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Tokenized Bitcoin on Ethereum Now Tops $1.1 B: Here’s Why – CoinDesk – Coindesk

To the surprise of many, bitcoin (BTC) has been a breakout star in Ethereums decentralized finance (DeFi) moment. Taking the form of wrapped or tokenized bitcoin, the digital asset takes the best of both blockchains bitcoins price value and brand along with Ethereums programmability into one highly in-demand token.

Last week alone, the supply of BitGos wrapped bitcoins (WBTC) topped 76,000 after setting an all-time record of nearly 21,000 wrapped bitcoins minted within one week.

The week before held the previous record of over 12,200 tokens minted in a single week, according to Dune Analytics.

Overall, investors have made tokenized bitcoin one of the largest assets on DeFi with nearly 107,000 BTC worth some $1.1 billion minted from seven issuers, mostly lured in by high rates of return on lending when compared to other options such as BlockFi.

Why use tokenized bitcoin?

What bitcoin on Ethereum does is simple: It provides liquidity for growing decentralized exchanges (DEX), such as Uniswap. Bitcoins current market cap is five times larger than the second largest cryptocurrency, ether (ETH), according to The CoinDesk 20. That money can be put to use making more money.

Tokenized bitcoin allows investors to bring large amounts of value over to the Ethereum network and its young DEX market in a few clicks.

DeFi is considered vastly immature when compared to traditional or centralized exchange (CEX) markets. This can be seen in the large price spreads between orders on exchange books between different DeFi markets.

Price differences on markets can be exploited by traders in what is called arbitrage opportunities.

Wrapped bitcoin is often the asset of choice for investors seeking arbitrage. Bitcoin packs a large punch in terms of price value. More money on DeFi trading platforms makes the markets themselves stronger as additional buying and selling options are presented.

But tokenizing bitcoin isnt without risks, particularly software risk. Investors who want exposure to bitcoins liquidity pay higher interest rates to cover the risk of losing an asset in addition to getting exposure to the first cryptocurrencies liquidity.

How this works in practice has taken on a few different forms.

Security of bitcoin investments

Different tokenizing models represent different security assumptions for investor funds.

For tokenized bitcoin, security boils down to the type of custodianship and if the investment is collateralized. Three major models exist: a centralized firm like BitGo; a smart contract system with collateral, such as tBTC; or a complete, synthetic-asset backing employed by sBTC.

Tokenized bitcoin by issuer (Dune Analytics)

BitGos Wrapped Bitcoin (WBTC) is the breakout star of the last few months with some $808.5 million in circulation, according to Etherscan.

Its centralized, meaning deposited bitcoin is held by BitGo. Parties wanting WBTC give BTC to BitGo and then receive an ERC-20 token-equivalent of BTC in return. That ERC-20 can then be sold on secondary markets or plugged into a DeFi application to earn yield.

Keep Networks tBTC, which launched Tuesday, is similar to WBTC but replaces the centralized BitGo model with a network of nodes, wallets and smart contracts. This network aims at bringing more decentralization to BitGos process by allowing both parties the bitcoin depositor and custodian to interact trustlessly through software.

A few features make this possible, such as the bitcoin depositors being able to choose who holds their bitcoin and a 150% security bond (held in ETH) pledged by the custodians on the off-chance they run to the hills with the deposits.

Rens rBTC that makes up about 20% of all wrapped bitcoin in the wild, according to Dune Analytics. It works in a similar manner to tBTCs node network by having the Ren Virtual Machine, RenVM, act as a trustless agent between the Bitcoin and Ethereum blockchains.

Lastly, sBTC is an ERC-20 version of bitcoin. But this time its backed by another token, the Synthetix Network Token (SNX). Each sBTC is not backed by BTC, but 800% of a BTCs value in SNX, the token for minting synthetic assets (Syns) on the Synthetix DEX.

An example of how wrapped bitcoin works

Take a recent transaction from Alameda Research (sister firm of the trading platform FTX).

FTX allows users to swap between BTC and WBTC. When users swap bitcoin for wrapped bitcoin, FTX pulls from Alamedas pool of BTC/WBTC. Users may send BTC to FTX (Alameda) and receive WBTC. When Alamedas pool of WBTC is exhausted, they replenish it directly with BitGo.

Alameda is a merchant and part of the WBTC decentralized autonomous organization (DAO), meaning it can initiate mints for new WBTC using BTC. They send BTC to BitGo and create a minting request on the Ethereum chain as a merchant.

BitGo validates the BTC has been deposited to a preminted address and approves a mint of the number of WBTC equal to Alamedas request. The WBTC can then be used on FTX or swapped with another token atomically (meaning via a peer-to-peer exchange) or even within a DeFi market.

To redeem, the process is reversed: The buyer will send the WBTC back to the merchant who will then provably burn the tokens.

The future of tokenized assets

The wild success of BitGos WBTC and WETH (wrapped ether) may lead to more constructions of other coin holdings. Ben Chan, CTO at WBTC co-creator BitGo, told Coindesk in August that the firm was looking at wrapping other cryptocurrencies.

WBTCs 2020 success has largely been thanks to DeFi, he said.

What weve seen this year is that WBTC traction has been largely thanks to the highly composable DeFi industry, Chan said.

Zack Voell contributed reporting.

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Tokenized Bitcoin on Ethereum Now Tops $1.1 B: Here's Why - CoinDesk - Coindesk

3 reasons why traders turned bullish after Bitcoin price surged to $10.7K – Cointelegraph

Today the price of Bitcoin (BTC) abruptly rose by 6% from $10,136 to as high as $10,743.

After this powerful 24-hour rally, analysts are now turning cautiously bullish for various reasons but will Bitcoin price be able to tackle the $11K mark any time soon?

Cryptocurrency daily market performance snapshot. Source: Coin360

Currently, the factors that appear to be lifting investor sentiment are negative funding rates, BTC whale activity, and the U.S. dollars recent weakness.

BTC/USD daily chart. Source: TradingView.com

At the moment, Bitcoins funding rate across various futures exchanges is either neutral or negative, despite the price hovering above $10,000.

Bitcoin futures exchanges utilize funding to ensure there is balance in the market and it disincentivizes the majority of the market to prevent the market from swaying to one side for a prolonged period.

If long contracts, or traders betting on a Bitcoin price increase represent the overwhelming majority, they will need to pay short contract holders. The opposite applies if short contract holders dominate the market.

When the funding rate turns negative, it means the majority of the market is shorting BTC. Typically, when funding rates remain below zero, it causes a short squeeze and a surge in BTC price. It can also be an indication that the short bet is overcrowded, raising the likelihood of an upsurge.

A popular pseudonymous trader known as DonAlt tweeted that it is weird to see sentiment bearish with negative funding rates. He said:

It's very, very weird seeing sentiment be this bearish, with neutral or negative funding above $10K. Don't think I can remember a time where that has happened before.

The trader also noted that he sees an absorption of selling pressure at $10,000. He added:

Now I'm seeing absorption at $10K, it looks like the only people selling are people on derivatives and I've closed my shorts to see how the next week is going to play out.

The overcrowded Bitcoin market with short contracts coincides with some top whales possibly moving their holdings off exchange.

According to Whalemap, a group of on-chain analysts who track crypto whale activity, top buyers moved their BTC on Sept. 23.

A map of unspent HODLer Bitcoin. Source: Whalemap

The analysts said top buyers moving their funds have typically been a bullish catalyst for BTC. They explained:

Top buyers were moving their coins yesterday. From my personal experience looking at this metric, next day after top buyers move, we go up.

As the number of COVID-19 cases surges in the U.S., lawmakers are locked in a stalemate over the future of a much needed stimulus package and this is leading strategists to speculate on a weakening U.S. dollar.

Before the initial rally, Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said $10,700 to $10,800 is likely for Bitcoin.

The trader emphasized that if the dollar slows down, the $11,200 to $11,400 range could be a reasonable target. He wrote:

Nice, we're holding here. Looks ready to test the $10,700-10,800 areas and maybe even $11,200-11,400 if the dollar slows down for a bit.

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3 reasons why traders turned bullish after Bitcoin price surged to $10.7K - Cointelegraph

BitGo Is Bringing DeFi-Friendly Wrapped Bitcoin to the Tron Blockchain – CoinDesk – Coindesk

Tron, the blockchain launched in 2017 by former Ripple devotee Justin Sun, has entered a strategic alliance with custody specialists BitGo.

The partnership will bring BitGos wrapped bitcoin (WBTC) into the Tron ecosystem as a TRC-20 token. (The token is backed roughly 1:1 by bitcoin deposited by users at BitGo Trust, a qualified custodian in the U.S.)

