Jump to:A Bitcoin is a digital token that can be sent electronically from one user to another, anywhere in the world.

A Bitcoin can be divided out to eight decimal places, so you can send someone 0.00000001 Bitcoin. This smallest fraction of a Bitcoin the penny of the Bitcoin world is referred to as a Satoshi, named after the pseudonymous creator of Bitcoin.

Bitcoin is also the name of the payment network on which this form of digital currency is stored and moved. Unlike traditional payment networks such as Visa, the Bitcoin network is not run by a single company or person. The system is run by a decentralized network of computers around the world that keep track of all Bitcoin transactions, similar to the way Wikipedia is maintained by a decentralized network of writers and editors.

Bitcoin was introduced in 2008 by a creator who goes by the name Satoshi Nakamoto, who communicated with the rest of the world only by email and social messaging. While several people have been identified as possibly being Satoshi, the identity of the real Satoshi has not been confirmed.

Satoshi created the original rules of the Bitcoin network and then shared the software with the rest of the world in 2009. The inventor largely disappeared from the public two years later. Once Satoshi had released the software, anyone could download and use it. This means Satoshi has no more control over the network now than anyone else.

The computers involved in Bitcoin mining are in a sort of computational race to process new transactions coming onto the network, solving complex math problems that require quintillions of numerical guesses per second. The winner of that race generally the person with the fastest computers gets a chunk of new Bitcoins. Since miners can earn rewards but are independent, this process is meant to incentivize participation and maintenance.

There is generally a new winner about every 10 minutes, and this will continue until there are 21 million Bitcoins in the world. At that point, no new Bitcoins will be created. The network is expected to reach that cap in 2140.

Every Bitcoin in existence was created through this method and initially given to a computer helping to maintain the records. In Bitcoins early years, a crypto enthusiast could mine coins by running software on a laptop. But as the digital assets have become more popular, the amount of power necessary to win the race and generate Bitcoins has soared. A single Bitcoin transaction now requires more than 2,000 kilowatt-hours of electricity, or enough energy to sustain the average U.S. household for 73 days, according to some estimates.

The original blockchain was the database on which all Bitcoin transactions were stored. It was named blockchain because the transactions coming onto the network were grouped into blocks of data and then chained together using sophisticated math.

After the Bitcoin blockchain had operated for a number of years, successfully storing every Bitcoin transaction and surviving numerous attacks from hackers, many programmers and entrepreneurs wondered if its design could be replicated to create other kinds of secure ledgers unrelated to Bitcoin.

Companies and governments that dont rely on currency have since begun using blockchain technology to store their data. Banks are building blockchains that can track payments between accounts, while governments are experimenting with using blockchains to store property records and votes.

Founded in San Francisco in 2012, Coinbase allows people and companies to buy and sell various digital currencies, including Bitcoin. In April 2021, Coinbase became the first major cryptocurrency company to list its shares on a U.S. stock exchange.

Coinbase set itself apart from other early blockchain businesses by becoming one of the first to get a new special license, called the BitLicense, to run a virtual currency company in New York. In addition to providing the brokerage service for small investors, Coinbase also runs an exchange called GDAX, which is tailored to larger investors.

The most well-known cryptocurrencies are Ether, Dogecoin and Tether.

Ether is the virtual currency used on the global computing network Ethereum, which operates according to rules defined by Ethereum software. Those rules allow the Ethereum network to be programmed to complete certain types of computing tasks, with every computer on the network completing the tasks simultaneously to ensure they are done correctly. Generally, the tasks involve money.

The creator of Ethereum, Vitalik Buterin, has likened the network to a global smartphone that can be programmed to operate according to the apps built on top of it. The apps are called Dapps because they are run by a decentralized network of computers.

Mr. Buterin was inspired by Bitcoins success to create Ethereum. But he set out to build something that could do more than Bitcoin: He wanted to build a system that would make it possible to program more complex financial transactions. With Ethereum, two companies can conduct transactions, such as settling a stock option on a shared computer, that allows them both to check the records.

Dogecoin was created as a parody of cryptocurrency in 2013 by two friends who had met in a chat room. Named after a meme of an expressive dog, Dogecoin was meant to mock the self-serious cryptocurrencies of the time, many of which never took off. The joke did, though, and it spawned a community of enthusiasts who have kept it alive for years.

Tether is the largest stablecoin, a type of cryptocurrency that is typically pegged to an existing government-backed currency. It is roughly half-invested in a type of short-term corporate debt called commercial paper.

DeFi is an umbrella term for the part of the crypto universe that is geared toward building a new, internet-native financial system, using blockchains to replace traditional intermediaries like banks and trust mechanisms. It has allowed crypto businesses to move into more traditional banking territory, offering services such as lending and borrowing.

Investors can earn interest on their holdings of digital currencies often a lot more than they could on cash deposits in a bank or borrow with crypto as collateral to back a loan. Crypto loans generally involve no credit checks since transactions are backed by digital assets.

To send or receive money in the traditional financial system, you need intermediaries like banks or stock exchanges. In DeFi, those middlemen are replaced by software. As people trade directly with one another, blockchain-based smart contracts do the work of making markets, settling trades and ensuring that the entire process is fair and trustworthy.

An NFT is basically a way to claim ownership of a digital file: You can think of it as a certificate of authenticity you might get if you buy an expensive sculpture. The sculpture can be copied, forged or even stolen, but because you have the certificate of authenticity, you can theoretically prove that you are the owner of the original.

NFTs make digital artworks unique and, therefore, sellable. Artists, musicians, influencers and sports franchises can use them to monetize digital goods that were previously cheap or free. The technology also responds to the art worlds need for authentication and provenance in an increasingly digital world, permanently linking a digital file to its creator.

The technology for NFTs has been around since the mid-2010s but became mainstream in late 2017 with CryptoKitties, a site that allowed people to buy and breed limited-edition digital cats with cryptocurrency. Since then, investors have begun buying and trading NFTs, often for eye-popping prices.

To promise holders that every $1 they put in will remain worth $1, stablecoin issuers hold a bundle of assets in reserve, usually short-term securities such as cash, government debt or commercial paper.

Stablecoins are useful because they help lock in value at the time of transaction. This is important since cryptocurrencies are volatile and prone to price fluctuations. They form a bridge between traditional money and crypto, and are exploding in popularity as a practical and cheap way to make transactions in cryptocurrency.

But many stablecoins are built more like slightly risky investments than like the dollars-and-cents cash they claim to be. And, so far, they are slipping through regulatory cracks.

Regulators are concerned about stablecoins because they have exploded in popularity very quickly, and because many are backed by traditional reserves, they could and trigger a kind of bank run that would potentially pose risks in the wider financial system. There is also no consistent oversight of issuers or a standard for reserves, and as such different stablecoin issuers have different types of reserve backing, including more or less cash, treasuries, commercial paper, etc.

