China Dump, Robinhood Pump

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The China FUD has probably had its last chance to touch Bitcoin in any way. Any fool reacting to whatever ban coming from China for Bitcoin in the future deserves to stay poor. According to smarter than I crypto investors, it seems that during this latest ban of China on Bitcoin, the no.1 crypto by market cap has dipped 5% in one day.

Whenever the communist ghost tool was taken out of the closet, in the past, we used to have some 10% drop for Bitcoin, but gradually the market is starting to become immune to a country that's been banning everything from video game consoles to Brad Pitt himself.

We still have a long way to go before we can call ourselves a mature market in this regard...

Five days ago Cointelegraph announced that Robinhood will allow its users to finally withdraw actual crypto from their Robinhood accounts. We don't have an exact date for when the wallets will be ready to use and apparently there's a waitlist for that matter, but there's a question we should ask ourselves...

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Does Robinhood have actual Bitcoin available for withdrawals for when that happens?

I bet not... Or at least my intuition tells me that most of the theoretical holdings some are having on their Robinhood accounts are pretty similar to cash into bank accounts. If all of a sudden all the users would decide to withdraw there wouldn't be enough funds to fulfil that. I believe the same goes for Revolut, PayPal and others...

It makes a lot of sense though that before Robinhood will enable withdrawals and probably deposits too on their app, they'll have to buy from somewhere all the crypto necessary to cover a potential mass withdrawals from the app.

That will probably lead to a pump on the price of Bitcoin, or they might use OTCs and avoid all of that. A pump has definitely come to my mind after all the dump the dumb money has engaged in once the China FUD came out. There's some place on earth though where Bitcoin is already seen as digital gold and that's Deutsche Bank official blog.

“I could potentially see Bitcoin to become the 21st century gold.”

-Marion Laboure, Analyst at Deutsche Bank Research

Well, of well, we are entering "an era" when most of the institutions that were bashing Bitcoin a few years ago are turning towards it. Have they already filled their bags? Probably... Does this narrative count as another potential catalyst for a super cycle? You bet it does and I'm more confident than ever we're in a super cycle. This bull market looks nothing like the past ones.

We're on a whole different level when it comes to mass adoption and acceptance for cryptocurrencies, the development taking place across the board is undeniable, and we can say we're still in the early days of this disrupting piece of technology. The next decades are going to be life changing for the ones using blockchain technology and seeing its potential.

Thanks for attention,
Adrian

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7 comments
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I see this as an attempt of China to promote agressivelly their digital Renminbi and trying to shuffle the deck to get the other options out.


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With or without the promotion, the citizens will be forced to use it.

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chinese citizen. yes, but they will promote it in countries depending of chinese aid, like half of African countries.

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The robinhood part got me thinking. Did you read any data on this ? Or maybe an article developing your idea ?
Great read though 😉

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Nope. I remember I read that article a few days ago that I linked in the post. I have the feeling that most of the apps such as Revolut and PayPal that offer crypto trading services are definitely not holding the total amount of crypto their users have in their virtual wallets on these apps. It would be nice if there was any on-chain data linked to a Robinhood wallet that could validate my theory. It is a theory after all, I have nothing to fully back my thinking, just my gut feeling. Knowing that not even USDT is fully backed by USD I find it hard to believe these apps would have their clients portfolios backed for withdrawals. I believe we get to see in crypto what banks have been doing for years and years.

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Indeed, I agree with you for the Revolut / Paypal and therefore Robinhood lack of "real crypto" to back their positions.
Quite bullish as you say. Concerning USDT, yes we found out it misses some backing but overall I was expecting even less backing.

Concerning BUSD or USDC, they seem fully back which makes the USDT issue kind of irrelevant for the medium-long term as we have alternatives imho.

My fear is the Government crackdown on stablecoin because stablecoin mean they lose control... and they do not like this xD

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I think the same as a previous comment, China wants to impose its digital currency, and any product that is obligatorily released in its country with the amount of population that it has in its territory and the world network, can be implied in record time in the digital world, no It would cover everything, but if it could be noticed, taking into account that not only does it want to control the digital world, it also faces the dollar, which is most likely to apply its technique to solve that situation that arises, on the other hand, The world of cryptocurrency is becoming more and more independent from centralized systems, achieving with this its own decision of governance and governance, thank you very much for this post, I loved it.

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