Crypto Guides, Knowledge & Insights

Mike Novogratz: Bitcoin Will Be Digital Gold for 3,000 Years But Ethereum Can Surpass it

While outlining the differences between Bitcoin and Ethereum, Mike Novogratz suggested that the latter might actually surpass BTC in terms of becoming the largest digital asset.　　During a recent interview, the CEO of Galaxy Digital also urged the cryptocurrency community to enhance its efforts to educate lawmakers about Bitcoin and the entire industry.　　Can ETH Surpass BTC？　　The topic of the eventual “flippening” – an event that will see ether surpassing bitcoin as the world‘s largest cryptocurrency by market cap – emerged a few years ago. At the time, ETH’s value against the dollar was rising rapidly, while BTC had started to retrace.　　Consequently, fans of the current second-largest digital asset believed such a change is inevitable. Although ETH closed the gap to BTC during this years bull market as well at one point, it has failed to surpass its biggest brother so far.　　Speaking to Bloomberg, the CEO of Galaxy Digital hinted that such a scenario is still possible due to the massive growth of the network behind ether. He commented, “I think Ethereum may even become the biggest cryptocurrency one day,” but it will have a “very different” use case than BTC.　　Ethereums blockchain could be used “as the base level of trust –

2021-07-02Deep Dive

Congressman Bill Foster Wants Government To Have Power To Reverse Crypto Transactions

A law should be put in place to allow federal courts to identify cryptocurrency owners and reverse transactions where necessary, according to Democratic Rep. Bill Foster of Illinois, the co-chair of the House blockchain caucus. He said the law should allow courts to establish the real identity of a crypto wallet owner when needful, through a “very heavily guarded key.”　　Speaking in a Tuesday Axios virtual event, Foster said the pseudo-anonymous nature of cryptocurrencies should empower regulators to check if transactions are fraudulent. He said this could help protect investors, citizens, and the government against crime and ransomware attacks.　　“I‘ve just said about three things there that will drive the crypto purists berserk, like the trusted third party and so on. But in fact, there’s not a technological alternative that I‘m aware of,” Foster said. “For most people, if they’re going to have a big part of their net worth tied up in crypto assets, theyre going to want to have that security blanket of a trusted third party that can solve the problem.”　　According to Foster, cryptocurrencies must comply with federal regulations and laws if they are to become mainstream. Otherwise, they will always be associated with criminal activities.　　“We‘re going to have

2021-07-02Deep Dive

Messari Report: USDC Is The Most Dominant Ethereum-Backed Stablecoin

The growth of USDC in 2021 is more tremendous than that of Tether. The Ethereum-based USDC stablecoin is gaining immense traction as the experts deem it as the most dominant asset.　　According to the analytics research, there is now an increase in the demand for USDC due to abrupt popularity in the DeFi ecosystem. Such demand has positioned USD Coin to bag more market shares in the crypto space.　　From what Ryan Watkins, a credible researcher, predicted, the stablecoin share for Tether on Ethereum could dip below 50%. In addition, Watkins revealed that more than half of USDCs total supply is now in smart contracts.　　The equivalent value for this USD Coin supply is about $12.5 billion. According to Messari, CoinMetrics data estimates show that USDCs stablecoin supply is over 40% on Ethereum.　　In his tweet, Watkins said that the next few weeks might not favor USDT‘s stablecoin supply on Ethereum. He envisages a dip below 50% for the first time for USDT’s stablecoin supply share.　　On the other hand, he sees USD Coin becoming the prepotent Ethereum stablecoin because of its high reputation in the DeFi ecosystem.　　More so, Watkins further acknowledges:　　“Although this percentage is not as high as DAI, USDC leads by a wide

