Ethereum fails at resistance, IOTA and THETA with annual highs

Ethereum fails at resistance, IOTA and THETA with new highs for the year

The price of Ethereum (ETH) is still unable to break free decisively and is moving sideways. In contrast, IOTA (MIOTA) is able to generate a new high for the year. Meanwhile, the outperformer of recent weeks, Theta Token, is jumping from all-time high to all-time high.

Ethereum (ETH): The directional battle continues

  • Price (ETH): 1,632 US dollars (USD) (previous week: 1,808 US dollars)
    Resistances/targets: 1,664 USD, 1,733 USD, 1,880 USD, 1,942 USD, 2,038/2,057 USD, 2,811 USD, 3,277 USD, 3,565 USD, 4,315 USD, 5,068 USD
  • Supports: 1,591 USD, 1,545 USD, 1,489 USD, 1,425 USD, 1,367 USD, 1,303 USD, 1,223 USD, 1,090 USD, 1,042 USD, 922 USD, 837 USD, 769 USD, 720 USD

Crypto & stocks: Why you should split your portfolio

In order to avoid the imponderables of the markets, a portfolio should be as broadly diversified as possible. With securities and crypto assets in one portfolio,Bitcoin Era investors not only limit their risks, but also increase their chances of profit. The German online broker justTRADE explains how easily this works.

Investors do not have it easy with Ethereum at the moment. The resistance area around USD 1,880 is increasingly becoming a reinforced concrete wall. In the last few days, there was a significant correction movement due to expiration, from which the Ether price was not spared. As the expiry of futures and options on Bitcoin and Ethereum ended today, Friday evening, new bullish impulses could occur with the start of the new month.
Bullish variant (Ethereum):

As recently as the previous week, the Ether chart looked as if the corrective move was complete. Although the Ethereum price slipped below the EMA20 (red) and EMA50 (orange) moving averages again as a result of the sell-off on the overall market, it stabilised at the lower Bollinger band at USD 1,545. Thus, the price continues to trade above the important support zone between USD 1,489 and USD 1,425 for the time being. Ethereum is currently stuck between the orange support zone and the red resistance zone. Only a breakout above USD 1,733 makes a renewed rise to USD 1,880 likely. This would be accompanied by a recapture of the EMA50 (orange) at USD 1,640 and the EMA20 (red) at USD 1,709. If investors manage to push the price back above these moving resistances, the cross resistance of the horizontal resist and the red downward trend line at USD 1,880 will come into view again. If investors manage to generate a rise above USD 1,880, a march through to the all-time high can be planned.

If there is no further sell-off in the area around USD 2,000, the all-time high at USD 2,057 comes into view. This is also where the 261 Fibonacci extension and the price-limiting upper Bollinger band are located. Only if the ether price can establish itself above the all-time high will the chances of a follow-on move to USD 2,811 increase. This is the 361 Fibonacci extension of the superior movement. If the bulls manage to break through this price level dynamically, price targets at USD 3,277 and USD 3,565 will be activated. The latter target is a desirable chart mark to be reached in the medium term. On the way, the red upward trend line could also be approached. An intermediate consolidation back to the area around USD 2,809 at the latest from the 461 Fibonacci extension at USD 3,565 is conceivable. If the entire crypto market continues to trend bullish in the second half of the year, a subsequent rise to USD 4,315 could follow. This is the 561 Fibonacci extension of the overriding price movement. The maximum price target remains unaffected by this and can be seen unchanged at USD 5,073 (661 Fibonacci extension).

The bear camp managed to strike back this week. The Ether price slid back to the lower Bollinger band in the daily chart. If this support at USD 1,545 is dynamically abandoned, a consolidation back into the orange support zone between USD 1,489 and USD 1,425 is likely to follow. Only if this strong support zone is sustainably abandoned will a directional decision be made at USD 1,376, or at the latest at USD 1,303. The correction low of 28 February and the 161 Fibonacci extension are at USD 1,303. If Ethereum undercuts the

Bitcoin niet langer een randactivum dankzij devaluatie Amerikaanse dollar, zegt Soros Fund exec

De CIO van Soros Fund Management zei dat Bitcoin niet langer in de marge is, dankzij de ontwaarding van de Amerikaanse dollar in het afgelopen jaar.

