Reasons to Be Bullish About Bitcoin & Other Cryptocurrencies, According to Prominent Economics Professor

Panos Mourdoukoutas, an economics professor at the University of Pennsylvania, has argued that there are “a couple of signs” that the current cryptocurrency market rally could be “sustainable.”

Mourdoukoutas, who earned his Phd from the Stony Brook University, noted in a Forbes post (published on February 21st) that digital asset prices may continue to increase because the latest market rally “extended to the entire cryptocurrency chain.” Mourdoukoutas pointed out that the value of “only seven cryptocurrencies out of the top 100” depreciated in the past week.

Commenting on the recent surge in cryptoasset prices, Michael Noel, the CEO of Blockchain Consultants, remarked: 

Interestingly, it appears that the momentum behind the recent Bitcoin rise comes more from fiat and stablecoins than from other cryptocurrencies. This move from fiat currencies shows at least some consensus that BTC value, is better long term than in traditional currencies.

Bitcoin Usage Has Been "Really High Recently"

Noel added that the latest digital asset rally may also be partially attributed to increased enterprise interest in the crypto market. Established financial service providers and organizations including Western Union, the leading money transfer company, has been working closely with crypto firms such as American fintech Ripple Labs - in order to expedite cross-border payments.

Nasdaq, the world’s second largest stock exchange, recently introduced a new bitcoin (BTC) and ether (ETH) tracking index. Meanwhile, Mastercard has been working with crypto payments solutions provider, Stellar - in order to make it easier to send money globally.

Bitcoin acceptance rates also appear to be increasing as Mati Greenspan, the senior market analyst at eToro, a leading social trading platform, revealed recently that BTC usage has been “really high recently.” Additionally, Greenspan mentioned that Google searches about bitcoin and other cryptocurrencies have picked up again.

JPMorgan Coin May Have Helped Legitimize Crypto Industry

Jeff Ramson, the founder and CEO of PCG Advisory, Inc., a company “dedicated to adding value in the small-cap, micro-cap and blockchain/cryptocurrency marketplace”, remarked:

Each day we are hearing of more well-known fiduciaries, banks, funds, etc. investing into crypto/blockchain infrastructure, and I believe Bitcoin is the proxy for most who want to have exposure to the crypto asset class, while these markets develop.

Ramson continued: “While not significant to the price of Bitcoin, in reality, [the introduction of JPMorgan’s own cryptocurrency or coin] has also given additional credibility to the space, which is helping with the price of Bitcoin; and I believe, this acceptance will help sustain the crypto asset class for the long run.”

Luxury Cars and $15 Million in Crypto Seized in Chinese Arbitrage Scam Bust

Michael LaVere
  • Chinese authorities seized $15M in crypto and several supercars following scam ring bust.
  • The group was allegedly operating an arbitrage scam that promised users fake Huobi Tokens. 

Chinese authorities have reportedly seized more than $15 million in crypto-assets and $2 million in supercars after busting up an arbitrage scam selling counterfeit tokens. 

According to a report by China’s Ministry of Public Security, police in the city of Wenzhou arrested 10 individuals connected to operating a fraudulent cryptocurrency scheme. The report claims the arbitrage group was scamming victims using blockchain smart contracts to generate fake cryptocurrencies. 

Following the bust, authorities seized bitcoin, ether, and tether worth over 100 million yuan ($15 million). The report also claims police seized several supercars, including a Ferrari and a McLaren valued at more than $2 million, in addition to the luxury villa in which the scammers were staying. 

The arrested individuals had reportedly operated a smart contract scheme since 2019, which advertised a blockchain product that claimed to generate Huobi’s native token HT. Unsuspecting consumers were promised the tokens would generate arbitrage opportunities worth a return of up to 8%. 

One victim, identified as Li in the report, first notified police after joining a Telegram group belonging to the scam artists. 

Li told authorities, 

Simply put, you send one unit of ETH to a designated address, you will receive 60 HT. And then you can sell it to gain the difference.

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