Bitcoin rejects near $37.5K, on-chain data shows capitulation from short-term holders

On-chain data shows short-term Bitcoin holders continue to capitulate while long-term investors have been buying the dip in anticipation of the market moving higher.

Bitcoin started the week off with an abrupt bullish breakout to $37,500, a level some analysts have identified as a crucial 'line in the sand', but the rally was short-lived as BTC met selling near the lower arm of the bearish pennant that can be seen on multiple timeframes. 

While many traders are concerned that the 2021 bull market is now over and considering whether gains should be locked in, on-chain data shows that long-term Bitcoin (BTC) holders have been accumulating in preparation for a potential 2013-style double-pump that has the potential to elevate BTC to a fresh all-time high.

BTC/USDT 1-day chart. Source: TradingView

Ether (ETH), on the other hand, rallied 8% to $2,677 as chatter about a possible ‘flippening’ between Bitcoin and Ethereum continues to be a topic of discussion. Most recently, Bloomberg speculated that Ether could one-day surpass Bitcoin as the world’s cryptocurrency of choice.

Short-term holders are feeding the sell-off

Further insights into what is feeding the uncertainty in the markets can be found in the most recent “Week on-chain” report from Glassnode which looked at the activity of short-term holders (STH), who are newer market entrants that hold coins younger than 155 days, and long-term holders (LTH) who hold coins older than 155 days.

According to the Average Spent Output Lifespan (ASOL) metric, which provides insight into the average age of all UTXOs spent that day, LTHs primarily held through the recent dip as evidenced by the ASOL falling dramatically “back to levels below the accumulation range seen between $50,000 and $60,000."

Bitcoin average spent output lifespan. Source: Glassnode

Further proof that it has been STHs that are behind the sell-off can be found by comparing the amount of on-chain Bitcoin transfer volume that is in profit (LTHs) to the at a loss (STHs).

According to data from Glassnode, LTHs were seen taking profits early in the 2021 rally from $10,000 to $42,000 before their spending “reached a fairly stable baseline,” with last week’s sell-off “having little effect on their spending patterns” indicating “that LTHs are generally unwilling to liquidate coins at reduced prices.”

This compares to the behavior of STHs who “increased their spending by over 5x during this sell-off with the maximum spending occurring near the current local low of the market.”

Evidence of this can also be found in a review of the Spent Output Profit Ratio (SOPR) for STHs, who continue to realize losses by spending coins that were accumulated at higher prices at the current lower prices, indicating capitulation.

Short-term Bitcoin holder SOPR. Source: Glassnode

According to Glassnode: s

“Without doubt, the current market structure is best described as a battleground between the bulls and the bears with a clear trend forming between long-term and short-term investors. This is a battle of HODLer conviction and immediate buying power.”

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

Here’s What’s Next for Bitcoin As It Enters ‘Sweet Spot’ of Supercycle, According to Dan Held

Dan Held, Bitcoin bull and head of marketing growth at crypto exchange Kraken, says that Bitcoin is entering a period he refers to as the “sweet spot” of a possible supercycle.

Held previously turned heads when he coined the term “supercycle” which refers to a wild parabolic rally in Bitcoin driven by various catalysts, including the entry of institutional money.

 

In an interview with Blockworks, Held mentions that institutional buying of Bitcoin may be a big sign that the supercycle is coming to life, with huge unexpected rallies on the horizon.

“The institutions coming in are a big signal for the supercycle as well because it totally changes the dynamic of how much money can flow into this space, and what size. Some of these pension funds have a minimum of a billion-dollar investment. That’s a lot of buying power to buy Bitcoin and that means that Bitcoin’s price needs to move up to accommodate all these new market participants. Ark Invest did an analysis where if 10% of US public company treasuries were put into Bitcoin, Bitcoin would be worth $400,000.”

The early Bitcoin investor says that BTC is entering a sweet spot in the next four to eight months that could launch the world’s leading crypto asset into the high six figures.

“Over the next, I would say four to eight months is our sweet spot of when we should see the peak of the bull run. It could be another 12 months but we will either see if my thesis is validated or invalidated… It will be interesting to see what happens this year and early next year.” 

Like hedge fund superstar Cathie Wood, the Kraken executive also predicts that central banks may be forced to buy Bitcoin.

“What happens when the world comes to recognize Bitcoin’s value? It’s been largely considered to be a weird libertarian Luddite currency for such a long time. What happens when everyone FOMO’s in? What happens when central banks start buying?…

What the supercycle fundamentally describes is that this time will be different, and there’s a chance that there could be an incredible, incredible bull run where we see the world come to realize Bitcoin’s value and what happens when that occurs.”

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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.

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The post Here’s What’s Next for Bitcoin As It Enters ‘Sweet Spot’ of Supercycle, According to Dan Held appeared first on The Daily Hodl.

DOGEBEAR holder Barry Silbert says Dogecoin is ‘going back to sub $1 billion’

Barry Silbert isn’t holding back in saying how he feels about Dogecoin. In several tweets earlier today, the founder of crypto conglomerate Digital Currency Group (DCG) praised the passionate community, adding that the controversial meme token isn’t going away, but stated DOGE was grossly overvalued.

As such, the community is firmly split on the legitimacy of Dogecoin. While its year-to-date performance is no joke, currently up +6,000%, the crypto purists argue that DOGE’s lack of fundamentals, more so its ill-defined use case, puts it squarely in the shitcoin camp.

But with prominent figures trying to build a payment use case, is this about to change?

Billionaires building a use case for Dogecoin

Both Elon Musk and Mark Cuban have previously pushed the idea of using Dogecoin for payments. Cuban, in fact, already started accepting the memecoin at NBA team Dallas Mavericks earlier this year.

Dogecoin found favor as a tipping method to show appreciation for creators and social media posters in its early days. But more recently, given its phenomenal growth, which peaked at $93 billion earlier this month, making it more valuable than BP  and British American Tobacco, the search for a more solid use case began to take hold.

Musk claims to be in touch with Dogecoin developers to make the token faster for regular payments. At the same time, Cuban is driving the payment use case, in conjunction with U.S payment provider BitPay, by making it easier for merchants to get on board.

However, in a Twitter spat initially about Bitcoin’s flat weekend performance, Silbert laid out his prediction for the Dogecoin market cap, saying it’s going back below $1 billion.

Despite the pushback from Dogecoin fans, Silbert held firm, saying DOGE is a flash in the pan that will lose momentum as top buyers continue sustaining losses.

“You’re being naive. DOGE is the ultimate momentum, gamble trade. once the momentum is gone and the current holders take a bath on the trade, they’ll move on to the next one. they’ll learn there are many other/better ways to make 10x,” he stated.

He said he’s excited to see what will become of DOGE but signed off by saying it’s not worth its current market cap of $37 billion.

Silbert went short

Earlier this month, at the height of Dogecoin’s all-time high market cap, Silbert announced he had taken a short position on DOGE, as he predicted its price would go down.

So far, that is a bet that’s paid off. Since the announcement three weeks ago, DOGE has lost 54% of its value against the dollar. In comparison, its performance against Bitcoin has fared better, having lost 29% compared to the leading cryptocurrency.

The question on everyone’s mind is, are further drops incoming?

The post DOGEBEAR holder Barry Silbert says Dogecoin is ‘going back to sub $1 billion’ appeared first on CryptoSlate.

DEFI & NFT Summit Will Bring Together 16+ TOP Experts on June, 10-11

Disclaimer: The text below is a press release that was not written by Cryptonews.com. DeFi & NFT Summit is a 2-days online business event dedicated to understanding decentralized finance, NFT market and investment opportunities to take place on June, 10-11. The Summit will bring together 16+ TOP investors, regulators, solution providers and subject matter experts to discuss & debate

Andreessen Horowitz Discusses Raising Third Crypto Fund to $2 Billion, Sources Say

Andreessen Horowitz Discusses Raising Third Crypto Fund to $2 Billion, Sources Say

In May 2020, back when the crypto economy was still tumultuous from the coronavirus outbreak fears and gloomy global financial outlook, in general, the private venture capital firm Andreessen Horowitz (a16z) revealed the 500 million-dollar “Crypto Fund II.” A report published on May 27 by the tech writer Eric Newcomer indicates that Andreessen Horowitz is contemplating $2 billion in financing for the next crypto fund.

