Binance has decided to compensate users who lost money on their investment during an attack on the DeFi project Cover Protocol.
The Attack in Brief
Cover Protocol, a DeFi project, was attacked on Dec. 28. The hacker managed to freely generate the project’s native COVER token and swap those tokens for ETH, DAI, and WBTC.
The attacker was able to steal about $4 million worth of cryptocurrency in this way. The funds have been returned by the “white hat” hacker responsible for the attack.
Though the incident has ended, it has done lasting damage to COVER’s market value, which fell from $10.77 to $4.66 in just hours. Binance was among the exchanges that halted trading in response to the attack, possibly contributing to the token’s declining value.
Binance Will Compensate Traders
Now, Binance has announced plans to give $10 million to users who hold the project’s COVER token on its exchange. It will distribute $10 million in Ethereum (ETH) and and Binance Coin (BUSD).
In an announcement, Binance expressed concern “that a large number of Binance users who bought COVER on Binance…would have their tokens become worthless” as a result of the attack. Though Binance has no relationship with Cover Protocol, it does list the project’s COVER token, meaning that it has good reason to keep COVER’s market value healthy.
Compensation will be drawn from Binance’s SAFU fund. This fund was previously used to cover Binance’s May 2019 attack, in which $40 million of BTC was stolen.
Though Binance’s compensation is generous, it does not address Cover Protocol’s security flaws. Cover Protocol will release further information in the future as it migrates to a more secure system.
At the time of writing this author held less than $30 of Bitcoin, Ethereum, and altcoins.
Yassine Elmandjra, analyst at global asset manager Ark Invest, thinks XRP’s price plummet will make Bitcoin stronger.
In a new interview, Elmandjra tells Coindesk anchor Christine Lee that he thinks altcoins could suffer alongside Ripple’s native asset in the short term.
He says Bitcoin, however, will improve in the long term as its value is proved in comparison.
“I think a lot of Bitcoiners actually aren’t really surprised at the outcome of what’s happened with Ripple and if anything in the short term while there’s likely going to be a correlation to the downside with alternative cryptocurrencies, in the long term this actually bodes very well for Bitcoin because people realize just how different it is.
There is no centralized marketing entity. The issuance of Bitcoin is predetermined and not controlled by any single entity and ultimately the rules are encoded in the network and software as opposed to made by humans.”
XRP has fallen more than 65% in the past two weeks in the wake of the U.S. Securities and Exchange Commission officially filing a lawsuit against Ripple alleging that XRP was an unregistered security upon its launch and remains a security to this day.
In a recent interview with Dave Lee, Elmandjra highlights what he believes makes Bitcoin different from any other asset.
“The idea of Bitcoin, you can’t look at Bitcoin scarcity in isolation. You have to look at the idea of Bitcoin being a provably scarce asset that no single entity issues. And it’s the combination of scarcity, combined with no one really owns the issuance aspect of that scarcity and in fact, it’s backed by very hard to break math and economic incentives, that makes it so much different than something like a Tesla.”
As for how high BTC may go, the analyst says it could go well beyond $100,000 in the current bull cycle.
“Bitcoin has broken out from major previous all-time highs only twice before in its history. If this most recent breakout returns half of what the previous breakout returned in 2017, bitcoin will eclipse $150k.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
The crypto job sector has seriously grown over the past few years. There is now an unprecedented need for developers, designers and executives in the crypto space, and with a little help from Black Rock – one of the largest investment firms in the world – it looks like things are about to get a whole lot bigger.
Black Rock Is Looking for a New Crypto VP
Black Rock put out a job advertisement last week saying it was looking to hire a “crypto and blockchain-focused” executive. This person would serve as the vice president of the company’s new blockchain department and would “implement strategies designed to drive demand for the firm’s offerings,” according to the job description.
The ad was allegedly posted on Christmas and was immediately followed by bitcoin surging to its new all-time high beyond $27,000. It is believed the job ad may have pushed bitcoin forward, as well as several other smaller altcoins such as Litecoin and Ethereum, both of which also jumped heavily.
The posting further states that the person looking to earn the job must be able to “devise and articulate fundamental valuation methodologies for crypto assets; evaluate game theory and decentralizing governance models associated with blockchain technology.”
This is just more proof that the crypto space is growing like it never has been before. The arena has seen heavy growth within its borders over the past few months, with companies like PayPal now adding support for digital assets and digital asset purchases. Furthermore, several institutional companies are now seeing bitcoin as a store of value, and several firms – including MicroStrategy and Stone Ridge – have invested hundreds of millions of dollars into bitcoin and crypto.
With the world’s largest and most powerful digital currency by market cap still on the rise, many analysts are now wondering where bitcoin will go in the coming weeks. Alex Kruger – a crypto trader who believes Wall Street will soon have a stronger hand in bitcoin and crypto dealings – stated in a recent interview:
The key bitcoin levels the market has in sight short-term are $30,000 and $36,000. New investors need to be able to stomach a 20 percent correction, as it will come, likely soon. I’m still expecting much higher prices in 2021, and so long as leverage and positioning don’t become too extreme, as measured by funding rates and open interest metrics, I won’t be worried about the downside. I bet many big names will soon be announcing fresh bitcoin positions. Others are still to follow.
A Big BTC Fan
Black Rock itself has always been a huge BTC advocate, with its chief investment officer Rick Rieder going so far as to say in November that the digital currency would one day replace gold. He states:
Do I think [bitcoin is] a durable mechanism that could take the place of gold to a large extent? Yeah, I do.
Disclaimer: The findings of the following article are the sole opinions of the writer and should not be taken as investment advice The short-term market for most altcoins has been noting a wave-like movement. While Cardano has been moving forward on the developmental front, its price movement has been mostly sideways. The cryptocurrency’s price has been […]
Bitfinex top executive says SEC is not targeting Tether
Says the Stablecoin is in compliance with all KYC and AML regulations
A top executive of Bitfinex, Paolo Ardoino, has come out to pour cold water on the thoughts that US financial regulators, Securities and Exchange Commission (SEC) could be coming after Tether next.
This was in light of a tweet by the CEO of CryptoQuant, Ki Young Ju, who tweeted that the current bull run of the crypto market depended greatly on the Tether, so if it is a target of the SEC, it could portend a lot of bad news for the crypto industry.
Ardoino in his response, however said that Tether was complying strictly with the Know Your Customer (KYC) and Anti-money laundering (AML) policies set by the relevant authorities like FinCEN and the rest of them. He added that those who keep saying the Stablecoin is unregulated are only trying to spread fear, uncertainty and doubt (FUD).
