Category Archives: Bitcoin

The bitcoin (BTC) price has been increasing since April 26 but was rejected as soon as it reached the $58,000 resistance area.

BTC is expected to create a higher low at either $54,400 or $53,000. Afterward, the upward movement is expected to continue.

BTC has been increasing since bouncing on April 25. The increase has been constant, without a significant retracement throughout.

On May 3, it managed to reach a high of $58,981 before moving downwards. The high was made right at the 0.618 Fib retracement resistance of the entire downward movement. This is a resistance level that often causes rejections. So far, the price has reached a local low of $54,580.

Despite the drop, technical indicators are still bullish. The MACD is increasing and is in positive territory, the RSI has crossed above 50, and the Stochastic oscillator is moving upwardsvery close to making a bullish cross.

Therefore, BTC is expected to make a higher low and resume its upward movement.

Shorter-term charts show several key occurrences.

BTC has broken down from an ascending support line that had been in place since the aforementioned April 26 low. This is a sign that the upward movement has ended in the short term.

After the breakdown, the price bounced at the 0.382 Fib retracement (white) support level at $54,000. This is the first potential reversal area.

However, both the MACD and RSI are still bearish. The latter has just crossed below 50.

The next support area is found at $53,000. This is both the 0.5 Fib retracement support level and a horizontal support area.

Therefore, BTC is expected to turn bullish at one of these two levels and resume its upward movement after.

Its likely that BTC began another upward movement on April 26. The current rejection is considered a short-term retracement, thus the price is expected to create a higher low at support.

For BeInCryptos latest bitcoin (BTC) analysis, click here.

Excerpt from:
Bitcoin (BTC) Attempts to Create Higher Low After Rejection - Yahoo Finance

ZUG, Switzerland, May 4, 2021 /PRNewswire/ -- Bitcoin Association, the Switzerland-based global industry organisation that works to advance business with the Bitcoin SV blockchain and BSV digital currency, has today released its second annual report, highlighting its work and achievements throughout 2020.

The report, which is available for download now on the Bitcoin Association website, is the first to be released since Bitcoin Association transitioned to a non-profit association (Verein) in Switzerland. It is broken into 13 sections and covers the multi-faceted global programme of work undertaken by Bitcoin Association in 2020, including:

- Members

- Bitcoin SV network progress

- Events

- Ecosystem

- Developer initiatives

- Technical standards

- Education

- Public policy

- China

- Media & content

- Team

- Ambassadors

- Outlook for 2021

Highlights from the report include:

Speaking on today's release, Bitcoin Association Founding President Jimmy Nguyen, said:

"The release of our 2020 annual report today illustrates the great strides that Bitcoin Association and Bitcoin SV was able to take against the backdrop of an extremely challenging year for everyone. In particular, the work that the Association has undertaken and the progress made in the education, developer, public policy and media spaces is hugely encouraging, as is the overall maturation of businesses across the Bitcoin SV ecosystem. As seen throughout the report, 2020 was a hugely important year for both Bitcoin Association and Bitcoin SV one largely focused on laying important foundations needed for further progress and the next phase of BSV utility growth in 2021."

About Bitcoin Association

Bitcoin Associationis theSwitzerland-basedglobal industry organisation that works to advance business on the Bitcoin SV blockchain. It brings together essential components of the Bitcoin SV ecosystem enterprises, start-up ventures, developers, merchants, exchanges, service providers, blockchain transaction processors (miners), and others working alongside them, as well as in a representative capacity, to drive further use of the Bitcoin SV blockchain and uptake of the BSV digital currency.

The Association works to build a regulation-friendly ecosystem that fosters lawful conduct while facilitating innovation using all aspects of Bitcoin technology. More than a digital currency and blockchain, Bitcoin is also a network protocol; just like Internet protocol, it is the foundational rule set for an entire data network. The Association supports use of the original Bitcoin protocol to operate the world's single blockchain on Bitcoin SV.

