Blockchain Bites: Data Unions. Hard forks. And the case of a Citi analyst for $ 300,000 BTC.

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A Citibank CEO believes bitcoin could reach $ 318,000. MIT researchers categorically reject blockchain-based voting. And the latest Bitcoin Cash fork is expected to fail.

Top shelf

Technical comparison?
A Citibank executive released a report predicting that bitcoin could reach $ 318,000 by December 2021. Using technical analysis and a comparison to the gold markets in the 1970s, Citibank Managing Director Thomas Fitzpatrick, said quantitative easing could lead to a broken price move for the largest cryptocurrency by market cap. ClassicMacro, a pseudonymous Twitter account that surfaced in the report, contradicted the prediction, saying, “There is no benefit to guessing targets so far in time with TA. All we know is that the price will likely continue to rise. “

Six reviews
Fidelity Research Director Ria Bhutoria refuted six common criticisms of bitcoin in a recent viral blog post. Posted on Thursday, the corporate blog looked at supposed errors that bitcoin’s volatility means it can’t be a store of value, bitcoin sucks energy, and bitcoin fails as a mechanism for payment for everyone except criminals. She highlighted crypto settlement assurance, supply inelasticity, and decentralization. Bitcoin is growing because people recognize that it offers “perfect scarcity … irreversibility of transactions and resistance to seizure and censorship.”

Galaxy en expansion
Galaxy Digital crypto merchant bank acquired two companies as it positions itself as the ‘go-to’ crypto platform for institutional buyers. Announced Friday, DrawBridge Lending, a “white glove” crypto service, and Blue Fire Capital, a futures market maker, are now under Galaxy umbrella. Notably, DrawBridge brings more than $ 150 million in third-party assets to the company. The news came hours after Galaxy reported third quarter 2020 net profit of $ 44.3 million, well up from a loss of $ 68.2 million in the same quarter last year. .

Voted against
A new report from MIT categorically rejects blockchain-based electronic voting as a tool for any political election. Following on from a previous report detailing the cybersecurity vulnerabilities of blockchain voting, the latest study suggests that many crypto proposals – like zero-knowledge proof and authorized blockchains – add complexity and are insufficient to meet the needs of ‘a voting public. By setting aside these “higher failure tolerance” digital solutions, blockchains cannot stop voter coercion, while also introducing the lingering problem of key management. “I have yet to see a blockchain system that I would trust with a jellybean tally just in the county, let alone a presidential election,” one of the authors wrote.

Flash attack
Value DeFi joined the ranks of Decentralized Finance (DeFi) protocols operated over the weekend, with one or more malicious traders getting off with around $ 6 million worth of crypto. In what appears to be a flash loan attack, the attacker borrowed 80,000 Ether from the DeFi Aave loan platform and used it to arbitrate two stablecoins in Value’s MultiStables vault. (Flash loans allow users to borrow funds without collateral because the lender expects the funds to be returned instantly.) The attacker has since returned $ 95,000 in DAI coins. In addition, researchers from the Israeli start-up B. Protocol have found a new way to reduce debt positions on MakerDAO.

Quick bites

  • If data is the engine of capital creation in the modern economy, then its producers should unionize, argues James Felton Keith. (CoinDesk – editorial)
  • China’s crypto miners are struggling to pay electricity bills as regulators crack down on fiat trading crypto. (CoinDesk)
  • Grayscale bought an additional 15,114 bitcoin ($ 241 million) as part of its biggest raise to date. (Decrypt)
  • SEC Chairman Jay Clayton resigns months before his scheduled departure. (CoinDesk)
  • Binance will end its British pound stablecoin, an “experiment” that has clearly not been a success. (CoinDesk)

Market information

Bonds and BTC
The rising value of negative yielding bonds could catalyze further institutional bitcoin purchases, CoinDesk Markets reports, according to Omkar Godbole. Bloomberg and Barclays’ global negative yielding debt index is now worth $ 17.05 trillion, a lifetime high, a measure that measures the amount of bonds that will pay less at maturity than their purchase price. Several analysts, including John Ng Pangilinan, managing partner of Singapore-based Signum Capital, said the trend could cause investors and businesses to follow companies like MicroStrategy and Square by piling up bitcoin or other resilient assets. ‘inflation. “On our side, we are seeing an increase in the number of investors looking to earn returns by lending bitcoin,” Pangilinan said.

Stake

The fork that was not
Bitcoin Cash’s latest divide looks like a dud. In the network’s latest hard fork, two of the blockchain’s main clients, Bitcoin Cash ABC (BCHA) and Bitcoin Cash Node (BCHN), are shedding control of the sixth largest cryptocurrency by market cap.

A dispute between the parties arose after BCHA developer Amaury Séchet proposed an 8% “tax” on the profits of miners to finance the development of the network by his groups. This so-called infrastructure finance scheme (IFP has faced strong opposition from the Bitcoin Cash community, including its most prominent lawyer, Roger Ver, leading to the hard fork.

Ver said the proposal would lead to further centralization of the network, and said there were alternative ways to fund the development of Bitcoin Cash rather than a tax.

However, one day after the disputed split, it seems that Séchet’s proposal will fail. According to data from coin.dance, the BCHN chain is currently 129 blocks ahead of the starting chain with no miners supporting BCHA. If BCH ABC does not attract enough hash power to produce a viable blockchain, the ABC blockchain “would in theory disappear,” CoinDesk’s Muyao Shen reported over the weekend.

Until the situation is resolved, a number of major exchanges and crypto service providers have suspended BCH functionality. “We will re-enable send / receive once we determine the upgrade is stable,” Coinbase said, for one. Additionally, Decrypt reported that the majority of exchanges will support the blockchain that has the most hash power.

Bitcoin Cash is no stranger to litigation. The network came into being in 2017, after a controversial dispute between Bitcoin developers over block size. At the time, Roger Ver was leading a group of stakeholders who believed Bitcoin was failing as a payment system and was proposing a marginal increase in the number of transactions that could be confirmed in a single block.

Following Bitcoin’s BCH hard fork, a group led by Australian cryptographer Craig Wright wanted to further increase the block size, which resulted in Bitcoin SV (short for Satoshi’s Vision, as Wright claimed it was the pseudonymous founder of Bitcoin).

Many have criticized Bitcoin Cash’s “fork first” governance, which often introduces uncertainty into the market.

As Cointelegraph reports, Grayscale Investments’ Bitcoin Cash Trust fell $ 1.6 million following news that the crypto asset would be forking on November 15. Grayscale, like CoinDesk, is a unit of Digital Currency Group.

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