Bitwise White Paper: Fake Trading Volumes By Exchanges Do Not Impact BTC Prices (#GotBitcoin?)
American crypto investment manager Bitwise released a paper claiming that fake trading volumes by crypto exchanges do not impact bitcoin’s (BTC) price. Bitwise White Paper: Fake Trading Volumes By Exchanges Do Not Impact BTC Prices (#GotBitcoin?)
Released on May 24, the white paper is an extended version of Bitwise’s March presentation alleging that 95% of volume on unregulated exchanges is fake.
Published on the official website of the United States Securities and Exchange Commission (SEC), the new white paper is based upon the research that Bitwise Asset Management presented to the SEC on March 17, 2019, as specified in the document.
In the white paper, Bitwise reiterated the main points from the presentation released in March, including evidence that almost 95% of reported trading volumes in bitcoin by exchanges are fake or non-economic in nature.
However, the new report also proves that those fake volumes do not affect price discovery in the real bitcoin spot market. The white paper demonstrates that effective arbitrage systems keep accurate prices on real global bitcoin spot exchanges, eliminating sufficient pricing discrepancies “in a matter of seconds.”
As part of the research, the new white paper also reiterates the fact that a great number of advances and tools in the bitcoin market, such as the launch of regulated bitcoin futures, the entry of large algorithmic market makers and bitcoin custody improvements, “dramatically improve the efficiency” of BTC markets.
The research also cites data from popular crypto analytics website CoinMarketCap, arguing that the volume numbers reported by the website and other data aggregators in the industry are “surprising because they are wrong.” Bitwise state that CoinMarketCap data are “wildly inflated” by a mix of fake volume and wash trading that “dramatically skews the public’s view of the bitcoin market in a negative way.”
Earlier today, crypto media outlet The Block published its own research stating that up to 86% of total reported crypto trading volume is “likely fake,” based on correlation with exchanges’ websites traffic.
Following Bitwise’s fake volumes report in March, CoinMarketCap promised to rearrange rankings of member exchanges.
On May 1, CoinMarketCap announced an alliance called the Data Accountability & Transparency Alliance to provide “greater transparency, accountability, and disclosure from projects in the crypto space.” At the time, the firm warned that it will remove crypto exchanges from its calculations if they fail to provide obligatory data by June. Cointelegraph has recently released a follow up on the matter. Bitwise White Paper: Fake
Bitcoin Information & Resources (#GotBitcoin?)
JPM Strategists Defines Bitcoin’s Intrinsic Value (#GotBitcoin?)
JPMorgan Chase With It’s JPM ShitCoin Wants To Take On Bitcoin (#GotBitcoin?)
Bitcoin To Be Exposed To Millions With Upcoming “60 Minutes” Segment (#GotBitcoin?)
Grayscale To Investors: Drop Gold (#GotBitcoin?)
‘Craig Is A Liar’ – Early Adopter Proves Ownership Of Bitcoin Address Claimed By Craig Wright (#GotBitcoin?)
Tether Ordered To Freeze Transfers To Bitfinex By New York Supreme Court, Bitcoin Flash Crashes
HTC Smartphone Will Run A Full Bitcoin Node (#GotBitcoin?)
Send Bitcoin Transactions Without Internet Connection
Bitcoin’s Lightning Comes To Apple Smartwatches With New App (#GotBitcoin?)
E-Trade To Offer Crypto Trading (#GotBitcoin)
US Rapper Lil Pump Starts Accepting Bitcoin Via Lightning Network On Merchandise Store (#GotBitcoin?)
Bitfinex Used Tether Reserves To Mask Missing $850 Million, Probe Finds (#GotBitcoin?)
21-Year-Old Jailed For 10 Years After Stealing $7.5M In Crypto By Hacking Cell Phones (#GotBitcoin?)
You Can Now Shop With Bitcoin On Amazon Using Lightning (#GotBitcoin?)
Afghanistan, Tunisia To Issue Sovereign Bonds In Bitcoin, Bright Future Ahead (#GotBitcoin?)
Crypto Faithful Say Blockchain Can Remake Securities Market Machinery (#GotBitcoin?)
Disney In Talks To Acquire The Owner Of Crypto Exchanges Bitstamp And Korbit (#GotBitcoin?)
Crypto Exchange Gemini Rolls Out Native Wallet Support For SegWit Bitcoin Addresses (#GotBitcoin?)
Binance Delists Bitcoin SV, CEO Calls Craig Wright A ‘Fraud’ (#GotBitcoin?)
Bitcoin Outperforms Nasdaq 100, S&P 500, Grows Whopping 37% In 2019 (#GotBitcoin?)
Bitcoin Passes A Milestone 400 Million Transactions (#GotBitcoin?)
Future Returns: Why Investors May Want To Consider Bitcoin Now (#GotBitcoin?)
Next Bitcoin Core Release To Finally Connect Hardware Wallets To Full Nodes (#GotBitcoin?)
Major Crypto-Currency Exchanges Use Lloyd’s Of London, A Registered Insurance Broker (#GotBitcoin?)
How Bitcoin Can Prevent Fraud And Chargebacks (#GotBitcoin?)
Why Bitcoin’s Price Suddenly Surged Back $5K (#GotBitcoin?)
Zebpay Becomes First Exchange To Add Lightning Payments For All Users (#GotBitcoin?)
Coinbase’s New Customer Incentive: Interest Payments, With A Crypto Twist (#GotBitcoin?)
The Best Bitcoin Debit (Cashback) Cards Of 2019 (#GotBitcoin?)
Real Estate Brokerages Now Accepting Bitcoin (#GotBitcoin?)
Ernst & Young Introduces Tax Tool For Reporting Cryptocurrencies (#GotBitcoin?)
Recession Is Looming, or Not. Here’s How To Know (#GotBitcoin?)
How Will Bitcoin Behave During A Recession? (#GotBitcoin?)
Many U.S. Financial Officers Think a Recession Will Hit Next Year (#GotBitcoin?)
Definite Signs of An Imminent Recession (#GotBitcoin?)
What A Recession Could Mean for Women’s Unemployment (#GotBitcoin?)
Investors Run Out of Options As Bitcoin, Stocks, Bonds, Oil Cave To Recession Fears (#GotBitcoin?)
Goldman Is Looking To Reduce “Marcus” Lending Goal On Credit (Recession) Caution (#GotBitcoin?)
Our Facebook Page
Your Questions And Comments Are Greatly Appreciated.
Monty H. & Carolyn A.