The introduction of WBTC plus a newly-created wrapped ether token from BitGo is meant to help fuel the incipient decentralized finance (DeFi) ecosystem on Tron. WBTC has been a key driver in the growth of DeFi on Ethereum. (Note: BitGo has nothing to do with the existing wrapped ether (WETH) token used widely in Ethereum DeFi applications.)

Everyone may now use their BTC/ETH to enjoy all the benefits of the Tron DeFi ecosystem without the high gas fees on Ethereum, Sun said in a statement.

Sun also pointed to a service similar to Uniswap on Tron called JustSwap, which he said has achieved $100 million 24-hour volumes since it was launched about a month ago.

BitGo CEO Mike Belshe said WBTC has seen tremendous growth in concert with DeFis boom.

Our new strategic alliance with Tron creates even greater opportunities for users to expand to other chains and tokenize their BTC on the Tron dApp ecosystem while transacting at a lower cost and faster speed, Belshe said in a statement.

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BitGo Is Bringing DeFi-Friendly Wrapped Bitcoin to the Tron Blockchain - CoinDesk - Coindesk

First Mover: Bitcoins Hit Exchanges as Bloomberg Touts Crypto and DeFi Hedge Fund Seeks $50M – CoinDesk

The upcoming U.S. presidential election has become one of the most contentious in history, fraught with searing divisions over everything from the economy to race to the continued health of democracy itself.

So its not surprising that Wall Street options traders are now pricing in expectations ofelevated market volatilityaround the November election. Analysts for the investment banking giant Goldman Sachsnoted earlier this monththat price swings of nearly 3% are implied around election day in the Standard & Poors 500 Index of U.S. stocks.

Whats surprising is that options trading on notoriously volatile bitcoin prices, which often trade in sync with stocks, implies a stretch of uncanny calm come November, CoinDesks Omkar Godbolereported Tuesday.

Godbole writes that ample technical factors might explain the discrepancy, from the influence of certain hedging strategies to the reality that the nascent bitcoin-options market is still quite small in relative terms, with most action concentrated in front-month contracts that expire in September.

Another possibility, according to Godbole, is that bitcoin, as a globally traded asset, might actually be less susceptible to the U.S. outcome, even though the cryptocurrency is priced in dollars. The implication could be that bitcoin decouples at that point from the U.S. market.

The U.S. elections will have relatively less impact on bitcoin compared to the U.S. equities, Richard Rosenblum, head of trading at the digital-asset firm GSR, told Godbole.

Bitcoin's expected volatility over the next few months, as implied by the options market, has been falling.

Crypto investment firm Panxora seeks $50M for new hedge fund to buy DeFi tokens

Theres been a months-long string ofastonishing developmentsandridiculous twistsin the fast growing arena of decentralized finance, or DeFi. Digital tokens with names like YAM andSUSHIhave appeared overnight, exploding in value, dominating crypto headlines and sparking serious conversations about the far-reaching potential of digital-asset markets and financial technologies.

With total collateral locked into automated, blockchain-based DeFi trading and lending platforms surging more than 20-fold this year to $13 billion as of last week, big centralized cryptocurrency exchanges like Binance, Coinbase and OKEx haverushed to list the tokensand roll out DeFi offerings to avoid missing out.

Now, one cryptocurrency money manager, Panxora, seeks toraise up to$50 million for a new hedge fundto buy digital tokens associated with the fast-growing decentralized finance (DeFi) sector.

This has got the potential to really change the way finance is carried out, Panxora CEO Gavin Smith said in an interview.

In an ironic twist, Panxoras announcement comes just as the DeFi market appears to be cooling. Just in the past week, total collateral in the systems has declined to about $9.5 billion, according to data trackerDeFi Pulse.Aave, a decentralized lender, saw its LEND tokens fall by 12% during the seven days through Tuesday, according to Messari, a cryptocurrency data firm.

Smith suggests that a correction was bound to come at some point.We expect the market to be volatile in the early years, Smith said. While there is great potential there will inevitably be setbacks along the way.

Bitcoin Watch

Change in BTC held on exchanges.

Key bitcoin (BTC) on-chain metrics have flipped bearish this week, suggesting the top cryptocurrency by market value may remain under pressure in the short-term.

On Tuesday, the net inflow of bitcoin to exchanges (measured by the total change in exchange balances) was 36,800 BTC the biggest single-day rise since the markets crash on March 13, according to data source Chainalysis.

Since Sept. 20, the net daily inflow of bitcoins to exchanges have been increasing and trade intensity has been declining, Philip Gradwell, an economist at Chainalysis, told CoinDesk.

The data point indicates a weakening market, he said.

Token Watch

Ether (ETH):Ether in parked in smart contracts rises tofour-year high.

Wrapped Bitcoin (WBTC), Rens rBTC (RBTC):Supply of tokenized bitcoin on Ethereumpasses $1.1B.

TBTC (TBTC):Thesis-built protocol relaunches after bitcoin-on-Ethereum projectsuffered smart-contract bug in May.

Aavegotchi (GHST):Aave-themed game revolving around value-staked NFTs serves asmeta trip through DeFi ecosystem, Delphi Digital says.

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First Mover: Bitcoins Hit Exchanges as Bloomberg Touts Crypto and DeFi Hedge Fund Seeks $50M - CoinDesk

Keiser Insists ‘Bitcoin Inversely Correlated To USD Not Stock Markets’ After Crypto Market Tumble | Markets and Prices – Bitcoin News

Reports that global banking giants helped criminals launder money for close to two decades helped spark the crash of global stock markets on Monday, September 21. Also tumbling in tandem with stocks were cryptocurrencies thus leading to renewed concerns that digital assets are intertwined with the global financial system. However, these concerns are dismissed by Max Keiser, a bitcoin pioneer and a Wall Street analyst who insists that bitcoin behaves differently.

Keisers latest comments about bitcoin were prompted by remarks made by one Twitter user who questions the commonly held view that cryptocurrencies are immune from the global financial system. In a tweet, the user expresses concern that each time when stock markets go down bitcoin gets pummeled. The user insists that if bitcoin is ever going to be successful it needs to break away from bankings thumb. Until then.

In his response, Keiser argues that bitcoin, like gold, is inversely correlated to the $USD *not* the stock market. In a warning to bitcoiners, Keiser says dont be fooled by randomness.

Just like Keiser, many bitcoin supporters are adamant that the top cryptocurrency follows a different path to that of company stocks. They point to the movement of the crypto shortly after crashing by 40% on March 12, the so-called black Thursday. At the time of the crash, global markets were also in the red yet it is bitcoin which appears to have recovered and grown at a much faster pace than stocks.

To illustrate, an observation of data available on Markets.bitcoin.com shows that bitcoin nearly doubled in value between March and September 2020. Specifically, on March 21, bitcoin, which dominates the crypto market, traded at $5,792. Yet by end of day on September 21, the leading digital asset traded at $10,499.

In comparison, the Dow Jones Industrial Average, the widely-watched benchmark index in the U.S. for blue-chip stocks, closed March 20 at 19,173 points. However, exactly six months later, the index closed the day on September 21 at 27,147 points, representing growth of 41.5% from March.

It is seemingly this data that convinces some bitcoiners that the cryptocurrency has an inverse relationship with fiat currencies like the USD.

What do you think of Keisers assertions about bitcoins relationship with the USD? Tell us what you think in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Stacy Herbert / CC BY 2.0

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Keiser Insists 'Bitcoin Inversely Correlated To USD Not Stock Markets' After Crypto Market Tumble | Markets and Prices - Bitcoin News

Profit taking Bitcoin miners wont stop the next bull run: On-chain analyst – Cointelegraph

Historical data shows that some miners began to sell Bitcoin (BTC) at the end of July, leading to increased selling pressure in the cryptocurrency market.

Eventually, the dominant cryptocurrency fell steeply from mid-August, recording a 13% fall and since then BTC has struggled to retake the $12K mark.

Bitcoin selling by miners from 2017-2020. Source: CryptoQuant

According to CryptoQuant CEO Ki Young Ju, continued selling by miners might not be enough to prevent a bull run. On-chain data analysis firms closely observe the movements of miners and whales because they hold significant amounts of BTC.

Willy Woo, an on-chain analyst, explained that miners represent one of the two external sources of selling pressure for Bitcoin. He previously said:

Theres only two unmatched sell pressures on the market. (1) Miners who dilute the supply and sell onto the market, this is the hidden tax via monetary inflation. And (2) the exchanges who tax the traders and sell onto the market.

