Monthly Archives: July 2022

Indias finance minister has called on the G20 countries to bring crypto within the Automatic Exchange of Information framework. More than 100 countries have adopted the Common Reporting Standard under the framework.

Indias finance minister, Nirmala Sitharaman, talked about cryptocurrency Friday during the G20 Ministerial Symposium on Tax and Development in Bali, Indonesia.

Noting that tax transparency is an area where considerable progress has been made with the Automatic Exchange of Information in respect of financial accounts, she described: Our investigations have shown that numerous layers of entities are often set up by tax evaders to conceal their unaccounted assets.

Sitharaman added that although the Automatic Exchange of Information framework provides for financial account information to various jurisdictions, tax evaders, being smart, explore other avenues to shift their unaccounted wealth through investment in non-financial assets. Emphasizing that this area is a point of action for the G20, the finance minister detailed:

While the development of the crypto asset reporting framework is underway, I call upon the G20 to examine the feasibility of an Automatic Exchange of Information in respect of other non-financial assets beyond those covered under the CRS like immovable properties as well.

The Automatic Exchange of Information (AEOI) aims to reduce global tax evasion. The Common Reporting Standard (CRS) is an information standard for the AEOI. It was developed in response to a G20 request and approved by the Organisation for Economic Co-operation and Development (OECD) Council in July 2014.

The CRS calls on jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis, the OECD described.

The Indian finance minister continued: Over 100 countries have committed to exchanging financial account information under the Common Reporting Standards.

However, she pointed out that some jurisdictions have yet to commence exchanges of information under this framework. They will have to be brought in Therein lies one work agenda for G20, Sitharaman stressed. She opined:

I would think it is for the G20 to play the role of a catalyst in encouraging these jurisdictions to become part of the Automatic Exchange of Information and this mechanism because it can strengthen global efforts against offshore tax evasion and avoidance.

Do you think crypto should be included in the Automatic Exchange of Information framework? Let us know in the comments section below.

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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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India Calls on G20 to Bring Crypto Within Global 'Automatic Exchange of Information' Framework Regulation Bitcoin News - Bitcoin News

As the S&P 500 just had its worst first-half performance of any year since 1970, the cryptocurrency market has also fallen off a cliff. After approaching a total value of nearly $3 trillion last November, the entire market is now worth just $888 billion as of this writing. Amid the bear market, investors are fearing a recession is on the horizon, causing them to sell off risky assets.

The world's most valuable cryptocurrency, Bitcoin (BTC 1.78%), has also cratered. However, I think there's a good chance that it eventually bounces back. Its price (on the afternoon of July 12) was $19,907 down from an all-time high of $68,790, but there's a clear path for it to one day reach $300,000. And that would equate to a monster 15-fold return.

Launched in January 2009, Bitcoin's creation was truly revolutionary. A borderless, peer-to-peer internet-based currency completely upends the traditional monetary and financial system, one that is controlled by governments. While the idea was sound and made sense, Bitcoin's actual adoption in commerce has been unimpressive.

According to Cryptwerk, Bitcoin today is directly accepted as a method of payment at 7,879 different merchants. And although there are a number of different financial services that allow users to spend with Bitcoin, like Coinbase'sVisadebit card and PayPal'sCheckout with Crypto feature, consumers aren't really incentivized to do this.

Why use Bitcoin, an appreciating asset that triggers a tax liability when sold, to pay for things? You're much better off buying and holding this digital asset. Spending fiat, or government-issued currency, on the other hand, is what has worked because it is constantly being inflated by massive stimulative measures. Maybe this situation changes in the future, but right now, I don't see how Bitcoin can become an effective medium of exchange.

Many Bitcoin bulls want the top cryptocurrency to become a true medium of exchange, but in its 13-year history, this use case hasn't caught on. Instead, Bitcoin's most promising use case is that it continues to become more popular as a legitimate store of value, or digital gold.

Despite the recent market drawdown, both individual and institutional investors are increasingly allocating small portions of their portfolios to Bitcoin. Whether it is viewed as an inflation hedge or simply as a way to diversify holdings, I believe that as familiarity and understanding of Bitcoin continue to rise over time, more people will own it.

