Former CFTC regulator Bart Chilton has strong words for the cryptocurrency industry: accept oversight or die.
The former commissioner of the Commodity Futures Trading Commission (CFTC) called in 2016 for then-President Obama to regulate cryptocurrencies. He is now claiming that bitcoin-holders with deep pockets are manipulating the bitcoin price. He noted that bitcoin price had climbed more than $800 following its dip below $3,000. He stated:
There’s no rational reason for such moves other than some are efforting (successfully, to date) to buoy prices and calm otherwise edgy and excitable bitcoin investors.
Ignore the bad grammar. Is "efforting" even a word? My spell checker says no.
Doesn't the claim that bitcoin price is "manipulated" imply that there should be some way to establish a "fair value" for bitcoin, other than the price that the market will bear?
In my understanding, bitcoin price is set by the market, 24 by 7, 365 days per year, whatever price the market decides to trade bitcoin at is essentially the "fair value".
In order to manipulate, you have to manipulate away from "fair value".
The manipulators are either forcing price higher or lower than what it otherwise should be at so-called fair value.
It may seem mundane, but this seems like a major breakthrough. Or a major moment in bitcoin transition to mainstream.
When a former US financial regulator implies that there is a "fair value" for bitcoin, we just had a major breakthrough.
Certainly not consistent with Jamie Dimon view of bitcoin as being worth nothing.
STEEM On!!
DaveB
https://www.cryptocoinsnews.com/bitcoin-price-volatility-due-regulatory-blind-spot-claims-fmr-cftc-official/