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Analysis: “Uncanny” Correlation Between The Long-Term Bitcoin And Gold Charts

“Uncanny Pattern Resemblance”

Since Bitcoin’s inception a decade ago, many have likened this decentralized digital asset to gold, with some dubbing Satoshi’s brainchild as a form of “digital gold.” This connection may be drawn due to the fact that the two individual assets are both stores of value, divisible, durable and secure.

Although there are similarities between the two assets that are as clear as day, as recently pointed by Nunya Bizniz, a lesser-known cryptocurrency proponent, there might be an “uncanny” line that can be drawn between the price action of gold and its digital counterpart.

On Thursday, Bizniz took to Twitter to bring up two separate charts, with the first being gold’s 43-year price history and the BTC’s price action throughout the entirety of its nine-year lifespan. Putting the charts (which are logarithmic/non-linear) side-by-side, it becomes apparent that there are clear parallels, or as Bizniz puts it, “uncanny,” even though the two stores of values may be inherently different at their core.

As seen in the tweeted image (above), the price action of both markets have seen similar bouts of exponential increases and subsequent ‘cooldowns’, leading some to ask if BTC is following in the footsteps of gold in some manner.

In a tweet posted just days after the original, the user brought up a zoomed-in chart of the two assets to back up the belief that they could be correlated. According to the tweet, if BTC is really following gold’s path, that could mean that the price of the foremost crypto asset could move under the ever so important $5,800 support level over the next few months.

However, as covered by Ethereum World News, Gabor Gurbacs, the director of digital asset strategy at VanEck/MVIS, claims that BTC could be worth upwards of $20,000 if it can succeed in a role as a primary form of digital gold. Gurbacs explained his prediction, stating:

Investors do refer to Bitcoin as a form of digital gold and gold today has around $7 trillion outstanding. If you take, say, 5 to 10 percent — I’ll let everyone do the math — Bitcoin has upside. Bitcoin is used as digital gold today. It’s a de-risk asset.

CryptoOracle Executive: Bitcoin Is Functionally Better Than Gold

Postulated price correlation aside, there are many that think that Bitcoin is actually superior to gold, as it has certain functions that make it an appealing investment, while also being functionally better than the yellow metal that humans have come to love over the course of written history.

As reported by Ethereum World News previously, Lou Kerner, co-founder and partner at CryptoOracle, “the first community-first crypto VC,” recently spoke with CNBC to reveal that Bitcoin may actually one-up gold in certain areas. Speaking on CNBC’s “The Coin Rush” segment, which holds a focus on cryptocurrencies and blockchain technologies, Kerner noted:

Gold has emerged as the global store of value and it has held that position for literally a couple thousand years — that’s an awesome run. So we now we have something (Bitcoin) that we think may be functionally much much better. So we expect that over time — not in a day, not in a week, not even in 5 years, — for some of the people using gold as a store of value to switch to Bitcoin.

While the crypto asset proponent didn’t mention any specific drawbacks of gold or positive aspects of Bitcoin, it could be assumed that he sees Bitcoin’s ease-of-use, immutability, digital nature as reasons why some forward-thinkers would see value in the use of BTC.

Image Courtesy of Michael Steinberg @ Pexels

The post Analysis: “Uncanny” Correlation Between The Long-Term Bitcoin And Gold Charts appeared first on Ethereum World News.

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CryptoOracle Co-Founder: Bitcoin Is Functionally Better Than Gold

“Some Gold Users Will Likely Switch To Bitcoin”

Gold is one of the most valuable metals on Earth, with humans finding value in such an element for thousands of years. Over the course of gold’s history, it became a great way for individuals and groups to store value across a variety of settings, countries, and eras. However, with the advent of the internet and the subsequent introduction of Bitcoin, some proponents of digital technologies believe that gold’s time as the primary global store of value might be up.

Bitcoin has long been likened to gold, with many analysts and industry on-lookers alike drawing connections between the inherent nature of the two assets. Some have even called this emerging asset “digital gold,” due to the similarities it shares with the “original” gold.

