Just when it looked as if crypto was going to suffer another week of painful losses, markets rebounded strongly on Saturday to end the week marginally higher overall in terms of market capitalization. Prior to the recovery, Friday saw Bitcoin falling below $6000, coinciding with the final day of the CME Group’s futures contract, and thus continuing the trend of sell-offs as the futures expiration date approaches.
Facebook Reverses Cryptocurrency Advert Ban
Facebook has decided to partially reverse its decision to ban cryptocurrency adverts on its site. Back in January, Facebook decided to halt “financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings, or cryptocurrency.” But last week, it announced it will that allow pre-approved crypto companies to advertise on the site, although it seems that the ban will still remain in place for ICOs.
Nevertheless, the news should be strongly bullish for crypto markets, having faced a raft of bans this year from several tech giants including Google and Twitter. It is also fueling speculation that Facebook itself might be gearing up for its own venture into the space. In May, it
Interestingly, three models of regulation for the space have also been identified as having emerged: the US (securities-driven), Europe (balanced) and Asia (binary). And in terms of competing with traditional VC funding, the report looks upon ICOs favorably, especially in technology and blockchain-related start-ups, while hybrid models (combining classic VC/PE funding and ICO) “are increasingly establishing themselves as a valid funding alternative”
European Virtual Currency Regulation
The end of the week also saw the European Parliament release its in-depth research into “Virtual currencies and central banks monetary policy: challenges ahead.” Among its findings, the study concludes that despite their technological advances and global reach, cryptocurrencies are far from being able to challenge the dominant position of sovereign currencies and the monetary policies of central banks, especially in major currency areas. Although in some extreme cases, such as “during periods of hyperinflation, financial crisis, political turmoil, or war”, digital currencies could be useful as a means of currency substitution in individual economies.
Another challenge highlighted by the report is the anonymity provided by digital currencies to their users. This remains a key reason why financial institutions are yet to warm up to the space, as it makes financial crime such as money laundering significantly easier to carry out. That said, countries are beginning to adopt more stringent Know Your Customer (KYC) policies in order to counter such activity.
Satoshi Nakamoto Rises
And finally, some amusing speculation arose last week over the possibility that the elusive Bitcoin creator Satoshi Nakamoto is alive and well, and that he is planning on releasing a book addressing Bitcoin’s origins, as well as answering some commonly asked questions about the cryptocurrency. A post surfaced on Friday on a website called the Nakamoto Family Foundation — a domain that was anonymously purchased last week using Amazon’s domain registrar — which discusses excerpts from the book that promises to be “a short story if you will, with some of the most brought up questions and answers. I wanted the people and the facts to be known.”
The authenticity of the post remains unverified. Many have tried — and failed — to unearth the real identity under Nakamoto’s pseudonym, while several people have come forward claiming to be Nakamoto. Conspiracy theories continue to abound as to the identity of the mysterious Bitcoin founder. Interestingly, this new post hints at the possibility that Nakamoto is in fact a group of people, “I will say this though, consider for a moment the distinction; as to whether I had help or was part of that help in creation, and then separate that from the person who followed, which for the most part, was very consistent.” But given the unverified nature of the post and its many outlandish claims, there is little to suggest that the latest buzz surrounding Nakamoto is authentic.
Originally published at www.datadriveninvestor.com on July 2, 2018.
DDI Blockchain Weekly (June 25th — July 1st) was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.