Ardoino’s tweet addresses the important issue of the KYC and AML regulation, however, his response did not highlight if the digital asset might have breached a security law, especially when one considers its dollar reserves question.
Sometimes in 2019, the authorities in New York had alleged that both Tether and Bitfinex were trading unregistered securities offering. According to authorities, the firm’s were also loaning the Stablecoin to investors which raised the question of if the coin was fully backed by the US Dollars.
Exchanges Delist XRP because of SEC impending lawsuit against Ripple
Due to the impending litigation against Ripple, many crypto exchange firms have started suspended trading the native token of the crypto firm.
Trading platforms like Coinbase, Binance, Okcoin and others have announced that they would stop trading XRP on their platform.
We also earlier reported of a Coinbase user that is suing the company for listing XRP on its platform. The user alleges that Coinbase was in the know that the token was a security and not a commodity.
The world’s largest cryptocurrency Bitcoin climbed on the charts and headed towards the $29,000 mark and the broader altcoin market followed suit and registered a surge in price. Polkadot was one such example, climbing nearly 12% in the past 24 hours. On the other hand, altcoins VeChain and NEM struggled to maintain positive returns and […]
Bitcoin may have mooned in 2020 but here’s why watching the top-15 richest addresses will matter in 2021.
Transparency is one of the most intriguing aspects of cryptocurrency and it was this openness that drew many early supporters to Bitcoin (BTC).
Blockchain technology makes all information associated with the network’s operation accessible for anyone interested in taking a look. Every known address, transaction, fee paid and other details relating to multisignature and SegWit usage is out in the open.
The top 15 wealthiest Bitcoin addresses have always been the centerpiece of attention for several reasons. Some crypto researchers habitually sort through the top addresses searching for the footsteps of Bitcoin creator Satoshi Nakamoto. Others study data to track the maneuvers of crypto whales and predict market manipulation that results in volatile price swings in the Bitcoin price.
The top addresses have even caught the eye of government agencies like the United States Internal Revenue Service as well as the Treasury Department.
In fact, entire companies specializing in obtaining additional information on cryptocurrency addresses and their potential associations have been formed. It’s no secret that the U.S. Internal Revenue Service hired Chainalysis and Integra FEC, two crypto analytics firms, to track transactions.
More recently, under Treasury Secretary Steven Mnuchin, the Treasury Department is considering whether or not a rule on self-hosted cryptocurrency wallets is required. If approved, these changes emphasize the importance of privacy for market participants.
Addresses are not the same as entities
As shown above, the top 15 addresses hold 1.07 million BTC, or 5.7% of the outstanding Bitcoin supply. At the current $26,500 price level, this equals $28.3 billion. While this is a large amount of Bitcoin, it’s also worth noting that BTC’s aggregated volume on spot exchanges surpasses $5 billion per day.
It’s important to note that an address’s initial deposit date does not mean that the entity owning the address first acquired coins on that day. The coins could have been sent from another address belonging to the same entity. Therefore, the dates showing first funds being sent to 11 addresses since only 2018 do not prove that the address holders are new to the sector.
It is also worth noting that none of the top 15 addresses are rumored to be Satoshi’s holdings. Researcher Sergio Lerner has shown that the blocks Nakamoto mined contain unique patterns known as Patoshi patterns. Although that mined BTC has yet to be moved, it was not allocated to a single address.
The top 100 addresses concentrate 15.7% of the total supply, which is rather impressive compared to the level of distribution seen in traditional markets. For example, the top 20 funds owning PayPal shares hold a combined 19.7% of the total share supply.
Five of the 15 most significant addresses are known addresses from exchanges, indicating that the apparent concentration does not exist in a way that can be attributed to crypto whales.
In addition to exchanges holding large sums of Bitcoin in wallets, some custodians also accumulate BTC for numerous clients in wallets spread over multiple addresses with large sums.
The top addresses are recent holders and non-SegWit-compliant
An impressive eight out of the top 15 addresses have never withdrawn a single satoshi. Excluding the five exchange-related addresses, only 20% have ever moved their coins. This indicates a strong prevalence of hardcore holders.
Moreover, 11 of the 15 addresses were first used less than three years ago. Multiple reasons could be behind this oddity, including improved security measures, a change of custodian, or different ownership structures.
Only two out of the top 15 (and three in the top 200) addresses are Bech32 SegWit-compatible, which can significantly reduce transaction fees. This indicates that users are resistant to change despite the clear benefits of cheaper transactions. Even more interesting is that the Bitfinex cold wallet ranked second on the list is the only one that has ever had an outgoing transaction.
A few mysterious addresses keep stacking
The third wealthiest address is something of a mystery, as it contains an untouched 94,506 BTC. The address made headlines back in September 2019 after Glassnode reported that 73,000 of the BTC in the wallet had originated from Huobi.
Many analysts suggested that these coins were connected to the Plustoken Ponzi scheme, but these rumors were proven wrong after the Chinese police seized 194,775 BTC on Nov. 19 from the fraudulent exchange.
Aside from the fourth-largest wallet containing 79,957 BTC since March 2011, 20 of the top 300 addresses are over nine years old. Although no one can prove that these funds have been lost, most assume so.
Those untouched coins amount to 313,013 BTC, and only one address has ever transacted out since origination. Thus, apart from F2Pool’s 9,000 BTC held at address 1J1F3U7gHrCjsEsRimDJ3oYBiV24wA8FuV, there is a very good chance that the funds from the other addresses are effectively lost.
The fifth-ranked address shown above was created in February of 2019 and, at origination, was listed as the 81st-largest address. Since then, it has been accumulating regularly, adding from as low as 1 BTC in December 2019 to 4,100 in a single transaction in June 2019. Despite being a large accumulator, it has made seven transactions out, ranging from 786 BTC to 3,000 BTC. Maybe even whales have bills to be paid.
There are precisely 100 addresses first used between Nov. 30, 2018 and Dec. 18, 2018 containing around either 8,000 BTC or 12,000 BTC each. These addresses are commonly attributed to Coinbase Custody. Amounting to 881,471 BTC, the addresses’ funds equal to 96% of the exchange’s cold wallet, according to chain.info.
The new whale local top theory
Every investor has a gut feeling that the arrival of new Bitcoin whales is crucial for a sustained rally, even though there has never been hard evidence of this effect until now.
There is a constant flow of new addresses entering the top 300. For example, 16 of them received their first-ever deposits within the past 30 days. Once again, this is not necessarily a new entity but an address receiving its first-ever BTC.
Although it is uncommon, sometimes gaps of 50 or more days occur without newcomers joining the top 300. Coincidentally, these periods mark the end of rally periods, and a healthy correction usually follows.