Bitcoin ooit misschien werd beschouwd als een randactivum

Soros Fund Management chief information officer Dawn Fitzpatrick zei dat Bitcoin Trader ooit misschien werd beschouwd als een randactivum, maar de inflatie van de Amerikaanse dollar heeft dat veranderd.

In gesprek met Bloomberg zei Fitzpatrick dat haar bedrijf – een vermogensbeheerfonds dat is opgericht door de wereldwijde investeerder George Soros – onlangs interesse begon te tonen in Bitcoin.

„We denken dat de hele infrastructuur rond crypto echt interessant is, en we hebben een aantal investeringen gedaan in die infrastructuur – en we denken dat die zich op een buigpunt bevindt,“ zei Fitzpatrick.

Dat buigpunt komt er als gevolg van de fiatinflatie, die de geldhoeveelheid van de Amerikaanse dollar alleen al in het afgelopen jaar met 25% heeft zien toenemen. Fitzpatrick zei:

„Ik denk dat als het gaat om crypto in het algemeen, we ons op een echt belangrijk moment bevinden, in die zin dat, iets als Bitcoin misschien een randactief zou zijn gebleven, maar voor het feit dat we in de afgelopen 12 maanden de geldhoeveelheid in de VS met 25% hebben verhoogd.“

Soros Fund heeft alleen al deze maand twee investeringen gedaan in cryptogerichte projecten. De eerste was als onderdeel van een financieringsronde van $ 200 miljoen gehouden door NYDIG, terwijl de tweede een investering was in crypto boekhoudkantoor, Lukka, dat $ 53 miljoen ophaalde op 25 maart.

Het geloof van het fonds in Bitcoin en zijn verwante technologieën

Het geloof van het fonds in Bitcoin en zijn verwante technologieën lijkt evenzeer te worden geëvenaard door zijn afkeer van meer fiatinflatie, waarvan Fitzpatrick zegt dat er een reële angst voor is:

„Dus er is een echte angst voor het devalueren van fiatvaluta’s. En als je aan Bitcoin denkt, dan zie ik het niet als een munteenheid, ik zie het als een grondstof. Maar het is een product dat makkelijk op te slaan is, makkelijk overdraagbaar.“

Fitzpatrick had het kort over digitale valuta’s van centrale banken, met name in relatie tot China, dat volgens haar strategisch op weg is om de eerste te worden op het gebied van CBDC-technologie. Maar zelfs als China als eerste een centraal uitgegeven digitale munt lanceert, denkt Fitzpatrick niet dat het effect daarvan op Bitcoin op de lange termijn al te destabiliserend zal zijn.

„Ze willen dat dat over de hele wereld wordt gebruikt, en het is een potentiële bedreiging voor Bitcoin en andere cryptocurrencies,“ zei Fitzpatrick, eraan toevoegend: „Ik denk dat het een reële bedreiging is, maar ik denk dat het tijdelijk zal zijn. Ik denk niet dat het succesvol zal zijn in het permanent destabiliseren van Bitcoin.“

NFTWars, ein dezentrales NFT-Spiel mit großem Potenzial

Die Blockchain-Industrie hat sich in den letzten zehn Jahren weiterentwickelt, und täglich werden weitere Produkte entwickelt. Nicht fungible Token sind ein Sektor, der in den letzten 12 Monaten ein massives Wachstum verzeichnet hat und in diesem Zeitraum um mehr als 299% gewachsen ist.

NFTs begannen zunächst mit der Ethereum-Blockchain in Form von Spielen wie CryptoKitties und Crypto All-Stars.

