Crypto Guides, Knowledge & Insights

Polkadot Is One Step Closer to Launching an 'Internet of Interoperable Blockchains'

Polkadot‘s experimental network Kusama has seen its first parachain rolled out, marking the next milestone on the project’s roadmap.　　Kusama, a testnet of sorts for Polkadot, has seen its very first parachain go live soon after Polkadot creator and Ethereum co-founder Gavin Wood announced that the project is entering the final phase of its mainnet launch.　　Parachains refer to different blockchains that connect with Polkadot and run in parallel within one unified network. Each chain enjoys access to key features like a proof-of-stake consensus algorithm and on-chain governance. Its a key feature of the network and one which will distinguish it from hundreds of other blockchain competitors. And with yesterdays rollout on Kusama, this feature is one step closer to going live on Polkadot.　　Launched last summer, Kusama is Polkadots sister network designed to serve as a live testbed for new features before they are fully deployed on Polkadot.　　Wood said that despite Polkadots “highly decentralized and inclusive staking system,” the network “has so far existed only as a single chain in isolation.”　　“With the launch of parachain functionality, this is about to change,” he stated, adding that the final vision of the network is now “about to become reality.”　　The rollout of Kusamas first parachain

2021-05-19Deep Dive

Why Bitcoin Fundamental Analysis Isn’t Always Flawless

Bitcoin fundamentals being so strong helped send the cryptocurrency into a parabolic uptrend. Blockchain data revealed each times coins left exchanges in bulk, and the reduction in BTC reserves was evident to any onlooker thanks to the transparency the tech provides.　　But unfortunately, a recent wave of bullish fundamentals still failed to overpower bearish technicals and sentiment, which have now turned the trend for the time being. Here‘s a deeper look at why fundamental analysis, while effective, isn’t flawless and is only one piece of the puzzle.　　Once Flawless Crypto Fundamental Analysis Flips On Quant Analysts　　Fundamental analysis focuses on data, not charts, but is equally important as technical analysis. Fundamental analysis can further be broken down into qualitative and quantitative analysis.　　Quant data has been especially effective in predicting crypto market price action recently, especially around Bitcoin. In markets, prices are set by the constant push and pull of supply versus demand.　　Cryptocurrencies, thanks to blockchain tech, offer the benefit of getting an exact look at supply and how that supply moves. Knowing BTC – and more recently ETH – were leaving exchanges in such a dramatic fashion, investors also could surmise that a supply shock was coming.　　However, recently, all the bullish fundamentals in

2021-05-19Deep Dive

Ethereum Staking Will Drop Power Consumption by 99%

Ethereum will reduce its energy consumption by 99.95% following its transition to proof-of-stake, according to a new blog post from Carl Beekhuizen of the Ethereum Foundation.　　How Much Less Energy Will ETH Use？　　Beekhuizen estimated there are 87,000 at-home stakers using about 100W of energy for a total of 1.64 megawatts. Additionally, there are another 52,700 exchanges and custodial services that use about 100W per 5.5 validators for a total of 0.98 megawatts.　　Based on those estimates, Beekhuizen says that Ethereum will consume about 2.62 megawatts when it switches to proof-of-stake.　　Beekhuizen added that this estimate may be too large. He noted that his own personal staking setup was optimized to use 15W, while some staking services use as little as 5W per validator.　　This means that Ethereum will no longer use the energy equivalent of a country or even a city. Instead, its total consumption will be comparable to a small town that contains around 2100 homes.　　Additionally, Beekhuizen drew attention to the fact that Ethereums proof-of-stake network will be approximately 7,000 times more energy efficient than Bitcoin, as seen in the chart below:　　Via Ethereum Foundation　　Staking Will Use Some Energy　　Though this reduction in energy consumption was expected, the Ethereum Foundation is clearly attempting to be

