Crypto Guides, Knowledge & Insights

PlanB Says Bitcoin Bull Market Nowhere Near the Top – Here’s Why

The analyst who first applied the stock-to-flow model to Bitcoin says the top cryptocurrencys bull market is just getting started despite its recent struggle to stay above $60,000.　　In a new tweet, PlanB tells his 347,400 followers he believes that BTCs current boom cycle is far from over.　　“In my opinion, we are only about 4 months into the bull market and nowhere near the end of it. Bitcoin is just getting started.”　　The quantitative analyst looks at Bitcoin‘s historical performance in terms of momentum to support his argument. According to PlanB, BTC’s relative strength index (RSI), which measures the pace of price movements for a given asset, has not yet reached its peak.　　“Bitcoin monthly RSI is not even 95. In 2011, 2013 and 2017 bull markets we had at least 3 months above 95. Still early.”　　Source: PlanB/Twitter　　While PlanB is long-term bullish on the leading cryptocurrency, he says Bitcoin is still facing significant headwinds.　　“There are also some real risks left (goverment ban, quantum computing) that have to be dealt with.”　　The quant analyst adds that a Bitcoin supercycle, where the largest cryptocurrency would ascend to $1 million, is currently out of the question as he believes that most market participants are irrational.　　“In my opinion,

2021-03-29Deep Dive

From De-Fi and payments to NFTs: what is driving crypto’s value in 2021?

Insiders are understandably enthusiastic about the significant potential Decentralized Finance (DeFi) holds for its users. From lending crypto to others that need it in return for a yield, to taking out loans without ever needing to sign your name or interact with another human, to speculating with no broker involvement, to smart algorithms that can and optimize investment portfolios, De-Fi is set to shake up the way we do things.　　Of course, for the majority of people, crypto and blockchain are still foreign concepts they have either never heard of or do not understand. But that may be set to change soon, as there is more and more evidence that decentralized ledger technologies (DLTs) are penetrating into the mainstream. Major corporates are adding cryptos to their holdings.　　Take MicroStrategy for instance, which now holds over $4 billion worth of Bitcoin, and has seriously amplified its market cap in the process. Or Square and Fidelity, who have both enhanced their portfolios and funds with cryptos. Goldman Sachs is opening a new crypto trading desk for its clients. These are just a few examples that demonstrate mainstream adoption is picking up pace, and we expect this trend to continue.　　What has happened to Bitcoin？　　One reason

2021-03-29Deep Dive

Top 5 Cryptocurrencies to Watch in April

The past seven days were quite the roller coaster in the cryptocurrency market, which, fortunately, ended well.　　The total market capitalization is currently more or less at the same level as where it was one week ago, despite having lost almost $100 million on Thursday when Bitcoins price collapsed to $50K.　　With this said, we take a look at the top 5 cryptocurrencies to keep a close watch over the next few weeks.　　Bitcoin (BTC)　　It goes without saying that, for the most part, wherever Bitcoin goes, the market follows. While the rate might not be equal, BTC has dictated the direction of the market for most of the current bull run.　　Last week, we saw a major announcement from Tesla – the giant electric vehicle manufacturer revealed that users can now pay for a Tesla with BTC. Elon Musk tweeted it, and, consequently, the market surged.　　Unfortunately, the rally was unsustainable, and shortly after, BTC plunged and decreased to roughly around $50,000. This is where it found solid support and started increasing as its currently trading at around $56,500.　　BTC/USD. Source: TradingView　　BTC already broke above the first serious resistance at $55,000 and looks primed to take on $57,700 after that. If its successful, we can expect

