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In an exclusive interview with Cointelegraph, Blockstream CEO Adam Back stated that for him, nothing is above Bitcoin, not even stablecoins or other coins issued by central banks.

Adam Back invented the hashcash proof of work system, and was one of the first people to work with Bitcoin (BTC). In addition, he was present this year at the G20 meetings in Japan, where he spoke about the positive uses of blockchain.

At G20, sitting next to the president of the Dutch central bank, Back said he believed the blockchain would be another initiative for an open network, and said financial institutions no longer benefit from technology because it would mean that international transfers would not need intermediary banks with questionable credit.

Japan’s Financial Services Agency described Back as a legendary cypherpunk who was able to facilitate useful discussions about the role that cryptography and blockchain can play in the future.

Cointelegraph contacted the CEO to comment on China’s possible developments of a central bank digital currency (CBDC) and the increasing use of blockchain technology by private institutions. But for Back, none of this is as important as “uncensored money” like Bitcoin.

I think that blockchains are more about permissionless, uncensorable usage and free market money – separating money from state – using  a gold-like mined digital commodity money: Bitcoin. I think while it is possible and useful for some use cases, like crypto trading, to have stable coins, they inherently fall short of Bitcoin as they have custody risk, and if there is a central bank underwriting also traditional establishment interests reflected in the operation which may look unattractive to users.

Regarding Facebook’s proposed cryptocurrency Libra, Back pointed out that it will have nothing to do with cryptocurrency and is just another “banking app with a modern feel.”

Effectively though, as Libra showed, it will not be a decentralized cryptocurrency and is more a business consortium competitor to Venmo, PayPal, and QQ Pay, just with a user interface that looks like a crypto wallet.  In terms of permissions, sign up, account freezing, or financial interest for the operators to go fractional, it is just another online banking app with a more modern feel.

Back’s opinion of Libra is the same as his opinion of CBDC, although he believes that a CBDC’s chance of success is greater than Facebook’s project. But he points out that only Bitcoin has the self-sovereignty feature that makes it superior to current projects under development

Companies after all do have a financial interest to reduce signup and usage friction experienced by users. Governments are more insulated from market competition being policy monopolies. So we’ll see how things develop in various countries, but I would think of today’s stablecoins as lacking much of the self-sovereignty properties of Bitcoin, and potential future central government operated ones similarly.

Back also pointed out that if blockchain applications cannot be auditable, such as Bitcoin, they have no value.

I think blockchains provide more value if they are publicly auditable, otherwise if end users cannot tell the difference between an organization using databases behind the firewall and one using blockchains.

As Cointelegraph reported, Back recently stressed the benefits of Lightning Network, which include faster transaction confirmations and lower risk of double-spend.

Cointelegraph By Cassio Gusson , 2019-11-26 01:15:00 ,

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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.

Featured Image from Shutterstock


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

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