When miners start selling their Bitcoin holdings, typically to cover expenses, it could trigger a correction in the cryptocurrency market.

For instance, From Aug. 17 to Sept. 5, the price of Bitcoin dropped from $12,486 to $9,813. During that time, several whales sold Bitcoin right at $12,000 and the same behaviour was observed amongst miners.

The selling pressure coming from miners and whales noticeably has been attributed to the current crypto market slump but in the longer term, Ki explained it is not enough to stop a prolonged bull run.

If miners abruptly sell a significant amount of BTC, it could cause a severe correction as a small price movement could trigger liquidations from heavily-leveraged traders. Hence, even a relatively small sell-off by miners could theoretically cause massive price swings.

Ki says the intensity of the sell-off from miners was not strong enough to halt future bull runs. He said:

Miner Update: Some miners began selling at the end of July, but I think in the long-run, miners didn't sell BTC large enough to stop the next bull-run.

According to ByteTree, the net inventory of Bitcoin miners declined by 125 BTC per week in the last 12 weeks. The data indicates that miners sold approximately $1.362 million BTC per week week atop the BTC that they mined and sold.

Amount of BTC mined and sold in the last 12 weeks. Source: ByteTree

As Ki emphasized, the data shows that miners sold substantial amounts of BTC, but not in amounts that were irregular to normal behaviour.

Bitcoin is still hovering above the critical $10,000 technical support level despite multiple attempts by bears to drop the price below the key level.

The resilience of Bitcoin amidst a heightened level of selling pressure suggests a cautiously bullish trend in the long term.

The Bitcoin short-term holder NUPL. Source: Glassnode

Several on-chain metrics also indicate that now is a healthy accumulation phase for Bitcoin. Rafael Schultze-Kraft, the CTO at Glassnode, said:

Short-Term Holder Net Unrealized Profit/Loss (STH-NUPL) with a #bullish signal here imo. That bounce of the 0-line was important, is very characteristic for previous bull markets, and historically a good buying opportunity.

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Profit taking Bitcoin miners wont stop the next bull run: On-chain analyst - Cointelegraph

Christies to sell its first non-fungible-token as part of epic Bitcoin artwork – Cointelegraph

Christies is set to sell its first nonfungible token in an upcoming auction of what has been characterized as the largest artwork in the history of Bitcoin (BTC).

Art historian turned blockchain artist Benjamin Gentilli, as part of the Robert Alice art collective, has created "Portrait of a Mind" a monumental series of 40 paintings stretching over 50 meters in length.

Drawing on the history of 20th century conceptualism as well as the founding myth of Bitcoins creation, "Portrait of a Mind" is a complete hand-painted transcription of the 12.3 million digits of the code that launched the cryptocurrency.

By scattering the codebase into 40 globally distributed fragments, the project will draw up a global network of 40 collectors where no one individual will hold all the code, Gentillisaid. He explained:

In each work, an algorithm has found a set of hex digits that together are highlighted in gold. These read a set of coordinates that are unique to each painting. 40 locations across 40 paintings - each location is of particular significance to the history of Bitcoin.

Speaking to Cointelegraph, Gentillisaid he remains curious as to why much of the commemoration of Bitcoin emphasizes the publication of the whitepaper over and above the codebase itself, which, for him, is the real historical document.

Christies will sell one painting from the series, Block 21 (42.36433 N, -71.26189 E), as part of its Post-War and Contemporary Day Auction on Oct. 7, at the end of a week-long exhibition of auctioned works in New York.

The piece includes a unique fungible token as an integral part of the work and will be offered at an estimated price of $1218,000.

Early collectors of paintings from "Portrait of a Mind" include Binance founder Changpeng Zhao and Bloq chairman Matthew Rozsak. Gentillihas said that by showcasing and selling an NFT at Christies, he hoped to spur other contemporary artists to take a look at the NFT space.

Aside from the creative inspiration artists can draw from cryptocurrencies complex cultural, technical and politically dynamic history, NFTs can also give artists more control and a better stake in their practice over the long term, he said.

Just last week, Cointelegraph reported on the auction of a digital art piece based upon Bitcoin's fluctuating price action, which sold for over $100,000. Like Portrait of a Mind, the artwork integrated an NFT to vest its collector with tokenized ownership rights.

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Christies to sell its first non-fungible-token as part of epic Bitcoin artwork - Cointelegraph

The Winklevosses have launched their bitcoin exchange in the UK – Wired.co.uk

Gemini, one of the worlds largest cryptocurrency exchanges, has launched in the UK and plans to cash in on the boom in lockdown bitcoin investments. Plans to grow the companys operations have moved forward despite the exit of European head Julian Sawyer, who joined the company from his role as co-founder of Starling Bank in December 2019.

The New York-headquartered exchange was founded by the Winklevoss twins, best-known for their legal dispute with Facebook founder Mark Zuckerberg that was dramatised in the film The Social Network. Tyler and Cameron Winklevoss invested part of their $65 million Facebook settlement into bitcoin (at one point they owned one per cent of the currency), and when its value rose sharply in 2017 they became billionaires.

The exchange has already filed for a licence to operate in Ireland, which will be used as backup if Brexit does not allow it to operate in Europe. The twins have also touted setting up an engineering outpost in the UK.

Geminis UK launch comes as bitcoins rate fluctuates at around $10,000, half of what it was at its height in 2017. The currency was buoyed by investors during the pandemic this summer, reaching above $12,000 in August and trebling in value since March. However, Tyler Winklevoss claims that the interest in crypto is higher than ever. The pandemic caused dyed in the wool Wall Streeters that would be the greatest sceptics you could imagine of bitcoin and cryptocurrency to take a position in bitcoin because they're really worried about the prospects of what the money printing means for the US dollar, he says.

He argues that the idea of earning interest on your money at your bank is no longer possible, and may not be for many years. Bitcoin has a fixed supply, it's very much like gold, but actually, we believe it's gold 2.0 and it provides an opportunity to hedge itself against oncoming inflation, he explains. Tyler Winklevoss has previously predicted that bitcoin could overtake gold as the worlds largest safe-haven asset.

The idea that bitcoin was completely uncorrelated with the rest of the market and could potentially act as a safe haven during times of economic turmoil gained popularity in 2019. But experts have questioned this approach, claiming that bitcoin is a hedge against inflation and loss of confidence in fiat currencies (such as the pound, the dollar or the Euro), not a hedge against a typical recession.

But Winklevoss believes that peoples interest in investing in cryptocurrency, which was buoyed by individuals during the pandemic, will continue. This is far from a flash in the pan, there's been a lot of staying power for bitcoin, he says. You're comparing a zero negative interest rate, basically a completely stagnant situation on one hand, to a gold rush on the other hand. That's not hypothetical, it's actually happening right now.

Geminis ambitions have been hampered by regulators skepticism that the market for the cryptocurrency is sufficiently free of abuse to bring trading to the masses. In 2018, bitcoin fell after the Securities and Exchange Commission rejected Gemini's request to list an exchange traded fund, saying that it was not convinced that the currency has adequate surveillance to protect it against market manipulation. Another crypto trader, Wilshire Phoenix, was rejected on the same grounds earlier this year.

In the UK, it was the second cryptocurrency exchange to be added to the Financial Conduct Authoritys register, a requirement of new anti-money laundering measures to better control the activity in the sector. It has been granted an Electronic Money Institution license by the FCA, allowing it to offer cryptocurrency exchanges and custody services to individuals and institutions.

Gemini has made a string of high-profile hires over the past 18 months to expand its exchange and custody business, however, bringing in executives from the New York Stock Exchange and the International Securities Exchange.

Sawyer had been hired to spearhead the companys efforts to expand outside America. Following his exit, Geminis European expansion is now being led by head of international business Michael Breu, and chief compliance officer for Europe Blair Halliday, alongside management from the US.

Natasha Bernal is WIRED's business editor. She tweets from @TashaBernal

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The Winklevosses have launched their bitcoin exchange in the UK - Wired.co.uk

Bitcoin-related ads are now streaming on Disney+ in some regions thanks to Zebpay – Cointelegraph

Crypto exchange Zebpay has launched a campaign with ads featuring Bitcoin during the Indian Premier League cricket games.

As reported by Twitter user Mohit Rai Sharma, ads for Zebpay appeared on Indian streaming platform Disney+ Hotstar during a series of cricket matches starting Sept. 19. Learn about simple, secure Bitcoin, the ads stated, directing viewers to pay just over $1 to start using the exchange.

