Crypto Guides, Knowledge & Insights

Proposed New York tower to allow ‘wireless’ crypto trading, host NFTs

Todd Morley, Overline chairman and co-founder of financial-services giant Guggenheim Partners is building a blockchain tower in New York, as per a report on Business Insider today.　　The new building at 111 West 57th Street, to be built by JDS Development Group in partnership with Overline, “will be able to connect, sort of like a hand radio operator, everyone in New York City to a crypto trading wireless communication,” said Morley in his interview for Bloomberg Television.　　Overline network　　Overline is a mineable interoperability protocol that can connect all blockchains, including Bitcoin, to decentralized finance (DeFi) protocols. The network is entirely powered by mining and besides enabling cross-chain trade and interoperability, it allows users to trade its own cryptocurrencies, such as ‘Emblems.’　　The interoperability of the Overline multichain network utilizes a unique ´Proof of Distance´ proprietary consensus protocol, which builds upon Bitcoins ´Proof of Work´. Bitcoin users are already able to access blockchains through other means, for instance via a network of satellites.　　More than just one skyscraper　　In the interview, Morley also revealed that besides incorporating a wireless network that will allow improved access to public and private blockchains, the skyscraper is supposed to include a museum for non-fungible tokens (NFTs)—unique digital assets underpinned by

2021-05-26Deep Dive

Is Tether FUD Next, after China Bitcoin Ban and Bitcoin Mining Energy FUD?

The Bitcoin bull market this season is currently undergoing through ‘FUD-Phase’ where a series of FUDs have hit the market one after the other, many of which has already been debunked. After Bitcoin mining energy consumption FUD and China Bitcoin ban, it seems the long-running Tether FUD can make an entry.　　Jim Cramer, the founder of popular business media publication The Street asked Pomp whether Tether is good for the market trying to indicate the possible accusations of market manipulation. Stuart Hoegner, the General Counsel for Tether and Bitfinex responded to Cramers query with the breakdown of their issuance reserves.　　Tether FUD suggests that Bitcoin price is often manipulated and pumped by the issuance of a significant amount of USDT in the market whenever the price of the top cryptocurrency takes a dip. The FUD also claims that USDT supplies are not backed by the US Dollar and the company issuing it prints just like the Federal Reserve. While there is no iota of evidence to prove such wild claims and Tether has also offered audited reports of its holdings, the market seems just right for another FUD.　　No Bull Market is Complete Without FUDs　　Every bull market has seen a number of FUDs

2021-05-26Deep Dive

Astro Crypto: Saturn Retrograde And Why Karma Is Coming For Bitcoin

This week begins Saturns annual retrograde bringing about a time for reflection and change. Whether you believe in astrology or not, there could be some serious implication for Bitcoin during this “transit.”　　Heres what typically happens during the few-month-long transit and how this could impact the cryptocurrency market.　　Does Astrology Work To Predict Bitcoin Price Action？　　It is rare, but few traders have made their fortunes by integrating astrology into their technical analysis strategy. W.D. Gann, for example, used time, price, and geometry among other tools to predict tops and bottoms in markets.　　The late great Gann noticed a correlation between commodities markets and certain planetary positioning, and his findings produced regular results. He went down both as a legend and a hoax, due to the stigma that surrounds astrology – especially as it applies to something as serious as finance.　　Saturn is in retrograde starting in this week, giving it the appearance that its moving backwards through the sky. And it could be an ideal time for astrology to prove its worth all on its own.　　How Saturn Retrograde 2021 Could Bring Karma To Crypto　　Saturn retrograde comes once per year and can be quite the shake up. The transit is associated with “lessons,” “discipline,” “karma,”

