Is Ethereum left and Bitcoin right? Cointelegraph Magazine – Cointelegraph

Hacktivist Bitcoin developer Amir Taaki took aim at Ethereum co-founder Vitalik Buterin on Twitter recently for essentially writing off smart contracts inventor Nick Szabo as a right-wing crank.

Taaki wrote that this sort of attitude was typical of an Eth[ereum] culture which is about sparkling burner parties, privileged digital nomads, microdosing LSD, sex orgies and social-justice / vague doing-good.

Pretty much everyone had the same initial thought: Why arent I getting invited to these parties?

But Taakis comments also highlighted the political divisions between Ethereum and Bitcoin. Is it really as simple as Bitcoiners lean to the right and Ethereans lean to the left?

You can make up your own mind about Nick Szabos views, thanks to this obsessively curated list of his tweets. Buterin characterizes Szabos utterances as bad faith arguing and incholate yelling. He appears to regret naming a denomination of Ethereum after Szabo.

But Taaki, who is British-Iranian, took exception to white-leftypol Ethereans canceling Szabo because he doesnt fit their worldview and wrote in a tweet that they reminded him of white left (fake socialists) on an anti-rascist crusade.

Its neo-colonialist white saviour attitude, he wrote. Eth is exactly this.

To be fair, Ether isnt exactly like that, but there are definitely some elements that might lead you to draw that conclusion. To take one example, the man sometimes referred to as Ethereums chief economic thinker is self-proclaimed social liberal radical Glen Weyl, who founded RadicalxChange. Thats the sort of progressive, nonprofit outfit that thinks the No. 1 most crucial thing to inform new visitors to its website is not what it actually does some sort of think-tank stuff? but that it stands with the social justice movements Black Lives Matters and Global Pride. Buterin is a big fan of Weyls and sits on the board of RadicalxChange. The pair have held lengthy email exchanges about his societal engineering ideas, which include imposing a tax to penalize using standard white English or taxing masculinity to subsidize femininity. A proponent of a Universal Basic Income and quadratic voting, Weyl gave a speech at Ethereums DevCon that he described as a rally cry against extreme individualism and capitalism. At its conclusion, he explicitly asked for questions from women and minority groups first. Of course, Ethereum conferences are just as full of nerdy white men as the rest of crypto, but at least the first guy to ask a question had the good grace to apologize for that fact.

Try that kind of left-wing malarky at a meet-up for hardcore Bitcoiners, though, and you could bring a firestorm down on your head, as the author of Mastering Bitcoin: Unlocking Digital Cryptocurrencies, Andreas M. Antonopolous, found out when he asked his audience for a few suggestions of podcasts he could appear on that werent the stereotypical white, male, finance-focused podcasters he talks to endlessly, as he wanted to reach out to a broader audience.

This seemingly innocuous request outraged his fanbase (which may have some crossover with the Gamergate crowd) and caused a Twitter storm, with users complaining about how Bitcoin doesnt care about identity politics and getting their noses out of joint at his outrageous rejection of meritocracy by trying to chat to some different people. Even Bitcoin icon Hodlonaut questioned his focus on race and gender.

Antonopolous was unrepentant. I will not apologize for being an SJW, he wrote, characterizing the backlash as: A lot of whining because I didnt allow the implicit bias to drive 90% of my podcast interviews but only 75-80%. Oh the horror.

Bitcoiners and Ethereans clearly have differences, which is why Crypto Twitter is beset with largely pointless debates about supply gate and pre-mined coin scams. When Peter McCormack, the host of What Bitcoin Did, asked his followers What is BTC v ETH really about? influencer American Hodl summed it up as: Liberals do Ethereum and Conservatives do Bitcoin.

Its not quite that simple of course: Plenty of left-wing people are into Bitcoin, and plenty of right-wing people like Ether. Even Weyl cant be easily boxed into the left or the right, as he somehow manages to combine his love of socialism with a love of right-wing libertarian hero Ayn Rand. As Bitcoin.com founder Roger Ver told Cointelegraph Magazine: Both camps are so big now that there are people from every political persuasion involved now.And politics understandably comes a distant second when theres money to be made. As DeFi influencer Degen Spartan said when explaining that hes not a Bitcoin maximalist or an Ethereum maximalist: Im a profit Maxi.

But still, there is a widespread perception that those with conservative or right-wing ideas are more drawn to Bitcoin and those of a more progressive bent support Team Ethereum. A CoinDesk survey of 1,200 crypto users in 2018 lent weight to this idea, finding that 55% of Ethereans tended left, while 55% of Bitcoiners tended Right. A further 3% of Bitcoiners claimed to be nihilists, which may explain all those Pepe the Frog crypto edgelords on 4chan.

(As an interesting aside, the more hard currency focused the coin, the more right wing, with Monero coming in at 57% right wing, Bitcoin Cash (63%) and Litecoin (69%). The DASH guys must have cupboards full of MAGA hats and Tiki Torches because 78% of them are on the right.)

Quantum Economics founder Mati Greenspan says there are philosophical differences between the two leading cryptocurrency projects that help explain these tendencies.

It makes sense given the nature of what the coins do, he said. I would assume that most people that are into Bitcoin are people who advocate for less government intervention and especially less government intervention in money simply because thats what Bitcoin was built for.

As far as Ethereum is concerned, that has many more practical applications that dont necessarily have to do with governments or banking or even finance in general. It appeals to anyone whos into technology.