Compared to gold, Bitcoin has some key advantages. Bitcoin is absolutely finite, as there will ever only be 21 million coins created. The supply of gold, on the other hand, can increase if the price of the precious metal rises enough to justify finding and opening new mines. As mentioned, Bitcoin can be used in transactions, a characteristic gold doesn't have. Furthermore, Bitcoin is divisible and a lot easier to store.

Bitcoin's market cap today of $380 billion is roughly 3% of the $12.5 trillion of gold in the world. Even if Bitcoin one day represents 50% of the gold market, which isn't a huge stretch of the imagination, its market cap would be $6.3 trillion. And the price of one Bitcoin at that point easily eclipses $300,000. I have no clue as to the timeframe of this happening, but it appears to be Bitcoin's most likely path to significant price appreciation.

There is another exciting use case that Bitcoin could positively impact, and that's the market for global remittances. Workers in the U.S. sent $74.6 billion back home to family in other countries, with an average fee of 6% on a $200 transaction. With Bitcoin, the fee is essentially nonexistent. Furthermore, remittances seem to fit perfectly with Bitcoin's narrative of being a borderless global currency.

This is a major possibility of unlocking real economic value. The World Bank estimates that this year, $630 billion will be sent as remittances from economic powerhouse nations to low- and middle-income countries. Six percent of that massive amount equals $37.8 billion, a material sum that can immediately go from paying for fees to having a positive economic impact for those involved.

But as things stand today, Bitcoin's biggest hope is to find a place in a greater number of investment portfolios. And if it can become a reasonable substitute for owning gold, a $300,000 price target is an honest possibility over the long term.

Neil Patel has positions in Bitcoin and Coinbase Global, Inc. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Inc., PayPal Holdings, and Visa. The Motley Fool has a disclosure policy.

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Here's Bitcoin's Only Path to $300,000 - The Motley Fool

While Ethereum (ETH) being down almost 40% against Bitcoin (BTC) may give ETH traders some worries, crypto community members on Twitter shared their takes on the possibility of the smart contract platform eventually surpassing the king of crypto assets.

On Twitter, the Cointelegraph social team asked the crypto community to share their thoughts on whether Ethereum can eventually surpass Bitcoin. From predicting that it would happen in 2030 to a firm no, members of the community offered a variety of answers.

According to Jesus Crypto, theres a possibility of ETH overtaking BTC in 2030. While the Twitter user thinks that it will be very difficult, the upcoming shift to proof-of-stake (PoS) may play a part in having ETH take the throne ten years from now.

Calling Bitcoin a dinosaur, Twitter user WakeNBakeTrades also believes that Ethereum can surpass the top crypto with the help of Polygon's (MATIC) scaling. They tweeted that:

On the other hand, Rahul Singh argued that it will never happen, pointing out that BTC is digital gold while ETH is the second iteration of the internet. Singh noted that there are many differences between the value of digital assets and digital software. Twitter user CyberKingK agreed with the sentiment and tweeted:

Bob Shiby also weighed in on the topic saying that theres plenty of room for both. The Twitter user noted that they would hold out on deciding and wait for further developments in Bitcoin while recognizing that there are a lot of tokens relying on Ethereums uptime.

Related: Ethereum co-founder responds to PoS critics amid upcoming Merge

On Monday1, a decentralized finance (DeFi) researcher said that the change to PoS consensus through the coming Merge will create an economic structure that would allow ETH to overtake BTC. The researcher noted that with the shift, ETH inflation will go down, security will go up and the asset would cement itself as a digital bond.

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Will Ethereum ever surpass Bitcoin? Crypto community answers - Cointelegraph

Trend forecaster Gerald Celente told Bitcoin.com News that World War III has begun, weighing in on Covid-19, crypto, the Great Reset, and gold in an exclusive interview. Jordan Belfort, aka the Wolf of Wall Street, talked long-term BTC investing, as scorching inflation in the U.S. continues to plague Americans, though Bidens White House says the latest numbers are out-of-date. All this and more in your bite-sized digest of this weeks hottest stories from Bitcoin.com News.

