A Growing Number of British Investors Believe Crypto is as Safe as the Stock Market

A Growing Number of British Investors Believe Crypto is as Safe as the Stock Market

A recent poll suggests that Brits are getting more comfortable with cryptocurrencies. American investors also appear to be warming up more to crypto as their appetite for risk grows.

  • Despite their growing maturity over the past few years, cryptocurrencies have continued to face criticism over their perceived volatility and susceptibility to massive price swings.
  • However, the tide appears to be turning in Britain, as investors are getting more comfortable with the fledgling asset class.

Crypto on the Same Pedestal as Stocks

This week, market research and consumer insights provider, Piplsay, shared the results of a survey conducted on British investors about cryptocurrency. The survey consisted of 6,070 British investors above the age of 18, showing that a growing number of them now view cryptocurrencies as safe investments.

As the survey showed, over 40 percent of respondents described cryptocurrencies as safe, compared to 31 percent who viewed them as dangerous. Another 27 percent responded neutrally. Comparing cryptocurrencies to stocks, 41 percent claimed that both asset classes are on equal risk footing, while 45 percent believe that stocks are still safer than cryptocurrencies.

Of those who expressed concern about cryptocurrencies, almost 30 percent cited the potential for fraud and hacks as their primary concern. 26 percent also expressed concern over regulatory uncertainty, while only 19 percent pointed to the issue of price volatility.

Despite the growing sentiment over cryptocurrencies’ safety, 57 percent of respondents claimed that they didn’t have any desire to own digital assets. Of these, 46 percent claimed that they stayed away from cryptocurrencies because they had little to no knowledge of the asset class.

At the same time, 46 percent of all respondents also opined that large brands in the country should accept crypto payments. Most of these people cited the recent increased demand for crypto as payment methods as their reason.

American Investors Beef Up Risk Appetite

Investors’ growing desire to trade in cryptocurrencies isn’t native to Britain alone. Across the pond, professional investors are also trooping into the crypto space, encouraged by the market’s growth over the past year.

Last month, a fund manager survey from Bank of America showed that Bitcoin had become the most crowded trade in the country. Per a Reuters report, 36 percent of respondents in the survey identified the “long Bitcoin” bet as the most crowded trade, beating out “long tech.”

The Bank of America report marked the first time that “long tech” will be knocked from atop its perch since October 2019. It also marks a growing positive investor sentiment for Bitcoin, which was only third on the list in December 2020.

Several fund managers have also been hyping Bitcoin as a safe asset to invest in. Last month, Anthony Scaramucci and Brett Messing of New York hedge fund SkyBridge Capital wrote in an op-ed that Bitcoin is just as safe an investment as stocks or government bonds. The hedge fund managers wrote,

“[…] increased regulations, improved infrastructure and access to financial institutions — like Fidelity — that hold investors’ money have made bitcoin investments as safe as owning bonds and commodities like gold, which are also used to balance portfolios.”

With the cryptocurrency market delivering steady returns over other investment classes, investor sentiment remains strong.

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Author: Jimmy Aki

67% of Millennials Believe Bitcoin Is A Superior Safe Haven Compared to Gold

67% of Millennials Believe Bitcoin Is A Superior Safe Haven Compared to Gold

Millennials believe that Bitcoin is a better safe-haven than gold. Despite its increased adoption, Bitcoin has experienced several social problems in its continued rise to prominence.

Over the last few years, we have seen first-hand how millennials deal with their personal finances.

The older generation believed in gold as the last resort in beating inflation, but with central banks printing more money than ever before due to the pandemic, many have had to search for better ways to hedge against inflation.

Millennials Believe In Bitcoin’s Future

A recent study from SimpleMoneyLife shows that cryptocurrencies are getting more adoption worldwide, despite their high volatility. The increased popularity, along with recent price rallies, has made these assets more preferable to legacy investment options like gold or government bonds.

In its research, SimpleMoneyLife, a personal finance platform, quoted a study from the deVere Group. The study revealed that about 67 percent of millennials see Bitcoin as a better store of value than gold.

The consistent adoption from millennials and increased institutional investment, has bolstered cryptocurrencies’ popularity worldwide.