There are a few kinds of stablecoins, including these digital assets backed by traditional reserves, others are collateralized by crypto and, finally, algorithmic stablecoins. The risk in algorithmic stablecoins which depend on a mathematical formula devised by issuers and investor interest to maintain stability was demonstrated in May when Terra/Luna crashed after the assumptions the algorithm was premised on did not pan out in the market and investors fled.

At its core, web3 aims to replace centralized corporate platforms with open protocols and decentralized, community-run networks. The term has been around for years, but it has become trendy in the past year or so. Packy McCormick, an investor who helped popularize web3, has defined it as the internet owned by the builders and users, orchestrated with tokens.

Web3 is seen as the next evolution of web1 (the era in the 1990s and early 2000s during which the internet was made up of blogs, message boards and early portals like AOL and CompuServe) and web2 (a phase starting around 2005 or so, characterized by social media behemoths like Facebook, Twitter and YouTube).

Proponents envision that web3 will take many forms, including decentralized social networks, play-to-earn video games that reward players with crypto tokens, and NFT platforms that allow people to buy and sell pieces of digital culture. The more idealistic ones say web3 will transform the internet as we know it, upending traditional gatekeepers and ushering in a new, middleman-free digital economy.

But some critics believe that web3 is little more than a rebranding effort for crypto, with the aim of shedding cryptos reputation as a place for rogues and rebels and convincing people that blockchains are the next phase of computing. Others believe its a dystopian vision of a pay-to-play internet in which every activity and social interaction becomes a financial instrument to be bought and sold.

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Cryptocurrency and Bitcoin: Here's What to Know - The New York Times

A visual representation of Bitcoin cryptocurrency.

Edward Smith | Getty Images

Cryptocurrency companies dominated the main street at the World Economic Forum in Davos this year, a notable difference between this edition and the last one in 2020.

The high-profile presence from the industry came even as the cryptocurrency market crashed. It was sparked by the collapse of the so-called algorithmic stablecoin called terraUSD or UST, which saw its sister token luna drop to $0 in May.

Meanwhile, global regulators are setting their sights on the cryptocurrency industry.

WEF is the annual gathering of global business leaders and politicians that aims to set the agenda for the year.

Against that backdrop, it was the perfect time to catch up with some of the big players in the cryptocurrency industry. Here's what I learned.

There are currently over 19,000 cryptocurrencies and dozens of blockchain platforms in existence.

Blockchain is the technology that underpins these digital currencies and platforms include Ethereum, Solana and many others.

Many of the industry executives see the current state of the market as unsustainable.

Brad Garlinghouse, CEO of cross-border blockchain firm Ripple, predicted there may only be "scores" of cryptocurrencies left in the future. He said there are around 180 fiat currencies in the world and there is not really a need for that many cryptocurrencies.

Betrand Perez, CEO of the Web3 Foundation, likened the current state of the market to the early internet era, and said there were lots of "scams" and many "were not bringing any value."

Brett Harrison, CEO of cryptocurrency exchange FTX U.S., said there are "a couple of clear winners" when it comes to blockchain platforms.

You may have heard of stablecoins. They're a type of cryptocurrencies which are supposed to be pegged to a real world asset.

In practice, stablecoins like tether or USD Coin, which aim to mirror the U.S. dollar one-to-one, are backed by real assets such as currencies or bonds. They hold a reserve of these assets in order to maintain a dollar peg.

You may have also heard about the debacle surrounding a terraUSD or UST. This is a so-called algorithmic stablecoin. Instead of maintaining its peg by having a reserve of assets, it aims to mimic the U.S. dollar and maintain stability through a complex algorithm.

But that algorithm failed and caused terraUSD to lose its peg and collapse.

The crypto industry tried to warn users to make sure they know the difference between an algorithmic stablecoin, like terraUSD, and others that are backed by assets.

Everyone wants to be more more involved with crypto now, no one is ignoring the industry anymore.

Mihailo Bjelic

CEO of Polygon

The terraUSD collapse "made it very clear to people that not all stablecoins are created equal," said Jeremy Allaire, CEO of Circle, one of the companies behind the issuance of USDC.

"And it's helping people differentiate between a well-regulated, fully reserved, asset-backed dollar digital currency, like USDC, and something like that (terraUSD)."

Reeve Collins, co-founder of BLOCKv and co-founder of another stablecoin tether, said the terraUSD saga will "probably be the end" of most algorithmic stablecoins.

Believe it or not, the cryptocurrency industry welcomed the recent market crash, which saw major tokens like bitcoin fall more than 50% from their all-time highs.

"We're in a bear market. And I think that's good. It's good, because it's going to clear the people who were there for the bad reasons," said the Web3 Foundation's Perez.

This sentiment was echoed by other executives too, who say the massive rally in prices caused people to focus on speculation rather than building products.

[The] market, in my personal opinion, became maybe a little bit irrational, or maybe a little reckless to a certain extent. And when the times like that come, [a] correction is normally needed, and at the end of the day [is] healthy," said Mihailo Bjelic, CEO of Polygon.

Ahead of the World Economic Forum, European Central BankPresidentChristine Lagardesaid she thinks cryptocurrencies are "worth nothing."

It appeared to me like regulators and authorities were still antagonistic to cryptocurrencies, much like they had been over the past few years at Davos.

But executives said the thinking from regulators, for the most part, has shifted to something slightly more constructive.

"I think we've come a long way from three or four years ago when when I literally had just arrived here in the snowy version of Davos and someone said, you know, crypto is still a bad word here. That is no longer the case. So I definitely don't think 'antagonism' would be the right descriptor. I think 'curiosity,'" Ripple's Garlinghouse said.

"I think it's constantly changing both regulators, big enterprises. Everyone wants to be more more involved with crypto now, no one is ignoring the industry anymore," Polygon's Bjelic said.

In March, U.S. President Joe Biden signed an executive order calling on the government to examine the risks and benefits of cryptocurrencies. Still, there is no major cryptocurrency regulation in the U.S. and other major economies.

Garlinghouse said that he wants "clarity and certainty" from regulators.

BLOCKv's Collins, meanwhile, called Lagarde's comments "ignorant." He highlighted the tension that still exists between the cryptocurrency industry and some authorities in traditional finance.

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After the crypto crash, here's what industry experts are waiting for next - CNBC

Well, one thing is for sure: Nothing is going to be the same in the crypto market after this year.

Perhaps the most jarring example of the bearish crypto market this year has been the complete collapse of Terra (LUNA).

As you can see, its not pretty. The coin lost 98% of its value or around $40 billion, in a matter of hours.

While this drop was shocking for a lot of crypto investors (and rightfully so), it just goes to show that value destruction can happen to even the biggest cryptos out there.

The sister token to TerraUSD (UST) an algorithmic stablecoin pegged the U.S. Dollar exposed a major fault within the crypto industry: under-collateralization.

