On Dec. 15, 2018, the cryptocurrency community had a very tough day when the Bitcoin price dropped below $3,200, the level that seemed to be part of itshistory just one year ago. The market turned into a bloodbath after the top crypto dropped to its lowest point since August 2017.

Bitcoin bulls such as Fundstrat's Tom Lee and Galaxy Digital CEO Mike Novogratz had to eat their words after making unreasonably high predictions. Meanwhile, leading financial outlet Bloomberg wondered whether Bitcoin would ever recover after such a dramatic fall.

The critics of Bitcoin had a field day on Twitter but not all bulls ended up being purged. Some saw this as a decent opportunity to buy before the next bull cycle.

Those who called for a drop to the $2,000 level ended up on the wrong side of history given that Dec. 15 market the bottom of the 2018 bear market. In Q2, Bitcoin kicked off another monstrous rally that ultimately sent its price above $13,700 at the end of June.

The Bitcoin price has endured hasa series of painful corrections since reaching its yearly peak, sliding back to the $7,100. However, to put this into perspective, the leading cryptocurrency is still up by a whopping 120 percent year-over-year, something that's unheard of in traditional markets. Bitcoin has so far outperformed stocks, gold, oil and pretty much every other asset in 2019. However, as investor Alistair Milne puts it,the crypto Twitter remains "miserable" despite Bitcoin's price surge this year.

With the Bitcoin halvening just around the corner, 2020 has every chance to be another explosive year for the top cryptocurrency.

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Bitcoin Price Hit Its Absolute Bottom One Year Ago. It's Now Up 120 Percent - U.Today

Tether, the stablecoin operator behind USDT, has funded the development of the new version of Bitcoin (BTC) tokenization layer Omni.

In a press release shared with Cointelegraph on Dec. 15, the companies announce the release of Omni Core 0.7.0, the development of which was sponsored by Tether. The new version reportedly enhances network performance and fixes locking issues and Remote Procedure Calls.

The Omni protocol is a system running on the Bitcoin network that allows the creation of tokens on what is widely believed to be a secure network. Omni is also the platform that hosted the first USDT tokens. The official website further explains how the technology makes use of the Bitcoin blockchain:

Omni Core is an enhanced Bitcoin Core that provides all the features of Bitcoin as well as advanced Omni Layer features.

More interestingly, Omni Core 0.7.0 enables the building of an on-chain decentralized exchange. The new version of the Omni protocol allows users to trade any on-chain asset for Bitcoin. Tether CTO Paolo Ardoino commented:

As Bitcoin is the first blockchain that Tether used, Omni Core is highly valued and demonstrates good levels of security. [...] It is important to note that Tether is underpinned by diversity in different blockchains, of which Omni Core has proven to be an important component.

As Cointelegraph reported, in March Tether launched USDT tokens on the Tron blockchain. As of late October, nearly 12% of all the stablecoins supply was moved on the new chain. More recently, in July, Tether also announced the launch of the USDT stablecoin on its fifth blockchain, Algorand.

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Tether Sponsors New Version of Bitcoin Tokenization Layer Omni - Cointelegraph

This post is part of CoinDesks 2019 Year in Review, a collection of 100 op-eds, interviews and takes on the state of blockchain and the world. Alex Gladstein is Chief Strategy Officer at the Human Rights Foundation and Vice President of Strategy for the Oslo Freedom Forum since its inception in 2009.

We are in an era of gradual global bitcoin awakening. The technology has proven robust and resistant to attacks. Over time, the price has continued to climb from pennies to thousands of dollars. Brilliant entrepreneurs and scientists are improving the protocols usability, privacy, decentralization and network resilience. Still, its important to remember that only a very tiny percentage of people on this planet understand its value as a tool of freedom.

In my work at the Human Rights Foundation, I have the privilege to meet hundreds of dissidents, activists, and journalists from difficult political environments. To date, very few have meaningfully used bitcoin or started to realize its power as a financial escape valve and parallel economy. That ratio is starting to shift, but only in what seems like slow motion.

