Plenty of crypto-related news took place over the weekend. Among the major stories: Bitwise published a 104-page paper highlighting the under-appreciated efficiencies of the bitcoin trading market; BitMEX Research shed light on the Bitcoin Cash blockchain’s problematic May 15 hard fork; and, despite enjoying increasing trading volumes, LocalBitcoins announced its withdrawal from Iran.
Led by bitcoin, the cryptocurrency markets have enjoyed sizeable gains over the past 24 hours have enjoyed sizeable gains over the past 24 hours. At the time of writing, bitcoin (BTC) and ether (ETH) are trading at $8,762.6 and $268.8; a 9.5% and 7.7% increase, respectively. As for the MVIS CryptoCompare Digital Assets 10 Index, it is currently tracking at 4,175.2 (+0.6%).
‘Public Perception is Wrong’: Bitwise on Bitcoin Trading Market
Bitwise Asset Management – the leading provider of cryptoasset indexes and index funds – published a 104-page paper reflecting the ‘true’ state of the bitcoin spot trading market (i.e., what remains after clearing away fake volume).
“The modern bitcoin spot market is both significantly smaller and significantly more efficient than commonly understood,” Bitwise concluded, explaining: “it is a market that trades at extraordinarily tight spreads, with extremely effective arbitrage keeping prices in lockstep amongst all significant exchanges.”
New research from @BitwiseInvest submitted to the SEC today.— Bitwise (@BitwiseInvest) May 24, 2019
Read it here: https://t.co/8rNxypwPSj
It's a 104-page white paper expanding on our March 2019 presentation. It examines 83 exchanges for fake volume, the tight relationship of CME futures & spot, and rapid arbitrage. pic.twitter.com/bS0nBKClpc
BitMEX Research Spotlights Problematic Bitcoin Cash Hardfork
The Bitcoin Cash (BCH) blockchain’s May 15 scheduled hard fork “appears to have suffered three significant interrelated problems,” according to BitMEX Research, the research arm of leading cryptocurrency derivatives exchange, BitMEX.
“Based on our calculations,” BitMEX stated in their report, “around 3,392 BCH may have been successfully double spent in an orchestrated transaction reversal. However, the only victim with respect to these double spent coins could have been the original ‘thief’.”
The Bitcoin Cash Hardfork – Three Interrelated Incidents— BitMEX Research (@BitMEXResearch) May 25, 2019
Analysis of the incidents surrounding the 15 May 2019 Bitcoin Cash hardfork:
* Empty block bug
* Consensus chainsplit
* Coordinated & deliberate 2 block re-org, reversing 3,392 BCH of spendhttps://t.co/FD2NeOedvr pic.twitter.com/VdB0isQyTN
LocalBitcoins Outlaws Bitcoin Buying in Iran
LocalBitcoins, the world’s most popular peer-to-peer (P2P) bitcoin exchange, has officially shut off service for Iran-based users. Leading up to the ban, LocalBitcoins had been seeing consistently rising trading volumes denominated in the rial – the national currency of Iran.
Whilst it has not been confirmed by LocalBitcoins, it is strongly suspected the decision to block Iranian users was largely attributable to the United States’ escalating “maximum pressure” campaign against Iran.
LocalBitcoins’ withdrawal marks yet another major setback for bitcoin adoption in Iran. Indeed, major cryptocurrency exchanges such as Binance, BitMEX, Bittrex, and ShapeShift stopped offering their respective services to Iran-based users in recent years.