Precisely zero of the top 300 addresses were initially used between Nov. 28, 2019 and Feb. 09, 2020, when BTC went up by 35%. Oddly enough, the market plunged 52% over the next 32 days.
A similar effect happened between Oct. 18, 2017 and Dec. 11, 2017. During this period BTC rallied 193% while none of the top 300 addresses were newcomers. A 34% price drop occurred over the following 36 days.
Before that, none of the top 300 addresses were initiated between April 20, 2017 and July 07, 2017. Meanwhile, BTC soared 111%, while a 24% crash has also followed this period over the course of nine days.
So far, history has been proving that the new whale theory makes sense: The market rallies during prolonged periods of fewer new addresses making it to the top 300 holders list, as it indicates accumulation by entities that already had position. On the other hand, new whales could be driven by fear of missing out, which usually indicates local tops.
Therefore, it makes sense to monitor the top addresses and on-chain data to gauge potential corrections.
Every time large deposits enter exchanges, this indicates a potential sell order and is deemed bearish by traders. These movements are then compared to BTC price tops and bottoms in an attempt to find some correlation between whale transfers.
Whenever the market is rallying and miners, in turn, reduce selling, analysts expect a price correction once they start moving coins again. To put things in perspective, this is 6,300 Bitcoin per week that needs to be absorbed by the market to avoid price impact.
Now that institutional investors have “arrived,” investors will be itching to see whether their inflow in 2021 will continue to absorb newly minted BTC.
While 2021 is looking pretty bullish for the crypto market, there is always an unexpected price crash that often results from the government threatening regulation.
This means it will still be important for savvy investors to follow the top 15 Bitcoin addresses and the movements of crypto whales in 2021.
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.
The total value of the cryptocurrency market has surpassed its all-time high, largely driven by rising Bitcoin prices.
Bitcoin Drives Bull Market
On Dec. 31, 2020, the total value of all cryptocurrencies combined reached $775 billion.
Much of that value comes from Bitcoin’s rising price, which is inching towards $30,000. Currently, Bitcoin dominates the crypto industry with a 71.4% market share and a market cap of $550 billion.
Meanwhile, Ethereum’s market cap provides another 11% of the market cap. All other cryptocurrencies account for the remaining 17.6% of the market capitalization.
Previous all-time highs did not feature the same distribution; in fact, the distribution was once the opposite of what it is today. When the cryptocurrency market breached $750 billion in the first week of January 2018, Bitcoin’s dominance was at an all-time low of 35%.
Bitcoin’s rising dominance is largely due to the U.S. Securities and Exchange Commission’s strict enforcement of securities law. Those regulatory efforts curbed the creation of new ICO tokens, which drove altcoin investors back to established coins like Bitcoin.
Bitcoin Predictions for 2021
On Jan. 1, 2020, Bitcoin’s price was approximately $7100. Since then, Bitcoin’s price has increased by roughly 300% to $29,100.
Some experts have made predictions about where Bitcoin will go next year. Tom Lee, Managing Partner and Head of Research at Fundstrat, has predicted that “2021 is going to be a lot like 2017, which means Bitcoin should do even better in 2021 than it did in 2020.” He says that Bitcoin could provide returns above 300%.
Bitcoin could triple in 2021, according to Tom Lee of @fundstrat. He unpacks his top picks for the new year and why he believes epicenter stocks will surge. pic.twitter.com/NXs3GvugLL
Elsewhere, blockchain analyst Willy Woo has suggested that capital inflow into Bitcoin this year was unprecedented, resembling April 2017 levels, after which Bitcoin’s price surged 1400% by year-end. Woo expects a similar bull run in the future.
There are plenty of reasons for the crypto market’s bull run, starting with inflationary fears in a pandemic-ridden global economy. At the same time, governments around the world have increased the market’s appetite for risk through massive monetary stimulus.
Bitcoin, as a limited-supply uncorrelated asset, lies in the sweet spot between gold and equities.
At the time of writing this author held Bitcoin and less than $15 of altcoins.
China has the largest concentration of bitcoin miners worldwide with estimates noting the country captures anywhere between 50-65% of the global hashrate. Xinjiang, the autonomous region of the People’s Republic of China, ostensibly accommodates 35% of the hashrate. This week a regional report from China and statements from the head of operations at Genesis Mining, indicate that Chinese miners are migrating from the area to Nordic countries like Sweden and Norway.
Just recently, news.Bitcoin.com, reported on the electrical issues in China that bitcoin miners in the country are currently dealing with due to the shortage of coal. In the report, it noted that the Cambridge Bitcoin Electricity Consumption Index (CBECI) map shows China still commands 65% of the hashrate today. However, a team member from the Cambridge Centre for Alternative Finance (CCAF) explained to news.Bitcoin.com that the CBECI map is not up-to-date and will be updated in 2021.
Back in July, it was said that China was steadily losing its concentration of bitcoin hashpower and the country dropped to 50%. The hashrate report written by Bitooda said the U.S. bitcoin mining capacity had jumped to 14% in recent months. Iran accounts for 8%, Canada, 7%, Iceland 2%, and Russia and Kazakhstan also command 8% of the world’s hashrate too.
On December 30, 2020, the financial columnist from 8btc, Iyke Aru, explains that Chinese bitcoin miners are moving from China to Nordic countries.
Aru details that in the early days, bitcoin miners in China enjoyed the lack of regulations and extremely cheap electrical rates from the country. In recent years, however, Aru says that China’s communist government has deployed “regulatory agencies” and “strict measures towards cryptocurrencies” and mining operations in China have been affected.
“Bitcoin mining is gradually shifting base,” Aru’s report notes. “From being concentrated in China, miners have started a gradual but steady migrating to countries that present more friendly conditions for their industry.”
Philip Salter, head of operations at Genesis Mining has corroborated Aru’s statements in regard to Chinese miners moving to the Nordics. Salter stressed that China’s miner migration is one of the “biggest developments” in the bitcoin industry right now. The head of operations at Genesis Mining said that the movement is due to miners seeking out financial safety and “political stability.”
“There is a very important strategic shift away from mining in China to mining in western countries like Sweden as Bitcoin investors become more public and want more stability and critical safety,” Salter detailed.
Aru’s report goes on to highlight the recent electrical struggles Chinese bitcoin miners from Yunnan province have been dealing with in recent times. Moreover, because China has banned cryptocurrency exchanges, it has “complicated issues for miners, who cannot easily convert their mined Bitcoins into fiat in order to pay for services such as electricity.”
In Nordic countries, Aru says that Chinese operations are attracted to “eco-friendly green energy.” The benefits from countries like Sweden and Norway in contrast to China, alongside the complications from the communist government, is “pushing bitcoin miners away from China,” Aru’s report concludes.