Related: How DeFi Goes Mainstream in 2020: Focus on Usability

Even as the bitcoin network pushes into its 12th year of existence, mainstream consumers and corporate users remain stubbornly closed-minded towards the technology. Well-read, intelligent business leaders, politicians, philanthropists, and media parrot the same talking points: bitcoin is too volatile; its only for terrorists and drug dealers; its pure speculation and has no actual value; its an environmental disaster; and, most recently, that it wont survive the rise of quantum computing. Unfortunately, these arguments (which I tried to debunk in an essay earlier this year) have trickled down to the average person. This collective anti-narrative is strong and prevents greater numbers of people from developing curiosity in bitcoin, from learning about bitcoin, and from using bitcoin.

Our worlds growing financial perils are much-discussed: rampant inflation, rising national debts, fiat devaluation, financial surveillance, and a fear of increasing corporate and government control over our money as cash disappears. You cant go a day without reading about some aspect of global economic malaise in the front pages of your favorite newspaper or website. There are many pundits who claim to know why the world is going in this direction but very few who understand that bitcoin is a way out. Many of those who do learn tend to do so out of necessity, not out of luxury.

For example: independent media outlets and civil society organizations in Hong Kong are starting to accept bitcoin donations because their banking accounts are being monitored and controlled; Venezuelans, Iranians, and Palestinians are using bitcoin to do cross-border payments and break through financial controls and sanctions; Chinese are using bitcoin to convert their wealth into an confiscation-resistant store of value; Argentines, Turks, and Lebanese are using bitcoin to opt out of collapsing fiat systems; Syrians and Nigerians are working in the software industry and earning money in bitcoin and using local peer to peer markets to withdraw into fiat to buy goods when necessary; just to name a few. As time goes on, more and more people are realizing that bitcoin can be a way for them to achieve financial sovereignty in an era of increasing instability and surveillance.

As we head into 2020, what are bitcoins prospects as tool for freedom? Ironically, even in the most democratic countries, bitcoin users need to worry about privacy. American and European governments are just as likely as authoritarian regimes to hire chain analysis companies to track bitcoin user activity. Regardless of your geographic location, youll want to see base-layer privacy improvements; wider usage of mixers and other ways to obfuscate transactions; and bigger Lightning Network capacity. If successful, these will allow a growing number bitcoin users to operate without fear of reprisal. As more governments wisen up and turn to chain analysis tools, individuals need ways to protect themselves.

Related: In 2019, Students Demanded Blockchain Education. In 2020, Its Coming

Story continues

Beyond privacy, the ability for individuals to buy bitcoin with fiat and convert bitcoin into fiat is a big challenge. In the past few years we have seen an incredible increase in local liquidity, where its now fairly easy to buy or sell bitcoin in most major urban areas around the world, even inside dictatorships and countries in conflict. If you have bitcoin in Tehran, Beijing, Aleppo, Caracas, or even Gaza, with a bit of research youll be able to find someone who will sell you fiat in return. But this infrastructure needs to continue to improve if bitcoin is to live up to its true promise of a borderless, permissionless, censorship-resistant store of value and money for everyone, especially as governments increasingly crack down on exchanges and on- and off-ramps.

As we look forward to 2020, bitcoin as is is working as Satoshi intended and is already powerful enough to materially help hundreds of millions of people facing financial repression. The problem is, they just dont know about it yet. It is incumbent upon those in the Bitcoin community to continue to find ways to share knowledge about this remarkable invention with others. Yes, we face technical, infrastructural, and legal challenges. But the biggest is just a matter of more effectively spreading the word.

For 2020, rather than spending time talking to others already in the bitcoin space, make it a goal to talk to new communities: entrepreneurs, activists, journalists, and creatives in difficult political and economic environments. If they face financial obstacles, theyll see the value in bitcoin, and spread it through their own networks. This could very well be a better use of your time than giving your usual talk to the same old crowd.