Former Bloomberg Reporter Says ‘a16z in the Process of Tripling Down on Crypto’

The well known venture capital firm Andreessen Horowitz founded by Marc Andreessen and Ben Horowitz back in 2009 has been a driving force in the crypto industry in regard to financing projects and startups. Marc Andreessen has been a firm believer in bitcoin for quite some time now and a16z has funneled millions of dollars into the industry during the last eight years.

In recent times, Andreessen Horowitz launched two funds dedicated to the development of “crypto networks and businesses.” Bitcoin.com News reported on the last venture revealed by the a16z executives Katie Haun and Chris Dixon when the two revealed the Crypto Fund II.

That specific fund invested $515 million into networks, startups, and businesses dedicated to the blockchain and crypto asset industry. Now the former tech writer for Bloomberg, Eric Newcomer, details that a16z third crypto fund is “in talks to raise $2 billion.”

“Andreessen Horowitz is in the process of tripling down on crypto, raising its third crypto fund since 2018,” Newcomer said. “Sources tell me that Andreessen Horowitz is targeting $2 billion for its third crypto fund. That’s double the size of what many people are expecting,” he added.

Someone Familiar With the Matter Told Newcomer a16z Sold ‘at Least Some of Its Ethereum Holdings’ Before the Market Downturn

Newcomer’s source also disclosed that Andreessen Horowitz has “distributed at least some of the Coinbase shares soon after Coinbase went public.” Moreover, the firm had ethereum (ETH) holdings and a source familiar with a16z’s operations said “the firm sold at least some of its Ethereum holdings at around $3,800 before the price crashed.”

The report further added that there seems to be an “arms race” in cryptocurrency investments as Fred Ehrsam and Matt Huang’s Paradigm have been making waves. “The Andreessen fund and Paradigm have frenemy status. I hear that some Andreessen Horowitz partners are limited partners in Paradigm,” the author’s report details.

On the same day, a16z revealed an investment into the crypto firm Talos, Newcomer also said he hears “a lot of buzz about investment Uniswap.” Of course, similar to Bloomberg’s reporting, Newcomer’s source is someone familiar with the matter.

“It will be just as interesting to see who dives into crypto as it will be to see who decides to sit this goldrush out. But Andreessen Horowitz looks like it will be well positioned to fund the next Coinbase,” Newcomer concluded.

What do you think about Andreessen Horowitz tripling its crypto fund to $2 billion? Let us know what you think about this subject in the comments section below.

Mozik (MOZ) Double IDO Rundown

[PRESS RELEASE – Please Read Disclaimer]

It’s just right around the corner! For the lucky ones, here’s what you need to pin on your calendar:

mozik-ido-pr

Mozik (MOZ) BSCpad IDO details

Launch Date: Sunday, June 6th

Staking Eligibility Cutoff: 5:00 AM UTC

Allocation Round Open: 8:00 AM UTC

Public Sale (FCFS) Round Open: 1:00 PM UTC

Pancakeswap Listing Date/Time: Monday, June 7th, Time TBD

Details & Instructions on Mozik BSCPAD IDO

Mozik(MOZ) Ignition IDO details

IDO Launch: Monday, June 7th

Galaxy Pool opens: 11:00 AM UTC

Moon Pool opens: 11:30 AM UTC

  • Tokens Available on Ignition: 9,000,000 MOZ
  • Price per MOZ:02
  • Allocation size per ticket:150
  • Vesting Schedule:33% at TGE, then 33.33% per month for 2 months
  • Whitelist: closed
  • KYC: will be open until June 7

Details & Instructions on Mozik Ignition IDO

Ticker: MOZ

Market Capitalization at Listing: 511,000 USD

Circulating Supply at Listing: 25,550,000 MOZ

Maximum Token Supply: 1,000,000,000 MOZ

Stay tuned on our Telegram channel and Twitter, where we will be providing live instructions there. Stay safe & flatten your belt, we set sailing soon.

About Mozik

Mozik is a decentralized music NFT platform aiming to build a healthier and fairer music ecosystem. Through the decentralized NFT platform, Mozik adopts blockchain technology to register earnings through music copyright, super-star IP, and IP derivatives on-chain. All the participants in the music ecosystem, including creators, publishers, customers, and fans can fairly participate. Through Mozik’s platform, artists will be incentivized to create more and better quality music. With lowered publishing cost and higher engagement from music fans, all participants can share in the rewards, and create a healthier and fairer music ecosystem.

Crypto Exchanges in India Are Garnering a Lot of Money

Cryptocurrency has never been looked at through a positive lens by India, and the Asian country has always had a certain sense of animosity towards it. Nevertheless, cryptocurrency exchanges and related firms have continually put their money into India, hoping that things will change in the coming future.

India Is Getting a Lot of Financial Attention

India really set itself up on the “crypto enemies” list back in early 2018 when it was announced that the country was banning all financial institutions and standard banks from doing business with enterprises that delved in blockchain and cryptocurrencies. While trading itself was not banned, the financial companies of India could not provide services, tools or products to any firms delving in digital assets.

This was later deemed unconstitutional in 2020, and many people could not have been happier. They were convinced that the country of India was about to really earn a place on the map as one of the world’s largest and most prevalent crypto-trading havens, and for a while, it sure looked like the nation was heading in that direction.

However, it was later revealed by the country’s parliament that a full crypto ban – trading and all – was being considered, and many analysts could not believe what they were hearing. This was sure to set India behind considering how far certain neighboring regions had come regarding the acceptance of crypto, and yet India seemed to be moving backwards.

Many crypto exchanges now want to do all in their power to keep India-based digital trading platforms alive and have been donating money like crazy to their operations. Harish BV, the co-founder of Unocoin, explained in a recent interview:

There is an increasing trend of foreign cryptocurrency exchanges investing in Indian cryptocurrency exchanges. It is because India has a population of 1.39 billion that is predominantly young, which is seen as tech savvy and more adaptable to crypto saving.

Former finance minister Arun Jaitley explained in a statement three years ago the country’s outlook when it came to crypto:

The government does not recognize cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these crypto assets in financing illegitimate activities or as part of the payments system.

Let the Money Flow!

Despite this, Sumit Gupta – CEO and co-founder of the Coin DCX exchange – explained:

We have been receiving investments consistently since our inception three years back. Investors trust us despite the policy uncertainty. They have seen how we as a leading player in the industry have grown, and above all, the Indian market does offer a lucrative proposal for any investor.

India is also a solid market in many ways considering how many people continue to trade despite the constant threats from government entities. Wazir X estimates that anywhere between seven and eight billion people in India hold over $1 billion in crypto investments.

The post Crypto Exchanges in India Are Garnering a Lot of Money appeared first on Live Bitcoin News.

Privacy-focused Panther Raises 8M USD in Oversubscribed Private Sale

Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com. Privacy-focused DeFi solution Panther Protocol has raised 8 million USD in a private sale. The sale was oversubscribed with the participation of 140 investors. Panther enables end-to-end privacy on digital assets. It ensures that all crypto transactions

How relevant is the $900M open interest on Bitcoin options above $100K?

Pro traders have been buying ultra bullish Bitcoin $100,000 to $200,000 options, but how confident are they that these targets will be achieved?

Bitcoin (BTC) is fast approaching its worst monthly performance in a decade, but some investors are using this as an opportunity to buy ultra-bullish long-term derivatives. There are currently over $900 million in call (buy) options aiming at $100,000 and higher, but what exactly are those investors seeking?

Options instruments can be used for multiple strategies, which include hedging (protection) and also aiding those betting on specific outcomes. For example, a trader could be expecting a period of lower volatility in the short-term, but at the same time, some significant price oscillation towards the end of 2021.

Most novice traders fail to grasp that an investor might sell an ultra-bullish call (buy) option for September to improve gains on a short-term strategy, therefore not expecting to carry it until the expiry date.

Bitcoin option profit/loss estimate. Source: Deribit Position Builder

The chart above shows the net result of selling a Bitcoin $40,000 July 30 put. If the price remains above that threshold, the investor scores 0.189 BTC gain. Meanwhile, any outcome below $33,700 will yield a negative result. For example, at $30,000, the net loss is 0.144 BTC.