2021-07-02Deep Dive

JPMorgan report: Eth2 could kick-start $40B staking industry by 2025

The launch of the energy efficient Ethereum 2.0 network will popularize the proof-of-stake consensus mechanism and make staking yields a more attractive source of income for both institutional and retail investors according to a new JPMorgan report.　　The authors estimate that holders of staked coins on PoS blockchains are currently generating some $9 billion in revenue annually from their staked holdings.　　When Ethereum completes its transition from proof-of-work (PoW) to proof-of-stake (PoS) next year, the analysts expect payouts will more-than-double to $20 billion. They project staking yields across the blockchain industry to double again to $40 billion by 2025.　　The two senior analysts also compared the financial incentives with staked cryptocurrencie to cash, cash equivalents, and fixed income instruments like U.S. Treasury bonds:　　“Yield earned through staking can mitigate the opportunity cost of owning cryptocurrencies versus other investments in other asset classes such as US dollars, US Treasuries, or money market funds in which investments generate some positive nominal yield. In fact, in the current zero rate environment, we see the yields as an incentive to invest.”　　Among the top ten cryptocurrencies by staked capitalization, annual staking rewards range from the 3% range to as high as 13%, according to StakingRewards. Although these are nominal

2021-07-02Deep Dive

Billionaire traders Point72 and Soros pile into Bitcoin. Some call it a ‘top’

Billionaire fund Soros Fund Management, owned by George Soros, and trading fund Point72 separately revealed their moves into the Bitcoin space yesterday, becoming the latest entrants in an expanding list of institutional funds interested in cryptocurrencies.　　Inroads into crypto　　Soros, 90, who famously shorted the British Pound in 1992 and made a billion dollars on the trade alone, was known in his heyday as one of the best currency traders in the world.　　And his fund‘s now looking to make a similar impact on the Bitcoin market. Fund CIO Dawn Fitzpatrick is said to have approved traders to take BTC positions in the past few weeks, coinciding with the gradual fall of the world’s largest cryptocurrency.　　The move came months after Fitzpatrick confirmed her interest in the space. “There‘s a real fear of debasing fiat currencies. Bitcoin, I don’t think it‘s a currency, I think it’s a commodity that‘s easily stored and transferable, with a finite supply,” she said in March, adding the market was reaching an ’inflection point.　　Elsewhere, Point72 is seeking a head of cryptocurrencies. The fund manages billions of dollars across several asset classes but was yet to dip its toes in the burgeoning crypto market. Until now.　　The fund made no comments

2021-07-02Deep Dive

Must-read: Argot in Cryptocurrency Trading!

Tricks played in cryptocurrency trading are springing up like mushrooms. Traders are often deceived by slang that seems to be professional and convincing. As such, argot is introduced herein for your reference.　　1. Google is our information security partner: We use Google authenticator actually.　　2. We have a deep partnership with Facebook to carry out global community operations: We boast a Facebook Fan Page.　　3. We use the worlds top security standards for asymmetric encryption: Our website starts with https.　　4. We embrace an international team: We are acquainted with foreigners.　　5. We use the BVI architecture: You cannot find the information on our actual controller.　　6. We are extending to the Southeast Asian market: The founder just visited Bangkok and Ho Chi Minh City (HCMC).　　7. We have a professional team for market value management: We manipulate the prices of digital assets.　　8. We pay more attention to long-term value: Prices of digital currencies cannot rise in the short run.　　9. We focus more on ecological construction than technology: We lack technological competence.　　10. This is a project based on Ethereum network technology: We are so technologically incompetent that we directly use Ethereum to issue coins.　　11. Our project has held a roadshow in the financial center of Singapore: The

2021-07-01Deep Dive

What is the practicality of El Salvador adopting a national digital currency?

El Salvadors congress voted to accept the cryptocurrency and won a supermajority of 62 out of 84 votes.　　Starting in September, El Salvador will soon have two official currencies: the U.S. dollar (USD) and bitcoin (BTC). In what is likely an unprecedented move for any nation worldwide, both USD and BTC can be used interchangeably within all government transactions — and this will likely make the nation a world leader in an increasingly digital era.　　Why Did El Salvador Move to Cryptocurrency？　　According to a tweet from president Bukele, moving to cryptocurrency would promote “financial inclusion, investment, tourism, innovation, and economic development for our country.”　　And he does have some facts and figures to support his claim. Some 70% of El Salvadorians are unbanked, meaning they dont have even a basic bank account. This means that 70% of citizens will always be one step behind, no matter how hard they try, and will have even more challenges accumulating wealth and saving what they already have.　　El Salvador also relies heavily on money sent back to the country from migrants. For example, a man working in the United States sending a portion of his paycheck to his family in El Salvador, or a woman working in

2021-07-01Deep Dive

Adakah MATIC bersedia untuk $1.50?