Social networking apps like Twitter also play major roles in spurring crypto adoption. As SimpleMoneyLife explained, the social networking site churns out over 70,000 Bitcoin-related tweets daily.

Many of these tweets come from verified accounts of Bitcoin evangelists like Anthony Pompliano, Peter McCormack, and even Twitter CEO Jack Dorsey.

Several experts have pointed to Bitcoin possibly overtaking gold due to its increasing popularity.

Yesterday, Brett Messing and Anthony Pompliano of New York hedge fund SkyBridge Capital recently explained that crypto investments are as safe as gold and government bonds. The investment experts listed increased regulation and an enhanced Bitcoin infrastructure for its safety, adding that its value should skyrocket on the back of increased investment from institutions and millennials.

Social Concerns

Despite adoption being on the rise, SimpleMoneyLife pointed out that Bitcoin is experiencing some social problems with its distribution.

Although created to be decentralized, only a few early investors are controlling the vast majority of BTC presently in circulation. The SimpleMoneyLife research showed that two percent of BTC wallets control about 95 percent of the assets in circulation. A further 70 percent of BTC addresses have less than 1 BTC in them.

Another social problem appears to be the gender inequality discovered in the Bitcoin ecosystem. Males are seen as more interested in cryptocurrencies in general than females, with SimpleMoneyLife reporting that 85.77 percent of Bitcoin-related engagement comes from men, while 14.23 percent of the network’s participants are female.

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Author: Jimmy Aki

If Bitcoin Is Going To Soar, Then One Must Believe The Entire Fiat System Is Going To Collapse

If Bitcoin Is Going To Soar, Then One Must Believe The Entire Fiat System Is Going To Ultimately Collapse: Dutch Bank Rabobank

As Bitcoin continues to go higher and higher, everyone wants to jump on this bandwagon.

Just today alone, the digital asset broke multiple levels to climb as high as $40,400. But this might be just the beginning as the supply crunch is real and demand for Bitcoin continues to roar higher.

“The simple bullish macro argument appears to be firmly in place for bitcoin, but it is obvious that price action will remain volatile,” said Edward Moya, a senior market analyst at OANDA. “Outlandish calls for bitcoin to rise to $50,000, $100,000 or $200,000 just got its biggest endorsement from JPMorgan’s strategists, a goal for the largest cryptocurrency to potentially reach $146,000 in the long-term,” he said.

According to Dutch Bank Rabobank as well, no matter what situation, expect “a bigger bid for the likes of Bitcoin.”

Unlike Bitcoin, other “markets don’t like that when it involves anything except dolling out corporate bailouts,” as such expect unhappy equities and higher bond yields, wrote Michael Every, the Head of Financial Markets Research Asia-Pacific.

Back in 2013, the bank stopped its customers from buying Bitcoin, and then in 2019, the bank abandoned its crypto wallet plans.

In its latest letter titled “Can One Model What Is Going To Happen Today?…. No,” the bank called cryptocurrency “an entirely *political* play.”

The analyst argues that Bitcoin winning means the US dollar will collapse. But the government of course won’t allow this “disruption” because they have the “biggest guns and jails.” He wrote,

“The market is suddenly full of naive neoclassical economists who can’t model politics who are now embracing elements of Austrian economics without wanting to accept their whole intellectual package. Let’s do the heavy lifting for them then: if one believes Bitcoin is going to soar, then one must also believe the entire fiat system, including US geopolitical hegemony, is going to ultimately collapse.”

Every further points to the Gold Reserve Act of 1934 passed under President Franklin Roosevelt at the height of the Great Depression to stabilize the money supply. Under this Act, the gold standard effectively ended and the US government confiscated its citizens’ gold.

Amidst the ongoing unrest in the US, Every said, “there seems no happy ending here the way some have been pricing for. What’s a market to do? Probably blink in confusion and buy Bitcoin, right?”

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Author: AnTy

Tezos ‘Delphi’ Upgrade Makes it More Attractive For Defi Projects; Reducing Gas Price By 75%

Tezos has completed the Delphi upgrade, which many believe would make the blockchain a hub for defi projects. As per the official announcement, the Delphi upgrade has brought down the gas fees significantly, allowing users and developers to deploy more complex smart contracts on the platform.