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SOURCE Bitcoin Association

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Bitcoin Association releases 2020 annual report highlighting work and achievements advancing Bitcoin SV - WFMZ Allentown

Its been a big year for Bitcoin. Between hitting an all-time high trading price over $63,000, landing on the balance sheets of major companies, and being recognized as inevitable by financial institutions that once tried to avoid it, the rise of Bitcoin and the broader adoption of cryptocurrency is one of the bigger stories of 2021. Cryptocurrencies are becoming more mainstream as a form of payment and investment or speculation, depending on your perspective.

Perhaps the appeal is in the underlying technology (that is, the use of math, rather than third-party banks, to facilitate nearly instant, inexpensive, irrevocable transactions anywhere on Earth). Perhaps its the arguable benefit of holding cryptocurrency, particularly Bitcoin, as a long-term hedge against inflation. Or maybe its the indisputable entertainment value of casting a one-minute candlestick chart to a big screen TV to watch the price move on a volatile day (a purely hypothetical scenario).

Whatever the case, cryptocurrencies are clearly here to stay. Innovative employers are responding by putting Bitcoin compensation on the table as a benefit to attract top talent and it its not just tech companies. This year, Twitter, the City of Miami, the City of Jackson, TN, the Sacramento Kings, and others have announced their exploration of Bitcoin payroll. We expect more are coming, and to start seeing employee-driven requests for the option. If your organization is considering paying employees or contractors in Bitcoin, what do you need to know?

Is it Legal to Pay Wages in Cryptocurrency?

The first question you need to confront: whether it is permissible under federal and state law to pay your workers in Bitcoin or similar cryptocurrency.

Under the Fair Labor Standards Act, wages must be paid in cash or negotiable instrument payable at par. Cryptocurrency is, of course, neither. And while the more popular cryptocurrencies can easily and immediately be sold for cash, this fact might not matter to the U.S. Department of Labor.

Further, employers must also consider state laws, some of which require wages to be paid in U.S. currency (including California, Washington, Georgia, Maryland, Delaware, Pennsylvania, Michigan, New Jersey, Texas, and Illinois). The specific restrictions and accompanying exemptions vary from state to state. In Georgia, for example, the statute does not apply to salaried company officials, superintendents, or certain department heads, or to employers in the farming, sawmill, and turpentine industries. Meanwhile, in Texas, while wages are generally required to be paid in U.S. currency, an employee may agree in writing to receive part or all of the wages in kind or in another form.

For these reasons, you should pay base compensation in the U.S. currency in amounts that meet the federal, state, and local requirements for minimum wage, overtime, or salary-based exemptions. Any cryptocurrency payment program should be optional and authorized in writing by the employee (on a form clearly acknowledging the risks of doing so).

Why Would an Employer Want to Pay in Cryptocurrency?

Considering the legal hurdles and risks facing employers who explore this option, why bother? Primarily, talent acquisition by virtue signaling. Competition for hiring and retaining the best and brightest employees is fierce, especially in the tech industry. By offering to pay employees in cryptocurrencies, companies may attract workers looking for a forward-thinking employer by distinguishing themselves as early tech adopters that offer compelling benefits and compensation.

Companies with remote or international contractors or employees might also appreciate the ease of making cross-border payments in cryptocurrency. Who needs to pick among international currencies and worry about exchange rates when anyone can send and receive Bitcoin in minutes with nothing more than a cell phone?

Is It Practical to Pay in Cryptocurrency?

If your company decides to offer cryptocurrency as part of its payroll or bonus program, there are two general ways it can be done. Employees can either be paid (1) in their normal currency, with a designated portion of their wages being converted to their selected cryptocurrency and sent to their wallet; or (2) in the cryptocurrency itself.

In the conversion option, the employee may bear some risk that the exchange rate available to the employer is not as favorable as what the employee could get buying the cryptocurrency themselves. In the direct payment option, you are technically making a payment in property, not cash, under current IRS guidance (check out the IRS FAQs, a 2014 Notice, and a 2019 Revenue Ruling on the matter). The fair market value of the cryptocurrency easy to determine for coins as popular as Bitcoin and Ether is subject to payroll taxes and must be reported on Form W-2. While not impossible, this impact on payroll reporting and tax withholding could be administratively difficult. Regardless of the option chosen, most employers should strongly consider using a third-party service dedicated to processing payroll in cryptocurrency.

