Bitcoin – Volatility is back

Bitcoin – Volatility is back
Bitcoin – Volatility is back

Volatility is back. The old sea serpent Mt. Gox is making waves as we learn at the same time that El Salvador is going to build Bitcoin City and that the great helmsman of the FED is building up for 4 more years.

Bitcoin City et 300 000 BTC

It was the event of the weekend. The Salvadoran president took advantage of LaBitConf, held this year in El Salvador, to announce Bitcoin City. Our very interesting summary article of the conference here.

All the electricity will come from the geothermal energy of the Conchagua volcano at the foot of which the city as well as an industry of mining of BTC will be built. The goal is to attract the bitcoin industry by making this city a tax haven. No tax will be collected apart from a 10% VAT.

This modern-day Alexandria will be financed by the issuance of “ Bitcoin bonds“. These loans are so called because half of the money raised will finance the purchase of BTC. El Salvador’s bet is that the appreciation of bitcoin will ultimately make it possible to finance itself for free. Indeed, it would be enough for bitcoin to appreciate by 200% for the loan to cost nothing (in theory, because the capital gain linked to the appreciation of BTC will in reality be shared between the State of El Salvador and the investors).

Unfortunately, BTC / USD didn’t really welcome the news. And yet this city is expected to cost $ 18 billion, which means El Salvador plans to buy around 300,000 BTC over the next few months. This still represents the equivalent of 333 days of mining

All this did not go unnoticed by Uncle Sam who made it known via his account manager Jean Manes that relations with El Salvador are “on hold”. This hostile posture comes on top of that of Hillary Clinton who said last week that bitcoin is ” a threat to the dollar’s international reserve currency status “. Do not miss this article in which we returned the courtesy to this emissary of the Deep State American.

Mt. Gox FUD

Created in 2010 by the French Mark Karpelès in Japan, Mt. Gox was one of the first major exchanges to buy and sell BTC. The exchange closed after a hack in February 2014. At the time, it managed 70% of the volume of transactions in BTC. More than 850,000 BTC were stolen, 80% of which belonged to its customers.

7 years later, Japanese justice is preparing to redistribute the BTC that has not been stolen. That is 141,696 BTC (about $ 8 billion). BCHs will also be returned, for a total of approximately $ 435 million.

The aggrieved customers should only recover a fifth of their BTC but let us emphasize that 1 BTC was worth only 550 dollars in February 2014. 1 BTC is worth 100 times more today… In other words, this hack was a blessing since most of the customers of Mt. Gox would probably never have kept these bitcoins for this long.

Nobuaki Kobayashi, the appointed representative of the late Mt. Gox exchange, said on November 20 that the funds will not be released for at least a month. Since then, a cap of lead has been hovering above BTC / USD.

It seems certain that we will soon observe a dumpsince Bloomberg reports that the trustee Japanese guardian of BTC asked investors to provide bank details. This suggests that the payouts will be in fiat currency and that all 141,696 BTC will be sold soon.

Nothing is clear on this subject. Anyway, the big question is how much money will be immediately reinvested in BTC and how much will be spent after so many years of waiting …

Jerome Powell to stay at the FED

Joe Biden has reappointed J. Powell as head of the United States Federal Reserve for another 4 years. He has been on the board of the Fed for almost 10 years now, without ever voting against the tide. We are leaving for a round when inflation currently exceeds 6.2% per year.

More interestingly, Lael Brainard has been appointed vice-president. The latter is Madame CBDC of the Fed. She had said this summer that he was ” urgent »To create a« Digital Dollar » , arguing in particular that it would be useful to pay free checks to Americans … By the way, the first “stimulus checkOf $ 1,200 sent by the Trump administration is now worth around $ 10,000.

The “Digital DollarWill be a new nail in the coffin of fundamental freedoms. We warmly invite you to read this article to understand what stands out. To sum up, the CBDC will comein finereplace cash. All of our transactions will be tracked. Worse yet, our savings will suffer from a negative rate. It will even be confiscated or blocked in order to control inflation.

We will also have to expect one day that our purchases will be refused if they are too carbon intensive. Ultimately, probably sooner than you might think, this worse-than-fiat currency will become part of the totalitarian social credit system already in place in Communist China.

Not surprisingly, bitcoin immediately appreciated by $ 2,000 following J. Powell’s re-appointment.

« Yourcsocial redit may soon depend on your search history »

The Bundesbank wants to stop the printing press

Speaking of central banker, note that Jens Weidmann, governor of the Bundesbank (he will leave office in December, but will remain president of the bank for international settlements), opposed Christine Lagarde: “Given the considerable uncertainty surrounding the outlook for inflation, monetary policy should not remain expansionary for too long. »

His comments came just hours after Christine Lagarde said at the same event that he had to stay “patient»And not to tighten policy prematurely despite galloping inflation in the euro zone which is reaching 4.2% per year.

The Buba believes that inflation will soon reach 6% in Germany while the ECB believes that inflation in the euro area has already reached its highest peak (4.2%). The central bank of the Netherlands, a great ally of the German central bank, is also concerned that inflation will stay high longer than expected:

« Factors such as bottlenecks in the supply chain, rising prices for energy as well as other commodities […], now appear likely to persist longer than expected», Declared the bank which wonders if this inflation will be really temporary.

According to the IMF, things are not going to get any better on the supply chain side:

The lower the index, the longer the delivery times. This indicates the mess in global logistics and therefore high transport prices which push inflation up.

Follow closely the soap opera of the ECB, because the envelope of 1,850 billion of the PEPP will be empty around the month of January. It is quite possible that the ECB will announce its intention to print hundreds of billions of additional euros in December. ponzi.

The ECB had announced that inflation would be “transient“. It also provided for “2 weeks to flatten the curve– 88 weeks ago. Results :

The Dollar Tree store only sold $ 1 items. It will now be $ 1.25. More dramatically, the price of real estate has also increased by 25% in one year in the United States …

In bulk

Let’s end with some not-so-trivial news:

Mercado Libre, the equivalent of Amazon in Brazil, now offers to invest in bitcoin via its Mercado Pago payment app.

CoinDesk reports that the OCC (Office of the Comptroller of the Currency, the Office of the Comptroller of the United States), the FDIC and the Fed will soon release clearer guidance on how banks and cryptocurrencies can interact.

NFL player Odell Beckham will now be paid entirely in BTC. A lot of money is at stake if other players follow his lead. The top 5 NFL players alone together make over $ 130 million a year.

Finally, Michael Saylor reiterated that the bitcoin network will eventually be worth $ 100,000 billion. On that day, a single bitcoin will be worth over $ 5.3 million. That is 100 times more than today …

Nicolas Teterel

Journalist / Bitcoin, geopolitics, economy, energy, climate

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