Seitdem hat sich die Branche in Form von NFTs auf Gebäude, Unternehmen, Kunst und Musik in der Blockchain ausgeweitet

Das Ethereum-Netzwerk dominiert derzeit mehr als 90% der auf dem Netzwerk aufgebauten NFTs, aber die Probleme sind zahlreich. Die zunehmende Nutzung des Netzwerks hat zu einer Überlastung geführt, was zu langsamen Bestätigungszeiten und einem Anstieg der Gaspreise auf 60 bis 90 USD pro Transaktion geführt hat.

Dies macht es für NFT-Projekte schwierig, sich vollständig zu entwickeln, wie z. B. Spiele innerhalb der Reichweite des Blockchain-Netzwerks. Das Blockchain-Projekt NFTWars versucht jedoch, dies zu ändern, indem Matic (jetzt als Polygon bekannt) verwendet wird, eine BitQT Lösung auf zwei Ebenen, um die vorhandenen Probleme zu lösen.

Ein dezentrales Spiel, das auf Layer-Two-Technologie basiert

NFTWars soll eines der ersten Blockchain-Spiele werden, das Layer-Two-Technologie einsetzt. Dies stellt sicher, dass Spieler, die mit den hohen Transaktionskosten in der Ethereum-Blockchain frustriert sind, an NFTs teilnehmen können.

Um dies zu erreichen, werden NFTWars auf Polygon aufgebaut, einer Seitenkette, die auf Ethereum aufgebaut ist. Transaktionen auf Polygon werden schnell, zu effizienten Kosten und ohne Kompromisse bei darauf basierenden Anwendungen durchgeführt.

NFTWars wird zunächst als einfache „Stein, Papier, Schere“ -Philosophie zur Steuerung einer risikoreichen Karte eingesetzt. Im Laufe des Spiels werden weitere Funktionen hinzugefügt, darunter Allianzen und Gruppierungen, Belohnungen für die Kontrolle von Gebieten und komplexe Kampfsysteme.

Tokenisierte Belohnungen für NFT-Besitzer werden ebenfalls für den Einsatz, den Kauf von Gegenständen und Vermögenswerten im Spiel, das Prägen neuer NFTs und andere Anpassungsoptionen integriert. Dies wird durch das Governance-Token WAR angeheizt. Der ERC-20-Token wird verwendet, um Einkäufe auf der Plattform zu tätigen und um Spielern Anreize zu bieten.

NFTWars wird auch einen Mechanismus einsetzen, der den Großteil der ausgegebenen Token verbrennt und sie wieder in den Gesamtvorrat einspeist. Dies wird das Gesamtangebot an WAR-Token niedrig halten und die Spielwirtschaft stabil halten. Als Blockchain-Spiel möchte NFTWars Spaß machen und den Spielern die volle Kontrolle über ihre Vermögenswerte im Spiel geben.

Kraken now operates a node in the Chainlink network (LINK)

The Kraken exchange now provides data from its markets to the Chainlink Ecosystem (LINK). By tapping a node in the network, Kraken helps Chainlink’s price oracles be more accurate.

Kraken strengthens the Chainlink network (LINK)

The major exchange Kraken now operates its own Chainlink network node (LINK). This allows it to disseminate information on its markets to the network’s price oracles.

Very soon, Kraken will aggregate its market data to make it available on-chain for all decentralized finance (DeFi) applications that use Crypto Investor.

“Operating our own Chainlink node will not only provide us with a mechanism to broadcast our Oracle Rates on any blockchain, but we will also be able to leverage Chainlink’s built-in crypto signing capabilities to provide users with on-chain proof of this data comes directly from the Kraken, ” the statement added .

For Chainlink’s oracle network, this will help its decentralization to a certain extent, and will reduce potential price manipulation on the protocols using its oracles.

Kraken thus becomes one of the few major exchanges that operate Chainlink nodes, alongside Huobi .

Kraken participates in the rise of DeFi

This initiative on the part of Kraken is not trivial and greatly contributes to the development of decentralized finance (DeFi) .