One common concern about paying employees in Bitcoin is its volatility risk $100 worth of Bitcoin on payday might only be worth $80 when it hits the employees wallet. These days, it might be a fair presumption that anyone comfortable enough with cryptocurrency to opt in to receiving it as part of their wages would be very familiar with this risk. (Many would even be excited if the price fell dramatically right before payday, so they can buy the dip. Lots of users are dollar-cost averaging cryptocurrency into their portfolios just as they would buy mutual funds in a 401(k).) But you need to consider the risks that would likely accompany those disgruntled employees who are not happy with such a precipitous drop. And you might not want to simply assume that anyone signing up to receive compensation via cryptocurrency understands these swings, making sure to provide sufficient notification about the realities to those considering the option.

Another concern is taxes. Despite IRS guidance published on the topic in 2014, and clarified in great detail in late 2019 (links above), many cryptocurrency holders seem to be unaware that they are walking into an interesting lesson in capital gains taxes when they buy, sell, exchange, and are paid in cryptocurrency. You should include relevant disclaimers, and perhaps a reference to current tax guidance, in any employee authorization to be paid in a digital asset.

The Future Of Cryptocurrency

Bitcoin adoption has been moving at light speed in 2021. Simply stated, it is not a passing fad.

Private Businesses Getting in on the Act

WeWork announced that it will start accepting payment in Bitcoin, Ether, and several other cryptocurrencies as payment, including for its memberships, and intends to hold the assets on its balance sheet. It will also work with landlords and other partners to make payments in cryptocurrency. Coinbase, the largest cryptocurrency exchange in the United States, will be the first client to pay for its WeWork membership in cryptocurrency.

Mastercard has announced that it plans to give merchants the option to receive payments in cryptocurrency this year. Mastercards Executive Vice President for Blockchain and Digital Asset Products, Raj Dhamordharan, commented, Our philosophy on cryptocurrencies is straightforward: Its about choice. Mastercard isnt here to recommend you start using cryptocurrencies. But we are here to enable customers, merchants and businesses to move digital value.

Venmo, a large peer-to-peer payment app, announced that it would support cryptocurrency payments between users. PayPal announced that its users will be able to buy, sell, and transfer cryptocurrencies.

Federal and State Governments are also Signaling Interest

In February, Treasury Secretary Janet Yellen indicated that central banks should be considering issuing digital currencies. From Yellens view, a digital dollar could help alleviate hurdles that many low-income households face in financial inclusion. However, Secretary Yellen has also warned that Bitcoin is extremely inefficient, and the Biden administration is reportedly developing a crypto regulatory framework.

In 2019, Ohio gave companies that operate there the option of paying their taxes with Bitcoin. Other states, such as Georgia and Illinois, have considered legislation to allow cryptocurrency tax payments but to date, that legislation has failed. As Bitcoin becomes more widely adopted and used as a currency, look for other states to follow in Ohios footsteps and accept Bitcoin. States will likely make this move, and take other steps, to attract businesses just as private companies have begun to do.

The government taking note of the benefits of cryptocurrencies is a large step toward legitimacy and mass adoption. Further, acceptance by the government could lead to systematic changes that would make it much easier for employers to accept payment in the form of cryptocurrencies and in turn pay employees with crypto.

Conclusion

The recent Bitcoin announcements by major companies is a sign of the increasing adoption of cryptocurrencies as currencies. This increases the likelihood that an employee may request to be paid in Bitcoin. As we have discussed, there are many potential traps when paying employees with Bitcoin and the decision to offer payment in Bitcoin should not be taken lightly. If you make the decision to pay employees in Bitcoin, or other cryptocurrencies, ensure that nonexempt employees are paid the applicable minimum and overtime wages.

While there are many potential legal issues that may arise, employers who want to pay employees with cryptocurrency can likely find solutions with the help of legal counsel. Moreover, regardless of which state an employer is operating, you should never proceed with introducing cryptocurrency into wage or bonus payments without first consulting with your employment counsel.

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Cryptocurrency Clamor: Paying Employees in Bitcoin Has Reached the Mainstream - JD Supra

More than 1,600 people participated in the Bitcoin Conference hosted by the Mays Innovation Research Center in Mays Business School at Texas A&M University, held mostly via Zoom April 16-17.