The same trade will occur in the example shown below, but the investor will also sell 40 contracts of the $140,000 call option for Sept. 24. The investor is letting go of gains from a potential price increase in exchange for higher net profit at present levels.

Bitcoin option profit/loss estimate. Source: Deribit Position Builder

Take notice of how the same $40,000 outcome now results in a 0.464 BTC gain, and any price level above $26,850 yields a positive result. However, due to ultra-bullish calls, the trade will also net negative outcomes if Bitcoin trades above $68,170 on July 30.

Therefore, analyzing those ultra-bullish options separately doesn't always provide a clear picture of investors' intentions.

Aggregate Bitcoin options open interest: Source: Bybt

There are currently 24,625 Bitcoin call option contracts at $100,000 or higher, equivalent to $910 million in open interest.

Sure, it sounds like a lot, but the current market value of these ultra-bullish options is $15.4 million. For example, a Dec. 31 call option with a $120,000 strike is worth $1,500.

As a comparison, a $30,000 protective put option for July 30 is worth $2,700. Therefore, instead of focusing exclusively on open interest, one should factor in the actual cost for each option.

While these flashy $300,000 Bitcoin call options make headlines, it does not necessarily reflect true investors' expectations.

For Bitcoin holders, it makes sense to sell $100,000 and higher call options and pocket the premium. Worst case scenario, one will be making a sale in December at $100,000, which does not sound like a bad investment at all.

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.

Human Rights Foundation releases $210K in Bitcoin for crypto development cause

TL;DR Breakdown

  • Human Rights Foundation decides to support the growth of Bitcoin.
  • $210K released to facilitate the translation of the Bitcoin manuscripts into other languages.

Human Rights Foundation has recently taken up another new and beautiful initiative and that is to diversify and develop the already existing Bitcoin cryptocurrency. For the sole purpose of development, a whopping amount of cash has been liberated by the organization. This cash amounts to a total of $210,000, a huge sum.

Bitcoin has a scalability issue and this is the reason why a network called the Lightening Network exists. The aim of Human Rights Foundation was to appoint 2 developers that will improve the existing interaction of people with Bitcoin. For this purpose, 2 teams of Lightening Network wallets and organizations for the translation of Bitcoin manuscripts into the Arabic language will be created. The reason for this is to make crypto knowledge available to people far and wide.

Human Rights Foundation’s intended improvements?

Improvements will be made using the grant that Human Rights Foundation has released. Firstly, Calvin Kim will be using his share of the money as fuel to improve and enhance Utreexo. If you don’t know what it is, you should definitely search for it. It is a project which is being implemented on the Bitcoin blockchain network which will improve the scalability of the nodes by a huge margin.

The number of hours consumed along with the efforts involved will also go down considerably. Secondly, Dhruv Mehta will use the money to fuel his project which has been titled as Bitcoin Improvement Proposal 324, and which packs serious potential. This proposal seeks to isolate and diminish the chances of Sybil attacks on the Bitcoin chain, ie, Dhruv Mehta would oversee and improve the security of Bitcoin.

Next, Abubakar Nur Kahlil would be working with the help of other technicians to build a unique and efficient wallet. This wallet will be specific and would be operating in the African country of Nigeria where a lot of corruption has made home and also, where citizens and civilians are in need of crypto like Bitcoin. This leads to conclusion that Khalil is aiming to bring about a heavy change in the entire landscape of Nigeria where he belongs to along with the people in it.

As for the Lightening Network wallet provider, Sphinx Network, it will be responsible for open encrypted communication channels between its users and the activists so as to implement humanitarian funding. Sphinx Network specializes in providing Lightening Network communication and texting to its users. The second organization called Breez also works on Lightening Network. The task of Breeze will be to use his share of the grant provided so as to enhance and work upon the chatting services it owns and also make better provisions for its users by trying to make technological advancements.

Also, the translation of the details and technicalities of Bitcoin including some other content into the Arabic language is taken up by Arabic_HODL. Such huge development steps when implemented will lead to an improvement in the stable architecture of Bitcoin and a huge number of increased opportunities. It can be concluded from the entire discussion that the Human Rights Foundation has a goal in mind to completely bring about a change in the manner in which the entire world perceives Bitcoin.

U.S. bursts illegal Bitcoin ATM operator

TL;DR Breakdown

  • California Department of Justice burst illegal Bitcoin operator
  • How Mohammed runs his illegal business operations

The California Department of Justice has burst Kais Mohammad, who operated illegal Bitcoin ATMs among other crimes and subsequently sentenced him to two years in prison.

Mohammed also pleaded guilty to laundering between $15 million and $25 million in Bitcoin and cash.

Between November 2014 and December 2019 operated “Herocoin” and used the moniker “Superman29” to advertise his business online, having customers buy and sell Bitcoin for cash in transactions of up to $25,000.

Outside Herocoin, Mohammed also had illegal Bitcoin ATMs and kiosks where he sells and buys Bitcoin without the required identification procedures.

It’s unclear how different these machines were from a standard crypto ATM. He also allowed customers to conduct multiple, consecutive transactions of up to $3,000 each.

Despite knowing that some of his clients operated illegal businesses, he helped them launder proceeds of crimes. He knew primarily that what he processed were proceeds from the dark web.

Illegal Bitcoin ATM ring: How Mohammed circumvent the system

The U.S.attorney’s spokesperson, Ciaran McEvoy, revealed that the convict used to be a banker and likely aware that he was required to register his activity with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN).

Instead, she notes that he uses his knowledge to avoid compliance and profit by making his business efficient, unchecked, and nearly anonymous.

McEvoy said Mohammed should be aware that his activity fell under anti-money laundering regulations, including the need to file currency transaction reports, conduct due diligence on customers, and file suspicious activity reports for any transactions over $2,000 that he knew or had reason to suspect were involved in criminal activity.

He chose to stay silent on all these activities, which has landed him in prison now.

At some point, Mohammed registered his business with regulators but did not comply with regulations until his sentence.

Will Bitcoin Hibernate – Or Hit $100,000 This Year? Altcoin Daily Looks at State of Crypto Markets

Aaron Arnold, co-founder and host of Altcoin Daily, is unveiling why he believes Bitcoin is not yet ready to go into hibernation.

In a new video, Arnold tells his 815,000 YouTube subscribers that he remains extremely bullish on the flagship cryptocurrency amid the sustained growth of the Bitcoin network.

“I’m extremely bullish on Bitcoin. Besides the strong fundamentals: censorship-resistant, decentralized, permissionless, undebaseable that Bitcoin has always had, there’s so much going on in 2021. In my opinion, there’s no way Bitcoin does not make it over $100,000 this year… 

Bitcoin has so much going for it. Bitcoin hashrate is up. Bitcoin active addresses are up. Bitcoin balance on exchanges is still very low.”

The crypto analyst also points to the fact that institutions and regulatory bodies continue to embrace the largest crypto asset.

“PayPal, Venmo, plumbing, infrastructure like nothing we’ve ever seen before. The U.S. Comptroller of Currency is in approval mode. They’re regulating it. Regulation equals game on. Regulation means they’re not going to ban it. This is why Wall Street is accepting it. This is why we’re seeing institutions create the plumbing, create the infrastructure. They’re preparing for the next decade not just the next year. CBDC (central bank digital currency) adoption. This is amazing PR (public relations) for Bitcoin.”

Looking at on-chain data, Arnold says that HODLers remain confident in the long-term outlook of Bitcoin as they take the recent market crash as a chance to increase their holdings.

“Long-term HODLers are stacking on this dip. They can tell entities that are ‘long-term HODLers’ because they have a history of buying much more than they ever sell and these people are buying the dip. In fact, to get specific, in the last month, long-term HODLers have added 221,000 Bitcoin to their holdings.”

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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.

Featured Image: Shutterstock/GrandeDuc

The post Will Bitcoin Hibernate – Or Hit $100,000 This Year? Altcoin Daily Looks at State of Crypto Markets appeared first on The Daily Hodl.

Binance Smart Chain Faces yet Another Flash Loan Attack: Belt Finance Loses $6.3 Million

Binance Smart Chain Faces yet Another Flash Loan Attack: Belt Finance Loses $6.3 Million

Belt Finance, a Binance Smart Chain-based decentralized lending protocol, lost $6.3 million in a flash loan attack last week. The attackers took advantage of a series of inefficiencies in the smart contract to manipulate the price of the set and obtain profit from a series of transactions. This is just the last of a series of attacks that seem to be pointing to Binance Chain protocols due to their vulnerabilities.