However, my team and I dont see this as fault. Instead, we see it as an opportunity of what to look for and what to avoid.

I firmly believe cryptos and blockchain in general represent some of the most promising innovations of our time. But just like the internet before it, this shift wont happen overnight.

Long-term, I am extremely bullish on cryptocurrencies. But this cryptocurrency bubble must reach its natural conclusion the same way the dot-com boom of 2000 did with an enormous crash.

While this may be the beginnings of the big one for cryptocurrencies, this crash isnt the end. Its far from it.

This is the beginning of the Cryptocurrency Revolution. Its the end of bad cryptos just built on hype and the emergence of strong ones made with world-changing tech.

We have strong cause to believe this, including using Gartners Hype Cycle. It teaches us that new technologies go through five phases:

The stages are represented graphically in the following chart.

We believe cryptos are somewhere in the Peak of Inflated Expectations phase. Big-name cryptocurrencies will begin to fail, and the mainstream media will begin writing about these failures.

Over the coming months to years, well enter the Trough of Disillusionment. This is where thousands of cryptos will fail. And several hundred billion dollars of value will be wiped out.

Investors who are smart here will make millions.

After the Trough of Disillusionment comes the Slope of Entitlement, swiftly followed by the Plateau of Productivity.The big money is made in these phases.

There, the wheat is separated from the chaff, and true visionaries and innovators in a new technology emerge.

During the internet era, this durable growth phase started in 2003. In that time, companies like Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), Facebook and Alphabet (NASDAQ:GOOGL) used the internet to create second- and third-generation products and services that would go on to change the world.

Cryptos will follow the same path.

You could do a lot worse than buying Bitcoin at this price. But theres a much bigger opportunity at hand

Indeed, you could domuch betterin several of Bitcoins smaller cryptocurrency cousins.

In fact, there are a handful of very small coins that could soar more than 31 times that of Bitcoin.

Thats right. If youre poised to make $10,000 in BTC, you could make 31 times that $310,000 in its tiny cousins.

Or if youre poised to make $100,000 in BTC, you could make $3.1 million instead.

The million-dollar question is:What are the best cryptocurrencies to buy today that have enormous long-term upside potential?These are the ones that could help you achieve total financial freedom in a very short time.

I urge you to learn about this huge story. Ill teach you about the transformative technology of altcoins. And Ill share how to leverage this undercurrent of cryptocurrency innovation to set yourself up for life-changing returns.

Right now, theres a fuse being lit under the altcoin market. And itll set off one of the largest explosions of wealth in modern history. People who invest modest stakes in altcoins will make millions of dollars.

To truly realize the magnitude of this opportunity, you must understand that altcoins are different than how most perceive them.

These assets arent fantasy internet money. And many are about to skyrocket thousands of percent.

Theyre investments in one of the most valuable, most revolutionary technologies ever created.

And theyll generate a multi-trillion-dollar tsunami of wealth for their owners.

Remember; the underlying technology behind Bitcoin and altcoins isthe blockchain.

You can think of cryptocurrency and the blockchain like a virtual ledger.

But I prefer to say blockchain technologies are justreally, really, reallyvaluable software programs.

Now, if youve paid attention to the stock market over the past30 years,you should be ready to jump out of your chair and buy altcoins with both hands right now.

Thats because software programs are the oil of the 21st century. They are one of the greatest forces for wealth creation on Earth.

In the 20th century, the discovery of oil deposits around the world minted millionaires faster than anyone could count.

It was one of the fastest, biggest accumulations of wealth in history. People went from being broke to having more money than their grandkids could ever spendvirtually overnight.

When I say software programs are of the greatest forces for wealth creation, Im not talking about conventional wealth creation. That takes 30 years to save up $1 million.

Im talking about wealth creationon steroids, where Investors can make $30 million inone year. I know that sounds outlandish, but lets look at the amazing facts right in front of us.

Bill Gates became one of the worlds richest men because of software programs. Just think about the Microsoft (NASDAQ:MSFT) spreadsheet program we call Excel.

How much time did Excel save the human race a billion years, 10 billion years?

Excel is now the worlds most popular spreadsheet program. By allowing us to automate calculations and financial analysis, it has saved us incredible amounts of time. We no longer have to do single calculations by hand.

One person running Excel can do the work of a million accountants from days past.

Software programs have incredible power. And its spread across all industries.

Over the past 30 years, software programs have created an explosion of efficiency and human productivity. Great software can help you make smart business decisions, find travel deals, talk to loved ones, and get a cheap ride home.

It has massively improved our ability to communicate, share information, complete transactions, and gather and analyze data.

Think about health care, education, transportation, manufacturing, energy production, food production, retail, banking, you name it. Computer programs have allowed us to do it all much more efficiently.

Good software has saved us so much time, money and frustration. Its no wonder its kicked off one of the largest, fastest accumulations of wealth in human history.

In 1986, computer program leader Microsoft went public. Shares are up more than 1,185% since then.

Computer program leader Oracle (NYSE:ORCL) went public in 1986 as well. Oracle founder Larry Ellison is one of the worlds richest people, worth over $90 billion.

In 1998, Larry Page and Sergey Brin founded Google and created the worlds most valuable search engine program. Both are now worth more than $90 billion each. And their early backers made billions, as well.

Software programs have become the worlds ultimate wealth creators. Thats because we all place enormous value on their ability to save us time and headaches. And its also because theyve made us massively more productive.

Which brings me to my million-dollar point.

Blockchain technology is about to unleash an epic new wave of computer program wealth.

Real altcoins arent anything like fantasy internet money, as theyre portrayed in the press. Investments in the best of them are investments in the next generation of revolutionary software programs.

Big picture, blockchain allows for disintermediation across all industries. Its arguably the most disruptive technology since the internet. And at its core is its centralized and immutable ledger.

This ledger enables innately untrustworthy entities to create trustworthy systems, all without the need for any central authority.

Blockchain enables folks to remove the middleman from legacy systems and replace them with a collective ledger.

Now why would we do that? Because middlemen are often unnecessary profit-takers.

Further, theyre sometimes subject to corruption (see: the financial crisis of 08).

By removing and replacing them with an automated and incorruptible technology, we can make todays systems and processes cheaper, faster, and more trustworthy.

The applications here are theoretically infinite. One that Wall Street is currently drooling over is decentralized finance (DeFi). With cryptocurrency, we can create a new era offinancethat doesnt involve big banks as profit-taking intermediaries.

And DeFi is the future.

After all, its intended to disintermediate banks, like Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), and Wells Fargo (NYSE:WFC). Those are multi-hundred-billion-dollar companies. The disruption opportunity is huge.

But theres a much, much bigger opportunity in disintermediating technology titans like Alphabet and Amazon, who are trillion-dollar companies.

Thats why I love the idea of dApps, or decentralized applications.

DApps are software applications built on the blockchain. And this can be anything. Think a video media application like YouTube, a driver-rider app like Uber (NYSE:UBER), a music streaming app like Spotify (NYSE:SPOT).