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Dissidents and Activists Have a lot to Gain From Bitcoin, if Only They Knew It - Yahoo Finance

Bitcoin has achieved market capitalization close to some of the biggest corporations, ranging between $100 and $300 billion. But taken in proportion to the size of the worlds financial system, BTC may have a different valuation.

The bloated worldwide debt, fueled by extreme quantitative easing in the last decade, will reach $255 trillion by the end of the year, reported Reuters. The analysis of the Institute of International Finance estimates each person on the planet would carry $32,500 in debt.

With few signs of slowdown in the pace of debt accumulation, we estimate that global debt will surpass $255 trillion this year, the IIF said in a report.

Due to bitcoins limited supply, it is possible to chart the size of global debt-fueled finance in BTC terms. One bitcoin (as per current aggregated supply) will have to be worth over $12 million to describe the size of the worldwide debt.

The growth of debt comes from governments and government companies, as well as non-financial businesses. A debt bonanza analysis by Bank of America Merill Lynch shows that government debt has ballooned by $30 trillion, companies added $25 trillion, households $9 trillion and banks $2 trillion. All of that additional debt has been accrued since the bankruptcy of Lehman Brothers in the fall of 2008.

Instead of entering a decade of stagnation, central banks poured in liquidity to boost all sectors, leading to significant asset valuation growth. In spite of that, the financial sector carries debt which is 240% of the worlds gross domestic product.

It is somewhat difficult to reconcile the idea of sound money, which BTC aims to be, with a debt-fueled economy. But in a way, the current market price of bitcoin reflects the fact that not all funds in circulation are sound, and that debt-based economic activity has been the chief driver of asset valuations in the past decade.

If bitcoins value was matched to real economic output, it would be about 60% lower, at around $4 million per BTC. But the presence of debt skews nominal prices.

This potential BTC price has far outpaced the historical highs of the coin. Based solely on the crypto market, bitcoin has peaked around $20,000 in Korea, and at $19,600 in other markets. Some predictions see bitcoin price going to $50,000 again. Experts admit BTC would have reached higher bids if the futures markets did not start swaying the price as well.

What do you think about the relationship of bitcoin to worldwide debt? Share your thoughts in the comments section below!

Image via Shutterstock

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Global Debt to be Worth $12 Million per Bitcoin by Year End - Bitcoinist

Conservative commentator Mike Cernovichrecently became involved in a dramatic civil war between different Bitcoin forks.

In a recent Twitter thread where he promises to share his take on any random subject, Cernovich says that Bitcoin SVcould be an outright scam or the real Bitcoin, something that self-proclaimed Satoshi Craig Wright desperately wants you to believe.

Cernovich's thread got instantly swarmed with tweets from the BSV community with some of them suggesting that theInfoWars host should consider interviewing Wright on his podcast.

Bitcoin Satoshi Vision (BSV) was created as a result of a chain split from Bitcoin Cash that took place on Nov. 15, 2018. The main reason behind their loud divorce was the size of the Bitcoin block -- while the Bitcoin Cash camp, which is helmed by Bitcoin Jesus "Roger Ver," wanted to maintain the 32 MB size, Wright and gambling tycoon Calvin Ayre decided to bump up the limit to 128 MB.

The BSV community believes that Wright (aka Satoshi) intended to gradually increase the size of the block to increase Bitcoin's scalability. While big blocks can store more transactions, they also make the Bitcoin network more decentralized, which is why the initiative vehemently opposed by the Bitcoin Core camp that wants to maintain a maximum size of 2 MB.

Cernovich himself seems to be a Bitcoin proponent. Back in July, he opined that Trump criticizing crypto was actually a positive thing for the top coin because he actually attacked Facebook's Libra.

