Binance (BNB) flying on DEX preview, bitcoin slips as doom merchants wircle

Changpeng Zhao

Bitcoin continues to lose value, down 3% at $3,870. The big winner today is Binance (BNB) – the lone riser among top altcoins, 8% higher t $6.02 on the back of its decentralised exchange (DEX) preview:

The Nasdaq stock exchange’s conformation that it will be listing bitcoin futures hasn’t provided any ballast for the market.

Another bit of good news was reported by Reuters: Fidelity Investments and NASDAQ Ventures have invested in cryptocurrency exchange ErisX as part of a $27.5 million funding round.

A death foretold

Nouriel Roubini, aka Dr Doom is at it again with his doom-laden prediction of crypto’s imminent demise.

“If it all sounds funereal it is because Bitcoin and all other crypto-currencies are on the way a funeral march!”

Writing for Marketwatch, Atulya Sarin from Santa Clara University, agrees, saying it is close to becoming worthless.

“So, it appears bitcoin is now entering a death spiral: If the price continues to drop and the cost of mining does not fall correspondingly (the cost of mining will algorithmically decrease, but not necessarily to same extent as the decline in prices), bitcoin will quickly go to zero.”

However, the hash rate on the bitcoin network has fallen 30% since August and the difficulty adjustment mechanism decreased by 15%, making BTC cheaper to mine, which is dismissed by Sarin as being insufficient to offset mining losses.

Others are not buying that, and instead think the bottom is getting close. Here’s Mike Kayamori, the chief executive of Quoine, a Japanese fintech company that also owns a crypto exchange, sees miners’ cash flow problems as a sign of the much-sought-after bottom for the market.

“If there’s enough miners going out of business, that [means] equilibrium is near. When you look at how markets overshoot, both up and down, you can probably say it’s close to the bottom.”

Mike Novogratz is hanging in there also, despite the $76 million loss incurred by Galaxy Digital in Q3, for a total for the year of $175 million. He sees a glorious future ahead for crypto. He reckons bitcoin will “take out $10,000” by Q2 2019.

Tether latest

Bloomberg has a major piece of work on Tether in which it retells the story of a Turkish man who was unable to convert his $1 million worth of bitcoin to US dollars, despite Tether’s claims that the stable coin is fully backed by US dollars 1 to 1.

Mr Oguz Serdar was told: “Due to ongoing banking difficulties we are only able to process requests for verified corporate customers.”

Serdar has since reported his alleged difficulties with Tether to the US Treasury Department and Justice Department but hasn’t heard back as yet.

Tether is connected to sister company Bitfinex, a popular crypto exchange.

Spokesperson for Tether Ronn Torossian, insisted to Bloomberg that Sirdar “doesn’t have any money with us and he never did”.

Serdar sees his experience as a warning for the whole industry: “It’s the elephant in the room, but a lot of people don’t want to talk about it because they’re invested in it.”

Roger Ver still bullish

Roger Ver in a Bloomberg interview is still bullish on bitcoin, but admits “no one knows” where the bottom of the bear market might be.

“I’m a fundamentals investor… There’s more awareness, there’s more adoption, and there’s more stuff happening all over the world. So, of course, I’m incredibly bullish on the entire crypto-coin ecosystem.”

Bitcoin Cash has been one of the biggest losers in the near market, not helped by the hard fork mess. BCH is 9% lower at $140, while Bitcoin SV (BSV) lost 2% to trade at $90.

About the Author

Gary McFarlane
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK's second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane

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