Bitcoin price has somehow managed to stay afloat above USD 8,000 for the entire weekend, even if bearish signals up to yesterday seemed to be strongly in play the past week, giving hope to bulls that October may yet prove to be a month of recovery.
It even survived a late Sunday dive, when Bitcoin plunged to the daily low of USD 8,167 hours before Tokyo markets opened, as early Asian traders sought to scalp easy profits from heights above USD 8,400. Price has since slowly climbed back up, and now London is about to wake up to Bitcoin valued at USD 8,308 (CoinDesk).
In the midst of regulatory scrutiny on crypto, and previous aggressive shakes of the head from world central bankers, Bitcoin.com writes about what it says is the final trick up the sleeve of the International Monetary Fund (IMF) should traditional money fail.
The IMF’s Special Drawing Rights (SDR) is a global monetary reserve system drawn up to fill the gaps of traditional money such as US dollar and gold, allowing states and central banks to trade with or even budget through the SDR. Currently, the SDR resembles a crypto-type stablecoin, its value held by a basket of USD, EUR, CNY, JPY, and GBP. This basket composition is reviewed every five years.
The IMF claims that SDR is not just another currency, but a “potential claim on the freely usable currencies of IMF members”.
Interestingly, the last global financial crisis in 2008-2009 did not only give birth to Bitcoin, it also saw the highest-ever transaction of SDR from the IMF to governments in need. The injection of some SDR 161 billion meant that the IMF had given away almost 80% of its issuance ever just in that crisis alone, in a desperate attempt to stave off economic collapse in those countries.
It is also interesting to note that the IMF has not taken too kindly to other smaller nations attempting to issue their own currency. Last year, they strongly discouraged the Marshall Islands from creating their own Sovereign crypto, in its own attempt to break free from a US dollar hegemony. On the other hand, IMF seemed to support other central bank-issued digital currencies planned by other bigger economies.
With whispers of yet another global economic crisis underway, will we be seeing yet another issuance of SDR? The Dutch central bank (DNB) just yesterday talked about a probable fiat meltdown, and said that gold would be needed in abundance in such a case. But could the IMF’s SDF step in instead?
According to CoinTelegraph, DNB’s statement was shared on Twitter:
“[gold is] the trust anchor for the financial system. If the entire system collapses, the gold stock provides a collateral to start over. Gold gives confidence in the power of the central bank’s balance sheet. That gives a safe feeling.”
One wonders how they would feel about Bitcoin or SDF!
Meanwhile, bad guys continue to fall out of love with Bitcoin, according to the latest report from data and blockchain analytics firm Cofense. In its latest publication, it shows how “crypto sextortionists” are now moving away from asking for Bitcoin in blackmail attempts, moving instead to Litecoin.
Cofense describes a typical sextortion scam, where users are tricked into believing their computer has been hacked, along with adult search histories and webcam footage. To prevent these details from being released online and potentially embarassing them, users are asked to pay the hackers a ransom in crypto.
But now, scammers are trying to bypass email filter detection, which seems to be weeding out Bitcoin ransoms. Litecoin, for now, seems safe from filters:
“Previous iterations showed a gradual shift away from identifiable patterns and to alternative crypto currencies, in an attempt to foil SEG bitcoin-detection rules. The current emails appear to be crafted to contain very few searchable word patterns.”
To round up our daily sentiment analysis, we take you to a Blockchain Daily News article which gets up close and personal with a favorite Bitcoin bull, Tim Draper.
In their Medium post today, they shared Draper’s view of how Bitcoin mirrored a religious event he witnessed, where students of various faiths shared a common view and found a way to pray together peacefully. He drew comparisons to Bitcoin, saying:
“With Bitcoin, and the decentralization that comes with Bitcoin, geographic borders have become less relevant. No longer are we at the mercy of dictators and toll trolls to grow the world economy… in the long-term I believe with regard to business and economics, we are, more than ever, one world.”
Bitcoin may be full of colorful characters, but the interesting blend is what makes us follow the space.
Image Courtesy: Pixabay