Regulation
Ode To Bitcoin, Virtuous And Fair


Bitcoin è Galant-Vomo: Bitcoin Is A Man Of Honor
The first thing to ask about Bitcoin is what it is, rather than what it is worth. Determining its value is as simple as dividing the amount you want by 21 million, with that number being closer to infinity if you value decentralization, transparency, privacy, security, innovation, inclusion, and financial freedom, but closer to zero if you are happy with centralization, poverty, censorship, banking, and indiscriminate printing of paper money.
Bitcoin is essentially a force, as is everything that nature produces. That is, Bitcoin is a new force, a first movement, a wheel that turns by itself and with an eternal cadence.It seeks, above all, three things: immutability as something honest, freedom as something necessary, and transparency as something good. It is a spinning wheel that works without the need of a spinner; a horse that gallops by itself, and whose impetus it is impossible to restrain. It is a hydra whose head has survived a thousand attempts at being removed, yet which, because it has many, or because it has none, continues to terrify those who have not taken the time to study it in order to understand it. Bitcoin is the first historical way to defend oneself from the excessive ambition of the powerful; it is the mathematical protocol which gave origin to the only completely decentralized monetary system, which for that very reason many banks, confessors and governments take it for the devil himself.
Mathematically it is silent poetry, and economically noisy justice. It is the perfect representation, in spite of its simple and concise expression, of an ingenious, deep and serious idea, which has been thought out with a view to the mathematical solution of an infinite number of problems. It is something as fair as sunlight, because it comes out so that everybody can see it, and it is there all the time, with so much strength that it illuminates some and leaves others blind. It is, in truth, the only good that strives to provide what is proper, what is due to it, and what is deserved by everyone, to such an extent that it would be easier for the earth to tolerate two suns than for the world to tolerate more than twenty-one million bitcoin.
“Yes, I will defend this proposition, pugnis et calcibus, unguibus et rostro (by punching and kicking, by scratching and pecking).” Molière ”The Forced Marriage”
Perhaps it will be believed, not without a hint of truth, that I speak of Bitcoin as a sectarian, although I am praising a mathematical protocol, and that talking about a mathematical sect is as reasonable as talking about a sect of Eucledians, Newtonians or Archimedeans. But what does it matter? Anyway, this is not a strong enough objection for me to stop, all the more so since we are talking about something big, and big things demand to be talked about in a big way. We are not, after all, “carving a mercury out of any wood,” as Pythagoras preached among his circle of followers and adepts. What we are highlighting here is that humanity has found in Bitcoin a new “what for,” which in turn solves many of the problems caused by its misguided search for the “why.” We know, of course, that this is a very difficult goal, but we also understand that where there are no difficulties there are usually no merits either.
“The Beautiful is Difficult” Plato, Hippias major, 304e
The “what for” of Bitcoin is to anchor the concept of wealth forever to a chain of open data, so that with that concept we always think of that open data, and with that data we always think of that concept. It turns out that we were born into a world governed by wealth and money, and we live in a world where people work and kill for wealth and money, but we don’t know for sure what wealth and money are. We say that wealth, which is also a force, cannot be thought of as something unlimited; we are forbidden to think of infinite wealth because it is incompatible with the concept of force. The purpose of Bitcoin, in this case, boils down to delving for the first time into the definition of wealth in such a way that its nature consists of adapting as closely as possible to the limits of its own force. It is, rather, to find an invention in which the momentary useful gains value over time, instead of losing it, as has happened throughout history with all monies; to replicate in the economy what constitutes the growth of life, which achieves more and more with less and less, and to make it a true science, which does not live changing its laws and rules all the time.
“When one considers a science to be beautiful, true, useful to the city, and entirely pleasing to the divinity, one cannot be silent about it at any price.” Plato, Laws, 821A.