The Delphi upgrade is believed to bring down the gas fee by a whopping 75% along with a four-times lower storage cost.

Tezos network makes use of gas just like Ethereum, but with a different implementation. While the Ethereum blockchain uses gas as a transaction fee, the Tezos network uses it as a limit setter for the consumption of computing power for a transaction. However, the transaction cost is determined by the amount of gas used for that transaction.

Gabriel Alfour, the lead developer at Marigold—and one of the core development teams that worked on Delphi, explained the importance of the lower gas fees and how it can propel the Tezos network to be a leading blockchain when it comes to the deployment of complex smart contracts. He said,

The motivation for such an interim proposal is straightforward. The size and complexity of smart contracts is limited by gas constraints, and so people attempting to build contracts with rich functionality have needed improvements to those constraints for some time.

Thus, such improvements are crucial to enable novel applications on Tezos that target areas like DeFi (“Decentralized Finance”), collectibles, and gaming.

Luckily, in August, we finalized some long-standing work on improving the performance of the Michelson type checker and interpreter, and on refining the cost model, thus mitigating the gas problem.

Growing gas fees due to the network congestion has been a substantial problem for Ethereums mainnet since defi gained traction, and its volume increased significantly. While the launch of ETH 2.0 is believed to solve many of the scaling problems for Ethereum, in the meantime, other blockchains such as Tezos can attract higher numbers of customers to its platform.

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Author: Hank Klinger

Teeka Tiwari Bitcoin Price Prediction: BTC Will Hit 70k “Sooner than People Realize”

Bitcoin just reached its highest point since 2018, and some analysts believe it will surge to new all-time highs in the near future.

Crypto investment analyst Teeka Tiwari predicts bitcoin will reach $60,000 or $70,000 “a lot sooner than most people realize.”

In a recent Zoom call with Chris Lowe of Legacy Research Group, Teeka specifically predicted bitcoin growing as high as $60,000 or $70,000 USD.

Although Teeka did not issue a timeline for his prediction, Teeka insisted we’ll see cryptocurrencies with “multitrillion-dollar market caps” within the near future – similar to how stocks like Amazon and Apple have multitrillion-dollar market caps today:

“You will see cryptocurrencies with multitrillion-dollar market caps – like how you now see stocks like Amazon and Apple with multitrillion-dollar market caps.”

Teeka made the prediction back in August when bitcoin was hovering between $10,000 and $12,000.

Over the last few weeks, bitcoin has surged to recent highs, reaching as high as $13,793 on October 27. Although the price has retreated slightly in recent days, some are calling for bitcoin to reach a new all-time high before the end of 2020.

Teeka deliberately did not put a timeline on his prediction, stating that he did not want to get backed into a corner – similar to how other cryptocurrency ‘gurus’ have looked foolish when their price prediction dates have come and gone:

“I’m not going to paint myself into a corner and say when. But it will happen a lot sooner than most people realize.”

2020 has been an uncertain year for everything, but bitcoin has remained relatively steady throughout the year. The world’s biggest cryptocurrency has continued to slowly accumulate market cap throughout the year.

While some believe there will be a correction before the end of this year, others believe bitcoin will surge. We could see a tumultuous end to 2020. With the US presidential election and uncertain COVID-19 treatments, bitcoin could be a safe haven for investors in a world of uncertainty.

In his interview, Teeka claims we’re in “maybe the second half of just the first inning of this bull market.” As much as bitcoin’s price has surged in recent months, Teeka believes this is just the first 10% of the bull market – with the remaining 90% surge still to come:

“We’re in maybe the second half of just the first inning of this bull market. You’re going to see bitcoin reach $60,000 or $70,000.”

Why Bitcoin Could Surge to All-Time Highs

There are reasons to be optimistic about bitcoin in the near future. Teeka and his team have collected all of the following evidence showing the long-term viability of bitcoin and digital currencies in general:

Fidelity (one of the world’s largest asset managers), Intercontinental Exchange (ICE, the owner of the New York Stock Exchange), and JP Morgan Chase (one of America’s largest banks) are creating crypto products and services for clients.

Walmart, Visa, IBM, Citigroup, and UPS are adopting blockchain technology, using it to track supply chains and cross-border transactions.