Our goal was to provide more informed view of Bitcoin and the new economy it is creating, said Center Director Korok Ray. Bitcoin is a radical technology that will certainly affect technology, business and finance, and the law/policy/regulatory landscape.

One speaker who garnered attention was Robert Kaplan, president of the Dallas Federal Reserve Bank. He told conference attendees that the Federal Reserve Bank should stop providing current levels of support to the national economy once the COVID-19 pandemic wanes.

Weve got to balance the side effects of what we are doing, Kaplan said. One is inflation, but also excesses and balances in the financial markets.

Demand for bitcoin may decrease if the Federal Reserve scales back its current economic support. Other conference speakers, including venture capitalist Tim Draper and value investor Bill Miller, stated their belief that long-term demand for Bitcoin will be high because of its transparency, scarcity and detachment from any national currency.

Other speakers included Ray Dalio of Bridgewater Associates; Michael Saylor of MicroStrategy; Pete Briger of Fortress Investment Group; Glenn Hutchins of Silver Lake Partners; Dawn Stump of the Commodities Futures Trading Commission; and Nobel Laureate Eric Maskin of Harvard University.

Bitcoin was launched in 2009 as the worlds first cryptocurrency, or digital currency. It operates entirely outside government, state and financial institutions and is bought and sold anonymously, usually through exchanges such as Coinbase.

There are only 21 million bitcoins, and some experts expect their value to rise due to increased competition for a limited supply. Other experts disagree, noting the risk present in regulation and that a Bitcoin is not linked to precious metals or other tangible assets that provide real value.

Ray and Texas A&M senior marketing major Grant Weston came up with the idea for the conference. Weston and his roommate, Matt Lohstroh, also founded the Texas A&M Bitcoin Club to create a community of students who understand the role and purpose of Bitcoin and its implications.

The conference was successful in raising awareness for the Mays Innovation Research Center, the mission of which is to understand the nature of innovation and how it benefits society, Ray said.

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More Than 1600 Participate In Mays Innovation Research Center Bitcoin Conference - Texas A&M Today - Texas A&M University Today

(Bloomberg) -- Bitcoin rallied back Monday as investors took advantage of the lowest levels in seven weeks to pile back in.

The largest cryptocurrency rose as much as 13% to above $54,000, the biggest intraday gain since early February.

The move comes as JPMorgan Chase & Co. is preparing to introduce an actively managed Bitcoin fund to some clients as soon as this summer, Coindesk reported, citing unidentified people familiar with the matter. The rebound reverses a two-week slump that had pushed Bitcoin below its 100-day moving average amid technical warnings from Wall Street and fears of a growing crypto bubble.

Some pinned Mondays move on a tweet Saturday from billionaire Elon Musk, who in the past has affected prices with his comments on the social platform.

In a potential reference to cryptocurrencies, the Tesla Inc. founder asked What does the future hodl?, using a term often seen as meaning hold on for dear life that supporters use to refer to buying and holding their digital assets.

After markets closed in New York on Monday, Musks Tesla Inc. quarterly results revealed that it spent $1.2 billion on Bitcoin in the first quarter and made $101 million selling it during that period. Musk had disclosed the crypto investment in February and the announcement subsequently helped fuel a red-hot rally for the digital asset.

Cryptocurrency-exposed stocks also rose. Monex Group Inc. gained 7.1%, while Remixpoint Inc. increased 7% and Ceres Inc. added 6.1%. In the U.S., Coinbase Global Inc. gained 4.4%, while Riot Blockchain Inc. jumped 6.3%.

Bitcoin has retained a gain of about 80% year-to-date as big-name investors endorse it and institutions from Goldman Sachs Group Inc. to Bank of New York Mellon advance their offerings around cryptocurrencies. JPMorgans John Normand reiterated in a note Friday that Bitcoins ascent has been steeper than any other financial innovation or bubble of the past 50 years.