These apps are coded on the blockchain. And therefore, theres no central authority that runs and profits from the app, either via subscription sales or digital ads. By removing that central authority, dApps create a new generation of truly free software applications.

Oftentimes, these dApps have underlying cryptocurrencies. Theyre used as a form of in-app currency or incentive token for developers and blockchain participants.

The appreciating value for these cryptos represents the economic value of the dApp. Instead of developers profiting from digital ad sales, they make money by owning the dApps cryptocurrency. And that rises in value as more folks use the platform.

I firmly believe that dApps will disrupt everything. The future YouTubes, Ubers and Spotifys will be dApps. In fact, most, if not all, apps in the future will be dApps.

During the internet craze of the late 90s and early aughts, the companies that succeeded did something very simple.

They didnt reinvent the wheel or create brand-new industries.

They just digitized what was already workingin the physical world.

Malls were working. So,Amazondigitized malls and turned intothedigital mall.

Movie theaters were working. So,Netflixdigitized movie theaters and turned intothedigital movie theater.

The winning playbook in the dot-com boom was astoundingly simple. Find something thats working in the physical economy anddigitize it.

And the winning playbook in the Cryptocurrency Boom will be equally simple. Find something thats working in the digital economy anddecentralize it. The cryptocurrencies that dothisthe best will turn into 100X investment opportunities over the next decade.

When you shift your perspective on altcoins, you realize that theyre not fantasy internet money. Theyre investments in systems that make our lives easier, more productive, and more efficient.

Investing in the best altcoins now is like taking an early stake inAdobe (NASDAQ:ADBE) in 1998. It created the hugely popular PDF program. And the stock has soared 3,809% since then.

Thats why well be holding an emergency briefing on June 14 at 7 p.m. Eastern. Well discuss how the phenomenon plaguing the crypto markets recently could spark the minting of a new wave of millionaires.

Despite all the negative headlines weve been seeing, a new day is dawning. And a select few off-the-radar coins will emerge as the new leaders of the cryptocurrency markets.

If you want to get ahead of this phenomenon, sign up for my free Crypto in Crisis event now!

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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Understanding the Wealth-Creating Power of Cryptocurrency - InvestorPlace

By nature, Bitcoin mining is energy-intensive and relies on cheap energy to turn a profit. Bitcoin miners have started to flock to Texas because of the current goldilocks situation for cryptocurrency mining for three main reasons:

While Bitcoin mining has been criticized for being energy-intensive, Texas Governor Greg Abbott, among others, views Bitcoin mining as a solution to other related issues, such as taking advantage of untapped energy, including natural gas (such as surplus gas or associated gas) that would otherwise be flared or vented because of limited infrastructure to transport it to a destination.

Its no secret that for years oil and gas companies have struggled to solve the problem of flaring, not only in Texas but across the U.S. Unlike oil, which can be transported by truck or rail, natural gas requires pipeline infrastructure to deliver it to market. If a driller has no means of transporting its gas, either economically or because there isnt available pipeline infrastructure to do so they flare (or burn) it, and the environmental implications of doing so are substantial.

Instead, cryptocurrency miners can tap into this surplus gas, whether its flared gas or bad netbacks, and divert it to generators, which then can convert the gas into electricity and then use it to power their sophisticated supercomputers and servers. According to Argus Media, Companies see a double benefit reducing the negative impacts of gas flaring and cutting their carbon footprint. According to research from Crusoe Energy Systems, one of the largest Bitcoin miners in the U.S., the process reduces the CO2 equivalent emissions by about 63% compared to flaring. This opportunity to repurpose otherwise stranded energy and monetize it has not only been attractive to Bitcoin miners, but also to oil and gas companies to increase returns on their production while also complying with Environmental, Social, and Governance (ESG) initiativesmore specifically the E component for reducing their carbon footprint.

Regardless of the energy source for the Bitcoin miner, be it the gas that would otherwise be flared or energy sourced by renewables, the Bitcoin miner essentially behaves like a power plant by purchasing power at an agreed fixed price and owning the ability to sell the power back to the grid.

In contrast to Abbotts position that cryptocurrency mining provides financial incentives to build power infrastructure and produce more energy, his opponents argue that doing so would also trigger greater demand and stress on an already unstable power grid.

Abbotts position, however, relies on the belief that if a severe weather event occurred, such as Winter Storm Uri in February 2021, which resulted in substantial surges in power demand, miners would be forced to pause operations when ordered to do so. In other words, miners would halt their operations and return the power to the grid when demand surges. This concept is not only supported by basic humanitarian principles, morals, or ethics that power should be redirected to save human lives but also supported by the dynamic of the market itself. In the event of demand for power surgesas it did during Winter Storm Urispot power prices increase (sometimes dramatically) and therefore the miner would be financially incentivized to sell power back to the grid as opposed to consuming it.

For miners, the benefits are not exclusive to their ability to source cheap power but also the flexibility and optionality to return that power to the grid. For Texas, particularly ERCOT, the states power regulator, the ability for miners to turn off during peak demand prevents the need to turn on less efficient peak demand power plants allowing ERCOT to stabilize the grid more effectively.

According to the Texas Blockchain Council, there are at least 27 mining operations in the state with more on the way. This growth is not only attributable to the points discussed above but also to the larger crack-down on cryptocurrency mining abroad particularly in China, pushing many to flee to the U.S.

Its important to note that China is heavily dependent on dirtier energy sources such as coal, which produces roughly twice as much CO2 emissions as natural gas. Meanwhile, Texas is home to cleaner sources such as natural gas and wind. Moreover, within the U.S., Texas is a leader in the nations wind-powered electricity generation, comprising approximately 26% of the nations total net wind generatio

(Source: EIA)

Altogether these factors have incentivized and attracted Bitcoin miners to Texas with the Lone Star State becoming the fourth-highest hash rate (the measure of how much power is being supplied to the Bitcoin network) of any state, at approximately 14%.

From Rockdale, Texas, home to the two biggest Bitcoin mining companies in the world, to the first city in the U.S. to mine Bitcoin, to Fort Worth, Texas the Lone Star State is welcoming the Bitcoin mining industry with open arms!

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Cryptocurrency In Texas: Why Bitcoin Mining Is Taking Off In The Lone Star State - JD Supra

Given recent events in the cryptocurrency space, I believe it's fair for investors to question whether anything will ever turn out as good as Bitcoin (BTC 2.04%). In a moment, we'll examine why certain cryptocurrency investing theses have legitimately been dismantled recently. This underscores the need for caution when approaching this space.

Bitcoin may be down more than 50% from its high. But its market capitalization is still north of $500 billion. Therefore, many investors understandably believe it's too late to enjoy life-changing gains from buying Bitcoin today, and are looking elsewhere. If that's you, then one cryptocurrency to consider is Theta (THETA -0.55%).