Billionaire hedge funds are allocating a portion of their portfolios towards bitcoin, and a growing number of asset managers recommend putting a slice of your portfolio into alternative assets like bitcoin.

The Department of Defense, the Secret Service, and NASA work with blockchain technology for national security and space exploration.

The central banks of China, Sweden, and France are exploring the launch of their own digital currencies called Central Bank Digital Currencies (CBDC) that could change the future of national currency as we know it.

It’s not all good news for crypto, however. On October 30, bitcoin abruptly dropped 4% as Bank of America predicted a 20% market crash. The Dow Jones Industrial Average has declined 7.55% since October 12, and some suggest this winter will be the end of the market’s historic bull market – leading to uncertain times for bitcoin.

Of course, critics argue that uncertain times lead to a surge in bitcoin prices. Bitcoin delivers that coveted ‘alpha’ investors seek. Bitcoin rises or falls on different factors than traditional markets, and it’s not tied to the economy of any specific country.

Teeka first approached the Legacy Research Group team back in 2016, advocating for them to cover cryptocurrencies.

Clearly, Teeka believes bitcoin’s brightest days are ahead. Stay tuned to see if bitcoin reaches $60,000 to $70,000 within the near future.

The long time bitcoin advocate is also hosting an upcoming event on Wednesday, November 11, 2020, at 8 PM ET called Teeka Tiwari’s Crypto Catch-Up event. The Crypto Catch Up webinar hosted by Palm Beach Research Group’s Teeka Tiwari will be referred to as ‘The Last Chance To Get The Life You Want,’ where the cryptocurrency countdown will take place.

During the Crypto Catch Up event by Teeka Tiwari, Mr. Big T, or The Crypto Oracle, will be revealing his top coin pick for 2020 along with five additional coins that he believes are destined and due to post great gains in the coming months and years ahead. The event is absolutely free to sign up and watch, giving highly educational materials for anyone who attends and watches the live in-person summit.

Again, The Crypto Catch-Up: Your Last Chance to Get the Life You Want event with Teeka Tiwari is the latest and greatest offering from one of America’s most trusted crypto analysts, having been recommending Bitcoin when it was $429 BTC/USD and Ethereum at $9 ETH/USD all the way back in 2016. The new crypto event is on Wednesday, November 11th, at 8 PM ET and is a must-see actionable event that will provide invaluable insights and analysis, along with Teeka Tiwari’s top crypto coin ticker symbol to buy right away just for signing up today.

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Author: Andrew Tuts

Bitcoin for Beginners: Explaining Crypto and DeFi Coins During the Next Bull Run

Crypto experts believe the next bull run is coming. When it comes, you’ll need to once again explain crypto to your friends and family.

How do you explain the power of blockchain to someone? What’s a good elevator pitch to get someone to invest in bitcoin? How do you explain the power of crypto in a few sentences?

Preston Pysh (@PrestonPysh) just answered these questions on Twitter. Preston published several paragraphs on Twitter explaining how to explain the potential of crypto to friends, family, and anyone else you talk to – when they inevitably ask during the next bull run.

Before bitcoin hits $20,000 by the end of 2020, we’re here to help explain Bitcoin to your friends and family.

What Problems Does Bitcoin Attempt to Solve?

For technology to change the world, it needs to solve a problem. The iPod solved the problem of transporting 1,000 songs in your pocket. The internet solved the problem of global communication. The wheel solved the problem of moving big things around.

So what problems does bitcoin solve?

Bitcoin was created as the most secure, stable digital currency. It’s designed as a global, digital peg on fiat currency.

Some had seen fiat currency as a problem since the 1930s when the United States government seized gold from U.S. citizens and made it illegal to hoard gold. Others pointed to 1971 when global economies agreed to remove their fiat currencies from the gold standard, which is why today’s currencies are no longer pegged to…anything.

The lack of a fiat currency peg has led to…issues. Governments around the world are overusing inflationary monetary policies with no monetary peg. The $100 USD you owned 50 years ago only buys a fraction of the amount of stuff it did back then – due to inflation.

