A Cointelegraph Hodler's Digest video (June 18, 2018) hosted by Molly Jane covering several cryptocurrency developments: Steve Bannon's reported interest in a politically themed 'alt-right' coin; a sharp intraday bitcoin price drop to below $6,300 and discussion of causes; an interview excerpt with Tom Lee emphasizing long-term bullish fundamentals; critiques of Ripple/XRP centralization; Wells Fargo's ban on crypto purchases via credit cards; and differing regulatory views from Germany and the U.S., including a proposed study on crypto use in sex trafficking.
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Hello, crypto fans. This is Molly Jane from cointelegraph. Trump and Kim met this week, but Donald expertly negotiated to lift some sanctions for the great leader in exchange for some vague promises.
Maga. Now Trump's ousted chief strategist Voldemort, AKA Steve Bannon, wants to get into bitcoin. Apparently he's been meeting with people in the crypto space for months, but doesn't want to give too much away in case his particular brand of white nationalism is a bad look. For a budding ico, it's a head scratcher for some. For others, it makes total sense. Like crypto advisor Colin Platt, it almost seems like a natural progression. For a man who gained prominence by shoveling out unfounded conspiracies to now shilling complex technology and financial instruments to an unsophisticated investing public. Earlier in the year, Bannon joked about launching a deplorables coin, a reference to what Hillary Clinton labeled Trump supporters. We've already seen the rise of altcoins. Now get ready for the alt right coin.
It's time for your weekly Hodler's Digest. How would you feel losing $500 in just one hour? Well, that's what happened to bitcoin this week. It dropped to below 6,300 with dramatic losses across all altcoins. Lows like this haven't been seen since February.
Everyone in mainstream media, from Bloomberg to the Guardian, pointed the finger at a tiny South Korean exchange, CoinRails HAC. However, this is unlikely as it trades just 2.5 million worth of crypto a day, or just 0.02% of the total daily $16 billion trading volume. The most credible reason is that bitcoin fell because people oversold and demand dipped, not because of a minor hack.
We asked Tom Lee himself what he thinks about the market fall.
You know, every market has cycles. I mean, so we, you know, we've followed equity markets for a long time. And even if the, you know, in the six, there are bearish factors at work, and in crypto there certainly are some bearish technicals at work, it doesn't really change the long term structural story. And, you know, I think the long term story in bitcoin and crypto is quite bullish because one, it's really reflecting the intersection today of technology and banking, right? As money becomes increasingly digital, you need to wait, you need to create forms of authentic trust. And I think that's what the blockchain is accomplishing. And I think bitcoin has proven itself as a great store of value. But it even as bitcoin's a great story value doesn't mean that sellers can't cause prices to fall. And I think right now there's more selling than buying.
In an interview this week, CEO of Ripple, Brad Garlinghouse spoke about this unreported story where apparently four miners in China control 50% of all Bitcoin out there.
If this turns out to be true.
It would mean that China essentially controls bitcoin.
Garlinghouse went on to tout Ripple's XRP.
As the best digital asset for settlement, and he doesn't believe Block will disrupt banks. Garlinghouse's condemnation of Chinese miners in bitcoin is somewhat hypocritical, as Ripple reportedly controls.
Up to 60% of XRP.
What's more, in February, trading platform Bitmex released a report detailing the structure of Ripple's consensus protocol, suggesting it is more of a centralized cryptocurrency kind of an oxymoron.
Wells Fargo is no stranger to disgraceful acts.
Quelle suprise, a disgraced bank Axe disgracefully, America's third largest bank, Wells Fargo, has banned crypto purchases with its credit card. Voila.
We're doing this in order to be.
Consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. The decision is in line with the overall industry, but the bank also noted we will continue to evaluate the issue as the market evolves. Over the weekend, bitcoin had its biggest intraday fall since the February 2013, falling 13%. Wells Fargo is just looking out for its customers, right guys?
Remember 2016 when they created fake user accounts, charged users unfair mortgage fees, and added unnecessary car insurance. Real heroes of the common man prompting this exchange in the U.S. senate.
Best you are incompetent.
At worst you are complicit.
And either way, you should be fire.
Are you a Beyonce fan? If so, CNBC's Brian Kelly has some bad news for you. But to my bitcoin fans, he has some good news.
It's probably good that we've got some of the speculative froth out of here, but there's still more Google searches than Beyonce. And bitcoin polls like Tom Lee point out that Google searches are not a leading indicator of bitcoin price. No word as of yet on his opinion of the former Destiny's Child lead singer. Rumor has it he is more of a Michelle kind of guy. Although you won't find Beyonce on an immutable ledger, she is certainly unmutable on stage. So for a short time during Coachella, she triumphed over Bitcoin in terms of Google searches.
Beyonce's value is based on scarcity, just like Bitcoin's. The downside to Beyonce, however, is that she is not divisible. And unlike some of her former lovers, Bitcoin is irreplaceable.
Banks will fall, governments will crumble, and from the ashes Bitcoin will rise like a phoenix and cure all the ills of the world. No more suffering, no more pain, no more fud.
Mmm, maybe not, says Germany. The German government doesn't believe that cryptocurrencies pose any threat to financial stability, but they do think that regulation is necessary.
The volume of crypto asset transactions is too low compared to the size of the global financial system to pose a serious threat to the current financial system. Currently, a national risk analysis to be completed next year is in the works. It would identify any need for action on money laundering and illicit activity using crypto. However, not all German authorities agree. In an interview, Felix Hofeld, the chief of Germany's financial watchdog, said blockchain technology is revolutionary and its applications could turn the entire financial sector upside down. These apps are not only safe from failures of individual computers or providers, they also promote the development of a blockchain economy.
The US has proposed a bill to conduct a study on how cryptocurrencies are used in sex trafficking. What's next? Trying to connect Bitcoin to the illegal drug trade?
Members of Congress and government officials around the world have been skeptical, to say the least, regarding crypto, expressing fears that it funds fraud, drugs and terrorism. Several congressmen have said crypto would get no special treatment and needs to be compliant with the critical anti money laundering and know your customer standards. However, Tom Emmer of the Congressional Blockchain Caucus said that the US should be the home to this invention and should embrace these new technologies. Someone we covered earlier in this year Theodora, a Financial dominatrix I am Theodora.
A financial dominatrix.
Spoke about how difficult it is for sex workers to get bank accounts or mortgages, and thus Bitcoin allows them to become legitimate. I hope my story serves as an eye opener and to challenge the preconceived idea that sex workers can't be accomplished.
Intelligent business women Sex trafficking is clearly a serious problem, but cryptocurrencies could help legitimize law abiding sex workers. Would you rather meet Beyonce or have one bitcoin? Comment your answers below and whether you're a hodler or a no coiner, subscribe to our channel Cointelegraph and we'll see you next week.