2021-05-19Deep Dive

Young Arabs are more ‘bullish’ on crypto investments than Westerners

A recent survey by market research company YouGov in the United Arab Emirates (UAE) found young Emiratis were overall ‘more bullish’ than Western expats about the opportunities in the crypto market.　　The survey—sanctioned by local financial services firm Holborn Assets—took responses from over 1,000 UAE residents and highlighted a notable appetite from investors for cryptocurrencies as part of a bigger portfolio that included traditional assets.　　Crypto an ‘exciting investment’　　One in four investors said they viewed cryptocurrencies as an ‘exciting investment’ opportunity, with over 45% of the respondents stating they read up on the digital assets thoroughly before investing.　　44% (from 30 respondents) further stated they were fine with 5% of their investment portfolio invested in cryptocurrencies in 2021. The figure was over 10% for nearly one in five (18%) UAE residents.　　“There is clearly growing demand for this new and enticing asset class, especially given the returns it can potentially offer investors,” commented Stefan Terry, Global Senior Partner in the UAE office of Holborn Assets, in a statement.　　Terry added that the results highlighted the overall strong interest locally in more education about cryptocurrencies before investors made allocations in the burgeoning crypto market.　　IMAGE: YOUGOV.　　Who is feeling bullish？　　Young investors in the 18-24 age group were found

2021-05-19Deep Dive

US lawmaker introduces bill aimed at protecting 'forked assets' from IRS

This is the third time Rep. Emmer has introduced the bill to the House of Representatives, but the first with a Democrat in the presidency.　　Minnesota Rep. Tom Emmer has reintroduced a bill aimed at preventing the IRS from imposing penalties or fees on crypto taxpayers with forked assets.　　In an announcement from Emmer on Monday, the congressperson from Minnesota said he had once again introduced the Safe Harbor for Taxpayers with Forked Assets bill in the United States House of Representatives. If passed in its current state, the bill would create a safe harbor for crypto holders with forked assets, allowing them to be nontaxable events. Further, these conditions would be continued until the Internal Revenue Service provides “clear and consistent guidance on how these transactions should be managed.”　　“Just like every other federal agency, the IRS must keep up with the rapid pace of technology or risk losing American leadership in innovation,” said Emmer. “Taxpayers suffering from a lack of tax guidance are being unfairly punished for investing in an emerging technology. What has been issued by the IRS so far is not pragmatic and has not supported the technology nor those who engage with it.”　　He added:　　“We should be embracing emerging

2021-05-19Deep Dive

Nvidia extends limits on crypto mining to newest gaming graphics cards

The global head of GeForce marketing at Nvidia said that the reduced hash rate “only applies to newly manufactured cards,” not to GPUs already purchased.　　Graphics card giant Nvidia said that the hash rate limiter on its RTX 3060 graphics cards would also be introduced in other RTX 30 series GPUs in an attempt to disincentivize crypto miners.　　In an announcement from Nvidia on Tuesday, the company said it would be applying a reduced Ethereum hash rate to its newly manufactured GeForce RTX 3080, RTX 3070 and RTX 3060 Ti graphics cards. The models will be identified by a “Lite Hash Rate,” or LHR, label, aimed at getting its graphics processing units, or GPUs, to its target customers rather than cryptocurrency miners.　　“This reduced hash rate only applies to newly manufactured cards with the LHR identifier and not to cards already purchased,” said Nvidias global head of GeForce marketing Matt Wuebbling. “We believe this additional step will get more GeForce cards at better prices into the hands of gamers everywhere.”　　Nvidia limited the hash rate on some of its earlier GPU models, announcing in February that the changes reduced mining performance by 50%. However, in March, a driver update from the graphics card manufacturer

2021-05-19Deep Dive

Andrew Yang's Humanity Forward Starts Accepting Dogecoin, Bitcoin, Ethereum, and Other Coins

Humanity Forward, a non-profit created by former U.S. presidential candidate Andrew Yang, has started accepting contributions in Dogecoin, Bitcoin, Ethereum, Chainlink, and a slew of other digital currencies after partnering with crypto donations company The Giving Block.　　Yang— whos currently favorite to win the New York mayoral race—started the organization to build a “human-centered America” back in March 2020. The crypto-friendly politician himself donated $3 million to kickstart it.　　The non-profit is focused on helping out struggling people who have been hit hard by the pandemic. It started off with a plan to give away half of million dollars as part of a universal basic income (UBI) pilot program.　　It has been endorsed by Reddit co-founder Alexis Ohanian and other celebrities.