2021-03-29Deep Dive

How Blockchain Can Help Monitor COVID-19 Vaccines

IN BRIEF　　The question becomes how recipients of COVID-19 vaccines can ensure that the vaccines they receive have not been compromised.　　Blockchain can ensure much-needed transparency that is not contingent on one party alone.　　Blockchain can be a solution to answer some of the most difficult challenges related to the distribution of COVID-19 vaccines.　　Many have hoped that 2021 will be the year we inch closer towards having our everyday lives back, despite many of us remaining in lockdown, as our respective governments introduce new measures to prevent the spread of the new variant.　　In an ironic twist of fate, life in 2020 was largely defined by the COVID-19 pandemic, a virus that has inflicted pain and suffering, upended peoples livelihoods, and devastated economies worldwide.　　Perhaps, there is reason to be optimistic. Since November of last year, several companies have announced COVID-19 vaccines that are ready to be distributed throughout the world.　　This means that the possibility of returning to some semblance of everyday life may become a reality, once the worlds population largely becomes immunized to the virus. Of course, this will take time, but we are seeing the light at the end of the tunnel.　　As a person deeply involved in blockchain, it would seem

2021-03-29Deep Dive

South Korea Central Bank:CBDCs Will Reduce Demand for Bitcoin

Bank of Korea Governor Lee Ju-yeol says once central bank digital currencies (CBDC) are introduced, the demand for cryptocurrencies like bitcoin fall.　　Bank of Korea Governor Lee Ju-yeol said when central bank digital currencies (CBDCs) are introduced, the demand for existing cryptocurrencies like bitcoin (BTC, +3.55%) will fade. 　　Lees comments on the sustainability of cryptocurrency came at an event on Wednesday, Park Geun-mo reported for CoinDesk Korea. 　　“When the central bank-issued digital currency is introduced, the demand for bitcoin and other cryptocurrencies as means of payment will decrease,” Lee said.　　He also said bitcoin and other crypto assets have high price volatility and so there are limitations to how well they can function as a means of payment or as a store of value.　　Lees comments come as the Bank of Korea prepares to pilot its own CBDC later this year. A number of countries around the world including China, Russia, Turkey and Jamaica have all announced potential CBDC pilots in 2021. 　　In South Koreas pilot, the bank plans to test the CBDC for fund transfers, payments, issuance, distribution and redemption, according to CoinDesk Korea.　　Bank of Korea also published research on a national digital currency in February, which concluded that CBDCs are like

2021-03-27Deep Dive

Bitcoin Stumbles as $6 Billion Options Near Expiration

As a record $6 billion worth of Bitcoin options near expiry this Friday, the cryptocurrency market may be in for turn in favor of the bears.　　Applying “Max Pain”　　According to data from cryptocurrency market analysts Bybt, the market faces a record $6 billion worth of bitcoin (BTC) options coming to expiration this Friday.　　The gigantic figure is a direct result of a sustained increase in open interest on bitcoin options market-wide. In fact, open interest ballooned to $13.5 billion as bitcoin rose past the $60,000 mark. This is an increase of over 60% in just two months.　　Indeed, as it stands, the data show that the contracts set to expire on March 26 contain 100,400 BTC. The amount represents nearly half of all such contracts set to expire within the next fortnight.　　Many in the options trading community suggest that BTCs recent tumble to the low $50,000 levels might be the result of options traders pushing the price lower ahead of the expiration.　　This is colloquially known as a “max pain” operation. The hypothesis is that sizeable traders in options markets push their prices to levels that cause the market to suffer the most loss before expiration.　　They then take advantage once the expiration is over,

2021-03-26Deep Dive

Best Cryptocurrency Stocks To Buy Before April 2021? 4 To Consider

Cryptocurrency is on the rise again as interest in it continues to soar. In addition to this, Bitcoin prices continue to remain over $50,000, so there is certainly a lot of attention surrounding the cryptocurrency space. With that, came cryptocurrency stocks that are normally dependent on the price of Bitcoin and other major cryptocurrencies. Given the technology behind cryptocurrency, it can be a complex matter to understand for some investors. However, as some of the best crypto stockscontinue to garner attention worldwide, wont you be the least bit curious to find out about these stocks？　　Companies like Nvidia (NASDAQ: NVDA) and AMD (NASDAQ: AMD) are having a hard time keeping up with the demand for their graphics processing units (GPUs). These GPUs are used to mine cryptocurrencies and have consistently been out of stock in the last few months. With soaring crypto prices, people are willing to fork out more money for mining. This in turn would send Nvidia and AMD off to another record quarter. As Bitcoin is a commodity like gold, some speculate that it could replace gold as a store of value for people who have doubts about fiat currency.　　One things for sure is that cryptocurrencies continue to

