Dan Held, director of growth at Kraken, discusses with David Lin, anchor for Kitco News, how likely it is that Bitcoin, the largest cryptocurrency in the world, is experiencing market manipulation.
“The Bitcoin protocol was made, inherently, to be decentralized and very resistant to any form of centralized attack or manipulation. So the protocol itself is extremely stable. I mean, the protocol can survive nuclear warfare, the Bitcoin protocol can survive part of the internet going down,” Held said.
Securities are prone to market manipulation if they are illiquid or have a very uneven ownership profile.
“Bitcoin is more liquid than Apple, and Apple is one of the most highly traded stocks in the U.S., or the world,” he said. “A lot of people do a bad analysis of [ownership] where they look at on-chain balances and they go oh, the Gini coefficient of Bitcoin is corresponding to these addresses that I see and they hold certain amounts of Bitcoin. One of those addresses can represent 50 million customers like Binance, or millions of customers like Kraken.”
For more information on Tether and stablecoins, watch the video above. Follow David Lin on Twitter: @davidlin_TV (https://twitter.com/davidlin_TV).
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