Crypto Guides, Knowledge & Insights

What Is Avalanche Network (AVAX)? The 'Flexible' Ethereum Competitor

In the race to produce the fastest, most feature-complete blockchain there is, a handful of major players have emerged in the last few years.　　Among these, Avalanche—an open-source platform for new financial primitives and decentralized applications—has solidified as one of the front-runners.　　Here, we take a look at what makes it stand out in an increasingly populated industry.What is Avalanche？　　Avalanche is a platform developed by Ava Labs that allows anybody to easily produce their own multi-functional blockchains and decentralized applications (dApps).　　It is designed to address some of the limitations of older blockchain platforms, including slow transaction speeds, centralization, and scalability—and uses several innovations to do so. These include its unique Avalanche consensus protocol, which promises low latency, high throughput capabilities, and resistance to 51% attacks.　　Avalanche launched its mainnet in September 2020, just two months after raising $42 million in a token sale—which sold out in less than five hours.　　In June 2021, Polychain Capital and Three Arrows Capital led a $230 million funding round for Avalanche via a private token sale. In April 2022, Avalanche announced a funding round of $350 million, putting the companys valuation at $5.2 billion. 　　Since 2020, Avalanche has grown to become the third-largest blockchain by total value locked

2022-05-17Deep Dive

Bitcoin's Seventh Straight Week in the Red Sets New Record

The previous six-week record took place in 2014, when Bitcoin dropped from $507 on August 25 to $323 on October 6, according to BitStamp. This year, the primary cryptocurrency has suffered an equally dramatic collapse, from roughly $46,900 on March 28 to a Monday close of about $31,300—a 33% loss.　　Before its bearish turn, the top cryptocurrency by market cap surged past $45,000 for the first time since January. Market sentiment grew bullish among traders and analysts alike, while enthusiasm over Terras plans to build a $10 billion Bitcoin reserve further rallied the community.　　But this month tells a different story. As Bitcoin‘s price plunged to lows unseen since late 2020, Terra’s ecosystem all but collapsed as the TerraUSD (UST) stablecoin lost its peg to the dollar, and the LUNA governance tokens price fell to zero. Meanwhile, the Luna Foundation Guard (LFG) dumped 99% of its 80,000-plus Bitcoin on the market in a fledgling attempt to shore up UST.　　In March, the Bitcoin Fear and Greed Index—a rough measure of Bitcoin community and market attitudes—flipped to greedy (a score of 55-plus) for the first time since November. Today, the index shows “extreme fear” at only 14, compared to Novembers colossal high of 84.　　Analysts

2022-05-17Deep Dive

U.S. Government Launches First Crypto Sanctions Evasion Case

Key Takeaways　　The U.S. government has launched its first case involving the use of Bitcoin transactions to evade sanctions.　　The defendant allegedly created a payments platform and moved approximately $10 million of Bitcoin through it.　　The defendant boasted that the service could be used to evade sanctions, incorrectly believing that cryptocurrency to be untraceable.　　The U.S. Department of Justice has launched its first-ever case involving the use of cryptocurrency to evade sanctions.　　 Defendant Operated Payments Platform　　The U.S. government is set to bring charges against an unnamed individual for wilfully using cryptocurrencies to evade sanctions in the first case of its kind. In an opinion written by the cases judge, it is revealed that the government is bringing charges against an unnamed defendant for operating an online payment platform in a sanctioned country.　　Some of those activities involved cryptocurrency transfers. “The Payments Platform advertised its services as designed to evade U.S. sanctions, including through purportedly untraceable virtual currency transactions,” the court document notes.　　The defendant also created an account with a U.S.-based crypto exchange to buy and sell Bitcoin. They then sent thousands of dollars to two other accounts at exchanges in foreign countries. Ultimately, the defendant used those two accounts to transmit more than $10 million