Sharma stated that the ads represented a historic moment for crypto in India. More than 462 million people watched the Indian Premier League games in 2019, with roughly 300 million tuning in using the Hotstar platform.

Zebpay reopened in the country in January, shortly before the Reserve Bank of India lifted a two-year ban that had prevented financial institutions from providing banking services to crypto firms. The exchanges current campaign follows a Sept. 15 report from Bloomberg stating the Indian federal cabinet is now considering legislative action to once again ban crypto.

According to a Sept. 22 report from the Press Trust of India, the countrys parliament originally scheduled to be in session until Oct. 1 will likely adjourn eight days early, on Sept. 23. This is apparently due to several members testing positive for COVID-19. India recently passed Brazil to become the country with the second-highest number of coronavirus cases; roughly 5.6 million as of press time.

Tanvi Ratna, CEO of blockchain advisory firm Policy 4.0, stated that no crypto ban legislation has appeared in the list of bills to address while the government body is in session.

The exchange has continued expanding in the face of regulatory uncertainty. In May, Zebpay announced it had commissioned blockchain forensics firm Chainalysis to monitor transactions executed across its platforms in India.

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Bitcoin-related ads are now streaming on Disney+ in some regions thanks to Zebpay - Cointelegraph

Cryptocurrency ETF by Nasdaq and Hashdex Approved to List on Bermuda Stock Exchange | Regulation – Bitcoin News

A cryptocurrency exchange-traded fund (ETF) by Nasdaq and Brazilian fund manager Hashdex has reportedly been approved to trade on the Bermuda Stock Exchange. Hashdex says the new cryptocurrency investment product tracks the Nasdaq Crypto Index.

Brazilian fund manager Hashdex confirmed to news.Bitcoin.com on Tuesday that the company is launching a cryptocurrency ETF, co-developed with Nasdaq. A Hashdex spokesperson said that the ETF has been approved by the Bermuda Stock Exchange (BSX), elaborating:

The ETF will be available for public trading on BSX once the Nasdaq Crypto Index [NCI] is officially launched.

As for the launch date, We cant confirm any dates at this moment. However, it shouldnt take long. We need the NCI launch first, the spokesperson emphasized, adding that Nasdaq will reveal more details about the index methodology once it is launched as well. At press time, little information has been revealed about this new investment product.

The BSX exchange also independently announced Friday the admission of Hashdex Nasdaq Crypto Index ETF Class E Shares to its official listing. The method of listing, however, is private placement, with Hashdex Nasdaq Crypto Index ETF as the issuer.

According to its listing page on the BSX website, Hashdex Nasdaq Crypto Index ETFs investment objective is to provide investment results that minimize the tracking difference of the performance of the Nasdaq Crypto Index on a 12-month window. The index is being co-developed by Hashdex and Nasdaq Inc. The latter will administer and maintain the index on an ongoing basis.

The spokesperson further clarified to news.Bitcoin.com that the upcoming ETF will not be available to American investors, therefore it does not require the approval of the U.S. Securities and Exchange Commission (SEC). Currently, the U.S. SEC has not approved any bitcoin or cryptocurrency ETF. All proposed rule changes to list and trade bitcoin ETFs have been rejected so far. There are, however, several private investment products, such as Grayscale Investments GBTC.

According to its website, the Bermuda Stock Exchange, founded in 1971, is recognized by the U.S. SEC as a Designated Offshore Securities Market under Regulation S; The Financial Services Authority in the U.K. as a Designated Investment Exchange; HM Revenue & Customs in the U.K. as a Recognized Stock Exchange; The Bermuda Monetary Authority as a Recognised Investment Exchange; and as an Approved Stock Exchange under Australias Foreign Investment Funds taxation rules.

What do you think about this crypto investment product? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Cryptocurrency ETF by Nasdaq and Hashdex Approved to List on Bermuda Stock Exchange | Regulation - Bitcoin News

XSwap Started Yield Farming, The Highest APY Reaches 70,000% | Press release – Bitcoin News

XSwap, a main products of Xfinance ecosystem, has launched Uniswap LP token liquidity mining. This is a fair version, 100% distributed to the community, with No team shares, No Pre-mine. Governed by the Xfinance community.

In just a few hours, the funds in the pool are above to 5000ETH. The highest APY reaches 70,000%!

XSwap dapp link: https://xswap.app

How to participate in XSwap Uniswap liquidity mining?

Choose your favorite pair and add liquidity on Uniswap, then approve and deposit UNI-LP token on XSwap.

In the first 100,000 blocks, each block will provide 10,000 XSP rewards, after 100,000 blocks, each block will be reduced to 1,000 XSP rewards.

The maximum supply of XSP is 3,000,000,000 XSP.

Reward ratio of each pool:

XSP-ETH: 40x; XFI-XSP: 12x;

XFI-ETH: 12x; XFI-LID: 7x;

UNI-ETH: 3x; LID-ETH 3x;

Others: 1x;

XSP token contract address

0x9b06D48E0529ecF05905fF52DD426ebEc0EA3011

Buy XFI:

https://uniswap.info/token/0x5befbb272290dd5b8521d4a938f6c4757742c430

Buy XSP:

https://uniswap.info/token/0x9b06d48e0529ecf05905ff52dd426ebec0ea3011

What are the XSwap development goals?

XSwap will become the most important product in the Xfinance ecosystem, that is, decentralized automatic market-making leveraged exchange. XSwap Staker will receive a 0.05% transaction fee, the liquidity provider will receive a 0.20% transaction fee, and the 0.05% transaction fee will be used to buy back and burn XSP.

XFI will become the governance token in the Xfinance ecosystem and will also have deflationary characteristics. The better the Xfinance ecosystem develops, the greater the value of XFI.

Xfinance community

Twitter: https://twitter.com/xfinance_io

Telegram: https://t.me/nowex_io

This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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XSwap Started Yield Farming, The Highest APY Reaches 70,000% | Press release - Bitcoin News

Bitcoin sentiment at record lows Does it mean the price will go up? – Cointelegraph

A number of metrics indicate that social and trading sentiment for Bitcoin is still low despite its price breaking above $11,000 a couple of hours ago.

On-chain analytics provider Santiment has revealed that weighted social sentiment for Bitcoin is at its lowest level for two years. The metric takes into account the overall volume of Bitcoin mentions on Twitter and compares the ratio of positive vs. negative commentary on the platform.

Social sentiment surged a few months ago when Bitcoin started its strong recovery following the pandemic-induced market crash in mid-March. However, for most of May, June and July, when the asset was consolidating in the low $9,000 range, it fell into negative territory again.

The analytics provider noted that, counterintuitively, negative sentiment at extremely low levels correlates with price rises, whereas extreme highs correlate with price retracements.

Bitcoin reached a 2020 high of $12,400 in mid-August, but has failed to top 2019s peak of $13,800 leading a number of analysts to assert that the lower high on the longtime frame indicates that we are not in a bull market just yet.

Another market sentiment gauge is the Bitcoin Fear and Greed Index, which is currently showing a neutral reading of 48 at the time of writing. This metric is derived from a combination of factors such as volatility, market momentum and volume, social media interaction, market dominance, and current trend.

For most of August, the index was in the extreme greed zone at around 80 as Bitcoin traded in the high $11,000 range. Its lowest levels unsurprisingly were in March and April when extreme fear gripped global markets.

Popular charting platform Tradingview also has its own sentiment indicators for the asset derived from a number of technical indicators. On the daily and weekly views, they are flashing buy signals, whereas things are more neutral on the shorter time frames.

Bitcoin has been largely correlated to stock market movements for much of this year; however, the September effect is a term that has come about because it is a historically weak month for stock market and cryptocurrency price returns (as Kraken pointed out in its most recent update). This could be reflected in social sentiment as reported by Santiment.

At the time of writing, Bitcoin was still trading just above $11,000, a gain of 2.8% on the day and almost 8% on the week.

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Bitcoin sentiment at record lows Does it mean the price will go up? - Cointelegraph

Its a bull trap! 3 key metrics forecast Bitcoin price rejection at $11K – Cointelegraph

Traders are usually skeptical as Bitcoin (BTC) approaches key resistances, and there was no exception as the price added 7.7% to attack the $11K level.

Not every rally will shift technical indicators to overbought levels, but there is usually some gain in volume and futures contracts sentiment that may transition from neutral to bullish. Derivatives markets are especially sensitive to trend changes due to leverage.

Yesterday, as Bitcoin price closed in on $11K, Cointelegraph cautioned that the move shouldn't raise hopes too high as rejection at this level could be followed by heavy downside.

Let's analyze the most recent price movement that culminated with yesterday's $10,960 close.

