Crypto Guides, Knowledge & Insights

Coinbase Pushes for Single Crypto Regulator

Crypto exchange Coinbase has been meeting with a number of regulators to convince them that the U.S. should have just one federal regulator overseeing the crypto sector. Currently, there is a variety of different regulators in the U.S., CEO Brian Armstrong explained, noting that Coinbase has “53 regulators in just one country, the United States.”　　Coinbase Wants One Regulator in the US　　The Nasdaq-listed cryptocurrency exchange Coinbase is pushing for the U.S. to have just one crypto regulator.　　“We‘ve met with a number of different regulators out there … on a regular basis … I had a meeting last week with the chairman of the SEC, Chair [Gary] Gensler, which I think was very productive,” Coinbase CEO Brian Armstrong said during the company’s Q3 earnings call last week.　　“There‘s a variety of different regulators in the United States … There’s the CFTC [Commodity Futures Trading Commission], the SEC [Securities and Exchange Commission], the Treasury. And then, of course, we have state regulators as well on money transmission licenses and lending licenses,” he added.　　Noting that Coinbase serves customers in more than 100 countries, Armstrong opined: Its kind of amazing that we, Coinbase, have 53 regulators in just one country, the United States.　　The CEO proceeded to

2021-11-15Deep Dive

Indian Government Considering Banning Misleading Crypto Ads

The Indian government is seeking to ban cryptocurrency companies from running reckless ad campaigns that promise big returns to investors, according to a memo that summarizes a Saturday meeting between industry participants and Prime Minister Narendra Modi.　　The lack of transparency in advertising could potentially hurt young investors, according to the memo.　　As of recently, several A-list Bollywood stars of the likes of Amitabh Bachchan started promoting cryptocurrencies and launched their own non-fungible tokens, following the example of western celebrities.　　High-profile sports events have been inundated with crypto ads pushed by CoinDCX and other major Indian crypto players.　　Irresponsible crypto advertising has emerged as a global problem. In May, the U.K.s Advertising Standards Authority (ASA) banned a misleading Bitcoin ad that was plastered on London Underground by the Luna cryptocurrency exchange.　　India will reportedly take a “progressive” approach to regulating the crypto market, according to Asia News International:　　“The government is cognizant of the fact that this is an evolving technology, it will keep a close watch and take proactive steps. There was consensus also that the steps taken in this field by the government will be progressive and forward-looking.”　　As reported by U.Today, Shaktikanta Das, governor of the Reserve Bank of India (RBI), once again highlighted

2021-11-15Deep Dive

Adapt or die: Venture capital vs. crypto, blockchain, DAOs and Web 3.0

We have seen a steep adoption of crypto-based systems this year, including decentralized finance (DeFi) applications, nonfungible tokens (NFTs) such as digital art, crypto-centric gaming, and increased adoption of cryptocurrencies as investment and payment tools. One of the more recent developments is the emergence of decentralized autonomous organizations (DAOs).　　DAOs have existed since 2016, when The DAO organization, a new form of investment vehicle that attracted a sizable portion of Ethereum (ETH) tokens, raised more than $150 million at the time. Many saw The DAO as the ultimate form of human coordination. Yet, due to a reentrancy exploit, hackers stole $50 million of the organizations funds.　　Despite the initial setback, DAOs have seen a second birth in the past months. This was primarily enabled through more mature frameworks and tools, as well as reduced friction in setting up a DAO and engaging with DAOs. Some early experiments such as DXdao, DAOStacks Genesis DAO, or MolochDAO showed the way for a new wave of decentralized organizations. Today, there are DAOs in different forms and shapes, ranging from big to small, used to steward ecosystems, collectively buying NFTs or contributing to social causes or movements.　　Beyond that, DAOs will likely be the most transformational change