Greenspan cautions that hes not basing his views on hard data but says that from what hes observed: People who prefer Bitcoin are the type of people who are kind of set in their ways, or that are of a strong mind. Whereas people who use Ethereum and other altcoins are generally going to be more people who are more open to new ideas.

Professor David Golumbia is the author of The Politics of Bitcoin: Software as Right-Wing Extremism. In the polemic, he argues that not only was Bitcoin borne out of the right-wing libertarian culture of the cypherpunks but that the technology itself is inherently right wing.

Theres little doubt that key figures in Bitcoins prehistory such as Eric Hughes, Timothy C. May and John Gilmore were staunch libertarians. They opposed big government and taxation and worried about privacy, the rise of the surveillance state and freedom of speech.

Golumbia says the ideas of right-wing Austrian economist Murray Rothbard, who coined the political philosophy anarcho-capitalism, were also very influential to Bitcoins early days. That extremely libertarian form of politics that advocates for the elimination of centralized states in favor of self-ownership, private property and laissez-faire style free markets obviously will sound familiar to anyone who has been around Bitcoiners.

It was born out of anarcho-capitalism, Golumbia says of Bitcoin. Rothbard has these ideas that there is a single thing called the State whose only point of existence is to enslave people. The only free individual is somebody who is free of government. And these people believed and they still believe that it was possible to use encryption technology to hide oneself from the state.

In Golumbias view, Bitcoin was designed to become the currency of this new realm, money outside of the control of the state. (Golumbias theory runs into trouble attributing this political ideology to Satoshi Nakamoto directly, and he barely mentions him in our hour-long chat.)

Needless to say, Golumbia is not a fan of the whole culture. He calls May the author of the Crypto Anarchist Manifesto a pretty racist, sexist, very disturbing guy and paints a portrait of the cypherpunk mailing list as a sort of alt-right techie version of the Tea Party.

It is really loud and vicious when you read it, full of hate directed at a lot of people. It intersects with a lot of other anti-government movements we have in the world, he said.

Needless to say, this view is highly contested. McCormack called it insulting when I described it to him.

They were certainly paranoid, and I think legitimately paranoid, said McCormack. But I wouldnt say right wing at all. I would almost imagine a lot of them apolitical. They just wanted to build a better world.

I consider them a group of freedom fighters who recognize the overreach of the state, the risks associated with lack of privacy, increases in surveillance, and abuse of the money system by corrupt politicians. They wanted to build tools and technologies to free themselves.

I think if anything, theyre a group of fucking heroes.

Bitcoin.com founder Roger Ver said that when he got involved in 2011, the early Bitcoiners were all libertarians with a strong belief in free markets. He doesnt see such views as right wing. Just read about the thoughts of early Bitcoiners like myself, Ross Ulbricht, Gavin Andresen, and others, he said. We were all libertarians, not conservatives or right-wingers.

Voluntaryism which is an offshoot of anarcho-capitalism was what motivated me and others to get involved and promote Bitcoin early on.

Bitcoin was made up and promoted by a bunch of anarcho-capitalists originally. Later, its development community was taken over by a bunch of blue-haired San Francisco leftists types. Most of the AnCaps have moved on to coins like BCH, or ETH.

Kain Warwick, the founder of Ethereum-based DeFi protocol Synthetix, said that no one involved in the early days of Bitcoin could correctly be called a conservative.

You couldnt be a conservative in the sense of trying to maintain the status quo in the legacy financial system. You had to see some problem that you thought needed to be solved in order for Bitcoin to make sense to you, he said.

Meanwhile, in San Francisco, those blue-haired leftists were gaining numbers. Buterin describes two strands of political thought growing together in Bitcoins early days. In the crypto space, as early as in 2010 or 2012, there were a lot of people interested in libertarianism, and a lot of people interested in socialism, Buterin said. There was this kind of idealistic energy.

While the two strands can be reconciled, Ethereans approach to rapid technological progress and evolving codebases is much more difficult to reconcile with Bitcoiners who are invested in protecting the fundamental properties of Bitcoin. successfully merge. As Bitcoins ideology around hard money, fixed supply, decentralization and security became stronger, the Bitcoin community became more resistant to changes to its fundamental properties. Something Ver discovered during the damaging block size debate that led to the creation of Bitcoin Cash.

Bitcoin Magazine co-founder Buterin also ran up against an unwillingness to experiment when he argued in 2013 that Bitcoin needed a scripting language for application development. When he failed to get support, he launched Ethereum in January 2014.

Viewed this way, the BitcoinEthereum battle is not so much Left vs. Right, but Progress vs. Stability. If, as Warwick said, no one in the early days of Bitcoin could be conservatives, then have Bitcoiners now become the new conservatives set on maintaining the crypto-financial order?

Jonathan Haidt, in The Righteous Mind: Why Good People Are Divided by Politics and Religion, makes the point that Liberals and Conservatives are both largely correct about their central concerns they just prioritize different values and dont understand where the other side is coming from. The same is probably true for Bitcoin and Ethereum. For many Bitcoiners, its all about hard money, stability, immutability and security, so theyre unwilling to risk whats been built. Why improve on perfection? That makes Ethereum a fail. But for many Ethereans, its all about experimenting in the name of making technological progress, which makes Bitcoin a fail. If a few things get broken along the way like the DAO hack, ICO scammers and DeFi smart contract bugs thats just the cost of progress.

Id rather avoid left and right wing, said Bitcoiner McCormack. Id rather say Bitcoin is conservative; therefore, its likely to attract more people with conservative viewpoints.