BTC/USD 4-hour chart. Source: TradingView

Take notice how there hasn't been much resistance over the past three days during the 8% rally. $11K seems more a psychological barrier than a resistance, but there are currently no signals that traders are confident after the recent price recovery.

Considering the price increase over the past three days, derivatives indicators and the top traders net long/short ratio should have shifted accordingly. Thus, the best place to start is by looking at BTC futures activity

Any optimism from buyers should be reflected in the futures contracts funding rate. These perpetual futures contracts, also known as inverse swaps, have an embedded fee for margin usage.

At most exchanges, the funding rates are usually changed every 8 hours. If buyers are using more leverage than sellers, the funding rate will be positive; hence buyers are the ones paying it. The opposite occurs when future contracts sellers (shorts) are demanding more margin.

Not every bull run will lead to a positive funding rate. Nevertheless, it is very unusual for positive moves to happen during periods where the funding is negative.

Even if there are no additional positions created during bull runs, the liquidation of short-sellers will cause the funding rate to go up. This is caused by decreasing demand for leverage shorts traders, but usually it is also accompanied by buyers adding long positions.

Bitcoin perpetual swaps 8-hour funding rate. Source: Skew

The data above shows a brief moment of optimism as the funding rate turned positive on Sept. 2 ahead of the drop below $11K. Since then, the indicator turned negative, and there is no indication of bullishness.

Variations between -0.05% and +0.05% fees per 8-hours are considered quite normal and, therefore, a neutral indicator. This is equivalent to -1% to +1% per week, so unless it is kept for an extended period, it is uneventful.

Volume is the one unquestionable indicator, regardless of whether one is doing technical or fundamental analysis. Any significant move not backed by a sizable trading activity becomes doubtful in traders and analysts' minds.

7-day Bitcoin aggregated average volume. Source: Messari

Data from Messari shows the adjusted aggregated volume at $2.15 billion Bitcoin for Sept. 15 and 16. Although 13% above the previous 7-day average, it is still far below the $3 billion peak levels seen over the past two months.

This is another telling signal that the BTC rally initiated a week ago seems to be fading away rather than gaining strength for continuation to $12K.

Binance provides data on the top traders' long-to-short net positioning. This is an excellent indicator to determine whether professional traders are leaning bullish or bearish.

OKEx has a slightly different indicator, measuring top traders sentiment. Considering the difference in methodologies, one should monitor changes in each index instead of absolute numbers.

Top traders sentiment & net long/short. Source: OKEx, Binance

Binance futures top traders remain net long, although the current 1.12 ratio is the lowest figure recorded since July 25 (8 weeks ago). A similar trend is depicted in the OKEx top traders sentiment metric, which has declined to 0.80 from a 1.18 peak on Sept. 3.

These indicators reinforce the previously discussed volume and funding rate analysis and show a lack of strength behind the recent BTC recovery from the sub-$10K level.

It is also worth noting that there are absolutely no bearish signals from any of these indicators. Instead, the market shows that traders are either in mild disbelief or simply are disinterested in participating at the current levels.

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.

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Its a bull trap! 3 key metrics forecast Bitcoin price rejection at $11K - Cointelegraph

Bit Digital, Inc. Announced Officially to Cooperate with the World’s Leading Bitcoin Colocation Partner In US – PRNewswire

NEW YORK, Sept.17, 2020 /PRNewswire/ --Bit Digital, Inc. (Nasdaq: BTBT) (the "Company"), an emerging bitcoin mining company headquartered in New York, U.S. today announced that the Company has contracted to cooperate with the colocation partner in U.S.

On September 1, 2020, the Company's wholly-owned subsidiary Bit Digital USA, Inc. was incorporated in Delaware, United States and on September 15, 2020 Bit Digital USA, Inc. entered into a certain service agreement with Compute North LLC. Compute North is the world's leading bitcoin colocation company headquartered in Nebraska U.S. Pursuant to the service agreement, Compute North will provide bitcoin mining facilities for the Company's colocation, managing mining equipment which will save the Company's operating cost, including utilities and rent.

The pilot test with Compute North LLC represented the Company's strategy to source the best bitcoin and bitcoin mining resources in North America and further help the Company to balance its operations worldwide.

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of Bit Digital, Inc. and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

SOURCE Bit Digital, Inc.

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Bit Digital, Inc. Announced Officially to Cooperate with the World's Leading Bitcoin Colocation Partner In US - PRNewswire

How Bitcoin Correlations Drive the Narrative – CoinDesk – CoinDesk

Every week theres usually at least one article in CoinDesk, a blurb in a newsletter and several charts in the Twittersphere about bitcoins correlation with something or other.

This week,we were told that the 60-day correlation between gold and bitcoin (BTC) had reached all-time highs. Last week,our monthly report featured a chart of BTCs correlation with the DXY dollar index. A few weeks before that, the correlation with the S&P 500 was in the headlines.

If you feel dizzy from the rapid turns in attention on which correlation metric matters, youre not alone. But, you had better get used to it because the fascination with BTCs correlation status is unlikely to fade any time soon.What this reveals about bitcoin is intriguing. Its not so much the correlation measures per se they are fun to watch go up and down, but theyre not the deeper story. The deeper story is why it matters so much to us.

When we point to BTCs increasing correlation with the S&P 500, gold, avocados or whatever, we are searching for a handle on its prevailing narrative. We hope that correlations will give us a clue.

BTC is a difficult asset to pin down. It is a scarce asset like gold, yet with a harder cap. It can be used for pseudonymous transactions, as can cash. It is a speculative holding for many, like equities. It is a bet on a new technology, like a growth stock. It is a hedge against a dollar collapse, a way to spread financial inclusion, an investment in financial evolution, a political statement. It is all of these, or none of these, depending on your intellectual leanings, economic philosophy and mood.

The narrative we choose for bitcoin matters, though. Not only does it form our investment thesis around the asset, but it also influences our valuation methods. Do we extrapolate its potential price using the size of the gold market? The payments universe? Transaction fees? Something else entirely?

So, faced with such a slippery narrative, we look to correlations to tell the story. If its highly correlated with gold, then the market views it as a safe haven. If its more closely correlated to the S&P 500, then its a risk-on investment. If bitcoins correlation to the dollar index plummets, then its a hedge.

We look to the market to tell us what bitcoins narrative is. But this creates a feedback loop (Follow gold! Follow Nasdaq!) that helps to perpetuate bitcoins momentum-fueled volatility, and which is often thrown off course by the evolving nature of markets.

BTCs 60-day correlation with the S&P 500 has been coming down recently. That must mean its no longer a risk-on asset. Its increasing correlation with gold corroborates that, putting BTC back in the safe haven story.

But wait. Youll have heard that BTC has not had a good run over the past few days. Youll probably also have heard that Tesla has had a particularly bad time this week. I wonder if theyre correlated.

What do you know, it looks like BTCs correlation with TSLA is increasing! BTC is now more correlated to TSLA than to the S&P 500. That must mean that bitcoin is now being seen as a tech stock. No wait, its being seen as a proxy for market hype. No wait, I mean its being seen as a moon shot.

Obviously, Im kidding, but point Im trying to make is that short-term correlations can tell a good story, but theyre not that meaningful.

With a happy ending

Correlations are based on price movements, which, especially in these crazy times, do not always respond to common sense. Prices have, on the whole, become untethered from fundamental factors and are being pushed around by sentiment. Sentiment fuels momentum, which we often mistake for a trend; it also perpetuates the directionality of prices, which can exaggerate correlations.

Yet, sentiment can turn fast when investors are jittery, and theres plenty to be jittery about. The story changes again.

This grasping for data to back a story reveals our very human need to put bitcoin in context of things were already familiar with. If it goes into a certain mental box, its easier to understand and easier to make decisions about. Boxes are comfortable. Yet, in the long run, they are unsustainable.

In the short run, too: These markets are nuts, and boxes are being smashed all over the place. Bitcoin, which never did belong in any box that we know, is hopping from one story to another, as told by correlation metrics.

I like a good chart as much as anyone, probably even more so (after all, I am an analyst), and I plan to continue to watch the numbers stories with interest. But rather than use return relationships as a narrative crutch, Ill be keeping an eye on what they say about what investors are looking for.

For short-term market movements, what we think bitcoins narrative is doesnt matter as much as what other peoplethink bitcoins narrative is. Other people move the market, so we should know what asset framework theyre using. The correlation stories are useful for that.