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Yet, Lou Kerner, a co-founder and partner at CryptoOracle, has come out to vehemently state that Bitcoin actually may one-up gold in certain areas and qualities, while still complementing gold for its importance to human history. Speaking on CNBC’s crypto-focused “The Coin Rush” segment, Kerner stated:

Gold has emerged as the global store of value and it has held that position for literally a couple thousand years — that’s an awesome run. So we now we have something (Bitcoin) that we think may be functionally much much better (than gold). So we expect that over time — not in a day, not in a week, not even in 5 years, — for some of the people using gold as a store of value to switch to Bitcoin.

This statement highlights two interesting points about Bitcoin’s role as a form of “digital gold.” Firstly, that Bitcoin may be inherently better than gold. While the CryptoOracle executive did not mention any specific values/features, it can be assumed that he sees Bitcoin’s ease-of-use, immutability, digital nature, and more as a reason(s) why some would prefer to use it over gold.

Secondly, the fact that the foremost crypto may begin to eat at the market share that gold has carved out for itself over thousands of years. As reported by Ethereum World News, Gabor Gurbacs, the director of digital asset strategy at VanEck/MVIS, claims that Bitcoin could be worth upwards of $20,000 a piece if the asset can succeed as digital gold. Gurbacs explained his prediction, stating:

Investors do refer to Bitcoin as a form of digital gold and gold today has around $7 trillion outstanding. If you take, say, 5 to 10 percent — I’ll let everyone do the math — Bitcoin has upside. Bitcoin is used as digital gold today. It’s a de-risk asset. Basically if someone wants to outlay systematic risk, then one would go to access gold or digital gold.

Back to the aforementioned CryptoOracle co-founder, who closed off his segment on CNBC, comparing Bitcoin to the “so-called” junk bond, as both assets were not accepted upon their arrival. In the case of the junk bond(s), it took 40 years to become a normal tradable asset/contract on the market. As Kerner alludes to, for Bitcoin, it might be much of the same, as it may take years to convince those who are hesitant to change that cryptocurrencies (and blockchain) are the next big thing.
Image Courtesy of Michael Steinberg @ Pexels

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South Korea: Police Raid Firm Whose Alleged Crypto Scam Promised Investors Shipwreck Gold

South Korean police have raided the office of a local firm whose alleged crypto scam promised investors the spoils of a sunken Russian warship, The Korea Herald reported August 7.

The Seoul Metropolitan Police Agency reportedly sent 27 investigators from its white collar unit to to collect evidence from the premises of Shinil Group in Yeouido, western Seoul, and seven other locations on Tuesday.

In mid-July, Shinil had released submarine footage of what it claimed was the wreckage of the Dmitrii Donskoi, an armored Russian cruiser that sank in 1905 in the midst of the Russo-Japanese war, alleging it had been found beneath the waters off Ulleung Island, east of the Korean peninsula, The Korea Herald writes.

Meanwhile, Shinil’s Singapore-based affiliate is said to have enticed investors to purchase the firm’s own cryptocurrency, Shinil Gold Coin, based on the rumored value of the shipwreck. The company allegedly exploited circulating claims that the ship had gone down with 200 tons of gold worth 150 trillion won (around $134 billion).

At a subsequent press conference, Shinil admitted the reports were unverified, adjusting the figure to 10 trillion won (around $9 billion). At the same time, the firm is alleged to have submitted an internal document to the maritime ministry for excavation approval that estimated the spoils at just 1.2 billion won (around $1 million), The Korea Herald writes.

The firm allegedly further promised investors that the value of the Shinil Gold Coin would skyrocket from its current 200 to 10,000 won (around $0.18 to around $9) by the end of September.

According to a local news report August 1, Shinil Gold Coin has raised 60 billion won (around $54 million) in investments from around 100,000 investors since its launch. Shinil CEO Choi Yong-seok been banned from leaving the country as the investigation continues.

