Connect with us
https://paxful.com/?utm_source=CGNT&utm_medium=Banner&utm_term=Crypto%20Global%20News%20Team

Bitcoin News

Federal Reserve Loaned Equivalent of 12.7M Bitcoins to Bailout Banks (In One Day)

Published

on

Federal Reserve Loaned Equivalent of 12.7M Bitcoins to Bailout Banks (In One Day)

With the potential for an economic crisis intensifying, global central bankers are having to work overtime to ensure some stability. This has led to the Federal Reserve stepping in to add $111.9 billion to the financial markets to help with liquidity. To put that into a cryptocurrency perspective, the Fed just shelled out 12.7 million BTC to the banks overnight.

This financial intervention came in two parts with overnight repurchase agreements totaling $76.9 billion, with the second part being a 14-day repo totaling $34.9 billion.

These figures put into scale show how dire the economic situation is currently, as well as just how small Bitcoin’s market is on a mainstream scale. The fact that the Fed is able to loan out so much cash, and ensure liquidity across the banking system, is also cause for concern.

The Fed Keeps on Printing

The concern is that the financial system, and thus the banks, are essentially low on cash reserves and are relying on the Fed to keep printing money in order to bail them out. The intervention taken by the Fed, in this case, has seen treasury and mortgage securities from banks taken in, essentially acting as a short-term loan from the central bank.

This is on top of the Fed busy battling with President Donald Trump, who is demanding negative interest rates in order to drive spending. However, the chairman, Jerome Powell, has already told Congress that negative interest rates that Trump wants are not appropriate for the U.S. economy — especially after already cutting them three times this year.

The Fed, as well as most central banks globally, are now under enormous pressure to try and prop up the economy, but this may be a futile effort as the prediction of an ‘Everything Bubble’ looms. This devastating bubble is also predominantly predicated on the last-ditch panicked tactics of central banks to ride out and recover from the 2008 housing crisis.

federal reserve

In Terms of Bitcoin

Crypto commentator Rhythm Trader took this news and added a relevant Bitcoin slant to it, stating:

This is an interesting take as it shows just how large and imposing the Fed is, and also the sway it has over the economy. But it also shines a light on how small the Bitcoin economy is, as the Fed was able to dish out more than 50 percent of all the bitcoins that will ever be made in just one day.

It also shines a light on how important a decentralized financial system could be if properly developed and integrated. Central banking policies intended to bolster the economy are coming to a point where it is symptomatic treatment, whereas something like Bitcoin has the ability to operate without the need for such drastic economic policies.

Bitcoin News

Huobi Is Now The First Major Exchange to Run a Chainlink Node

Published

on

Huobi Is Now The First Major Exchange to Run a Chainlink Node
Huobi Is Now The First Major Exchange to Run a Chainlink Node

Major cryptocurrency exchange Huobi will integrate their price data with Chainlink’s ecosystem in an effort to improve its own data integrity and provide more accurate price information. While Binance was the first major exchange to provide their data to Chainlink oracles in October 2019, Huobi has gone one step further by running its own node on the system through Huobi Wallet. This allows the exchange to sign its own price data allowing users to confirm that any exchange data coming from the Huobi Node is authentic and direct from the source. Huobi Wallet CEO Will Huang stated:

“DeFi offers a unique value proposition of providing financial products that are transparent, open, and programmable. We are very excited to accelerate our involvement in this emerging trend by providing Chainlink users access to Huobi Global exchange data, as well as running our own Chainlink Node.”

The first batch of price pairs will include BTC/ETH, BTC/USDT, ETH/USDT, and LINK/ETH, with more to follow.

Huobi appears to be on a mission to improve its credibility following concerns around volume inflation last year. By running a node, the exchange’s reputation will be on the line should any of the data shared through Chainlink prove to be inaccurate. As one of Gibraltar’s largest crypto firms, the integration comes in the wake of the country’s continued efforts in reducing market manipulation by crypto firms over the last few months. Last year Huobi partnered with Global Digital Finance (GDF), co-chairing the Market Integrity Working Group with Solidus Labs.