Ini telah menghasilkan pembentukan segitiga menurun. Bahagian bawah ditandakan pada $1.011, dan garis atas menurun pada $1.0980. Sekiranya MATIC ditutup pada harga semasa, ia akan menandakan penamat hari semalam dan dianggap sebagai penembusan.　　Tambahan pula, bahagian bawah juga mendapat daripada support pada harga $0.9890. Oleh itu, MATIC berada dalam situasi yang berbahaya. Sekiranya penembusan kenaikan ditolak, sokongan Utama tidak jauh di bawah.　　Atas dasar itu, Polygon berjalan dengan tali yang ketat. Penutupan di atas garis tren akan melihat harga melonjak ke arah purata bergerak 50 hari pada $1.4940.　　Buat masa ini, tindakan harga menunjukkan yang pertama. Walau bagaimanapun, masih banyak permainan yang tersisa untuk dimainkan hari ini, dan sehingga lilin harian dimuktamadkan, pelarian tidak akan disahkan.

2021-07-01Deep Dive

Permintaan Terhadap BTC & ETH Semakin Lemah

Laporan itu menyatakan bahawa salah satu faktor terbesar dalam naratif institusi adalah aliran aset kripto yang sehala kepada dana GBTC Grayscale. Para pelabur cuba untuk memanfaatkan abritaj yang tinggi dikecapi pada tahun 2020 dan awal 2021.　　Bitcoin masih lagi didagangkan sideway pada minggu ini ditambah dengan para pelabur mula melepaskan keuntungan sebelumnya dalam pasaran dengan menjualan pelaburan mereka ketika pasran ‘downtrend’.　　Sejak pertengahan Mei, nilai aset bersih telah berkurangan sebanyak -21.23%. Potongan harga ini terus meningkat berikutan penjualan dalam pasaran. Glassnode juga melihat aliran keluar dari dua institusi dan BTC.　　Secara rumusan, laporan menyatakan bahawa premium GBTC, aliran keluar bersih dari ETF dan Coibanse dapat disimpulkan bahawa permintaan BTC dari institusi semakin lemah sejak seminggu lalu.　　Jumlah aliran keluar Bitcoin bagi semua dana telah merosot menjadi hanya $ 1.3 juta, turun dari $ 89 juta untuk minggu sebelumnya. Namun, terdapat aliran masuk yang sedikit untuk Grayscale. Hal ini menunjukkan sentimen bercampur untuk pasaran Bitcoin dalam kalangan pelabur.

2021-07-01Deep Dive

Mike Novogratz: Ethereum May Become the Biggest Cryptocurrency

Galaxy Digital CEO Mike Novogratz told Bloomberg that Ethereum could potentially flip Bitcoin one day during his June 30 interview.　　I think Ethereum, most likely, become the second-biggest or, maybe, the biggest cryptocurrency one day.　　He mentions that Ethereum has “a very different use case” compared to the flagship cryptocurrency.　　While Bitcoin is “a beautifully designed” store of value, its biggest competitor can serve as the base layer for Web 3.0.　　However, he also points out that Ethereum is facing tough competition from the likes of Solana, Terra, and other ecosystems.　　The crypto tycoon predicts that things that are going to be built on top of Ethereum or other platforms are going to be mind-blowing in the next five years.　　Still early　　When asked about whether or not his clients feel angsty about the ongoing market correction, Novogratz replied that the crypto revolution is still in its early stages.　　Hence, he claims that nobody actually thinks that crypto is going away.　　Novogratz believes that regulation is going to make the industry even stronger.　　That said, he also states that the cryptocurrency community had to do a better job of educating lawmakers following yesterdays congressional hearing.

2021-07-01Deep Dive

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