As Cointelegraph previously reported, authorities are also pursuing the head of the firm’s Singapore-based affiliate, Yu Ji-beom, who allegedly created a crypto exchange dubbed Donskoi International and spread posts about the shipwreck on social media. According to his acquaintances, Yu has previously been convicted of real estate fraud and has fled to Vietnam to elude the investigation.

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Bitcoin Will Flash Dump then Moon, Says Veteran BTC Analyst Willy Woo

Veteran digital analyst, Willy Woo, correctly predicted back in late May, that Bitcoin (BTC) would test levels below $6,000 before any signs of recovery would be seen in the markets. Back then, he did not see BTC holding the $7,000 price level and had this to say:

I think we are gonna go to $5500-5700 next, I can’t see $7000 holding. Most likely we’ll balance a bit, then we’ll slide through. Long time-frames here, looking into June for rough timing of this to play out at a best guess.

Woo would also add that BTC was less likely to drop below $5,000 during that time period.

I don’t necessarily think we’ll fall through the 5000s… sure it’s a possibility but it doesn’t have to. It’s not a repeat, it’s not Mt Gox and Willybot pushing up price with faked orders, we aren’t detoxing from a scam bubble. Technically $5000s is a very strong support band

Sure enough, BTC fell to its lowest value this year on June 29th when it was valued at approximately $5,800 – $5,900. Three weeks later, BTC has been soaring at levels above $8,000 since last Tuesday, July 24th. However, these values have been short lived for BTC has dropped to the current value of $7,615 in a period of just 2 days.

The Flash Dump then Moon

Willy Woo has once again predicted that Bitcoin will probably continue to decline in value due to a flash dump. When this is done, BTC will moon just like Gold did during the Wallstreet Financial Crisis of 2008. Mr. Woo made this comments via twitter when he stated the following:

Interesting to see most think BTC will moon. I think BTC will flash dump, then moon afterwards, just like with Gold in WFC 2008. Flight to safety: everything else sells off to USD, then used to unwind leveraged positions, then afterwards havens like Gold and BTC have a bull run.

He would also add that its performance is contingent on institutional investors buying BTC.

Probably also contingent on how many institutional players are in the BTC market over that period. Normal retail HODLers won’t tend to have large leveraged positions to unwind from, apart from maybe mortgages.

The full tweet can be seen below.

Willy Woo has also advised how to trade in a bear market. He stated that:

When in bear, stay in USD as a base currency, then short (and long with extra care). When in bull stay in BTC and do vice versa.

Mr. Woo has on many occasions preferred to use the NVT signal/ratio to analyze the future of BTC. Standard NVT Ratio is simply the Network Valuation divided by the Transaction Value flowing through the blockchain and then smoothed using a moving average. NVT Signal then applies the moving average to only the transaction value. The signal is the work of Willy Woo and Dimitry Kalichki.

Disclaimer: This article is not meant to give financial advice. Any opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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Blockchain Platform to Allow Users to Trade Gold for Virtual Currencies

A company is creating an ecosystem where tangible assets such as gold can be traded for virtual currencies in a digital environment.

The platform, known as the Digital Gold Exchange (DGE for short,) says it has the goal of establishing a place where users can securely store their assets and trade with others “quickly, safely, and without intermediary intervention.”

It is designing a blockchain-based ecosystem which it hopes will allow individuals and companies to join – trading without borders wherever they are in the world.

Although gold is going to be a primary focus for the platform, DGE’s white paper says the company eventually plans to expand to other precious metals including diamonds, platinum and white gold. The company aims to make changing gold into tokens a fast experience, with conversion rates that are based on the official market prices listed on gold exchanges in South Korea and around the world.

According to DGE, one particular focus has been developing a trade system that is easy to understand, well designed and not too dissimilar from the payment processing systems commonly used on e-commerce sites – making its platform accessible and usable for customers from a range of age groups.