Move slowly. Dont fuck this up. This is the best money weve ever had. Its slowly, slowly simple, simple.

And yes, Ethereum you could argue is McCormack clearly couldnt bring himself to call Ethereum more progressive. Instead he said: I think Ethereum people just want to go out and experiment, kind of like scientists, experimental technologists. They want to do a lot more with it.

Warwick is one of those scientists who is comfortable with change. Synthetix began life as a stablecoin project, morphed into synthetic derivatives, and continues to reinvent itself once or twice a year as new ideas come along.

He attempted to integrate Bitcoin with online payments in 2012 but saw the technology as a starting point, rather than a finished product.

People who wanted to opt out of the legacy financial system, a lot of those people, you know, ended up in Bitcoin, he said. And then people who wanted to kind of extend the power of Bitcoin and extend the potential of what could be built ended up in Ethereum. If you didnt end up in Ethereum, almost by definition, you were someone who was kind of less open to innovation and more conservative.

Greenspan makes the point that Bitcoin is also much bigger, which limits its ability to turn on a dime.

Bitcoin is a whale compared to Ethereum, which is more like a fly but you know, flies can move a lot faster than whales can, he said. They can do different things. Sometimes theyll keep running into a window in the hope of finding an exit, whereas whales are pretty predictable. Theyre not going to suddenly turn around and go the other way.

Warwick believes that the Ethereum community embraces more progressive politics.

The Crypto Twitter that Im in is very deep Ethereum Twitter, he explained. There is an awareness of societal issues outside of just financial infrastructure. I think that people are much more open to these things and some questioning of the structure of society and how its evolved, he said.

This political bent shares some similarities with Silicon Valleys left-wing, utopian politics, where technology is seen as something that can kind of solve all of the worlds problems.

I am very sympathetic to that view, Warwick said. One of the interesting things about Ethereum is this idea of restructuring the financial infrastructure of the world to make it more open and transparent, and lower barriers to entry. I think its really powerful. Technological progress could be one of the biggest levers that weve ever seen in terms of improving the world. So, I still am hopeful and optimistic about technological progress.Which isnt to say many Bitcoiners dont also dream of a better and brighter future due to Bitcoins innate properties. But theres also considerable focus on Bitcoin as an insurance policy against hyperinflation and the collapse of fiat, which is an altogether more dystopian future.

McCormack has a much less positive view of Ethereums grand ambitions. I think theres a lot more interference on the left, a lot more desire for rules about what you can, you cant do, for that kind of stupid equality of outcome, he said. I think, I think you may find that a little bit of that in the Bitcoin versus Ethereum thing. I have noticed that Vitalik tends to express more socialist opinions, which is perhaps why Ethereums monetary policy is looser than that of Bitcoin.

Having an undisputed leader like Buterin in a decentralized project also sees Ethereum accused of top-down control and centralized planning. Bitcoin maximalist Samson Mow from Blockstream attacked Buterin on McCormacks podcast in mid-August for saying years ago that the internet of money should not cost five cents a transaction.That is very anti-free market, Mow claimed. Thats a Soviet-type economic event. Thats a central planning agency that sets the levels of production wages and prices of goods, whereas I think most Bitcoiners are very free market and capitalists, which is, you know, transactions will cost what they cost.On HackerNoon, journalist Kay Kurokawa wrote of Ethereum that its leftist tendency is made clear by the grandiose plans of its developers and the actions it has taken to resolve difficult situations such as the DAO hack. Their proposed move to proof of stake will certainly move Ethereum even further to the left.But for all of this criticism of Ethereums politics, its not a particularly ideological project. McCormack himself made this point at the end of the Buterin/Samson Mow debate.

For me, I think whats really missing in Ethereum is a strong philosophical backbone, he said. And thats what Bitcoin has, and why we dont have yield farming and YAMs and all this bullshit existing on Bitcoin because its very simple and just focused on one thing, which is what I like about it.

In the end, what unites people in the blockchain world is arguably more important than what divides us. One thing that almost everyone interviewed for this piece agreed on was that there continues to be a wide streak of libertarianism running through crypto culture. Although what is known as Libertarianism is most closely associated these days with guns and freedom lovers on the American right, there have been plenty of left-wing libertarian movements over the years from the peace and love hippies to anti-authoritarian punk rockers. Libertarianism is probably best described as a preference thats at the opposite end of the scale to authoritarianism.

I think a lot of the people who are building the space truly believe that there are fundamental flaws in the status quo and want to fix them, and I think that most of the time, or quite often, that does come from some sense of anti-authoritarianism or being against the establishment, said Warwick.

At a deeper level, anti-authoritarianism seems baked into the design of blockchain itself. Authoritarian elements on the far left and the far right might want to impose their crackpot ideologies by force, but that cant happen with a genuinely decentralized blockchain project because there is no central authority able to impose it.

Decentralization is a libertarian concept by nature. For sure, said Greenspan.

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Is Ethereum left and Bitcoin right? Cointelegraph Magazine - Cointelegraph

Will Bitcoin Dump If Stocks Have Another COVID-19-Scale Crash? – Forbes

Kraken's head of intelligence, Thomas Perfumo, and XBTO Group's head of trading, Paul Eisma, weigh ... [+] in on bitcoin's price falling if stocks crash again, as occurred in March.

Bitcoin (BTC) crashed in price largely alongside the stock market back in March 2020 around Covid-19 pandemic concerns and prevention measures. If stocks crash again, will bitcoin follow? The answer is part of a mixed bag, according to Thomas Perfumo, head of intelligence for crypto exchange Kraken, and Paul Eisma, head of trading at XBTO Group.