For long-term market movements, correlations matter more for portfolio diversification than for anything else. In the not-too-distant future, markets will hopefully be less confusing and even short-term covariance and other relationships might be steadier, and easier to use for planning purposes. By then, even bitcoins correlations might start to matter less for the story and more for the allocation calculations.

By then, we will hopefully no longer need to put bitcoin in a pre-conceived box. It will have found its own narrative, understandable by all.

Drawing lines

Investor activism comes to crypto. Technically its not the first time, but as far as I know its the first initiated by an institutional investor, which pushes it into a more public arena with potentially far-reaching consequences.

California-based hedge fund manager Arca is stepping up its campaign to overhaul decentralized exchange and prediction market platform Gnosis, which raised $12.5 million in a 2017 initial coin offering (ICO). Arcas complaint is that the project has seen its initial ICO proceeds and therefore its balance sheet multiply simply due to the increase in the price of ETH, and yet has not produced anyproducts that accrue value to the token holders.

Arca insists Gnosis should at least trade at the net asset value of its treasury, which is at current prices $139 per GNO (the platforms token, which at time of writing has a market price of $67), and that the mispricing is due to poor decisions on the part of management.The investor has suggested to management that it use the bulk of its treasury to make a tender offer for all outstanding GNOs. This would value each token at approximately $90, providing a decent return for early investors. Since the report of Arcas proposal came out last week, GNO has increased 34% in price (at time of writing), while bitcoin has fallen 4% overthe same period.

The interesting part is not the potential flip for investors as they crowd out the upside. Whats important about this is how it changes the conversation around token investments, on so many levels.

First, it will unleash a healthy discussion around responsibility. Token sales, especially those issued in the heyday of 2017, are lightly regulated if at all, with no clearly defined lines of obligations. This discussion could professionalize the field and encourage other institutional investors to take an interest.

Second, it could refine the definition of token. Is it like a venture investment, where investors are expected to help their portfolio companies in exchange for greater potential returns? Yet venture investments arent liquid, and tokens to some extent are. So, is it more like equity, in which case, do token holders have stakeholder rights? ArcaCIO Jeff Dorman believes his firms holdingis like an interest-free loan, which comes with the expectation that lenders are kept informed of the borrowers progress and plans for the proceeds.And, third, it could influence investment strategies. Weve seen the price of GNO jump over the past few days, presumably in the expectation that management will listen to Arcas demands. Will we see activists intentionally accumulate tokens in order to influence a companys direction?

Finally, this could trigger some governance innovations. Apart from investors collectively insisting on more transparency and accountability, we could start to see some protocol or algorithm adjustments. What could investor activism look like on staking networks, where the amount of tokens you hold programmatically determines the say you have in certain governance issues? What if an investor wants to leverage that position to influence more than the protocol had contemplated? How can a project protect itself against predator stakes?

Given the scope of the problem and what it means for the evolution of token issuance as a fund-raising mechanism and as a value proposition, this situation is worth keeping an eye on. Arcas initiative will most likely end up being about much more than a fair return on an investment.

Anyone know what's going on yet?

As the relentless growth in COVID-19 cases around the world shines greater focus on the bumpy road to a vaccine, uncertainty in the timing of an economic recovery seems to be spilling over into stock market valuations. The S&P and Nasdaq look on track to have their second week of declines, for the first time since March.

Amidst the growing uncertainty, BTC also had a down week, significantly underperforming gold and equities and giving a boost to its 30-day volatility.

While it may feel like stock market volatility is back with a vengeance, the VIX is still well below its June level, and about where it was in December 2018. In other words, this isnt too unusual.

Both the latest U.S. unemployment and consumer price indexfigures came in slightly higher than expected, adding to the overall unease. As renowned investor Stanley Druckenmiller re-ignited the heated debate between those that expect inflation and those that expect deflation, expect greater focus on bitcoins narrative as an inflation hedge.

CHAIN LINKS

My colleague Nathan DiCamillo shows how we can follow the initial public offering of INX, the first registered offering of security tokens in the U.S., and gives more insight into how the issuance will work. TAKEAWAY: This is an eye-opening peek at the transparency of a security token offering, vs. a normal security offering. You can actually watch the securities move, in real time. That, plus the innovative business model behind them, and the evolution of capital markets they represent, andthe fact that its the first token sale to register for retail distribution with the U.S. Securities and Exchange Commission, make this issuance worth following.

Another issuance worth watching is that of Diginex, the Hong Kong-based company behind the newly launched EQUOS.io crypto exchange. This week it announced that it has raised $20 million from four family offices and a hedge fund, ahead of an anticipated Nasdaq listing later this month via a special-purpose acquisition company (SPAC). TAKEAWAY: This will be the first crypto exchange to publicly list in the U.S., as well as an indication of public interest in crypto market infrastructure. For investors, its a listed play on the growth of the ecosystem. For analysts, its a welcome peek at the accounts of a market infrastructure participant, which could be even more interesting as rumors of a Coinbase listing continue to circulate.

Options market data shows an upward trend over the past couple of months in the traded volume of ether (ETH) puts vs. calls, which hints at a growing fear of a price drop. TAKEAWAY: The bitcoin (BTC) put-call ratio is flat over the same period, which implies that the hedging is specific to ETH. This could indicate greater concern about the fragility of the recent inflows into some decentralized finance (DeFi) platforms, and the potential impact on the networks congestion and token price.

The recent growth in bitcoin accumulation addresses, or addresses with at least two incoming bitcoin transfers in the last seven years and no spends, could indicate growing support for bitcoin in spite of lackluster price performance. TAKEAWAY: That we can even extract this metric is an example of the unique data sets available to crypto asset investors. Imagine having this level of information with traditional assets.

More than 30% of new customers at bitFlyer, one of the leading Japanese crypto exchanges, are in their 20s, according to a recent survey. TAKEAWAY: Its not news that millennials are interested in crypto assets. Last year investment management firm Charles Schwab revealed in a quarterly report that bitcoin was the fifth most popular investment among its millennial customers. A JPMorgan report issued last month also flagged millennials penchant for bitcoin over gold.

Investment management firm Wave Financial has received its first round of investment from clients for the Wave Kentucky Whiskey 2020 Digital Fund, which it plans to tokenize in a year or two. TAKEAWAY: I include this as an example of how interesting the tokenized security field will soon get. It should be clarified that holding a fund token does not give you access to the whiskey. It does allow you to share in the profits when the whiskey is eventually sold to wholesalers. Yes, this could be achieved without tokenization. And it remains to be seen how comfortable investors will be with this concept. The investment so far is still relatively small, but will be worth watching.

Podcast episodes worth listening to:

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How Bitcoin Correlations Drive the Narrative - CoinDesk - CoinDesk

Bitcoin hardware devices need to improve to handle complex transactions – Cointelegraph

Jameson Lopp, co-founder and CTO of Casa, a crypto custody firm has released a test result report on Bitcoin multi-signature hardware signing performance on the Casa blog on Sep. 13.

The result shows that hardware crypto wallet devices can handle small, simple transactions well. However, they have trouble performing once the transaction becomes complicated. Casa is said to be built upon geographically distributed multisig, dedicated hardware devices to secure keys, designed user experience, and client services.

Lopp pointed out that while the company has no control over the hardware devices, the goal is to support any device at the end of the day. Thus, he decided to conduct research and hoped to draw some conclusions and help multisig software providers better understand the limits of hardware and customize wallet software for better performance.

Casa is currently compatible with six hardware including Trezor, Ledger, Coinkite and Coldcard The test was done on all the supported hardware devices and also BitBox.

Lopp set up the test by leveraging Electrum's 4.0.2 appimage on Debian Linux and created a variety of P2WSH (native segwit) multisig wallets that use Bitcoins testnet and with the hardware devices plugged in via USB. In each wallet, there was a deposit of 100 UTXOs.

Lopp created a series of tests to determine these hardware wallet capabilities when signing multi-signature transactions of varying complexity. He repeated these tests and concluded that its better and more secure if hardware devices can show progress indicators for loading and signing. He added that:

I came to really dislike hardware devices that don't show progress indicators for loading and signing. As such, I highly prefer Coldcard and Trezor in this respect. BitBox and Ledger are anxiety-inducing because you have no idea if anything is actually happening.

When it comes to overcoming transaction size limitation and delay of transaction processing time, Lopp suggested that hardware wallets could try to break up a send into multiple smaller transactions that are below its limits.

When the transaction process takes too long, some devices will lock itself from inactivity. Lopp suggests that the least device manufacturers could do to avoid such inconvenience is to disable the screen lock timeout while the device is still working on the transaction.

