Crypto Guides, Knowledge & Insights

El Salvador releases mock-up of Bitcoin City – what’s the verdict?

El Salvador‘s President Bukele tweeted images of an architect’s model of Bitcoin City and the caption that things are ‘coming along beautifully.’Bitcoin City is a futuristic concept　　The pictures show a golden disc-shaped model with a hexagonal center and key landmarks, such as the airport, and artists depictions of various scenes, such as the lookout at the top of Conchagua Volcano and a picture of the city at night.　　President Bukele assured people that the gold color was simply the architects choice for the model. However, the finished product will be mainly composed of greens for trees and blue for the sea.　　“And no, the city won‘t be made up of golden metal; that is just the architect’s choice of color for the scale model. The actual city will be mostly green (trees) and blue (sea).”　　The artists impression at night depicts how the city will integrate with Conchagua Volcano. It shows the intersecting part of the city taking up most of the face of the volcano, leading to an incline. The city then levels off as it flows into the sea.　　With the release of the mock-up, Bitcoin City takes a step closer to reality. However, the ambitiousness and several uncertainties, including BTCs downturn

2022-05-11Deep Dive

Over 4M new Sweatcoin wallets created in less than a month

Sweatcoin has announced an increase of 4 million new Sweat wallets in the last 27 days. The new, user-friendly, move-to-earn application recently announced a partnership with Near Foundation to create a SWEAT crypto token. 　　The move to earn movement is heating up as more people realize that they can earn crypto while they walk. With this application, you can earn SWEATS for your steps.　　Until recently, many applications have targeted native DeFi users who may already be familiar with the blockchain ecosystems and existing Web3 platforms. With applications like Sweatcoin, Near protocol is sticking by its values to eliminate barriers to mass adoption and provide scalable solutions for creating Dapps. 　　On May 1, they also announced that the Sweatcoin App was the number 1 downloaded application in over 33 countries worldwide.　　The idea behind the Sweatcoin is simple; it allows users to receive rewards for tracking their steps on their mobile phones. The platform is seeing unprecedented growth, with $71 million exchanged within the marketplace in the first quarter.Sweatcoin partners with NEAR Foundation　　In April, the London-based company announced a partnership with NEAR Foundation to launch the SWEAT token. With over 600 brand partners on the platform, the Sweat economy is going from

2022-05-11Deep Dive

Bitcoin Cash to Include Bigger Integers and Native Introspection in Upcoming Upgrade

Bitcoin Cash Prepares Contract Focused Upgrade　　A new upgrade is on the horizon in the new one-year Bitcoin Cash upgrade schedule, modified from its previous six-month cycle during last year‘s upgrade. This time, the improvements to be included in the Bitcoin Cash blockchain were decided using CHIPs, Bitcoin Cash Improvement Proposals, that allow for public discussion of the community on the proposed upgrades. This new MO was also approved during last year’s upgrade, which happened on May 15th, 2021.　　The improvements this year are directed to improve performance and ease the way of programmers into writing covenants, which are smart contracts that enact rules on how funds can be used in a transaction. The two CHIPS included in this upgrade aim to allow covenants to be more precise and more useful, extending their functionality.CHIPs Explained　　The first CHIP to be applied in BCHs upgrade is CHIP-2021-03, which introduces bigger script integers to the chain. The specification states that bigger, 64-bit integers will be allowed, and these integers will be able to be multiplied directly in code. This will improve the functionality of these contracts by allowing programmers to harness more value without having to design workarounds, also reducing redundancy and transaction sizes.　　CHIP-2021-02, which

2022-05-11Deep Dive

UK Outlines Plans to Support Crypto Adoption, Create More Powers to Seize and Recover Digital Assets

