Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
More than half of the reported daily Bitcoin trading volume is likely fictitious, Forbes noted. Less regulated exchanges inflate their data more.
- According to Forbes, some exchanges inflate their daily trading data.
- The least regulated platforms are the ones that claim the most movement.
- Bitcoin could be just the visible tip of the iceberg.
More than USD $40 billion of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. have been traded on cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. exchanges in the past 24 hours, according to data from CoinMarketCap . But: could it be that this figure is an illusion?
A recent research conducted by the data analysis department of Forbes has revealed that more than half of the volume of Bitcoin traded daily is inflated by cryptocurrency platforms. The study, which was published by Forbes on Friday, came to the conclusion after evaluating 157 digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset exchanges around the world.
Extensive observation of trading volume data for the flagship cryptocurrency over the course of a day led to the conclusion that the major exchanges appear to have less movement than they report.
It is likely that more than half of all reported trade volume how much cryptocurrency has been traded over a set period, such as the past 24 hours. is false or uneconomic. Forbes estimates that the global daily bitcoin volume for the industry was [USD] $128 billion on June 14. That’s 51% less than the [USD] $262 billion that would be obtained by taking the sum of self-reported volume from multiple sources.
Forbes was based on self-reported data by the exchanges and adjusted them to reality through a quantitative and qualitative analysis methodology. It also drew on data from external trackers. CoinGecko, CoinMarketCap, Nomics y Messari to refine the analysis and ignored transactional data because of its susceptibility to manipulation.
Daily trading volume is inflated
The transaction volume of Bitcoin is shaped by factors such as the called ” wash trade”. (a way of falsifying the trading volume of an asset) and the lack of oversight over the operations of the exchanges, noted Forbes .
“ The most problematic areas with respect to false volume are companies that promote large volume but operate with little or no regulatory oversight that would make their figures more credible “, the study noted.
In this sense, Forbes indicated that the less regulated exchanges are the ones that claim the highest daily movements of Bitcoin , un motivo por el cual sus números pueden no considerarse confiables. La investigación mencionó en específico las empresas Binance , MEXC Global y Bybit The company’s business volume, noting that these account for approximately USD $89 billion of the real volume of Bitcoin traded daily, although the three together claim to move almost three times that figure.
In total, the least regulated regulation is when something is controlled by a specific set of rules. exchanges in our study account an account is essentially a whose purpose is to track the financial activities of a specific asset/ for approximately $89 billion of the actual volume (claiming $217 billion).
The investigation also points to the much-criticized commercial laundry a practice of inflating the trading volume of an asset that is often exploited to create a false impression of popularity. “ In some cases, trading bots automated software that can carry out tasks such as cryptocurrency trades. run these wash trades on tokens, increasing the volume “, the report said, adding further:
Wash trading also benefits exchanges because it allows them to appear to have more volume than they actually do, potentially encouraging more legitimate trading.
Bitcoin is just the tip of the iceberg
It is worth noting, as it does Forbes which currently there is no universally accepted method for calculating daily volume. de Bitcoin objectively. Incluso los rastreadores de datos presentan números significativamente discrepantes, lo que representa un desafío para las firmas de análisis e investigación del criptoespacio.
For example, for editing time, CoinMarketCap reflects a volume of USD $42 billion for Bitcoin in the last 24 hours, but CoinGecko puts this same metric at US$35.6 billion, while the same metric Messari at USD $7.7 billion.
This discrepancy, and thus the broader issue of inflated trade volume, is not just a problem of Bitcoin . As the study by Forbes If the data is reported irregularly for trading of the main cryptocurrency, it is possible that the same will happen for many other cryptocurrencies. tokens especially for the smallest and least watched.
“ At its best, trading volume is one of the most measurable signs of investor interest, but it can easily be manipulated to convince novice investors that it is in much greater demand than it really is. “warned the publication.
Forbes no es la primera en encontrar irregularidades entre los datos auto informados por los criptointercambios y los volúmenes de comercio “ real “. Last year, a research made by Bitwise Asset Management, which analyzed data from 81 cryptocurrency platforms, came to the conclusion that roughly 95% of the daily trading volume of Bitcoin reported in CoinMarketCap was false.
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Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash published in Canva