Crypto bulls breathed a sigh of relief as last weeks deep rout across the space failed to extend, Steen Jakobsen, chief investment officer at Saxo Bank, wrote in a note. However, it has quite a wall to climb to fully neutralize the recent selloff

Story continues

(Updates to add Teslas Bitcoin sale in sixth paragraph)

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Bitcoin Rebounds After Hitting Lowest Level Since March - Yahoo Finance

Bitcoins domination of total cryptocurrency market value is declining as its next-biggest rival Ether reaches the $3,000 milestone.

The rise of Ether suggests theres room for more than one winner among digital tokens as the sector evolves. Bitcoin now accounts for about 46% of total crypto market value of $2.3 trillion, down from roughly 70% at the start of the year, according to tracker CoinGecko. Ether is up to 15% and a group of others outside the top few has doubled its share to 36%.

Bitcoin remains the biggest cryptocurrency but the momentum in other tokens is drawing increasing interest. Crypto proponents argue investors are getting more comfortable with a variety of tokens, while critics contend the sector may be in the grip of a stimulus-fueled mania.

Ethereum is rising and not much seems to be in its way, Edward Moya, a senior market analyst at Oanda Corp., wrote in a note Friday, adding that other tokens were also seeing fresh interest.

The current distribution of market share also reflects an April shakeout in the cryptocurrency sector. Bitcoin has yet to recover all the ground it lost after tumbling from a mid-April record of almost $64,870.

Last months listing of crypto exchange Coinbase Global Inc. in the U.S. is the latest sign of how more investors are embracing the sector despite risks from high levels of volatility and expanding regulatory scrutiny.

Ether is currently occupying the limelight. An upgrade of the affiliated Ethereum blockchain as well as the networks popularity for financial services and cryptocollectibles are among the factors cited for the rally.

Evercore ISI strategist Rich Ross has set a target of $3,900 for the token. Ether rose 6.6% to $3,167 as of 10:29 a.m. in London on Monday.

Other cryptocurrencies have jumped too. The price of Binance Coin is up 3,460% over the past 12 months, according to CoinGecko. Dogecoin, a token started as a joke in 2013 but now a social-media favorite touted by the likes of Elon Musk, has surged 15,000% to a market value of around $50 billion.

Before it's here, it's on the Bloomberg Terminal.

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Bitcoin Crypto Dominance Declines as Ether Soars Past $3,000 - Bloomberg

Bitcoin has beaten the stock market, but you might be shocked by how much.

It's been a wild ride for Bitcoin throughout its 11-year history, and that's been especially true over the past year. Not only did the COVID-19 pandemic drive Bitcoin's price lower initially, but it also seems to have helped accelerate investor interest in the leading cryptocurrency.

Here's a look at how Bitcoin has performed for investors over the past year and what has driven its performance.

I won't keep you in suspense. Bitcoin has increased in value by 612% over the past year, as of this writing. This means that a $1,000 investment in Bitcoin made one year ago would be worth just over $7,100 now.

During the same period, the S&P 500 index, which is generally considered to be the best gauge of overall stock market performance, has delivered a 50% total return. Several stocks have doubled and tripled over the past year as the market rewarded companies that benefited from the stay-at-home economy. But there are very few stocks that have delivered returns in the same ballpark as Bitcoin. So, it's fair to say that Bitcoin has been a big success as an investment over the past year for buy-and-hold investors.

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Obviously, we can't go through every positive Bitcoin news item that has happened over the past year. But there have been three big themes that seem to have driven Bitcoin higher.

Here's the billion-dollar question. If Bitcoin ultimately gains mainstream adoption as a currency or ends up becoming a mainstream store of value (digital gold), there's a solid case to be made that Bitcoin could ultimately rise to $500,000 or even more. On the other hand, if the mainstream-use case doesn't pan out, or if investor interest starts to fade, it could go the other way just as easily.

The bottom line is that no investment that can deliver 7x returns in a year is without significant volatility and risk. If you're looking to buy Bitcoin or other cryptocurrencies, make sure you know what you're getting into.

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If You Bought $1,000 Worth of Bitcoin a Year Ago, Here's How Much You'd Have Today - The Motley Fool

It seems safe to say that Berkshire Hathaway Inc. Vice Chairman Charlie Mungers cryptocurrency skepticism hasnt been softened by the rally in prices for bitcoin and other digital assets.