What do you think about Chinese bitcoin miners migrating to Nordic countries like Sweden and Norway for friendlier mining environments? Let us know what you think about this subject in the comments section below.
Bitcoin and Ethereum, combined, had a total market cap of approx. $630 billion, out of a total crypto-market cap of $766 billion. Such has been the prowess of both these assets in 2020, with both cryptos competing for the limelight. With Bitcoin seemingly ending on a new high in 2020, Ethereum is making a few […]
Over the past few weeks, Chainlink’s price action has been nothing short of lackluster, with the cryptocurrency failing to gain any serious momentum as investors widely shift their focus away from altcoins and towards Bitcoin.
This trend shows few signs of letting up anytime soon, as most major altcoins are all stagnating as BTC continues showing signs of strength.
Until BTC enters a prolonged consolidation phase or slides lower, there’s a strong possibility that it will continue gaining dominance over the market.
Despite this short-term trend being bearish for altcoins like Chainlink, data does seem to suggest that the cryptocurrency is as fundamentally healthy as it has ever been.
According to one analytics platform, Chainlink could be well-positioned to see some massive upside due to an ongoing accumulation trend amongst smaller network participants.
They also note that while its price has gravely underperformed BTC and other altcoins like Ethereum, its largest whales are still holding strong, with there being “no apparent whale sell-offs in sight.”
This could mean that once there is a rotation of capital away from Bitcoin and towards altcoins, LINK will lead the charge and see some massive upside.
Chainlink Stable in Lower-$11.00 Region as Altcoins Consolidate
Altcoins have extended their consolidation trends despite the recent strength seen by Bitcoin and even Ethereum.
Chainlink is a prime example of this, as the cryptocurrency has been trading sideways around its current price of $11.25. This is around where it has been trading throughout the past week.
It appears to be facing some resistance within the upper-$11.00 region, as this is where it found some massive resistance that slowed its ascent and caused it to slide back to its $11.00 support region.
Analytics Firm: LINK Whales HODL Strong as New Addresses Spike
Despite Chainlink’s lackluster price action as of late, the cryptocurrency’s whales are holding strong and are showing no signs of folding anytime soon.
Furthermore, an analytics firm recently noted that the number of new addresses holding and buying LINK has spiked as of late.
“A year ago, Chainlink’s top 10 whales held 70.7% of the total circulating supply of LINK. To close out 2020, they now hold 64.5%. This can be attributed to consistent new addresses being created on the network, & no apparent whale sell-offs in sight.”
Image Courtesy of Santiment.
The coming days should shed some light on how Bitcoin’s price action will influence Chainlink and other altcoins.
Featured image from Unsplash.
Pricing data from TradingView.
A Grayscale spokesperson confirmed to Cointelegraph that the fund manager didn’t dump massive stakes of XRP and XLM.
Bybt data apparently showing a massive liquidation of XRP and Stellar Lumen (XLM) by Grayscale Investments earlier this week is inaccurate, according to the investment company.
On Wednesday, a public Bybt data set suggested that Grayscale Investments reduced its exposure to XRP by roughly 9.19 million units and that the fund also cut its XLM holdings by over 9.74 million units. According to Bybt data, the net change in holdings occurred over 24 hours on Tuesday.
Cointelegraph accessed the data before Grayscale released its daily assets under management report for Tuesday and noted in an article that Grayscale had reportedly sold significant amounts of XRP and XLM.
Efforts to reach Grayscale on Wednesday were unsuccessful. However, on Thursday, a Grayscale spokesperson told Cointelegraph:
“None of the Grayscale investment products operate a redemption program. The net holdings of our investment products only change as a result of inflows from the private placement, price of the underlying assets and accrued management fee.”
“Statements about large sales of underlying assets by any of our investment products are false and inaccurate. Any perceived large decrease in the USD value of Grayscale XRP Trust would have been a result of a decrease in the USD price of XRP.”
Bybt’s data feed still shows a large outflow of XRP and XLM from Grayscale over the past seven days, both in terms of AUM and actual units of XRP and XLM held. These figures appeared under the “24H Change” column on Wednesday.
The Grayscale AUM report for Wednesday was released on Thursday. It reads:
Attempts to contact Bybt have not yielded any responses.
December has been crucial for Bitcoin. During the month, the world’s largest cryptocurrency zoomed past its previous all-time high of $20,000 and is still looking to break more records every single day, and is currently heading towards $29,000. Needless to say, the broader altcoin market has benefitted from Bitcoin’s achievement over the course of the […]
Despite a tumultuous 2020, stablecoins not only managed to stay ahead, but showed considerable growth and industry penetration. From a COVID-induced black swan event to an explosion in DeFi to Bitcoin’s stark price surge, 2020 has been a defining year. Stablecoins, in particular, saw major developments, both in terms of adoption and regulations. Major Stablecoin […]
A new year is upon us. 2020 is finally coming to a long-awaited end, along with the craziness that came with it. This year bitcoin rose to new heights, and the currency appears to have garnered a newfound reputation as a store of value. Many see it as a hedge tool that can keep one’s wealth safe during times of economic strife.
Will 2021 Be Any Different for Bitcoin?
The big question now is, “Where do we go from here?” Where will bitcoin be lead in 2021? Could the future hold promising items for the world of crypto, or will we see massive corrections like we did in 2018 following the bull year of 2017?
There are so many things to think about. At first glance, it doesn’t look like there is any reason as to why bitcoin would end its present patterns, all of which appear to be bullish. The currency has been on a serious roll over the past eight months. Technically, one could state that the currency has been bullish since the year started.
It initially began 2020 in the $7,000 range. By the following month in February, the currency had shot up to about $10,000, thereby adding $3,000 to its price. From there, the coronavirus took a nasty toll on bitcoin as well as the rest of the world’s financial products, but it wasn’t long before the currency rose back to the top of the financial ladder, eventually recovering to $9,000 in May.
What would have likely affected BTC for a long time about five years ago proved to be a small dent in the road. Many businesses have not recovered from the coronavirus pandemic, but bitcoin is well on its way to being an “everyman” currency. The asset has been jumping ever since, ultimately spiking to about $27,000 last week.
Given the currency’s good fortune well into the final weeks of the year, one would automatically assume that things will continue in this respect, but to be fair, it would be wrong to just believe that all will remain honky dory throughout 2021. We can hope for this, but as we’ve come to know with bitcoin, things can be rather unpredictable.
We Should Be Prepared for Anything
Many people didn’t expect 2018 to go the way it did. What followed a year of great stamina and strength for bitcoin was a year of dismal losses. One that ultimately saw BTC hit a new low and shed 70 percent from its value.