We have to recognize that even today, when everyone presumes to have intelligence, only one way has been found to coin a sufficiently efficient and good enough currency, and that was only achieved with the creation of Bitcoin: a limited good that represents an incomparably greater complexity, a greater sum of coordinated elements, with which its security and divisibility becomes much more efficient and reliable. And all this in a transparent, immutable, democratic way, if you will, by the mere fact that its code. The back of its fabric is completely open, and therefore always there, ready for whoever wants to find all its virtues and defects, to improve it if they want to, or to discard it if they don’t find a real practical use for it. Hence it is said, quite rightly, that no mistakes are made with impunity among open-source developers, that envy has no place in their divine choir, and that their programs and algorithms are the most honest way they know to talk about themselves. Letters and mathematics constitute their entire campaign team. They like their path: They believe it is worth going down it, even if they might fall, and for their only salary they ask for the glory and honor of having their name or pseudonym written on each new invention. They are the ones who make masterpieces on the internet, despite the fact that even today they try to convince us that something like this can only be done in this or that American or English research institute. Thanks to them, new truths are discovered every day that, surely, would have remained unknown because nobody set themselves to the task of finding a problem and attacking it, as Satoshi Nakamoto did with blockchain… the substance of which Bitcoin is the accident, the matter of which Bitcoin is the form, the heat of which Bitcoin is the light. That is why, or because of them, Bitcoin is so simple, so easily gives rise to the compound and finally returns to the simple again. And that is why it is so similar to the ancient Greek philosophers, of whom we do not know who was the first, but who today go around the whole world without anyone wondering.
“Simplex sigillum veri.” (Simplicity is the sign of truth.) Herman(us) Boerhaave
We must agree, of course, that in all great works the first trials are not entirely perfect. It is well known that the nobler and more perfect something is, the later and slower it reaches maturity. This is exactly what is happening with Bitcoin which, in spite of its remarkable progress, is still an adolescent, maturing slowly, as all excellent things do, and perhaps it will exhaust its 21 million units before we discover even a quarter of its potential applications. A new monetary system, which is also totally decentralized, demands that its mules go slowly. Up to now we are beginning to understand its concept, and to sense that it is as valuable for man’s development as the price he is ready to pay to reach it and keep it. Of course, after we have discovered it, it will not be a big deal to find it, and the difficulty will then be to lose it, and only then will we understand that in our hands we finally have materialized a freedom dreamed of for many millennia.
“Rough is the road to the summit of dignity; but if it pleases you to climb this summit, before which fortune yields, you will, no doubt, behold beneath your feet what is held to be very high, but you will, nevertheless, reach the summit by a level path.”-Seneca, Epistles 84, 13.
The same thing happened to me with Bitcoin that once happened to me with books: a chance contact, a sentence found on a random page, the name of the author completely unknown, and the instinct that says that at last a kindred spirit has been found. For me, before it was cryptography applied to the concept of money, it was rather the discovery of an idea of the world in conformity with my own thought, which made life an entirely open book, in which men would deposit their inventions as a memorial for times to come. A little freedom and a lot more transparency was what the world needed most urgently for me. The very idea that Bitcoin contemplated both, that it stood right in the middle between the big of the universe and the small of the infinitesimal world, and that it sought it by appealing only to the rules of mathematics, was enough to make it begin to dawn what could be obtained from it: a little good sense, whose only instinct of self-regulation and self-establishment would take us out of any philosophy of poverty and despondency. The Bitcoin idea meant, at least to me, the mathematical materialization of common sense, the nature of which we sometimes don’t understand until after we have deprived ourselves of its use almost entirely. Common sense, unfortunately, often speaks to us as if it were a ventriloquist, lulling us into believing that its voice does not come from ourselves. That is why I can only speak well of Bitcoin, that mathematical tool that awakens common sense to reach the goal of freedom and transparency, in spite of so many governments that see only the devil behind it.
“How good works always give mortals cause for good words!” Euripides, Hecuba, 1238
I can’t be surprised that most governments slander Bitcoin, for, alas, Bitcoin embarrasses governments almost to the confines of humiliation itself. What hasn’t it been accused of? Of being used exclusively to launder money, of being a terrible threat to the financial order, of having no true intrinsic value, of being too anonymous and private, of being a modern version of the tulip phenomenon in the Netherlands, and so on and so forth. Bitcoin, oddly enough, is accused of exactly the same crimes that Socrates was accused of in his time, namely of not believing in the gods, of trying to introduce strange thoughts, and of corrupting the young.