Image source: Getty Images.

In recent years, developers have tried boatloads of new ideas in the cryptocurrency space. And right now, we're rudely awakening to the shortcomings of most.

Take stablecoins, for example. TerraUSD and Luna were developed to maintain stablecoin price parity with the U.S. dollar while taking fiat reserves completely out of the equation. This algorithmic system worked for a while, but a fundamental flaw was exposed and crashed the whole thing. Now other stablecoins without reserves are similarly being exploited. In my opinion, the entire concept of stablecoins is breaking down.

Consider cryptocurrency bridges as another example. Layer-1 blockchains like Ethereum and Solana speak different languages. Yet users frequently interact with multiple blockchains. Bridges are translators, going from one blockchain to another. However, hundreds of millions in value has been stolen by finding and exposing bridge flaws.

It's amazing that after a decade of innovation, we're finding that (despite its shortcomings)Bitcoin still works better than almost anything else that's been tried so far. Many novel ideas in the cryptocurrency space simply aren't working, and this should give investors pause when buying anything new right now.

Theta was created to solve a growing problem. The metaverse, synchronous livestream gaming, and higher-resolution videos all strain our internet infrastructure. And it'll likely only worsen. This is why content-delivery networks (CDNs) have growing businesses -- they speed up the internet by bringing it closer to the end consumer.

Theta could be faster than traditional CDNs because nodes are even closer to end consumers than traditional CDN infrastructure. And Theta intends to be a cheaper option as well -- traditional CDNs can be pricey.

Here's how it works: People can become network nodes by providing bandwidth and staking Theta tokens. For this service, they earn Theta Fuel (TFUEL -2.29%). Nodes sell this Theta Fuel to video platforms (like Theta.tv and Samsung VR). Video platforms pay Theta Fuel as videos are hosted and streamed. Some Theta Fuel is burned in the transaction.Some goes to end users to incentivize them to watch videos.

There are different levels for nodes, the most exclusive of which is the Enterprise Validator Node. Theta has some big players at this level, including Alphabet's Google, Sony, and Samsung. These companies are dreaming up big ideas. But these ideas will be bandwidth hogs. Therefore, it's clear why they're interested in Theta.

By the way, these tech giants might be tempted to develop their own solution to the faster-internet problem. But Theta's idea is patented, which might be why they're choosing partnership instead.

Theta's primary use case right now is video streaming. But the project intends to launch the fourth iteration of its main net before the end of the year. This new version is intended to open up new use cases for Theta, including web hosting.However, different applications have different blockchain needs, which is partly why we have so many layer-1 blockchains to begin with. Different chains solve different problems.

Theta plans to allow greater developer flexibility with subchains. Developers can build what they need. But all subchains are going to speak Theta's language, and will all use Theta Fuel as a standardized gas token. This eliminates the need for potentially problematic bridges.

Image source: Getty Images.

Theta is certainly a big idea that could be extremely valuable. But don't think I'm some crypto clairvoyant predicting life-changing gains in Theta -- as recently as last month, I believed Terra's Luna was a good buy. And it went to zero.

However, even if I'm a blind squirrel, I might still find an acorn occasionally by accident. Therefore, Theta skeptics here should focus on shortcomings in the message, not the messenger. And indeed, there's reason to approach Theta with caution.

I fear Theta's success is being driven by the wrong things so far. For this project to be viable long term, it doesn't matter which players are involved at the top. To the contrary, end consumers need to actually beusing it -- watching videos, etc. However, there isn't much content available for streaming now. And the connection can be spotty, despite its mission to improve delivery speeds.

Weak user adoption could be because of node incentives. While Google and Sony are at the Enterprise Validator level, the network needs thousands more edge nodes to truly be better than traditional CDNs for everyone. Edge nodes earn Theta Fuel. But this token is down about 90% from its all-time high. Simply put, the incentive to provide edge-node services may be too weak. And weak incentives keep new nodes on the sidelines, and leave connection speeds wanting.

That said, maybe a simpler explanation is it's still very early with Theta, and user adoption will come.

To close, I consider cryptocurrency to be a speculative investment, worthy of only a very small percentage of a diversified investment portfolio. Within that small portion of the portfolio, I diversify my crypto holdings, but recognize many of the more obscure projects will likely fail. Theta could be one of those failures, which is why one shouldn't buy much here. However, I do like Theta more than most cryptocurrencies because of its potential and progress to date.

Excerpt from:
Missed Out on Bitcoin? Buy This Cryptocurrency Now - The Motley Fool

Laser-Eyed Folks Be In Triage Right Now

FG Trade/E+ via Getty Images

DISCLAIMER: This note is intended for US recipients only and, in particular, is not directed at, nor intended to be relied upon by any UK recipients. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Cestrian Capital Research, Inc., its employees, agents or affiliates, including the author of this note, or related persons, may have a position in any stocks, security, or financial instrument referenced in this note. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice. Companies referenced in this note or their employees or affiliates may be customers of Cestrian Capital Research, Inc. Cestrian Capital Research, Inc. values both its independence and transparency and does not believe that this presents a material potential conflict of interest or impacts the content of its research or publications.

To answer this question, first, we shall declare our own stance on cryptocurrencies; you can use that to interpret the rest of this note which will help you decide whether this work is of any use to you!

In short, whilst we are no spring chickens here at Cestrian, neither are we boomers. This gives us, we think, some degree of neutrality as regards the utility and longevity of crypto as an asset class. Nobody here uses crypto as anything other than an investable, tradable security, because no one knows why they would need to actually ever spend it. In consequence, nobody here has ever owned crypto in its native form, preferring to gain exposure to it through funds (Grayscale Bitcoin Trust (OTC:GBTC), Grayscale Ethereum Trust (OTCQX:ETHE), ProShares Bitcoin Strategy ETF (BITO)) or stocks (Coinbase (COIN) at present; Marathon Digital (MARA) and Riot Blockchain (RIOT) in the past). (We can give you all kinds of high falutin reasons for this, but in the end, it's because we just know that we will lose our cold wallets and be that guy combing through the municipal landfill to find what was meant to be his future Lambo but is now just a soggy USB stick covered in carrot mush).

To us, the asset class is something of a curio. We neither see immediate personal utility, so we aren't true believers; nor do we think "bah humbug, this scam will end badly for those pesky kids". Mainly though, as career tech investors we long ago learned that writing off the new-new thing is usually a mistake. So in investing generally we lean toward growth and our interest in crypto is from that angle.

Amongst the laser-eyed community, you will find a clear division drawn between "fiat currencies" and "decentralized crypto". Fiat, they argue, is a scam, being government-controlled, deflatable at will by central bank policy, and so forth. Old folks on the other hand believe that crypto is no more than a grand pump & dump scheme which will inevitably end in disaster because the fundamental value of any particular crypto is zero.

