Crypto Guides, Knowledge & Insights

Inflation will go down, act accordingly

If nothing extraordinary happens, the Federal Reserve will raise interest rates and implement “quantitative tightening”, that is to withdraw liquidity from the market, in its fight against the high inflation rate. The question is if Fed‘s measures will be enough to push back inflation to normal levels？ According to a blogpost from analysts Bitmex Research, Fed’s actions will have a significant impact, leading to temporary lower inflation rates.　　“Inflation has now reached the highest levels since the early 1980s and the Fed will and must tighten liquidity conditions in response. Despite what some think, we believe this inevitable tightening of liquidity conditions will have a significant impact on consumer prices and the inflation rate will decline,” the post reads.　　In the long run, though, inflation will “emerge as the final victor” and the period in between will see volatile inflationary conditions. This inflation volatility could be very difficult to navigate for investors.Inflation is here and the Fed is forced to act.　　The reason behind the historically high inflation rate may be debated till the end of time, but inflation is here and the Fed is forced to act. With mid-term elections a few months away, the Fed is likely to feel pressure from

2022-02-23Deep Dive

Novatar: The Ultimate NFT Project That Is Dominating the NFT Market Now

NFTs have emerged as the biggest trend on the blockchain industry due to their massive popularity with mainstream users. This novelty form of digital assets have enabled artists and creators to mint and monetize their creations without going through complex processes associated with traditional platforms.　　Therefore, it is unsurprising that the NFT trade volume increased nearly three-fold from $2.67 billion in December 2021 to $6.86 billion in January 2022, according to data from The Block Research.　　Adoption by social media platforms Twitter, Reddit and Meta, have also accelerated the growth of NFTs. As a result, the demand for social media NFT avatars is at its peak, and Novatar, an innovative NFT project, offers a solution for everyone to own their NFTs.　　Own your digital avatar　　Novatars is a unique project that enables users to own digital avatars that can be deployed on social media, play-to-earn protocols and Metaverses. Unlike other NFT platforms, the Novatars enables users to purchase, grow, and nurture their NFT avatars.　　Its ecosystem consists of a limited collection of 25,000 baby avatars that will grow on the blockchain and transform into adults. The avatars included on Novatars are diverse and have different races, genders and sexual orientations.　　This makes it the first of

2022-02-23Deep Dive

Chinese crypto exchange Huobi plans to re-enter the U.S. market after two years

Chinese cryptocurrency exchange Huobi is planning to re-enter the U.S. market more than two years after it ceased operations to comply with regulations, as reported by CNBC. But Huobi might not launch an exchange and instead could focus on other areas such as asset management after missteps last time around, according to the companys co-founder Du Jun.　　Du Jun expects asset management to be a bigger business than exchange.　　“In 2018, we tried to enter the U.S. market, but we quickly withdrew ourselves because we didn‘t have a strong commitment to the market at that time, and we didn’t have a good management team in the U.S.,” Du told CNBC. “I expect asset management to be a bigger business than the exchange, which echoes the traditional finance market as well,” he said, adding, “I dont think the exchange is a necessary element for entering the U.S.” However, Du did not confirm which business they would launch first in its re-entry to the U.S.　　Huobi is one of the top 10 biggest cryptocurrency exchanges by trading volume globally.　　Re-entry into the back into the U.S. market could put the Chinese company in competition with companies like Nasdaq-listed Coinbase. Huobi is one of the top 10

2022-02-23Deep Dive

Is there a ban on Crypto Currency trading in South Africa?

