Crypto Guides, Knowledge & Insights

Report: The Metaverse Might Contribute $320 Billion to Latam's GDP in the Next 10 Years

A new report indicates that the metaverse might be a significant factor in the growth of economies in Latam and the world in the coming decade. The study, issued by Analysis Group, estimates that Latam might benefit from a surge of $320 billion or an approximate 5% of its GDP, in the next 10 years. This is the biggest percentage share of GDP of the regions in the studys projection.　　Analysis Groups Metaverse Report　　The metaverse is becoming a subject of intense focus in crypto and business at large, and many companies are already projecting the impact that it might have in several countries and areas in the future. In a recent report titled “The Potential Global Economic Impact of the Metaverse” issued by international economic consulting firm Analysis Group, the opportunities that the emergence of the metaverse could open in the next ten years are examined, assuming “adoption begins in 2022.”.　　In the document, the researchers compare the rise of the metaverse with mobile technologies and examine the growth as if this new technology were to evolve in a similar way. This industry was selected “because of similarities to the metaverse in the way it combined existing and nascent innovations to fundamentally

2022-05-26Deep Dive

JPMorgan: Crypto Trumps Real Estate As ‘Preferred Alternative Asset Class’

Digital assets have replaced real estate as JPMorgans “preferred alternative asset class,” the bank said in a report Wednesday.　　Public markets have already priced in significant recession risks, and digital assets have re-priced, following the collapse of TerraUSD (UST), according to JPMorgan analysts.　　An algorithmic stablecoin designed to maintain a one-to-one peg to the US dollar, UST traded around 9 cents Wednesday afternoon.　　“A potential lagged repricing keeps us more cautious on private equity, private debt and real estate over the coming quarters,” analysts wrote. “We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds.”　　The analysts fair value for bitcoin remained unchanged at roughly $38,000, “implying significant upside for digital assets from here.”　　Bitcoin was trading at about $29,700 at 4 p.m. ET on Wednesday, according to Blockworks data.　　Though the Terra crash has soured sentiment among investors, JPMorgan analysts said there have been relatively limited spillovers to other stablecoins and DeFi more broadly.　　Venture capital funding in the crypto space will be a key metric to watch, they added. Of the $25 billion of venture capital funding so far in 2022, nearly $4 billion came after Terras crash.　　“If VC funding dries up from here as a result

2022-05-26Deep Dive

Stripe resumes BTC payments four years after suspending the service

Online payment processing company Stripe has re-introduced Bitcoin (BTC) payments through a partnership with crypto start-up OpenNode, which leverages the Lightning Network.　　This partnership will allow Stripes customers to accept BTC payments through a new app. This app will let users convert incoming payments and any amount of their account balance into BTC.　　Notably, this service will be part of Stripe‘s public beta of a new app marketplace. These products are scheduled to hit the market in the next few weeks. Through the OpenNode partnership, Stripe’s clients will get access to fast and cheap BTC payments via the Lightning Network.　　Stripe‘s effort to make a comeback in the crypto industry comes after the company suspended BTC payments in 2018, citing slow transaction times, rising fees, and a lack of interest from customers. However, Stripe’s rivals, including Block, PayPal, and Checkout.com, embraced the nascent asset class, prompting the company to resume crypto payments.　　Stripes renewed interest in BTC might help revive the cryptocurrency　　Stripes re-introduction of BTC payments has the potential to help the flagship cryptocurrency rebound following the crash triggered by the collapse of TerraUST (UST) and Terra (LUNA). The company has more than two million users, which could expand BTCs use and help push