2021-05-19Deep Dive

BOA Report says Kimchi Premium Result of Capital Flow Control

Kimchi premium, the Bitcoin price difference between the international market and the South Korean market rose to $4,000 yesterday after a red crypto day. A recent Bank of America report suggests that the Bitcoin price premium in the Korean market is a result of capital flow control put by the government. At present, the purchases of foreign currency are capped at 50,000 annually per person, which might be another reason for investors to look for alternatives like Bitcoin. The report noted,　　“The onshore price for cryptocurrencies in Korea is persistently above international prices suggesting this to be a result of effective capital control that prevents effective arbitrage of onshore and offshore prices,”　　Kimchi premium is often seen as a bullish trend for the market as it indicates a growing demand among the investors. The price premium was on the decline recently primarily because of the long consolidation phase of the top cryptocurrency since last ATH, also the authorities are tightening regulations around the crypto market in South Korea.　　South Korea is seen as one of the most progressive nations when it comes to crypto regulations as the country has a fully regulated market and the authorities have also proposed a 20% tax on

2021-05-19Deep Dive

Why Tesla dumping bitcoin was inevitable

In February of this year, Tesla announced that it had purchased a large amount of Bitcoins (on the order of $1.5bn) and would now allow new Teslas to be bought with the Cryptocurrency¹. This came at a time when confidence in Crypto has been continually increasing but it seemed like this was the boost it needed to really take off. Along with Bitcoin itself, this move appeared to grant legitimacy to many Cryptocurrencies that had started to gain ground in potential mainstream circles, but a big move by Tesla has yet to have been made by any other company to support this. However 4 months after the initial announcement, Tesla revealed a reversal of the original decision due to the environmental impact of bitcoin mining, storing, and transacting in that they would no longer be accepting the currency as payment. While Tesla still retains considerable holdings of the currency, at least it is believed they still do, this about face has caused considerable declines in the value of bitcoin and of other Cryptocurrencies as well, with bitcoin falling 7% on the news of the decision².　　Why Tesla has stopped allowing purchases via bitcoin　　The main reason why Tesla has stopped allowing the

2021-05-19Deep Dive

FOX Partners with Rick and Morty Co-Creator to Launch NFT Marketplace

Fox Broadcasting Company partnered up with Dan Harmon – co-creator of Rick and Morty – to develop animated series based on blockchain technology. The comedy series, dubbed ‘Krapopolis,’ will introduce the sale of non-fungible tokens illustrating the characters and artwork featured in the show.　　Fox Enters The Crypto Community　　The American commercial broadcast TV network Fox announced its partnership with ‘Rick and Morty’ co-creator Dan Harmon. The collaboration will aim to develop “the very first animated series organized entirely on the blockchain.”　　The popular comedy series, called ‘Krapopolis,’ will launch NFTs depicting Rick, Morty, and the other main characters of the animation. The show also plans to reward its most devoted fans with tokens that grant “exclusive social experiences.” However, details are scarce about when exactly the project is set to start.　　Furthermore, Fox revealed it will launch the new NFT company “Blockchain Creative labs”, which is expected to connect with “Krapopolis” and other shows in the near future.　　Charlie Collier – Fox Entertainment CEO – outlined the companys inovation and revealed his intention to add advertising partners to it:　　“Not to go too far today, but as an adviser-centric, artist-first, and animation-obsessed company, Fox will lead advertisers into the world of blockchain-powered tokens, including the

2021-05-19Deep Dive

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