According to Lopp, hardware devices should also support Partially signed Bitcoin transactions (PSBT) and all possible valid multisig transactions. He added that:

I believe it's time for hardware manufacturers to start acting like platform providers and ensure that they are providing robust platforms that can be used to build a wide variety of solutions.

There are two steps for hardware devices to follow when signing a Bitcoin transaction, according to Lopp:

First, The transaction gets loaded onto the device, it parses the details and displays them on the screen for user confirmation. These details are generally the address(es) to which funds are being sent, the amount(s) being sent, and the fee being paid. Then, Upon user confirmation, the device signs each transaction input and then returns the signed transaction to the wallet software.

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Bitcoin hardware devices need to improve to handle complex transactions - Cointelegraph

First Mover: Bitcoin Investors the Sane Ones as Federal Reserve Cheers Inflation, Price Nears $11K – CoinDesk – CoinDesk

One of the interesting things about cryptocurrency investors is they really dolook at the world very differently from many of their counterparts in traditional finance.

The thinking goes something like this: The efforts of governments and central banks to repair the economy are doomed to fail, and likely to make the situation worse. There is no point in moving to a defensive investment strategy because prices for digital assets are going to the moon. Every time the stock market goes up, it just validates the reality that the dollar is being debased by trillions of dollars of central bank money printing.

The latest turn-logic-on-its-head zinger came Monday from Dan Morehead, a former Wall Street trader and hedge fund executive who now heads the cryptocurrency-focused investment firm Pantera Capital in the San Francisco area.

In amonthly letter, Morehead was discussing how central banks typically succeed when they pointedly attempt to increase inflation, as the Federal Reserve is now pursuing as an official policy. Hecited Venezuela and Zimbabwe as twoprior success stories, as it were.

Morehead then pivoted to the argument that asset prices are not rising because stock fundamentals have improved, but because a huge wave of money is being printed.

Gold is at a 5,000-year high, Morehead wrote. Or, said another way, paper money is at an all-time low.

Its that counterintuitive,put another way perspective that can sometimes seem refreshing, partly because the crypto investorkeeps getting proven right. Audiences on both Wall Street and in broader society are now becoming more receptive to the idea that thetraditional financial system and economy arebothunsustainable and unfair.

The Federal Reserves top monetary officialsmeet this week to discuss their next steps for healing the U.S. economy, which at this point appears to consist of doingnothing for the next several yearsuntil inflation rises above the central banks historic 2% targetand stays above that level for a while.

Asreported byFirst Mover Monday, its possible the Feds next move would come if the stock market takes a fresh dive, prompting the central bank to step in and pump more money into the economy to keep markets functioning smoothly.

Jeff Dorman, another former Wall Street veteran whos now chief investment officer of the cryptocurrency-focused investment Arca Funds in Los Angeles, wrote Monday in hisweekly columnthat Congress, which has been gridlocked over a newcoronavirus-related stimulus package, might alsobe prone to a similar do-nothing-until-you-have-to dynamic.

He has written in the past that it would likely take an equity temper tantrum before Congress acts, and he wrote this week, Methinks Congress will be acting soon.

Moral hazard never left, but its definitely back, according to Dorman.

What tips the scalestoward the crypto investors being the sane ones and not the other way around is that market signalsare currently validating the crypto investment thesis.

Bill Gross, the legendary former Pimco bond fund manager, is encouraging investors to get defensive because there is little money to be made almost anywhere in the world,CNBC reported Monday.

Tell that toMorehead of Pantera, whose Digital Asset Fund has returned 168% so far this year, according to the letter.

Morehead said bitcoin and other cryptocurrencies are winning because they have a relatively fixed supply, similar to gold, and improved usage/fundamentals, similar to tech stockslike Amazon and Netflix.

Just compare the following chart of year-to-date asset-class performance from Pantera:

To this one fromGoldman Sachs (off by a few days so the percentages are a touch different):

One includes crypto, and goes up to 244%; the other doesnt include crypto, and it goes up to 29%. So far this year, based on the track record so far anyway, it turns out thesmart money was in crypto.

Bitcoin Watch

Bitcoin looks north, having breached a 10-day-long sideways trend with a move above $10,500 on Monday.

Bullish developments on key technical indicators back the range breakout. For instance, the 14-day relative strength index has violated a descending trendline, signaling an end of the price pullback from the August high of $12,476.

Further, the MACD histogram, an indicator used to gauge trend strength and trend changes, has crossed above zero, indicating a bullish reversal.

As such, resistance levels at $11,000 and $11,200 could soon come into play. That said, the cryptocurrency remains vulnerable to a potential sell-off in equity markets, according to analysts.

Previous sell-offs have been exacerbated by risk-off momentum in stocks, particularly the tech-heavy Nasdaq index, Matthew Dibb, co-founder and COO of Stack Fund, told CoinDesk in a WhatsApp chat. We remain cautiously bullish this week.

Token Watch

BZx (BZRX):DeFi lending projectrecovers $8M of cryptocurrencyfrom attacker who exploited code bug.

Aave (LEND), Yearn.Finance (YFI), Compound (COMP), Synthetix (SNX), MakerDAO (MKR), REN (REN), Kyber Network (KNC), Loopring (LRC), Balancer (BAL), Augur (REP):New 10-token DeFi Pulse Index provides way for traders to get exposure to DeFi without having to go and buy every token individually.

Tether (USDT), Tron (TRX), Ethereum (ETH):Tether moves 1B of its dollar-linked USDT stablecoins toEthereum blockchain from Tron.

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First Mover: Bitcoin Investors the Sane Ones as Federal Reserve Cheers Inflation, Price Nears $11K - CoinDesk - CoinDesk

Why We Get Obsessed With Bitcoin – Decrypt

Youve probably seen the comic posted in one of the many online crypto communities; an adaptation of a popular Reddit meme. A jolly little character offers up two games, one adventurous, the other challenging.

His friend asks about a third option.

When you play that game, the first little guy replies, days will blur together. Regular meals are a thing of the past. Friends will become concerned. And the whole time youll be unsure if youre even having fun.

That third game is, of course, Bitcoin.

That comic is familiar to those of us in the crypto industry. From traders staying up until the early hours, to crypto journalists working day and night to cover the fast-growing space, we all relate to it and thats why it makes us laugh.

But what is it about Bitcoin that initially grabs us and sends us down the rabbit hole? Why do these lines of code reach out of the computer screen, grab our imaginations and pull us in?

During four interviews, with diehard Bitcoiners, Decrypt identified some common traits: a dislike for authority, with a political stance that leans towards libertarianism. But while they revel in Bitcoins attributes as a hedge against inflation, or its security, it wasnt those factors that initially drew them in. Rather, it was the moment they first used Bitcoin or were able to visualise it, that flicked a subliminal switch. So, while the current narratives are important, what gets us obsessed with Bitcoin is something a little more intimate.

On a day in September 2015, David Bennett, senior administrator at the Texas Tech University, felt confined.

He was at work in his cubicle, lit by a lamp instead of the overhead fluorescent lights that were never turned on. The office was so buried in the middle of the gray, chunky concrete building that was the universitys library, he couldnt even hear it when it rainedan event that, in the southern end of the High Plains desert landscape, would typically bring everyone running to the windows.

Bennett looked at his monitor. He was just about to send 0.2 Bitcoin, worth $80, from his Coinbase account to Jack Spirko of the Survival Podcast, so he could become a member. He had heard about Bitcoin online a few years ago, but it was only from listening to these podcasts that he was starting to learn more. He popped in Spirkos address and hit send.

It quickly dawned on him that there were so many things he hadnt done. He hadnt put in his bank account details, his home address, his telephone number. He hadnt authorised someone to take payments from his account. There would be no phoning the bank up to complain that further scam payments had been taken from his account. That was it, done.

He felt liberated.

That started the whole trip down the rabbit hole, he told Decrypt. I sat back. I didnt say anything then, but later told my co-workers about Bitcoin.

Bennett soon became a regular listener of Bitcoin educator Andreas Antonopoulos as well as Trace Mayers weekly Bitcoin Knowledge podcast. Finding himself ill-content with just one podcast episode every week, he set up his own called Bitcoin and where he discusses news on a daily basis.

To this day, he continues to maintain that Bitcoin is a weapon, but, in the words of Parallax Digital CEO Robert Breedlove, one for peace.

It was a cold day in late October, 2019, when Phil Gibson, a software salesman, drove home for his lunch hour. His friend had convinced him to buy a range of altcoins, such as the Brave browsers Basic Attention Token and business-focused Syscoin, on crypto exchange Binance. Only the friend had warned him to get a VPN first.

