Crypto Guides, Knowledge & Insights

Redditors share their thoughts on buying Bitcoin at all-time highs

General consensus seems to be that it‘s been all downhill both before and after Bitcoin’s recent 13th birthday.　　Many crypto enthusiasts turned to social media on Friday to voice their frustrations with the state of the crypto market. One Reddit user named imyourkingg allegedly invested 30% of his net worth into Bitcoin (BTC) a few months ago, saying:　　“I don‘t need this money for the next 5 to 10 years, but I have to admit sometimes I get so afraid of Bitcoin’s future; I mean it crashes or never reach $100k, $200k as the predictions for 2025+ says or at least $55k again lol, and I lose that money, especially when all of my friends, my mom and family call me crazy for investing on it.”　　Cryptos decentralized nature means there are no circuit breakers equivalent to the ones that exist on traditional stock exchanges. The resulting bull/bear cycles can be extreme, and difficult for the uninitiated to become accustomed to. Another Reddit user took the podium with a post titled “bought at $60k and panicking:”　　Ok, so I was very new to crypto and a victim of thanksgiving dinner, but I need help should I sell or hold. Guys, Ill HODL [Hold on

2022-01-27Deep Dive

Cybercriminals laundered over $20 million worth of crypto daily in 2021

With the cryptocurrency market recording significant growth in 2021, cybercriminals used the opportunity to launder a significant amount of money in different digital currencies.　　In 2021, cybercriminals laundered $8.6 billion translating to $23.5 million daily, data provided by Chainalysis indicates.　　The amount increased 30% from 2020s figure of $6.6 billion. Over the last five years, the highest amount of money laundered was recorded in 2019 at $10.9 billion worth of cryptocurrencies.　　Over the same period, cybercriminals have laundered a total of $33 billion. The report noted that the amount does not factor in other criminal proceeds like ransomware.　　Value of cryptocurrency laundered between 2017 and 2021. Source: Chainalysis.　　Additionally, the report highlighted that all the money laundering in 2021 accounted for just 0.05% of all cryptocurrency transaction volume.　　During the year, decentralized finance (DeFi) platforms also recorded significant growth, and the report highlights the sectors role in laundering.　　Notably, addresses linked with the theft sent almost half of their stolen funds to DeFi platforms at over $750 million worth of cryptocurrency.　　Furthermore, hackers from North Korea who have been at the center of $400 million worth of cryptocurrency hacks in 2021 used DeFi protocols for money laundering.　　Elsewhere, most scammers utilized centralized crypto exchanges to transact the ill-gotten funds.　　“However,

2022-01-27Deep Dive

HOW DOES BITCOIN IMPACT YOUR TAXES? 10 THINGS TO KNOW

Yes, it‘s that time of year again. The new year is upon us and we all need to start gathering tax documents. Fun stuff, right？ And if you’ve invested in bitcoin or sold bitcoin, then things get really fun.　　The below list of items is meant to help you understand the most critical aspects for tax filing when it comes to bitcoin. And it should be noted that this specifically covers U.S. taxes (though U.K. regulations are very similar).　　Heres what you need to know:1. BITCOIN IS TAXED AS PROPERTY　　Thats right, just like stocks, bonds or real estate. Although often used as currency, it is not treated like a currency for tax purposes. Every single time you sell, spend or exchange bitcoin, you have executed a taxable transaction. You have a capital gain or less every time you dispose of your bitcoin, unless it is by gifting it to someone.　　I know what you‘re thinking. Well, I know what I’m thinking, anyway: This necessitates a lot of detailed record keeping. In order to compute capital gains and losses, you need to know your original cost basis. Now, crypto exchanges will keep a history of all of your transactions, but they won‘t be reporting

2022-01-27Deep Dive

ADB eyes use of blockchain for cross-border securities transactions in Asia Pacific