Neither of these extreme views is quite true, of course. The value of any currency is formed only by consensus, just as is the case for the value of any particular security. What is the correct price of the SPDR S&P 500 Trust ETF (SPY)? There is no correct price! The correct price is what market participants are agreeing to pay one another at the current time. You can have an opinion about what market participants may decide to pay one another in the future, and you may invest or trade on the basis of your opinion, but nothing about this calculation is based on any kind of immutable physical reality; it's just opinion.

Actually, the common term 'fiat', usually used to mean currencies not pegged to physical goods like gold, can also be dispensed with here because, what is gold worth? Again, it's just worth what folks agree to pay one another at any particular time.

So let's use a different lens. Let's talk about state-backed currencies like the dollar or the euro or the yen, etc., and then about crypto.

The rise of state-backed currencies was, as the name suggests, a function of the rise of the nation-state. And the rise of the nation-state was a function of the ability of those who sought to obtain and maintain political power to be able to centralize and enforce that power through actual or threatened violence which they deemed to be the sole form of legitimate violence. If you want to read the long-form version of this theory, you could start by reading the OG, Thomas Hobbes, whose Leviathan may have been written in the seventeenth century but remains a pretty darn accurate portrayal of what the state is and why. If you're busy, however, just watch the Clint Eastwood western, Hang 'Em High, which makes all the same points.

State currencies are only valuable because somebody says so. In the Middle Ages, the sovereign. Today, federal governments and market participants.

Cryptocurrencies are only valuable because somebody says so. Since Satoshi never did wield any centralized power, Bitcoin's (BTC-USD) viability comes down to its market participants.

To us, it's that simple.

The question is, will market participants decide that crypto will be worth more, or less in the future? The whole ecosystem just got slammed as risk appetite was reduced, and the minor coins in particular have been roadkill. We suspect most of them will remain that way because they lacked the critical mass to be self-sustaining when trouble hits. Per Hobbes, life has indeed proven nasty, brutish, and short for many of them.

Our own interest is in Bitcoin and Ether (ETH-USD), the two major cryptos by market capitalization. So far they have been damaged by the selloff but no more than your average too-hot-to-handle growth stock. So let's dig into these some.

Now for some other out-loud statements of our own prejudice. We believe that at a minimum, two cryptocurrencies will survive and probably prosper long term.

Bitcoin, because it is the closest to the gold standard amongst crypto. It is truly decentralized, doesn't have a guru (or furu!) type leader espousing its potential to change the world or change your ability to fund your kids' college fees, and it has been around a long time now. Institutions have started to invest in Bitcoin in reasonable number and they have most likely done so as they follow the changing demographic of their clients. If GNUs Not Unix, Bitcoin Is Not Beenz.

And Ether, because although it most certainly does have a founding guru it also actually has utility insofar as you need it for 'gas fees' for transactions on its blockchain... and crucially its blockchain might become a major transaction bus for the Metaverse even as the Metaverse goes mainstream. And by the way we very much believe that the Metaverse is a thing and going to be more of a thing.

Crypto in our view can only be invested in or traded on a technical basis, specifically because it lacks fundamentals. Now, in our own work, we find that trying to invest or trade on technicals is risky in the extreme when dealing with niche assets - which for us means most if not all the altcoins - because the crowd behavior that technical trading methods attempt to measure and predict doesn't take place in a way consistent with those technical methods. Whilst all technical methods differ, generally speaking, they work best in highly liquid instruments that are freely traded by both institutions and retail alike. We like to use the Elliott Wave / Fibonacci method in our work - not because we believe it is the unique or supremely valid method but because we've found success with it. And the more liquid, the larger, the less related to fundamentals of the instrument, the better we find the method works. Take SPY - the S&P500 proxy ETF - for instance. Since the 2016 lows, we find it has moved with textbook clarity according to wave & Fibonacci principles - the extensions up and retracements down have (so far! let's see how the rest of 2022 plays out) been very predictable in this system. You can open a full-page version of this chart, here. (And before you ask, yes we did call the bottom in March 2020 and yes the top in November 2021, in our subscriber service Growth Investor Pro where those articles can still be found).

SPY Chart (TradingView, Cestrian Analysis)

So let's take a look at whether either Bitcoin or Ether can be traded using this method. Best guess is that Bitcoin suits the method better than Ether, because it is larger, better known and has more institutional involvement.

First, the past. From the 2018 lows, BTC puts in a Wave 1 up followed by a Wave 2 down that troughs a little below (our) ideal 0.786 retracement. It then puts in a monster Wave 3 up peaking at the 5.618 extension of Wave 1, which is crazy and rarely seen in our world. For comparison, the recent highs in SPY, the Invesco QQQ ETF (QQQ) and ARK Innovation ETF (ARKK) represented the 1.618, 2.618 and 3.618 extensions of their respective prior wave 1s up. Yes, that spooked us out too but it's true. So 5.618 up is truly extended and investors would have reasons to be fearful at that point. Then comes a Wave 4 down troughing at a textbook 0.618 retracement of that Wave 3 - and then a new Wave 5 higher that peaks just above the prior Wave 3 high. So from the end of 2018 to early November 2021, we can say, yup, this method seems to work quite well.

BTC Chart (TradingView, Cestrian Analysis)

Let's look at the 'hard right edge' now though. Can we use the method to forecast what happens next? In this method, at least as we use it, we like to find a Wave 1 up and a Wave 2 down that conforms to type (specifically a 0.786 retracement of the W1 up) to give us confidence in projecting the period to come. We don't have that yet in BTC. We think that BTC is in a 'larger degree' Wave 2 down, like this (full page version, here)

BTC Chart II (TradingView, Cestrian Analysis)

So far that Larger Degree W2 down found support at the 0.618 retracement of the Larger Degree W1 up. That might prove to be the bottom of the wave but (1) the 0.618 level was breached once already and (2) that A, B, C corrective pattern you see in light blue - if you want a really high confidence statement to say a correction has ended, you want to see A = C, i.e., the price drop in the A-leg is the same as the price drop in the C-leg. We don't have that yet. A=C would put BTC in the mid-12000s. Countering that you could say, well, that's below the 0.786 retracement level (17,200) so that's not likely - but countering that you could say, well, the last substantial W2 down in BTC - the drop into the Covid crisis - troughed below the 0.786 too. Because crypto be like that - super volatile.

Supporting that analysis would be - look at the volume profile. The first high volume node (where a whole lot of volume was transacted) doesn't start until the 14,200 area - that will likely prove stronger support than the present price which has nothing but low volume nodes around it (indeed the whole move up from the mid-14ks to the high 60ks can be seen to be a fairly low-volume exercise, which can explain why the instrument was so easy-up as well as why so easy-down).

Our conclusion on BTC for now is: we do believe it will ride again, we aren't sure the selling is done yet, and whilst we hold some BITO recently acquired, we will likely take short term profits should they arise rather than trying to play long-longtime from here. If the 0.618 retrace holds firm then we would change our view but our gut is, a bear rally now, then another leg down, then a true move back up.

