Crypto Guides, Knowledge & Insights

Popular Trader Explains Why Ethereum Will Pay A Hefty Price For Early Design Mistakes

Bitcoin YouTuber, trader, and analyst “BTC Jack Sparrow” has dished out his two cents on what he believes the Ethereum network has become.　　The popular trader who has garnered over 190,000 followers on Twitter and famous for letting the cryptocurrency community in on his cryptocurrency price analysis has explained very recently, why he believes the Ethereum network has flopped.　　Is Ethereum a Vaporware network？　　Referring to the possibility of the Ethereum network being “Vaporware”, a term used to describe projects that “have been advertised but is not yet available to buy, either because it is only a concept or because it is still being written or designed,” Sparrow opines that it wont be too long before Ethereum is kicked out of the cryptocurrency industry by Bitcoin or any other leading project.　　In his tweet, he compares the network to web service provider Yahoo, which quickly fell off after its founders made what investors refer to as “poor business choices”, causing rival platform Google to steal the spotlight and take the center stage. Hinting that Ethereum is very likely to follow the same path, he wrote:　　“Chances ETH is vaporware are high. Either BTC second layer takes it out of business or other protocols take over

2021-06-03Deep Dive

Pre-2019 Bitcoins now make up just 44% of the BTC active supply

Bitcoin (BTC) is less active than at any time this year, new data shows as traders stubbornly refuse to sell.　　One metric from on-chain monitoring resource Glassnode reveals that the Bitcoin supply is becoming less and less available despite lower prices.　　“Spooked” hodlers cling to BTC　　On June 2, Bitcoins active supply hit a five-month low of 44.5%.　　Bitcoin two-year active supply vs. BTC/USD chart. Source: Glassnode/ Twitter　　The number measures coins which have moved in the past two years or earlier — and last time it measured that low, BTC/USD traded at around $22,000.　　The figure shows just how unattractive the idea of selling Bitcoin at current prices is to investors who purchased up until the 2019 bull run. As Cointelegraph reported, 2017 buyers already represent a strong cohort of “hodlers of last resort.”　　This goes some way to shoring up morale over future price action — as various indicators including sentiment measure the Crypto Fear & Greed Index show, a $36,000 Bitcoin appears undervalued.　　Nonetheless, the May sell-off ushered in a surge of newly-liquid coins, something which managed to buck a two-year accumulation trend.　　“The magnitude of accumulation over the past two years is remarkable, however, the scale of the sell-pressure in May is also notable,” Glassnode

2021-06-02Deep Dive

Binance CEO CZ Slams Tesla And Elon Musk, Bares It All Out

Elon Musk may continue to deal with a lot of heat from the Bitcoin community, at least until community members are tired of proving that Bitcoins level of energy consumption does not compare to the level of energy that many traditional companies use.　　Binance CEO On Teslas Energy Consumption Level　　Over the past week, many Bitcoin proponents expressed their distaste in Elon Musks change of attitude towards Bitcoin, a currency which he once agreed with Twitters Jack Dorsey, to be one that incentivized renewable energy.　　In a bid to prove that Musk‘s energy concern for Bitcoin’s energy use is unnecessary, the CEO of Binance, who had previously only made lighthearted comments about Musk‘s stances, implying that he may have just been misinformed, is starting to side with the large chunk of Bitcoin proponents who believe that the billionaire might just be blind spotting the asset’s potential.　　In a tweet that is making round on the Crypto-Twitter community, CZ is quoted saying:“When you use electricity to run cars, it‘s environmentally friendly. When you use electricity to run the most efficient financial networks in the world, it’s an environmental concern.”　　As CZ points the bias in Musk‘s view by mirroring down the normalization of Tesla’s energy use