2021-05-26Deep Dive

Cryptocurrency custody gives commercial banks a foothold in the market

Custody services arent the most compelling corner of the crypto ecosystem, but 21st-century solutions for storing and safekeeping digital assets are critical if cryptocurrencies are to achieve widespread adoption.　　For that reason, Cowen Inc.s recent announcement that the 103-year old United States investment bank wants to hold crypto on behalf of asset managers and hedge funds is noteworthy, especially when coupled with similar statements from traditional bank giants such as Bank of New York Mellon and Deutsche Bank earlier this year.　　Is it too early to speak of this as a movement？ “This is absolutely a trend,” Raphael Polansky, managing director at Boerse Stuttgart Digital Ventures GmbH, told Cointelegraph.　　Traditional bank giants like Wells Fargo — which also announced that it would begin offering crypto services to its wealthier investors — are being nudged into the business by their customers who are eager to increase their crypto and token activities. “Those customers are also not yet willing to trust those pioneering fintech firms with three-digit million amounts,” explained Polansky, adding: “They want a reliable and trusted partner that they have known for decades, and these are still the traditional banks.”　　“Yes, more [traditional] banks will offer custody services,” predicted Michael Gofman, assistant professor of

2021-05-26Deep Dive

Digital Yuan Not Intended for the International Stage, Say Experts

Chinas forthcoming digital yuan may not be set to make a mark on the international monetary scene after all – and could, at least initially, be limited to domestic user-cases, experts have stated.　　The stakeholders, including Michael Sung, the founder of CarbonBlue Innovations, were speaking at a session entitled “Contest of the Century？ Geopolitical Impacts of China‘s Digital Yuan” at the Coindesks Consensus digital summit today. And while Sung and others claimed that the token was likely to find uses in Hong Kong, Macao, and other territories near the Middle Kingdom, the token was not intended as a quick fix to the dollarization of China’s trade deals.　　Sung, when asked if the digital yuan could be used outside China in trade settlements, noted that the “official position” of the central Peoples Bank of China (PBoC) was that the token would be for “domestic” and Mainland purposes.　　However, he underlined the significance of the fact that the digital yuan pilot has now been extended to the Pearl River Delta and the Guangdong-Hong Kong-Macau Greater Bay Area, which encompasses both Hong Kong and Macao. He added that “there is planning” for the “extension” of the digital CNY “across borders,” although this was “mostly” being done

2021-05-26Deep Dive

Michael Saylor says Bitcoin Mining Council required to combat ‘hostile’ narrative

MicroStrategy CEO, Michael Saylor has explained the details and thinking behind the formation of the Bitcoin Mining Council.　　The council was formed on May 25 after Saylor brokered a successful meeting between Elon Musk and several top North American Bitcoin mining firms. The miners involved will provide current and planned renewable usage transparency, and will lobby other mining operations across the globe to do so as well.　　Speaking at the virtual Consensus 2021 conference, Saylor emphasized that the council was formed out of the need to provide greater transparency on the Bitcoin mining industry, and promote sustainable initiatives moving forward:　　“The only reason we had the meeting is because we wanted to ensure the success of a decentralized cryptocurrency, and the source of decentralization is energy usage,” Saylor said.　　“It turns out that Bitcoin miners dont actually have a good forum for communicating how they generate their energy. We dont have a standard model for Bitcoin energy usage right now, and we dont have a future forecast model that we commonly use.”　　However the Bitcoin Mining Council has proven controversial in some quarters with comparisons to the oil production cartel OPEC. Podcaster Marty Bent, the co-founder of Great American Mining, which utilizes wasted gas from

2021-05-26Deep Dive

The importance of block sizes, and the rise of off-chain solutions

A number of blockchain projects have exploded in popularity in recent months, but their block sizes have stayed the same. Whats the answer to this looming scalability crisis？　　The cryptocurrency sector has undergone a seismic shift in recent years as retail investors and publicly listed companies make their way into the space.　　Globally, estimates suggest that the number of crypto users surged by about 190% between 2018 and 2020.　　Record-breaking inflows into the market have also taken the number of active addresses on the Bitcoin network, as well as trading volumes, to all-time highs this year.　　On the face of it, all of this should be cause for celebration — and it is. But here‘s the problem: While Bitcoin’s network is enjoying a surge in demand, it could be argued that the blockchain‘s infrastructure isn’t keeping up.　　Bitcoin‘s block size of 1MB means that this blockchain can only handle about five transactions per second on average. Extrapolate this to a 24-hour period, and you’re looking at about 86,400 transactions. Despite this networks immense achievements, this makes it mathematically impossible for the blockchain to fuel global payments in its current form.　　All of this has caused BTC transaction fees to surge — and according to some estimates