Standing at the kitchen table with his laptop out, Gibson tried paying for NordVPN. But his debit card refused to work, flagging an error message. He tried his credit card. Still no dice. He got on the phone to his bank, to find out what was going on. While he was waiting on hold, it dawned on him that it was probably to do with what he was buying. The customer service assistant came back on and confirmed his suspicions.

Gibson was angry that the bank was banning him from spending his money how he wanted. He ignored the idea of calling his local branch and looked for another way. He noticed the VPN provider accepted Bitcoin, so he took out CashApp, bought Bitcoin and paid for the VPN directly.

Once I saw that it worked, it was just amazing, he said. Bitcoin is FU moneyits a hell of a drug.

While he had heard about Bitcoin in 2017 during its epic run to $20,000, this was the moment he truly understood its value. It slotted straight into his libertarian-leaning beliefs and he started binging Bitcoin information, such as the Bitcoin audible podcast by Guy Swann.

But there was one thing about Bitcoin thatunlike the fiat money he had in his bank accountreally resonated with him.

Its mine, he said. Even if I sound like Gollum.

Economics student Marty Bent was sitting alone in the library of DePaul University in Chicago, one evening in the summer of 2012. Outside of his evening classes, he had spent the day working at a managed futures fund where he wrote almost exclusively about central banks and monetary policy. With his anti-authority bent, it was clear to him that governments were getting it all wrong.

I was pretty glued to what the central banks were doing for three to four years. In the depths of QE2, QE3, Operation Twist, I quickly learned the central banks didnt really have any idea of what they were doing, he said, referring to examples of quantitative easing and bond buying by the Federal Reserve.

In that moment, he wasnt studying for his economics lessons the next evening, nor was he preparing for the next days commentary at his day job. Instead, he was on BitcoinTalk, poring over everything there was to know about Bitcoin.

Bent said, I was reading up on Bitcoin and getting a better understanding of the technology and the monetary policies behind itand it sort of clicked.

Bent soon started making Twitter lists of prominent Bitcoiners to keep track of what was going on. In the winter of 2013, he used his bonus check to buy his first Bitcoin for $800. Soon after that, it shot up to $1,200 and, driven by the feeling of euphoria, he was suddenly telling his coworkers all about it.

Bent now writes a daily newsletter called Marty's ent and is host of the Tales from the Crypt podcast. Both of which are focused, as you might expect, on Bitcoin.

In early 2017, Robert Breedlove was in his home office in Las Vegas, reading a paper on his iMac. Breedlove was a libertarian who had long wondered about moneywhat it was, and why governments had a monopoly on it. He had read a book called The Creature from Jekyll Island: A Second Look at the Federal Reserve, and one Christmas, he had even handed out copies of an abridged versioncalled Dishonest Moneyto his family.

So, its unsurprising that, at that very moment, he was reading Nick Szabos explanation of smart contracts, a technology for coding agreements between two parties. Breedlove had known about Bitcoin for several years but it was at this moment, when he finally got what it was for.

When i read Nick Szabos work on smart contractswhich was actually written in the late 90sthat was when I had my lightbulb moment, he said. Oh my gosh, this whole finance industry is basically this intermediate function that could be disrupted by smart contracts.

It was Szabos example of a vending machine that struck him. A canonical real-life example, which we might consider to be the primitive ancestor of smart contracts, is the humble vending machine, Szabo wrote.

At that moment, Breedlove could visualize how Bitcoin or Ethereum could play the part of the vending machine, removing the need for the legacy finance industrywhile rivalling state-backed fiat currencies. Thats when I realised that the tech was really going to be a big deal, he said.

He soon came to believe that it was Bitcoin that had the strongest foundation to disrupt the concept of money. After reading The Bitcoin Standard, by Saifedean Ammous, he devoured books by economists Ludwig von Mises, Murray Rothbard and Friedrich Hayek. He went on to become the CEO of Parallax Digital, which invests in Bitcoin-focused products, and has written a 62-tweet-long thread that sheds light on Bitcoin in an exoteric nutshell.

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Why We Get Obsessed With Bitcoin - Decrypt

Bank of England talks negative interest rates in best ad for Bitcoin – Cointelegraph

Bitcoin (BTC) is getting its best advertisement once more as another major central bank floats the idea of charging people to save their money.

As Bloomberg reported quoting minutes of a meeting held Thursday, the Bank of England (BoE) has become the latest central bank to discuss negative interest rates.

According to the results of the meeting, the BoE will enter discussions with banking regulators over negative rates, which effectively mean lending institutions, and, hence, savers must pay to store cash.

The reason is the impact of the coronavirus lockdown on the economy, along with the looming prospect of Brexit, deal or no deal.

The bank is leaving all options on the table, due to elevated uncertainty, one analyst told the publication in light of the news.

The pound slid against major currencies Thursday, as policymakers further confirmed that they had voted to keep interest rates at 0.1% for the time being.

Bank of England balance sheet chart (GBP). Source: TradingEconomics/ Bank of England

Bitcoin proponents immediately seized on the BoEs troubles, arguing that such a policy simply undermined both fiat currencys reputation and its own position.

Wow, the Bank of England discussing negative interest rates. If they adopt this, they would be paying you to borrow, Tyler Winklevoss wrote on Twitter.

You couldnt buy a better advertisement for Bitcoin but u can take their money and go long bitcoin.

Veteran trader Tone Vays had similar thoughts.

I don't think any Bank would pay you to borrow but they will charge you to store/save your money at the Bank, what more can a Bitcoin Hodler as for! he said, responding to Winklevoss.

Thanks Bank of England, you will help drive $BTC adoption.

Others took aim at the interim interest rate decision.

One of the most important prices in our society is determined by vote, Christopher Bendiksen, head of research at digital asset investment strategist Coinshares, tweeted.

You read that right. In 2020, 8 middle-aged men and one woman literally come together several times a year to determine the price of credit. This will seem unbelievably archaic to our descendants.

As Cointelegraph reported, the BoE is particularly infamous in Bitcoin circles, the United Kingdom government bailing out the banking sector en masse on the eve of Bitcoins birth in 2009. An article from the national newspaper, The Times, was even included in the Bitcoin genesis block.

More recently, central banks reactions to coronavirus have fuelled the idea that Bitcoin will increasingly function as a hedge against fiat.

This week, the United States Federal Reserve fielded queries about its plans to overshoot inflation targets, a process that would weaken the U.S. dollar and provide a likely further boost to safe havens such as gold and Bitcoin.

For its part, the BoE had said that negative interest rates would be damaging to the U.K. economy as recently as last month.

The European Central Bank, or ECB, has administered negative rates since 2016, but such a move would be a historical first for the U.K.

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Bank of England talks negative interest rates in best ad for Bitcoin - Cointelegraph

Tevoro.com Announces New Book Revealing What’s Missing from Bitcoin, Ethereum and Other Cryptocurrencies – PRNewswire

WASHINGTON, Sept. 17, 2020 /PRNewswire/ --In Redefining the Future of the Economy: Governance Blocks and EconomicArchitecturethe authorsreveal what the first generations ofblockchainare missing. Norman Augustine, distinguished engineer and former Lockheed Martin CEO, states:"Your book is fascinating the way it moves from economics to governance to mathematics to philosophy to poetry."

Futurist George Gilder, author of Life After Google: the Fall of Big Data and the Rise of the Blockchain Economy, Wealth and Poverty, Microcosm, Telecosm, Life After Television, and the Silicon Eye, writes: "[Redefining the Future of the Economy] is a just-in-time blockbusting chain-reactive manifesto for a revolutionary second generation of blockchain for finance. If you are involved with the Cryptocosm, or with finance, or with artificial intelligence, you have to read it. . Talbot, a super savvy investment strategist, and Benko, a paladin of money theory, actually know why the movement is bogging down and how to fix it."

They prescribe the missing ingredients: Layering consensus algorithms for the creation of sophisticated financial systems and using combinatorial mathematics to provide an organizational structure bringing order to the autonomous chaos of AI, providing accountability and regulatory compliance.

Dawn Talbotis a Wall Street veteraninstitutional research analyst, corporate finance professional, and portfolio manager. Ralph Benko is a Washington insider, aReagan White House deputy general counsel and former senior counselor to the blockchain sector's trade association.The book is available from Amazon and we offer complimentary review copies to journalists and thought leaders. The authors are available for interviews to discuss their breakthrough findings.

Contact: Ralph Benko [emailprotected] 202.800.6550

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Tevoro.com Announces New Book Revealing What's Missing from Bitcoin, Ethereum and Other Cryptocurrencies - PRNewswire


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