2019 turned out to be extremely turbulent for BSV. It got delisted from Binance and Kraken after Wright's legal battles with non-believers, which made the coin's price plunge by more than 50 percent. Shortly after that, the BSV was pushed back to the top 10 after a few suspicious pumps that were most likely caused by fake news.

While Bitcoin processes around 303,000 transactions on a daily basis, a little-known weather app accountsfor pretty much all transactions on the Bitcoin SV network.

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Bitcoin SV Could Be Scam or Real Bitcoin: Conservative Pundit Mike Cernovich - U.Today

The worlds no. 1 digital coin, Bitcoin, is seen fading its tepid recovery from 2.5-week lows of 7,007, as we head towards the weekly closing. However, the second most traded cryptocurrency, Ethereum and Ripple, both cling to minor recovery gains so far this Sunday but the further upside lacks momentum, as sellers continue to lurk. The total market capitalization of the top 20 cryptocurrencies now stands at $195.25 billion, as cited by CoinMarketCap.

The top three coins are seen resuming last weeks downtrend into a fresh week ahead, with FXStreets Confluence Detector tool enabling to highlight key supports and resistances for better trading decisions.

As explained here, Bitcoinfailed to sustain it recovery near the $ 7,200 mark, as stiff resistances are aligned there, with the confluence of the previous high on the 4-hour chart and 23.6% Fibonacci Retracement (Fib) level of the weekly price action.

However, if the bulls manage to take out the last, the next resistance near the 7,265 region, the 23.6% Fib of the monthly price action. A break above which will expose the 10-day Simple Moving Average (DMA) at 7,332.

Given that the bears have returned, a test of the 2.5-week lows at 7,007 is back on sight. Note that the multi-week lows also intersect with the Pivot Point 1 Week S1 and Bollinger Band 1D lower, making it a critical demand zone. Should this support be breached, it is likely to accelerate the downside momentum towards 6,750 Pivot Point 1 Week S2.

Ethereumhas pared the recovery gains, as a pack of resistances just ahead of the 144 handle restricts its every upside attempt. The resistance zone is a confluence of the Fib 38.2% 1W, previous high on the 4-hour chart and Pivot Point 1D R1.

A sustained break above the last will intensify the recovery momentum towards the next resistance aligned near 147.50, where the 23.6% 1M and 61.8% 1W coincide.

To the downside, the earlier support around 143, the intersection of the 38.2% Fib 1D and previous low on the 15-minutes sticks, is already breached, opening floors for further declines towards the 140 handle the previous week low.

Rippleis seen consolidating around 0.2170 levels, as the immediate upside remains capped near the 0.2180 region (38.2% Fib 1D/ 5-HMA).

A break above that level, the coin is likely to test the days high at 0.2197 beyond which the 0.2220-0.2225 supply zone will grab buyers attention. That level is the key confluence of the 200-HMA, 38.2% Fib 1W and 100 4-hour SMA.

On the flip side, the next support is directly seen near 0.2157, which is the previous week low. Sellers are likely to aim for the minor support of the Pivot Point 1W S1 at 0.2135 if the bearish momentum picks up pace.

See all thecryptocurrency technical levels.

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Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Sell the rallies key theme ahead? - FXStreet

On major crypto exchanges like BitMEX, the bitcoin price briefly dipped below $7,000 for the first time since November 28.

Right before the daily close on December 14, the bitcoin price hit $6,994 on BitMEX and dropped to as low as $7,009 on Binance.

Prior to the drop, when the bitcoin price was hovering at around $7,200, technical analysts anticipated a rebound to key resistance levels.

The drop of the bitcoin price to below the $7,000 mark has put the dominant cryptocurrency vulnerable to a deeper pullback in the short-term.

Earlier this week, cryptocurrency trader Josh Rager said that while bitcoin is likely to stagnate in the imminent future, there are three scenarios in which the downside movement plays out.

Rather than pushing up one last time before moving down to the $6,000s, the bitcoin price essentially dropped straight down to the highly tested support level.