2021-06-02Deep Dive

Dogecoin and Cardano Added as Payment Methods on LocalBitcoins

One of the largest peer-to-peer cryptocurrency marketplaces, LocalBitcoins, has expanded its portfolio of available payment methods with the inclusion of Cardano (ADA), Dogecoin (ADA), Polkadot (DOT), Chainlink (LINK), and more.　　LocalBitcoins Adds More Crypto Payment Methods　　Founded in 2012, LocalBitcoins acts like a cryptocurrency peer-to-peer marketplace. The platform, based in Helsinki, Finland, facilitates over-the-counter trading of local currency for bitcoins and, from recently – other digital assets.　　The company announced the addition of several new virtual assets. Namely, those include the two most widely utilized stablecoins – Tether (USDT) and USD Coin (USDC) and some of the most popular tokens lately – Polkadot (DOT), Cardano (ADA), Bitcoin Cash (BCH), Chainlink (LINK), and Dogecoin (DOGE).　　The firms statement outlined the significant demand for these coins coming from users.　　“You asked, we delivered! Some highly anticipated altcoins have now been added as payment methods!”　　Additionally, LocalBitcoins has added new payment processors, including PaySera, PAYSEND, Vodafone Cash, Airtel Money, and more.　　$136K Stolen From a Scam on LocalBitcoins　　Being a P2P crypto marketplace, LocalBitcoins has become largely popular in countries with struggling economies that lack adequate payment methods. One of them is Venezuela, as the BTC trading volume on the platform has been among the highest for consecutive years.　　However, the growing

2021-06-02Deep Dive

Introduction of Block Chain Ecosystem: Standard Process of Digital Currency Transactions

The prices of bitcoins (BTC) have skyrocketed from USD 10,000 to more than USD 60,000 while those of Ethereum (ETH) have surged from around USD 1,000 to over USD 4,000 from late 2020. Owing to such rapid growth, cryptocurrencies have become a real hit when it comes to investment in recent years. At the same time, numerous frauds that take “digital currency transactions” as a disguise are springing up.　　WikiBit introduces to you the trading process of digital money, aiming to help you increase the ability to distinguish good from bad. Equipped with WikiBits introduction, you can make proper decisions based on your knowledge when facing a lot of hype around some projects or conducting money transfers.　　The process of transactions is presented as follows:　　Users with the requirement of trading should open their accounts at decentralized exchanges (DEXs) at first.　　Users can conduct money transfer of digital assets through the addresses of their online wallets or paper wallets in the wake of obtaining their trading accounts and completing some basic account-related settings.　　The whole process is not finished until transactions are recorded in a public distributed ledger that is dubbed as a blockchain.　　This transaction flow mentioned above is characterized by decentralization and transparency, leading

2021-06-02Deep Dive

Miners on the Move: China’s Crypto Mining Losses May Be Kazakhstan’s Gain

Crypto miners fleeing Chinas latest mining-focused crypto crackdown may turn to a nearby nation in a bid to continue doing business – with Kazakhstan increasingly looking set to provide a new home for those looking to set up shop outside Mainland China.　　Per Kaktus Media, the number of mining operations in the country is “increasing,” while mining “entrepreneurs are getting richer” – with the state happy to take a share of the profits.　　Last year, Kazakhstans Economy Ministry announced that the nation would begin taxing miners at a rate of 15% in a bid to help it mitigate the economic fallout of the COVID-19 pandemic.　　And the media outlet noted that according to Ministry of Digital Development figures, the crypto mining industry in Kazakhstan is now worth some USD 216m - USD 300m per year – although this only takes into account the revenues of large-scale industrial miners. With smaller-scale setups becoming more widespread, the real number could be higher – particularly if reports of Chinese mining operations relocation to the country are true.　　Quoting token data and rating agency TokenInsight data, the media outlet reported that Kazakhstan is one of the worlds top five mining countries, with only China, the USA, and Russia

2021-06-02Deep Dive

Belt Finance Unveils DeFi Hack Compensation Plan

Following a $6.2 million dollar flash loan exploit over the weekend, decentralize finance (DeFi) protocol Belt Finance has unveiled a compensation plan for the victims.　　The latest Binance Smart Chain clone to get attacked was Belt Finance when it lost $6.2 million in a series of transactions that manipulated the system. The Rekt Blog, which released a post mortem on the exploit called it “another notch to the now infamous flash loan exploit season on the BSC.”　　Belt Finance has now released a compensation plan, primarily for users who have had their funds in the 4Belt pool or beltBUSD vault, which were the targets of the attack.　　The second group to be compensated is BELT token holders, it added since the price dumped 54% in the wake of the incursion.　　“The price of the BELT token is a direct reflection of the value of Belt Finance as a protocol, and while BELT may not be a part of our 4Belt pool, it is representative of the faith our users have vested in us.”　　Belt token airdrops 　　Belt Finance uses an optimal yield aggregator to offer passive yield generation to depositors via a number of strategies using other BSC protocols such as Elipsis, Venus, and Alpaca.　　The

