The current situation allows Bitcoin to prove its potential

Social Capital CEO: This is the time for Bitcoin to prove its potential

Chamath Palihapitiya, CEO of venture capital firm Social Capital, believes that the current situation allows Bitcoin to prove its potential. He discussed the situation in the financial markets in an interview with Morgan Creek Digital founder Anthony Pompliano.

Palihapitiya believes that, unlike currency markets, Bitcoin is too volatile to be a useful tool. However, cryptocurrency has the potential to become a long-term security asset.

“I think Bitcoin needs a moment like this to become relevant,”

said the CEO of Social Capital.

“At present it is still a speculative instrument and it is too speculative to be reliable. In the next 10 years, when the path of Bitcoin will take shape, it will be able to create a standard similar to gold. It will create an index, but unlike gold, which is owned by central banks, Bitcoin is an instrument that has a value determined by the participants in the ecosystem and that everyone owns, “

explained Palihapitiya.

Bitcoin can benefit from the crisis monetary policies

Bitcoin investor and supporter, Raoul Pal, explained Twitter that the “deflationary wave” that the global economy is currently registering can offer Bitcoin benefits. The measures implemented by the Federal Reserve could generate negative interest rates on bonds and other long-term investments. The implications of negative interest rates could be serious, as it will “destroy the pension system” and destroy the value of money.

This could prove positive for three specific assets – Bitcoin, gold and the US dollar. Raoul Pal elaborated:

“Dollars, gold and Bitcoin will benefit the most. Later, much later, the effect will be limited to gold and bitcoin only. This is a forecast from 18 months to 36 months. Expect many counter-trend moves along the way. We will have to navigate these stormy times. Good luck”.

In this situation, traditional investors will be forced to focus on decentralized assets such as Bitcoin to maintain their long-term profits.

Bitcoin.com dismisses half of its employees

The Candor technical professional network has compiled a list of crypto companies that have been affected by the coronavirus pandemic. According to this report, Bitcoin.com has fired half of its team.

One of the reasons behind the decision could be the effects that the proximity of the Bitcoin halving has on the crypto ecosystem.

Specifically, a large number of Bitcoin Cash miners have opted to mine Bitcoin during this period. The hash rate in the BCH network dropped from 5 EH / s in mid-February to 3 EH / s at the end of March. The situation is all the more interesting as half the block reward of Bitcoin Cash will take place next week.

Apparently, Bitcoin.com expects the company’s profits to drop significantly over the next period and have taken steps to compensate.

SEC accuses two Americans for fraud with TeshuaCoin token

The SEC has blamed a former Texas pastor and his wife for cheating hundreds of investors with a TeshuaCoin-based cryptocurrency.

Larry Donnell and Shuwana Leonard were accused of injuring 500 people of nearly $ 500,000. They convinced people to buy shares in a non-existent company, an alkaline water-based token, and invest in a non-existent Bitcoin mining operation.The two Americans used two companies, Teshua Business Group and Teshuater, in their scams.

They promised “short-term profits of up to 3,000 percent.”

The SEC investigation shows that the two convinced investors to purchase the TeshuaCoin token, which was based on Teshuater’s bottled alkaline water.

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