In 2019 a Bitwise report implied that Huobi was reporting inflated trading volume, causing an internal investigation to weed out any potential wash trading strategies by market makers. Huobi Global CEO Livio Weng admitted wash trading may have occurred:

“We did identify a few of our market makers conducting what we suspect may have been wash trading for the sake of performance and marketing purposes. We have already communicated with these market makers and they have discontinued the strategies in question.”

Huobi has since moved to the top 10 exchanges in Messari’s ‘Real Volume’ list.

Continue Reading

Altcoin News

EOSIO-Based Social Media Platform Voice Launches Ahead of Schedule

Published

on

EOSIO-Based Social Media Platform Voice Launches Ahead of Schedule
EOSIO-Based Social Media Platform Voice Launches Ahead of Schedule

Voice, a blockchain-based social media project developed by EOS creator Block.One, briefly went live one day before its scheduled launch. Based on the open source EOSIO protocol, Voice aims to use Blockchain technology to create a trusted social experience, free from bots and fake accounts. Revealed in June 2019, the project uses biometric authentication technology to verify every account, limiting accounts to one-per-person and promising to protect user data.

Voice’s main page temporarily displayed several posts from different accounts which featured multiple likes and comments. As of press time, the website is no longer available. It now displays “Error 1020” instead, which specifies that the website is “using a security service to protect itself from online attacks.”. In early June, Zalatimo announced that the platform is set to roll out on U.S. Independence Day. He noted that only registered users would be able to publish content or engage online.

After revealing their plans for Voice in June 2019, EOS’ parent firm, Block.One, invested $150 million in Voice during March 2020. The investment was said to provide Voice with resources to operate independently from Block.One. Numerous blockchain-related social media projects have been released to date.

Continue Reading

Bitcoin News

Billionaire Chimes In On What A BTC Price Increase Would Mean

Published

on

Billionaire Chimes In On What A BTC Price Increase Would Mean
Billionaire Chimes In On What A BTC Price Increase Would Mean

Chamath Palihapitiya, the billionaire CEO of Social Capital and Virgin Galactic Chairman, has called Bitcoin a type of disaster insurance against governments making bad financial decisions. In an interview with Unchained Podcast on June 23, Palihapitiya said hard-working people need something like Bitcoin as insurance, as the cryptocurrency is “really fundamentally uncorrelated” to the consequences of legislators behaving badly. 

However, the CEO pointed out that for the Bitcoin price to skyrocket at this point, things would have to go terribly wrong in the financial system, with disastrous impacts on your friends and family. “If your Bitcoin bet pays off,” Palihapitiya said, “it will be cataclysmically destructive for the world. And that’ll have enormous consequences to many people we all know and care about who weren’t hedged in Bitcoin. And so you almost don’t want it to happen.”

Palihapitiya himself invested in 2010, by buying one million Bitcoin for $80, whose value reached the billions when the token had its all-time high in December 2017. No wonder the billionaire claims that Bitcoin (BTC), unlike “second- and third-tier” cryptocurrencies like Ethereum (ETH), is one of the few ways to get a “massive asymmetric payoff” from such a small investment. “You want to be sure that a small amount of insurance can basically make you whole,” Palihapitiya said, citing a $1,000 payoff for a $1 investment as a good example. “That’s why I just think that, you know, you should take 1% of your portfolio, put it in Bitcoin.”

“At the end of the day, any other asset class — equities, debt, real estate, commodities — they’re all tightly, tightly coupled to a legislative framework and an interconnectedness in the financial markets that brings together many of the governments that are sort of behaving this way.”

The billionaire has also speculated the value of Bitcoin in the future could reach millions of dollars, or drop to zero.

Continue Reading

TRENDING

Copyright © 2015 Crypto Global News Team.