Jeremy Welch , vice president of Kraken, is proud that the platform has this ability to „look to the future“. He believes that Kraken has the full capabilities to deliver products and services that match market demand:

“Given the growth of my DeFi and the need for high quality data streams to keep it secure, we are excited to make our pricing available to DeFi developers through our own node. Chainlink, ”he added.

In this way, Kraken continues to lead the way for its peers, who could certainly do the same in the near future.

In addition, during the first half of 2021, the exchange will integrate Bitcoin’s Lightning Network (BTC) into its ecosystem . Another Kraken initiative that must be highlighted, as the Lightning Network does not yet have sufficient visibility despite the many advantages it offers.

Bitcoin es el nuevo Prometeo, según uno de los mayores fondos de cobertura

La empresa de gestión de inversiones activas con sede en el Reino Unido, Man Group, señala que Bitcoin es similar a Prometeo, un dios de fuego de Titán en la mitología griega, informa Bloomberg.

Como castigo, Zeus envió un águila a Prometeo para que comiera su hígado inmortal cada día, pero volvía a crecer cada noche.

Man Group lo compara con las brutales reducciones de Bitcoin durante los mercados bajistas, que hasta ahora han sido eclipsados por grandes corridas de toros.

Cada vez que una burbuja de Bitcoin estalla, otra vuelve a crecer para reemplazarla. Esta misma frecuencia hace que la narrativa de Bitcoin sea algo atípica en relación con las grandes burbujas del pasado.

No es una burbuja típica

Mientras que todos y su tío rechazan rápidamente Bitcoin Future como un juego puramente especulativo durante cada encierro, ciertamente extrañan el bosque por los árboles.

En realidad, Bitcoin ya ha tenido más poder de permanencia que la mayoría de las burbujas, desde los tulipanes holandeses a las acciones japonesas a finales de los 80.

La mayoría de ellas eran simplemente modas pasajeras o tardaron décadas en recuperarse. El Nikkei 225, por ejemplo, sigue bajando casi un 29 por ciento desde su pico en enero de 1990.

Mientras tanto, las acciones de Amazon tardaron casi diez años en alcanzar un nuevo récord histórico tras el estallido de la burbuja de las punto com a finales de 1999.

Los tulipanes holandeses – que siempre son criados por los detractores de Bitcoin – están, por supuesto, muy lejos de sus días de gloria de 1637 cuando sólo una bombilla podía valer tanto como una casa de lujo en Amsterdam.

Enero en Pace to Break More Crypto Records

Enero en Pace to Break More Crypto Records

  • Los volúmenes de intercambio descentralizados están en camino de romper los viejos registros.
  • El número de nuevos titulares de bitcoin parece estar aumentando.
  • La capitalización del mercado criptográfico está por encima de 1 billón de dólares.

El Proyecto Fideicomiso es un consorcio internacional de organizaciones de noticias que construye estándares de transparencia.

Mientras que la corrida de toros de finales de 2020 estaba en pleno apogeo, enero de 2021 parece que va a romper esos récords. ¿Podría ser este el comienzo del año más intenso para el cripto y Bitcoin hasta ahora?

El año 2020 ciertamente no fue un mal año para el cripto. Los comerciantes tuvieron maravillosos puntos de entrada en marzo, y casi tan apetitosos puntos de salida en diciembre, ya que Bitcoin Future pasó de 4.000 a 40.000 dólares. Pero enero de 2021 podría cumplir los sueños de los amantes de la criptografía al batir más récords.

Volumen de financiación descentralizada

Aunque los precios son siempre una medida útil, el volumen de las transacciones es importante y puede mostrar hacia dónde se dirigen los mercados. Las finanzas descentralizadas se convirtieron quizás en la palabra de moda de la criptografía del 2020, pero no muestra signos de desaceleración.

Liderados por Uniswap, los intercambios descentralizados permiten el comercio anónimo, donde casi cualquiera puede proporcionar liquidez para casi cualquier señal. Según Messari Research, los DEX están en camino de alcanzar un volumen de comercio de 56.900 millones de dólares en enero de 2021. El récord anterior era de 26.700 millones de dólares en septiembre de 2020.