The low volume in the crypto exchange market as well as the double test of the mid-$6,000 support level indicates that a large move down is likely to be imminent.

Throughout the week, John Bollinger, the legendary creator of the Bollinger Bands, said that the technical indicator suggests a big move in the crypto market is coming.

Most crypto currencies are at or near Bollinger Band Squeeze levels. Time to pay attention, he said.

Whether that move is a relief rally to the upside to test stacked shorts on cryptocurrency exchanges or a continuous move down to lower level supports was uncertain.

If the bitcoin price settles below $7,000, the big move that has been anticipated by many traders and technical indicators is highly likely to be a sharp pullback.

DonAlt, for instance, said that he expects to see bitcoin in the $6,200 to $6,400 range in the short-term, a range that has plenty of trading activity on the larger time frames.

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Bitcoin Dips Below $7,000, is a Sharp Correction to $6000s Unavoidable? - U.Today

Bitcoin Cash ABC

Bitcoin Cash ABC slid by 2.22% on Saturday. Reversing a 1.88% gain from Friday, Bitcoin Cash ABC ended the day at $205.92.

A bullish start to the day saw Bitcoin Cash ABC rally to an early morning intraday high $212.75 before hitting reverse.

Falling short of the first major resistance level at $213.94, Bitcoin Cash ABC slid to a late intraday low $205.09.

The sell-off saw Bitcoin Cash ABC fall through the first major support level at $207.01.

At the time of writing, Bitcoin Cash ABC was down by 0.40% to $205.09. Bitcoin Cash ABC eased back from Saturdays end of the day $205.92.

Bitcoin Cash ABC left the major support and resistance levels untested early on.

A move through to $208 levels would support a run at the first major resistance level at $210.75.

Support from the broader market would be needed, however, for Bitcoin to break back through to $210 levels.

Barring a broad-based crypto rally, the first major resistance level would likely pin Bitcoin Cash ABC back on the day.

Failure to move through to $208 levels could see Bitcoin Cash ABC struggle through the day.

A fall back through to $204 levels would bring the first major support level at $203.09 into play.

Barring a crypto meltdown, however, Bitcoin Cash ABC should steer clear of sub-$200 levels. The second major support level at $200.26 should limit any downside.

Major Support Level: $203.09

Major Resistance Level: $210.75

23.6% FIB Retracement Level: $269

38% FIB Retracement Level: $316

62% FIB Retracement Level: $393

EOS slid by 2.04% on Saturday. Reversing a 1.4% gain from Friday, EOS ended the day at $2.5783.

A bullish start to the day saw EOS rise to an early morning intraday high $2.6389 before hitting reverse.

Falling short of the first major resistance level at $2.6628, EOS slid to a late afternoon intraday low $2.5570.

The reversal saw EOS fall through the first major support level at $2.5908 before finding support.

In spite of a partial recovery late on, however, EOS failed to break back through the first major support level.

At the time of writing, EOS was down by 0.43% to $2.5672. A bearish start to the day saw EOS slide from an early morning high $2.5791 to an early morning low $2.5464.

In spite of the early moves, however, EOS left the major support and resistance levels untested.

Story continues

EOS would need to move through to $2.59 levels to support a run at the first major resistance level at $2.6256.

The broader market would need to provide support, however, for EOS to break back through to $2.60 levels.

Barring a broad-based crypto rebound, resistance at $2.60 would likely pin EOS back on the day.

Failure to move through to $2.59 levels could see EOS take another slide on the day.

A fall back through the early morning low $2.5464 would bring the first major support level at $2.5437 into play.

Barring a crypto meltdown, however, EOS should steer well clear of the second major support level at $2.5094.

Major Support Level: $2.5437

Major Resistance Level: $2.6256

23.6% FIB Retracement Level: $6.62

38% FIB Retracement Level: $9.76

62% FIB Retracement Level: $14.82

Ethereum fell by 2.05% on Saturday. Following a flat Friday, Ethereum ended the day at $141.73.