Of course, I hate the bitcoin success and I dont welcome a currency thats useful to kidnappers and extortionists, and so forth. Nor do I like just shoveling out a few extra billions and billions of dollars to somebody who just invented a new financial product out of thin air. So I think I should say modestly that I think the whole damn development is disgusting and contrary to the interests of civilization. And Ill leave the criticism to others.

Mungers remarks came in response to a question at Berkshires BRK.A, -1.29% BRK.B, -0.95% annual shareholder meeting on Saturday. Munger and Chairman Warren Buffett were asked about their feelings regarding rising cryptocurrency values given Mungers previous characterization of bitcoin as worthless, artificial gold.

Read: Berkshire Hathaway returns to quarterly profit on insurance and stock-market gains

Buffett, who over the years has previously described the crypto as rat poison squared and a delusion, with no unique value at all, said he would dodge the question, reckoning that the vast majority of investors watching the meeting online were likely bitcoin holders.

We probably got hundreds of thousand of people watching that own bitcoin, and we probably have two people that are short. So we got a choice of making 400,000 people mad at us and unhappyor making two people happy, and thats just a dumb equation, Buffett joked.

Munger, in contrast, was in no mood to hold back, saying that the question was like waving a red flag in front of a bull:

Bitcoin BTCUSD, +2.52%, which is notoriously volatile, has rallied over the past year, topping $60,000 for the first time in March before a pullback that took it briefly below $50,000 earlier this month. The digital asset was trading near $56,700 at midday Sunday, down around 1.7% over the last 24 hours, according to CoinDesk. Bitcoin traded at around $29,000 at the beginning of 2021 and for around $8,000 a year ago.

See: Ive learned how much I dont know about bitcoin, says investor Howard Marks

While this years event was the second in a row to be held virtually due to the COVID-19 pandemic, Buffett and Munger tackled a range of queries in a 3 1/2-hour question-and-answer session.

Barrons on MarketWatch: Berkshire Hathaways Earnings Show Warren Buffetts Company Is on a Roll

Many of the questions were specific to Berkshire, with Buffett pushing back against criticism of the companys sale of its stakes in airlines during the height of the pandemic. Other topics, included rising short-term trading activity by individual investors, the impact of special-purpose acquisition vehicles, or SPACs, on the deal-making environment, signs of inflation in the economy and the morality debate around share buybacks.

Read: Warren Buffett warns investors not to gamble on stocks

Original post:
Charlie Munger 'hates' bitcoin's rise: 'disgusting and contrary to interests of civilization' - MarketWatch

Bitcoin has exploded this year, with long-awaited institutional adoption being bolstered by retail investors pouring cash into all manner of cryptocurrencies (some looking like better bets than others).

The bitcoin price has soared as millions of potential bitcoin buyers get access to bitcoin markets via the likes of PayPal, Robinhood, Square's Cash App and Revolut.

Now, as PayPal and Robinhood continue to prevent bitcoin bought on their platforms from being moved elsewhere, a leaked blog post has revealed London-based banking app Revolut is gearing up to allow some of its users to transfer their bitcoin holdings off its app.

A leaked Revolut blog post revealed the banking app is gearing up to permit bitcoin withdrawal from ... [+] its app.

In a blog post that was deleted shortly after being published on Thursdaybut not before being spotted by eagle-eyed AltFi reportersRevolut announced that its top-tier paying users will next week get beta access to transfer their bitcoin off its platform.

"We're launching next Thursday, unfortunately the blog went up a little too soon," says a Revolut spokesperson, speaking over email. The blog post, uploaded "due to a scheduling error," sported a URL that includes "bitcoin withdrawals have landed" but now directs to a 404 error page.

"We're starting with bitcoin, but well be adding more tokens and upgrades in the near future," the post read. Revolut users, including in the U.S. where the banking app was launched in March 2020, can currently buy and sell 22 different cryptocurrencies, including bitcoin, ethereum, litecoin, and Ripple's XRP.

Meanwhile, it was reported Revolut employees were told of the pending update ahead of the leaked blog post's publicationwith management thanking bitcoin "for making all our dreams come true."

"Huge Revolut milestone to announce," Revolut staff were told in a company-wide communication, according to the Financial Times. "Our public beta for crypto withdrawals has now soft launched for all eligible users."

