Bitcoin Against the Argentine Peso, Kik Sues SEC, Facebook’s Crypto Woes | Hodler's Digest

Bitcoin Against the Argentine Peso, Kik Sues SEC, Facebook’s Crypto Woes | Hodler's Digest



Picture this. You're in Berlin, you're walking down the
street, you see someone dressed like me and you think: "Huh, I wonder what
they are up to?" If you guessed spending 3 days watching Bitcoin's
price rise and fall on TradingViews then you would be correct. I'm Molly Jane and
this is your weekly Hodler's Digest. Let's take a look at the latest market updates. The much rumored Facebook Coin is likely to
face an uphill battle for adoption, given the aging demographics
of Facebook’s user base. The so called GlobalCoin, which is deemed
to launch in 2020, aims to tap into Facebook’s two billion-strong user base to bypass traditional
banking networks and revolutionize global payments. However, according to a recent report by cryptocurrency
research firm Diar, the mass adoption of the new coin might be under question given that
Facebook’s average user is aging, and therefore less likely to embrace blockchain technology. In fact, 55% of Facebook
users are currently over 35. Moreover, since 2012, the amount of people
in their retirement age on Facebook has doubled. In the U.S, Facebook is no longer the favorite
social media platform for teens. According to the reported data, barely half
of U.S. teen population is active on Facebook, while 85% use Youtube and a growing
preference towards Snapchat. The demographic characteristic could be an
obstacle for Facebook coin to gain traction, as an old audience is on average not familiar
with crypto and blockchain. On the other hand, young users tend to lack
the financial resources to use the new currency in significant volumes. Despite Bitcoin’s high volatility, in Argentina
people are increasingly trusting the main cryptocurrency more than their national currency,
the Argentinian peso. As reported by the Financial Times last week,
Bitcoin had hit an all time high in Argentina, reaching 394,000 pesos per coin, which is
even higher than the value it had in 2017 prior to the crypto market crash. The Argentinian economy has long been affected
by staggering inflation, which brought the local currency to depreciate heavily
against the U.S. dollar. Analysts say that further devaluation of the
peso is due to the upcoming presidential elections, which are scheduled for October this year. In particular concern to investors is the
potential return of previous president Cristina Kirchner, widely criticized for her unorthodox
economic policies. Some experts say that investors are more inclined
to trust the current president, Mauricio Macri, who obtained a loan from the IMF
to fend off the monetary crisis. We reached out to market analyst Carlos Maslatón and
asked him to give us his perspective on the situation. So Carlos, Bitcoin and the Argentinian peso
have been showing an inverse correlation. While Bitcoin is surging, the peso is crashing. Some analysts see the worsening of the peso as directly
connected to the upcoming presidential election. Do you agree? But can cryptocurrency help
the Argentinian economy to recover? That’s what venture capitalist
and Bitcoin bull Tim Draper thinks. Back in March, he even recommended to
President Macri that he legalize Bitcoin. However, some say the best solution to combat
staggering inflation is through adopting stablecoins pegged to the dollar, or to other kinds of
stable assets such as gold. We talked about this with Alex Melnikhov,
CEO at stablecoin-focused firm Equilibrium. So Alex, in theory, could stablecoin technology
help Argentina to overcome this inflationary crisis and, if so, how? A national cryptocurrency is not the magic
stick which can solve any problem within the country. And the reasons for such kind of volatility
and hyper inflation actually applies to more fundamental reasons within the economy itself. The Venezuelan government issued the Petro,
a stablecoin pegged to the country’s oil reserves, in order to fight inflation, but
the results were mixed at best. So what went wrong with the Petro? Venezuela is actually an example of an attempt
to enforce some processes within the crypto market to make some artificial cryptocurrency
backed by local governments and backed by some physical assets like oil. And attempts of this kind are supposed to
fail, because there's not too much value in this cryptocurrency and in these assets. To build up robust infrastructure where you
can prove that this oil is actually backing Petro is rather difficult. It also can hardly be inspected. Since many criticize stablecoins for being
too centralized, as some still depend on traditional financial institutions, does this mean that
stable always means centralized? For sure stable doesn't always mean centralized. Now there are decentralized models of stablecoins
appearing on the market which become solid alternatives to Tether and centralized models
of stablecoins which are backed by physical dollars or even commodities which are sitting
on some accounts or some centralized custodies. Let's take the example of Equilibrium which
is the framework for decentralized EOS-backed stablecoins which we are
working on right now. It represents the robust and reliable store
of value and decentralized stablecoin on EOS blockchain, so that any market participant
can make sure that at every moment each single stablecoin is backed by liquid cryptocurrency
sitting on smart contracts. A new type of cryptocurrency scam has been