This week Bitcoin.com News spoke with Gerald Celente, the popular trends forecaster, and publisher of the Trends Journal. During a telephone conversation, Celente discussed the uncertainty surrounding the global economy after governments worldwide locked down the worlds citizens over the Covid-19 pandemic, shut down businesses and injected trillions into the economy.

The discussion touches upon gold, bitcoin, the pandemic, the Ukraine-Russia war, and the Federal Reserve. The trends forecaster believes that World War III has already begun, and if people do not assemble to bolster peace in this world, then we the people are doomed. Celente stressed that if people want real change, they cannot rely on hope as they need to take a stand to make it happen themselves.

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Jordan Belfort, aka the Wolf of Wall Street, says if you take a three, four, or five-year horizon, he would be shocked if you didnt make money investing in bitcoin because the underlying fundamentals are really strong.

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Shark Tank star Kevin OLeary, aka Mr. Wonderful, has warned of an impending big panic event in the crypto space. I dont believe weve seen the bottom yet and I have a different view of it, he said.

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According to the latest Bureau of Labor Statistics Consumer Price Index (CPI) report, U.S. inflation remains scorching hot as it has risen at the fastest yearly rate since 1981. Junes CPI data reflected a 9.1% year-over-year increase, even though a number of bureaucrats and economists thought Mays CPI data would be the record peak.

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What are your thoughts on this weeks hottest stories from Bitcoin.com News? Let us know in the comments section below.

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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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'World War III Has Begun,' Says Gerald Celente; Plus, Long-Term BTC Predictions and Scorching US Inflation Bitcoin.com News Week in Review The...

BitMEX Research recently published a report detailing why Ethereum has dwarfed Bitcoin as the center of Dapp and developer activity within crypto. While there are technical reasons for the discrepancy, the team claims that Bitcoin developer culture prior to Ethereums launch drove alternative use cases away from its ecosystem.

The report explores online discussions from March 2014 among Bitcoin Core developers pertaining to Bitcoins application layer. They began with the launch of the Counterparty protocol early that year a layer 2 solution for creating new tokens and trading them on a distributed exchange.

Counterparty uses OP_Return to store data a type of transaction output that is provably unspendable. The function can be used to burn Bitcoin or store arbitrary data in the Bitcoin blockchain, explained BitMEX.

Some say these types of transactions help to scale Bitcoin, as they do not require pruned Bitcoin nodes to store their data. This makes running a node less storage intensive for the average person, helping Bitcoin retain its decentralization.

Nevertheless, on March 20th, 2014, Bitcoin contributor Jeff Garzik began criticizing CounterPartys use of Bitcoin blockchain space in a Bitcointalk forum. He argued that the functions storage of arbitrary data in the blockchain could have negative or unintended consequences and that more efficient scaling solutions such as sidechains already existed.

In a quick back and forth, Counterparty developers ultimately agreed with Garziks stance. They asked to discuss solutions with Bitcoin core developers on how Counterparty can survive while utilizing the security of Bitcoins blockchain in a responsible manner.

However, Bitcoiners did little to support the lesser protocol. Instead, a Bitcoin dev and mining pool operator at the time named Luke-Jr accused Counterparty users of forcing Bitcoin nodes to store unexpected transaction types against their will. Like Garzik, he recommended merge-mined sidechains as a place for such alternative uses of blockchain data.

Hopefully as mining returns to being decentralized, we will see less toleration of abusive/spam transactions whether the OP_RETURN variant or otherwise, he concluded.

Backing up his statement, Luke-Jr then began censoring all Counterparty-related transactions at his mining pool. On March 28th, he then compared Counterpartys use of blockchain space to abuse against Bitcoin nodes.

Luke-Jrs statement and actions drew anger from many members of the Counterparty community. Their counter-arguments centered around Luke-Jrs seeming attempt to dictate what the Bitcoin blockchain was meant to be used for. I cant believe this attitude, said one user. I didnt know bitcoin had owners.

Others argued that Counterpartys transactions constituted financial transactions and therefore were in line with what Bitcoin nodes agreed to store. You have a much narrower view of the possible use cases for Bitcoin than do others, said Counterparty co-founder PhantomPhreak.

Bitcoin does lots of things that it was not originally intended to do, he continued. We dont want to extend the Bitcoin protocol. We want to do something entirely within it, and as simply and directly as possible, for the benefits of stability, security, etc..

