But to what extent, asks Forbes, can investors trust the information shared by cryptocurrency exchanges and online brokers about bitcoin transactions?
A phenomenon that is often decried is the ubiquity of so-called fictitious trading in the United States, a maneuver that creates the illusion of a large volume of buying and selling transactions in order to make people believe that an asset is growing in popularity and driving up its price. . These fictitious trades are carried out by robot traders at a time when insider investors are spreading favorable rumors.
Thus, estimates of the volumes of bitcoin transactions vary greatly. According to CoinMarketCap, the daily transactions of the cryptocurrency are $32 billion, but CoinGecko values it at $27 billion, Nomics at $57 billion, and Messari at $5 billion.
Above this uncertainty floats the fear that cryptos are insolvent, fears confirmed by the bankruptcies of Voyager and Celsius.
After evaluating 157 crypto parquets in the world, Forbes draws the following conclusions.
The fact that crypto transactions are fake does not necessarily negate the value of Bitcoin. In a recent article, Mark Casey, portfolio manager at Capital Group, listed some of the virtues of Bitcoin. Although bitcoin has no intrinsic value like gold, it has the advantage that the supply is limited, it cannot be censored, it is difficult to confiscate it. These are interesting qualities when you consider that more than half of the world’s population lives in authoritarian regimes where they can be denied access to the banking system – something Justin Trudeau allowed himself to do during the trucker episode in Ottawa.
In the same article, Douglas Upton, an analyst at Capital Group, believes that the bitcoin shortage is artificial and the result of a deliberate decision. It is ineffective when it comes to transferring money over the Internet, but its main purpose. First of all, its value is entirely due to the fact that people only buy it because they hope that other people will continue to buy it at a higher price. “For me, it looks a lot like a pyramid scheme,” he says.
In another recent article, a Forbes columnist comes to the defense of Bitcoin. During a stampede where everyone is questioning the intrinsic value of the famous cryptocurrency, Clem Chambers discovers that its intrinsic value stems from a challenge she poses to rentiers in a strong position, namely banks. First, he notes, thanks to the pressure of this world’s bitcoin, transfers of funds that used to take three days are suddenly instantaneous. This is just one instance of Bitcoin destroying countless market abusing oligopolies. “Cryptocurrency is the death of gatekeepers,” he says, “and that’s why gatekeepers don’t like cryptocurrencies. »