Los DEXs están en camino de hacer un récord de 55 mil millones de dólares en volumen este mes pic.twitter.com/SFO1i9PoM5
– Messari (@MessariCrypto) 15 de enero de 2021

Mientras que Uniswap desató la locura del DeFi a finales de 2020, otros protocolos están cogiendo fuerza. Synthetix ofrece soluciones de capa 2 para el Etereo, y MakerDAO, creadores del DAI stablecoin, tampoco lo están haciendo demasiado mal.

Maker ($MKR) haciendo una carrera en UNI para el activo más valioso de DeFi.

Acercándose rápidamente a cinco protocolos de DeFi con un valor de 1,5 mil millones cada uno.

h/t @KidKrypt0 pic.twitter.com/ITSjRHeKcm
– Mason Nystrom (@masonnystrom) Enero 9, 2021

Mientras tanto, algunos protocolos de intercambio de un gran potencial como Kyber ven volúmenes relativamente pequeños.

Me tryna ver kybers volumen pic.twitter.com/VwgADNMslb
-_- (@Sorcosa) 16 de enero de 2021

Por otra parte, uno de estos protocolos de intercambio menos populares podría salir con una solución asesina de capa 2 para ETH, reduciendo enormemente las tasas y los tiempos de transacción. Un pionero en la Capa 2, especialmente uno apoyado por un vale gratuito, podría iniciar otra locura.

Los nuevos poseedores de bitcoin aumentan

Mientras que el DeFi y el mundo del etéreo (ETH) está absorbiendo la atención de los comerciantes, el bitcoin (BTC) en sí mismo no está haciendo demasiado mal. A pesar de un par de caídas de las cifras más altas de todos los tiempos que casi llegaron a más de 40.000 dólares (¿y quién podría haber predicho eso?), Bitcoin todavía tiene buenas métricas.

En este momento, la inversión de las instituciones es un hecho, aunque si el precio está fijado o si las instituciones esperarán una gran caída para comprar es otra cuestión.

La investigación de Chainalysis vía blogger fklivestolearn muestra algunos datos bastante excitantes cuando se trata de cuánto tiempo los hodlers han estado hodlando. El valor de las carteras de los poseedores a largo plazo está aumentando, al igual que las carteras que han sido mantenidas por menos de un mes.

El blogger fklivestolearn cree que estas cifras, que casi alcanzan el nivel de la corrida de toros de 2017 a 20.000 dólares, sugieren que nuevos compradores siguen llegando al mercado. A medida que los principales medios de comunicación se despiertan de las vacaciones de invierno para cubrir Bitcoin, este número podría alcanzar niveles récord. Eso significaría más compradores de BTC que nunca antes, y por lo tanto, precios más altos.

La chiusura completa di Internet cancella

La chiusura completa di Internet cancella il commercio di Bitcoin in Uganda

Negli Stati Uniti, i social media possono far chiudere il presidente. In Uganda, il presidente può chiudere l’intera rete internet.

  • Il governo ugandese ha sostanzialmente chiuso Internet prima delle elezioni presidenziali di giovedì.
  • I critici dicono che la mossa è stata quella di soffocare il flusso di informazioni.
  • Sta anche soffocando il flusso di Bitcoin.

Alla vigilia delle elezioni di giovedì, il presidente ugandese Yoweri Museveni, che è al potere da un colpo di stato del 1986, stava apparentemente facendo di tutto per vincere un sesto mandato.

La polizia aveva arrestato e molestato il suo principale avversario, la pop star trasformata in politico Bobi Wine; aveva usato i protocolli COVID come pretesto per chiudere gli eventi dell’opposizione; e poi le agenzie governative hanno bloccato l’accesso alle applicazioni dei social media come Facebook, Twitter e WhatsApp.