Weve observed a high positive correlation between S&P 500 and bitcoin this year, Perfumo told me via email correspondence on August 24, pointing toward bitcoins price action traveling in step with a popular mainstream financial market barometer. Longer-term, I dont see a stock market crash impairing the value of bitcoin, much like companies arent strictly impaired because their stock price goes down.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

In March, the U.S. braced for the impact of the Covid-19 pandemic, putting restrictive measures in place in an attempt to slow the viral spread. In turn, the U.S. stock market suffered its harshest fall in more than 20 years. Between March 4 and 23, the S&P 500 fell approximately 30%a drastic decline for mainstream financial markets, based on TradingView.com data.

Bitcoin also spiraled downward in similar fashion, dropping around 58% between March 7 and 13. Although BTC often sees price moves much larger than mainstream markets, accounting for the asset dropping nearly twice as much as the S&P 500 at their bottoms, the two clearly fell in price around the same time period.

Bitcoin posted a fast recovery, however, bouncing approximately 162% in the 55 days following its crash, while the S&P 500 only bounced about 47% in 77 days.

Compared To Other Markets

What weve seen since March is outperformance in several safe haven, assets like gold, bitcoin, and even bonds, where equities havent matched, Perfumo explained. In equities markets specifically, the largest companies like AAPL, AMZN, GOOG, etc. are key contributors to the overall market performance, he said, referencing the stock ticker symbols for Apple AAPL , Amazon AMZN and Alphabet Inc. GOOGL , Googles parent company.

In fact, I think if you removed the performance attributable to the top ten constituents in many large indices, you may actually see more pain than the headline suggests, he added, referencing struggles faced by many smaller companies.

The crypto industry largely views bitcoin as a store of value asset, often compared to gold. As Perfumo noted, people view such assets as a hedge to stocks, cash, etc. Bitcoins place as a hedge independent from mainstream markets, however, still holds as a debatable concept, as seen in its correlation to other markets at times.

Correlation Metrics

Over at crypto finance company XBTO, Eisma has noticed mainstream market prices traveling in line with bitcoin. The recent correlation of equities and bitcoin is alarming, Eisma told me in an August 25 email. Correlations are stochastic, extremely challenging to model and even more difficult to trade.

Eisma pointed toward a measurement from data company Coin Metrics for tracking bitcoins price correlation with the S&P 500, while using the Pearson setting, which essentially reveals how similarly two things act. Looking over 2019, applying the 90-day setting, Eisma cited mixed results, seeing positive correlation between BTC and the S&P 500 for the first several months of the year, followed by negative correlation.

Correlations in 2020 were insignificant at around +1%, until the violentBlack Thursday/Friday the 13th selloff in March, when BTC sold off along with equites, driving correlations to approximately +50%, he said referencing bitcoins dramatic fall amid Covid-19 fears.

As explained simply in an April 2020 article from blockchain industry media and data site LongHash: A coefficient of 1 indicates perfect correlation, a coefficient of 0 means there is effectively no correlation, and a coefficient of -1 points to a perfectly inverse correlation.

The subsequent rally in risk and similar uptrend in BTC has stabilized correlations in the +35% to +45% range, Eisma said pointing out continued similar price action between the two assets. If the current rally in BTC occurred with flat to downwards equity/risk markets, this correlation dynamic would be less worrying, and the price action very bullish for BTC, he added.

Amid Government Economic Actions

During the majority of 2020 so far, governments have taken several actions, including money printing and a $2 trillion stimulus package, in an effort to solve the economic issues brought on by the Covid-19 pandemic. According to Eisma, such actions make bitcoin look appealing, given its proposed role as a store of value or hedge asset. Empirically so far this year though, when large equity drawdowns occur, BTC sells off, he added, which shows the asset is not acting as a hedge against traditional markets.

Eisma added:

There is discussion in the community about whether BTC is a risk asset or digital gold.At times bitcoin seems to have characteristics of both, but it cannot be bothor perhaps it's some new hybrid asset.Ultimately the characteristics that BTC provides to a portfolio are critical in driving institutional and retail investment.

Bitcoin has come a long way since its inception more than a decade ago. The asset has achieved a sizable audience of proponents, many of which lobby it as a store of value. Some parties still do not like the asset, however, such as financial commentator Peter Schiff, who prefers gold over bitcoin.

Disclaimer: I actively trade cryptocurrencies, as well as hold a small amount of BTC, ETH, LTC, XMR, NEO, ZEC, BEAM, BCH, DASH, LINK, XTZ andvarious insignificant other altcoin positions.

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Will Bitcoin Dump If Stocks Have Another COVID-19-Scale Crash? - Forbes

China Is No Threat To Bitcoin, Promises Foundry CEO After $100 Million Bitcoin Mining Bet – Forbes

Bitcoin mining is big business. In just ten years, bitcoin mining, where bitcoin tokens are rewarded to those that maintain the bitcoin network, has morphed from a bedroom-based, money-making hobby into a billion dollar industry.

Digital Currency Group, a venture capital company that owns digital currency investing firm Grayscale, digital currency prime broker Genesis, and bitcoin and crypto news outlet Coindesk, this week unveiled its new subsidiary, Foundryand will invest $100 million into mining bitcoin in North America over coming months.