Bitcoin is deflationary. It has a fixed supply. There will never be more than 21 million bitcoins in existence. Out of the 17 million bitcoins in circulation, a significant portion (most experts guess around 4 million, but it could be higher) have already been permanently lost. If the demand for bitcoin continues to rise, and supply remains fixed, then bitcoin’s price can only go one direction: up.

But Bitcoin’s Price Is So Volatile!

“Why would I buy a bitcoin for $10,000 today when it could be worth $100 tomorrow? The price changes all the time, and I can’t trust a significant amount of money to crypto!”

It’s true that bitcoin’s price is volatile. Ten years ago, you could buy a bitcoin for a few pennies. Today, bitcoin is priced around $12,000. A few years ago, one bitcoin was worth $20,000.

Over time, bitcoin’s volatility should flatten. Bitcoin is a new asset, and investors are still trying to price that asset. Markets for uncertain assets fluctuate, and bitcoin is no different. The market is trying to find the actual value of bitcoin.

Of course, grizzled bitcoin fans will tell you that the price of bitcoin only fluctuates when comparing it to USD: 1 BTC has always been equal to 1 BTC. It’s only the BTC/USD (and BTC/any other fiat currency) ratio that fluctuates.

How Does Bitcoin Have a Fixed Supply? Can’t Someone Raise the Supply?

Bitcoin’s supply is fixed. There can only ever be 21 million bitcoins in existence. Nobody can copy their bitcoin to duplicate it. That’s one of the key technological innovations of bitcoin: unlike other digital files, one bitcoin cannot be spent twice or copied in two places. Bitcoin’s blockchain innovatively solved the “double-spend” problem.

There are 21 million bitcoins, but you can still break down bitcoin into smaller units. Each bitcoin can be broken down to 8 decimal places, which means there are 2,100,000,000,000,000 total bitcoin units (people call these ‘Satoshis’). There will never be more than this supply because of blockchain.

There Are Thousands of Cryptocurrencies – Why Would I Buy Bitcoin?

Bitcoin isn’t the fastest cryptocurrency. It’s not even the most secure or private cryptocurrency. In fact, from a technical standpoint, bitcoin has few advantages over many of its competitors. However, bitcoin has one significant advantage: first-mover advantage. Bitcoin was the world’s first cryptocurrency, and it’s the coin most people think about when they hear “crypto.”

Preston Pysh recommends thinking of it like another open-source project everyone knows about – Wikipedia:

  • Wikipedia is an open-source website that anyone can legally copy and duplicate.
  • Anyone could copy the open-source code for Wikipedia, change the name, and try to adopt new users and overtake Wikipedia as the world’s best repository of knowledge.
  • This doesn’t happen because of “network effects,” explains Preston: bitcoin has the most substantial protocol network effect for pegged money.
  • Yes, bitcoin has its issues – but despite the fact, anyone can copy bitcoin, people don’t. And bitcoin has remained the world’s largest and most valuable cryptocurrency since launching in January 2009.

Won’t Governments Just Ban Bitcoin?

It’s true that governments have banned bitcoin in the past. The Chinese government banned crypto exchanges in September 2017, for example.

During the early years of bitcoin, it was a credible threat that governments could ban it. Today, it’s less of a risk. Countries around the world have already passed laws that legitimize bitcoin and protect bitcoin hodlers. Germany, Australia, South Korea, and other countries have laws protecting bitcoin ownership – just like they have laws protecting any non-digital property for citizens.

The government has the power to ban virtually anything – from free speech to guns to methods of payment. As long as the majority of people want bitcoin, and as long as you live in an open democracy, you should have nothing to worry about.

How Much Will One Bitcoin Be Worth Ten Years from Now?

Inevitably, bitcoin conversations turn to price – and how much money you can make by investing in bitcoin.

Of course, nobody can predict where bitcoin will go next. It could sharply fall before it rises again. It could skyrocket to $20,000 by the end of the year – and $100,000 next year.

People have all types of bitcoin predictions – they’re all over the board with predictions.

One thing to consider is that fiat currencies like the US Dollar may lose their value while bitcoin rises in value. With central banks around the world implementing inflationary policies and pumping new money into the economy, it’s possible fiat currencies will slowly become a thing of the past – while digital currencies become more popular for their fixed supply.