2022-05-17Deep Dive

44 Countries Set To Meet El Salvador To Discuss Bitcoin

Before El Salvador had made Bitcoin a legal tender, it was a relatively unknown small North American country. The decision to make bitcoin legal tender alongside the U.S. dollar had given it overnight fame and the world watched on to see how this will affect its economy. Now, more than six months after it was officially adopted, 44 countries are headed to the North American country to discuss Bitcoin, alongside other financial issues.　　Discussing Bitcoin And The Economy　　El Salvadorian President, Nayib Bukele, has announced that he would be receiving delegates from 44 countries to discuss a number of financial topics. These would range from financial inclusion to the use of Bitcoin as legal tender in the country. This meeting which is scheduled to happen tomorrow will see 32 central banks and 12 financial authorities from 44 countries come together to meet in the small nation to discuss these issues.　　El Salvador which is the first country to accept Bitcoin as legal tender will no doubt be the footprint of adoption for other countries interested in making such a move. It is still less than a year after the implementation but the president revealed that they would be discussing how beneficial using BTC

2022-05-17Deep Dive

German Financial Supervisor Issues Stark Warning About DeFi

German financial watchdog BaFin has called for regulating the decentralized finance industry.　　While the DeFi sector is still relatively small, it could pose a serious threat to consumers if it ends up being a serious competitor to the traditional financial sector, according to BaFins Birgit Rodolphe.　　The regulator has stressed that DeFi cannot be put in a better regulatory position compared to the traditional financial market.　　If cryptocurrency assets suddenly disappear, there is no deposit protection for users, which makes them increasingly vulnerable. Hence, it needs a specific regulatory framework, according to BaFin.　　Germanys top financial regulator has proposed a pan-European approach to regulating DeFi products.　　Last week, Terra, which some believed was too big to fail, collapsed in a matter of days, leaving plenty of users penniless. Anchor Protocol, a popular savings, lending and borrowing platform based on the troubled blockchain, went belly up together with the broader ecosystem.　　The implosion of Terra resulted in a severe market crash. Bitcoin, the top cryptocurrency, plunged to the lowest level since December 2020. Please download WikiBit for more blockchain news.　　In March, the European Parliament voted in favor of the Markets in Crypto Assets (MiCA) regulatory package. The “innovation-friendly” framework was passed without some Bitcoin-related limitations from its

2022-05-17Deep Dive

Bitcoin Has Failed as an Alternative Money, says Former Fed Chairman

During his Monday appearance on CNBC, former Federal Reserve Chairman Ben Bernanke opined that Bitcoin was not going to take over as an alternative means of payment.　　Bernanke notes that it was intended to work as a substitute for fiat money, and it has failed to succeed in that respect.　　The prominent American economist has noted that nobody buys groceries with the help of Bitcoin because it is “too expensive” and “too inconvenient” to do that.　　Pricing goods in Bitcoin would be a major challenge since its value tends to significantly fluctuate from day to day, according to Bernanke.　　The former Fed chair is convinced that Bitcoin is mostly used for underground economic activities to buy things that are illegal or illicit.　　He, however, adds that Bitcoin will be around as long as people want to speculate.　　Bitcoin, according to Bernanke, has no underlying value since it is not used in dentistry or other industries.　　“The underlying use value of Bitcoin is to ransomware or something like that,” he said.　　The economist predicts that the cryptocurrency will face a lot more regulation. Please download WikiBit for more blockchain news.　　The Fed needed to act sooner　　Bernanke, who left the Fed as chairman back in 2014, oversaw the central banks response

2022-05-17Deep Dive

Bitcoin (BTC) Is Creating A Bottom For The Next Bull Market

Currently, the Bitcoin (BTC) price is creating a bottom as we are witnessing strong pressure in the Bitcoin market. The bull market will soon follow.PlanB Postulates the Next Bull Market　　Previously in 2021, PlanB predicted $100k in December 2021 based on the Stock-to-Flow model. However, the BTC price moves into the bear market after making a high of almost $69k in November. Since then, the price has made a low of $26,350 on May 12.　　PlanB now says the pressure seen in the market is a result of Bitcoin (BTC) forming a new bottom. As per new data shared, the BTC price is expected to form a bottom in the next half of 2022, possibly in October. Thereafter, a bull market will start, pushing prices towards 100k.　　“Dec 2021 I was still hoping for a 2nd leg of the bull market. But in Q1 2022 it became clear that this bitcoin bull market was over. We entered a bear market since Apr 2021 peak (yes ATH was Nov 2021). Now we are creating a bottom. Then a new bull market will start. BTC cycles.”　　Notable analysts such as Peter Brandt and Michaël van de Poppe had also shared the same scenario. Recently, Peter Brandt

