcoin has always been greater than that of traditional financial markets.

In a recent tweet, Mark Yusko, CEO and Chief Investment Officer of Morgan Creek Digital Capital, pointed out some value points of adding Bitcoin to an investor’s portfolio. Yusko tweeted,

“Some numbers to ponder when thinking about value of adding #Bitcoin to your portfolio
Endowments have $613B in Assets. Average return over past 5 yrs was mediocre 7.2%
Had they allocated 1% to $BTC return would’ve been 9.2%
Had #Bitcoin gone to zero, return would’ve been 7%.”

The Morgan Creek official made this statement on the back of Bitcoin’s stellar performance over the past couple of weeks. Ever since the world’s largest cryptocurrency fell from its $6000 hold back in November 2018 to settle below $4000, it found it difficult to break that threshold. The point, considered by many experts in the field as being close to Bitcoin’s bottom, continued to pull the cryptocurrency into a bearish vortex. Since April 1, Bitcoin’s price has spiked, in stark contrast to the strong sideways movement that it held since November.



Looking at the numbers, Yusko’s statements about BTC yields can be verified because investors holding the cryptocurrency at the $4170 mark on March 31 saw their portfolio spike by a whopping 100 percent on May 16, when the price touched $8280.

Mark Yusko was also in the news recently when he stated that Bitcoin was a great diversifying asset. He backed this up by comparing the digital asset’s performance with that of the S&P market. He said,

“Morgan Creek had launched the cryptocurrency challenge back in December and there were not many takers. In a way that was good because BTC is up by more than 100 percent right now, which is a much better hit rate than that of the S&P market. We will see that in the next 10 years, Bitcoin will outstrip even its current performance and maybe even more.”

 





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