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deVere CEO: ETF, Lightning, and Halving Drive Recent Bitcoin Rally

After taking a brutal beating throughout much of 2019 thus far, Bitcoin made its largest green one-day candle of the year this past week, providing the market with a much needed relief rally.  Bitcoin’s price rose on Friday over $350 before bouncing off overhead resistance in the cryptocurrency’s current trading range.

CEO of independent financial consultancy firm deVere Group Nigel Green says that the move might be the start of a “considerable Bitcoin surge” stemming from one of three main factors behind this recent rally, but that it is still too soon for investors to begin celebrating.

deVere CEO: History Shows Halving Causes “Considerable Bitcoin Surge”

Following the break of support at $6,000, the crypto market has been deeply entrenched in despair as Bitcoin and other leading cryptocurrencies struggle to find their price bottom. Investors have been burned, and the strain on the industry has caused many companies to begin laying off employees as interest and capital flees the market.

Related Reading | Crypto Analyst Expects Strong BTC Bounce, MACD Signals Bottom

However, Bitcoin’s price woes may be coming to an end, and if history repeats itself, it could lead to a “considerable Bitcoin surge,” according to deVere Group CEO Nigel Green.

Green points to the upcoming “halving” in 2020 – an event that reduces the block reward miners receive for validating transactions by 50% – as a potential catalyst that ends the current crypto bear market.

“The code for mining Bitcoin halves around every four years and the next one is set for May 2020. When the code halves, miners receive 50 per cent fewer coins every few minutes.  History shows that there is typically a considerable Bitcoin surge resulting from halving events,” Green explained.

Litecoin’s halving is due this year, and was the first altcoin to break key resistance and helped to lead the crypto market rally that brought Bitcoin a 10% gain this past Friday, lending credence to Green’s claims. Green, however, says there are two other factors behind Bitcoin’s recent rally.

ETF and Lightning Two Other Key Factors Behind Recent Spike

Green also believes that a recent comments made by SEC commissioner Robert J. Jackson Jr. in which he states a Bitcoin ETF will “eventually” be approved may have given investors renewed confidence in the number 1 crypto by market cap.

Additionally, Green calls attention to recent developments in the second-layer protocol Lighting Network, which he says will “dramatically improve Bitcoin’s well-documented scalability issues, allowing it to move towards mass adoption.” Lightning Network, along with a potential ETF approval and the upcoming halving event are the “three key drivers” behind Bitcoin’s recent rebound, according to deVere.

Related Reading | SEC Commissioner Asks Gov’t to Amend Regulation For Crypto ETF, ICOs

But before investors begin to celebrate the end of the bear market, Green warns that the price was only able to reach the top of the trading range, and that “investors should not be popping champagne corks just yet.”

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‘It’s a Dark Market,’ Howls the Real ‘Wolf of Wall Street’ About Bitcoin

Jordan Belfort, the penny-shares scammer portrayed by Leonardo DiCaprio in Martin Scorsese’s film, has been weighing in on bitcoin recently. After featuring in the CNBC documentary, Bitcoin: Boom or Bust, he has been hitting the interview circuit. But should we pay any attention to a proven con-artist?


Greater Fools Theory

Belfort has previously said that bitcoin 00 relies on the ‘Greater Fools Theory.’ So people only buy believing that there will be a ‘greater fool’ who will pay a higher price than they. He should know more about this theory than most, having earnt 22 months in jail through abusing it.

So are we all fools and knowingly so? Sure, this could cause artificial spikes such as that of last year, but wouldn’t the crash have wiped out everything? Or are we all still fools? Either way, bitcoin is a scam, right?

“Bitcoin itself is not a scam”

Well apparently not, although scams perpetuate around it due to its anonymous nature, or so Belfort thinks. It is also the anonymous nature of bitcoin that he believes will be its downfall, and the reason we should all get out now.

'Real Wolf of Wall Street' Takes Up the Bitcoin Bubble Chant

He said in a separate interview on CNBC’s Power Lunch Monday:

It’s not that bitcoin’s a scam but its nature allows scams to occur. It’s a dark market, you can’t see what’s going on behind the scenes. People dive into that and use it to rip others off.

He cannot see the central banks allowing it to survive, mainly due to the assumed ease of money-laundering through crypto-currencies. In particular, he suggests that the SEC will stay well away, although current movements could be read as somewhat contrary to this.

Tether is suspicious

Belfort is particularly scathing of Tether, suggesting that he has seen evidence that it is not backed one for one by US dollars. He also questions the timings of Tether issuance, as too convenient.

Sounds like exactly the sort of thing a Shorty McShortFace would say.

Countering this, Nigel Green, Chief Exec of deVere Group, states that the early-August selloff was only ever going to be temporary. He believes that for the most part things have corrected themselves and that prices will steadily rise again from here.

So everything is back to normal on the good ship crypto… in that nobody can seem to agree on what will happen, so everyone pushes the narrative that most benefits them.

Do you agree with the real ‘Wolf of Wall Street’? Share your thoughts below!


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