detected, this time on Youtube, among the most popular platforms
for accessing cryptocurrency content. As reported by digital security publication
Bleeping Computer, scammers are uploading videos which trick viewers into downloading
a non-existent software dubbed “Bitcoin generator”, claiming that it can multiply
Bitcoin. By following the link in the video description,
gullible users download the program which is in fact a malware called Qulab Trojan. This particularly insidious malware is programmed
to steal specific information from computers, including saved credentials and histories,
but also specific types of files. After gathering the data, the trojan sends
them to the scammer through Telegram. The program also hijacks clipboards, which
means that the scammer can monitor them for certain data and when it's detected, he can
swap it out for different data. According to the researchers, scammers are
using this method to have people transfer cryptocurrency to their accounts. The scam was discovered by a researcher known
as Frost, who has been following the hackers’ activities for over two weeks,
reporting them to Youtube. However, each time one of these accounts are
taken down, the scammers open up a new one and upload the malware again. Crypto soldiers unite! It is time to rise and defend crypto from
the evil claws of the SEC! You will not lose your life nor will you need
swords for this battle, all you need to do is donate to a noble crowdfunding campaign. The firm behind Canadian messaging app Kik
has launched a crypto crowdfunding campaign to support a battle… in the courts with
the SEC over its 2017 ICO. The campaign was announced by Kik founder
and CEO Ted Livingston and his lawyer Patrick Gibbs, on a podcast this week, the 2019 version
of Winston Churchill’s “We will fight them on the beaches” radio announcement. The hope is that “a lawsuit would eventually
result in a new Howey test for crypto tokens, to determine which ones are a security.” The official website “Defend Crypto” allows
supporters to contribute in 19 cryptos, including BTC and even DAI. So far the conversation has gone like this: Kik: We are a crypto! SEC: Most ICOs are securities,
prepare to die!! Or, at least, face an enforcement action. So Kik is willing to face being kik’d to the curb as they are fighting the good fight. The firm says they have already spent
$5 million in crypto on the case. Big time crypto investor Fred Wilson claims
to have donated an undisclosed amount to the cause. Punishing U.S sanctions have led North Korea to launch
cyber attacks, according to a senior FBI official. As we have talked about on this show before,
Pyongyang is likely behind numerous ransomware campaigns that involve cryptocurrencies. The Wannacry cyber attacks back in 2017 are
perhaps the most notorious, 200,000 computers were infected with ransomware
in 150 different countries. And now, according to Tonya Ugoretz, the FBI
official who spoke on the matter: “Sanctions are having an economic impact, so cyber operations
are a means to make money, whether it’s through cryptocurrency mining or bank theft.” Many government institutions were caught flat
footed when it came to the rise of crypto, and this extended to
the crime that came with it. However, now, institutions like the FBI are
better equipped to face these types of crimes head on. Erin Joe, director of the Cyber Threat Intelligence
Integration Center under the U.S. Director of National Intelligence, said the following: “There is a huge effort in the FBI, and
also several other entities across government, looking at ways to stop malicious activity
(surrounding) cryptocurrency.” It is still unclear how successful nation
states are in circumventing U.S sanctions using crypto. Sanctions themselves are not without controversy,
it has been argued, for example, that the extreme poverty and economic turmoil in Venezuela
is a result of U.S sanctions rather than a result of Maduro’s failed policies. So, is Kik the right horse to back, or is
supporting the #defendcrypto campaign more like kicking a dead horse? Let us know in the comments. And as always, remember
to like, subscribe and hodl.

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About the Author: Maximilian Kuhn

14 Comments

  1. Bitcoin is really giving a run and am loving it. Glad I got some at $7000+. Now I've seen little profit. Ethereum and Veil has also given me little and with time am hoping for more run.

  2. We are all waiting for the outcome of all these speculations on the Facebook coin. Rather than dwell on that, am keeping my eyes on Veil privacy coin and Harmony.

  3. So much speculations on this Facebook coin even the coin is not launched yet. Crypto community should try to focus more on the project already at hand. Projects that need more developments. I still believe some of them like Veil, upcoming coins will do well.

  4. i love how you say some analysts say this and some analysts say that to frame a question,. but we never get to know who these mysterious analysts are who your quoting for all we know your just pulling stuff out of the air just to create a point , nice mainstream media tactic ! Never give references but assume first !

  5. I must be getting too old as I don't get the costume today ,what's with the blue lines over your eyes ? Someone please explain.

  6. The American law system is crazy, if it costs 5M$ or more to sue the SEC. it should be free. But good luck, kik. It's time for the SEC to get a kik in the Ass.

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