With bitcoin miners in China dominating the network, the move is expected to go some way to rebalance the distribution of those that maintain the bitcoin networkthough Foundry chief executive Mike Colyer doesn't see China as "a major threat" to bitcoin, despite recent warnings from some in the crypto industry the Chinese government could "effectively block or reverse [bitcoin] transactions."

China accounts for around 65% of the bitcoin network computing power, but Digital Currency Group is ... [+] investing $100 million in bitcoin mining in North America to change that.

"Over the past three or four years the story has been on China dominating [bitcoin mining]," Colyer said, speaking over the phone.

In May, research from University of Cambridge revealed China, where bitcoin mining pools have prospered thanks to cheap, renewable electricity, accounts for 65% of the bitcoin network's computing power, with the U.S. the second-largest bitcoin mining country, contributing 7%.

"I personally don't view that as a major threat to bitcoin," Colyer said. "The economic investment that [an attack on bitcoin] would require is immense."

It's thought it would require almost $700,000 per hour to launch an attack on the bitcoin network, according to calculations made by Crypto51.

Last week, the executive chairman of payments network provider Ripple, Chris Larsen, warned in an opinion piece published in The Hill that as the majority of bitcoin network computing power is located in China, the "Chinese government has the majority needed to wield control over those protocols and can effectively block or reverse transactions."

Others in the bitcoin and cryptocurrency community have dismissed the idea.

"Just because there are mining operations in China, it does not mean that hardware can be seized," Samson Mow, chief strategy officer at bitcoin development company Blockstream, told the BTC Times.

Meanwhile, Colyer expects interest in bitcoin mining, which is currently driven by energy and infrastructure costs, to surge over the next three years.

"This isn't about the U.S. dominating the hash rate, that will never happen," Colyer said. "There are going to be nation states that want to participate [in bitcoin mining], especially those countries that have access to low-cost energy infrastructure and a great investment environment."

Digital Currency Group is betting that Foundry, which it says it "quietly" formed last year, can succeed where other bitcoin mining hopefuls have failed.

China-based bitcoin mining giant Bitmain had planned to create hundreds of mining jobs in Rockdale, Texas, in 2018 before abandoning the idea.

Just this year, Layer1announced it raised $50 million to build a bitcoin mining operation in the U.S. but has recently been accused of misleading investors about the makeup of its "founding team."

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China Is No Threat To Bitcoin, Promises Foundry CEO After $100 Million Bitcoin Mining Bet - Forbes

Bitcoin Will Break Out This Year, Says Devere CEO | News – Bitcoin News

The CEO of financial advisory firm Devere Group believes that 2020 will be a breakout year for bitcoin, fueled by the U.S. presidential election and the weak dollar. Amid political uncertainty and the Feds new inflation policy, investors will pile into safe-haven assets not tied to any specific country, such as bitcoin.

Devere Group CEO Nigel Green predicted last week that the U.S. presidential election and a weak dollar will drive the price of bitcoin for the rest of 2020. Following the Federal Reserves policy shift on inflation, he also warned about investing in the stock market. Devere Group, established by Green in 2002, describes itself as one of the worlds leading independent financial advisory organizations with more than $10 billion under advice from 80,000 clients in 100 countries.

Noting that Bitcoin is already one of the best-performing assets of the year, up around 70% year-to-date, Green asserted, We can expect the worlds largest cryptocurrency to be further fuelled for the rest of 2020 by the U.S. presidential election and the weakness of the U.S. dollar, which will serve as high-octane price drivers. The price of bitcoin stands at $11,613 at the time of writing.

A U.S. presidential election always stirs uncertainty but 2020 is seen by many as particularly important as not only will whoever wins be the CEO of the worlds largest economy, they will be in that role as the world economically readjusts following the global fallout of coronavirus, Green opined. As uncertainty heightens, investors will pile into safe-haven assets, in particular those not tied to any specific country, such as bitcoin and gold.

Recently, news.Bitcoin.com also reported that analyst and consultant Dan Popescu predicted how the outcome of the November presidential election could lead to a dollar collapse and a boost in the gold market. While the 2020 presidential election polls currently show Joe Biden in the lead, the analyst explained that the U.S. dollar stands to lose regardless of whoever wins the election and becomes the next president of the United States.

According to Green, Bitcoin is currently realising its reputation as a form of digital gold. Up to now, the precious metal has been perceived as the ultimate safe-haven asset, but bitcoin which shares its key characteristics of being a store of value and scarcity could potentially in the future knock gold from its long-held top spot as the world becomes driven by the tech revolution Decentralized, non-sovereign, secure digital currencies, including bitcoin, will become more attractive to investors as they will offer a hedge against turbulence in traditional markets.

Analysts have been questioning golds safe-haven status and Goldman Sachs recently warned that the U.S. dollar risks losing its status as the worlds reserve currency.

The Devere Group CEO added, Printing of historic sums of helicopter money thats pushed into the financial system has devalued the dollar and prompted inflation fears, emphasizing:

You cant just print bitcoin.

On Thursday, the Federal Reserve announced a major shift in policy to push up inflation. Many investors will pile into equities, Green noted, warning of the lack of balance in the stock markets. This will add fuel to global equities which are already on fire, Green described, adding that In this climate, holding bonds and sitting on cash will simply not provide the returns investors seek.

The market has been expecting this inflation policy announcement by the Fed, prompting some companies to move cash reserves into bitcoin to hedge against inflation. One of them is the Nasdaq-listed Microstrategy, which moved $250 million of its cash reserves into bitcoin. The Feds new policy is also expected to boost the price of bitcoin, which some predict could be driven past $500K.