By: Damian Okonkwo　　Well there is currently no existing ban on crypto currency trading in South Africa. There is no existing law currently proscribing anyone for trading crypto in South Africa. But the law has not declared it a legal one according to the constitution. However, given the tolerance given to it within the country, often it seems correct to assume that crypto currency trading is considered a legal business in the country. Nonetheless, the South African Reserve Bank (SARB) has issued warnings regarding the risks associated with trading in Bitcoin but has not placed any official ban on any form of cryptocurrency trading. SARS makes it clear that any earnings from these trades are subject to taxation. Cryptocurrency trading in South Africa is currently unregulated but the government is working on a new regulatory framework to control the cyber-banking industry.　　Added to this, the South African Reserve Bank (SARB) has issued a formal statement that it “does not oversee, supervise or regulate the virtual currency landscape, systems and intermediaries for effectiveness, soundness, integrity or robustness” and has issued a warning highlighting the risks associated with investing in virtual currencies such as Bitcoin and Ethereum.　　SARB notes that Bitcoin falls outside of the

2022-02-23Deep Dive

Global Blockchain Technology Market to Reach $19.9 Billion by 2026

The technology at the heart of bitcoin, blockchain technology is today gaining significant importance. Blockchain is a permanent database that keeps record of every transaction that is executed. The technology has become an integral part of business-to-business and business-to-consumer commerce, products and legal processes. In the banking, financial services and insurance sector, growth is expected to benefit from the growing adoption of blockchain in applications such as digital identities, payments, exchanges and documentation.　　Financial institutions have been spearheading innovations in the Blockchain technology space, with the sector already witness to successful implementations of use cases such as Nasdaq`s private market trading platform and Ripple`s cross border payment platform. Blockchain holds significant potential for prescription management, medical data, online shopping and other areas. The technology is likely to help companies in controlling supply chains, achieving traceability of products and maintaining auditable record of goods movement. In the post COVID-19 period, growth in the market will be led by next-generation blockchain innovations and the resulting development of new applications areas. Blockchain-based identity management systems are likely to emerge as one of the most notable innovations in the next-generation Blockchain space.　　Amid the COVID-19 crisis, the global market for Blockchain Technology estimated at US$2.5 Billion

2022-02-23Deep Dive

Indian Police Arrest 11 People in Cryptocurrency Scheme Defrauding 2,000 Investors

Indian police have arrested 11 people so far in connection with a fraudulent cryptocurrency scheme that has duped about 2,000 investors out of $5.4 million.　　11 People Arrested so Far in Cryptocurrency Scam in India　　Indian police have cracked down on a cryptocurrency investment scheme that has duped over 2,000 investors out of 40 crore rupees ($5.4 million).　　The number of arrests reached 11, seven of whom were arrested on Sunday in Maharashtras Nagpur, according to PTI.　　The main accused, Nishid Wasnik, and his wife Pragati, along with two other associates, Gajanan Mungune and Sandesh Lanjewar, were arrested one day prior in Pune. They went into hiding in March last year and had been on a run until they were arrested Saturday, the police said.　　An official described that Wasnik used to flaunt his luxurious lifestyle to lure people to invest in a firm he claimed to be dealing in ether (ETH) cryptocurrency. The official was quoted as saying:　　“He manipulated the website of the firm to show a steady rise in the value of investments while transferring money into his accounts fraudulently between 2017 and 2021.”　　The police said all 11 people were charged under IPC, Maharashtra Protection of Interest of Depositors Act and Information Technology

2022-02-23Deep Dive

El Salvador’s Tourism Sector Grows By Over 30% — Thanks To Its Great Bitcoin Experiment

The tourism industry in El Salvador has significantly improved ever since the Central American nation passed its Bitcoin Law, which paved the way for citizens to pay taxes in BTC and use the cryptocurrency as a medium of exchange.　　Tourism In El Salvador Has Soared 30% Since Bitcoin Adoption　　When El Salvador formally adopted bitcoin as a legal tender in September 2021, many people reacted skeptically. While pundits and international financial institutions were swift to criticize the tiny Latin American nation‘s supposedly utopian decision to embrace bitcoin, the cryptocurrency has not only boosted the country’s gross domestic product (GDP) but has also transformed the tourism industry.　　In a Monday interview with local media, Salvadoran Minister of Tourism Morena Valdez said the tourism sector has in fact grown by more than 30% since the country started recognizing the oldest and most valuable cryptocurrency as official currency.　　Valdez noted that the growth of this sector had transcended the expectations of the government, registering 1.4 million visitors instead of the projected 1.1 million visitors.　　The countrys income also exceeded expectations. “We had projected $800,000 in foreign exchange, but we obtained more than $1,400 million of income in foreign currency,” she posited.　　Valdez added that the embrace of bitcoin has

