$500 million Tether...no pump?
Over $500 Million Tether Issued in August Isn't Impacting the Market
MANIPULATION ACCUSATION
- In 2018, Tether (USDT) has been accused of manipulating Bitcoin's price and causing the astronomical rise to $20,000
- This accusation came from a University of Texas research paper in which the researchers used 87 examples of the largest Tether issuances from March 2017 to March 2018
- In that research, the team found that although Tether accounted for "less than 1 percent of the time period examined, they amounted to about 50 percent of Bitcoin’s compounded return over that year"
THE TURN TO ALTCOINS
- Many who claim Tether is involved in Bitcoin price manipulation also claim that altcoins can be affected too
- According the Chainalysis, Tether issuances last year were linked to Bitcoin price pumps 85% of the time
- However, when prices crashed in January, that correlation fell by around 93%
- In contrast, EOS and NEO still maintained a high correlation to Tether issuances from January to June
NOWHERE TO BE SEEN
- Now, however, Bloomberg released an article detailing the research findings of Chainalysis and shows that Tether hasn't had a significant impact on the price of Bitcoin or EOS and NEO in August
- Even though over $500 million in new Tether tokens were issued in August, Bitcoin has still managed to drop around 11% on the month, EOS down 31%, and NEO down 41%
- This is an interesting finding since it seems Tether issuances have lost impact on the market
Bitcoin Mining Consumes 1% of All Energy Consumption
MORE ELECTRICITY THAN NEW YORK
- Recently, in his testimony to the Senate Committee on Energy and Natural Resources, Princeton's Arvind Narayanan calculated that it takes 5 gigawatts a day to mine all Bitcoin
- To put the size of 5 gigawatts into perspective, that slightly more than the electricity consumption of the state of New York in one day
- Narayanan calculated this figure by using the power consumption of the mining device, the number of hashes computed per second, and by assuming "all miners use the most energy efficient mining device available on the market"
GROWING HASH RATE
- Though Bitcoin's price has dropped significantly in 2018, miners have seen an ever-growing hash rate
- This feat demonstrates that there is a strong belief in Bitcoin as a growing hash rate could indicate a growing number of Bitcoin miners
- Another possible explanation for the increasing hash rate is that miners want to get in before the "halvening" which will occur around May 2020 and will decrease rewards from 12.5 Bitcoin per block to only 6.25 Bitcoin per block
- Regardless of the reason, an increasing hash rate means increasing energy consumption for Bitcoin
Q&A with @cryptonoobie (aka Lord Catoshi)
What is the story behind your "crypto identity"?
My cat was always with me trading coins. He was sitting on my desk, walking over my keyboard and even pressing ESC buttons when I was logged in to Bittrex its old UI. I had no choice but to start my journey as a Cat. And so it all began. Now I am here and I can't be more grateful for the people helping me towards success. Hard work, the right people around you and the willingness to learn really can bring you far. Now I am here.
How did you get started investing in crypto?
I was pretty successful in my studies and career. I got multiple honoraries at studies and during my career, like inventing a 100 Million dollar business model for a huge multinational and being the top company person in sales. But then it hit me: burned out. I invested so much time and energies satisfying my overly ambitious mind, that my body said no. I was devastated, first mentally, then financially as I wasn't mentally able to work. There were times I couldn't even type a simple number into an excel file. It was that bad. I was truly exhausted. I quit my job and wanted to restart all over. But first I had to accept the fact that I needed to refuel my health, before thinking about new ideas and careers. After trying everything, from Tai Chi to Yoga to mediations...you can be sure I tried it all...things began to lighten up a bit again. I also tried affirmations, while most people think that is some kind of magic, these are sentences you keep repeating in your mind to focus your unconscious mind on things that matter. I started to feel better and even opened my laptop again. There was no time for fun...I needed to get my financial situation in order as soon as possible. I was living in a room with only a bed. I hit rock bottom. The only thing I had was a creative mind, a mediocre laptop and a will to get out of this situation. I started researching financial opportunities. Think about sales, affiliate marketing. But I didn't really like that anymore. One day I was scrolling on LinkedIn and then, something special happened...I discovered crypto...then 24/7 I spend attaining the needed skills and knowledge to thrive in these markets. I discovered I got a lot of feeling and talent for it. But just like a lot of people, I really didn't know what I was doing from the start. I also needed to learn some things the hard way. After a few months of trading, I discovered Crypto Twitter through the YouTube channel of Veridoge (unfortunately it is not there anymore). He explained to me there were lots of scammers, but also cool people to learn from. This steered me in the right direction.
What is your trading strategy?
Trading is one of my many ventures and at the moment I don't spend a lot of time doing it. I am positioned in Bitcoin and some low caps that have promising business models. I made sure I invested in them OTC to be sure I am on board before they make big price movements. Cash flow goes into these low cap possible wonders. I believe 90% of alts will die, and picking the right ones with the right fundamentals will thrive. I don't have the time nor interest to watch charts all day and trading intraday price movements. Sometimes I play swings tho, but only if the R/R is too good to ignore. I feel too much trading is a waste of my time as life offers so many opportunities and things to learn and venture in. I must admit I am addicted to Crypto Twitter though. Every day a new rumor shows up. It is so addicting. Currently, I am studying other fields like Asteroid Mining, VR/AR/AI and eSports too. I have a long investment horizon for crypto (5-10 years), unlike many others.
Advice to crypto investors?
Chill out. Only invest in projects you like and believe in. Also, study the development teams and talk to them. Don't watch the charts too much and spend time diving into other topics in life, it makes you a non-interesting person to watch the charts all day. Have a long-term horizon if you are still young. Develop yourself in the meantime while your investments grow long term, like starting a business, career, improve social skills et cetera.
Hidden gem pick:
Check out my Medium and Twitter feed and you will find them!
Urban Array, a Chicago based 501(c)(3) nonprofit, is building social technology infrastructure for high promise communities.
Using grants provided through the Chicago Neighborhoods Now initiative, in partnership with building equity firm Hanns and Erving and social incubator E.G. Woode, their pilot project is currently underway in Chicago’s Englewood Thrive Zone.
While U/A’s contributors come from a wide range of backgrounds they have a common ethos:
That everyone should be able to build themselves, while growing their community.
While Urban Array knows that blockchain will be crucial to the implementation of its goals, they also recognize that the crypto world is in major flux. As such, U/A is focused on creating tools for real users first, in contrast to the countless projects building tech without a defined use case.
This is a movement to keep an eye on and one which you you'll want to become a part of.
If you're interested in contributing check out and share their crowdfunding campaign or explore their website.
- North Korea is planning to hold a conference devoted to blockchain and cryptocurrencies.
- Bitcoin.org, the crypto resource site founded by Satoshi, celebrated its 10th birthday this month.
- Bitcoin Bull Tom Lee told CNBC that Bitcoin may end the year "explosively higher" due to emerging market correlation.
Today in Crypto is powered by coinmarketcal.com
Coin Burn
verb
Coins are sent to the gateway, where they are burned (destroyed by sending them to an unspendable address). Usually done to reduce the maximum supply of a coin to increase its value.
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