Tracking the broader market, Ethereum rose to an early morning intraday high $145.03 before hitting reverse.

Falling short of the first major resistance level at $145.63, Ethereum slid to a late afternoon intraday low $141.11.

Ethereum fell through the first major support level at $143.26 and the second major support level at $141.83.

A recovery to $142 levels was brief, with Ethereum falling back through the second major support level in the final hour.

At the time of writing, Ethereum was down by 0.54% to $140.97. A bearish start to the day saw Ethereum slide from an early morning high $141.90 to a low $139.80.

Steering clear of the major resistance levels, Ethereum fell through the first major support level at $140.22 before finding support.

Ethereum would need to move through to $142.60 level to support a run at the first major resistance level at $144.14.

Support from the broader market will be needed, however, for Ethereum to break back through to $143 levels.

Barring a broad-based crypto rally on the day, the first major resistance level would likely pin Ethereum back from $145 levels.

Failure to move through to $142.60 levels could see Ethereum take another hit on the day.

A fall back through the first major support level at $140.22 would bring the second major support level at $138.70 into play.

Barring an extended sell-off, however, Ethereum should steer clear of sub-$139 levels on the day.

Major Support Level: $140.22

Major Resistance Level: $144.14

23.6% FIB Retracement Level: $257

38.2% FIB Retracement Level: $367

62% FIB Retracement Level: $543

Please let us know what you think in the comments below.

Thanks, Bob

This article was originally posted on FX Empire

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Bitcoin Cash ABC, EOS and Ethereum Daily Tech Analysis 15/12/19 - Yahoo Finance

Bitcoins creation story borders on the mythological. A life-changing technology created by the pseudonymous, anonymous genius Satoshi Nakamoto, who then vanished out of sight.

With that in mind, is it any surprise that much of the bitcoin hopium continues to be fuelled by well-meaning fantasy?

Here are five Bitcoin myths that just wont die

Many people believe bitcoin will trigger a redistribution of wealth the likes of which the world has never seen. But maybe the reason the world has never seen such a thing is because theres no good reason for it to happen.

Bitcoiners would like to believe the reason much of the world still lives in poverty is due to a simple lack of the technical apparatus required to reverse it. The implication here is that were just as noble and decent as we need to be, but dont have the technology to put our decency into action.

The Pareto Distribution describes the tendency for natural inequality among the organisms on our planet. Just 20% of the trees in a forest gobble up 80% of the available nutrients from the surrounding earth. Likewise, 20% of the pea-pods in a garden produce 80% of the peas. The most desirable 20% of the men sleep with 80% of the women.

Numerous studies have shown that a majority of the worlds bitcoin is already concentrated in the hands of the few. This should not be a surprise.

The price of Bitcoin has become the gravitational center for the whole of what we call blockchain or cryptocurrency. Yet, if bitcoin really is to be the nature-correcting mechanism its proponents claim, its price relative to the U.S. dollar should be irrelevant.

The reason so much focus is given to the price of bitcoin is because, in truth, thats all anyone is really interested about. Bitcoins biggest use case to date has been its potential to increase (or decrease) the dollar holdings of its owners.

Now, the myth that price matters has become a reality. Enough capital has been staked on top of bitcoins future success that one false move could topple the entire enterprise. If bitcoins price retraces much further, the privilege of producing it will fall into even fewer hands.

Which leads to the next point

Most independent bitcoin miners were priced out of the game years ago. A single province in China is now home to 54% of the bitcoin mining hashpower. Only the largest mining firms were able to eat the losses incurred during bitcoins 2018 decline without going under.

Bitcoin was supposed to correct for human nature, but already we find ourselves in the humble position of hoping our Chinese overlords are benevolent.

Even the people dont believe bitcoin is for the people. Look at how many column inches are given daily to the fabled institutions and their Wall Street billionaires, who give us endless hope in the form of optimistic prognostications.