2021-05-26Deep Dive

Zimbabwe's Biggest Bank Looks at Methods to 'Leverage Cryptocurrencies'

One of Zimbabwe‘s biggest financial institutions, CBZ Holdings says it is looking at ways it could “leverage cryptocurrencies and other emerging digital innovations.” According to the financial institution’s chairperson, Marc Holtzman, CBZ “is open-minded about new innovations, as these could open up new opportunities going forward.”　　Innovations Opening up New Markets　　Speaking in an interview with a local publication, Holtzman also acknowledges that innovations such as “cryptocurrencies, or rather blockchain more broadly, fintechs, bigtechs and techfins” are all serving “specific gaps.” Revealing his organizations stance on such innovations, the chairman said:　　Our view is that these innovations have the potential to strengthen the way we do business, the way we serve our customers, as well as open up new market opportunities.　　Holtzman adds that such opportunities “can be pursued through collaboration and cooperation with the same fintechs.” Consequently, the chairperson says CBZ will be embracing “an open innovation strategy in which we work with and through these fintechs in areas such as mobile money and mobile wallets.”　　Potential Risks　　Nevertheless, the CBZ boss does acknowledge the potential risks that will arise as a result of embracing these innovations. Still, he insists the Reserve Bank of Zimbabwe (RBZ)‘s fintech regulatory sandbox—which guides banks’ participation in these innovations

2021-05-26Deep Dive

Bank Indonesia on Track to Release Digital Rupiah

IN BRIEF　　Bank Indonesia moves to the pre-launch stage of their CBDC program.　　According to the Bank for International Settlements, 85% of central banks are actively researching CBDCs.　　Other Asian countries looking into CBDCs include Japan, South Korea, and China.　　Bank Indonesia is in the pre-launch stages of releasing a digital rupiah currency and is vetting platforms to see which will suit their needs the best.　　As the world sees an increase in digital transactions during the covid-19 pandemic, many countries are beginning to look closer at launching central bank digital currencies (CBDCs).　　According to research done by the Bank for International Settlement (BIS), more than 85% of central banks are actively researching CBDC, while 60% are testing technology and 14% have moved to start alpha testing these projects. Digital currencies are set to help to modernize these financial systems and significantly speed up international transactions.　　Today, Bank Indonesia (BI) became the latest of a long line of central banks to announce their move toward a national digital currency.　　As for Bank Indonesia, they have decided to make creating and launching the digital rupiah one of their main priorities, after seeing a spike in digital transactions. According to the statement, transaction frequency on digital banking platforms shot up

2021-05-26Deep Dive

Korea’s crypto market is among the strongest — and the strangest — in the world

On a day in which Bitcoin crashed briefly to $30,000 in a rampant bear market, the leading cryptocurrency never got anywhere close to that on Korean exchanges. The so-called “kimchi premium” saw to that, keeping the price of Bitcoin as much as $5,000 above its level on leading U.S. exchanges.　　The major reason for this kimchi premium is that Korea‘s exchanges are fairly isolated by a combination of the country’s strict capital control laws preventing funds from leaving the country, and the tax code and anti-money laundering (AML) regulations that make it difficult for foreigners to use Korean exchanges — even giants like Bithumb and Upbit — without local Korean bank accounts.　　Nor is that premium the only part of South Korea‘s crypto industry that sets it apart from the rest of the world. Among other things, the market’s isolation combined with the extraordinary stability of the Korean won has kept stablecoin usage low and the embrace of decentralized finance, or DeFi, well behind that of the rest of the world.　　Koreas Bitcoin boom　　Despite this isolation, Koreas embrace of Bitcoin in particular and cryptocurrency in general is very strong. In April, more than five million unique cryptocurrency users — about 10% of the

2021-05-26Deep Dive

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