Based on the overwhelming reaction from Counterpartys community, BitMEX suspects that this moment drove many developers away from Bitcoin to develop their projects on Ethereum.

As BitMEX elaborates, sidechains had failed to gain critical mass as a scaling solution for Bitcoin due to various limitations of the technology despite support from Counterpartys opponents.

One of these limitations involved the complexity of building such a sidechain. Developers simply did not have time to build a secure, merge-mined sidechain before other protocols won market share. Though sidechains like Rootstock and Liquid now exist, they are still dwarfed by Ethereum in popularity.

A second constraint surrounds the use of Bitcoin as a native asset on each chain while remaining pegged to the main Bitcoin chain. To this day, developers are yet to find a solution for building a fully trustless two-way peg between blockchains. In January, Ethereum co-founder Vitalik Buterin wrote a Reddit post on why he believes the security of blockchain bridges is fundamentally flawed.

Finally, sidechains are thought to have limited use cases that dont ultimately require security guarantees from the main chain. Therefore, sidechains may not fully solve Bitcoins data storage issues, depending on the application.

It seems that some of the people arguing in favor of sidechains as a solution was not particularly interested in many of the Dapp applications nor had they experimented with them, stated BitMEX.

Ethereum also holds properties that make it more developer and user-friendly, such as faster block times, a less conservative blocksize constraint, and a more flexible scripting language.

However the most significant factor is culture, concluded the report.

Late last month, the popular crypto venture capitalist and researcher Nic Carter wrote a scathing essay against Bitcoiners who denied alternative use-cases for blockchains, such as stablecoins and decentralized finance.

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BitMEX Explains Why Ethereum Has More Dapps Than Bitcoin - CryptoPotato

European Securities and Markets Authority (ESMA) Chair Verena Ross says that the crypto market crash should be a cautionary lesson for investors. She noted that there is a real question about whether many crypto assets will survive.

Verena Ross, chair of the European Securities and Markets Authority (ESMA), has cautioned investors about cryptocurrency investing after the crypto market lost 70% of its value, the Financial Times reported Sunday.

Emphasizing that there was no prospect of a European bailout for out-of-pocket crypto investors, she said:

We already warned earlier this year...about the serious risks retail investors were taking investing in some of the crypto assets.

ESMA will be responsible for licensing crypto asset service providers as recently agreed in Brussels as part of the provisional agreement on the Markets in Crypto-Assets (MiCA) proposal. The deal will enter into force from mid-2023 and has an 18-month implementation period.

The regulator will have the power to ban or restrict crypto platforms if they are seen to not properly protect investors, or threaten market integrity or financial stability.

Ross expressed concerns about small investors losing money, citing that the global crypto market has shrunk by more than 70% in the past year. In May, cryptocurrency terra (LUNA) and stablecoin terrausd (UST) collapsed, wiping out many investors. She opined:

I think there is a real question about whether many of these [crypto assets] will survive.

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, warned in May after the collapse of LUNA and UST that many crypto tokens will fail.

The ESMA chair continued: I hope that some of these investors will see this and will take a cautionary lesson at least to think about how much of their money they invest in these kinds of assets.

In March, ESMA and other leading European financial regulators warned consumers that many crypto assets are highly risky and speculative, noting that investors face the very real possibility of losing all their invested money if they buy these assets.

Ross was further quoted as saying:

We have all said that this is something that is not currently regulated, not something where there is any control over the providers We know there is a lot of fraud and aggressive marketing going on.

Last month, the president of the European Central Bank (ECB), Christine Lagarde, warned that crypto assets and decentralized finance (defi) could pose financial stability risks. This would be particularly the case if the rapid growth of crypto-asset markets and services continue and the interconnectedness with both the traditional financial sector and the broader economy is intensified, she stressed.

On Monday, the Financial Stability Board (FSB) announced that it will deliver a report outlining a robust regulatory framework for crypto assets to the G20 finance ministers and central bank governors in October.

What do you think about the comments by ESMA Chair Verena Ross? Let us know in the comments section below.

