- Former CEO of PayPal claims Bitcoin it’s a colossal pump-and-dump scheme
- Chinese police seizes 600 computers used to mine cryptocurrencies
- Bitcoin closes its crucial long-term resistance, is it time to see a pullback?
Cryptocurrencies have thrived recently and today those trends seem to be continuing even as global stocks have gone off the boil because of higher market rates in the US. Moreover, digital currency traders seem to play down the newest revelations from former CEO of PayPal, Bill Harris, who outlined a really gloomy outlook for Bitcoin. According to him Bitcoin is “a colossal pump-and-dump scheme, the likes of which the world has never seen”.
He focused on three areas: means of payment, store of value and intrinsic value underlining that there are few places where Bitcoin and other cryptocurrencies are accepted, and even as they would be implemented in other places their outstandingly high volatility make them useless as a means of payment. Because of high price swings he perceives virtual currencies as far less reliable and trustworthy than ordinary banks and brokers. Finally he recalls that Bitcoin has no intrinsic value as opposed to other assets such as shares, and its market value hinges on people thinking where the price could go.
China is one of the major centres for cryptocurrency mining, hence the latest news reported by the state agency Xinhua does not appear to be so surprising. Namely, Police of Tianjin, the Chinese city localized in the north, seized as much as 600 computers used to mine Bitcoin after the local power grid operator spotted abnormal electricity usage. The agency said that eight high-power fans were also confiscated which combined was the largest power theft case in recent years. Let us remind that cryptocurrency activity in China shrank over the past months on the back of a broad-based crackdown on virtual currencies, but it’s unclear how much of crypto business has moved abroad or been shut down.
Even as Bitcoin has been rising lately it does not mean it has a smooth road going forward, it actually seems to have a bumpy road ahead. The cryptocurrency has gotten back to its 200DMA after bottoming out nearby $6500. Therefore one may suspect that bulls may find it hard to break above this line strengthening the case for a corrective pullback back toward a bullish channel. That said, should the price close above its 200DMA it would pave the way for a supply zone at around $11750.