MANILA - The Asian Development Bank on Wednesday said it launched a project to explore the possibility of directly connecting central banks and securities depositories using blockchain technology.　　Linking leading financial institutions directly using a blockchain network could cut transaction costs and settlement risks and make them more “efficient and secure,” the Manila-based lender said in a statement.　　“Working with leading blockchain companies, ADB will seek to develop ways to directly connect central banks and securities depositories in the ASEAN+3 region within a blockchain network,” it said.　　Blockchain is a decentralized technology used to record transactions and was initially used for cryptocurrencies.　　Currently, cross-border transactions in the ASEAN+3 region are processed through a global network of custodians and correspondent banks, which go through global centers in either the US or Europe, the ADB said.　　As a result, transactions take at least 2 days due to time differences and varying operating hours, it added.　　The ADB said the project would be implemented in 2 phases, a designing phase by the end of March 2022 and a prototyping phase set for the second quarter of 2022.　　Results will be discussed by the ASEAN+3 central banks and securities depositories, the lender said.　　ADB said the project is supported by its Digital

2022-01-27Deep Dive

Money laundering 0.05% of all crypto transactions in 2021: Chainalysis report

Every year since 2017, blockchain analysis company Chainalysis publishes a report focusing on money laundering and illicit transactions going through the cryptocurrency ecosystem. This years report summary shows that while the total amount of laundered money increased by 30%, only a small fraction of all transactions come from illicit activities. 　　As per the report, cybercriminals dealing in cryptocurrency share one common goal: Move their ill-gotten funds to a service where they can be kept safe from the authorities and eventually converted to cash. Thats why money laundering underpins all other forms of cryptocurrency-based crime.Nominal 30% increase from 2020　　Cybercriminals laundered $8.6 billion worth of cryptocurrency in 2021, a 30% increase from 2020, going by the amount of cryptocurrency sent from illicit addresses to addresses hosted by services.　　Total cryptocurrency laundered by year (source: Chainalysis)　　Despite this, money laundering accounted for just 0.05% of all cryptocurrency transaction volume in 2021, compared to the amount of laundered fiat currency – 5%– that makes up global GDP. This highlights that money laundering is a plague on virtually all forms of economic value transfer.　　Money laundering activity in cryptocurrency is also heavily concentrated. While billions of dollars worth of cryptocurrency moves from illicit addresses every year, most of

2022-01-27Deep Dive

Is this the end of Facebook’s Diem?

It looks as though Facebooks Diem is coming to an end before it even launched.　　Sources close to Bloomberg say the project is looking at selling its assets to reimburse investors and redeploy its engineering workforce.　　Since announcing its arrival in the summer of 2019, Libra/Diem has had the extraordinary impact of uniting both authorities and the crypto community in their opposition to it.　　Considering the Facebook group of companies has a collective user base in the billions, some saw the project as positive from an exposure point of view. Taking that into account, the Winklevoss twins said, “we need to be frenemies.”　　But summer 2019 was also when the Cambridge Analytica scandal was blowing up. The outcome saw the Federal Trade Commission fine Facebook $5 billion for its role in violating consumer privacy.　　While this isnt the first or even last scandal associated with the social media giant, Cambridge Analytica set the stage for anti-Facebook sentiment, which continues to this day.　　With that, it was always a big ask to accept Libra/Diem.Facebook Diem was always a hard sell　　Facebooks Project Libra had grand ambitions as a global payment system backed by multiple assets and currencies. Aware of the negative connotations of Facebook, the entity structure focused

2022-01-27Deep Dive

Is OpenSea planning to support Solana NFTs?

Rumors spreading on Twitter say that the worlds largest NFT marketplace, OpenSea, might be planning support for Solana-based NFTs soon. OpenSea website shows support for Solana NFTs　　Popular tech blogger, Jane Manchun Wong, released screenshots of OpenSeas website showing Solana among the supported blockchains of Ethereum, Klatyn, and Polygon. The screenshot also shows the marketplace supporting Solana wallet, Phantom.　　According to Wong, she discovered Solana references whilst reverse-engineering the marketplace website.　　Available data shows that OpenSea was responsible for over 60% of NFT trades last year. So, providing support for NFTs from another blockchain will be part of its effort to maintain its current dominance in the space. 　　In recent times, Ethereums dominance in DeFi and NFT have come under increased attack from rival blockchains like Cardano, Solana, and others. As of January 2021, Ethereum had near-total domination of the space with 95% of the market share. That figure is now around 80%, with Solana network its closest rival.OpenSea refuses to confirm rumor　　The platform has distanced itself from the screenshot, claiming it is old speculation. An OpenSea spokesperson stated that they would comment when theres something to say.　　While the platform has chosen to remain tightlipped on the matter, providing support for Solana is