Ether?

Ether Chart (TradingView, Cestrian Analysis)

It may amuse you to see exactly the same pattern as BTC! The Wave 3 up was an even crazier extension but the big Wave One up and the big Wave Two down are now at the same place, i.e., trying to find support at that 0.618 retracement of the larger degree wave one up (that means around 1867 may prove to be of support) but with risk to the downside because the A-B-C correction hasn't concluded (yet) at A=C. If A=C that puts ETHUSD at around 800, again below the 0.786 retracement. So for Ether we think - there can most certainly be some short term upside but speaking for staff personal accounts we will probably not be treating that as a real move up until such time as support is really proven, i.e., with multiple retests, the rest of the market also moving up, etc.

Our own view is that Bitcoin and Ether are here to stay and that they are investable. If you were minded to open new positions in both - directly or via proxies such as GBTC and ETHE - we can see the sense in starting now but we would suggest not betting the farm, instead waiting to see if this is just temporary respite from selling until a lower low forms support.

If we got a 0.786 retracement in these two cryptocurrencies, we would be much more inclined to start layering in bigger allocations in the hope of enjoying the next major ride upwards.

Cestrian Capital Research, Inc. - 23 May 2022

Original post:
Is Now A Good Time To Invest In Cryptocurrency? - Seeking Alpha

The attack against the Ronin Network in March was quickly speculated to be one of the largest cryptocurrency hacks of all time. Approximately $540 million was stolen from the cryptocurrency and NFT games company in a combination of USDC and Etherium, with $400 million of the stolen funds owned by customers playing the game Axie Infinity.

This attack was the latest in a string of thefts perpetrated against crypto and should be a jolt to both the digital asset and cybersecurity communities to bring the security of cryptocurrencies into line.

A History of HeistsThe current vogue of large-scale crypto heists goes as far back as the 2014 Mt. Gox hack (another cryptocurrency exchange built around a game, Magic: The Gathering), which went into bankruptcy after losing $460 million of assets.

However, the trend has been gathering pace. In the months leading up to the Ronin Network attack, cybercriminals stole nearly $200 million worth of cryptocurrency from the crypto trading platform BitMart, attacked 400 Crypto.com users, and orchestrated NFT-related scams, to name but a few incidents.

There is often an uncomfortable tendency to see these attacks as something that takes place in isolation in a remote part of the Internet whenthey actually have a huge impact on thousands of people. Axie Infinity, for example, has millions of players around the world, and in the wake of the Ronin Network attack,regular users reported losing tens of thousands of dollars. In some cases, this was their livelihood, with many players in the Philippines playing to win digital assets as a full-time job.

Crypto Goes MainstreamThis demonstrates how digital assets have become more deeply ingrained into our society since the Mt. Gox hack. Cryptocurrency is now used by a far broader cross-section of the population (13% of Americans traded crypto in 2020), major companies now accept it as payment (such as Tesla), and nations have integrated cryptocurrencies into their economies.

El Salvador famously became the first country to adopt Bitcoin as an official currency in 2021, but many countries are now looking to join the party. The UK, for example, recently announced its intention to become a "global hub" for the crypto industry, proposing new regulations for stablecoins and even an NFT backed by the Royal Mint. President Bidens Executive Order on Digital Assets, released in March, also acknowledged the growing role of cryptocurrencies in the US economy.

The Knock-on Effects of a HackAs digital assets become deeply ingrained into our lives, the attacks against them have wider societal impacts. For example, crypto is the currency of choice for cybercriminal activity and the Dark Web, including ransomware attackers, malware operators, scammers, human traffickers, dark-net market operators, and terrorist groups.

Their vulnerability and the ease in which they can be laundered therefore contributes to the coffers of cybercriminals. An analysis of wallets controlled by cybercriminals suggested that at least $8.6 billion of cryptocurrency was laundered in 2021. There is also evidence of stolen cryptocurrencies funding hostile nation-states, with North Korean groups reported to have stolen $400 million of cryptocurrency last year, potentially to offset financial sanctions.

This criminal activity also creates a burden on law enforcement around the world. In 2021, the Department of Justice launched the National Cryptocurrency Enforcement Team (NCET), focusing specifically on crime involving digital assets. In one single seizure this year, the task force obtained 94,000 Bitcoin ($3.6 billion), demonstrating the scale of the illegal market it is trying to tackle.

Security and RegulationFirst, crypto companies need to improve their cybersecurity fast. The Ronin Network admitted that it took six days to notice that a hacker had exploited a security flaw and stolen $540 million worth of cryptocurrency. This level of security is unacceptable. If these organizations are asking users to trust them with assets, they must provide the security to protect them. If they dont invest in security, the attacks will continue and users will very quickly lose confidence in these platforms.

Second, the increasing severity of these attacks supports the argument that crypto companies require greater regulation. Regulated financial institutions cannot afford to get away with the loss of millions in assets. Of course, attacks do happen, but regulations hold the security of regulated institutions to a sufficient standard that losses are mitigated. When these standards are not met, there are consequences put in place by the regulators.

We have to eliminate the perception that crypto hacks are inconsequential, only affecting those at the margins of society. They are not: Thousands of people are affected directly, with ever more joining the cryptocurrency world every day. Moreover, with cryptocurrencies funding the criminal community, these hacks will increasingly impact everyone whether you directly engage with digital assets or not.

Continued here:
Crypto Hacks Aren't a Niche Concern; They Impact Wider Society - DARKReading

Crypto Crash News and Top Cryptocurrency Prices Today: The global crypto market cap has crashed again to $1.26 trillion, a day after showing some signs of recovery. For the last several days, crypto market cap has been stuck in the $1.24-$1.31 trillion range, indicating the struggle to break beyond this barrier.

On Monday, the global crypto market cap had jumped to $1.31 trillion, rising 3.66% over the last day, as several top crypto prices also witnessed upward movements. However, Mondays crypto gains have vanished over the night, data on CoinMarketCap at the time of writing (May 24, 7.30 am) shows.

The global cryptocurrency market volume over the last 24 hours increased 37.22 percent to $84 billion. The total volume in DeFi was $9.62 billion, which is 11.46% of the total crypto market 24-hour volume. Stable coins volume was $73.70 billion, which is 87.74% of the total crypto market 24-hour volume.

Bitcoin price fell below $30,000 again, decreasing by over 3 percent in the last 24 hours. Meanwhile, Bitcoins dominance as top crypto asset also decreased by 0.36% to 44.22% over the day. Overall Bitcoin price has decreased by 2.44% in the last 7 days. At the time of writing, Bitcoin price was $29,227.

The crypto market struggled to stay in the green as sellers dominated the market to open the week. Tether has paid $10 billion in withdrawals since the crypto market which indicates large-scale liquidations across the crypto market by the investors to recalibrate their portfolio, Shivam Thakral, CEO, BuyUcoin, said.