Though let us remember that the Greeks were afraid of Socrates as the first men were afraid of fire and of the echo’s repercussions, and that today his name is venerated as those who condemned him to drink a cup of poison are hated. Something similar happens with the Bitcoin, which can be mixed with all the crimes and all the monetary swindles and, even so, its name will always be above, like oil above water. Every day it may be said that he has come to an end, and every day he will show that he has not even begun to live; everyday the people will be warned that because of him they will lose all their money, and every day the people will conclude that it is not that his government has left him much to lose. Everyday it will be reminded that it is too weak to be considered a currency, and every day it will prove that its hardness is not as well known as to those who daily beat it. Everyday it will be said that the Bitcoin is a perverse invention, contrary to the great inventions that humanity owes to its bankers, and that for that reason it will never rule the world, or at least not as well as they do. Every day we will be told again and again that centralization is extremely democratic, and every day Bitcoin will prove that tranquility, democracy and wealth will only prevail among men when there is a true separation between central governments and currencies. Every day, in short, a hundred million comments will be made to defend the goodness of our present monetary system, and thus it will be proved a hundred million times that our present monetary system is old-fashioned and wrong.
“We have a political regime that does not emulate the laws of other peoples, and rather than imitators of others, we are a model to follow. Its name, because the government does not depend on a few but on the majority, is democracy. As far as private affairs are concerned, equality, according to our laws, reaches everyone, while in the election to public office we do not put class reasons before personal merit, according to the prestige which every citizen enjoys in his activity; nor does anyone, by reason of his poverty, encounter obstacles because of the obscurity of his social condition if he is in a position to render service to the city.” Thucydides, Peloponnesian War, II, 37, 1.
Bitcoin is an extremely innovative idea, and an innovative idea that does not produce envy, jealousy or rivalry. The passions most capable of engendering hatred and enmity, have not existed until now and will never exist. Banks and governments, therefore, will never hold it in the highest regard, no matter how much they may have to take refuge in it during bad weather, much like under a tree in a storm from which, when the weather improves, they will want to steal a couple of branches and throw it to the ground. They will surely want to replace it with their central digital currencies, which are nothing but a simple imitation. Their only merit is to copy Bitcoin to turn it into something worse, starting with the fact that Bitcoin, like the universe, circulates at all times, while the other currencies can only do so when and as governments see fit. Thus, wanting to compare it with what governments call money is like comparing a good dog with a bad pig. It is he who is claimed by the money system, not the money system which is claimed by him, because like everything great, without anybody’s help he has succeeded in becoming something superior and incomparable. So that, just as before each country had its own currency, the day will come when a single currency will have its homeland all over the earth. Bitcoin, rather, is the ocean into which sooner or later all the rivers will have to flow, because it will be impossible for it to disappear as long as the idea of decentralization exists, nor for decentralization to exist if, unfortunately, Bitcoin disappears. Decentralization, in fact, is like the original sin: the only condition under which the man can enjoy true freedom.
And yes, all this that I have just said I am sure someone has already said; and it is better this way: it is the proof that I am telling the truth.
This is a guest post by Anderson Benprado. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.
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Regulation
Popularity of Crypto Investments Makes Case for Regulations, Australian Securities Watchdog Says – Regulation Bitcoin News


High rates of crypto ownership, with purchases often made on advice from Youtube and Facebook, make “a strong case for regulation,” according to the Australian Securities and Investments Commission. The watchdog backs its stance with poll results showing nearly half of retail investors in Australia keep one coin or another.
Australian Securities Regulator Pushes for Rules to Protect Cryptocurrency Investors
Pressure on Australia’s new Labor government is mounting, to put an emphasis on consumer protection as it takes over a task from the preceding conservative government to adopt a regulatory policy regarding digital assets like cryptocurrencies. A years-long study on the matter, initiated by the former cabinet, is yet to answer the relevant questions of whether and how to do that.