2021-06-02Deep Dive

Turkey's Central Bank Weighs In on Bitcoin Energy Concerns as Regulation Looms

In brief　　Turkey awaits new regulations on crypto from its policy makers.　　A recent report by the countrys central bank outlined various concerns that regulators are considering.　　The bank highlighted the environmental impact of Bitcoin for the first time.　　The Central Bank of Turkey, which is currently working with the other government agencies on the countrys forthcoming crypto regulations, has submitted a report to the Turkish Parliament detailing its views on crypto.　　And, in a first for a Turkish government agency, the central bank is sounding the alarm regarding the environmental impact of Bitcoin, echoing many of the same concerns recently expressed by the government of China.　　The report, succinctly titled “May 2021,” isn‘t publicly available but was obtained by local media Bloomberg HT. It was addressed to the Parliamentary Commission on Online Environments, a parliamentary body that’s tasked with legislation around anything to do with the internet—including crypto. Turkey is currently in the process of establishing regulations on crypto assets. Crypto as a medium of payment is already banned, and the government has ruled out banning crypto assets entirely.　　The central banks report offers a deep dive into the history and nature of cryptocurrency and lists several risks commonly associated with Bitcoin and other cryptocurrencies.

2021-06-02Deep Dive

Argentinians turn to Bitcoin mining to support livelihood amidst failing economy

In the heart of an economic crisis, ultra-low utility costs are enabling Argentinians to bank on mining Bitcoin (BTC) as foreign miners head for their piece of the electricity cake, local reports said.　　Not only locals are taking advantage of the situation as Bitfarms, a Canadian Bitcoin mining company, announced it is opening a new mining facility in the country.　　Staple recipe　　Devaluations, defaults, hyperinflation, foreign-exchange controls, and a pinch of ultra-cheap electricity proved to be the basic ingredients for boosting local mining operations.　　Local miners are benefiting from Argentinas long-standing residential electricity subsidies, a policy intended to win political votes but causing tension within the ruling Peronist coalition.　　“Even after Bitcoins price correction, the cost of electricity for anyone mining from their house is still a fraction of the total revenue generated,” said Nicolas Bourbon, a miner from Buenos Aires, in a note to Bloomberg.　　As capital controls limit individuals to legally convert merely $200 per month, the inflation is racing at roughly 50% annually, fueling the demand for any store of value. Panic for hedging into non-peso assets keeps pushing the value of Bitcoin in unofficial markets, only adding to the plethora of reasons to mine crypto.　　Canadian miners seizing the opportunity　　Bitfarms secured a deal

2021-06-02Deep Dive

PlanB confirms Bitcoin ‘S2FX’ model still on track for $288,000

Anonymous yet wildly popular crypto trader “PlanB,”who created the Bitcoin stock-to-flow model (S2F), provided an update on how the leading cryptocurrency is performing following the recent crypto crash.　　Last month closed -35%, but PlanB sought to reassure his followers by saying the journey isnt going to be a straight line up. Nonetheless, despite the dip, the S2FX model remains intact.　　“New dot: May close $37,341.. -35% .. we knew #bitcoin would not go up in a straight line and several -35% drops are possible (and indeed likely) in a bull market. Starting to look like 2013. S2F(X) model intact,” they said in a tweet today.　　The S2FX model puts Bitcoin at $288k between 2021 and 2024. Even so, the model is not without criticisms that cite the problem of flawed assumptions.　　Bitcoin FUD takes its toll　　May was a particularly tough period for Bitcoin as FUD after FUD event conspired to tank its price. From its $65k peak in April to its recent bottom, Bitcoin lost 55% of its value.　　The past week or so has seen a narrow band of price consolidation, as BTC ranges from between $34.5k – $39k.　　Bitcoin remains below the 200-day moving average suggesting bears currently control the market.　　All the same, PlanB

2021-06-02Deep Dive

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