Meanwhile, restrictions on PayPal and Robinhood accounts preventing them from moving their bitcoin off the platforms have continued to grate on bitcoin and cryptocurrency devoteesmany of whom espouse the cryptographic mantra: "not your keys, not your coins," warning that if you let a bank hold your cryptocurrency for you it's vulnerable to loss or theft.

The bitcoin price bull run took off in October last year following PayPal's announcement that it ... [+] would begin supporting bitcoin and a handful of other cryptocurrencies.

"Buying bitcoin on Robinhood is not owning bitcoin. Buying bitcoin through PayPal is not owning bitcoin," NFL pro footballer and staunch bitcoin advocate Russell Okung said via Twitter this week.

PayPal's support of bitcoin and a handful of other cryptocurrencies, announced in October 2020, kickstarted the current bitcoin price bull run and sent bitcoin soaring well past its previous all-time high of around $20,000 per bitcoin set in late 2017.

However, PayPal immediately attracted criticism for failing to allow users to transfer the cryptocurrencies they bought off the platform.

Square, led by bitcoin believer Jack Dorsey, enabled bitcoin withdrawals via its Cash App in 2019 while investing app Robinhood has said it plans to do so in the future.

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Leak Reveals Millions Of PayPal And Robinhood Bitcoin Buyers May Soon Want To Make A Surprising Switch Amid Bitcoin Price Mania - Forbes

Albert Einstein reckoned the only reason we have time is so that everything doesn't happen at once.

If he was around today, he may have been forced into a rethink. Last year we saw one of the sharpest falls in financial markets ever, followed by one of the quickest recoveries.

Despite the globe still in the grip of a dangerous pandemic, the price of assets, commodities and financial instruments have continued their meteoric rise fuelled by massive amounts of stimulus, from governments and central banks.

The more they inflate, the higher pundits believe they'll go.

Analysts are sceptical of Bitcoin's meteoric rise. Here's why some are predicting a crash, and what that would mean.

It's the everything boom. Real estate, stocks, metals, agricultural products; almost anything you care to name. Except for debt instruments like government bonds that collapsed from record highs in February and March. And gold, the ultimate store of wealth during uncertain times for several millennia.

Nothing, however, can quite match the boom in cryptocurrencies. In the past year, led by Bitcoin, they have soared to ever greater levels, despite warnings from monetary authorities about their highly speculative nature, their use in criminal transactions and the ongoing threat of regulation.

They've been largely dismissed by the establishment until recently. Lately, there's been a surge of interest from institutions that have taken a fresh look at Bitcoin and the vast array of competing cryptocurrencies, and a reluctant acceptance. There's money to be made, after all.

But the vast bulk of the interest, and perhaps the driving force behind the huge price surge in the past year, has come from households; ordinary people who have jumped aboard the rapidly accelerating train in a quest for riches.

Source: Coindesk

Laszlo Hanyacz became an internet sensation for all the wrong reasons. Back in 2010, he bought two pizzas from a Jacksonville Florida pizza joint and paid in Bitcoin; the first time anyone ever used the electronic currency as payment.

As bitcoin passes its latest milestone, 'FOMO' has led to crypto sceptics piling in, as Tesla boss Elon Musk warns digital currencies should be treated as "speculation".

That alone should have been enough to put him in the history books. But his fame extends well beyond being a trailblazer. Poor old Laszlo forked out 10,000 Bitcoin for the doughy delight. In Australian dollar terms, based on yesterday's price, that would now be worth $753,510,000.

Let's hope he ordered the supreme. Or at least, the extra anchovies.

But Laszlo's misfortune has become one of the great obstacles in the acceptance of Bitcoin and other cryptocurrencies as a medium of exchange.

Consumers are unwilling to spend their Bitcoin;fearful they may end up like Laszlo. And merchants are nervous about accepting payment, given the incredible volatility around its pricing.

He was far from the first, but it was Elon Musk who kicked along the most recent boom when in February, he announced that Tesla, his electric car company, would be accepting Bitcoin as payment for vehicles.

Not only that, Tesla stumped up $US1.5 billion ($1.94 billion) for a slice of Bitcoin. In filings to the New York Stock Exchange last week, that investment now was worth $US2.48 billion.