However, this was a time when bitcoin was predominantly supported by retailers, which are typically not as strong as institutional players. This year, institutions such as MicroStrategy and Square have shown newfound love and respect for bitcoin, which could help to keep it afloat throughout the new year. Granted this attitude continues, perhaps bitcoin finally has a chance of joining the same ranks as fiat currencies.
Following a couple of unsuccessful attempts, the New York City-based giant asset manager VanEck has filed another document with the SEC to launch a Bitcoin ETF. If successful, the VanEck Bitcoin Trust would reflect the performance of the MVIS CryptoCompare Bitcoin Benchmark Rate.
VanEck Tries Again For A BTC ETF
Founded in 1955, VanEck is a giant US investment firm with about $50 billion in assets under management as of 2019. The company has been actively involved with the cryptocurrency field as well, most notably – with attempts to set up a Bitcoin ETF.
So far, though, VanEck has withdrawn both of its applications – the latest one in September 2019. Nevertheless, the firm has shown a commitment to launch such an exchange-traded product.
VanEck has filed a new S-1 form with the US Securities and Exchange Commission to establish a Bitcoin ETF called The VanEck Bitcoin Trust. As with previous applications, this ETF’s shares would be traded on the Cboe BZX Exchange.
“In seeking to achieve its investment objective, the Trust will hold bitcoin and will value its shares daily based on the reported MVIS CryptoCompare Bitcoin Benchmark Rate.” – reads the document. It added that “VanEck Digital Assets LLC is the sponsor of the Trust, and Delaware Trust Company is the trustee of the Trust.”
Challenges And Hopes For A SEC-Approved BTC ETF
Apart from the two unsuccessful applications from VanEck, the SEC has dismissed numerous other similar attempts. Back in 2018, the Commission rejected nine applications in just one day.
This has raised questions within the community if the watchdog will ever approve a Bitcoin ETF. The former SEC Chair, Jay Clayton, said last year that an exchange-traded product tracking the primary cryptocurrency is possible, but “there’s work left to be done.”
Clayton highlighted that organizations need to address crucial issues, including price manipulation and bitcoin custody, before hoping to receive SEC approval.
With that in mind, VanEck’s timing seems rather intriguing. The company’s latest attempt has come shortly after Clayton stepped down.
Nate Geraci, president of the investment advisory firm ETF Store, told Bloomberg that filing for a Bitcoin ETF at this moment suggests that VanEck believes there’re “shifting viewpoints within the SEC.”
Geraci outlined that President Biden’s choice for the next SEC Chair will be the “key” to resolving this drama.
Today is the last day of 2020 — a year so many are ready to say goodbye to and never look back at. But for Bitcoin, the cryptocurrency is about to close out its most important year yet.
At the same time, the asset also closes the last ten years as the best performing asset since 2011, underscoring a decade of growth that is only just beginning. Here’s how Bitcoin stacked up against the rest of the world of finance over the last decade.
From Early Bitcoin Beginnings To Now
The Bitcoin white paper was first distributed in 2008, and the genesis block that began it all was mined in 2009. In 2010, the first well-known commercial transaction involving BTC and two pizzas took place.
But it was 2011 when the asset rose to over $1 and started to be widely used as a currency — primarily for transactions on the Silk Road dark web marketplace.
From there, it has continued to be used as such but also has taken on many other use cases as its market cap has grown. Today, in 2020, institutions, billionaires, celebrities, and corporations are now buying BTC to store value and hedge against inflation.
Data shows that the cryptocurrency has outperformed every other asset over the last ten years, with a staggering 6 million percent increase. This equates to over 200% annualized returns, with the next best performer being the Nasdaq 100 at just 20% annualized returns.
Looking at it from the perspective that the asset has already grown from under $1 to $30,000 and over 6,000,000% gives the false impression that’s it’s too late to invest in Bitcoin. But because of the cryptocurrency’s potential and promise, it could ultimately reach prices of hundreds of thousands to millions per coin.
Some of the most brilliant investors alive claim getting into Bitcoin even now is like investing in Google or Apple early. Just as many naysayers exist, however, but people often don’t agree with what they cannot understand.
Others have compared Bitcoin to the internet, and like that technology — including email, websites, and more — was all demonized at first and thought to never replace existing systems.
Is the same fate as the internet ahead for Bitcoin as the asset’s most important year and it’s first full decade beyond proof of concept stage?
Featured image from Deposit Photos, Charts from TradingView.com
Tokyo-based tech conglomerate GMO Internet Group has just been authorized by the New York State Department of Financial Services (DFS) to issue stablecoins pegged to the U.S. dollar and Japanese yen.
Joining 27 companies that have been granted BitLicenses by the DFS, GMO can now launch its USD-pegged (ZUSD) and JPY-pegged (GYEN) stablecoins, after fulfilling stringent requirements and meeting federal standards for anti-money laundering.
The company says the stablecoins, which can be bought directly from the GMO Trust, are 100% backed by fiat and are redeemable at all times. GMO also says it has developed strategic partnerships with cryptocurrency exchange platforms that have a global reach to launch the assets.
GMO Internet Group operates one of the world’s largest forex trading platforms and an interbank regulated by the Japanese Financial Services Agency.
Having launched a regulated digital asset exchange and a large bitcoin mining operation in 2017, GMO began preparing for the launch of the GYEN stablecoin in 2018.
GMO Trust vice president of business development Kurt Bierbower says the company will soon expand the options for digital assets available to retail and institutional within a regulated environment.
“We seek to dramatically reduce execution times and expand the digital options for retail and institutional clients in trading, settlements, payments, lending and remittances. But our goal is also to leverage our 20-year history in this space to meet the highest standards of reliability and security as a regulated entity.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Cardano Founder Charles Hoskinson took to YouTube recently to share his thoughts on what 2021 holds for Cardano’s governance, calling it “the most exciting year in the history of the project.” After gathering enormous amounts of data and training over 1000 Stake Pool Operators (SPOs), Cardano launched Shelley in July, a development which Hoskinson described […]
Andre Cronje has been building more decentralized finance infrastructure. This time, he’s created a protocol called yCredit.
It builds on the StableCredit protocol he announced in September and works by giving users credit in a token. Whenever a user makes a deposit, they’ll be paid 99.5% of its worth as a credit line.
Andre Cronje Launches Yield Credit
When a user deposits $100 worth of SNX, for example, they’ll receive 99.5 yCREDIT. They can later redeem their SNX by burning 100 yCREDIT.