Belt Finance Loses $6.3 Million in Flash Loan Attack

Belt Finance, a borrowing and loaning protocol that operates in the Binance Smart Chain suffered a flash attack last week that caused losses of over six million dollars. The attack, that used Pancakeswap as a tool for executing its strategy, used a series of operations to manipulate its belt/BUSD pool, a stable token in the protocol, and profit due to this inefficiency. The Belt Finance team declared in a post mortem report that the attackers managed to exploit this bug eight times before being detected.

The team of Belt Finance immediately suspended withdrawals and deposits to the affected pools and claimed the attack vector that was used for the attack has been patched after the attack. In addition to this, they are studying how to reimburse the users affected by this event. The team declared:

We are currently working to create a fair and comprehensive compensation plan for those affected with a snapshot of the accounts that were affected by this attack. We will release a compensation plan within the next 48 hours, a time frame necessary for us to get and go through all the logs to see exactly which users need to get compensated.

The team also denied allegations and rumors surrounding the sale of tokens by part of the members of Belt Finance. While some point in the direction of a possible rug pull, the similarity with other attackers can lead to believe this is yet another flash loan attack directed to poorly secured Binance Smart Chain (BSC) protocols.

Not the First Time

The BSC network has become a magnet for flash loan attacks in recent days. Just this month, PancakeBunny, another liquidity protocol in the chain, also suffered an attack that made them lost three million dollars, and Bogged Finance, a similar project, lost almost the same amount in a flash loan attack too. Alongside this, the defi protocol Burgerswap was siphoned for $7.2 million in a flash loan attack.

This has led developers to believe there is an organized group targeting BSC protocols. This is what the official account of the Binance Smart Chain declared on Twitter, advising these protocols to stay on guard for this kind of attack and to work with audit companies to double-check their code for vulnerabilities.

What do you think about the recent attack on Belt Finance? Tell us in the comments section below.

Crypto Listing and Delisting Announcements: Week 22

Here is our weekly collection of digital asset listing and delisting, trading pair-related announcements by crypto exchanges that we found last week and today. Have we missed something? Do you have information about new listings and/or delistings? Let us know here. _________________________________________ Bibox Listings: Frenchie (FREN) ROCKS (ROCKS) APENFT (NFT)

Bitcoin Mining Soars in Argentina Amid Cheap, Subsidized Energy

BTC miners in Argentina are thriving by taking advantage of cheap, subsidized energy.

Countries with low utility rates have been great spots for crypto miners, and the resurgence of capital controls is boosting profits for miners in Argentina. The news was first reported by Bloomberg, later republished in the Buenos Aires Times.

Miners Taking Advantage of Cheap Electricity 

Experts like Nicolás Bourbon, a crypto-miner in Argentina, have said this is an opportunity to take advantage of the new policies implemented by the local government.

“Even after Bitcoin’s price correction, the cost of electricity for anyone mining from their house is still a fraction of the total revenue generated. Miners know the subsidies are ridiculous. They simply take advantage of it.” —Said Bourbon.

Compared to Colombia, Chile, and Brazil, Consumer electricity bills are barely 2 – 3% of the average monthly income in Argentina, making it one of the cheapest countries in the continent next to Venezuela.cheap-power-1181517

Bitfarm Targeting Argentina

Bitfarm Ltd, a Canadian mining firm, signed a power purchase agreement with a private Argentinian power producer —enabling the firm to extract cryptocurrencies in Patagonia in 2022, with the use of a total of 55,000 machines. The contract will last eight years and has an effective cost of 0.022 per kilowatt/hour.

“We were looking for places that have overbuilt their electrical generation systems. Economic activity in Argentina is down, and power is not being fully utilised. So it was a win-win situation.” Bitfarms’ President Geoffrey Morphy said in an interview.

Cheap electricity in Argentina has been tagged as a policy intended to win votes for the next legislative elections by many experts, causing tensions between other political parties. But miners are now seeing this as a great opportunity to reap profits and survive the expanding hyperinflation.

Argentinians Embracing Crypto Amid Economic Downturns

Argentina’s economic downturns have significantly propelled cryptocurrency usage. The current inflation rate is about 50% annually, and citizens can legally convert only 200$ per month.  Argentinians now embrace cryptoassets as an inflation hedge.

Cryptocurrency accounts on Binance and Coinbase soared in the country while the Argentinian Peso devalues with time. It shouldn’t be surprising that miners are now choosing the country to take advantage of cheap electricity.

“The crypto that miners generate is typically sold at the parallel exchange rate, but the energy is paid for at a subsidised rate. At the moment, revenues are very high.” Bourbon said.

NFTs — The Most Comprehensive Guide

Usually, when we hear about crypto in the news, it is not for good. That happened lately worldwide with NFTs right after the 137th announcement of the death of Bitcoin.

Non-fungible assets are just normal stuff. Fungible assets are the odd ones out!

Devin Finzer, CEO and co-founder of OpenSea.io

As everybody already knows by now, NFT stands for Non-Fungible Tokens and, from a market perspective, very simply put, because there is really no reason to complicate things further, if you set something apart and it retains a proportional value of the something left, then it is fungible. Otherwise, you broke it, my friend, it was non-fungible. 

Was it a driller? The first picture of Vitalik doing “blockchainy” things? Well, now it is no more.

We will get back to that idea but the concept is that simple when you take it out of the classical gold ingot example. That makes most of the things in our lives non-fungible, See? Non-fungible.

Non-fungible tokens are representations of such kinds of assets that have opened a whole new world of possibilities. Let’s explore how NFT makes the concept more powerful by looking at its characteristics.

The Properties of NFTs

As currently defined, NFTs have the following properties, as mentioned in the Non-Fungible Token Bible.

  • Standardization: The format in which an NFT comes defined is standard, so any platform supporting it can access the information related to that asset. This property prevents the asset from being constrained to a single domain, thus making it reusable or inheritable in other places.
  • Interoperability: The definition of non-fungible tokens and changes of parameters may also be valid and understood beyond the place where it was first created. Parameters such as ownership, transfers, or access rights, for instance. Also, the changes related to the asset can be checked by anyone.
  • Tradeability: This frees any item from the dependence of having to be sold in certain specialized places. With all the related information accessible, anyone can sell an NFT in any compatible market.
  • Liquidity: Sites that offer a market for more types of items attract a greater number of interested parties, expanding the potential demand for any type of asset and increasing its liquidity.
  • Immutability: Non-fungible tokens live on a blockchain. There is no need to belabor this point, is it?
  • Programmability: With this last property, our heads can spin, imagining the possibilities it provides, right?

NFT Standards

Well, the time has come to talk about numbers, ERC numbers — and we all know the number 20 that blesses our crypto wallets with precious, and not so precious, tokens.

NFTs however are defined in the ERC721 standard. We are referring to pure non-fungible asset tokens. 

Let us return for a moment to the above definition of this idea. Value is the key aspect of fungibility for NFTs, not to be confused with the non-fungible price. 

“Price is what you pay; value is what you get.” – Warren Buffet

In addition to the aforementioned physical integrity of a given asset, its market value can be affected by the assigned emotional component, its useful life, or the time we can make use of it in a time-sharing regime.

simpsons nft

https://simpsons.fandom.com/wiki/Dead_Putting_Society?file=Homerandflanders.jpg

These types of uses refer to semi-fungible assets and are defined in the ERC-1155 standard. It introduces classes that may include items sharing some set of parameters that define them.

As you might guess, this brings us to a small drawback. New standards may require new wallets which would force us to have to use more applications. 

Fortunately, the DeFi industry is always vigilant and has already created solutions like the folks at Eidoo that integrate a non-fungible token Manager within the same ERC20 wallet application. So, no more passwords to remember, forget or repeat — just the one for accessing your crypto walllet.

What is really important is to keep the distinction between the two cases — non-fungible and semi-fungible — because that is where the magic happens.

Using NFTs

As it appeared in the news recently, the most scandalous and evident use has been that of digital assets of particular relevance and cuteness, also known as Crypto Kitties.

crypto kitties nft
Source: https://www.pngwing.com/en/free-png-meqms

But let’s be rigorous and ask ourselves what’s so interesting about the non-fungible Crypto Kitties?