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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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EU Regulator Warns About Crypto Questions Whether Many Will Survive Bitcoin News - Bitcoin News

This is an opinion editorial by Interstellar Bitcoin, a contributor to Bitcoin Magazine.

Whether we like it or not, Bitcoiners still live in a world built on fiat currency. Fiat rules everything around us, from the food we eat to the houses we live in. Until we burn the ships, we are not prepared to realize our eventual victory.

In 1519, Hernn Corts led a Spanish army to modern-day Mexico to conquer the Aztec Empire. Upon landfall, two leaders mutinied to return to Cuba at the order of the governor who had commissioned the fleet Corts led. In response, Corts scuttled his fleet to forestall any future mutiny by closing the sole path of retreat.

Against all odds, Corts went on to defeat an opposing force of over 300,000 Aztecs, a few thousand Spaniards, superior military technology, an unforeseen smallpox outbreak, and shrewd political alliances ultimately prevailed.

Many of those on the expedition had never seen combat before, including Corts himself. Historians will point to August 13, 1521, as the final victory of the Spanish campaign against the Aztec Empire. However, Corts truly won the moment he burned the ships.

At its core, the metaphor of burning the ships represents the point of no return: the psychological commitment to crossing a line in the sand once and for all. Beyond this event horizon, there can be no hedging or looking over ones shoulder. From now on, everything all thoughts and efforts must be focused on succeeding in the new reality.

Like Corts, Bitcoiners have crossed the Atlantic to the promised land. However, while Bitcoiners still use fiat money, we will not be truly free. Until we burn the ships, we will not win.

Bitcoiners are the remnant. We lead by example. We must show the world we are not afraid to live on a bitcoin standard. We must use bitcoin not just as our store of value but as the unit of account and medium of exchange for our daily lives.

We must strive for peace and prosperity, by building circular bitcoin economies that remain resilient against the volatility of the fiat exchange rate. We must keep studying to build the knowledge and intellectual depth upon which rigorous discourse can thrive. We must build large stacks upon which generational wealth is built. In the end, only the strong survive.

There is a nascent movement in the Bitcoin cultural sphere known as #GetOnZero which polarizes many people. This movement represents burning the ships. This state change is both functional and psychological. It drives companies to build better products for Bitcoiners. It drives Bitcoiners to harden our resolve as Bitcoiners. It shows we are willing to go down with the ship. It proves we are fearless in the face of insurmountable odds.

Give me Bitcoin or give me death.

The critics will say its too early or point to statistics in an attempt to rationalize why holding some fiat currency is better. While such notions may seem correct on paper, in practice, until Bitcoiners take that grand leap of faith, we are not prepared to do what it takes to win. Until we are ready to completely let go of fiat currency, it will continue to culturally and functionally survive. Bitcoiners, like Corts, must embrace burning the ships. Once we do, the process of hyperbitcoinization already underway will rapidly accelerate.

The moment Bitcoiners burn the ships is the moment Bitcoiners win.

This is a guest post by Interstellar Bitcoin. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.

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For Bitcoin To Win, We Must Burn The Ships - Bitcoin Magazine

A new report by the European Central Bank (ECB), presented as a deep dive into crypto financial risks, calls for appropriate regulation and oversight of stablecoins and decentralized finance (defi). It also addresses the hot topic of Bitcoins carbon footprint in Europe, suggesting a ban on proof-of-work mining is probable.

Crypto-related financial risks, those associated with stablecoins and defi platforms in particular, as well as the threat to climate transition goals blamed on energy-intensive methods of crypto mining, are in the focus of the latest edition of the Macroprudential Bulletin issued by the European Central Bank (ECB). Key moments in the report published in July were highlighted this week by Patrick Hansen, crypto venture advisor at Presight Capital.

Exploring the policy implications of these segments of the crypto market, the authors of the paper insist that the growth and increasing use of stablecoins around the world require immediate implementation of the necessary regulatory, supervisory, and oversight frameworks, such as the MiCA legislation, before the interconnection between these digital currencies and the traditional financial system deepens further.

Recognizing the important role of stablecoins for the crypto ecosystem in one of the three articles in the bulletin, the ECB experts point out that their critical function could have contagion effects for the financial system, if unbacked crypto assets pose a risk to financial stability in the future. Reminding of Mays collapse of the terrausd (UST) algorithmic stablecoin, they comment:

Recent developments show that stablecoins are anything but stable, as exemplified by the crash of terrausd and the temporary de-pegging of tether.