According to a survey conducted by the Australian Securities and Investments Commission (ASIC) in November, 44% of over 1,000 retail investors admitted to holding cryptocurrency. The results indicated that crypto is the “second most popular investment after Australian shares,” Reuters noted in a report. A quarter of the polled investors who held digital coins said they were their only investment.
Statistical data suggesting high rates of cryptocurrency ownership in Australia were dismissed last year by a top central bank official who referred to the numbers as “implausible,” the news agency remarks. But ASIC believes they make “a strong case for regulation.”
Another argument for that, besides the high popularity of crypto, is the finding that 41% of respondents sought investment insight online, with a fifth of those polled naming the video sharing platform Youtube and at least one in ten pointing to the leading social media network, Facebook. Only 13% gained their info from a financial adviser or broker.
ASIC Chairman Joe Longo expressed the Commission’s concerns about the large number of participants in the survey who reported investing in what he described as “unregulated, volatile crypto-asset products.” The high-ranking official further elaborated:
There are limited protections for crypto-asset investments given they have become increasingly mainstream and are heavily advertised and promoted. There is a strong case for regulation of crypto-assets to better protect investors.
The survey was conducted in the same month when bitcoin (BTC) and ether (ETH), the two most popular cryptocurrencies, hit record highs, Reuters remarks. The prices of both coins have since dropped by about two-thirds, while the Australian stock market is down about 6%.
Part of the reason for that can be found in interest rate hikes that have likely convinced investors to exit speculative assets. Their retreat helped cause the latest crypto market slump and led to the bankruptcy of a number of businesses built around cryptocurrencies.
The popularity of crypto among Australian investors has attracted the attention of other government agencies as well. Earlier this year, the Taxation Office listed crypto-related profits among several priority areas where efforts are needed to ensure correct reporting. The authority reminded taxpayers they need to calculate any capital gains from the sale of coins and tokens and declare it with their tax returns.
Do you expect Australia to adopt restrictive regulations for cryptocurrency investment? Share your thoughts on the subject in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Ms. Li
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Regulation
How Tornado Cash Sanctions Impact Bitcoin – Bitcoin Magazine


This is a transcribed excerpt of the “Bitcoin Magazine Podcast,” hosted by P and Q. In this episode, they are joined by Dylan LeClair and Sam Rule to talk about the recent Tornado Cash sanctions by the U.S. Treasury.
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Dylan LeClair: Tornado cash is an open-source, Ethereum mixing wallet, like Samourai Wallet or Wasabi (which has already started to become OFAC compliant and blacklisting certain addresses). These are just ultimately a collaborative bitcoin transaction. People call it a coin-mixing solution or whatever they try to call it to try to criminalize it. It’s just a bitcoin transaction; it’s just a collaborative spend. That’s just information. You could make an argument that it’s against free speech in a way, but the State’s not gonna really accept that.
It’s just not a good precedent. The founder, who is just a builder of software is getting potentially canceled because he created something that the U.S government didn’t like and they blamed Korea.
It was pretty ridiculous, but just a pretty important day, in general, and not great for the privacy movement, in general, but we’ve known it’s been coming. We’ve known that it was just a matter of time.
Q: I wanna play devil’s advocate. I’m not asking this question because I think any action is justified, I am just a vehicle to share a different idea. Let’s ignore the Tornado Cash, but let’s say this actually happened to Do Kwon or Mashinsky. Would your feelings be different?