The truth is that they demonstrated the power behind non-fungible tokens by integrating their lovely parameters on the metadata, defining them univocally to create an NFT that represented each kitty without any possibility of error.

nft infographic
Source: OpenSea Blog

Beyond sensationalism, the truth is that the NFTs have had a way beyond, reaching the world of collectibles. This type of item has already benefited from an important development with the appearance of the Internet and social networks and could be about to live a golden age thanks to an ERC document.

Art is another type of asset ideal to make use of a non-fungible token format. At this point, art is constrained to the supported format requirements (JPG and PNG), but as things develop, we might see other formats or techniques. Who knows, maybe the return of steganography on image, music, and video integrated with viewers and players.

Furthermore, a particularly interesting, almost natural, use of NFTs has been seen in the gaming world. Quickly, the sharp minds in the MMORPG industry saw the possibility of defining assets and metadata (both their characteristics and their cool names) as tokens so that ownership would be better represented to the community. 

In essence, non-fungible tokens are inherited assets to be grouped and sold with parent assets. In other words, if you transfer the ownership of a character, not only game perks but also its NFT-registered assets will go with it.

NFT Possibilities

So far, we have mentioned the most obvious use cases, but what other fields could be opening up already? 

In general, any product where provenance is a key component of its value may be a viable candidate to enter the market as a non-fungible token. These types of products usually have to be backed by certificates and the sites that sell them act as auditors and guarantors of the veracity of the item. But, hey, that’s what the blockchain with its immaculate transparency is for.

Products that are more commercial than unique pieces but try to retain a certain aspect of exclusivity due to their branding or limited editions are also very NFT-able.

However, this is not going to happen. Because it is already happening. Exclusivity is the ultimate concept that fits in the non-fungible token catalog. Either you have it or you don’t.

There are already initiatives that point in this direction on the part of the National Basketball Association (NBA), National Football League (NFL), Ultimate Fighting Championship (UFC), Formula 1, Louis Vuitton, Samsung, and Nike.

NFTs could become the next big thing in the crypto ecosystem. In addition to their suitability for traditional assets, the inclusion of classes with ERC1155 makes it possible to speculate about new types of non-fungible tokens applied to DeFi, derivative products, insurance, e-identity, last wills, etc. 

It is difficult to predict with certainty where the innovation will go but it is certainly something that goes beyond the interest of digital cat owners.

Image(s): Shutterstock.com

The post NFTs — The Most Comprehensive Guide appeared first on NullTX.

Can Ethereum beat Bitcoin as the most popular cryptocurrency on the market?

TL;DR Breakdown

• Ethereum network will launch its version 2.0 by the end of the year.
• Ether can be the network that solves many problems on the internet.

Ethereum has gained more popularity globally, mainly due to its smart contracts admission. The cryptocurrency stands out for including the blockchain network that has driven the crypto market by the Dapps and technologies that surround it. These characteristics are outstanding, unlike Bitcoin, which has basic technology.

Bitcoin is “digital gold” and protects money against global inflation. With its reputation for being the first cryptocurrency, this ability makes the decentralized market position itself as king. However, many investors wonder if Bitcoin will ever lose its throne.

While Bitcoin is the pioneer cryptocurrency, Ethereum has a more open scheme of work and a promising future. Blockchain technology is compared to the internet because very few trusted its operation in its early days. The blockchain network can be used by many companies, banks, and the internet itself.

Ethereum cryptocurrency has gained popularity

Ethereum

The cryptocurrency Ethereum aims to become the new protocol for the internet using its Dapps and smart contracts. This implies that you will gain a lot of money, which will be reflected in the changing growth in cryptocurrency. But Bitcoin lacks those functions, so it is very limited in the battle against Ether.

However, both blockchains have been limited by flaws in their scalability and high transaction costs while continuing to grow. The technological cryptocurrency tries to evade these limitations with a new update in its system. By the end of the year, Ether fans can enjoy version 2.0, offering faster transactions.

Updates on Ether

With the Ethereum 2.0 a few months after talks of launch, many investors feel encouraged by this great project. These changes have attracted the eyes of many companies and young cryptocurrency traders. With the more functioning Ether network, people may ditch many cryptocurrencies and focus on new technology.

This Ether system upgrade can benefit where the value of the cryptocurrency skyrockets. Although many crypto enthusiasts think that Ether will exceed the Bitcoin price, speculation does not necessarily equal truth.

If Ether increases in value, so will Bitcoin. BTC is characterized by its volatility and mining, something that ETH has lacked since its inception. Many investors also believe that Bitcoin will hit $100K before the year runs out.

Although the technology network project is good, perhaps it is an exaggeration to surpass Bitcoin. The Bitcoin capitalization has always led to the decentralized market, and it likely will not be removed from the throne. While Ether investors increase, this will also benefit Bitcoin and its price.

Each cryptocurrency has its characteristics, value, and number of fans who trust its plans. ETH may have good targets, this will undoubtedly increase its value, but it is going to take a lot of work to beat Bitcoin.

Cryptos will soon replace Central Banks – Analyst

TL;DR Breakdown

  • Charles Hoskinson says cryptos would oust Central bank
  • Loan inaccessibility, corruption and other of banks deficiencies

Cardano developer Charles Hoskinson has expressed confidence that soon enough, cryptocurrencies would replace Central Banks. He said cryptos are the antidote for the corrupt traditional financial system.

He said this in a recent YouTube video where he shared his thoughts on the financial ecosystem and the significant role of cryptocurrencies.

According to Charles, Central Banks are no longer efficient like they used to be as he said, many of them are now bedeviled by corruption.

”You can’t go back. You can’t change that; you can’t put that genie back in the bottle. Central banks will fade away. It’s just going to happen. Your conventional legacy banks are going to fade away. The payment rails that are so nepotistic, and corrupt, and slow, he said.

He said further that the traditional finance system is defective, sighting an example of a farmer who can not easily access credit facilities from banks. If they do, it’s usually expensive.

He said cryptos are the way out of this broken financial network, as he put it.

Cryptos primed to change the world – Hoskinson

The Cardano developer said that eventually, cryptos are going to change the world.

”Never allow them to say that ours is the industry that’s the risk. Ours is an industry that’s the antidote to the corruption and nepotism that we found. Theirs is an industry of frustration that an industry of creativity and innovation has now replaced.”

He said ultimately, cryptos are the only thing that could manage the population as the market can only continue to grow with limitless innovations.

The debate around cryptos vs. Banks, why cryptos would oust commercial banks, and why banks have been afraid of cryptocurrencies have been a long one that doesn’t look set to be concluded anytime soon.

While one claims the other is used mostly by criminals to launder money and engage in shady businesses, the other claims it has simply brought freedom, security, decentralization, and innovation to how the financial system works.

3 on-chain indicators suggest the Bitcoin price sell-off is losing steam

As Bitcoin price shows new signs of bullish momentum, data from various on-chain indicators suggest that the current sell-off is reaching an end.

Bitcoin (BTC) entered a consolidation phase following its May 19 crash from $42,600 to $30,000 on Coinbase. The flagship cryptocurrency recovered its losses quickly and reclaimed $40,000 but it failed to log a clear bullish breakout above this resistance level and at the time of writing the price remains pinned below $40,000.

The latest price action in the Bitcoin market has been — at best — choppy, with traders showing no clear indication about their short-term bias. Some analysts predicted that if the BTC/USD price does not break above $40,000, it may very well fall to as low as $20,000 in the coming sessions.

Interestingly, a handful of on-chain indicators tell a different story. One of the most interesting themes holding Bitcoin's bullish bias intact is witnessing long-term holders and accumulation addresses stacking more BTC during the recent price dip.

Furthermore, a metric known as the Bitcoin Entity-Adjusted SOPR (Spent Output Profit Ratio) shows that the market is no longer selling Bitcoin at a loss on aggregate.

Bitcoin Entity-Adjusted SOPR. Source: Glassnode

Meanwhile, on-chain data shows that exchanges saw a decline in their reserves, a signal that traders have been withdrawing their digital assets to cold wallets or depositing them into DeFi liquidity pools for more lucrative returns.

While the short-term perspective may be tilted toward bears, the following three on-chain indicators hint that Bitcoin could be in the process of bottoming out.

