Week 45 News Recap
Bitcoin’s Price in 2017 Wasn’t Manipulated by a Single Trader
An American businessman, co-founder and CEO of a payment company Circle, Jeremy Allaire, shared a series of posts on Twitter at the beginning of November, stating that the success price that Bitcoin reached back in 2019 by scoring nearly 20,000$ per one BTC, wasn’t manipulated by a single wallet holder. The series of posts comes as a reply to a study that claims that Bitcoin’s peak price could have been a result of action facilitated by one trader alone. Allaire added that the research doesn’t understand how the market works. There is also an active lawsuit against stablecoin Tether (USD), weighing 1.4 trillion dollars on allegation that one Tether trader managed to manipulate the market into having Bitcoin reach its record price in 2017. Allaire doesn’t negate the fact that the market was manipulated. In addition, a trader has made a statement on the following matter, claiming that all markets are being manipulated, and emphasizing his statement as a fact. However, what Allaire is trying to prove is that one wallet doesn’t have the capacity to manipulate the entire market alone, deeming the research as illogical. Allaire isn’t the only one to criticize the proficiency of the mentioned research. In addition, the former executive director of Bitcoin Foundation, Bruce Fenton, claims that the entire research seems to misunderstand the way the market works as oppose to stablecoins.
Another Questionable Claim on Satoshi Nakamoto’s Identity Appears
If it weren’t enough claims on the identity behind the alias of Bitcoin’s creator “Satoshi Nakamoto”, one of them being Craig Wright known as “Faketoshi”, another claim appeared on an event in Las Vegas presenting another claim on the name of Bitcoin’s creator. A video taken at the event starred a man named Jörg Molt, who is the latest person to come up with claims on being the man behind the world’s biggest cryptocurrency – Bitcoin (BTC).
Molt’s claims are bold and may be categorized as “greater than life itself” as he claims to be a co-founder of Bitcoin, and “one of the few” cryptocurrency and blockchain specialists. By far, Molt has been identified as a DJ careerist based in Germany, as well as the founder of a website called Satoshi School, where he claims to be teaching about Bitcoin and technology behind it. The website claims to be the project of a Bitcoin co-founder with Molt’s name all over the website, in addition to listing claims that Molt has been working on digital cash projects since 1995. After having Molt involved in scam accusations on Twitter, his official account on the social media has been deactivated. The nickname the alleged co-founder of Bitcoin has gotten from crypto fans is “Nakamolto”.
FBI Deems Cryptocurrency as a Serious Issue
Christopher Wray, Director at the Federal Bureau of Investigation – FBI – attended the official hearing on the matter of threats to the United States, before the Senate Homeland Security Committee, where the main topic was revolving around cybersecurity measures, foreign manipulation of government election, counterterrorism, border security, and inevitably cryptocurrency. Director of FBI, Wray, stated on this occasion that cryptocurrency poses as a threat to the security of the US, presenting a significant problem that is only about to get bigger (and bigger).
Wray also added that the FBI is already using tools they have at their disposal for following cryptocurrency in order to be able to determine where the money is going. In addition, Australian Minister of Home Affairs, Peter Dutton is warning the public on the matter of terrorists who are using cryptocurrency to fund their deadly missions, emphasizing that anonymity that goes hand in hand with cryptocurrency transactions allows criminals to fund illicit activities. On the other part of the world, FBI emphasized the importance of following up with latest digital trends in order to prevent terrorism and similar illegal activities.
MakerDAO Hits the Loan Limit After Hitting 100 Million Dollars-Worth DAI
After issuing almost 340 million dollars-worth Ethereum units (ETH) kept as a collateral and locked, the MakerDAO administered by the Maker Foundation, MakerDAO has hit the loan limit. After reaching the limit by hitting 100 million dollars in DAI, the administration proposed a new loan limit. The new loan limit as per the proposal suggests the new limit is to be set at 120 million worth DAI. The proposition needs to be voted by the holders of MKR governing tokens. The president of Maker Foundation, Steven Becker, stated on this occasion that new DAI can’t be generated until the loan limit is increased. The loan limit has been reached as a result of the rising popularity of MakerDAO loan service with nearly 40,000 transactions recorded in the course of a single month alone. Becker stated that he is not sure which demographics are the most active participants of the system, adding that the rising interest is notable despite. The creator of DAI analytics, Michael McDonald, stated back in July that the rising debt might be calling for a more stable fee on debts as interest rates on these loans are not fixed. For the record, the stability fee managed to fall from 18 percent to a bit below 6%, with the current rate set at 5.5%.
Central Bank Notes Increased Ownership of Cryptocurrency in Canada
The most recent survey conducted by the Bank of Canada (Bitcoin Omnibus Survey), on the matter of usage of Bitcoin and digital assets, shows that interest in cryptocurrency and ownership of Bitcoin is rising in Canada despite the bear markets. The survey represents an in-depth research following the rise, as well as fall, of cryptocurrency trends in the market of digital assets. The goal of the survey facilitated by Central Bank of Canada is to follow up with ways interest in crypto assets can affect Canadian financial system. The bank is also looking into ideas on the cashless society, checking if Canadians are ready for the next financial revolution. In the period between 2016 and 2018, awareness on Bitcoin and crypto markets increased in Canada from 62% to 89%. In addition, the percentage of Canadians who are buying Bitcoin increased from 3% to 5% in the same time period.