Bitcoin

Do not Blame Bitcoin for Manipulation, its the PoS, Suggests Craig S Wright

Allegedly, manipulation has been present in the cryptocurrency world on a scale greater than what the general public thinks. It is one of the reason why institutional investors hold back from investing in the world of cryptocurrencies. The United States Securities and Exchange Commission (SEC) has also raised concerns regarding manipulation in the digital currency world several times.

The SEC has not been approving a bitcoin exchange-traded fund (ETF) for quite some time now. Concerns are made regarding valuation, liquidity, custody, arbitrage and potential manipulation and other risks associated with the cryptocurrency market. Manipulation, being one of the major concerns, is the center of all the talks regarding the market. It was stated by the regulatory body regarding potential manipulation in the crypto market that:

The Commission has also discussed concerns relating to the risk of fraud and manipulation in cryptocurrency markets in orders denying exchange proposals to list the shares of commodity trusts that would hold cryptocurrency. In addition, a number of recent media reports have highlighted a range of possible vectors for potential manipulation of cryptocurrency markets. Although some funds may propose to hold cryptocurrency-related products, rather than cryptocurrencies, the pricing, volatility and resiliency of these derivative markets generally would be expected to be strongly influenced by the underlying markets.

Craig S Wright, a well-renowned Australian computer scientist and businessman is of the view that bitcoin was initially created become a stable money immune from political manipulations. It was stated by Craig in a tweet that:


But as we see today, bitcoin is allegedly prone to manipulation by some big whales in the crypto market. It has deviated from its original vision that was presented forward to the general public.

Upon inquiry by BlockPublisher concerning manipulation of bitcoin by big whales as, “But it [bitcoin] is itself prone to manipulation by big whales, no?”, Craig stated that,”No. That is PoS.”

So all in all, it seems that its not the fault of bitcoin itself. The digital currencies provide many possibilities for the future that cannot be denied. So, instead of blaming bitcoin itself for possible manipulation, the underlying framework employing different algorithms (PoS) must be analyzed.

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Ahsan Khalid

News editor of BlockPublisher, an electrical engineer with majors in software development. Ahsan takes the engineer's approach for reporting legislation around the blockchain industry. Email: ahsan@blockpublisher.com or editor.news@blockpublisher.com

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