• Bitcoin breaks the USD 7,000 level for the first time in weeks as bullish moves begin to become more certain
  • Binance and CMC confirm Binance acquisition of CMC, a move the CEO says is really because of the large userbase
  • Max Keiser says that if gold is the wealthy’s toilet paper, then Bitcoin is the poor people’s equivalent

Bitcoin continued in its slow yet steady ascent today, recording a daily high so far of USD 7,212 (CoinDesk) to break through the next resistance level momentarily. Although the first test of that level resulted in an immediate bounce, bulls will hardly be perturbed as the trend has been slowly going up and Bitcoin is still trading right now around USD 6,700 levels about 10% more than this time yesterday at 6.50pm UTC.

Binance, meanwhile, has broken its silence about its CoinMarketCap (CMC) takeover that took place yesterday, saying the move simply made sense as they had the most users. The original news emerged on April Fool’s Day, making people wonder if it had truly happened, since CMC itself appeared not to confirm nor deny the report. But today, Binance CEO Changpeng Zhao finally spoke about what he calls “by far the largest” deal his company has made.

The crypto exchange is considered one of the world’s largest, and it is of little dispute that CMC is the world’s largest data and market aggregator for cryptocurrency and digital assets, although its reputation is plagued by constant allegations of using unfair and manipulated data submitted by other exchanges.

Zhao told CoinDesk that the deal was actually finalized on 31 March, although it had been months since both companies reached a verbal agreement. CMC’s extensive data on prices, volumes and other metrics for now 5,290 assets have been a common entry point for retail investors ever since it launched in 2013. Its huge user base, says Zhao, is really what makes the acquisition a logical one.

He explained: “It’s a really good website and I think we can help grow it further… CoinMarketCap has more users than any other product in the crypto space. Even though their money generation mechanism is not as strong as Binance, they do have the users – it’s a very valuable platform.”

At the time being, there are no plans for developing the platform and it will remain independent from Binance, although there are already whispers in the cryptosphere about what conflict of interest could do to the relationship. CoinDesk reports that some analysts see CMC as a potential marketing channel for Binance, and this could then help steer prospective customers toward the exchange. Zhao, however, sees it rather as a simple purchase of a cash-flow positive asset.

Famed crypto influencer and Bitcoin maximalist has his own bullish Bitcoin news to share today, claiming in his latest edition of the Kaiser Report, that Bitcoin is what poor people will view as toilet paper.

Of course, he means that in a good way, the way toilet paper has become a precious commodity in recent times of the coronavirus pandemic crisis. And he means to say that people will be flocking to buy the digital asset in these times of crisis simply because the traditional alternative — gold — will be out of stock. Only billionaires and the wealthy will be able to access gold as a safe haven asset, and once stocks are exhausted, only Bitcoin will remain.

Kaiser explained:

“I predict — and this is not only the ultimate use case but the ultimate irony — that once people realize that they cannot get gold, they’ll start flocking en masse into Bitcoin.”

Last week, Bloomberg reported that the gold industry was experiencing a huge spike in demand, and that it was “facing unprecedented turmoil” due to that. Reports in the same week emerged that some banks, like ABN AMRO in the Netherlands, had even frozen gold accounts of its customers, forcing them to sell it back to the bank by this week.

Gold has shot up over 10% this week to a high of USD 1,629. Unusual or the new norm for safe haven assets?

 

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