Bitcoin: Spent Output Age Bands

The correction in Bitcoin price resulted in three kinds of reactions in the spot market. The first involved panic-selling by short-term traders who sold Bitcoin to minimize their losses, probably because they bought the cryptocurrency near its top. 

The second reaction involved HODLERs that decided to hold on to their exiting bitcoin supply. They showed a long-term conviction in Bitcoin's bullish bias against supportive macroeconomic fundamentals, such as ultra-low interest rates, poor yields on government bonds, inflation fears and a declining U.S. dollar, that made hedging assets like Bitcoin look attractive to HODL.

The third reaction was a mix of HODLers and accumulators as traders utilized the Bitcoin price dip to buy more of the cryptocurrency at a 'discount'.

Various on-chain indicators showed a huge contrast between the Bitcoin reserves held by short-term holders and long-term holders during the price crash.

For example, the 'Bitcoin: Spent Out Age Bands' chart below, last week saw a greater amount of selling coming from coins that were one day to one week old. These coins kept moving in and out of the market, accurately reflecting the state of higher price volatility in the market last week.

Bitcoin spent output age bands, calculated per seven-day moving average. Source: Glassnode

Meanwhile, coins that remained unspent for 1 to 3 months and 3 to 6 months also changed addresses in the wake of the recent price crash.

Traders that held Bitcoin in wallets for 1-6 months moved them in May. Source: Glassnode

Another Glassnode metric dubbed the 'Bitcoin: Total Supply Held By Long-Term Holders' showed that long-term holders — entities that hold Bitcoin for more than six months, became the largest beneficiaries of the tokens sold by the short-term holders.

Bitcoin supply held by long-term holders kept increasing amid the May crash. Source: Glassnode 

In a weekly note to clients, Anthony Pompliano, investor at Pomp Investments, said:

"Long-term holders are adding to their positions, short-term holders are selling, some entities in the short-term cohort have now reached the 155-day threshold for this metric and are now in the long term cohort." 

This divergence pointed to long-term stability in Bitcoin price as more and more serious holders took positions against the ongoing macroeconomic crisis.

Bitcoin balance on exchanges drops

The net Bitcoin reserves held by cryptocurrency exchanges have also declined in the past seven days, showing that fewer and fewer traders now want to sell their Bitcoin holdings.

The metric points to a typical trading behavior. Traders only deposit Bitcoin to their exchange wallets when they want to either sell them for fiat or trade them for other digital assets. As a result, the BTC reserves on trading platforms rise.

Exchanges bitcoin reserves are down 14,207 BTC in the last 7 days. Source: Glassnode

Conversely, a higher degree of BTC withdrawals reflects traders' decision to hold the cryptocurrency. It means that Bitcoin would not face immediate sell-off pressure in the spot market, which is what the latest Glassnode readings show.

Bitcoin accumulation addresses and balances rise

The total number of accumulation addresses and the balance within these wallets are rising. In retrospect, an accumulation address is the one that has received at least two BTC transactions but has never moved the assets out of the address.

Convinced Bitcoin bulls continue stacking through the price dip, Source: Glassnode.

In the last seven days, the number of these accumulation addresses has climbed, adding 7,430 new wallets to the list.

Another metric dubbed the 'Bitcoin: Supply Held by Entities with Balance 0.01 - 0.1' showed that new users entered the Bitcoin network during its price dip. Additionally, supply held by addresses that have  0.001 BTC to 1 BTC in them increased in tandem, showing steady growth in retail interest.

Bitcoin supply held by wallets holding 0.01-0.1 BTC spikes as prices fall. Source: Glassnode

DeFi in Samecoin—The Common Man’s DeFi Application

The problem with much of the crypto and digital payment landscape these days is that they aren’t built for the common man, like Joe. Joe isn’t stupid, but he hasn’t got time to read hours of whitepapers on cryptocurrencies or do tons of research. He’s seen a bit of talk in the media, especially Bitcoin, and he’s heard his friends mention them a few times.

Joe doesn’t really understand what DeFi is. Joe isn’t alone.

Recently, Joe was alerted to a new ecosystem of stablecoins that aims to bring the benefits of DeFi to normal people just like him.

All he had to do was download the SamePay app to get started. And to his surprise, the whole process was far easier than he thought it would be.

He’d already heard how hard signing up to some crypto exchanges was. It’s one of the things that had put him off in the past. But no, with SamePay he was ready to go and authenticated in just a few minutes. He could start enjoying the benefits the whole ecosystem has to offer straight away.

Already he had bought some SameUSD, and he liked the idea of a currency he could understand. Yes, he wouldn’t have minded buying some BTC back in the early days and now be sipping margaritas on his yacht, but Joe’s a normal guy—he’s a bit more realistic than that.

And he never really understood the value of BTC for real world stuff like new tools or an upgrade on his van. Working out the dollar amount of one BTC on any particular day is something he’s simply too busy to get his head around. So Joe likes the idea of SameUSD—a currency he can actually use and understand.

What Joe didn’t realise was that he was also enjoying all of the benefits of DeFi without really having to think too hard about them. He had control of his money in SamePay, and security has been built to the highest-standards on a platform people who do understand these things can verify.

The problem with many other DeFi ecosystems is that things like minting, staking and rewards are complicated. As everything was made easy for Joe in the SamePay app, he could simply and easily use these DeFi features without really understanding how they worked. The app gave clear instructions to the benefits and he could stake some of his SameUSD with a few simple clicks. It’s as easy as that with Samecoin.

Joe even referred a few more of his friends to SamePay and got a few more SameUSD in return. Other normal people just like Joe, people who didn’t have time to research crypto but could also easily understand the benefits when they installed SamePay. That’s why SamePay and the wider Samecoin ecosystem are perfectly placed to reach more normal people, becoming the go-to crypto ecosystem for everyone, not just the tech-savvy. More people like Joe, and more people like you.

Irish Central Bank official says cryptos like Bitcoin are a ‘great concern’

Derville Rowland, Ireland Central Bank’s Director-General for Financial Conduct, said in an interview with Bloomberg today that cryptocurrencies such as Bitcoin are “of great concern.”

The bank’s official also addressed crypto investors saying “crypto-assets are quite a speculative, unregulated investment,” warning them to be “really aware they could lose the whole of that investment.”

One by one sounding an alarm on crypto 

Rowland leads the regulatory efforts of Ireland’s Central Bank and will soon take over as chair of the investment management standing committee of the European Securities and Markets Authority (ESMA), a group formed to help prepare regulations for the funds’ industry.

Already in January, European Central Bank (ECB) President Christine Lagarde called for the regulation of Bitcoin (BTC), stressing its “highly speculative” nature as well as its use in money laundering. 

Just last week Bank of England Governor Andrew Bailey warned about cryptocurrencies, saying the asset class is “dangerous” and lacking “intrinsic value,” while Bank of Japan Governor Haruhiko Kuroda came out against Bitcoin stressing its “extraordinarily high” volatility.

The rise in popularity of cryptocurrencies is accompanied by warnings from central bankers around the world and the only question is who will ring the alarm bell next? 

‘Gamification’

Besides cryptocurrencies, regulators are focusing their attention on the so-called ‘gamification’ of stock investing, which Rowland expects to become an issue for Europe soon. 

Online brokerages such as Robinhood Markets Inc. have attracted an increase of small and first-time investors into the US market, as consumers of online platforms like Reddit have caused chaos with shares of firms such as GameStop Corp. and AMC Entertainment Holdings Inc. 

The ESMA has held discussions on the issue, as well as Ireland’s Central Bank, said Rowland. She added that the timeline of the new regulation is still not set but did state that they needed to be “technology-neutral.”

The post Irish Central Bank official says cryptos like Bitcoin are a ‘great concern’ appeared first on CryptoSlate.

Mark Cuban On What Attracts Him to Blockchain Tech

Mark Cuban is a billionaire with a lot of ideas in his head. While he has, for the most part, had a very up-and-down relationship with bitcoin and its altcoin cousins, he recently admitted to being invested in the world’s largest digital currency by market cap. He also claimed to be a fan of ETH given its capabilities with smart contracts.