Partnerships established

Digital Gold Exchange says it has established partnerships with recognizable brands – and these agreements will result in a “stable and reliable ecosystem.”

According to the company, its first exclusive contract was signed in February with the Korea Gold Exchange 3M,  the country’s largest gold merchant.

In March, an agreement was reached with Happy Money, a brand whose gift cards can be used to make purchases on more than 500 brands in Korea. Under this deal, users will be able to exchange coins for these vouchers, which are accepted in book stores, restaurants, cinemas, music shops, coffee houses elsewhere.

The team behind the project says it is optimistic that these partnerships will continue to increase over the coming months.

The elements of the ecosystem

DGE says there are three main elements to its project. The first is a utility token known as TMTG, which stands for The Midas Touch Gold.

Although this token is not pegged to tangible assets such as gold, it can be used for purchasing other cryptocurrencies on the Digital Gold Exchange.

The ecosystem is also going to offer another token known as MDG. This can be bought on the DGE using TMGT tokens and is only tradable on this platform. Pegged to 1g of gold as a certificate, it can be traded to real gold at any time.

Finally, the platform tying these two tokens together is the Digital Gold Exchange, with a white paper describing it as having a “pivotal role in the ecosystem.”

A presale for its tokens was held in three stages throughout May and June, and this was followed by an initial coin offering which ran from July 10-25.

The company is aiming for its tokens to be listed on a number of coin exchanges over the coming months, beginning with IDCM on August 1 and Coinsuper Exchange on August 16. By February 2019, it is hoped that diamond trading will also commence.

DGE claims that its offering stands out from other forms of virtual money because its tokens “could bring value to the everyday lives of many people,” unlike firms that have launched cryptocurrencies without actually considering what they should be used for.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

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Platform to Allow Users to Spend Metal-Based Crypto Using a Debit Card

A new monetary system is aiming to overcome the “severe price volatility” which has made cryptocurrencies unappealing to use as tender — creating two primary digital currencies which are based on gold and silver.

Kinesis says these currencies — known as KAU and KAG — are based one-to one on allocated physical gold and silver. This means that the full, direct title to the bullion backing these coins is held by the person who owns the cryptocurrency. These coins can be loaded on to a debit card and instantly converted into fiat for payments to merchants who accept Visa and Mastercard, and the company says users will also be able to withdraw funds from cash machines.

In explaining its rationale for using gold and silver as the basis for a digital currency, Kinesis described these assets as “two of the greatest stable and definable stores of value for trade and investment.”

A proprietary blockchain network has been developed for Kinesis’s monetary system, which is forked off the Stellar blockchain — and the team behind the platform says its users stand to benefit from “very high” transaction speeds and customizable fees.

Yields for participation

Kinesis says that passive or active users in its ecosystem stand to gain a yield for their participation — and the company has split this into four distinct categories.

The first is known as the Minter Yield. When a user converts their fiat currency or physical bullion holdings into KAU and KAG coins — a transaction that can be completed on the platform’s Primary Market — they receive a five percent share of the transaction fees on the coins they create and use. Users also earn the same share when they make their first deposit into a Kinesis Wallet, and this is known as the Depositors’ Yield.

In a nod to passive participation, the Holder Yield enables owners of KAU or KAG coins to receive a 15 percent share of the transaction fees generated while they hold these currencies. Although this is calculated on a daily basis, the yield is credited to their wallet once per month. Users will also be incentivized to invite new customers to join the Kinesis platform, receiving a Recruiter Yield when someone has been successfully referred.

“An evolutionary step”

Kinesis’s founder, Tom Coughlin, is the chief executive of Allocated Bullion Exchange (ABX) — a company which says it aims to “connect and empower an international network of buyers and sellers by offering direct access to the wholesale bullion market.”

Much of the infrastructure that is going to be used for Kinesis — the technology used for minting silver and gold and storing it in physical vaults — already exists, and the company says it has been successfully used by ABX for a number of years.

