Bitcoin experienced one of the most frontal attacks in its history: the ability of the FBI to reverse and recover a transaction executed by Colonial Pipeline to a criminal gang. With that, the greatest selling point for Bitcoin was muted. Yes, that crusading that it is untethered to the government does not hold water now. The operation was a technical finale: “The FBI was able to access the “private key,” or password, for one of the hackers’ bitcoin wallets.”
Bitcoin’s price slipped again Tuesday. The reason for the move was unclear, however it may be related to concerns over security of the cryptocurrency after U.S. officials managed to recover most of the ransom paid to hackers that targeted Colonial Pipeline.
Court documents said investigators were able to access the password for one of the hackers’ bitcoin wallets. The money was recovered by a recently launched task force in Washington created as part of the government’s response to a rise in cyberattacks
Yes, many things happened here but the most consequential is this: the FBI took over the wallets at the exchange. And when you remember that exchanges are under the control of governments since banks can only give them bank accounts only after they have been registered, you will agree with me that what the FBI has done here is monumental.
It is simple: find ways to trace the transfer, and get to the final exchange destination. Work with the government there or possibly work with the exchange or maybe hack the exchange, and you can get your money back!
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Yet, the biggest risk to Bitcoin’s valuation is China. As China weans alternative coins in its nation, for the arrival of e-yuan at scale, expect gravity to continue to work on Bitcoin. Of course, this does not mean that BTC will disappear. What will happen is this: the ephemeral exuberance of parabolic rising “currency” will fade.
China is on the path to bring full scale on e-yuan even as it works to stop Bitcoin and other cryptos in the nation: “The Chinese government is set to launch another digital Yuan lottery to help its ongoing digital currency trials, happening in the capital of Beijing. The Beijing Local Financial Supervision and Administration announced yesterday that the government will distribute 40 million digital yuan ($6.2 million) to Beijing residents as part of a test run for the new digital currency.”
My model has been this: 20% off peak due to e-yuan. 10% off due to e-euro. 30% off due to e-dollars. So, if you run the numbers, the stable state of BTC is absolutely lower than its current $32,000 since only E-yuan has been applied.
Shine your eyes!
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