Initially serving mainly as a relatively safe parking space, the use cases for stablecoins have multiplied in recent years, the eurozones monetary authority notes, even more so with the rise of defi applications, which represent another rapidly expanding segment of the crypto market, especially over the past year.

While acknowledging that defi platforms employ technology-enabled innovation and differ in certain aspects such as how assets are held, trust is generated and systems governed, the ECB claims they do not create novel financial products but rather mimic those offered by traditional financial providers. At the same time, defi is in many ways subject to the same vulnerabilities as traditional finance, the central bank says, elaborating:

Defi protocols or platforms claim to have a decentralized governance structure, although in reality governance is often concentrated.

The ECB believes that efforts are needed to regulate and supervise the defi space effectively, despite the challenges that stem from its decentralized and anonymous nature, that make the task harder for policymakers and respective authorities. The European Central Bank urges for a coordinated approach on the international level and common standards to identify and fill the regulatory gaps.

ECBs Macroprudential Bulletin comes as the European Union progresses towards adopting and implementing the comprehensive MiCA regulatory package. Key EU institutions recently reached an agreement on the legislation. A controversial proposal to prohibit the provision of services for cryptocurrencies using the power-hungry proof-of-work (PoW) mining was dropped from the draft.

Members of the crypto industry and community had warned that such a measure would have amounted to a ban on Bitcoin. But the ECB article asking the question Is climate risk priced into crypto assets? argues that authorities can incentivize the proof-of-stake (PoS) consensus mechanisms, described as the crypto version of the electric vehicle, and restrict or ban the PoW mechanisms, referred to as the crypto version of the fossil fuel car.

So, while a hands-off approach by public authorities is possible, it is highly unlikely, and policy action by authorities (e.g. disclosure requirements, carbon tax on crypto transactions or holdings, or outright bans on mining) is probable, the authors think. In their opinion, its also unlikely that the EU will restrict or ban fossil fuel cars by 2035, but not take action against crypto assets with their carbon emissions which they say are enough to negate most euro area countries greenhouse gas emission savings.

Do you think the EU will introduce strict regulations for crypto assets and ban bitcoin mining? Share your expectations in the comments section below.

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchenss quote: Being a writer is what I am, rather than what I do. Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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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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ECB Calls for Urgent Regulation of Stablecoins and Defi, Won't Rule Out Bitcoin Mining Ban Regulation Bitcoin News - Bitcoin News

Be[In]Crypto analyzes this weeks price movements for Bitcoin (BTC), gold, and our wildcard pickthe Ark Invest Innovation ETF.

Bitcoin has struggled to maintain a price level above $20,000 over the past two weeks. On July 1, BTC spiked up to nearly $21,000, before dropping back just above $19,000 by the next day. BTC rose from this point on July 4 reaching nearly $20,500 on July 5. Apart from a dip later that day BTC continued rising the following day and reached $22,000 by July 8. Sinking a bit the next day, BTC proceeded to fall below $21,000 on July 10 and then $20,000 on July 12. Apart from a brief bump over the past day, BTC is currently trading just below $20,000.

Bitcoin was able to reclaim the key psychological level of $20,000 despite red hot US inflation data. This will push the Federal Reserve to get more aggressive in tightening monetary conditions to slow the consumer-price increases. Bitcoin prices dropped following the release of the CPI data, according to Charles Tan, CMO, Atato. In an interesting but much-anticipated development, US inflation soared to a 41-year high as suggested by the latest CPI day, he said.

Gold has dropped a bit over the past two weeks. On July 1 the price of gold was roughly $1,805. Despite dipping from there, it hit $1,810 by July 4, which it maintained until the next day.

However, gold proceeded to see two midday drops in a row to $1,770, then $1,740 on July 6. There, it traded almost continuously until dipping to $1,730 on July 12. After a bump back to $1,740 on July 13 gold dropped again and is currently trading around $1,705.