Kinesis says it has four target markets in mind for its monetary system. The first is the precious metal market, where it is hoped that investors would become incentivized to use these assets if they had a yield attached to them. The company also hopes to appeal to the cryptocurrency market, and believes KAU and KAG coins could become a solid replacement for “questionably backed and non-yield-bearing coins.”

A presale for the Kinesis Velocity Token, an ERC-20 utility token, is taking place until Sept. 9, with an Initial Token Offering running from Sept. 10 to Nov. 11. The pre-ICO runs from Nov. 12 to Feb. 28, 2019, paving the way for the public Initial Coin Offering to commerce on 1 March 2019.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

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Crypto Expert Says Bitcoin Can Rise Over Three-Fold As “Digital Gold”

Gold is one of the most valuable assets in the world, with humans historically holding the rare metal as a valuable asset. But with the rise of the internet and cryptocurrencies, Bitcoin has become a great gold alternative, a “digital gold” if you may, due to its nature as a limited, divisible and store of value centric asset.

Gabor Gurbacs, the digital director assets strategist and director at the VanEck/MVIS firm, recently made an appearance on CNBC’s “Futures Now” segment to talk about Bitcoin’s role as “digital gold.”

Speaking with the “Futures Now” host, Gurbacs stated:

Investors do refer to Bitcoin as a form of digital gold and gold today has around $7 trillion outstanding. If you take, say, 5 to 10 percent — I’ll let everyone do the math — Bitcoin has upside.

At the time of writing, Bitcoin currently sits at $7350, with a collective market cap of over $126 billion, not discounting the supposed lost Bitcoin that have gone out of the circulation pool. Taking the conservative estimate given by VanEck/MVis’s digital asset director, Bitcoin could see a minimum of a three-fold rise, bringing the cost of Bitcoin to $20,000 yet again and the collective value to ~$350 billion.

Gurbacs went on to explain more about Bitcoin in a “digital gold” role, noting:

Bitcoin is used as digital gold today. It’s a de-risk asset. Basically if someone wants to outlay systematic risk, then one would go to access gold or digital gold.

However, the crypto expert noted that Bitcoin is still not accessible as “digital gold” to many investors, namely institutional investors who are more wary about security and regulation.

He stressed that before becoming world-renowned as a digital gold, Bitcoin, and the rest of the crypto market, will first need to evolve by addressing the issues with liquidity, “marketwide pricing,” and compliance with worldwide governments. He elaborated, stating:

We believe that there is sufficient liquidity. We believe there is pricing benchmarks. We believe there is a way to integrate bitcoin into the financial ecosystem that we are used to for ETFs, stocks, bonds and commodities.

The Current Issues With Liquidity and “Marketwide Pricing”

Cryptocurrency prices and levels of liquidity vary from exchange to exchange, which Gurbacs says throws off some investors due to the large variance from exchange to exchange. He went on to explain that there are currently over 120 exchanges, with the price of Bitcoin changing from platform to platform as aforementioned.

This is much different from the traditional/legacy assets space, where a publicly traded asset holds its values across all trading platforms.

His firm has begun to address the marketwide pricing issue, by providing independent pricing benchmarks through VanEck/MVIS’s product line. Gurbac sees this as one step in enticing more institutional investors to enter into the industry, bringing Bitcoin up to the prices he predicted earlier on the CNBC segment.

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‘Crypto King’ Still Hails Bitcoin As The Internet’s Currency

Bart Smith, Susquehanna International Group’s go-to guy for digital assets, recently took to CNBC to give his thoughts on why Bitcoin remains to be the most reliable cryptocurrency investment.

On yesterday’s CNBC ‘Fast Money‘ segment, Smith noted that Bitcoin has gained the most real-world adoption, as people are “functionally using” it.

He elaborated on that comment, stating:

If you want to own the asset that you can actually use today and that people are functionally using, it’s bitcoin. The use case for bitcoin is valid today, which is the currency of the internet.