Ma mentre gli ugandesi aggiravano le restrizioni dei social media attraverso reti private virtuali (VPN), il 13 gennaio la commissione per le comunicazioni dell’Uganda ha staccato la spina all’intera rete internet a Bitcoin Evolution tempo indeterminato, imponendo ai fornitori di servizi internet di sospendere il funzionamento dei gateway internazionali.

Il governo di #Uganda ha ordinato ai fornitori di servizi Internet di chiudere tutti i gateway internazionali fino a nuovo ordine. Siamo completamente tagliati fuori dal mondo. pic.twitter.com/kZEpqbhRPM

– Kyle Spencer (@kyleville) 13 gennaio 2021

Expat Kyle Spencer, il responsabile dell’Uganda Internet Exchange Point, un’organizzazione no-profit che ha lo scopo di migliorare la connettività internet del Paese, ha scritto che l’Uganda è „tagliato fuori dal mondo“. Il traffico internet nazionale è sceso del 95% in un giorno. „Solo poche reti hanno ancora il polso“, ha scritto. „La maggior parte ha una linea piatta“.

Ha detto una fonte anonima il 12 gennaio, quando erano stati presi di mira solo i siti dei social media: „In Uganda, la chiusura è semplicemente per evitare il flusso di informazioni dal pubblico in un momento in cui abbiamo bisogno di piena trasparenza e di una reportistica aperta“.

Come effetto collaterale, secondo il sito di analisi UsefulTulips, dal 14 gennaio non è stata segnalata alcuna attività di trading Bitcoin sugli scambi peer-to-peer LocalBitcoins o Paxful in Uganda. Una visita del sito di Decrypt to Paxful’s Uganda shilling (UGX) ha trovato offerte di vendita di ghanesi, nigeriani e kenioti, ma non di ugandesi. I trader di UGX su LocalBitcoins provengono dai paesi vicini Ruanda, Tanzania e Repubblica Democratica del Congo.

Per essere sicuri, il mercato ugandese è piccolo: i mercati P2P registrano tra i 5.000 e i 15.000 dollari al giorno. „E‘ così piccolo, infatti, che Binance ha chiuso il suo sito locale, citando bassi volumi di scambi“, ha sottolineato la fonte anonima. Questo nel novembre del 2020.

LocalBitcoins e Paxful UGX Volume combinato

Ma la mancanza di attività è preoccupante, tuttavia, la Bitcoin ha alcuni punti deboli nei paesi con governi autoritari e monopoli.

MTN Uganda, una società di telecomunicazioni che, a causa del blackout, controlla il 60% del mercato della telefonia mobile del Paese. Svolge un ruolo fondamentale nel fornire l’accesso a internet-via smartphone e dispositivi USB. E gestisce Mobile Money, un sistema di pagamento basato sui cellulari che molti usano per inviare rimesse, pagare le tasse scolastiche e – sì – comprare Bitcoin resistente alla censura.

Gli ugandesi, tuttavia, sono abituati a essere tagliati fuori – e sono esperti nel creare soluzioni. Nel 2018, il governo ha iniziato a tassare le visite alle applicazioni dei social media sui telefoni cellulari per prevenire il „gossip“. Il blocco dei siti dei social media all’inizio di questa settimana è stato un logico passo successivo.

Ciò significava che i gruppi dell’opposizione erano pronti per sporchi trucchi. Hilary Innocent Taylor Seguya, un sostenitore di Bobi Wine che ha attirato l’attenzione internazionale facendo causa al presidente Museveni per averlo bloccato su Twitter, ha detto a Decrypt:

„Avevamo incoraggiato molti a installare le VPN…[Museveni] non vuole che gli ugandesi che si oppongono al suo malgoverno comunichino le irregolarità e le illegalità di questo giovedì alle elezioni, ma siamo fortunati ad avere oggi l’alternativa delle VPN“.

La chiusura di Internet rende però la cosa discutibile. E mentre le blockchain possono ancora funzionare anche se le rampe di internet vanno giù – usando tutto, dai satelliti alle reti mesh – perché alcuni governi scelgono di far lavorare i loro cittadini così duramente per condividere informazioni e denaro?