This is all conjecture – but this is the type of speculation that could get friends, family, and others interested in cryptocurrency.

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Author: Andrew Tuts

66% Of Europeans Optimistic Crypto Industry Will Survive The Next Decade: bitFlyer Report

More than two-thirds of Europeans believe the cryptocurrency industry will survive in the coming decade.

In a research carried out by BitFlyer, one of the largest crypto exchanges in Europe, titled, “Crypto-Confidence-Index” a poll of over 10,000 respondents across 10 countries revealed the COVID-19 may have a part to play in the increasing optimism.

Over 66% of Europeans Believe in Crypto Longevity

The poll, carried out this March, reveals over 66% of the respondents believe crypto will still be around come 2030. This represents a jump from 63% in 2019’s report. The year on year growth shows the confidence that investors across the continent hold on cryptocurrencies despite the effects of COVID-19 in recent months.

The poll included citizens from France, U.K., Netherlands, Poland, Spain, Norway, Italy, Belgium, Germany, and Denmark.

Italy holds the largest belief of crypto surviving in the course of the next decade with 72% according to the respondents’ opinions. The country which suffered the most from the 2020 pandemic, raises a case for crypto transactions as the country remains in a lockdown period.

Spain, another intensively hit country by COVID-19 came in fourth in the rankings with 68% of the respondents believing crypto will be with us in 2030. Netherlands and Poland come in second with 70% of the total respondents optimistic on crypto.

The COO at BitFlyer, Andy Bryant appreciated the growth witnessed across the field and believes the current hard times may have a role to play in the growing optimism. He further said,

“Although we might look at this as an achievement for digital currencies in spite of the challenging economic times we are facing, it is also worth considering that this may well be partly because of these times.”

Bitcoin (BTC) as a Payment System?

However, Europe remains sceptical on the possibilities that Bitcoin (BTC), the top cryptocurrency, holds in the coming decade.

About 25% of respondents answered that they were certain that cryptocurrencies would still exist, but had no idea how they would be used, with this response being up 2% from 2019. Only 1 in every 10 Europeans further believe BTC will be used as a recognized payment currency in 10 years (9%).

Italy has the largest population of believers in BTC, with 12% of the respondents saying that BTC will be a major payment currency in the coming years, a 2% spike from 2019. The U.K, in contrast, are not as optimistic as only 5% of the respondents believe BTC will be around as a payment system in 10 years.

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Author: Lujan Odera

Latest Ripple XRP Securities Lawsuit Updates: A Decision Must Be Made

  • Ripple has been the subject of many lawsuits through the last few years.
  • Multiple lawyers believe that the only minor victory for Ripple would be if the case were to be dismissed, though it will likely face other lawsuits.

Today, on November 4th, the next stage of the long-running Ripple lawsuit will be taking place, though that stage has seemingly yet to be decided. Bradley Sostack, the plaintiff, can file a response to a motion to dismiss by the end of the day, which was originally initiated on September 20th. If it isn’t fully dismissed, then the case might move into discovery, as it would be newly categorized as a class action lawsuit.

The big question that seems to be on the table during this case is if XRP should be registered as a security under US law, which is what Sostack is claiming. If so, then the Ripple-based token might end up being at risk of enforcement action by the regulators in the US. However, regardless of the ending of this case, legal experts don’t believe that there will be a resolve on the matter.

Rebecca Rettig, a partner with FisherBroyles, commented,

“No one’s finding out whether XRP is a security anytime soon, if ever, at least through this proceeding.”

There are plenty of reasons that this type of decision won’t be made. For instance, the last motion made by Ripple argued that the complaint by Sostack took too long to file, and that the case doesn’t actually show that the plaintiff had purchased XRP from Ripple or even the initial sale. To win the case, Ripple probably won’t even need to address the question.

A partner with Anderson Kill, Stephen Palley, pointed out that “a solid motion” was created by the defense team.

He added,

“The defense lawyers have done a good job so far. They’ve shown some good tactical skills, they could win but even if they do there are a lot of other things that could happen.”

According to CoinDesk, there’s been no response from the general counsel of Ripple.