A 0.5% fee will be charged for every deposit, trade, swap, borrow, and repayment. Those fees will then get distributed to users who stake yCREDIT.
yCREDIT holders will also be able to use arbitrage to profit if the token moves from its peg. When it exceeds the peg, they can mint tokens to cash them in for the relevant ERC20, and vice versa when it falls below the peg.
Users of the protocol will be able to borrow or purchase any ERC-20 token used as collateral in the system. As ever, it supports many of DeFi’s so-called “blue chips”: AAVE, BNB, BUSD, CRV, COMP, DAI, ETH, LINK, MKR, REN, renBTC, SNX, SUSD, TUSD, UNI, USDC, USDT, wNXM, wBTC and—of course—YFI.
Cronje prefaced and concluded his note with a familiar disclaimer: “yCredit is experimental. yCredit is not a speculative token. yCredit can be economically exploited.”
Disclosure: At the time of writing, the author of this feature owned ETH, UNI, and wNXM, among other cryptocurrencies. One or more members of the Crypto Briefing Management team are investors in Hegic. Andre Cronje is an equity-holder in Crypto Briefing.
Price shows consolidation in short term but bulls dominate the markets
Mid-term charts suggest a drop in price volatility
Polkadot (DOT) price has climbed above the $8.00 mark as strong bullish momentum has assisted DOT to break through multiple resistance levels.
The broader crptocurrency market sentiment is bullish with most assets recording double digit gains across the 7-day period.
Polkadot price across the last 15 days
Polkadot price observed relatively less volatility between December 14 and December 28 as the price oscillated between the $5.700 and the $4.700 level. However, the volatility increased on December 28, as DOT crossed above the $5.500 level with strong bullish momentum as the price rose to the $6.500 level before the day ended.
The bullish momentum continued the next few days as Polkadot price continued rising above, breaking through the $6.500 resistance level before climbing above the $7.00 level. The bulls continued charging above and climbed to the $7.500 resistance level by December 30. The price consolidated at the level for a while before breaking above.
Polkadot price climbed to the $8.00 level where it currently trades. The price is trading above the $8.00 line, but DOT is yet to completely leave the line and hovers close.
What to expect from Polkadot price?
Currently, the price seems to be consolidating at the $8.100 level as the bulls seem to be resting at the level.
Across the technical indicators, the MACD shows bullish momentum that seems to be decreasing with the latest candle as the price sticks to the $8.100 level. The two EMAs are positive but remain close, suggesting low bullish momentum.
The RSI is trading above the 70.00 mark showing there is little to no room for further upwards movement. The indicator is issuing a sell signal indicating a drop in price, but the $8.00 support level holds steady.
Similarly. the Bollinger Bands are currently wide but show convergence, suggesting a decrease in price volatility in the short term. Traders should expect Polkadot price to observe sideways movement at the level before breaking out. Polkadot price is expected to break upwards, continuing its bullish activity rising towards the $10.00 mark.
Polkadot price volatility
Across the daily frames, Polkadot price shows high volatility, with the price increasing by nearly 60 percent since the week’s opening price. However, the volatility has not appeared recently and has been present since October since August as DOT recorded long candlesticks.
The volatility decreased in October and only increased for a brief time in November. DOT price remained restrained for most of December but increased sharply on December 20 as the size of the daily candlesticks increased significantly.
Currently, the price volatility has spiked and shows no signs of slowing as the candlesticks remain long. However, the Bollinger Bands are currently expanded and will start converging in the next few days, suggesting a drop in DOT price volatility.
Grayscale, the New York-based investment company, has sold massive amounts of XRP and XLM tokens from their respective Trust products.
Grayscale Deals XRP, XLM Blow
According todata from Bybt, the investment firm has reduced its XRP holding by 9,189,031, worth ~$2.02 million at press time. Its XLM holding also saw a reduction of 9,743,886, worth ~$1.26 million at press time.
At present, Grayscale investment holds 26.46 million XRP in its XRP Trust, amounting to ~$5.82 million. Its Stellar Lumens Trust holds 9.19 million XLM, worth roughly ~$1.19 million.
Ripple Inc. is being sued by the SEC for selling XRP tokens. The SEC hascharged Ripple and its executives for selling 14.6 billion XRP ($1.38 billion).
Thepre-trial will begin on Feb. 22. Meanwhile, Ripple hasstated that they will continue to operate in the United States despite the lawsuit. Since then, exchanges likeCoinbase,Bitstamp,Binance.US, and more have halted XRP trading. Thus, it makes sense for Grayscale to reduce its XRP holdings.
While Stellar is under no such regulatory scrutiny, Grayscale seems to have pre-emptively taken precautionary measures, as Stellar was co-founded by Jed McCaleb, who was also the founder of Ripple before leaving the company in July 2013.
Besides XLM and XRP, the firm gives investors the ability to invest in Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ethereum Classic, Zcash, XRP, and Horizen. Grayscale also offers a diversified market-cap-weighted fund called Grayscale Digital Large Cap Fund (GDLC). This fund comprises Bitcoin, Ethereum, XRP, Bitcoin Cash, and Litecoin.
Grayscale has $20.14 billion in assets under management (AUM), with its Grayscale Bitcoin Trust (GBTC) amounting to $17.61 billion, thus constituting 87% of its total AUM.
Stellar price prediction expects a rise to $0.293.
Strong support found at $0.124
Strong resistance currently found at the $0.138.
The Stellar price prediction by Contemplating Crypto suggests that the cryptocurrency’s price will hit the $0.293 mark in a long-term trade. While the cryptocurrency currently trades inside a falling parallel channel, the analyst believes that the XLMUSD pair will break out of the channel and rise towards the horizontal resistance at the top of the trade setup.
1-Day Stellar price analysis
Looking at Stellar’s chart, the cryptocurrency has seen a significant decrease in its price over the past 2 days. The price shows a falling slope which seems to have hit a support level at the $0.1240 mark. During the 24-hour trade, the cryptocurrency hit a high of $0.1388 at the start of the 30th of December. The trading oscillators and indicators show a market for the sellers right now as the cryptocurrency continues to decline under a sell signal.
A sell signal is such in which the asset is suggested to be sold, and then rebought near the target price. In this way, the trader gets both, the asset and the difference in value after and before the selling signal takes place. The cryptocurrency traded well above the $0.132 level for the first half of the day until the cryptocurrency reached the last day for 2020 and observed a bearish momentum.
The major altcoins did see their share of the bears whilst Bitcoin BTC, the cryptocurrency king, observed a brief descent towards the $28200 mark in the afternoon of the 31st of December. The altcoins, of course, followed suit as the cryptocurrency king descended on the charts for the last day of the year.
What to expect from Stellar?