Mark Cuban: I Look at “Blockchains as Networks”

In a recent interview, Cuban discussed what it was that brought him onto the cryptocurrency train. He says that while it is important to look at the costs and speeds of various cryptocurrencies before getting invested, there are other elements to watch out for as well, such as how strong a currency’s network is. This is ultimately what got him involved in ETH. Cuban claims:

Most people look at speed and costs compared to BTC [bitcoin] or ETH [Ethereum]. While those things can be important, I look at blockchains as networks with development platforms via smart contracts.

One of the big things that attracted Cuban to Ethereum is the fact that it has brought life to the world of decentralized finance. The ETH blockchain’s abilities with smart contracts has given a way for developers to establish new digital coins and decentralized applications, otherwise known as dapps. It is also a highly popular platform for those looking to establish NFTs or non-fungible tokens.

This, he says, has given rise to a whole new side of the cryptocurrency space that the world may have never been privy to. Thus, Ethereum is not just solid as a currency, but also because it has led to further crypto development and turned the world of digital assets into a competitive financial space that has put fiat and credit cards on edge.

Cuban says:

The platforms that have the most active developers and create applications with significant utility for their users will have a network effect… Depending on how fees are distributed, [it can] create a real revenue stream that increases the values of the tokens they mint.

A Lot of People Like Ethereum

He is not the only person who feels this way. Kathy Lien of BK Asset Management explained in a statement:

Ethereum [is] looking for ways to become a fully working infrastructure platform. Ethereum itself can perform a number of economic tasks, so it goes beyond.

While Cuban has never thought that bitcoin would ever work as a currency, he does believe that the asset could potentially work as a store of value similar with gold. Thus, he has purchased bitcoin in the past and refuses to sell it for that reason. In addition, as the owner of the Dallas Mavericks basketball team, he was among the first sports execs to permit bitcoin and cryptocurrency payments for tickets and merchandise related to the team and its respective games and events.

The post Mark Cuban On What Attracts Him to Blockchain Tech appeared first on Live Bitcoin News.

Relief For Crypto Community As India’s Central Bank Sets The Record Straight On Cryptocurrency Ban

Coinbase’s plan to establish an outpost in India may clash with anti-crypto laws

In April 2018, the Reserve Bank of India (RBI) asked local banks to stop providing services to cryptocurrency exchanges and related businesses, subsequently halting fiat-to-crypto trading in the country. Since then, many Indian exchanges have been struggling to keep up their payment channels as the banks sever ties with them despite the Supreme Court ruling against RBI and lifting the ban.

India, the world’s second-most populous country after China, often makes headlines for its attempts to outlaw crypto, real or rumored. The mixed signals sent by the authorities in the country are keeping some Indians from adopting bitcoin. However, a reassuring signal has come from the RBI which clarified on May 31 that there is presently no ban on banking institutions providing services to crypto firms.

The RBI indicated that it is aware of media reports that some banks are warning their customers against using their services for cryptocurrency trading by referencing the central bank’s quashed circular dated April 2018.

“Such references to the above circular by banks and regulated entities are not in order as this circular was set aside by the Hon’ble Supreme Court on March 4, 2020 in the matter of Writ Petition (Civil) No.528 of 2018 (Internet and Mobile Association of India v. Reserve Bank of India). As such, in view of the order of the Hon’ble Supreme Court, the circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from.”

The RBI’s clarification comes after reports that some of India’s top banks including HDFC, SBI Card, and State Bank of India have warned their customers against conducting crypto-related transactions citing the RBI’s 2018 order which prohibited banks from servicing crypto exchanges.

In its Monday statement, the RBI has advised banks to undertake the necessary AML and KYC compliance. 

“Banks, as well as other entities addressed above, may, however, continue to carry out customer due diligence processes in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT) and obligations of regulated entities under Prevention of Money Laundering Act (PMLA), 2002 in addition to ensuring compliance with relevant provisions under Foreign Exchange Management,” the statement explained.

It should be noted that RBI’s latest statement only clarifies that the central bank has not asked banks to stop providing services to crypto exchanges. It does not clearly ask banking institutions to reinstitute services to cryptocurrency exchanges.

Millions of online scams and frauds have been reported to the FBI

TL;DR Breakdown

• In 14 months, online scams have increased by 69%.
• The most frequent online scams are Phishing, BEC, and cryptocurrency investments.

The FBI reported that it recently received a new record in reports related to online scams and fraud in crypto investors. The federal office’s internet crime complaint center took over seven years to register 1 million complaints. But that has changed because in the last 14 months the number has easily gone above one million complaints.

This increase in complaints about scams on the internet has coincided with Covid-19 because there is more insight into the market. Reports are up 69% since 2019, which turns out to be annoying.

The FBI notes that the pandemic has contributed to the rise of online Scams because there are so many online operations. According to the investigation office, investor fraud, compromised emails, and romantic website scams have been very common. The figure shared by the FBI exceeds 791,000 reports per scam, valued at $4.1 billion between 2020-2021.

What are the most common online scams?

Millions of online scams and frauds have been reported to the FBI 1

The investigative agency said the crime reports target five types of online scams. Phishing scams exceed 241,000 reports, payment or delivery scams are 108,000 reports, and extortion 76,000 complaints. But the FBI also reports the increase in personal data breaches and identity thefts.

However, Phishing scams are the most prevalent online crime, mainly for business emails or BECs. Online romance and investment fraud crimes have also cost them more than $0.6 billion.

BEC scams modus operandi

One of the most famous online scams is the BECs that engage well-paid companies in the country. This crime consists of company employees being tricked into sending money to the scammer’s account. These cyber attackers compromise executives’ emails or frequent customers, so employees send money to their accounts.

The IC3 received around 19,000 complaints about BEC scams in less than a year and a half. This crime can cause the business to lose a lot of money and even go bankrupt.

But the FBI does not rule out the romantic scams that consist of manipulating the cyber attacker towards the client. The scammer promises a person online that he will send him nude photos, but he will transfer money. When the transaction is complete, the scammer withdraws and blocks the person from their social media or website.

There are also cryptocurrency investment scams that have increased by market capitalization. Cyber ​​attackers can use many methods involving decentralized currencies and a new merchant.

One of the most relevant cryptocurrency scams of the year was when a person posed as Elon Musk, Tesla CEO. The scammers stole more than $2 million from those people who trusted “Elon Musk” and his investment plans.

Ripple Unveils Plans To Achieve Carbon Net-Zero by 2030

Payments giant Ripple says it wants its operations to be carbon neutral within 10 years as the company aims to contribute to the sustainability of the crypto industry.

The San Francisco-based firm, which owns a significant portion of the global supply of XRP, says it is teaming up with non-profit organization XRP Ledger Foundation, energy-focused blockchain project Energy Web, and think tank Rock Mountain Institution to push for the decarbonization of public blockchains through the use of EW Zero, an open-source tool that enables energy buyers like blockchain firms to source emissions-free renewable energy.

Ripple also notes that it is spearheading new research in partnership with leading universities to assess the energy consumption involved in transactions across cryptocurrencies, credit cards, and cash.

In addition, the payments company says that it intends to invest in efforts that help reduce the company’s carbon footprint.

“We put more resources behind initiatives that accelerate the industry’s efforts, including:

  • Comprehensively measuring Ripple’s own carbon footprint and reducing it by purchasing clean, renewable energy for all of our offices and business activities globally.
  • Investing in innovative carbon removal technology, with the goal of removing all of our remaining emissions by 2030—and seeding the next generation of decarbonization technology at scale.”

Ripple’s pledge to reduce its environmental impact comes as Bitcoin (BTC) faces criticism of being an energy hog. Earlier this month, Tesla CEO Elon Musk said the electric car company is no longer accepting BTC as payment because of the energy required to mine the top crypto asset.

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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.

Featured Image: Shutterstock/JoeyCheung

The post Ripple Unveils Plans To Achieve Carbon Net-Zero by 2030 appeared first on The Daily Hodl.

Visualizing Bitcoin’s Future Price Cycles With the Power-Law Corridor Model

Visualizing Bitcoin's Future Price Cycles With the Power-Law Corridor Model

There’s a number of tools, charts, and models traders use to help them forecast bitcoin price cycles and our last article discussed leveraging the Golden Ratio Multiplier. The following editorial discusses another method of bitcoin price prediction analysis by utilizing Logarithmic Growth Curves. In September 2019, a comprehensive paper published by Harold Christopher Burger describes how crypto proponents can visualize bitcoin price cycles using the Power-Law Corridor model.

