Matthew Lesko, the US author who made himself a name in the 90s writing books on how to get “free money” from the United States government, claimed that cryptocurrencies are a scam and Bitcoin is a “gamble,” talking to CNET in an interview on Feb. 20. Lesko, who runs his own website, YouTube channel and various podcasts, all dedicated to to the topic of obtaining federal grants from the US government, says that “many people are interested” in Blockchain and cryptocurrencies. Lesko recommended these people to “stay away” from digital currencies unless they “have money to lose.” Lesko argues that cryptocurrencies are actually a “scam”, since they are not backed by anything and are not regulated, unlike the US dollar. He believes that “if there’s no regulation, you get screwed.” In 2004 the New York State Consumer Protection Board criticized Lesko’s commercials and books, stating that many of his readers did not get the “free money” he promised. According to Lesko himself, Blockchain experts today implement the same “exaggerations” he used in his 90s “free-money” infomercials.
Elon Musk has revealed his personal cryptocurrency holdings. The billionaire CEO of SpaceX and Tesla told Twitter followers that he in fact has never purchased cryptocurrency, and only holds a small amount of Bitcoin gifted by a friend. The tweet was made in response to scam posts on Twitter claiming to be Mr Musk requesting Ethereum. It’s an issue that has plagued the Twitter network, with scammers impersonating blockchain figures such as Vitalik Buterin in attempts to steal users cryptocurrency. Twitter users are warned to never send cryptocurrency to anyone claiming to be hsoting a giveaway or event. Whilst the businessman may not own cryptocurrency, it was reported in 2016 that he was not against the technology. When appointed to Trump’s team of advisers he declared that Bitcoin was in fact a “good thing”, although he did not elaborate in great detail. Elon Musk’s lack of involvement with cryptocurrency is interesting, as decentralized technology firmly aligns with his professed aspirations for a better human society. Whether his involvement will change as blockchain technology develops remains to be seen.
Ripple price (XRP) rose significantly in the last two weeks amid its penetration in the financial sector; the price is now struggling to extend the momentum. What’s going on? XRP price dipped for the fourth straight session on Wednesday, and the price plunged below $103. There was no particular event or market report that could change the bullish trend; the downside movement signifies a major price correction – possibly the end of the Bull-Run. Bulls had pushed ripple and other cryptocurrency prices in the last two weeks, with the reports of softer regulatory actions from the United States and South Korea. Along with the support from a broader rally in digital currency prices, stronger confidence from payment services companies and banks added to the growth in XRP price. Ripple has achieved several milestones in the past two weeks, including the partnership with Saudi Central Bank for internal and cross-border payments. The dip in cryptocurrency prices shows that investors are trying to capitalize on the gains they had generated in the last two weeks.
Bitcoin’s bull run failed to break the resistance level of $12000; BTC fumbled for the second straight day and wiped almost $1800 off in the last two days alone – investors are now looking for the new support level. It seems more bearish comments may have a part to play in the current selloff – Bitcoin found the bottom around $6000 after shedding more than 70% of its value. Though South Korea has announced its support of cryptocurrencies, pessimistic comments from England and the arrest of BitFunder founder Jon Montroll in the United States raised traders concerns. Is this affecting bitcoin price? Bitcoin trades just over the $10,000 mark today, while Ripple and others are declining at a quick rate. U.S. regulators had announced their support of legal cryptocurrency trading when they met with the U.S. Senate banking committee early this month. However, the regulators had proclaimed that they will not let illegal activates through cryptocurrency trading. The U.S. regulators were found steadfast in their claims. The U.S. Securities and Exchange Commission (SEC) and the Federal Bureau of Investigation (FBI) arrested Jon Montroll, who is the owner of bitcoin-denominated stock exchange, BitFunder.
ShapeShift, a cryptocurrency exchange, has been pulled into the Bitcoin Cash (BCH) versus bitcoin (BTC) debate by partnering with the @BitcoinCom wallet that exchanges BTC for BCH. ShapeShift has stated via a tweet there was a miscommunication in its latest announcement concerning its partnership with the @BitcoinCom Wallet. ShapeShift stands by its offering to provide its API integration services for the wallet, but it also stands by its position to refer to bitcoin as bitcoin, and not Bitcoin Core. Some have criticized the marketing practices of Bitcoin.com regarding BCH. Two days ago, ShapeShift announced that it has integrated its full API to support Bitcoin.com wallet user exchange between BTC and BCH and vice versa. It noted the Bitcoin.com wallet app became available in mid 2017 and more than 1.7 million wallets have been created on the platform. The ShapeShift integration expands the features in allowing the wallet’s users to exchange BTC for BCH. Bitcoin.com, which provides a free wallet, states on its website that the Bitcoin Core network is in trouble due to high fees and slow transaction times, and that Bitcoin Cash (BCH) is the upgrade that solves these problems, and provides a guide for people to learn more about Bitcoin Cash. The website clearly states that it supports both BTC and BCH.