Gold prices are hovering near a one-year low, as the dollar extended its rally after a hot U.S. inflation report affirmed expectations around an aggressive Federal Reserve rate hike. Gold tends to be pressured when interest rates rise as this increases the opportunity cost of holding bullion since it yields no interest. Gold is lower amid fresh attempts to send the dollar higher, especially against the yen while EUR/USD is holding above parity, said Saxo Bank analyst Ole Hansen.

Similar to the cryptocurrency markets, the Ark Invest Innovation ETF has taken a hit over the past few months. At the beginning of April ARKK was trading at around $70. From there it proceeded to fall in a linear fashion over the course of the rest of the month, hitting around $47 on May 1. Despite a small recovery, it fell even further during a period of greater volume to a low of $35 on May 12. From there it pumped back up to around $45, where it largely continued into June. On June 13, ARKK gapped down to $37, then ramped back up to $46 by June 27. After another dip to $40 and rise to $46, ARKK is currently trading around $43.

Earlier this week The Securities and Exchange Commission (SEC) delayed making a decision on the ARK 21Shares spot Bitcoin exchange-traded fund (ETF) application, adopting the same playbook it used before rejecting Grayscale last month. The SEC has extended the window for it to decide whether to approve the ARK 21Shares spot Bitcoin ETF application, pushing back the date for a decision by 45 days to Aug. 30.

According to a filing, the SEC through Matthew DeLesDernier, its assistant secretary, stated that postponing its decision was appropriate to earn sufficient time to consider the proposals before it.

DisclaimerAll the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Gold, Stocks, and Bitcoin: Weekly Overview July 14 - BeInCrypto

Saturday 16 July 2022 11:09 pm

As the bear market wears on, some are now calling for Bitcoin to go to zero as the number of such statements on Twitter has soared as of late. Others say cryptocurrencies are all a scam including Ethereum. Not much different from the FUD spread in 2014 and 2018.

History always rhymes. Today, we even have some thought leaders saying decentralised systems such as DeFi will never work as they point to the failures of Celcius, LUNA, BlockFi, and Voyager among others. Yet these were centralised companies! They were banking start-ups that were 20:1 leveraged, taking in short-term deposits while lending long to each other and others. Voyager lied to investors saying they were FDIC insured. BlockFi misrepresented its level of risk.

Meanwhile, DeFi protocols such as Aave, Compound, Uniswap, and MakerDAO cannot make such misrepresentations because everything is transparent on the blockchain. All were absolutely fine with 100% uptime. During the LUNA crash, DEXs continued to function flawlessly while some CEXs were forced to halt withdrawals.

The CeFi collapse proved DeFi works great even in the face of CeFi cataclysm. DeFi powers the financial backbone of blockchain for retail, institutional, and green loans. Yields secure the blockchain while incentivizing liquidity to minimize slippage. DeFis discipline for over-collateralization protects customers from CeFi. They can monitor their respective, fully transparent blockchain protocols knowing that code will execute all transactions. By contrast, CeFi shares no balance sheet visibility nor actions taken with your funds. CeFi under-collateralized in some cases while DeFi over-collateralizes typically between 110-150% with majors such as Aave, Compound, and MakerDAO at 200-300%.

All this disinformatic FUD reminds me of the early 2000s after the dot-com bubble burst with many making claims that the internet was just a fad and that streaming takes too much bandwidth while questioning how anything good could come from technology that was catalysed by pornography and credit card fraud.

Some argue that digital land is infinite and can be easily duplicated so question its inherent value. One can also travel in an instant from one area of the metaverse to another. But just as in the physical world, in the metaverse, its all about location, location, location. Think of it this way. Imagine if Google allowed you to place your ad on Googles landing page google.com. It would be seen by hundreds of millions of users. This might be the most expensive digital real estate.

With web3, its the person who owns the digital real estate that matters rather than in web2 where its the company who owns it. NFTs identify the owners. Big names will attract more eyeballs thus businesses will want to adspend in such places. Big name concerts in the metaverse will attract huge audiences. Advertisers will want to adspend on such occasions. While the Superbowl attracted 208 million viewers, a Superbowl held in the metaverse through multiple streaming sites can attract even more.

