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Mysterious “Bitcoin Man” Gives Away BCH Around Bakersfield, California

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Few things are better in life than free money. One of those things is free Bitcoin, and that’s exactly what residents of Bakersfield, California are getting thanks to a mysterious “Bitcoin Man.” Or are they? 

Is this some type of marketing stunt, a billionaire giving back, or something else?

Bitcoin Cash Man Gives Away $1,000 in BCH To Randoms Who Scan A QR Code

Bakersfield residents have begun to notice a series of stickers pasted all over the city – on subways, or on posts and poles along the sidewalk These stickers have a QR code, that if scanned, immediately sends the user a sum of Bitcoin Cash.

“I called the news and then I sent the bitcoin app for their contact information and email saying hey I just got this weird payment. I scanned it on a pole which is kind of sketchy,” said Indiana London, a local resident, according to a NBC affiliate news station.

This mysterious, self-proclaimed “Bitcoin Man” operates through a public Instagram account where they claim to be giving away “$1,000 in Bitcoin Cash” that’s hidden in “plane [sic] sight.”

RELATED READING | BCH SETS ALL-TIME LOW AGAINST BTC — AND ANALYSTS ARE STILL BEARISH

The stunt appears to be a promotion put together by Bitcoin.com to raise interest surrounding its wallet services and Bitcoin Cash. Backers of Bitcoin Cash believe it to be the superior version of the first-ever cryptocurrency, hence why the person behind the scavenger hunt calls himself the “Bitcoin Man,” rather than “Bitcoin Cash Man.”

Users who are lucky enough to stumble upon one of these QR codes will receive BCH, not BTC, regardless of the claims of giving away Bitcoin.

BCHUSD Weekly | Source: TradingView

Bakersfield Residents Stumble Upon Free Crypto Scavenger Hunt, Remain Skeptical

Regardless of anyone’s personal choice between BTC and BCH, free cryptocurrency is free cryptocurrency, and residents of Bakersfield can claim a piece of the $1,000 pie.

Still, those who have learned of the scavenger hunt either by seeing it in person or through the local news, are skeptical, and rightfully so. The cryptocurrency market has been at the center of several high profile scams recently that mainstream audiences could have caught wind of.

RELATED READING | EVERYTHING YOU NEED TO KNOW ABOUT THE CRYPTO SCAM BEHIND TWITTER HACKS

People have also been conditioned to be leery of anything that appears to be too good to be true, especially when there doesn’t seem to be a catch involved.

But the catch here is simply to spread Bitcoin Cash (BCH) awareness and onboard users to the Bitcoin.com wallet service, which is perfectly harmless marketing and promotional efforts from the company behind the Roger Ver-led website.

bitcoin cash bchusd

It’s working too, as its already taken off on social media and has reached the airwaves on local news channels. Whether or not this leads to adoption of Bitcoin Cash is another story, but it’s a fun promotional idea nonetheless that certainly has non-crypto users talking.

Featured image from DepositPhotos, Chart from TradingView



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Bad call? Bitfinex bears closed a block of Bitcoin shorts before the drop below $32K

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Bitcoin price is still in a rut, trading near $33,000 and trapped in a downtrend that just seems to get worse with the passing of each day. As the price slumps, analysts have consulted with several technical and on-chain metrics to explain the price collapse, but none of these have picked up on the exact reason. 

One area of interest has been the sharp rise in short positions at Bitfinex in the past week. Traders are placing exaggerated importance on these Bitcoin (BTC) margin shorts as if they are predictors of the current market crash. Still, as Cointelegraph previously reported, analysts forget that Bitcoin margin longs are usually much larger.

On June 18, longs outnumbered Bitfinex shorts by at least 22,800 BTC, but 87% of the short positions were closed before June 22. Currently, margin longs are 43,850 BTC higher than the amount shorted.

While those shorts are usually savvy traders, it is unlikely that they knew in advance that Chinese banks would prevent their clients from engaging in activities involving crypto trading or mining.

More importantly, these bearish positions were built while MicroStrategy was buying $500 million in Bitcoin after a successful senior secured note private offer. To make things worse, Michael Saylor’s business intelligence firm announced the intention to raise another $1 billion by selling stocks to buy Bitcoin.

Let’s take a look at how these courageous shorts fared.

Bitfinex margin shorts (blue) vs. Bitcoin price in USD (orange). Source: TradingView

On June 6, shorts increased from 1,380 to 6,700 at an average price of $36,150. Three days later, another 12,180 shorts were added when Bitcoin was trading at $37,050. Lastly, between June 14 and 15, shorts increased 6,000 to a 25,000 peak while Bitcoin averaged $40,100.

By looking at the Bitcoin prices when those short position increases took place, it is reasonable to assume that the 23,500 contract increase (green circles) had an average price of $37,625.

Related: Traders search for bearish signals after Bitcoin futures enter backwardation

Traders closed positions before BTC crashed bel$32,000

These short positions were steadily closed over the past three days when Bitcoin was already trading below $37,000. However, 17,000 short contracts had already been closed by the time the price plunged below $33,500. Therefore, it is implausible that the average price was below $34,500.

No one would complain about gaining 8%, shorting the market to generate a $73 million profit. However, it is essential to note that on June 16, when Bitcoin reached $40,400, these shorts were underwater by $65 million.

This analysis shows how even highly professional traders can go deep underwater. There’s no way to know if this trade would have been profitable had the crackdown on China not aggravated Bitcoin price or if MicroStrategy managed to raise the $1 billion before the price drop.

If anyone still believes in market manipulation, at least there’s comfort in knowing that pro traders can face drastic losses as well. However, unlike us mortals, whales have deep pockets and patience to withhold even the most rigorous thunderstorms.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.