As for the U.S. dollar, Green continued: The greenback could be in for a short-term boost, but in the longer term there are expectations its on a downward trajectory and that it could ultimately lose its global reserves status and this environment will provide a powerful boost for the price of bitcoin. The CEO concluded:

This explosive combination together with a growing number of millennials and Gen Z investors moving into digital assets could provide the perfect landscape for a multi-year bull market History will show that 2020 was a breakout year for bitcoin.

Do you agree with Green? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, CNN

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bitcoin Will Break Out This Year, Says Devere CEO | News - Bitcoin News

Bitcoin In The Early Stages Of A Bull Market, Crypto Wallet Data Reveals – Forbes

Bitcoin has struggled through August after leaping higher at the end of July.

The bitcoin price has repeatedly tried and failed to gain a footing over $12,000 per bitcoin but is currently stuck trading around $11,800.

Now, as a number of high-profile investors turn to bitcoin amid unprecedented coronavirus stimulus spending, the biggest bitcoin and crypto wallet apps, including Coinbase, Blockchain Wallet, Crypto.com, BRD, and Binance, saw record combined downloads in Julysuggesting to some bitcoin is "in the early stages of another bull market."

Downloads and users of bitcoin and cryptocurrency apps have surged in recent months, with some of ... [+] the most popular, including Coinbase, hitting all-time highs.

In July, the top 10 crypto wallet apps increased net new installs around 81% year-on-year, according to research carried out by app data website Apptopia.

"At the start of quarantine, we noticed an uptick in new installs for some of these apps, but didn't think much of it because this market tends to be quite volatile anyway," Apptopias Madeline Lenahan wrote in a blog post alongside the data, adding it "looks like the growth we saw was, in fact, real and lasting."

Coronavirus pandemic lockdowns as well as the growing popularity of bitcoin and cryptocurrency in emerging markets were found to be apparently driving the increase in bitcoin and crypto wallet downloads.

The bitcoin price surge at the end of July, taking bitcoin to its highest level since June last year, triggered a bitcoin retail trading boom with exchanges around the world reporting sky-high bitcoin trading volume.

The sudden wave of fresh interest in bitcoin from both institutional and retail investors has caused some to make parallels to bitcoin's massive 2017 bull run that saw the bitcoin price soar from under $1,000 per bitcoin to around $20,000 in under 12 months.

Some of the most popular bitcoin and cryptocurrecy wallet apps have surged in popularity over recent ... [+] months, according to Apptopia research.

"It appears to many that we're in the early stages of another bull market for bitcoin, this time against a macroeconomic backdrop that seems almost scripted for bitcoin to shine," Cory Klippsten, tech investor and founder of bitcoin buying app Swan Bitcoin, said via Telegram, pointing to the big new user percentage increases seen by a "new crop of bitcoin-only services like Coinfloor in the UK, Bitaroo in Australia," and his own Swan Bitcoin in the U.S. which are "all seeing growth through the roof."

"No one can predict the future, but if the pattern of 4-year bitcoin market cycles continues, we're looking at a peak sometime around the end of 2021. More people are dipping their toes into bitcoin every day, and the ones that are already here are gaining conviction and buying more."

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Bitcoin In The Early Stages Of A Bull Market, Crypto Wallet Data Reveals - Forbes

Is Bitcoin About to Explode? – TheStreet

Bitcoin is back in the news. The virtual currency has nearly tripled over the past six months, but could there be further gains in store? To understand what could happen next, we need to look back at an earlier rally.

If you were following bitcoin in the second half of 2017, you might remember a rally that pushed the virtual currency higher by about 700% in less than six months. That rally is represented by the green dotted line.

In 2017, investors became obsessed with bitcoin, which formed a parabolic curve, shown in blue. A parabolic curve is the market's way of telling us that a trading instrument has become detached from reality. Bitcoin started June of 2017 trading near $2300, but by mid-December it had reached $19,600.

Parabolic moves are inherently unsustainable, and this one was no exception. By February, bitcoin had lost two-thirds of its value, falling back to $6000.

Fast forward to 2020. Bitcoin has formed a massive ascending triangle pattern. In order to break out of this formation, bitcoin needs to climb above $13,000, represented by the red dotted line.

The bottom line: Based on the sheer size of this pattern, if bitcoin can close above that $13,000 level, there is no serious resistance until the $19,000 area. In other words, if bitcoin breaks above $13,000, it could challenge its all-time highs.

Is there a stock, commodity, or currency that you'd like to see analyzed on Ponsi Charts? Feel free to leave a message in the comments section if you have a request.

Ed Ponsi is the managing director of Barchetta Capital Management, and is the author of three books for publisher Wiley Finance. A dynamic public speaker, Ed has made appearances around the world, in such diverse locations as Singapore, Dubai, London, and New York. For more information about Ed and his work, click here.

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Is Bitcoin About to Explode? - TheStreet

Venezuela’s Bitcoin Use Soars Amid Hyperinflation: 3rd on Global Crypto Adoption Index | News – Bitcoin News

Venezuelans have become increasingly interested in cryptocurrency as their country faces dire economic crisis and hyperinflation, a new study by blockchain data analytics firm Chainalysis shows. The firms Global Crypto Adoption Index ranks Venezuela third as The country has reached one of the highest rates of cryptocurrency usage in the world.

Chainalysis published its study of Venezuelas bitcoin usage Thursday, which is part of its upcoming 2020 Geography of Cryptocurrency Report.