The technology underlying bitcoin truly is new, exciting and wrought with possibility. Its decentralized and self-governing nature gives it a robustness that other large digital networks dont have.

Crypto personality Nic Carter wrote in A most peaceful revolution, that crypto cannot be stopped:

Cryptocurrency, despite the earnest protests of some of its lily-livered adherents, remains manifestly independent and ultimately hostile to the State. It cannot be regulated, captured, or rendered compliant.

Carter later qualified the comment, adding:

cannot being a teleological statement, not a statement of possibility. of course, its possible that it gets neutered. but if it does, it loses its essence, its (sic) raison dtre.

In other words if it fails then it wasnt bitcoin to begin with.

The same ideological thinking was present at the birth of the internet. Given how that experiment turned out, can we agree that the essence of the internet is lost? Did it exist to begin with?

Ultimately, one need only look within Chinas borders to find a way in which bitcoin can be neutered. The Chinese government is unlikely to hasten the demise of its own sovereign currency any time soon. To assume they wont interfere in bitcoin, or havent already, would be folly.

New entrants to the cryptocurrency space often adopt the same helplessly saccharine tone about its potential to change the world.

Be careful what you wish for. The world is already changing thanks to the arrival of bitcoin, and its not overly apparent that its for the better.

Bitcoiners often proclaim that they dont want to take part in funding illegal wars by associating with the American dollar. Is that to say that funding human trafficking and drug-running is better?

No doubt most crime is still committed using cold, hard cash. But in the search for more operating funds, would you suggest that shady government entities havent already used cryptocurrency to boost their slush-funds? Why wouldnt they? Why couldnt they? Maybe weve been funding wars all along

Privacy isnt just something we should want for ourselves, its something we shouldnt want for those in power. Whether your favorite billionaire villains happen to be the Rothschilds or the Koch brothers they can use cryptocurrency too, and theyll be better at it than you.

This article was edited by Sam Bourgi.

Last modified: December 13, 2019 18:44 UTC

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Bitcoin: 5 Arrogant Myths That Just Wont Die (But Should!) - CCN.com

Trace Mayer the advocate for the Proof of Keys [PoK] movement appeared on Peter McCormacks recent podcast to talk about the importance of investors holding their private keys. Mayer noted of his first tweet about the PoK movement was on December 9, 2018, and after a few days after which Coinbase informed the users of testing the cold storage for which it moved around 850,000 bitcoins. This was the first time Coinbase made an announcement like that and Mayer and McCormack, unclear of the intention behind this step, speculated it was their proof of reserves.

With over 10 exchanges in 2019 alone, Mayer noted that none of the exchanges are too big to fail. Mayer said:

Like if Coinbase failed that would probably be one of the best things that could possibly happen for the Bitcoin price

Mayer claimed that the hacks like Quadriga CX or Mt. Gox helped Bitcoins price. In order to prove this, the PoK advocate took the example of Coinbase. Mayer explained that if Coinbase had 20 million customers, assuming each of them owns 0.1 of a bitcoin, that will amount to 2 million bitcoins. In a hypothetical scenario where Coinbase shuts shop and its customers lose their 2 million bitcoins, it will lead to a scarcity of an already scarce commodity. Thus, going by the logic of supply and demand, this hack could in-turn drive the price of Bitcoin for other holders.

Coinbase saved itself from one such incident in 2019, where it was targeted by a malware capable of taking over someones machine. However, the exchange acted expeditiously and discovered that it was a part of a sophisticated, highly targeted, thought out attack. that used spear-phishing/social engineering tactics, and two Firefox 0-day vulnerabilities. The security team was able to detect and block the attack before any harm was done.

Mayer noted with the above example of the vulnerabilities an exchange was capable of and how PoK could bring a financial discipline.

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Should Coinbase fail, it would be the best thing for Bitcoins price: Trace Mayer - AMBCrypto