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Bitcoin advocates call for a ban on gold as on-going investigations into Danske Bank reveal the lender offered gold bars to clients as an off-the-table service. This bypassed money laundering checks and was sold based on helping to keep the fortunes of wealthy clients hidden.

Danske Bank Laundered $220 Billion

Authorities in both the US and Europe are probing Danske Bank over money-laundering allegations. Investigators believe the operation spanned Denmark, Estonia, and France, with around $220 billion funneled between 2007 and 2015.

Investigations into the bank have been on-going for some time now. But recently, it emerged that representatives, from the bank’s Estonian operation, offered a select group of mostly Russian clients the opportunity to purchase gold.

While the sale and purchase of gold are not illegal, details of this service were never openly publicized, to which compliance lawyer, Jakob Dedenroth Bernhoft said:

“It puzzles me that the bank’s own report on the case didn’t discover this. This is a service that is completely against all anti money-laundering laws. It is definitely suspicious.”

According to Bloomberg, anti-money laundering checks were performed before customers collected their bars. However, if clients opted to keep the gold in long-term storage, these checks did not apply.

The fallout from this has Bitcoin advocates calling for a ban on gold. While made as a tongue-in-cheek response, the intention is to highlight the hypocrisy that exists within the banking and precious metal sectors.

Criminals Use Bitcoin Less Than Other Methods

The fact is, criminals, launder money using Bitcoin, as well as a range of other methods. But the public at large often has a skewed opinion on the scale of the problem. Which in turn leads to an unfair representation of Bitcoin, and cryptocurrencies in general.

At the same time, money laundering by many well-known banks is a part of their daily business. And fines have done little to halt the practice.

According to Patrick Tan, CEO at Novum Global Technologies, this is because banks price in the cost of fines when doing new business. He said:

“Banks already price in the risk of a fine by the regulator when they consider these type of transactions. As long as the profits from the transaction exceed the fine, it’s more or less good to go.”

If that wasn’t enough to stir anger, Tan also brings to light the scale of the problem compared to the cryptocurrency market:

“According to the United Nations Office on Drugs and Crime, questionable transactions continue to reach as much as US$2 trillion a year. By comparison, the total market cap of cryptocurrencies is barely US$120 billion on a good day.”

bitcoin is the number one cryptocurrency

Criminals will use whatever means necessary to achieve their goals. And many banks are only too happy to help in that respect. As such, the association of criminality with Bitcoin is wholly unjust. Especially when considering that cryptocurrencies are far from the number one choice for criminals.

The post Bitcoin Advocate Calls For Ban On Gold Amidst Danske Bank Scandal appeared first on NewsBTC.

NewsBTC , 2019-11-11 16:54:45 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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