Venezuela is suffering through one of the worst economic crises in modern history, with its national currency, the bolivar, becoming practically worthless, the firm wrote. Under these circumstances, cryptocurrency has taken on an important role in Venezuelas economy As the Venezuelan bolivar has lost value in the midst of hyperinflation, Venezuela has become one of the most active cryptocurrency trading countries on earth. The firm elaborated:

The country has reached one of the highest rates of cryptocurrency usage in the world, placing third on our Global Crypto Adoption Index, as many Venezuelans rely on cryptocurrency to receive remittances from abroad and preserve their savings against hyperinflation.

Most of the crypto activity in Venezuela is driven by peer-to-peer (P2P) exchange activity, specifically on Localbitcoins, Chainalysis noted. Venezuela is the third-most active country on the platform, or second-most active when we scale by the number of internet users and purchasing power parity per capita. Venezuela ranks 3rd for P2P trading volume in USD, after the U.S. and Russia. Venezuelans are also using Bitcoin.coms P2P marketplace to buy and sell bitcoin cash.

Chainalysis also discussed Venezuelas national cryptocurrency, the petro, launched by the countrys contested government, led by OFAC-sanctioned Nicolas Maduro and known for its corruption and human rights abuses. In May, the U.S. put a $15 million bounty on Maduro and charged a number of top Venezuelan government officials with narco-terrorism, corruption, drug trafficking and other criminal charges.

Superintendencia Nacional de Criptoactivos y Actividades Conexas (Sunacrip) is the regulator of crypto activities in Venezuela. So far, seven crypto exchanges have been licensed to trade the petro. According to the Maduro government, petro adoption has been rising significantly. Recently, 305 Venezuelan municipalities agreed to collect tax in petro.

One of the approved exchanges is Criptolago. According to financial intelligence provider Sayari, the exchange is owned by Venezuelas Zulia state, with the states governor, Omar Prieto, occupying a top management position. Prieto is a staunch Maduro ally who is personally under U.S. sanctions for refusal to deliver humanitarian aid, Chainalysis asserted.

Over the last year, Criptolago addresses received more than $380,000 worth of bitcoin over 3,916 transfers and sent more than $360,000 worth over 2,297 transfers. While the platforms transfer volume grew over 13x in the past year, it doesnt appear that Criptolago is helping the Venezuelans struggling most, the Chainalysis claims. The firm pointed out that crypto transactions worth $1,000 or more accounted for more than 75% of total transfer volume, but the average Venezuelan earns just 72 cents per day, meaning very few of them could afford such transfers. Furthermore, the overall number of transactions was under 1,000 per month.

An expert on Venezuela told the firm that Criptolagos transaction activity suggests the platform may be used primarily by individuals connected to the Maduro regime seeking to launder funds or move them out of Venezuela. Nonetheless, Chainalysis affirmed:

We do however, have a lot of anecdotal evidence that people in Venezuela have become increasingly interested in cryptocurrency.

That fits with our interviews of cryptocurrency experts on the ground in Latin America users not just in Venezuela, but in other countries facing harsh economic conditions, turn to cryptocurrency to preserve their savings in the face of monetary devaluation, the firm emphasized. News.Bitcoin.com has also reported on several crypto initiatives to help people in Venezuela.

What do you think about Venezuelas crypto adoption? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Chainalysis

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Federal Reserve’s Major Policy Shift to ‘Push Up Inflation’ Could Send Bitcoin Price to $500K – Bitcoin News

The U.S. Federal Reserve has announced a significant policy change to push up inflation. Bitcoin is set to greatly benefit from this policy change. Not only the price of bitcoin could surge past $500K, but a number of companies have also begun moving their reserves into the cryptocurrency to hedge against higher inflation.

The Federal Open Market Committee announced on Thursday significant changes to its policy strategy. The announcement coincides with Fed Chairman Jerome Powells speech to a virtual meeting of the annual Jackson Hole economic symposium.

All 17 top Fed officials agreed to a policy of average inflation targeting, allowing inflation to run moderately above 2% for some period of time. This means the Fed will be less inclined to hike interest rates when the unemployment rate falls, CNBC noted. Powell said:

Many find it counterintuitive that the Fed would want to push up inflation. However, inflation that is persistently too low can pose serious risks to the economy.

While the Fed chairman did not clarify what moderately above 2% means, Dallas Fed President Robert Kaplan said Thursday that it meant inflation in a range of a 2.25% to 2.5% annual rate.

The market has been expecting Powells speech about the Feds higher inflation policy. When the bill comes due, there are two ways out, Open Money Initiative co-founder Jill Carlson opined, adding that the first is to Hurt the poor with inflation and the second is to Hurt the rich with taxation. Carlson added, The Fed just made option A the official policy.

Some people commented on Twitter that a Historic Brrrrrrrrr is incoming, referring to the sound that a money printing press makes when left running. Responding to the policy shift news, Capriole Investments founder Charles Edwards tweeted:

The beginning of the end of fiat.

Bitcoiners view the Feds announcement as bullish. Following Powells speech, a number of people took to social media to remind others of the benefits bitcoin offers. Mimesis Capital Louis Liu wrote, Powell is friend of bitcoin, while many others chimed in to just say buy bitcoin. Abra CEO Bill Barhydt commented: Bitcoin doesnt need the Fed to succeed but if they insist on throwing gasoline on the fire then so be it.