UK Government Plans to Support Crypto Adoption　　The U.K. government outlined its legislative agenda for the next parliamentary year in the Queen‘s Speech delivered Tuesday by Prince Charles, the monarch’s son and first in line to the throne. The Queens Speech is written by the government and read out by the monarch as part of the official state opening of parliament.　　Speaking to both the House of Lords and the House of Commons, Prince Charles detailed numerous commitments that Her Majesty‘s government will carry out. He mentioned that 22 bills will be introduced, telling parliament that the government’s “priority is to grow and strengthen the economy and help ease the cost of living for families.”　　One of the bills is the “Financial Services and Markets Bill,” according to the background and briefing notes of the Queen‘s Speech posted on the government’s website. The purpose of this bill is to “maintain and enhance the U.K.s position as a global leader in financial services” and “seize the benefits of Brexit,” the document details.　　Among the benefits of this bill is:　　Harnessing the opportunities of innovative technologies in financial services, including supporting the safe adoption of cryptocurrencies and resilient outsourcing to technology providers.Bill to Create More Powers to

2022-05-11Deep Dive

Nigerian Crypto Restrictions Have 'Crippled Foreign Direct Investment in the Fintech Industry'

A new report has concluded that restrictions on cryptocurrency trading, as well as the banning of Twitter by Nigerian authorities, may have “crippled foreign direct investment in the fintech industry.”　　Foreign Direct Investment ‘Crippled’　　A new report has found that restrictions imposed by Nigerian authorities on crypto trading may have contributed to the reduced foreign direct investment that goes to the fintech industry. The same restrictions, as well as the banning of Twitter, have also adversely affected young Nigerians who were earning money via crypto trading.　　The report, which is titled Africa‘s Urbanisation Dynamics 2022: The Economic Power of Africa’s Cities, was jointly published by the secretaries-general of the Organisation for Economic Co‑operation and Development (OECD) and the United Nations (UN).　　“The restrictions on cryptocurrency transactions and the outright ban of Twitter in Nigeria have crippled foreign direct investment in the fin‑tech industry and negatively impacted millions of young Nigerians who earn a living from the sector,” the report concluded. Please download WikiBit for more blockchain news.　　Nigeria Denied Taxes　　However, an excerpt from the report published by Business Insider Africa suggested some Nigerian youths may have found ways to “lawfully bypass these restrictions and continue the business.” This fact is also backed by another report

2022-05-11Deep Dive

Janet Yellen Says UST's Collapse Illustrates Risks to Financial Stability

During a congressional hearing organized by the Senate Banking, Housing and Urban Affairs Committee, U.S. Treasury Secretary Janet Yellen called attention to the recent collapse of Terras UST stablecoin.　　“A stablecoin known as Terra (UST) experienced a run and declined in value…I think this simply illustrates that this is a rapidly growing product, and there are risks to financial stability and we need a framework thats appropriate,” Yellen said.　　In response, Sen. Pat Toomey (R-PA) noted that UST is an algorithmic stablecoin, meaning that it is not backed by cash or securities.　　In November, a regulatory body led by the U.S. Treasury Department issued a report that calls for stricter oversight of stablecoins. It warned that runs could spread “contagiously” throughout the sector, which could also expose the broader financial system to a higher level of risk.　　Yellen believes that Congress should pass legislation that would regulate the issuers of stablecoins. She thinks that it would be “very appropriate” to pass it as soon as this year.　　The worlds most powerful economist has noted that the outstanding stock of stablecoins is growing at a very rapid pace, which is why there is a need for a “consistent federal framework.”　　Last month, Yellen expressed her skepticism about

2022-05-11Deep Dive

Bitcoin (BTC) Price Recovers To $32K As Whales, Institutions Buy The Dip

Bitcoins (BTC) price showed a mild recovery after crashing below $30,000 on Monday . Whales and institutional traders are seen accumulating BTC at lower prices. It has resulted in the BTC price recovering marginally to trade around $32,096.　　While some have sold their BTC under panic, many investors bought the dip to increase their Bitcoin holdings. The bitcoin nation El Salvador has also bought 500 bitcoins as the BTC prices bottomed out.Bitcoin (BTC) Price Stabilizes Amid Accumulation　　The BTC price had dropped to as low as $29,750 in the last 24 hours amid panic selling. However, the trend reversed instantly as whales moved in to buy the BTC dips.　　As per WhaleAlert, BTC saw heavy outflows from exchanges such as Gemini, Coinbase, and Bitfinex in the last few hours. In fact, Bitcoins worth more than $500 million have been transferred to an unknown whale‘s wallets. Therefore, the WhaleAlert data and price action indicate a possibility of Bitcoin’s price moving higher from current levels.　　Moreover, the on-chain data by Santiment depicts Bitcoin (BTC) is very close to dipping into the historic buy zone, which generally sees prices bounce from lower levels. Moreover, the data shows average profitability levels are the most negative since late January.　　In