Online land will be worth more than physical land. Why? Because in the physical world, a business without online presence can only serve people local to that area, but the audience for the metaverse is global. So the number of eyeballs seeing your ad is orders of magnitude greater in the metaverse than in the physical world enabling customers to buy your product from anywhere on the planet. While e-commerce has massively impacted retail sales over the years #amazonetal, metaversal constructs from live performances to gaming platforms are already having an economic impact on advertising. People in avatar form might walk out of a virtual concert together and then meander down an adjacent virtual shopping strip. Just like in the physical world, then, the shops closest to the virtual conference hall will get the most foot traffic.

The metaverse is likely to have key clusters which pull in many eyeballs. Entrepreneurs can try to launch their own businesses in these clusters by developing novel resources that serve as hubs that would attract others to build around. This means digital land can be especially valuable to users when it sits atop a platform architecture thats already popular such as The Sandbox which integrates many digital communities. Some metaverse platforms will be built to support digital versions of day-to-day tasks while others will be multidimensional gaming worlds. Composability, a core feature of web3, lets people build on/add to existing frameworks to offer new services. Metaversal land is decentralized so anyone can create and benefit as opposed to web2 digital space which is controlled by central entities such as Google, Facebook (Meta), and Youtube. But just as with these centralized systems, the most successful metaversal platforms will be the ones that provide the greatest utility thus will attract the most users.

Keep an eye on SAND, MANA, and ENJ as three that led in the prior cycle that could continue to lead in the next bull cycle. All three still have formidable valuations though just as with all other cryptocurrencies, are off around -85% peak-to-trough since they peaked in late 2021. It will come down to the utility each provides their users. Utility can take the form of entertainment, finance, business, marketing, art, and music, among other themes. Each company has a vast network of users.

SAND jumped 20% when it was rumored it could be the target of a buyout. A property in SAND was recently acquired by HSBC, one of the worlds top banks. The Metaverse Standards Forum was recently unveiled and is comprised of Sony and Alibaba, but any company can join the group. It is designed to facilitate coordination and cooperation among the hundreds of enterprises competing for position in the metaverse.

Others say the metaverse is a meaningless buzzword. In reality, as with all words meanings, it has its roots in the PC revolution of the 1980s which pushed embryonic versions of the metaverse into mass adoption. Blockchain exponentially accelerates metaversal use cases from gaming to art to music to jobs to law to governance to publishing to most all creative endeavors. Blockchain as the beating heart of the metaverse blurs the line between the physical and digital worlds. Blockchain creates an efficient and transparent system for conveying rights and ownership such that groups can quickly coordinate to fund and pursue goals, catalyzed by DAOs.

Decentralised platforms on which to build and create provide a dev architecture that is limitless, private, secure, and uncensorable while minimizing switching costs. Contrast this with centralised systems that own your data and control your money. Such may not seem like such an issue until it is an issue. Those who tried to help the protesting truck drivers in Canada had their bank accounts frozen.

AI together with blockchain further catalyses freedoms in numerous ways while making the reporting of truth economic. I may not like what youre saying, but I defend your right to say it. Meanwhile, the centralized cancel-culture spurs censorship. We are supposed to convince people of things through rational debate, not starve them of information.

Fundamentally, blockchain has to do with freedom. Bitcoin is the magna carta of code. Blockchain drives transparency. Freedom is the use case. The 3AC disaster could not have happened with an on-chain protocol that was transparent.

(:B :B)

Dr Chris Kacher, PhD nuclear physics UC Berkeley/record breaking KPMG audited accts in stocks & crypto/bestselling author/top 40 charted musician/blockchain fintech specialist. Co-founder of Virtue of Selfish Investing, TriQuantum Technologies, and Hanse Digital Access. Dr Kacher bought his first Bitcoin at just over $10 in January-2013 and contributed to early Ethereum dev meetings in London hosted by Vitalik Buterin. His metrics have called every major top & bottom in Bitcoin since 2011 to within a few weeks. He was up in 2018 vs the avg performing crypto hedge fund (-54%) [PwC] and is up well ahead of Bitcoin & alt coins over the cycles as capital is force fed into the top performing alt coins while weaker ones are sold.

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Time to pour cold water on the FUD and misinformation from Bitcoin doubters - City A.M.