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Tone Weiss: Tether will inevitably cease to exist, and bitcoin-ETF will provoke speculation

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A well-known trader in the crypto community and analyst Ton Weis predicted the disappearance of the most popular stebblecoin Tether USD. He said this during a panel discussion with the former head of the Bitcoin Foundation Bruce Fenton at the Baltic Honeybadger 2018 conference in Riga.

"I do not understand why everyone was so attached to the steebles. In the end, it's the same dollar that can be sent using a technologically unstable centralized database, regardless of whether it's Ethereum, Omni Layer or Binance server. I believe that Tether will inevitably cease to exist in the future , "Weiss stressed.

He added that Tether is a very acute problem for the crypto-currency community, but few want to openly discuss it. In his opinion, it was the success of the USDT that caused the launch of new stebblecoins [in particular, from Circle , Gemini and Paxos ].

"If Tether falls, the exchanges will suffer greatly, and are likely to be forced to shift some of the losses to users, so they lose everything ," the trader said.

He also believes that the issue of providing USDT with a kind of "double-edged sword". If stebblecoin is fully provided with dollars, the US government can at any time confiscate them under the pretext of illegal financial activity.

If not, Tether holders will start selling it at any price (below $ 1), which will create a significant inflow of funds into bitcoin.

So, summed up Weiss, Tether threatens regulators and technological problems (bug or attack on Omni Layer).

Answering the question about the approval of bitcoin-ETF, the trader suggested that the SEC will still make a positive decision within two years. Nevertheless, what effect this will have on the price of the first crypto currency, it is difficult to predict.

"Remember what happened in November and December last year. The price of bitcoin increased from $ 10,000 to $ 20,000 only on speculative expectations of bitcoin futures launch and involvement of large players from Wall Street. So what? After the launch there was no volume, the market was dead. Nothing! Therefore, the price went down, because it should not have reached such high levels so quickly. It seems to me that the Bitcoin-ETF can do the same thing, " – he expressed his opinion.

As an example, he cited the launch of exchange-traded funds based on gold.

"Yes, then the price of gold soared. What do we see now? Seven-year bear market from absolute highs. I would not call this manipulation, it's just that nobody cares. It's about excessive expectations , "he said.

Earlier in an exclusive interview with BlockchainJournal, Ton Weiss explained why the bitcoin miners should not earn much.

In addition, specifically for BlockchainJournal, Weiss outlined the basics of crypto-currency trading.

Recall, in February, the trader said that in 2018 the price of bitcoin will double, reaching $ 25,000.

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How do transactions occur in the Bitcoin network? The whole cycle from start to finish

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Bitcoin (BTC) and its complexity have become a concept that many cryptocurrency users have been trying to understand since its inception. In his latest video, the famous Bitcoin enthusiast Andreas Antonopoulos and the author of the book “Mastering Bitcoin,” spoke about the life cycle of a Bitcoin transaction with a wallet from start to finish.

Antonopoulos said that since the transaction was sent from the wallet for confirmation to the Bitcoin network , the wallet creates a transaction, accumulating BTC in the user's wallet and assigning addresses. Then the user's wallet transfers the transaction information to one of the many nodes to which it is connected, from where it can be sent to “1, 2 or even 8 other nodes”.

“Then the transaction is transferred to other nodes, which can be mining nodes, e-commerce payment gateways and other options. Each of these nodes will receive a transaction from yours, and each will verify each transaction. When nodes receive transactions, they do not know whether it was created by you or was redirected, and therefore each of these transactions must be checked individually. ”

Then Antonopoulos said that if all the nodes are checked, i.e. if the payment details are correct and it is confirmed that there were no double costs in the blockchain, then the transaction information will be sent to every other node.

“As soon as a transaction reaches the mining pool , it enters the pool of unconfirmed transactions, for example, a basket in which all unconfirmed data is stored. In another way it is called mempul. The information in individual memoplahs may coincide by 99%, but there will never be complete similarity. ”

According to the expert, the memory also serves to submit the transaction to the BTC miner to add a new block, after which the race is turned on for the next block. As a rule, miners have to build a block, and then solve it with the help of Proof-of-Work , making it ultimately confirmed.

Once the unit is ready, the information will be sent mayningovomu equipment to solve the problem in this particular block, and probably after the "billion hashes" miners will block.

