Former Crypto Skeptic Purchases Bitcoin, Tron Leader Calls Bitcoin an Excellent Investment
Another former Bitcoin skeptic has added his name to the list of “Bitcoin converts.”
Thai-based stock market investor Marc Faber revealed in an interview with Cash that he had bought Bitcoins “for the first time 10 days ago” so that he could learn more about the young but evolving crypto ecosystem.
The 73-year old justified his purchase by stating that Bitcoin is in a better position from a technical perspective after its price plunged from more than $19,000 in 2017 to its trading range of slightly below $4,000.
Faber said that his decision to buy the digital asset was influenced by Xapo CEO and PayPal board member Wences Casares.
“I was tempted to purchase Bitcoin when it was available for $200. But I held myself from purchasing something that I didn’t fully understand. But in the last three months Bitcoin has surged 15 percent in valuation,” said Faber in the interview.
Faber is a former Bitcoin skeptic who warned his followers to only invest an amount of money they can afford to lose.
“I would suggest to my followers that they invest such an amount in Bitcoin [BTC] that they can afford to lose,” said Faber.
Faber is mainly famous for advising his clients to exit the stock market before the stock market and the world crashed in 1987 in what is now known as Black Monday or October 1987 crash.
Nasdaq licenses its the technology to an upcoming spot trading crypto platform
Nasdaq, the world’s second-largest stock market by market capitalization announced on March 13 that Bcause LLC, the creator of the world’s first full-stack cryptocurrency ecosystem, will run on Nasdaq’s flagship technology via the Nasdaq Financial Framework platform.
The technology is scheduled to go live in the first half of 2019 and will be launched concurrently with the platform’s spot cryptocurrency market.
Bcause has filed to America’s commodity regulator, the U.S. Commodity Futures and Trading Commission to be a fully designated contract market (DCM) and develop a derivates clearing organization (DCO).
This will allow Bcause to be a one-stop shop for everything crypto as its services will range from mining, spot trading, futures market, and to derivates clearinghouse which is subject to regulatory approval.
The surveillance technology provided by Nasdaq is designed to make sure surveillance protocols used in the crypto industry are suitable for the evolving industry. This creates a safer trading platform for Bcause users as it monitors several nefarious activities such as market manipulation.
Bcause CEO Fred Grede said that his company has great respect for the Nasdaq brand which has existed for 48 years.
“We have tremendous respect for the Nasdaq brand and are honored that we can deploy these robust, tried-and-tested platforms – customized to our unique markets – as the foundation of our technology,” said Grede.
Tron founder and CEO says Bitcoin is a great investment vehicle for the younger generation
Tron founder and CEO Justin Sun has shared his views on the future of the crypto industry. In a recorded interview published by CNBC on March 13, Sun said that the future of cryptocurrencies is very promising at the moment.
The young leader pointed out that institutional involvement of organizations such as JP Morgan Chase and Facebook points to a brighter future.
Asked if Bitcoin is an investment asset or business idea, he referred to the world’s most popular digital currency as “technology rather than a business opportunity.” He believes that off-chain solutions such as Bitcoin Lightning Network have the potential to trigger “the next wave of the internet.”
Sun further noted that Bitcoin is a “very good opportunity for younger generations.” This is in sharp contrast to what notable economists and investors such as Nouriel Roubini or Warren Buffett think. He also said that the bear market may be over.
Commenting on Tron’s market ($1.5 billion), the young leader said he is not bothered by it is only the surface of the business as the firm is mostly focused on technology and business development. He took the opportunity to praise his own projects, particularly BitTorrent, a file-sharing peer-to-peer protocol acquired last year by Tron in a deal reportedly worth more than $120 million.
“I think, basically, right now the biggest opportunity is the mass adoption. For example […] the cryptocurrency we are introducing into the BitTorrent network, one of the largest file transferring networks in the world. We have over 100 million monthly active users in over 178 countries. I think lots of companies like Facebook will also bring a lot of people to the industry as well,” said Sun.
Tether confession: USDT tokens are not fully backed by USD as earlier indicated
Tether, the market leader in the stablecoin coin segment has finally admitted that its USDT tokens are not fully backed by the American Dollar. The website has previously stated that each token in circulation is backed by USD reserves on a 1:1 ratio.
The claim has been changed and replaced with something new but clear that the stablecoin’s backing comes from multiple sources of backing and not limited to USD.
“Every Tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”),” reads a new statement on Tether’s website that explains how the USDT are backed.
Tether is not new to controversy. The stablecoin was issued in 2014 by Tether Limited and the parent company has failed multiple times to prove the claims of its fiat backing.
It was later revealed that Tether has a hidden association with cryptocurrency exchange Bitfinex. A research analysis published by the University of Texas shows that Tether was being used by the exchange to inflate the price of Bitcoin.
In part, Tether has just confirmed long-standing rumors – the stablecoin is not fully collateralized by the USD and raises more questions on whether the project is a fraud or not.