He reiterated that Bitcoin still represents a sort of “digital gold,” allowing for it to be used as an uncensorable, cross-border and efficient value transfer tool. Smith double-downed on that statement, later expressing that Bitcoin has become invaluable as a remittance method, declaring:

They use Western Union, traditional banks; It is slow and it is expensive. And there are people that can stop you from sending that money, whether that’s good or bad. With bitcoin, I can send money. It’s fast. It’s cheap. And frankly, no one can stop me.

While comparing Bitcoin to altcoins, such as ones that propagate smart contracts, the Susquehanna trader pointed out that Bitcoin will have a tough time dropping the aforementioned use cases it currently holds.

If these are the two use cases (it has) today. It’s hard to imagine Bitcoin losing those two use cases versus the field

Melissa Lee, Host of the CNBC segment, then queried the Wall Street trader, asking him if it was actually good that volatility for Bitcoin has subsided, finding “a range that it is trading in.”

Smith referencing back to his “digital gold” statement said that Bitcoin has become the reserve currency of this industry, becoming the backbone of a majority of crypto-to-crypto trades.

Bart Smith: The Altcoin Market Is Inflated

In a later comment, the trader brought credence to the idea that the altcoin market is currently overinflated and grew due to widespread speculation from retail investors. He stated:

People got very excited about bitcoin. They got really excited about all these other tokens and use cases. And all of the sudden you saw all of these smaller tokens, as people got excited about them, massively outperform. We got way ahead of ourselves

Speaking more on the blockchain development aspect of altcoins, Smith made it widespread adoption of advancements like smart contracts and the Lightning Network “aren’t coming anytime soon.” 

This statement was given to reinforce the idea that Bitcoin is one of the only cryptocurrencies with non-speculative value.

Rising Bitcoin Dominance

Smith’s statements, although controversial in some cryptocurrency circles, may actually hold some value.

Over the past week, Bitcoin has begun eating at the market share held by altcoins, outperforming a majority of the top altcoins by over 8%

Image Courtesy Of CoinMarketCap

With Bitcoin’s relative move upwards, the industry has seen Bitcoin’s market dominance figure move from 42% last week, to 43.3% at the time of writing. Although this move may seem minimal, the cryptocurrency market is worth over $250 billion, valuing Bitcoin’s move at a much higher figure than it may first look. 

It is still unclear whether this is a market cycle or that the altcoin market is beginning to deflate. But one thing is for certain, Bitcoin will continue (or at least for the time being) to be a reserve currency in bearish markets.

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Bitcoin Debate’s Defeated Bear: Digitized Gold ‘Only Type of Crypto That Can Succeed’

American stock broker Peter Schiff “technically lost” to ShapeShift CEO and crypto commentator Erik Voorhees in a ‘Bitcoin Debate’ at the SoHo Forum July 2.

The two financial thought leaders debated about the top cryptocurrency Bitcoin (BTC) and its underlying technology blockchain, questioning the potential for mass adoption, and comparing Bitcoin and other cryptocurrencies with other asset types such as fiat money and gold.

Voorhees, the Bitcoin bull of the debate, claimed that Bitcoin will eventually become a substitute for state-backed money, while government structures would be reorganized using blockchain technology. Voorhees argues that Bitcoin is “supremely good money” praising its provable scarcity, divisibility, durability, fungibility, portability, and decentralized nature, stating:

“Bitcoin will win because there is now competition in money, and Bitcoin is the best money currently available. Because it’s decentralized, it cannot be stopped.”

Voorhees noted that mass adoption will not happen right away or all at once, arguing Bitcoin will “simply, gradually come to be used as an occasional alternative to fiat.”

Defending Bitcoin bear position, gold investor and financial commentator Schiff argued that Bitcoin is not going to succeed in the future and work as substitute for fiat money since it is not backed by anything except the “confidence” of buyers, which is mostly driven by speculation.