2021-11-15Deep Dive

"Dogecoin Killer" Shiba Inu Listed by Gemini

Gemini, a popular cryptocurrency exchange that was launched by Cameron and Tyler Winklevoss in 2015, has added support for the Shiba Inu (SHIB) cryptocurrency.　　Apart from the second-largest meme coin, the New York-headquartered trading platform has also listed a slew of tokens from the decentralized finance ecosystem, including Quant (QNT), Fetch AI (FET) and Radicle (RAD).　　The Winklevii-owned exchange, which is known for its emphasis on regulatory compliance, embraced Dogecoin in May, becoming one of the latest major exchanges to jump into the canine mania.　　Coinbase and Binance.US listed Shiba Inu in October.　　Earlier this week, SHIB also became available on the retail-friendly app of Indias first cryptocurrency unicorn.　　Kraken and Robinhood remain on the sidelines　　In the meantime, Kraken hasnt posted any updates about whether or not it plans to list the Shiba Inu cryptocurrency.　　As reported by U.Today, the exchange claimed that it would add Shiba Inu in October, but it then backtracked on its promise, riling up the so-called “SHIB Army.”　　Robinhood also keeps dragging its feet about adding the canine cryptocurrency despite the petition to list the token reaching an eye-watering 531,000 signatures.　　While praising the Shiba Inu community, Robinhood Crypto COO Christine Brown said that the short-term gain from adding such meme coins might

2021-11-15Deep Dive

Bitcoin May Be The Best Inflation Hedge Around, Cites 99.99% Deflation: Bloomberg

Bloomberg recently found that investors are protecting themselves from fears of rising inflation by using Bitcoin. In a tweet, the company even called it “the best inflation hedge around” depending on how one looks at it.　　Bitcoin Beats Inflation　　After crunching the numbers, Bloomberg Opinions John Authers found that Bitcoin has achieved 99.996% deflation over the past 10 years. What cost one Bitcoin in 2011 now costs just 0.004% of a Bitcoin today. Meanwhile, the CPI has risen 28% in dollars during that time.　　Just days ago, Bitcoin surged to a new all-time following the release of US inflation numbers for October. Since last year, the CPI has risen by 6.2% across the country – the fastest rise since 1990. What‘s more, when using the 1980’s measure for CPI, inflation has increased by closer to 15%.　　Bloomberg‘s economists estimate that roughly half of Bitcoin’s recent price surge has been driven by inflation fears. The other half is due to momentum trading:　　“Our model shows that for Bitcoin, the importance of inflation and hedging against uncertainty become more important drivers over time, accounting for 50% of price moves in the latest cycle relative to 20% in 2017,” said Björn van Roye and Tom Orlik.　　Why Is Bitcoin

2021-11-15Deep Dive

Interest Rates: Why the Era of Cheap Money Is Finally Ending

The Bank of England was widely expected to slightly increase its official bank rate on November 4, but it decided to stick to the all-time low of 0.1%. However, the bank has made it clear that a rise will soon be needed, and the recent increases in mortgage rates indicate that lenders agree. So why the decision to hold off？　　The Bank of England is well aware of the distress that higher rates cause for borrowers and, in particular, for the biggest borrower in the land: the UK government. At the current level of national debt, roughly GBP 2trn (USD 2.69trn), every rise in rates by one percentage point pushes up the interest paid by the government on its bonds by GBP 20 billion per year over the long term.　　Higher rates also have a dampening effect on the prices of property and financial assets such as shares. Indeed, this is one way in which monetary policy is believed to work: if people feel less wealthy, they spend less and this relieves the pressure on inflation.　　On the other hand, whats bad for borrowers is good for savers. As rates rise, bank deposits will be better rewarded and even the finances of our

2021-11-15Deep Dive

Crypto Adoption in 2022: What to Expect?