Bitcoin’s Logarithmic Growth Curve

In order to give our readers some deeper perspective, Bitcoin.com News has been covering a few useful price models that technical analysts and crypto traders leverage to forecast bitcoin’s future prices.

The previous report discussed the Golden Ratio Multiplier and how bitcoiners can use the well known golden ratio and the Fibonacci sequence to predict future values. The next subject takes a look at how crypto enthusiasts can use Logarithmic Growth Curves to get some perspective on bitcoin (BTC) price cycles.

Visualizing Bitcoin's Future Price Cycles With the Power-Law Corridor Model

Essentially, logarithmic growth is the inverse of exponential swelling and it is much slower than rapid and aggressive growth. Logarithmic growth is leveraged in biology and various sciences but exponential and logarithmic functions can be used in finance as well.

Bitcoin’s price timeline can be seen from a logarithmic perspective. In fact, a log price chart is one of the most popular in the world of crypto and traditional finance technical analysis. In simple terms, a crypto asset’s log chart leverages conventional percentage rates and all spacing is equivalent to scale.

Even the most basic of logarithmic BTC charts, the individual can get an entirely different look than the typical crypto price charts using candlesticks and different time frames. Additionally, bitcoin traders can look at the crypto asset’s Logarithmic Growth Curves model which gives even more perspective.

Visualizing Bitcoin's Future Price Cycles With the Power-Law Corridor Model

This particular Logarithmic Growth Curve (LGC) price model hosted on lookintobitcoin.com was created by Cole Garner and @quantadelic. Further, the price model was also “inspired by the work of Harold Christopher Burger,” the website notes.

Harold Christopher Burger published a comprehensive study on LGC in his paper called “Bitcoin’s natural long-term power-law corridor of growth.” When Burger wrote the paper in 2019, he mentioned a number of individuals like John McAfee ($1M), and Nouriel Roubini ($0) forecasting outlandish price predictions.

In his editorial, Burger looks at bitcoin’s (BTC) full price history from a logarithmic point of view. Essentially, Burger describes BTC’s possible future price patterns with the power-law or Power Law Corridor (PLC) model.

Burger said at the time, he is “quite confident in the long-term, the price will indeed evolve approximately as stated” in his article. His study notes that bitcoin follows a price corridor that can be divided into two bands.

“One which lies at the lower-end of the price predictions and is rather thin, the other one being much larger and lying at the higher-end predictions,” the analyst’s paper details. “Bitcoin’s price spends about equal amounts of time in both bands. This implies that large bubbles and busts are likely to continue to exist.”

The researcher that blogs for Quantodian Publications explains that the price model helps people determine the market’s entry and exit points. “This model allows us to make broad predictions concerning the long-term future price of bitcoin,” the blog post emphasizes referring to two forecasts.

  • “The price will reach $100 000 per bitcoin no earlier than 2021 and no later than 2028. After 2028, the price will never drop below $100 000.”
  • “The price will reach $1 000 000 per bitcoin no earlier than 2028 and no later than 2037. After 2037, the price will never drop below $1 000 00.”

Constant Movement: Normal and Bull Mode

After doing some math, equations, and linear regression, Burger found that a basic level of support for BTC’s price followed a power-law. He performed the linear regression with bitcoin’s price peaks in 2011, 2013, and 2017.

“The market tops also seem to follow a power-law,” Burger said. “If the next market top also follows this power-law, the market top will lie on this line. The slope of this power-law is 5.02927337, whereas the fit on all data gave us a somewhat larger slope of 5.84509376. This indicates a relative taming of bitcoin bull markets compared to the overall trend-line,” the author added.

Visualizing Bitcoin's Future Price Cycles With the Power-Law Corridor Model

When Burger quantified these measurements defined by the three bitcoin market price highs and coefficient of determination, the researcher came up with two power-laws. He also leveraged random sample consensus, or RANSAC to get more data points.

The researcher then found two modes, one normal and one bull, and was further able to formulate different power-law models for BTC’s price. Burger shows a chart that includes “power-law fit,” “power-law fit minus bias,” “power-law fit on only three tops,” and “robust fit.”

“We now have various models to predict the future price of bitcoin. All we have to do is extend the graph,” Burger blog post notes. The researcher adds:

We can further divide this corridor into two bands, one corresponding to the “normal” mode and one corresponding to the ‘bull’ mode. The price has so far spent half the time in the lower ‘normal mode’ band, and the rest of the time in the higher ‘bull mode’ band.

‘Black Thursday’ and the Current State of Affairs

The power-law corridor of growth blog post written by Burger has followed bitcoin’s price movements pretty well since it was published. The Quantodian Publications author does note, however, when he was modeling a support line for bitcoin’s price to follow a power-law that there was one instance in 2010, where the price of BTC breached below the line.

Since the blog post was published on September 4, 2019, there is a second instance where bitcoin’s price breached the “robust fit” line.

This specific time was during the financial meltdown on March 12, 2020, otherwise known as ‘Black Thursday,’ when BTC and nearly every asset in the world saw values sink. March 12 was considered a freak instance and possibly an outlier because of the fear and shock Covid-19 brought to financial markets.

Lastly, the current chart shows bitcoin went through a bullish cycle in recent times, but hasn’t peaked like the rest of the bull cycles. In fact, the chart shows the northbound price climax plateaued much lower than the other peaks and the price has started to head southbound.

What do you think about log charts, power-law, and utilizing Logarithmic Growth Curves to predict bitcoin price cycles? Let us know what you think about this subject in the comments section below.

How Ethereum Could Power A CBDC, According To A Chinese Goverment Official

Yao Qian, a member of The China Securities Regulatory Commission, presented a case where a possible Digital U.S. dollar and the Digital Yuan run on top of Ethereum’s network. The government official spoke on The International Financial Forum (IFF) 2021 in Beijing on May 30th.

The summit had the objective of discussing the post-pandemic world and China’s potential for international partnerships. Qian was part of the forum called “Digital Currency and the Future Digital Transformation”.

During this event, the government official said that digital assets and central bank digital currencies (CBDC) should go beyond the traditional concept of money and leverage the advantages brought by innovation in the crypto industry. Qian said: “The future of digital currency will certainly move towards smart money”.

Despite this statement, the government official revealed that there are concerns about the integration of a CBDC with smart contracts features. Qian was part of China’s central bank’s digital currency research and development, an initiative responsible for the development of its Digital Yuan. Qian said:

The CBDC is meant to act only as a payment method, but Qian made emphasis on the possibilities for citizens to benefit from new technologies. This could allow money to be taken one step forward. Qian said:

We can imagine that if the digital dollar and the digital yen were running directly in blockchain networks such as Ethereum and Diem, central banks could use their BaaS services to provide central bank digital currencies directly to users without the need for intermediaries. Single-tier operations can enable central bank digital currencies to better benefit people without bank accounts and achieve financial inclusion.

However, some people inside the government still believe that the technology that powers cryptocurrencies and smart contracts needs to mature.

It Is Possible For A CBDC To Operate On Ethereum?

However, Qian’s comments were personal and not representative of the Chinese regulator. The report was shared by Wu Blockchain, and he referred to Qian as the equivalent of the U.S. Securities and Exchange Commission Hester “Crypto Mom” Pierce.

Yao Qian is the only official in China’s financial regulators who has in-depth research on cryptocurrencies and has a friendly attitude (…).

When asked to specify if Qian was referring to Ethereum’s source code to create a China manage network for its digital Yuan or the cryptocurrency’s mainnet, Wu said that the government official was talking about the latter.

Even as an academic project, Wu said that many users believe that the gas fees would make a CBDC on Ethereum a non-viable option.

He means on eth mainnet, but people think it is impossible to carry such a large transaction volume, think about the 200,000 gwei?

At the time of writing, ETH trades at $2,613 after seeing high selling pressure during the weekend. While the daily and weekly charts are in profit, higher timeframes still record moderate losses.

Ethereum ETH ETHUSD
ETH on an upward trend in the daily chart Source: ETHUSD Tradingview

Research firm Jarvis Labs indicated that ETH price experienced “sell-offs” on every attempt to reclaimed previous highs, as seen below.

Ethereum ETH ETHUSD
Source: Jarvis Labs