2021-03-26Deep Dive

Breaking Down What South Korea’s Crypto Crackdown Means for the Industry

With a blistering start to the year, cryptos have enjoyed the highs of what seemed like a never-ending bull run. Bitcoin, Ethereum, and other altcoins made headlines every day, surging far past their previous highs as institutions rushed to get their hands on the red-hot asset class. But now, as significant regulatory challenges set in for cryptocurrencies, its future seems more uncertain than ever.　　South Korea lays the groundwork for crypto regulations　　Just weeks prior, the Indian government proposed a total ban on cryptocurrencies, which would effectively criminalize the possession, mining, trading, and transferring of crypto-assets. Since then, other governments have followed suit by outlining their own regulatory frameworks in hopes to contain the rapidly growing industry.　　South Korea, in particular, enacted stricter regulations for crypto exchanges and passed a new legislation that would mandate exchanges to undergo compliance audits and report customer data. In an effort to combat money laundering and tax-fraud, Koreas regulatory and law enforcement agencies will require all crypto transaction data from service providers. Likewise, crypto businesses in the country are mandated to follow strict financial accounting standards.　　While necessary, these stringent measures come at the expense of businesses, as they are forced to absorb the increased costs in compliance

2021-03-26Deep Dive

HOW TO CRYPTO LIKE THE EXPERTS

Lets face it. The cryptocurrency industry is complicated. Ranging from the sheer number of cryptocurrencies to the pace of development, a massive amount of hype, and a complete overload of information, it can be difficult to cut through the mist to get to grips with the industry. But those that do find themselves in an industry full of opportunity — which would be difficult to find in such abundance elsewhere. With that in mind, we take a look at how you can fast-track your progress and crypto like the pros in no time.　　USE A HARDWARE-POWERED WALLET　　As you are likely aware, most cryptocurrencies have experienced what can only be described as meteoric growth in recent months, with the average cryptocurrency gaining close to 1,000% in the last year alone. For those that use and transact with cryptocurrencies regularly, this has undoubtedly been a welcome turn of events — but many investors have found themselves struggling to balance keeping their funds accessible and liquid, with staying secure. After all, with opportunities abound, but scams also prevalent, its important to ensure your funds are protected.　　Right now, arguably the most efficient way to do this is by using a so-called hardware-powered cryptocurrency wallet. Unlike

2021-03-26Deep Dive

Dalio on Bitcoin: ‘Good Probability’ It Will ‘Outlawed’ by US Gov

Ray Dalio, founder of the $150 billion hedge fund Bridgewater Associates, believes bitcoin (BTC, +0.03%) has “proven itself” in the last 10 years but still sees a “good probability” that it will be outlawed by governments.　　Speaking to Yahoo Finances Andy Serwer on Wednesday, the billionaire investor said it was “very likely under a certain set of circumstances” that bitcoin would be “outlawed” as gold was in the 1930s.　　Under the U.S. Gold Reserve Act of 1934, it became illegal for individuals to own gold because, according to Dalio, governments did not want gold to compete with money or credit as a store of value.　　“Every country treasures its monopoly on controlling the supply and demand. They don‘t want other monies to be operating or competing, because things can get out of control,” Dalio added, citing India’s proposed ban on crypto as an example.　　He added that bitcoin has “proven itself over the last 10 years,” having not been hacked and building a significant following.　　Dalio has previously warned about the possibility of cryptocurrency bans by governments.　　On other occasions, he expressed positive sentiment about bitcoins role as a diversifier in investment portfolios.　　In November, prior to BTC‘s staggering run-up to $50,000 and beyond, Dalio said if

2021-03-26Deep Dive

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