The Trading View analyst Contemplating Crypto is of the opinion that the XLMUSD trading pair is to form an inverse head and shoulders pair on the 2h time frame. In this Stellar price prediction, the inverse H&S pattern was shown to form in a falling parallel channel drawn on the charts. The price has approached the bottom of the channel, and the analyst has dropped trade signals at multiple points in the trading channel.
Per the analyst, the cryptocurrency has recently entered a buy signal and if the cryptocurrency attains enough trade volume, the price will turn bullish and move towards the upper boundary of the channel. If a bounce takes place at the bottom of the channel, then the price will move up. The sell signal is placed at the top of the channel, which means that the analyst believes that the falling trend line at the top is strong enough to not let the cryptocurrency break through.
These upward and downward moves will continue to take place until the cryptocurrency forms the right shoulder and breaks out of the channel. This is because the inverse H&S pattern is a bullish indicator. The target price for this Stellar price prediction lies at the $0.2936 mark. The analyst placed a sell signal at the target in this Stellar price prediction as they believe that the cryptocurrency’s bulls will exhaust once the target is met, and the coin will make a move towards the downside.
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice Litecoin’s market has been devoid of significant volatility, with its charts seeing very dull price movement. Despite its strong bond with Bitcoin, Litecoin has been consolidating on the charts, with LTC yet to see […]
Social trading platform eToro has become the latest firm to suspend XRP trading following the U.S. Securities and Exchange commission’s lawsuit against Ripple Labs over the sale of the cryptocurrency. In an update, eToro’s team cited the lawsuit as the reason for the suspension, but stressed that the move will, for now, only affect its […]
Experts in blockchain technology and crypto take on the question of Bitcoin’s path throughout the year 2020.
Without any doubt, the year 2020 was unlike any other year in the 21st century: The ongoing COVID-19 pandemic, global governments unstoppably printing money, “lockdowns” and “social distancing” becoming the new normal, protests against racial discrimination and police brutality, and so on and so forth. It even made some claim it to be “the worst year ever.” But as they say: In every storm, each cloud has a silver lining. The most important thing is to learn from what we’ve been through and to improve our world and our future, as there are some problems that we have to solve ourselves.
All in all, it is hard to predict the crypto’s future in the post-COVID-19 world, as the pandemic has not yet come to an end. Meanwhile, it is impossible to neglect the impact it has had on the crypto space this year. The new Bitcoin era, after everything that happened this year, is forming the new financial order. And if fiat money might lose up to 90% in 100 years, Bitcoin’s future seems to be much brighter than it is now, considering that Bitcoin just reached $27,000 for the first time in history and is now targeting $100,000 within the next 12 months and $500,000 within the decade. And with 2020 coming to its end, Cointelegraph reached out to experts in the blockchain and crypto space for their opinions on Bitcoin’s path this year.
Did Bitcoin mature enough this year to become a reliable store of value? Why or why not?
Brian Brooks, acting comptroller of the currency of the U.S. Treasury Department’s Office of the Comptroller of the Currency:
“We hope that our July 2020 letter regarding crypto custody will make Bitcoin safer for institutional and retail holders. Bitcoin was the innovation that opened the door to decentralizing financial services, and the growth of it and other tokens in 2020 shows the beginning of a transformation of cryptocurrencies from an exotic concept to a more familiar and comfortable means of engaging in financial services.”
Da Hongfei, founder of Neo, founder and CEO of Onchain:
“Since its inception, Bitcoin has witnessed and survived various ups and downs, and it now appears that investors, on the whole, are increasingly more confident in its value. More significantly, I believe that this signals how quickly we are moving toward mainstream adoption.
Throughout 2020, the blockchain space experienced an explosion in terms of interest and creativity, and we’re seeing the results now: More and more people are recognizing that blockchain is here, and it is here to say.
Moving forward, I believe we’re on the cusp of mainstream adoption, and I’m very excited for what 2021 will bring.”
Denelle Dixon, CEO and executive director of the Stellar Development Foundation:
“I think that the institutional focus on Bitcoin has created positive momentum for the entire blockchain space. Personally, I think it is a reliable store of value. As is much debated throughout crypto circles and beyond, engagement with the network in the long term may present challenges and affect Bitcoin’s ability to translate to certain business applications and use cases, but I believe that storing value and holding value are irrefutably its strengths.”
Emin Gün Sirer, CEO of AvaLabs, professor at Cornell University, co-director of IC3:
“We’ve seen over time how narratives around cryptocurrencies can shift and evolve to fit market demand or a network’s capabilities. The Bitcoin narrative around store of value and hedge against currency inflation has hardened this year, and I believe it’s now the dominant positioning for BTC, as its most vocal supporters and institutional adopters have rallied around it.
That’s a perfectly fine position for Bitcoin to occupy.
Personally, I’m most excited about currencies that have both a scarce, hard-capped supply like Bitcoin but also push for more sophisticated utility with functionalities like smart contracts, DeFi applications and asset issuance.”
Heath Tarbert, chairman and chief executive of the U.S. Commodity Futures Trading Commission:
“We have definitely seen an increase in digital assets overall. Bitcoin is among that market, but let us not forget about Ether, which I declared a commodity last year. The two of these together represent a large portion of the crypto market. And it has been an interesting year in this market — not just with the halving but also the move to Ethereum 2.0 and both Bitcoin and Ether forking.
Despite this, however, we must still recognize that this market is small compared with other assets we regulate. I think over time, this market will be comparable. Until then, however, there will need to be more regulatory clarity around these digital assets for these markets to grow.”
James Butterfill, investment strategist at CoinShares:
“Bitcoin remains a volatile asset. Many expect a store of value to have much lower volatility, but as gold was developing into an investment store of value in the 1970s, it too had extremely high volatility. As it has matured as a store of value, so too has its volatility declined. We expect the same to happen to Bitcoin, and early evidence alludes to this.
2020 has been crucial for Bitcoin. We see it as the year of legitimization for the broader public and investors, fortuitously aided/accelerated by the COVID-19 crisis and the consequent rapid escalation of quantitative easing and fall in use of cash. Our conversations with institutional clients have changed considerably over the course of 2020. What was typically a desire to speculatively invest has now become one of being fearful of extreme loose monetary policy and negative interest rates, with clients looking for an anchor for their investments. As their understanding of Bitcoin improves, clients have grasped that Bitcoin has a limited supply and fulfills this role as an anchor for their assets while fiat is being debased.
This year, we have seen cumulative flows (stripping out the price effect) into investment products rise from $1.35 billion at the start of the year to $6.1 billion today, with only 24 days of outflows for a total of 241 trading days this year. Investors are buying and holding — a good indicator that it is slowly developing into a store of value.”