Crypto sector: These three trends can be identified for 2021

The year is drawing to a close, so the question is what will fundamentally change for the crypto sector in the coming year. The last Friday comment for this year should therefore outline the three biggest changes and make forecasts.

1. Institutional investors take the helm

In the last half of 2020, an expectation of the last few years was finally fulfilled: institutional investors have discovered the crypto market for themselves and, with their inflows of billions, are ensuring unabated price increases for Bitcoin. Almost every day there are new reports from hedge funds, asset management companies and companies that are pumping two or three-digit million amounts into the crypto market.

As much as this may please one or the other Bitcoin Trader scam investor, it also means, conversely, that the rules are now being made by the professionals on Wall Street and City of London and no longer by private investors or native crypto companies. Compared to regulated futures and options exchanges such as the CME, CBOE or Bakkt, crypto exchanges are thus becoming less relevant. After all, the new institutional investors do not trade with tokens at Binance and Co., but rather via futures on the aforementioned derivatives exchanges. Crypto traders will therefore also have to adapt their analysis methods in 2021.

At the same time, public opinion is shaped more strongly by the old economy. After all, it is their analysts and company spokesmen who classify the situation on the crypto markets.

The new medium of tokens is transferred to the corset of the old world by building appropriate indices and securitizing digital assets in securities certificates. The situation is increasingly reminiscent of German car manufacturers. Although we know that electric mobility is the future, we still cling to combustion engines and build hybrid vehicles as a compromise.

2. Regulation leaves no stone unturned

With the arrival of the old economy in the crypto sector, the rules of the game are also being adapted. Everything is becoming more regulated, the free spaces are becoming smaller. Already in 2020 warnings from politics were often heard that they were ready to heavily regulate and, if necessary, ban crypto currencies and, above all, stablecoins. In 2021, the fight against anonymity in the crypto space will be announced, as was recently emphasized and partially implemented by the G7 and above all France .

Laws on KYC are passed across states in the interests of each state. In particular, digital central bank money (CBDC) and stablecoins such as Facebook’s Diem, formerly Libra, will usher in a new crypto age in 2021. Also worth mentioning here is PayPal, which will continue to roll out its existing crypto service in 2021. Corporations are taking back control of the crypto market and user data in coordination with the states – this is the compromise for the green light.

Greater consumer protection, greater user-friendliness, rising prices due to more and above all professional market participants are the positive sides of this change. On the other hand, decentralization and the crypto narrative are turned inside out. In 2021, control will go back to some extent from the end consumer to the state or corporation. After all, it is primarily custodial wallets on which Bitcoin and Co. are stored. The user is therefore giving up access to the crypto offers of the newer hour more and more often. 2021 will therefore be a downright sad year for advocates of high privacy.

As a consequence of this regulatory offensive, a stronger counter-movement will slowly form in 2021, which is fed by the DeFi ecosystem. When it comes to really decentralized protocols, be it decentralized credit networks (crypto lending) or decentralized stock exchanges (DEX), authorities and corporations break their teeth. A decentralized DeFi ecosystem does not fit into their regulatory concept and will therefore increasingly offend. If not yet in 2021, this will lead to a massive regulatory conflict. The current discussions about Diem, on the other hand, should seem harmless. Before that happens, the DeFi sector has to grow significantly first.

Bitcoin celebrates new highs while USD is in freefall

IN BRIEF

  • The USD index shows a 7% drop since the beginning of the year, dropping below 90 for the first time in 2 and a half years.
  • The dollar has been affected by global socio-economic uncertainty and rising inflation.
  • Bitcoin has risen nearly 350% this year as it is increasingly seen as a hedge against inflation and a store of value.

The dollar index fell below 90 for the first time since April 2018. This is the lowest level for the global reserve currency in the last 2.5 years.

As the world, especially the United States, continues to suffer from widespread economic turbulence, general uncertainty and rising inflation, the value of the dollar has taken a significant hit.

