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Majority of bitcoin trading is a hoax, new study finds
CNBC ^ | 03-22-2019 | Kate Rooney

Posted on 03/22/2019 9:59:46 AM PDT by NRx

New research is casting even more doubt on the legitimacy of bitcoin trading.

An analysis published by Bitwise this week shows that 95 percent of bitcoin spot trading is faked by unregulated exchanges. The survey, first reported by The Wall Street Journal, echoes concerns by regulators that cryptocurrency markets are still ripe for manipulation.

Bitwise, an asset manager in the process of trying to list the first-ever bitcoin exchange traded fund, said it met with the Securities and Exchange Commission on Tuesday to discuss its application. As a part of the process, it submitted analysis that could help regulators cut through the noise.

"People looked at cryptocurrency and said this market is a mess, that's because they were looking at data that was manipulated," said Matthew Hougan, global head of research at Bitwise. "When you cut away the echo chamber of these nonsense numbers, it should be an efficient, well-arbitraged market."

The analysis showed that "substantially all of the volume" reported on 71 out of the 81 exchanges was wash trading, a term that describes a person simultaneously selling and buying the same stock, or bitcoin in this case, to create the appearance of activity in the market. In other words, it's not real.

Those exchanges report an aggregated $6 billion in average daily bitcoin volume. The study finds that only $273 million of that is legitimate.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Crime/Corruption
KEYWORDS: bitcoin; cryptocurrency; fiatcoin; gold; goldbugs; monopolymoney; phony; tulipmania
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Queue the "I'm shocked" meme.
1 posted on 03/22/2019 9:59:46 AM PDT by NRx
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To: NRx

Bitcoins must be made of carbon.


2 posted on 03/22/2019 10:03:43 AM PDT by Buckeye McFrog
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To: NRx

In another breakthrough finding, a ten-year, federally funded research project undertaken by a consortium of universities has today announced that their data indicates that the median survival time of chickens who are guarded by foxes is less than five percent of that of chickens that are guarded by chicken farmers.


3 posted on 03/22/2019 10:04:37 AM PDT by Steely Tom ([Seth Rich] == [the Democrat's John Dean])
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To: NRx

Is anyone really surprised?


4 posted on 03/22/2019 10:08:14 AM PDT by Reno89519 (No Amnesty! No Catch-and-Release! Just Say No to All Illegal Aliens! Arrest & Deport!)
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To: NRx

Queuing the “I’m shocked” meme.

https://youtu.be/qmywwiZth5E


5 posted on 03/22/2019 10:09:42 AM PDT by Grampa Dave (I guess with John McCain & Benedict Arnold being dead, Faux News had to settle for Ryan!!!!)
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To: NRx

Casablanca style? Who knew?


6 posted on 03/22/2019 10:10:35 AM PDT by rktman ( #My2ndAmend! ----- Enlisted in the Navy in '67 to protect folks rights to strip my rights. WTH?)
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To: NRx

Bitcoin, the tulip bulb trading of the 21st century. At least with tulip bulbs, you had a physical asset you could see and hold.


7 posted on 03/22/2019 10:16:40 AM PDT by RJS1950 (The democrats are the "enemies foreign and domestic" cited in the federal oath)
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To: NRx

Hoax more like fraud.


8 posted on 03/22/2019 10:16:55 AM PDT by masadaman
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To: NRx

The Hell you say? :P

Some folks have taken to calling them Dunning-Krugerrands for a reason...


9 posted on 03/22/2019 10:18:43 AM PDT by Kriggerel ("All great truths are hard and bitter, but lies... are sweeter than wild honey" (Ragnar Redbeard))
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To: NRx

Blockchain technology seems to have some promising uses.

But “investing” in bitcoins? I just don’t get it.


10 posted on 03/22/2019 10:18:57 AM PDT by ClearCase_guy (If White Privilege is real, why did Elizabeth Warren lie about being an Indian?)
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To: NRx

Bitcoin is that Google play card you buy in the store so your grandson can buy “skins” for his avatar. Useless.


11 posted on 03/22/2019 10:19:40 AM PDT by lucky american (Progressives are attac Iking our rights and y'all will sit there and take it.)
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To: NRx

No poop Sherlock.


12 posted on 03/22/2019 10:21:40 AM PDT by Drango (A liberal's compassion is limited only by the size of someone else's wallet.)
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To: RJS1950

“At least with tulip bulbs, you had a physical asset you could see and hold.”

Most of the trading was futures contracts. Contracts that never delivered actual bulbs.


13 posted on 03/22/2019 10:21:53 AM PDT by TexasGator (Z1z)
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To: NRx

One day not long ago, I considered buying a chunk of Ethereum, because it was involved in blockchain development, and right before I pushed the buy button, an emergency popped up. I think the wife said I needed to go buy catfood.

I did the chore and figured I’d make the plunge later in the week. Well....the bottom fell out and plunged the cryptocurrency market into chaos that week and saved me from making one of the most stupid investment decisions of my stupid investment life.

Yaaaay! Thank you, cat.


14 posted on 03/22/2019 10:22:56 AM PDT by sergeantdave (Teach a man to fish and he'll steal your gear and sell it)
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To: Kriggerel
Some folks have taken to calling them Dunning-Krugerrands for a reason...

Love that!

https://en.wikipedia.org/wiki/Dunning–Kruger_effect

15 posted on 03/22/2019 10:32:33 AM PDT by Menehune56 ("Let them hate so long as they fear" (Oderint Dum Metuant), Lucius Accius (170 BC - 86 BC))
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To: Kriggerel
Some folks have taken to calling them Dunning-Krugerrands for a reason...

Very good! Gonna remember that.

16 posted on 03/22/2019 10:41:22 AM PDT by Steely Tom ([Seth Rich] == [the Democrat's John Dean])
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To: NRx

Just like bitcoin itself.


17 posted on 03/22/2019 10:48:17 AM PDT by NorseViking
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To: lucky american

Looks like I’m the only guy here that has has used it. Do use it whenever it is available, which is very rare. It has obviously been cracked down on. Last year 2 of my banks declined transactions to my bitcoin account (got it turned back on after phone calls), and I had to load a drivers license to use account. I do like when a bitcoin transaction clears (about 20 sec) there isn’t a CC number lingering around to be stolen.


18 posted on 03/22/2019 10:55:43 AM PDT by teevolt
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To: NRx

The fake digital currency had fake trades??? !!!!!!


19 posted on 03/22/2019 11:03:46 AM PDT by SkyPilot ("I am the way and the truth and the life. No one comes to the Father except through me." John 14:6)
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To: NRx
A dollar says that China and North Korea have buildings full of their best cryptographers and mathematicians with all the computing power they can muster, working tirelessly to subvert international blockchain currency traiding for their respective states.
20 posted on 03/22/2019 11:37:30 AM PDT by SpaceBar
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