2022-05-26Deep Dive

a16z Raises $4.5 Billion to Invest in Crypto Amid Broader Market Correction

Andreessen Horowitz, also known as a16z, has raised $4.5 billion to pour into the cryptocurrency industry via a new fund. Thus, the companys total funds raised for blockchain-related entities have shot up to $7.6 billion.　　Founded over a decade ago, a16z has become one of the largest venture capital firms with a focus on the cryptocurrency industry, with multiple initiatives launched in the past. One of the most recent included a $2.2 billion fund announced in January this year.　　However, the company took it a step further on May 25 when news broke that it had raised even more funds – $4.5 billion – to allocate in the cryptocurrency ecosystem.　　The firms first fund came four years ago, during the notorious bull market, and the latest one comes as the prices have tumbled quite a lot since the November 2021 highs.　　According to Arianna Simpson, a general partner at a16z, these types of unfavorable market conditions provide the “best opportunities.”　　“Bear markets are often when the best opportunities come about when people are actually able to focus on building technology rather than getting distracted by short-term price activity.”　　Speaking on what requirements projects have to meet before receiving a16z backing, Simpson added:　　“The technical diligence and the

2022-05-26Deep Dive

Terra Will Launch a Spin-Off Blockchain This Friday

The governance vote to create a new Terra blockchain with new LUNA tokens (and no algorithmic stablecoin) has passed.　　Terra to Launch New Blockchain　　Do Kwons plan to revive the Terra ecosystem seems to be coming to fruition.　　The Terraform Labs co-founder and CEOs proposal to launch a new Terra blockchain was approved in a governance vote Wednesday. 65.5% of the total votes tallied in support of the proposal, while only 13.2% of the ballots strongly opposed it and voted “no with veto,” arriving 20.2% short of the veto threshold that would have nulled the proposal.　　The move comes in response to Terra‘s $40 billion collapse that transpired earlier this month. The revival plan, submitted by Kwon and supported by Terraform Labs and the Terra Builder Alliance, suggests creating a new blockchain with a new LUNA token. Unlike the original Terra network, the new one will not be attached to an algorithmic stablecoin. According to the proposal, it’s set to be called Terra, while the existing chain that crashed to zero will be renamed Terra Classic.　　The approved proposal aims to make Terra investors whole by airdropping the new LUNA tokens—based on a set distribution—to those who held LUNA and UST before and during Terra‘s

2022-05-26Deep Dive

5 Up-and-Coming DOGE Projects that Might be Worth Your Money

In the 2021 bull run, cryptocurrencies that played on the dog theme dominated the market. It all started on April 2nd, when Elon Musk tweeted “Dogecoin might be my fav cryptocurrency. It‘s pretty cool.” In the weeks that followed, Dogecoin – cryptocurrency’s original meme – skyrocketed from a meager $0.05 to a high of $0.75 on May 7th. That means a DOGE holder who had $100 of Dogecoin on April 2nd would have had $1500 less than a month later.　　With the Tesla CEO incorporating DOGE into its accepted payments for merchandise sales and supercharging stations and suggesting that people who subscribe to Twitter Blue should be able to pay with Dogecoin, DOGE itself (approximately $0.08 at the time of writing) still has massive upside potential. But many feel as though they‘ve missed out on the asset’s heyday. Theyre looking for the next 10,000x that only comes from early adoption. These five dog-themed coins have the potential to do just that.　　Baby Doge ($BABYDOGE) is a deflationary token designed to become more scarce over time. They charge a 5% fee for each sale of the asset and redistribute that fee to Baby Doge Coin holders – meaning the longer you hold, the

2022-05-25Deep Dive

Survey: Companies Accepting Bitcoin, Crypto Have Positive Impact On Their Image

CoinsPaid, a European cryptocurrency infrastructure provider, released research to Bitcoin Magazine that shows companies accepting bitcoin and other cryptocurrencies are viewed positively and provide noticeable impact on peoples lives in Brazil, Columbia and Argentina.　　The survey, which was conducted this past March, showed that 50.5% of Brazilians viewed bitcoin and other cryptocurrencies being accepted by companies with a positive outlook, or that they believed cryptocurrency would be the future of money. Likewise, Argentina reported 38.1% positively towards their outlook while Colombia surveyed at 35.7%.　　Respondents from all three countries reportedly stated that one of the main factors that would determine whether or not they wanted to use something like bitcoin for daily transactions is greater security in transactions. This shows a clear demand for bitcoin as its network is by far the largest and most decentralized providing the strongest form of transactional security with a verifiable and uncontrollable public ledger.　　Brazilians also showed 36.3% of respondents would prefer to use a currency like bitcoin for daily purchases, which was echoed by the Brazilian Senate as they passed a bill this past February seeking to regulate the broader market.　　The movement of countries like Brazil, Argentina and Colombia considering the adoption of new forms of

