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Facebook removed hundreds of pages on Thursday it said posed as independent news sites in eastern Europe and elsewhere but were actually run by employees at Russian state-owned news agency Sputnik.
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Gymboree Group Inc. will shut down its Gymboree and Crazy 8 clothing chains after declaring bankruptcy for a second time and failing to find a buyer for the stores, which have been hit hard by a decline in mall traffic.
The San Francisco-based company filed for Chapter 11 bankruptcy protection…
The St. Louis branch of the Federal Reserve bank has published a report seeking to examine the long-term prospects of BTC as an investment. The paper is highly critical of bullish outlooks for bitcoin, asserting that a “flood” of altcoins will deflate the price of all cryptocurrencies relative to fiat currencies over time.
Economic Research Arm of St. Louis Federal Reserve Assesses Bitcoin’s Prospects
The St. Louis Federal Reserve has published a paper that seeks to assess the prospects of bitcoin as a long-term investment.
According to the paper, the bullish argument for bitcoin core is that it will appreciate “indefinitely” due to its “capped supply and an ever-growing demand.” The bearish case for bitcoin, the St. Louis fed asserts, is that “Bitcoin’s price will fall to zero, as it’s an intrinsically worthless asset.”
Ultimately, the paper predicts that the future price action for bitcoin is likely to remain bounded between the aforementioned “extremes.”
St. Louis Fed Argues ‘Ever-Expanding’ Altcoin Supply Will Diminish Bitcoin Prices
The St. Louis Federal Reserve describes the bitcoin bull scenario as “too optimistic,” emphasizing the expectation that the “ever-expanding supply of alternative cryptocurrencies” will drive down the price of BTC relative to fiat currencies.
The paper asserts that the bullish outlook for bitcoin “assumes that the nominal exchange rate between bitcoin vis-a-vis other cryptocurrencies will adjust in proportion to their relative supplies,” adding that “Bitcoin is expected to appreciate relative to its competitors or, equivalently, its market capitalization share will stay constant over time.”
St. Louis Federal Reserve Claims Bitcoin ‘Has No Fundamental Value’
The bearish outlook is predicated on the assertion that “Bitcoin has no fundamental value” and that the market will “recognize this fact” sooner or later.
While appearing to make concessions for the possibility that bitcoin will not crash down to zero, the paper notes that “one can accept that bitcoin trades above its fundamental value without claiming that its fundamental value is zero,” adding that “many securities trade above what might be considered their fundamental value.”
In concluding, the paper asserts that the price dynamic of an unbacked asset will likely produce significant volatility and is “inherently unforecastable.” While the St. Louis Federal Reserves adds that the price of bitcoin is “not likely” to fall to zero, the paper repeatedly emphasizes the authors’ expectation that the proliferation of altcoins “is likely to place significant downward pressure on the purchasing power of all cryptocurrencies, including bitcoin.”
What is your response to the St. Louis Federal Reserve’s predictions regarding the long-term outlook for bitcoin? Share your thoughts in the comments section below!
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At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.
The post St. Louis Federal Reserve Predicts ‘Flood’ of Altcoins Will Drive Down BTC Prices appeared first on Bitcoin News.
U.S. stock indexes edged down Friday after the falling price of oil weighed on energy companies, but the Standard & Poor’s 500 nevertheless notched its third straight winning week following a brutal stretch in December.
It was a day full of broken streaks — oil fell for the first time in two weeks,…
CBS said Sunday that its news division president, David Rhodes, is stepping down following a troubled year that saw morning anchor Charlie Rose and the top executive at 60 Minutes lose their jobs following misconduct reports. He is being replaced by veteran producer Susan Zirinsky. Zirinsky, who started work at…
Aquaman is still the champ at the box office three weeks in, reports the AP , but the high-concept thriller Escape Room also drew some substantial crowds in its debut weekend. Warner Bros. on Sunday said that Aquaman has added an estimated $ 30.7 million from over 4,000 North American…
GOP’s Steve Scalise shuts down Twitter debate on taxes with Ocasio-Cortez after ‘radical followers’ allude to Virginia shootingJanuary 6, 2019 | dailybusinessnews
U.S. Rep. Steve Scalise, R-La., abruptly ended a Twitter debate with newcomer Democrat Alexandria Ocasio-Cortez of New York early Sunday after at least three commenters made references to the June 2017 shooting in which Scalise and three other people were shot by a left-wing activist.
Stocks tumbled Thursday on Wall Street, with technology companies suffering their biggest loss in seven years, after Apple reported that iPhone sales are slipping in China.
The rare warning of disappointing results from Apple stoked investors’ fears that China’s economy, the world’s second-largest,…
Chinese state television has sought to document the toll taken on South Korean cryptocurrency companies by 2018’s bear market, with Financial Channel (CCTV-2) producing a report detailing the challenges faced by Korean miners. According to the report, last year’s bear trend was further exacerbated by a 97.5 percent drop in Korean cryptocurrency premiums, driving between 70 and 80 percent of miners to desist operations.
70 to 80 Percent of South Korean Miners Estimated to Have Ceased Operations During 2018
The report discusses the start of the South Korean cryptocurrency mining industry with the operator of a mine who purchased roughly 1,000 mining rigs for generating ether while prices were approaching all-time record highs during January last year.
Financial Channel estimates that the cost of mining a single ether was roughly 214,000 Korean won (KRW) (approximately $ 190) at the start of 2018, adding that the surging altcoin markets of mid-January would see ETH trade for 2.35 million KRW each.
Despite the exorbitant profits that were on offer while prices were hovering near early 2018’s record highs, the operator estimates that four out of every five South Korean mining businesses operating at the start of the year has since shut down. “To my knowledge, 70 to 80 percent of mining farms have ceased operation, and many even declared bankruptcy,” the miner stated.
Korean Share of Global Cryptocurrency-to-Fiat Trade Drops by Half Year-Over-Year
Financial Channel asserts that the challenges faced by Korean miners were compounded by a dramatic slump in the premium on cryptocurrency prices in Korea — the so-called “Kimchi premium” — from as high as 40 percent at the start of 2018 to just 1 percent today.
The report adds that as of Dec. 31, 2018, South Korea’s central bank, the Bank of Korea, estimated that KRW pairings accounted for approximately 5.8 percent of global trade between cryptocurrencies and fiat currencies, a more than 50 percent drop when compared with KRW volume as of the end of 2017.
Do you know any miners who had to cease operations last year due to falling cryptocurrency prices? Share your story in the comments section below.
Images courtesy of Shutterstock.
At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even look up the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.
The post Report: 70 to 80 Percent of South Korean Miners Shut Down in 2018 appeared first on Bitcoin News.
Netflix is being accused of bowing to the demands of “thin-skinned Saudi royals” after making an episode of an American comedian’s show unavailable in the kingdom. In the episode of Hasan Minhaj’s Patriot Act , the Muslim comedian strongly criticizes crown prince Mohammed bin Salman over the murder of journalist Jamal…