The Fed, under the leadership of Jerome Powell, continues to be Bitcoins biggest booster, Gemini Exchange co-founder Tyler Winklevoss wrote. He made a case on Thursday for a $500K bitcoin as ultimately the only long-term protection against inflation. He explained that the price of the cryptocurrency could appreciate 45 times from todays price, meaning it could hit $500K per coin or even higher. The price of BTC stands at $11,453 at the time of writing.

Some businesses have already moved their reserves into bitcoin to hedge against higher inflation. Nasdaq-listed company Microstrategy recently announced that it had converted reserves worth $250 million into bitcoin for this purpose. The company explained that it observed distinctive properties of bitcoin that led it to believe investing in the cryptocurrency would provide not only a reasonable hedge against inflation, but also the prospect of earning a higher return than other investments. Following Microstrategy, Canadian restaurant chain Tahinis converted all of its cash reserves into bitcoin while software company Snappa allocated 40% of its cash reserves into the cryptocurrency.

What do you think about the Feds new inflation policy? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Fidelity Is A 1,000 Pound Bitcoin Gorilla In The Making – Forbes

NEW YORK CITY, NY, UNITED STATES - 2020/02/17: A view of an american multinational financial ... [+] services corporation Fidelity Investments logo. (Photo by Alex Tai/SOPA Images/LightRocket via Getty Images)

Yesterday, Fidelity filed paperwork with the U.S. Securities and Exchange Commission (SEC) to create a new fund dedicated entirely to bitcoin, which will require a minimum investment of $100,000.

CEO of Onramp Invest, Tyrone Ross, notes Fidelitys minimum investment size indicates they have no immediate plans to expand into retail offerings, but rather want to focus on the higher end institutional side of the business.

The likely logic behind Fidelitys decision is better margins and pre-existing formula for success via industry leader, Grayscale. Grayscales bitcoin trust caters to high net worth individuals and institutions, and has seen its assets under management balloon over the past few years, now topping almost $5 billion.

Tyrone Ross further comments that Fidelity also knows that they carry a brand legacy that other investment managers and custodians simply cant match. Fidelitys brand recognition could allow them to beat out first movers like Grayscale for the growing pie of institutional capital allocated to bitcoin and other digital assets.

https://www.coinbase.com/price/bitcoin

Additionally, the Boston investment giant has ~$8.3 trillion of assets under management, which in theory, if even a small portion of their clients bought into the new bitcoin fund, it would not take long before Fidelity would rival Grayscale. For example, 1% of client assets into their bitcoin fund would give it $83 billion in assets under management, i.e. greater than 16x Grayscale.

If Fidelitys fund proves successful, the price implications for bitcoin are quite clear. For example, back in June 2020, analyst Kevin Rooke determined that Grayscales trust was buying bitcoin faster than it could be mined post-halving.

Given bitcoin currently has a market cap of $208 billion and just underwent its third halving, the aforementioned scenario could easily happen again if Fidelitys fund gains traction.

Furthermore, it could be more potent this time around. Per GrayscalesValuing Bitcoinreport, only 37% of outstanding bitcoin are actually available for trading. The remaining amount has not been touched in over 1 year.

https://grayscale.co/insights/valuing-bitcoin/

There are numerous questions still unsolved from Fidelitys surprise announcement principally, can it gain demonstrable traction with its existing clientele? If so, Fidelity has the potential to be the next 1000 pound gorilla buying up more bitcoin than is being mined, thus a strong tailwind for price.

Disclosure: The author owns bitcoin and ethereum.

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3.5 Million+ Crypto Wallets Downloaded in July, Active Users up 110% in the Year | Wallets – Bitcoin News

A record 3.5 million crypto wallet app downloads were recorded in July 2020, representing an increase of 81% when compared to the same period last year. In addition, the number of active users went up by 110% between January 1 and August 19, 2020.

According to a report authored by Madeline Lenahan of Apptoppia, the increase in the number of crypto apps downloads is observed right after countries began imposing lockdown measures in the wake of Covid-19.

In the previous year, the number of downloads averaged just under two million, with the month of May and June being the only time when this mark is passed.

Explaining this years increasing downloads, Lenahan, says they didnt think it would last but were surprised to see that the trend has persisted for a few months.

Lenahan offers another possible reason for the growth in wallet downloads:

Cryptocurrency is becoming increasingly mainstream in emerging markets, particularly in regions of Africa. Crypto.com, for instance, has seen a 339% increase in new installations from Nigeria in the past 90 days. Coinbase has seen a 113% increase there.

Apptoppias data shows that Coinbase and Crypto.com have the highest number of users per day with 969,000 and 576,000, respectively. Some of the wallet applications making it into the top ten include Blockchain, Luno, BCH, BRD, Trust and Binance.

Also, recent data from Bitcoin.com shows Nigeria accounting for a greater number of Bitcoin.com Wallet downloads between August 10 and 16. From the total number of downloads of 18,613, Nigeria had 3,473 wallets ahead of the United States, which had 2,802 downloads. The same data shows India in the third position with 1,420.

Both Apptoppia and Bitcoin.com show that Nigeria is cementing its position as one of the biggest cryptocurrency markets in the world.

Meanwhile, in his comments on the increasing download of wallets, mobile app developer Adem Bilican said: Mobile is the way to go for blockchain and cryptocurrencies mass adoption, I am super happy to see these numbers.

Lenahan believes August is likely to set another record as the rate growth appears real and is lasting.

What do you of the increased wallet downloads so far this year? Share your thoughts in the comments section below

Image Credits: Shutterstock, Pixabay, Wiki Commons, Apptoppia, Wallet.Bitcoin.com

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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