Crypto Guides, Knowledge & Insights

Report: India may be considering crypto regulation instead of a blanket ban

Indias central government is currently considering the possibility of creating a regulatory framework for cryptocurrencies in the country—instead of a complete ban proposed in the past, several sources told The Economic Times today.　　As CryptoSlate reported, Indian authorities have been pondering the idea of a total ban on “private” digital assets over the past few years. Recently, the government even discussed a so-called “exit window” that would allow crypto holders to get rid of their coins when the corresponding restrictions may come into effect.　　A fresh look　　However, such drastic measures, first introduced by a committee led by ex-finance secretary Subhash Garg in 2019, might have become outdated today. Thus, a more constructive approach may be warranted.　　“There is a view within the government that the recommendations made by the Subhash Garg committee are dated and a fresh look is needed at use of cryptos rather than a total ban,” an official told the outlet.　　To this end, Indias government may form a new panel of experts that would research the possibility of crypto regulation, they added.　　For example, the committee may explore potential use cases for blockchains and come up with new ways to regulate cryptos as “assets” rather than currencies. The experts could also

2021-05-20Deep Dive

Bitcoin price dip below $40K costs Tesla nearly 100% of its BTC profits

Bitcoin (BTC) fell below $40,000 on May 19 as bearish sentiment continued to dictate price direction resulting in the cryptocurrency market losing $350 billion in value.　　BTC/USD 1-day candle chart (Bitstamp). Source: TradingView　　Analysts calm as BTC/USD hits 15-week lows　　Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it put in lows of $38,500 before bouncing higher.　　Coming after a week of successive drops, Wednesdays dip put Bitcoin at its lowest level since early February and 40% below its all-time highs.　　“Bitcoin putting in new lows, probably buy more soon,” popular trader Scott Melker told Twitter followers in a post that characterized the conversely calm mood among market veterans.　　As Cointelegraph reported, those closer to the data were anything but bearish throughout the week, and even a sub-$40,000 BTC price failed to dampen their spirits.　　“16,835 Bitcoin withdrawn from exchanges in last 10 minutes,” analyst Lex Moskovski noted at the time of writing.　　“Someones buying fear.”　　Bitcoin exchange withdrawal volume chart. Source: Lex Moskovski/ Twitter　　Tesla blows its Bitcoin fortune　　Elsewhere, the spotlight remained on Tesla and its CEO, Elon Musk. After taking the blame for the volatility in recent days, Musk was widely held to have cost himself and his company more than most others with his remarks.　　With

2021-05-19Deep Dive

United States, Germany, and Turkey Rank High Among Countries Showing Interest in Ethereum

Ethereum, the second-largest cryptocurrency by market capitalization, has seen increased interest from different countries globally, with the United States being the country with the most interest in Ether, followed by Germany and Turkey.　　Ethereun Sees Increased Retail Interest　　According to Finbold on Tuesday (May, 18, 2021), a research carried out by Invezz covered the top 20 countries which showed an interest in ether (ETH). The results revealed that the U.S. ranked number one, with 1,116,000 online searches for ether per month. With this figure, it means that there were 36,000 internet searches for the word “ether” daily.　　After the U.S., Germany and Turkey rank second and third respectively with their online search for the second largest crypto asset. While Germany has 736,300 monthly searches, Turkey has 408,500 Internet searches per month.　　Other countries like Brazil, France, the United Kingdom, and Canada came in fourth, fifth, sixth, and seventh respectively. These countries had over 200,000 ether searches per month from their citizens.　　Meanwhile, Switzerland, which ranks 12th on the list with over 93,000, had the highest number of searches per 1,000 users. According to the research, there were 11.79 searches per 1,000 online users. Indonesia, which takes the 18th spot in terms of searches for ether

2021-05-19Deep Dive

Top Chess Players To Compete For USD 100K Worth Of Bitcoin

Forthcoming online chess tournament FTX Crypto Cup is slated to pit the world‘s top ten players against each other, allowing the global chess elite to compete for USD 100,000 worth of bitcoin (BTC), provided by the event’s sponsor and crypto derivatives exchange FTX, and USD 220,000 in cash.　　Some of the grandmasters that are to take part in the cup, which is described as the world‘s first bitcoin prize chess tournament, include Norway’s Magnus Carlsen, the world‘s highest-ranked chess player, and Russia’s Ian Nepomniachtchi, the global number four. The event will precede their 14-game world title match which is scheduled to take place this November-December in Dubai.　　The event, which is part of this year‘s Meltwater Champions Chess Tour, will be held between May 23 and 31, enabling fans to track the prize’s pot value in real-time and its fluctuations, the organizers said in a statement.　　FTX has also entered into a long-term agreement with Play Magnus Group, which is the cups organizer, to become its official crypto exchange partner.　　“Both online chess and digital finance are growing rapidly,” said Sam Bankman-Fried, CEO and Founder of FTX.　　Should Carlsen secure the crypto bonus, it would allow the player to further diversify his budding investment portfolio.

2021-05-19Deep Dive

Bitcoin ‘Greener Than Petrodollar’: Human Rights and Energy Analysts

Bitcoin is more environmentally friendly than the petrodollar, according to Alex Gladstein, chief strategy officer at the Human Rights Foundation, and James McGinniss, CEO and co-founder of David Energy. Both individuals appeared on the Unchained Podcast with Laura Shin earlier today.　　The discussion took place against the backdrop of Tesla CEO Elon Musk‘s shocking u-turn on Bitcoin. Three months after overseeing Tesla’s $1.5 billion investment into Bitcoin, Musk announced that the company would no longer accept BTC as a form of payment due to concerns about its climate impact.　　“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk said, adding that cryptocurrency progress cannot come at the expense of the environment.　　According to Gladstein, Musks decision to reverse course is a reaction to bad PR from environmentalists after buying BTC in the first place. “What happened afterward was a big backlash by people who believe Bitcoin is bad for the environment,” Gladstein said.　　Gladstein and McGinniss are only the latest crypto advocates to come to the leading cryptocurrencys defense. This time, the two compare the leading cryptocurrency with the petrodollar.　　What is the petrodollar？　　Broadly speaking, the petrodollar is

2021-05-19Deep Dive

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

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