Throughout this year, the dollar index fell by about 7%, from about 97 to its current level of 89.96. The dollar’s index has been on a downward trend since the beginning of the year.

While the world’s fiat currencies are struggling under the current socio-economic conditions, cryptomoney companies like Bitcoin are suffering the opposite effect.

Protecting against inflation

While the world’s fiduciary currencies are experiencing multi-year difficulties and troughs, the opposite is true for Bitcoin.

Since the beginning of 2020, the value of the crypto nation pro has increased by almost 350%, with its peak market value rising from $120.4 billion at the beginning of the year to $419.5 billion currently.

As the world struggles to find the best way forward economically, Bitcoin and its predetermined supply and production rate seems to bring some stability in the midst of uncertainty.

Can Bitcoin replace the dollar as a store of value?

Traditionally, when a person seeks financial stability, they hold „safe“ assets such as gold, real estate or a globally dominant currency.

With a global pandemic and a world economy at a standstill, partly supported by galloping inflation, many users and institutions are beginning to view Bitcoin as a safer cash asset than its alternatives.

There are many examples of institutions that are following this thought process. One of the best examples is MicroStrategy, a member of the S&P SmallCap 600 Index, which owns more than $700 million of Bitcoin and plans to purchase an additional $650 million.

Michael Saylor, MicroStrategy’s CEO, decided that it would be safer for the company to have a portion of its cash reserves in Bitcoin rather than USD, as he sees Bitcoin as a stronger hedge against inflation. So far, Saylor seems to be right, as digital assets continue their steady rise after recently surpassing their previous record.

Although daily price movements are not an indicator of long-term strength or ease of use, Bitcoin has continued to recover with a daily increase of almost 20%.

Tesla: Elon Musk flirts with bitcoin investment

Elon Musk makes advances toward a billion-dollar bitcoin investment and promptly gets some free advice from MicroStrategy CEO Michael Saylor on Twitter.

That’s where two have sought and found each other: A lively Bitcoin debate has erupted on Twitter between Tesla CEO Elon Musk and MicroStrategy CEO Michael Saylor, making high waves in the crypto space. In the process, Michael Saylor took a salacious post by Musk for free investment advice.
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Bitcoin on a record run!

Saylor’s „Insider Tip“:

If you want to do your shareholders a $100 billion favor, convert the $TSLA balance from USD to BTC.

According to Saylor, the radiance of a Tesla entry into Crypto Engine could entice other S&P500 companies to invest as well, thereby cranking up BTC market capitalization and rapidly increasing the value of a $100 billion USD investment tenfold.

The simple math eventually worked out in MicroStrategy’s case: since the publicly traded software company shifted about $475 million of its cash reserves into BTC, the investment has more than doubled in the wake of the Bitcoin bull run, at a current value of more than $958 million.

Musk, who is no stranger to cryptocurrencies, then rejoined the discussion and inquired of Saylor whether transactions of the magnitude were even possible.

Saylor’s answer was not long in coming. An unequivocal: Yes. He himself had invested $1.3 billion in Bitcoin in recent months and would be happy to share his „playbook“ with Musk, from one rocket scientist to another.

Tesla soon to be Bitcoin Hodler?

How serious Musk’s comments are remains to be seen. The Tesla and SpaceX CEO not infrequently uses irony as a stylistic device on the short message platform. Nevertheless, an entry into BTC is not completely out of the question. Musk has already expressed his admiration for digital gold in the past and, as the proud owner of – after all – 0.25 BTC, already counts himself among the Hodler genre. In the process, he also has to repeatedly serve as a potential CEO candidate for the MemeCoin project Dogecoin.

The balance sheet also proves MicroStrategy’s investment strategy right and could follow Musk’s words with action. A former project of the go-getting businessman, PayPal, has finally opened up to the Bitcoin economy as well. It is not unlikely that Tesla could follow suit. The appropriate Bitcoin ATM is already in place at the Gigafactory in Nevada.