LeClair: Let’s distinguish a fraud, Alex Masinsky, and think what you want about whether Do Kwon was building something in earnest or knew it was all a Ponzi all along. I’m not gonna make that call here. But in terms of what Alex Masinsky and Celsius did, it was fraudulent, so it’s different than someone who’s building software. It’s non-custodial, like Tornado Cash is a non-custodial Ethereum mixer. You send in a transaction — I don’t even know the exact technicals as well as I do with bitcoin and mixing — but you send in eth and it’s a smart contract that executes and mixes it up and you can’t tell what’s the input and what’s the output is the base of it. Sorry if I bundled the response a little. The founder or the creator of this software, Roman Semenov, doesn’t actually touch the eth. There’s this really petty eth versus bitcoin flame war going on, where all this hype around the merge and potentially the .eth Twitter cult will go against the Bitcoin Maximalist Twitter cult. It’s all pretty dumb and I think it’s missing the bigger point that a clamp down is coming.
Whether Ethereum has its merits or is riding on the backs of Bitcoin is anybody’s judge. I align probably more with the Bitcoin Maximalist viewpoint. Screeching that everything’s a scam over the past decade hasn’t really served anyone well or protected anybody. People still go for the scams and so maybe we Bitcoiners should fine tune our message a little bit. Even though I’m pretty bearish on all the other altcoins against Bitcoin over the next year, five years, 10 years.
I think Ethereum is tremendously overvalued at 50% of bitcoin’s market cap, but I think that calling for more regulation into the labeling of Ethereum as a security is just probably the wrong way to go about it. To keep bringing it back here.
Sam Rule: To go back to your question, is it justified if it was some fraudulent activity or Mashinsky or something like that they’re shutting down. I guess it doesn’t really matter. If you do it for one, you’re gonna constantly find the gray area to do it more and more. It just gets back to the point that it’s just two different systems completely and are always gonna be because stablecoin are gonna be larger centralized issuers, no matter what chain, whether it’s Tron or Ethereum that they’re on, they’re gonna run into those issues. They still operate. Stablecoins by definition are a blockchain, dollar version of the financial system that we have today.
I don’t think it really matters in terms of punishment, whether it’s illegal activity or not. Now, when you think in Bitcoin terms and the innovation, what it’s meant to be is that, that you’re gonna have so many conversations. If Bitcoin is successful over the years and has so many issues with trying to shut down rails for all sorts of reasons from the system that the United States has had or where the Western world really has had very strong financial control over that. They’re gonna be losing that power, essentially. They’re not gonna be wanting to give that up in any such way.
Again, it’s just like one, probably very small example, whether I think it was North Korean money laundering, that’s gonna come up and probably many are gonna fight and say, that’s very justifiable to shut that down. It just goes back to the censorship-resistant capabilities of all this and what’s truly censorship resistant and when Bitcoin grows and it scales in these situations, is it gonna prove that it’s really truly censorship resistant? To me, that’s probably the largest risk: How much influence over governments and businesses between blacklisting addresses and trying to shut down some sort of circular economy, how much are they gonna be able to do? How much are the tools on Bitcoin gonna be able to withstand that?
LeClair: I think on this note, it’s pretty interesting. All of the macro craziness we’ve seen over the last year, I’m not just talking about like financially, but the geopolitical tension that’s increasingly being built with the United States and China and all of the sanctioning of Treasury reserves. We’re a long way away from bitcoin being anything from a shortfall asset, a 24/7/365 inverse VIX. S&P ticks down or up, bitcoin is beta on that and it’s just this reflection of the liquidity tied and all that extra speculation sloshing around.
If we do reach this point of bitcoin at $500,000 and it’s equivalent to gold, even bigger than that, bitcoin becomes liquid enough. It becomes the enemy of monies, but not at a level of drug dealers and small speculators, like it was in 2011 and it is now in 2022, but in say however long it takes, it’s gonna be liquid enough for adversarial nations to hold it in their reserves as a treasury [asset].
Bitcoin mining and the reality of the game theory of digital money and “not your keys, not your coins” at nation-state levels. It’s like, it’s not your system. And ultimately, I think the game theory of bitcoin long term is that people, institutions and eventually sovereigns are gonna opt into something where they have the rules in their favor. Whether it’s absolute scarcity, rising production cost and you get to decide that there’s no more than 21 million coins by running your own software. The bet on bitcoin is the bet that people converge upon that because there’s no other alternative. You can’t use USDC and you can’t use USTs (U.S. Treasuries) if you’re Russia or China.