2022-02-23Deep Dive

Kazakhstan Shuts 13 Illegal Bitcoin Mining Farms

Kazakh Ministry of Energy has discovered and shut down 13 illegal cryptocurrency mining farms in the country. This move has landed amid the governments effort to regulate the crypto mining sector. Kazakhstan stands in the second spot with an 18.1% share in terms of bitcoin mining in the world following the United States with 35.4%. Meanwhile, Russia stands at third with a share of 11.2%.　　13 illegal BTC mining farms shut　　Kazakhstans authority of Nuclear and Energy Supervision, and Ministry of Energy with other state bodies conducted joint checks to identify digital mining objects.　　“As a result of the inspections carried out over the past 5 days, mobile teams have identified and stopped 13 mining farms with a total power consumption of 202 megawatts,” the Energy Ministry said in a statement　　“The facilities of digital mining have been found all over the country, which starts with the Karaganda region, Pavlodar, Turkestan, Akmola, Kostanay, Nur-Sultan, Almaty, and Shymkent. Self-restrictions were also introduced in the West Kazakhstan region digital mining with a total capacity of 91 MW, in the Karaganda region – 44 MW,” said the Energy Ministry　　The Kazakhstan government has alerted that work to identify and disconnect mining farms from the electrical networks will continue.

2022-02-23Deep Dive

Bitcoin loses to gold amid Ukraine crisis. What's next for the cryptocurrency?

Bitcoin dropped to a more than two-week low as fears of a possible Russian invasion of Ukraine prompted some analysts to predict the largest cryptocurrency could slide toward the key $30,000 level.　　Bitcoin dropped for a sixth straight day, touching a low of $36,372 on Tuesday after Russian President Vladimir Putin said hes recognizing two self-proclaimed separatist republics in eastern Ukraine and ordering troops there. Other cryptocurrencies also declined, with Ether off as much as 2.9% and XRP down as much as 6.7%.　　Bitcoin dipped below $40,000 level over the weekend and kept weakening as the Ukraine crisis deepened, undermining the argument that cryptocurrencies are a haven in times of geopolitical turmoil. At the same time, gold has reached its highest level since June.　　“In the globes latest maelstrom -- U.S./Russia/Ukraine -- Bitcoin, the asset purported to be the answer to every question, has quietly weakened and is notably underperforming its arch-enemy, gold,” said John Roque of 22V Research in a note on Monday.　　Roque predicted Bitcoin may fall below $30,000 -- a level it hasnt seen since July -- as traders increasingly favor gold, potentially pushing bullion to an all-time high.　　“Bitcoins inability to hold $40,000 amid heightened Ukraine tensions means $30,000 is back

2022-02-22Deep Dive

Is Canada planning to make the financial surveillance act permanent?

The financial surveillance resulting from the Emergencies Act may become a permanent fixture of Canadian society.　　Reports emanating from the country state that the government is considering making these laws permanent. If this happens, centralized crypto platforms operating in the country will become severely affected.　　Canada wants to make surveillance permanent　　Per a previous report, Canadian prime minister Justin Trudeau recently invoked the Emergencies Act to end the series of anti-vax demonstrations in the country. This law makes it possible for financial institutions to freeze individuals accounts without a court order.　　Originally meant to curb terrorism financing and similar criminal activities, the government extended it to cover protesters involved in the protest. It also expanded the law to include cryptocurrency as part of the assets that can be frozen.　　This was done to cut crypto donations to the protesters. More than 30 crypto wallets have already been frozen courtesy of the Act.　　However, it seems the government is considering making the financial surveillance permanent. According to the deputy prime minister, Chrystia Freeland, whos also the finance minister, the government is reviewing making the financial surveillance rules permanent.　　If this happens, it‘ll mean the government has the enduring power to freeze an individual’s account without obtaining a court

2022-02-22Deep Dive

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