2022-05-10Deep Dive

9 out of 10 Central Banks Worldwide Are Exploring Digital Currencies

BIS Central Bank Digital Currency Survey　　The Bank of International Settlements (BIS) published a report last week titled “Gaining momentum — Results of the 2021 BIS survey on central bank digital currencies.” The report is authored by the banks senior economist Anneke Kosse and financial market analyst Ilaria Mattei.　　The BIS CBDC survey was conducted in autumn 2021 with the participation of 81 central banks. The report describes:　　Nine out of 10 central banks are exploring central bank digital currencies (CBDCs), and more than half are now developing them or running concrete experiments. In particular, work on retail CBDCs has moved to more advanced stages.　　The authors explained that both the Covid-19 pandemic and “the emergence of stablecoins and other cryptocurrencies have accelerated the work on CBDCs.” This is especially true in “advanced economies, where central banks say that financial stability has increased in importance as a motivation for their CBDC involvement,” they added.　　Noting that “the year 2021 was characterized by the strong growth of the cryptoassets and stablecoin market,” the report states, “On average, almost six out of 10 respondent central banks said that this growth has accelerated their work on CBDCs.” The authors continued:　　This has also spurred collaboration between central banks to

2022-05-10Deep Dive

Bitcoin Dives To $30K, Why Short-term Recovery Seems Possible

Bitcoin Price Declines 10%　　Bitcoin price remained in a major downtrend and extended downsides below the $35,000 level. BTC traded below the key $33,500 and $32,000 support levels to move further into a bearish zone.　　There was a close below $32,000 and the 100 hourly simple moving average. The price even traded below the $30,800 level and spiked below $30,000. A new multi-week low is forming near $29,755 and the price is now consolidating losses.　　On the upside, bitcoin price is facing resistance near the $31,250 level. It is near the 23.6% Fib retracement level of the recent decline from the $36,060 swing high to $29,755 low.　　The next key resistance could be near the $32,000 level. There are two important bearish trend lines forming with resistance near $32,000 on the hourly chart of the BTC/USD pair. The key breakout zone could be near the $33,000 zone.　　The 50% Fib retracement level of the recent decline from the $36,060 swing high to $29,755 low is also near the $33,000 zone. To start a decent recovery wave, the price must settle above the $33,000 level. In the stated case, the price might rise towards the $35,000 level.More Losses in BTC？　　If bitcoin fails to clear the $32,000

2022-05-10Deep Dive

Federal Reserve says stablecoins are 'prone to runs' in new financial stability report

The US Federal Reserve has spotlit the risk of market runs on stablecoins in a newly issued report.　　In a May 9 report on financial stability, the Fed emphasized stablecoins alongside certain money market funds and bonds as areas of risk in the current financial system, specifically funding.　　“Some types of money market funds (MMFs) and stablecoins remain prone to runs,” the Feds report reads. “Funding risks at domestic banks are low, but structural vulnerabilities persist at some money market funds, bond funds, and stablecoins.”　　The reports timing is notable, as TerraUSD (UST), one of the largest stablecoins and the largest algorithmic stablecoin by total supply, is struggling to maintain its peg against the US dollar amid a broad sell-off in crypto markets and global equities.　　Researchers for the Federal Reserve published work on stablecoin risks and benefits back in January. The topic has been growing in prominence in the policymaking world, particularly since the Presidents Working Group put out its report calling for new legislation to limit stablecoin risks back in November.　　That report, the Financial Stability Oversight Board may step in to supervise stablecoins if Congress does not make new law addressing the sector.　　For more Blockchain news, please download WikiBit- the Global Blockchain

2022-05-10Deep Dive

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