‘I Could Gloat’ – BTC Price On Its Way to Zero, Nouriel Roubini Says

With BTC price trading at its lowest since October 2017, ardent nocoiner Nouriel Roubini has taken another shot at Bitcoin.


“The Mother of All Toxic Polutions”

Nouriel Roubini, currently a professor at the New York University Stern School of Business, takes every chance he gets to bash cryptocurrencies and their “bubbly” and “scammy” nature.

Naturally, as the cryptocurrency market plunged this week and as Bitcoin price 00 lost over 13 percent of its price overnight, the NYU professor showed no remorse.

“I could gloat about Bitcoin collapsing 10% in a day to $5700. But that is still some way to ZERO where Bitcoin belongs. Actually since Bitcoin is The Mother of All Toxic Pollutions & Environmental Disasters its true fair value is highly NEGATIVE with the right externality tax.”

Roubini has definitely been a colorful critic of both cryptocurrencies and blockchain technology. While he was reportedly one of the few economists who accurately predicted the financial crisis of 2008, the professor does seem to have a strange thing going on for the word “mother.”

Speaking at a hearing in front of the Senate Committee on Banking, Housing and Community Affairs, he called cryptocurrency “the mother of all scams and bubbles.”

Questionable to Say The Least

While it’s true that bitcoin collapsed 10 percent this week, it’s the only verifiable fact in the professor’s statement. Meanwhile, Bitcoin has been growing with 0.347 percent per day on average since January 1st, 2011 – something which the professor conveniently ignores.

Another glaring omission is the Bitcoin network having an uptime of 99.98%. In other words, confidence in this nascent, neutral, global monetary network is only expected to increase with expanding hash rate, particularly in the wake of the 2008 financial crisis.

3.2 GB Block Sizes: Developers Bash Bitcoin Climate Change 'Fake News'

Roubini also hits Bitcoin with the “save the planet”  angle referring to Bitcoin as a “The Mother of Environmental Disasters” in reference to what he sees as wasteful energy consumption.

Recent studies, however, such as by a clean energy technology researcher at the University of Pittsburg conclude that Banks use three times more energy than Bitcoin.

What is more, the scientist also outlined that as the mining industry grows, its electricity usage will likely decline over time as it moves towards more efficient and renewable sources of energy.

What do you think of Nouriel Roubini’s latest Bitcoin outburst? Don’t hesitate to let us know in the comments below!


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SEC Settles Charges With Two ICO Issuers

SEC Settles Charges With Two ICO Issuers

Regulation

The U.S. Securities and Exchange Commission (SEC) has settled charges with two initial coin offering issuers. These cases are the commission’s first to impose civil penalties “solely for ICO securities offering registration violations.” Both companies have agreed to refund investors, pay penalties, and register their tokens as securities.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Charges Settled

On Friday, Nov. 16, the SEC announced “settled charges against two companies that sold digital tokens in initial coin offerings (ICOs).” The agency explained that Carriereq Inc. (aka Airfox) and Paragon Coin Inc. both “consented to the orders without admitting or denying the findings,” elaborating:

These are the commission’s first cases imposing civil penalties solely for ICO securities offering registration violations. Both companies have agreed to return funds to harmed investors, register the tokens as securities, file periodic reports with the commission, and pay penalties.

SEC Settles Charges With Two ICO IssuersThe two companies’ tokens are neither registered with the SEC nor qualified for an exemption to the registration requirements.

Stephanie Avakian, co-director of the SEC’s Enforcement Division, emphasized that “companies that issue securities through ICOs are required to comply with existing statutes and rules governing the registration of securities.”

The SEC further detailed:

The orders impose $250,000 penalties against each company and include undertakings to compensate harmed investors who purchased tokens in the illegal offerings.

These two cases follow the agency’s first non-fraudulent ICO registration case of Munchee Inc. The SEC did not impose a penalty in that case because the company stopped its offerings before delivering any tokens and promptly refunded investors.

The Two Companies

Both Airfox and Paragon conducted token sales last year after the SEC warned that ICOs can be considered security offerings in its DAO report, a landmark paper that serves as the defining document for ICOs to avoid being categorized as securities in the U.S.

SEC Settles Charges With Two ICO IssuersBoston-based Airfox raised approximately $15 million by selling 1.06 billion of its tokens to more than 2,500 investors globally through various websites that it controls. The company claims that the funds would be used “to finance its development of a token-denominated ‘ecosystem’,” the SEC described.

Established in July last year, Paragon sold its tokens to approximately 8,323 investors, including those in the U.S. The company “raised approximately $12 million worth of digital assets to develop and implement its business plan to add blockchain technology to the cannabis industry and work toward legalization of cannabis,” the commission noted.

Paragon issued a statement on Friday confirming that it has reached a settlement agreement with the SEC after working on it with a team at the commission for over a year. CEO Jessica Versteeg calls it “a very positive agreement … that will effectively put an end to the uncertainties of the legal status ” of her company’s token.

What do you think of the SEC settling charges with the two ICO companies? Let us know in the comments section below.


Images courtesy of Shutterstock and the SEC.


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The ‘Wal-Mart’ of Venezuela Has Started Accepting Bitcoin

As Venezuela is in the grip of hyperinflation, a large local Wal-Mart-like department store has started to accept bitcoin for goods.


Cryptocurrencies: A Viable Alternative

More and more are cryptocurrencies establishing themselves as a viable alternative to Venezuela’s redenominated local currency the Sovereign Bolivar. TRAKI, a large local department store, has purportedly started to accept cryptocurrencies.

According to a Reddit thread posted by user ImVito, she was able to purchase 884 items of school supplies and clothing with as little as $260 in BTC. Supposedly, the money was donated by the Reddit community and all the items will be going towards the country’s kids in need.

“Real Adoption and Real Help,” reads the thread as the user has also shared the transaction of the purchase. Apart from Bitcoin, the department store also accepts Dash, Ethereum, Litecion (LTC) and Bitcoin Cash (BCH).

Venezuela’s Financial Catastrophe

The country has undoubtedly failed to maintain its control over its financial sovereignty with fiat as the International Monetary Fund projects that the local inflation rate will hit 1 million percent by the end of 2018.

Pressure, however, is only boiling up as the country recently instigated mandatory Petro payments for travel passports.

Venezuelan Hyperinflation Makes Bitcoin An Ideal Way To Transact

Amid the financial crisis, though, a trend is clearly outlined: peer-to-peer cryptocurrency trading has skyrocketed.

Bitcoinist reported November 7 that the country has traded 1075 BTC in 7 days until November 3, beating all previous highs. The above example is only one which outlines why cryptocurrencies are shaping up as preferred means of payment in the country.

Just a few months back, though, another Reddit user shared his story of how he managed to feed an entire community off of NANO donations. At the time, NANO was worth $2.71 per coin, but the user outlined:

0.5 nano is almost one entire monthly salary in my country. It’s more than I made last month.

Moreover, just yesterday the oldest newspaper in the country – El Impulso, has publicly recommended people to sell their cars for BTC as a means of protecting their money from inflation. The publication stressed that users don’t need foreign accounts nor do they need to hold a large amount of other currencies in cash if they use bitcoin.

What do you think of the financial crisis in Venezuela? Don’t hesitate to let us know in the comments below!


Images courtesy of Shutterstock