Goldman Sachs warns the clients about the crypto bubble

Goldman Sachs published a 108-page long document with speculation about the unfortunate future of the cryptocurrencies
23 January 2018   776

The document titled “(Un)Steady as She Goes” was sent out by the famous American financial corp to warn the investors about the grim future awaiting cryptocurrencies. Reportedly, it was sent out to the wealthiest clients of The Firm to round up the events of the last 12 month surrounding Bitcoin and other prominent coins.

The paper was comprised by Sharmin Mossavar-Rahmani and Brett Nelson, both of whom are senior officials at the Investment Strategy Group Goldman Sachs. While the fearmongering and naysaying are ripe throughout the document, there are several good points to consider. While they admit, that technology behind the crytpocurrencies, namely blockchain, is valuable and useful for the future development in different spheres, they go to say that the craze around the whole topic of crypto is overrated and will blow over like any other flight of fancy in the past has done.

As usual with crypto fearmongering, there is a comparison with Dutch “Tulip mania” which we've already seen done a thousand times. There is also a point made about “Stock bubbles” for companies who announced some type of affiliation with blockchain and cryptocurrencies. The Long Blockhain (formerly a Long Island Ice Tea company) has been on the news because of that and has seen their share price rise rapidly. The same goes for the former sport bra company now proudly presented as the Crypto Company. There is no guarantee, that such kind of buff will survive the test of time, the authors point out.

And their main gripe is, actually, not the crypto as a whole, but Bitcoin in particular, because while the advantages of cryptocurrency are apparent, such as transparency and traceability, ease of execution globally, safety of ownership. But Bitcoin doesn't provide anything from this list, on the contrary, the rising TX fees, long settlements, and hackers' recent interest all really contribute to the scepticism, expressed by Mossavar-Rahmani and Nelson.

US Authorities to Sell $4.3M Worth Seized BTC

As reported, the Bitcoins were seized during different federal investigations
18 October 2018   155

The US Federal Penitentiary and Marshals Service has announced an auction, during which 660 Bitcoins will be sold, previously confiscated by law enforcement agencies. The current market value of the coins put up for sale is about $ 4.3 million, CoinDesk reports.

Bitcoins offered for sale were seized during federal criminal, civil and administrative investigations.

The auction will be held on November 5, and to participate in it, you must register no later than October 31 and make a deposit of $ 200,000.

The trades will be divided into two parts and include the sale of six blocks of 100 BTC and one more block of 60 BTC. Auction participants will not be able to view other people's rates or change their own.

The Office clarified that part of the assets put up for auction includes Bitcoins, which were seized during the recent investigations into the cases of the traders Teresa Tetley and Thomas Mario Costanzo. Teresa Tetley was sentenced in July to a year in prison on charges of trading in cryptocurrency without the necessary license and laundering money obtained from drug trafficking.

The Marshals do not report which part of the bitcoins seized from Tetley and Costanzo is put up for auction, however, it was previously known that 40 BTC were withdrawn from the first, and 80 BTC from the second.

Two previous major auctions for the sale of confiscated bitcoins were held in the United States in January and March of this year. In the first case, 3813 BTC was sold, in the second - 2170 BTC.