054 – The truce between the U.S. government and Binance has finally arrived; after a week in which it seemed that bitcoin and the cryptomarket were on the brink of the abyss.
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This positive news is due to the formal request by the world’s largest investment firm, Black Rock, to open a fund in which people can invest in bitcoins without having to buy or sell them on the cryptomarket. All of this did nothing but boost prices, lifting bitcoin from the alarming $24,800 to which it had fallen, to take it 12% higher in three days, to $26.5K.
While this was going on, Friday was the deadline for the prediction made by a cryptocurrency guru, who had bet on March 20 that in 90 days bitcoin would be worth U$S 1,000,000 per unit and that if he lost the bet he would pay the million dollars.
The subject in question is Balaji Srinivasan, a guru and enthusiast of the cryptocurrency world, was the one who, last March 20 on Twitter, anticipated that bitcoin would be worth one million dollars per unit 90 days later. The forecast that on June 20 bitcoin would trade at one million dollars per unit did not come true in the end. On that day it barely reached $26,500.
He claimed that “while he was making this bet, USA was printing millions of $ without backing which I ask many to think about and this is where bitcoin fanatics, its militants and founders stand as enemies of the political, financial and banking establishment of the current capitalist system”. The bitcoiners promote the replacement of dollars and any other currency by the use of bitcoin.
The argument is that bitcoin is managed and policed by its own users through the blockchain network and not by a Central Bank run by politicians who print money without backing and generate inflation for their own benefit.
As bitcoin is an ownerless computer software that has been operating automatically for more than 10 years, does not recognize borders or nationalities and is programmed for self-regulation, it does not need the sovereignty of any country or the regulation of any government to function efficiently.
That is why bitcoiners say that bitcoin is monetary freedom, the end of the monopoly of currencies in the hands of the elites. With this we can understand a little better why China repressed and banned the cryptocurrency market and why in the United States an all-out battle has been unleashed with an uncertain prognosis.
The conflict unleashed by the U.S. Securities and Exchange Commission (SEC) against Binance put BTC, and cryptocurrencies, on the brink of a new cryptowinter if not on the verge of its first ice age.
The biggest problem is that the SEC (Securities and Exchange Commission), as it is known in the United States, has taken Binance to court, accusing it of operating without an authorized license, deceiving its customers, engaging in fraud and taking billions of dollars abroad.
Without hesitation, the SEC asked the intervening judge to freeze all Binance’s assets. Such a measure was an atomic bomb because Binance concentrates almost two thirds of the cryptocurrency operations in the world.
In response, Binance quickly said that if the assets were frozen, it would close its doors. The judge in charge, instead of resolving the issue, sent them both to seek a settlement. And that agreement, which came out a few days ago, was the one that gave the cryptomarket some breathing space and kept it away from an inevitable end.
Is the conflict between the U.S. government and Binance over? No, on the contrary, the conflict continues, but both agreed that while this fight is defined in court, the cryptocurrency exchange will continue to operate.