Jimmy Song, instructor at Programming Blockchain:
“It’s not that Bitcoin has matured, it’s that we have. The mainstream investors are starting to take notice of Bitcoin’s 12-year history and starting to recognize how valuable it really is in a world of near-infinite quantitative easing. Bitcoin gives us true scarcity, and that’s why it’s useful as a store of value. Literally, nothing like this has existed in human history.”
Joseph Lubin, co-founder of Ethereum, founder of ConsenSys:
“Despite this very difficult year, I think that the broader decentralized protocol ecosystem demonstrated poignantly that we, like our Web 3.0 technology, are anti-fragile and that this technology will prove a worthy evolutionary successor to Web 2.0 systems. We continue to demonstrate that this technology will serve as a new trust foundation for next-generation, increasingly decentralized, financial, economic, social and political systems.”
Michael Terpin, founder of Transform Group and BitAngels:
“Store of value is an interesting concept. It doesn’t mean nonvolatile; after all, both gold and real estate have had their cycles, booms and busts, but to date, they have returned to a reliable mean so that there are very few instances where a 20-year investment in either did not perform as a reliable way of keeping ahead of inflation with very low risk of losing one’s principal.
To skeptics, Bitcoin was seen as the equivalent of investing in a single high-risk stock that could easily crash to zero — and in its early days, this certainly was possible. But no asset in history has ever gone from under one cent, as it was during the first P2P transactions, to this month’s high-water mark of $28,300. As each year has passed, the fluctuations have gotten more manageable — there will be no more 100-times gains in one year, as happened in 2013. This plus the clear signals from the United States, the European Union, China and Japan that they’re happy to cope with both the ongoing COVID-19 pandemic and economic depression through massive money printing means that these currencies will vastly underperform hard assets in the next two to three years as the money supply in these nations expands at annual rates of above 20% instead of the historic 4% to 5%, which is near the true rate of inflation.
Barry Silbert primed the pump with Grayscale, allowing accredited investors an easy way to invest in Bitcoin that then makes its way into a publicly traded vehicle. Paul Tudor Jones, who made a fortune calling the gold boom in the 1980s, awoke the multitrillion-dollar institutional fund world by having his funds invest in Bitcoin, calling it ‘the fastest horse' in the race.
Michael Saylor, CEO and founder of multibillion-dollar public firm MicroStrategy, then lit the fuse on corporate fear and greed by using 80% of its $500 million in cash earlier this year to invest in Bitcoin, which has now more than doubled. More recently, he went even further and issued debt to buy even more Bitcoin.
Bitcoin has never been great at microtransactions — dozens of low-fee, faster-settling cryptos are far better at this — but it needed to go through this use case in its infancy. Its true value now is in sending large transactions instantly and safely, and as a store of value for the next century and beyond.”
Mike Belshe, CEO of BitGo:
“The 2020 bull run of Bitcoin is very different from anything we’ve seen before. Unlike the previous rapid rise of 2017, this year saw the influx of new large institutional players. New entrants like PayPal, Square, JPMorgan and others are bringing a new level of credibility, liquidity and stability to the crypto markets.
Institutions and retail investors are recognizing the importance of the principle of scarcity, which is the basic economic principle of Bitcoin. With governments overprinting money across the globe, Bitcoin is the most reliable store of value at this time and a hedge against inflation. Those who understand this will be in a stronger economic position than those who don’t.
I agree with Paul Tudor Jones’ recommendation that individuals who have investable assets put a small amount, perhaps 2%, into Bitcoin. And I’d go a step further and say that institutions should invest 5% of their corporate treasuries in order to stay competitive. Investing small amounts can produce tremendous upside with minimal downside risk.”
Paul Brody, principal and global innovation leader of blockchain technology at Ernst & Young:
“Bitcoin has reached that mature, stable store-of-value stage, but I fear it will never be without some controversy. While the Ethereum ecosystem is becoming a vibrant economic entity — with DeFi, smart contracts and infrastructure services being built atop the system — Bitcoin remains very focused on taking a role as a store of value. This will make it hard for some people to grasp, in the same way that many people still don’t quite realize that there is no gold or other asset that backs any other modern currency either. ”
Roger Ver, executive chairman of Bitcoin.com:
“Clearly not. Anything that can fluctuate from $4,000 to $20,000 in a single year is anything but a store of value. It is still just a speculative investment at this point.”
Samson Mow, chief strategy officer of Blockstream:
“Bitcoin was always a reliable store of value. The only people that say otherwise are the ones looking at it on very short time horizons. As public market companies like MicroStrategy have recently realized, Bitcoin is the only safe haven to store value — cash will just melt away from inflation and quantitative easing, gold is stagnant, and tech stocks are overextended. Now, we’re seeing giants like Guggenheim Partners and Ruffer pile in as they come to that same realization as well. Hyperbitcoinization is inevitable.”
Serguei Popov, co-founder of the Iota Foundation:
“Bitcoin and other popular cryptocurrencies have been a store of value for many people for quite some time already. The considerable capitalization of the crypto market corroborates this, and it’s likely that quite a few readers of this article are using cryptos in this way already. Whether it is ‘reliable’ or not depends on the definition of reliability. Of course, it is true that Bitcoin’s — let alone other cryptos' — price is quite volatile and will probably remain so, meaning anyone who uses it for a store of value might experience some strong emotions. On the other hand, it is very reliable in the sense that nobody can take your Bitcoin away, as long as you keep your private keys secret and store them safely. This constitutes a unique advantage of cryptocurrencies in the store-of-value context.”
Todd Morakis, co-founder and partner of JST Capital:
“The institutions are here. This year, we’ve seen a number of large traditional firms either announce or begin to explore Bitcoin. While custody is still challenging for institutions, the Paul Tudor Jones announcement earlier in the year as well as the improvement of institutional Bitcoin solutions have led to much broader acceptance of Bitcoin within the traditional financial community. Bitcoin is no longer a bad word on the street.”
Vinny Lingham, CEO of Civic:
“Bitcoin is a speculative investment. Even if we see the price goes up, we have to remember that it’s still speculative. When will it become a reliable store of value? As I’ve been saying for years, Bitcoin may eventually evolve into a reliable store of value, but this growth process will take at least five to 10 years. We’ll know that we’ve reached the goal when Bitcoin becomes far more stable and far less volatile — in a word, boring.”
These quotes have been edited and condensed.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
2020 has been a monumental year for the cryptocurrency market. For the world’s largest cryptocurrency, Bitcoin, the year saw drastic dips in price as well as a new ATH set during the December 2020 bull run. The larger crypto-space has not only seen increased adoption and greater use cases, but 2020 was also the year […]