Rather than being initiated as an argument, the motion from Ripple to dismiss was more about the question being posed in the first place. Paul Godfrey, an attorney that is based in Florida, stated that the platform created “both a statement and a legal conclusion in its introduction.” He added that the introduction pointed out that “the crux of [plaintiffs’] claims is the false assertion that XRP is not a currency, but rather a security.”

Godfrey, who doesn’t practice securities law and has never litigated in the federal courts, believes that the discussion over XRP’s status (or lack thereof) as a security is more of a legal conclusion, which Ripple makes but doesn’t argue.

Godfrey stated,

“Ripple does not advance any argument to prove such a denial… Accordingly, it is addressed, but not argued.”

Rettig believes that pushing back against the idea of XRP is a security could be considered “too risky,” and a major analysis of the facts would be essential to making the argument in court. Ripple avoided this type of fight with “straightforward legal defenses,” as Rettig sees it.

She remarked,

“If you have independent grounds or a dismissal, [and] you don’t have to get into a fact-intensive analysis, why do it?”

Furthermore, in claiming that XRP is not a security, adding that it is instead a currency, Ripple could face holes in the argument.

Palley points out an interesting conundrum, stating that securities law may still allow something to be considered a security or investment contract, as well as a currency, simultaneously.

He stated,

“Basically, just because it’s one thing doesn’t mean it can’t be another. It can be a security for one purpose, and currency for another. The application of one framework doesn’t exclude another.”

He brought up the current legal battle involving Kik Interactive and the SEC, during which time that the former stated that their kin cryptocurrency cannot be a security because it is a currency. The SEC has since disagreed.

The “statute of repose” argument used by Ripple is interesting to Rettig, who noted that the argument has been brought up in other cases. This period of time covers the period after a sale that allows parties to file a lawsuit in response to an alleged wrongdoing. The “statute of limitations” is different, as it starts upon learning of the misconduct, according to law professor Peter Henning that wrote about these circumstances in the New York Times.

Rettig elaborated, stating,

“The statute of repose argument … was used successfully a number of times in cases bringing Securities Act claims relating to mortgage-backed securities six or seven years ago, which provides precedent the defendants could rely on.”

Rettig explained that the first filing of the amended complaint by the plaintiff involved,

“a lot of discussion about how novel and interesting it was that plaintiff cited extensively to websites, to social media and the like.”

He added that the “interesting” approach made the complained “robust.”

Ripple used this maneuver to their its advantage, bringing in their own facts.

However, Rettig commented,

“Usually defendants can only use the facts alleged in the complaint itself or the facts incorporated by reference in a complaint in defending against claims on a motion to dismiss. Here, however, defendants were able to use all of the facts in the documents, websites and social media posts to which the complaint cites in rebutting plaintiff’s claims.”

Ripple brought in information sourced from a wiki page to support their argument, though Rettig commented that other details on that same page were used by the plaintiff to support his argument.

Godfrey remarked,

“By showing no relief was available for count 1, Ripple was able to demonstrate there was a failure to state a cause of action for count 2.”

Now, in the filing expected to be today, the plaintiff has a few ways available that could ultimately push the case along. Rettig believes that the plaintiff may try to “relate back” to the first case that was filed, which stated that Ripple was in violation of securities laws. This wouldn’t be a new accusation, considering that Ripple has been facing lawsuits since May last year that alleged that XRP was being sold as an unregistered security. However, it still may not be enough to win, since Ripple already argued against it.

Rettig explained,

“Plaintiff also relies on a ‘continuing sale’ theory and they may apply that argument to the statutory requirement that the statute of repose runs from the date the security was ‘first bona fide offered to the public.”

Godfrey remarked that the discovery process that eventually is implemented could help with the verification of the XRP purchase from Ripple by the plaintiffs.

He stated,

“If I were Plaintiff’s attorneys … I would focus on the fact that while the inference could not be maintained in the past, with present technology and some well-aimed discovery, it would be quite easy to determine whether or not XRP was purchased by Plaintiffs from Defendants.”

Even if Ripple manages to come out victorious, Palley believes that the platform will continue to be faced with new lawsuits.While other cryptocurrency companies tend to be difficult to sue with their lack of liquidity, Ripple doesn’t have the same problem.