So what if China invades Taiwan, and I’m not gonna pretend and larp here, like I’m some geopolitical expert and know what Xi Jinping’s gonna do with Taiwan. I don’t know, but I do know that the trend of increasing hostility between the biggest institutions and sovereigns on the planet is going to increase and the trust in this international monetary order that has been built up for the last 80 years since Bretton woods … and post-1971, that order became free-float fiat currencies. It’s this experiment; we’re really only 51 years into it. What happens when all of this boils to head and massive competitive basement and fraying of this international monetary order, which we arguably started to see over the last two years at increasing pace and probably in the next three to five? Bitcoin probably is there.
I’m pretty short term bearish. I think equities have a leg down and that we still haven’t seen the biggest volatility event in this financial meltdown, but on the topic of censorship resistance, I think one of the biggest bull cases is thinking about that geopolitical game theory, looking at why gold itself failed as global money and global money between sovereigns at the biggest level. Why that failed and why that trust, that link, that relationship failed and then look into Bitcoin or look into Ethereum, look into USDC and evaluate every asset on the planet in terms of what’s gonna fill this kind of need: this global need for a neutral reserve asset.
My bet, my conclusion is Bitcoin, but that’s me personally. I guess everyone has to make that decision for themselves, but that’s my thesis here.
Regulation
Uzbekistan Moves to Block Foreign Cryptocurrency Exchanges – Regulation Bitcoin News


Authorities in Uzbekistan are restricting access to online crypto trading platforms based outside the country and not registered under its laws. A presidential decree obliges citizens and local companies to only use digital asset exchanges licensed by the government of the Central Asian nation.
Uzbekistan Takes Steps to Prevent Crypto Trading and Custody on Foreign Platforms
Uzbekistan’s National Agency of Perspective Projects (NAPP) has registered a spike in activities of online platforms providing crypto-related services to Uzbekistanis without the necessary license. The regulatory body says these facilitate trading of cryptocurrencies and request personal information without complying with a requirement to have their servers installed in the country.
In a recent statement, the agency pointed out that such platforms “do not bear any legal responsibility for carrying out operations with crypto assets, cannot guarantee the legitimacy of transactions, as well as the proper storage and confidentiality of the personal data of citizens of the Republic of Uzbekistan.” In light of these findings, the regulator has restricted access to their domains.
The announcement highlights that the government of Uzbekistan has made consistent efforts to improve the regulatory and institutional framework in the crypto space. A decree signed by President Shavkat Mirziyoyev in 2018 defined the types of business activities pertaining to digital assets like the mining of cryptocurrencies and the provision of services related to their circulation.
Providers whose activities are subject to licensing include mining pools, cryptocurrency exchanges and depositories, as well as other crypto companies that offer individuals or legal entities services for the purchase, sale, exchange, storage, issuance, placement, and management of crypto assets.
Regulations adopted this past April allow Uzbekistanis and businesses based in their country to acquire, sell, and exchange cryptocurrencies exclusively on domestic platforms, starting from Jan. 1, 2023. NAPP now emphasizes this doesn’t mean local firms and citizens are granted the right to conduct such transactions on foreign platforms before that date.
So far, Uzbekistan has licensed only one cryptocurrency exchange. Operated by the South Korean entity Kobea Group, Uznex launched in January, 2020. Last fall, the National Agency of Perspective Projects issued a warning for Uzbekistani crypto traders to avoid unlicensed exchanges, which leaves them with a single legal option.
The agency has also reminded all residents of the country that they can perform crypto transactions on registered exchanges with the national currency, the som, and sell crypto assets to non-residents for foreign fiat currency. The NAPP urges Uzbekistan’s citizens not to use the services of online platforms that have not obtained a license to operate in the republic and to report them to law enforcement.
Do you expect Uzbekistan to license more cryptocurrency exchanges in the future? Tell us in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Felix Lipov
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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