“As soon as PoW is resolved, the mining node will return the node back in the same way as it received. The nodes check the block on the way back, and as soon as all the nodes confirm its validity, the user's wallet will know about the confirmation of the transaction. This is the full life cycle of a transaction. ”

Publication date 04/22/2019
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At the upcoming bull rally, Bitcoin (BTC) capitalization will exceed $ 1 trillion

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Chris Berniske, who previously led cryptocurrency investments in ARK Invest and is now a partner in Placeholder, a $ 150 million asset management venture fund, said that Bitcoin's market capitalization will exceed $ 1 trillion. in the next bull market:

“Estimates of the top 10 cryptoactive assets at the end of each year give me the idea that only Bitcoin will reach $ 1 trillion. in the next bull market. ”

Recall that during the cryptocurrency boom at the end of 2017, when the price of Bitcoin reached $ 20,000, the market capitalization of the entire crypto market reached a maximum of $ 813 billion. If the capitalization of only one Bitcoin exceeds $ 1 trillion, it will trade at a rate above $ 40,000.

How can bitcoin reach a market capitalization of $ 1 trillion?

Like gold and other commodities, Bitcoin must become a recognized store of value with a developed infrastructure in order to cope with a huge influx of capital. In the near future, the development of this infrastructure may take several years.

In a Fortune interview last year for the New York Stock Exchange, Jeff Sprecher said that buying Bitcoin today is quite problematic for institutional investors.

“Bitcoin does not have a good market structure. Even for Bitcoin, different markets publish a lot of different prices. And you can pay up to 6% of the spread to exchange dollars for bitcoins, which means that bitcoin must grow by as much as 6% so that you can break even. ”

Many investors, including billionaire Mike Novograz, believe that those that lead Bitcoin to a trillion-dollar market capitalization are likely to be institutional investors. In an interview with Bloomberg, Novograz said:

“Maybe one of the fearless pension funds, one of the market leaders, will say:“ you know what? We have custodial services, Goldman Sachs participates, Bloomberg has an index by which I can track results. ” And they will buy. Following them, others will also start shopping. There will be a similar FOMO, which we have already seen among retail investors, only at the institutional level. ”

The imminent arrival of institutional investors to the cryptocurrency market was mentioned as early as 2017. According to a survey conducted by TRADE Crypto in partnership with BitGo, 94% of the 150 surveyed endowments in the US have already invested in the cryptocurrency market.

Morgan Creek Digital, the first US pension fund that invested in cryptocurrency, said that 66% of investments in cryystocurrency products of Grayscale come from institutional investors .

Publication date 04/22/2019
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Bitcoin transaction fees (BTC) increased by more than 2 times.

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What does the increase in commissions in the Bitcoin (BTC) network mean, is it a precursor of market growth or a weak digital currency?

In April, the average commissions for conducting transactions in the Bitcoin network rose again – and this is after they have stayed at a level slightly above $ 0.5 over the past six full months. Currently, according to Bitcoincharts, they average from 1 to 2 dollars, that is, at least doubled.

Why do commissions grow?

Analysts recall that a significant increase in this indicator, up to $ 50, happened in December 2017, amid a growing market. Now the market is not growing as it was then, but Bitcoin could regularly turn out to be above the level of 5.2 thousand dollars. In the cryptocurrency sphere, optimism prevails in general.

In addition to the fact that Bitcoin sets records on the number of transactions in the network, the growth of average commissions means that an increasing number of users prefer to pay more in order to receive confirmation of the transaction quickly.

However, bitcoin is not in a market vacuum. As the supporters of the fork of the Bitcoin Bitcoin Cash network pay attention, “the commission for transactions on Bitcoin is almost 1.2 thousand times higher than on the Bitcoin cache”, which is confirmed by the latest data.

Meanwhile, in both cases, if we compare it with bank card commissions, transactions with cryptocurrencies are more attractive. So, as Joel Shacleton, vice president of Canadian Gold Investment Management, said: “Once at the Johannesburg airport, I needed US dollars, and I had a card on which Canadian dollars lay. As a result, in total, I paid commissions in the amount of $ 57 and still faced a spread at exchange rates of 3.5%. ”

Thus, even if the competition in cryptocurrency is high, in general they prove to be more effective than the classical instruments of financial transactions.

Publication date 21.04.2019
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Name Price24H (%)
Bitcoin (BTC)
$5,305.00
1.08%
Ethereum (ETH)
$171.27
2.02%
XRP (XRP)
$0.326198
2.08%
Bitcoin Cash (BCH)
$293.31
2.96%
EOS (EOS)
$5.21
1.34%
Stellar (XLM)
$0.113714
0.54%
Litecoin (LTC)
$77.20
2.82%
Cardano (ADA)
$0.075572
4.26%
Tether (USDT)
$1.00
-0.07%
Monero (XMR)
$69.84
3.17%
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