The crypto market is having a strong end to 2021, with various cryptoassets -- including bitcoin (BTC) -- hitting new all-time highs. The question is: will we continue seeing increasing adoption of cryptocurrencies among investors, institutions, and even governments next year？　　For most analysts and observers, 2022 will indeed be yet another year of increasing adoption of cryptocurrency, both in terms of its potential as an investment vehicle and inflation hedge, and also in terms of its utility for payments. 　　Of course, 2022 will not all be plain sailing for cryptocurrency when it comes to adoption, with governmental rejection of crypto remaining just as (if not more) likely in some nations as adoption. That said, with the market showing renewed signs of bullishness as we write this, its likely that the overall trend will be towards more adoption rather than less.　　2021: How accurate were predictions last year？　　Back in 2020, industry players predicted that bitcoin would see increasing investment interest from institutions in particular. This is indeed what happened, with the current bull market being largely driven by institutional investors.　　They predicted the growth in Ethereum (ETH) and decentralized finance (DeFi), with the latter (in terms of total value locked in) growing, per

2021-11-15Deep Dive

Bollywood Has Shown Appetite For Crypto Endorsement

Cryptocurrency has not just caught the imagination of an average Indian keeping a tab on the index rising gradually from some corner of the country but also the A-listers of Bollywood sitting in the financial hub Mumbai. And these film stars are interested in more than just cryptocurrency coins. While some have launched their own non-fungible tokens (NFTs), others are planning to tap the emerging market. Two of the crypto exchanges, which facilitate trading in these digital assets, recently roped in actors Amitabh Bachchan and Ranveer Singh to add their weight behind the industry.　　While these stars have provided weight and raised the trust level in the emerging industry, have they themselves invested in cryptocurrency coins？　　None of these 2 actors have overtly mentioned about their own cryptocurrency investment so far. Even if they have invested, they have not disclosed it to the public so far. Bollywood stars disclosing their crypto investment would go a long way in raising the public trust in assets they are endorsing for the very same purpose.　　Earlier this year, Amitabh Bachchan had launched his NFT collectibles, which included autographed vintage posters of himself, a recital of his fathers famous poem Madhushala, and other items associated with his

2021-11-15Deep Dive

Bitcoin ATM Stolen During Raid In Barcelona

Crypto-related crimes have been on the rise in Spain in recent times. The most recent incident is the case of a stolen Bitcoin ATM in Barcelona.　　Bitcoin ATMs are kiosks that allow a person to purchase Bitcoin and other cryptocurrencies by using cash or debit card. According to this website, Spain has the highest number of crypto ATMs in Europe. With 185 ATMs, it is also the fourth highest in the world.Bitcoin ATM Theft　　Local news reported on Friday that the Spanish police are investigating the theft of a Bitcoin ATM. The thieves stole the machine in a raid on a cryptocurrency exchange outlet in a wealthy Barcelona neighborhood.　　The police force of Catalonia, Mossos dEsquadra, said that the ATM theft happened around 3 a.m. They however did not provide any further information on the case to avoid hindering the investigation.　　According to the news agency, police sources said thieves took the ATM from a shop on Beethoven street in the Sarria area. The area houses a branch of Grayscale Bitcoin Trust (GBTC). GBTC reportedly declined to comment, and the police also refused to confirm the exact location of the robbery.　　An unverified video that surfaced showed an SUV crashing into the GBTC storefront. Afterward,

2021-11-14Deep Dive

How blockchain is disrupting the cannabis industry

Blockchain and cannabis share one main thing in common: they are both disruptive trends that are shifting how business is done around the world, and especially in the United States. Where legal producers of cannabis are concerned, blockchain can absolutely turn an industry around that has been stumped by a surprisingly slow growth curve, toward more profits in the future. This does not just apply to the cultivators, retailers and producers will also be affected by the impact that blockchain can have on an industry.What are the challenges in the cannabis industry？　　Since the legalization of recreational cannabis across many states in the U.S. and Canada, the move from illegal to legal products hasnt happened as quickly as expected. This has frustrated those who entered the market early expecting huge demand.　　Depending on your view of the industry, it might not be surprising that most cannabis is still sold through illegal channels, with 80% of volume and 60% of value coming through illegal channels in Canada. There are a number of reasons why the growth of legal cannabis hasnt been as fast as anticipated:　　Small number of retail stores　　Increased price of legal products　　Smaller selection of products　　Supply shortages in-store and online　　Apprehensiveness toward government-regulated product　　As

2021-11-14Deep Dive