Schiff spoke extensively on the value-creating characteristics of precious metal assets, namely gold, arguing that the fact that the U.S. dollar was once backed by gold is what allowed it to accumulate trust over time. Schiff argued that gold does not have to compete with any other asset, including Bitcoin, which is “replicating all of the properties of gold, except the most important one –– the metal itself.” Schiff’s argument for why gold is valuable as an element is based on the fact that it is rate and “has been valued as a commodity for thousands of years.”

Schiff, like many gold advocates on Bitcoin, expressed concern about the fact that it is not possible to find out how much Bitcoin is worth in terms gold or any other physical commodity:

“It has no real value into itself as a commodity, there is no way to relate the price of Bitcoin to the price of anything else.”

Continuing his argument, the investor claimed that the existence of multiple different cryptocurrencies was a weakness, stating “there is only one gold, there will never be another gold. Schiff noted there are, however, alternatives to Bitcoin, which, according to him, have “the exactly same properties [as Bitcoin]”:

“Now there are fifteen hundred or so cryptocurrencies that can do everything Bitcoin can do. Some of them can do it better, faster cheaper. There is no limit to the number of other digital currencies that can be created.”

Schiff concluded:

“If you want to go to the future, you have to go to the past. The future of money is gold.”

The stock broker explained that if a cryptocurrency were to be backed by gold, or “by real money,” then it would be the “only type of cryptocurrency that can succeed.”

Schiff, however, agreed with Voorhees about the weaknesses of the existing fiat monetary system, claiming that it is “not going to work.” However, the investor argued that Bitcoin “is not an improvement,” saying that it is still a “speculative asset” that people buy into in hopes of earning more fiat money.

At another debate in New York in April, U.S. venture capital investor and Bitcoin supporter Tim Draper argued that Bitcoin is “bigger than the internet,” as well as a number of other major developments in human history. During the debate, the investment mogul stated his oft-repeated prediction that five years from now, people buying coffee with fiat will be “laughed at” for not using crypto.

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Bithumb Hack Does Not Change Bitcoin Fundamentals, Says Litecoin Founder Charlie Lee

The recent hack of leading crypto exchange Bithumb “doesn’t really change the fundamentals of Bitcoin” Litecoin (LTC) founder Charlie Lee stated in an interview with CNBC June 20.

According to Lee, the price drop is a typical reaction of the market to the news about the hack, and “it happens all the time,” because people get scared. According to Lee, the hack of a crypto exchange does not affect Bitcoin’s (BTC) fundamentals just in the same way as a bank robbery should not affect the price of gold:

“If the exchange does not protect the coins well enough and gets hacked, it doesn’t really change the fundamentals of the coin they are protecting.”

Considering the recent hack, Lee claimed that crypto exchanges right now are exploring and learning the ways to better protect customers’ funds. As per Lee, the process is improving, but still “there is a lot to improve.”

Lee also stressed a “paradigm shift for personal finances with Bitcoin,” meaning that people have to get used to protecting their coins, “much better than traditional finances.”

According to Lee, despite the drop by 60-70 percent over the past year, Bitcoin is still “going really well,” claiming that its network has become much stronger over the past few years. Lee says that the current price of Bitcoin seems to be “disjointed from the actual development of Bitcoin,” and suggests that the price will rebound and “come back up fairly soon.”

In the interview, Lee also suggested that the market is currently in a bear position, but it is hard to say how long will last — three to four years, or one day:

“I’ve been in this space for seven to eight years now and I’ve seen bear markets last three to four years now. So, this one could be a three to four year market or it could recover tomorrow.”

On June 20, South Korea‘s leading crypto exchange Bithumb suffered was hacked, leading to the loss of $30 million worth of cryptocurrency. The exchange had to temporarily suspend all deposits and payments. According to Coinmarketcap, Bithumb’s 24-hour trade volume has dropped to around $236 million from $374 million reported June 19, moving the exchange from the sixth to the seventh largest crypto exchange by trade volume.