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 ...
Bitcoins must be made of carbon.
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.
Is anyone really surprised?
Casablanca style? Who knew?
Bitcoin, the tulip bulb trading of the 21st century. At least with tulip bulbs, you had a physical asset you could see and hold.
Hoax more like fraud.
The Hell you say? :P
Some folks have taken to calling them Dunning-Krugerrands for a reason...
Blockchain technology seems to have some promising uses.
But “investing” in bitcoins? I just don’t get it.
Bitcoin is that Google play card you buy in the store so your grandson can buy “skins” for his avatar. Useless.
No poop Sherlock.
“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.
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.
Love that!
Very good! Gonna remember that.
Just like bitcoin itself.
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.
The fake digital currency had fake trades??? !!!!!!
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