2022-05-25Deep Dive

ECB: One in ten households in eurozone population centers now own cryptocurrency

On Tuesday, the European Central Bank, or ECB, published the results of a new survey conducted in six eurozone areas; the Netherlands, Spain, Italy, Belgium, France, and Germany. Together, approximately 10% of respondents from the surveyed countries said they own cryptocurrencies. Out of this group, only 6% of respondents said they own digital assets worth more than 30,000 euros. Meanwhile, 37% of respondents said they owned up to 999 euros in crypto.　　Across all of the countries surveyed, investors in the fifth income quintile (or the wealthiest 20% of the population) consistently had the highest proportion of cryptocurrency ownership relative to other income groups. The Consumer Expectation Survey asked adults aged 18 to 70 if they or anyone in their household owned financial assets in various categories, such as crypto-assets.　　The survey was included in a new report published by the ECB the same day regarding the growing adoption of crypto assets despite their risk factors. As cited by the ECB, 56% of respondents in a recent Fidelity survey said they had some exposure to crypto-assets, up from 45% in 2020. Increased availability of crypto-based derivatives and securities on regulated exchanges, such as futures, exchange-traded notes, exchange-traded funds, and OTC-traded trusts, have

2022-05-25Deep Dive

European Central Bank Says Crypto Unsuitable As Store Of Value

The European Central Bank (ECB) said on Tuesday that cryptocurrencies are largely unsuitable as an investment or a store of value.　　The bank said if the current growth and market integration of cryptocurrencies persists, they could pose a bigger threat to the economy. But it still sees their popularity growing, especially among retail investors.　　So far, despite volatility in the crypto market this year, it has not resulted in any major contagion to the real economy. But the ECB thinks this could change.　　The ECBs comments, which were released in a report, come shortly after President Christine Lagarde said crypto is “worth nothing.” The central bank has also previously derided crypto for its volatility and risks to investors.　　ECB thinks crypto regulation lacking, investors vulnerable　　A recent survey ECB shows that at least 10% of European households own crypto assets. Retail investors also make up a significant portion of crypto holders, according to the bank.　　But it is on this notion that the bank states that crypto assets are lacking in consumer protection risks. Investors in the space are more vulnerable to fraud, regulatory relief mechanisms and market manipulation.　　While major crypto projects are growing, the ECB says they lack “internal shock absorbers” for extreme market events.

2022-05-25Deep Dive

Three Factors That Will Favor Bitcoin Vs Crude Oil This Decade: Bloomberg’s Chief Expert

Chief commodity strategist of Bloomberg, Mike McGlone, has taken to Twitter to share his view on the trajectory of crude oil price versus that of Bitcoin, where the latter has been rising.　　McGlone believes that Bitcoin is going to rise unlike crude oil thanks to three factors within this decade – adoption, supply and demand.　　So far, he stated the trajectory on the chart has been unfavorable for crude oil and favorable for the flagship cryptocurrency also known as digital gold. He reckons there is a high probability that it would remain the same way.　　Bitcoin adoption has been widely expanding recently, as more and more financial institutions and retail investors have been acquiring BTC to bet on it long-term.　　Recently, major investor and author of the “Rich Dad, Poor Dad” book Robert Kiyosaki tweeted that he remains bullish on the future of BTC, however, he expects a new bottom test for the asset.　　Similar view has been shared by chief investment officer of Guggenheim Partners, Scott Minerd. He believes Bitcoin may go down as much as to test the $8,000 bottom from the current price. However, since, according to him, the majority of the 19,000 cryptocurrencies is “garbage” and “not even currencies”, such coins

2022-05-25Deep Dive

...

245247

...

742