Increasingly, cryptocurrencies are being seen as an investment, or a store of wealth with other big players adding Bitcoin to their balance sheets.

As the price of the cryptocurrency continues to skyrocket, Bitcoin miners are tapping fossil fuels across the planet. But can Bitcoin go green, or is climate change embedded in Bitcoin's code?

Payment systems Paypal and Square are exploring the currency as both a payment system and an investment while Twitter has debated whether to hold some on its balance sheet.

With big names dipping into the market, investment banks like Bank of NY Mellon have taken the plunge, forming a crypto division while JP Morgan has dipped its toe into the water in an effort to keep its clients happy.

For much of the past decade, crypto devotees have predicted the demise of fiat currencies; the system by which individual nations run separate currencies. They've argued the rise of the internet and the arrival of digital currencies would bypass traditional payment methods and undermine the network of central banks that regulate and run the global financial system.

There's no doubt the rise of these new cryptocurrencies will radically alter and dramatically improve the way we pay for goods and services. But central banks and governments are more likely to become players than victims of the revolution.

It was exactly 50 years ago that gold was abandoned as the official foundation for global currencies.

For thousands of years, gold was used as a means of exchange, in coins, and as a store of wealth. Up until World War II, most countries fixed their currencies to a specified amount of gold. But the chaos of the period between the wars forced a shake-up and in 1944 the Bretton Woods system was instituted.

The US dollar became the global currency standard and all other currencies were priced against it. Gold, however, remained the foundation as the US dollar was fixed to the precious metal at $US35 an ounce.

Disgraced US president Richard Nixon called an end to the system in 1971 and abandoned the gold standard as inflation took hold in the aftermath of the Vietnam War.

But gold never really went out of fashion. Central banks continued to hold large stores of it, cementing its reputation as the bedrock for the financial system. Not surprisingly, investors would flock to it at the first hint of inflation or any other political or economic upheaval.

Gold always has been the ultimate store of wealth.

Why? For a start, it is rare. It also is attractive. And it has a relatively rare molecular structure that makes it incredibly stable. That makes it useful, not just in jewellery, but in high level industrial applications including electronics.

There are some uncanny similarities between Bitcoin and gold.

Like gold, Bitcoin is rare. The total supply has been limited to 21 million tokens. And the pace at which the tokens are released periodically is slowed, so that the final coin won't be minted until around 2140.

As a result, it becomes increasingly more difficult and more expensive to "mine" new Bitcoin. That has raised concerns about the impact on the environment, where the computing power required to "mint" new coins chews through enormous amounts of energy.

Professor Jason Potts from RMITs Blockchain Innovation Hub explains how digital money works.

Unlike gold, however, Bitcoin is virtual. It exists in the ether and has no utility or use other than as a means of exchange.

What it does have is an underpinning ledger system known as blockchain that enables data storage to be decentralised so that it cannot be controlled or manipulated.

Blockchain technology has applications far beyond cryptocurrency with potential uses in cars, financial services, voting, polling and even healthcare and is being widely adapted and adopted by a range of industries.

It's not just blockchain that unites cryptocurrencies. In recent months, a vast number such as Ethereum, Ripple XRP and even a joke currency called Dogecoin, all have soared on the back of the huge lift in Bitcoin.

Gold in contrast, has been on the decline since peaking in August last year. Even the chaotic slide on global bond markets in February and March this yearfailed to fire it up. Government bond prices cratered on fears of a return of global inflation, the kind of news that ordinarily would see gold spike.

The precious metal reacted as expected through most of last year though. It gathered strength from January on as the pandemic rippled around the globe.

Bitcoin, in contrast, tanked as stocks and most risky assets plummeted. It only gathered steam once vaccines were developed and as the US election result lit a fire under global stock markets.

Perhaps cryptocurrencies will replace gold as the ultimate store of wealth at some point. They may even become the currencies of the internet, enabling safe and secure transactions.

Judging from movements over the past year, they remain yet another speculative, volatile and risky investment. But their time may be rapidly approaching.

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Will Bitcoin replace gold as the ultimate store of wealth? - ABC News