2022-01-27Deep Dive

Reddit May Soon Add NFT-Based Profile Pictures

Key Takeaways　　Reddit is reportedly testing a feature that would allow users to set their profile picture to images attached to NFTs.　　The feature is currently being tested internally, according to a company spokesperson, though it may already be semi-public.　　Twitter also introduced NFT profile pictures last week.　　Social media site Reddit is testing NFT profile pictures, according to recent statements from people inside the company.NFT Profile Pictures Are Being Tested　　Reddits new feature would reportedly allow users to set their profile picture to any non-fungible token with an attached image.　　Reddit representative Tim Rathschmidt provided a statement to the news site TechCrunch today explaining the feature. He stated that the social media company is “testing the ability to use NFTs as profile pictures (avatars) and verify ownership.”　　He also called the project “a small, internal test” and said that Reddit has not decided whether to offer it more widely. TechCrunch added that the feature “hasnt been made available to public users.”　　However, Nima Owji, an app developer who is not associated with Reddit, discovered a banner promoting the feature earlier this week, meaning that the feature may already be semi-public.　　Incidentally, Twitter added support for NFT profile pictures last week. Much like Reddit, Twitter is testing the feature

2022-01-27Deep Dive

Belarus to Remain Crypto-Friendly as Ally Russia Mulls Blanket Ban

Authorities in Belarus have no intentions to adopt stricter rules for the country‘s crypto space. That’s despite neighboring Russia, a close partner in many areas, considering a blanket ban on а number of activities related to cryptocurrencies as suggested by the central bank in Moscow.　　Belarus to Keep Favorable Crypto Regulations　　Officials in Belarus do not plan to tighten the countrys regulatory framework for the crypto sector, a statement has indicated. This comes as Russia, which is a close economic ally, is mulling over a proposal to impose harsh restrictions on a range of crypto-related operations, including mining, trading, and investing.　　“Restrictive changes to the existing regulatory model are not currently foreseen,” the Belarus Hi-Tech Park (HTP) said in correspondence with BNN Bloomberg. The HTP, often called “Belarusian Silicon Valley”, manages a special legal regime established to facilitate the development of the countrys IT industry, including crypto business.　　Minsk legalized crypto activities such as mining and exchange with a decree signed by President Alexander Lukashenko which went into force in March 2018. It introduced tax breaks and other incentives for companies working with digital assets.　　In April 2019, the Belarusian leader suggested that bitcoin farms could be built at the nuclear power plant in Grodno

2022-01-27Deep Dive

Putin urges government and the Russian Central Bank to find consensus on crypto

Russian President Vladimir Putin has requested that the nations government and Central Bank come to an agreement on cryptocurrencies.　　At a videoconference meeting with members of the government on January 26, Putin said that he was acquainted with the discussions around cryptocurrency legislation.　　“The Central Bank does not stand in our way of technological progress and is making the necessary efforts to introduce the latest technologies into this area of activity,” the Russian head of state said.　　According to the Russian President, the regulators stance is motivated by the fact that expansion of this sort of business poses risks to Russians, given the extreme volatility of cryptocurrencies.　　“Although, of course, we have certain competitive advantages here, especially in the so-called mining, referring to the electricity surplus and well-trained, available personnel in the country,” Putin declared.　　Russia needs to agree on the issue　　In addition, the President continued by stating that he had urged the administration and the Central Bank to reach an agreement on this matter and report back to him on the outcome.　　The Bank of Russia published a report last week which called for a ban on cryptocurrency mining in the nation, the use of the Russian financial market‘s infrastructure for cryptocurrency transactions, and financial

2022-01-27Deep Dive

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