2022-05-17Deep Dive

Bitcoin (BTC) Falls Back to $30,000 as Regulators Call for Action

Key Insights:　　On Sunday, Bitcoin (BTC) rose for a third consecutive day to end the week down 8%. It was a seventh consecutive week in the red.　　While the markets moved on from the TerraUSD and Terra LUNA collapse, there was no major breakout, with regulatory uncertainty returning to the market.　　Bitcoin (BTC) technical indicators flash red, with bitcoin sitting below the 50-day EMA.　　Bitcoin (BTC) rose by 4.15% on Sunday. Following a 2.75% gain on Saturday, bitcoin ended the week down 8% to $31,296.　　Investor angst over the TerraUSD (UST) and Terra LUNA eased going into the weekend. Bitcoin tested resistance at the 50-day EMA before a pullback this morning.　　While market angst over the Terra collapse eased, increased regulatory chatter is testing investor sentiment.Regulators React to the UST De-pegging and LUNA Collapse　　This week, lawmakers in South Korea talked of the need to expedite the enactment of crypto laws, while looking to consider how other major jurisdictions rollout virtual crypto regulations.　　South Koreas Digital Asset Basic Act is reportedly aimed at protecting investors and is due for enactment next year, with implementation in 2024.　　Last week, US Treasury Secretary Janet Yellen and SEC Chair Gary Gensler were vocal on the need for crypto regulations. While Yellen called

2022-05-16Deep Dive

Cryptocurrency and the Climate Crisis

The vision behind cryptocurrency has been to free money from the centralized control of banks and other financial intermediaries—and ultimately to replace the current sovereign-based financial system. But to achieve its aspirations, cryptocurrency uses technology that demands massive amounts of energy. Its climate impacts simply cannot be ignored.　　To understand what cryptocurrency is and how it works, consider how financial transactions ordinarily occur today. Every time consumers complete a transaction without cash, the transaction must be validated through an intermediary in the form of a bank. The banks operate with additional intermediaries in the form of the U.S. Board of Governors of the Federal Reserve System or the European Central Bank. All this intermediation involves some small transaction costs, but also gives rise to concern about the value of the currency because the Federal Reserve can essentially print money. Orthodox economic theory teaches the more money created by central banks, the greater the risk of inflation. That does not mean that intermediation is not good though. It has, after all, succeeded in financing considerable economic growth for decades.　　The cryptocurrency revolution intends to reduce the cost of intermediary transactions by using a distributed ledger system: Blocks that form part of a blockchain

2022-05-16Deep Dive

What exactly is cryptocurrency, and why has it become so popular?

What is cryptocurrency, and why do people invest in it？　　Cryptocurrencies are new-age digital currencies with some key defining characteristics. They leverage cryptography to provide a high level of security, meaning they are incredibly difficult to counterfeit or double-spend. Most run on blockchain technology, meaning they are decentralised and not controlled by any one entity, such as a central bank or other financial institution.　　Cryptocurrencies have gained significant traction recently and particularly during the pandemic, where many young investors were flush with both time and cash (in the form of government stimulus). This prompted prices to soar, which then caught the attention of many larger institutional investors.How do you buy cryptocurrency, and what is a digital wallet？　　The first port of call when buying cryptocurrency is an online exchange, which acts similarly to a share brokerage platform, such as CommSec. Some of the more popular local and international exchanges are Coinbase, Kraken, BTCMarkets and Independent Reserve.　　Once youve set up an account, transferred some money and run through the mandatory “know your customer” process, you can then get to purchasing your crypto. On most exchanges, this is as easy as picking what you want and hitting a big green “buy” button.　　If you‘re crypto curious,

2022-05-16Deep Dive

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