Palley pointed out,

“[With] ICO class action litigation from an economics perspective, you have to ask … how much money can you recover? Ripple, you have a solid [chance] of money.”

Palley added that winning now isn’t a win overall, and that the case being dismissed would mean more of a victory for the platform.

Tobacco companies often face a similar problem, as they would have to win every single case. The loss of just one case opens the door for other parties to use it towards their own victorious lawsuits.

Palley added,

“It’s not like winning this case means that nobody else can sue them for securities violations.”

At the same time, it doesn’t mean that Ripple can be faced exclusively with losses; it only means that parties have the ability to file lawsuits.

Until the case has some level of movement today, blockchain industry lawyers await the outcome of the Sostack versus Ripple case. Rettig remarked, “It’s not going to end for a long time.”

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Author: Krystle M

BCH Hash Rate Taken Over by Unknown Miner with 50% Control for Full 24 Hours

  • It is unclear if the 50% control was the result of the work of one or multiple miners.
  • Some proponents believe that this ability points to an issue with security and liability with Bitcoin Cash.

In the cryptocurrency industry, every platform thrives on a lack of majority control. Decentralization relies on this idea, as it allows the industry to remain free and unregulated. However, a recent article by Cointelegraph points out an issue with the Bitcoin Cash hash rate, which was in control of 50% of the hash rate for a total of 24 hours.

From 10:00am on October 24th to 10:00am on October 25th, the miner appeared to mine 73 blocks. Notgrubles, a crypto Twitter user, stated that this action is proof that “BCH is a security risk and liability,” and that the coin should be delisted.

With this level of control, the miner, or miners, cannot be far from having control of the entire network. One of the crypto proponents on Reddit suggested that this type of control would lead the miner to do “nefarious things.” Another Redditor – Bitmeister – stated that it is more likely that Bitcoin miners are trying to experiment with their BTC hash power by directing their attention to BCH.

Bitcoin’s network hash rate recently had a major dip of 40% at the end of September, which is still unexplained at this point. Considering the massive highs that Bitcoin experienced in their hash rates over the summer, this drop was even more surprising. Cointelegraph even reported that the hash rate passed 102 quintillion hashes, which was a major milestone for the digital asset.

With a higher hash rate comes greater competition to mine new blocks. At the same time, it increases the resources that would be required for a 51% attack, which secures the network.

Along with the sudden rise in Bitcoin’s price, Bitcoin Cash is also seeing some success, though the value of the token has declined since then. At the time of writing, the token was down by 2.45% with a value of $250.12 per BCH.

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Author: Krystle M

CoinShares CSO: Wall Street Using Bitcoin May Not Be A Win-Win Situation

Most of the crypto community seems to believe that institutional traders adopting Bitcoin can be a huge thing for the market. Surely, prices will go up, but is that the right way for the network to grow? During a recent interview with RealVision, the Chief Strategy Officer of CoinShares, Meltem Demirors, has affirmed that this might not be the win-win situation that most people believe.

According to her, big financial players are set to transform how Bitcoin is seen around the world. Bakkt, the futures exchange of the giant Intercontinental Exchange (ICE), is set to change how the market operates and the same can be said about other successful companies such as Grayscale, for instance, which is having a pretty good year.

This will impact the market. Demirors, however, was somewhat skeptical about the centralization that this could cause. If half of the supply was stored somewhere and people now had receipts to prove that they owned BTC, how different would it be from fiat currency? How decentralized? Would Bitcoin still be the same? This is how she put it:

“If we take 50% of the world’s Bitcoin and we put it in custody with a custodian that’s regulated… and we take these Bitcoins, and we put them in a vault somewhere… and then we issue Bitcoin depository receipts — pieces of paper that allow us to trade the underlying Bitcoins sitting in a vault somewhere — but we never actually exchange Bitcoin on the Bitcoin network, is that still Bitcoin?”

These are important questions that need to be addressed. Bakkt did not have a great launch and it started slowly, but it would be naive to believe that this kind of platform does not slowly change how the market operates.

With so many asset managers in the game (including CoinShares), won’t Bitcoin stray away from what it was created to be? At the moment, we can only speculate, but we’ll probably have the answer to the question in a few years from now.

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Author: James W