The crypto market is expected to stay in a bear phase for some time and most the investors will stay in a wait and watch mode, he added.

Edul Patel Co-Founder and CEO of Mudrex, said, Bitcoin and other cryptocurrencies rallied on Monday after a well-known fashion brand Balenciaga announced to accept crypto payments but fell later in the day. BTC is currently trading at US$29,200, which is the lowest since January 2021. It is likely that BTC may break below the current level testing its support once again.

Since April, BTC has been on a bearish consolidation due to several macroeconomic factors and Terras collapse adding to it. It seems like investors and institutions have paused and are a little hesitant to return to the market, Patel added.

Several top crypto prices have dropped in the last 24 hours. Take a look:

Ethereum (ETH): Ethereum price decreased by 2.17% as it once again dropped below the $2000 mark to $1985 in the last 24 hours. In the last 7 days, ETH price has decreased by 2.50%. It is currently ranked second largest crypto asset in terms of market capitalisation.

Binance (BNB): Binance Chain coins price increased by 1.89% to $325 in the last 24 hours. In the last 7 days, BNB price has increased by 8.26%. It is currently ranked as fourth biggest crypto asset in terms of market capitalisation.

XRP: XRP coins price decreased by 2.33% to $0.4106 in the last 24 hours. In the last 7 days, XRP price has decreased by 4.38%. It is currently ranked as 6th biggest crypto asset in terms of market capitalisation.

ALSO READ | Will crypto rise again in 2022 after crash?

Solana (SOL): Solana price decreased by 4.66 to $49.71 in the last 24 hours. In the last 7 days, SOL price has decreased by 9.06%. It is currently ranked as 9th biggest crypto asset in terms of market capitalisation.

Cardano (ADA): Cardano tokens price decreased by 4.07% to $0.5171 In the last 24 hours. In the last 7 days, ADA price has decreased by 8.02%. It is currently ranked as 8th biggest crypto asset in terms of market capitalisation.

Popular memecoin Dogecoins (DOGE) price decreased by 1.9% in the last 24 hours. DOGE is currently ranked 10th in terms of market capitalisation. The price of DOGE at the time of this report was $0.08397.

Meanwhile, prices of Polkadot (DOT) and Avalanche (AVAX) decreased by 0.34% and 5.93 per cent in the last 24 hours respectively. DOT and AVAX are currently ranked 11th and 13th on CoinMarketCap. Polygon (Matic) price decreased by 3.27% to $0.6463 in the last 24 hours. It is currently ranked 17th on CoinMarketCap.

(Cryptos and other virtual digital assets are unregulated in India. They are considered extremely risky for investment. Please consult your financial advisor before making any investment decision)

Read the original:
Crypto Crash Update 5/24: Top cryptocurrencies fall again; Bitcoin, Ethereum, Solana, Cardano in the RED - The Financial Express

Bitcoin illustrationGetty Images

The Fed said 46% of American adults who used crypto as an investment last year had annual income of $100,000 or more.

Meanwhile, 29% of crypto investors had incomes of $50,000 or less, according to the Economic Well-Being of US Households in 2021 report.

Overall, 11% held crypto as an investment, 2% used it to buy something, and 1% used it to send money to friends or family.

Close to half of US cryptocurrency investors in the US last year had high incomes, the Federal Reserve said in a report Monday.

According to the report on the Economic Well-Being of US Households in 2021, said 46% of American adults who used cryptocurrencies only as an investment made $100,000 or more annually, while 29% of investors had an income of $50,000 or less. The Fed's prior report didn't include data on crypto usage.

Overall, 11% of US adults held crypto as an investment, while 2% used it to buy somethingand 1% used it to send money to friends or family.

The findings coincide with last year's massive crypto rally, which saw bitcoin soar as high as $69,000. But the sector has been slammed this year amid a sell-off in risk assets overall.

While investors made up a larger share of crypto users, the Fed reported that roughly 60% of those using cryptos for payments made less than $50,000 annually, compared to 24% for those making $100,000 or more.

And those using cryptos for payments were less likely to have access to mainstream financial tools: 13% of these users did not have traditional bank accounts and 27% lacked credit cards.

Read the original article on Business Insider

Original post:
Nearly half of US cryptocurrency investors last year had six-figure incomes, the Federal Reserve says in a new report - Yahoo Finance

In 2009, someone known only under the moniker Satoshi Nakamoto released what went on to become the first cryptocurrency. Bitcoin is a form of decentralized, digital currency, which exists solely online as ones and zeroes, and is completely untraceable, and unregulated by any central authorities (banks, governments, etc.).

In the years that followed, Bitcoin went from what many considered a passing fad, or worse a waste of money, to one of the most popular investment options in the world. Today, there are very few people who are completely unfamiliar with the crypto market, and not just in Europe and America too. Cryptocurrency has made the rounds around the world, and has become embraced in Asia, Africa and South America. In fact, in 2021, El Salvador became the first country to accept Bitcoin as legal tender in the country.

In the dozen years since Bitcoins invention, the crypto has become accepted in the mainstream, and this acceptance has led to quite a bit of changes in various industries. In this article, we are going to take a look at a few industries on which crypto has had a major impact.

The iGaming Industry

The gambling industry has changed quite a bit in the 21st century. For one, the vast rise in popularity of online casinos like uudetkasinot.com, has made it so gambling games are a lot more accessible to most folks. This availability makes it much easier for gamblers to play their favorite games much more frequently, as these websites are often times accessible through any electronic device.

Another major change, is the embracing of bitcoin on the part of most casinos, both online, and land-based. Brick-and-mortar casinos the world over have begun accepting crypto trades in exchange for chips, and many have even begun to offer crypto-based withdrawals. The same is true for online casinos, some of which have specialized in nothing but Bitcoin deposits and withdrawals. These so-called Bitcoin Casinos (or Crypto Casinos) are becoming all the rage in the gambling world.

The Shopping Industry

Another major industry, which has experienced a massive change thanks to bitcoin, is the shopping industry. Shopping outlets all over the United States (and the world in general) have decided to accept different cryptocurrencies, though Bitcoin remains the most popular.

One industry that has especially embraced crypto, is the online shopping industry, with online shopping websites like AliExpress embracing payment from many different cryptocurrencies, most notably Bitcoin, Ether, etc.

The Tech Industry

It wont come as much of a shock to some of you, to hear that the tech industry has been hugely changed by Bitcoin. After all, cryptocurrency has its roots in computer programming and economics. Tech giants, like Microsoft, have begun to dabble in the crypto market, and some have decided that cryptocurrency might even be the way of the future, and thus have begun to accept crypto-based payments. On top of that, many tech companies have seen major success in the past decade, as theyve made blockchain design and maintenance their top priority.

See the original post:
The Impact that Cryptocurrency Has Had On Various Industries - FinSMEs