Month: June 2021

The rise of NFTs must be accompanied by further decentralization

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The rise of the nonfungible token (NFT) has been a sight to behold, with the market seemingly garnering an increased amount of mainstream traction with each passing day. To put things into perspective as to how big this space has actually become, conservative estimates suggest that the amount of money that has entered into this fast-evolving sector currently totals above $500 million. Another way to gauge the impact that NFTs have had on the global economy is by looking at the diverse range of artists, celebrities, musicians — basically just…

Why Bitcoin’s next breakout may not be an altcoin season signal

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On April 14, Bitcoin (BTC) reached a $64,900 all-time high after accumulating 124.5% gains in 2021. However, a 27.5% correction followed over the next eleven days, marking a $47,000 local bottom. The popular Crypto Fear and Greed Index reached its lowest level in 12 months on April 25, signaling that investors were closer to “extreme fear,” which was a complete reversal from the “extreme greed” level seen during the Bitcoin rally above $60,000. This downward move from April 14 to 25 wiped out $200 billion from the altcoin market capitalization.…

The NFT bubble may have popped, but the sector is still primed for expansion

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Nonfungible tokens (NFTs) took the world by storm in March and April of this year with an onslaught of daily headlines about record-breaking sales and big-name companies dropping their own one-of-a-kind digital art pieces dominating the mainstream media. Fast forward a few months and the narrative has shifted to the ‘NFT bubble’ popping and doom and gloomers warning that NFT investors are on the verge of losing all of their money. NFT market 1-year history. Source: NonFungible The rapidly declining prices and activity on the top NFT marketplaces have prompted…

Jack Dorsey’s Square Inc. to invest $5M in Blockstream Bitcoin mining facility

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Square Inc., a crypto-friendly mobile payments company, is planning to invest $5 million in a solar-powered Bitcoin (BTC) mining facility for Blockstream Mining, offering further insight into Jack Dorsey’s continued support for blockchain infrastructure.  Chris Cook, Blockstream’s chief information officer, announced the collaborative partnership on Saturday, where he outlined plans to build the open-sourced mining facility at one of Blockstream’s United States operations. “Together, we plan to provide public transparency by sharing the project economics and knowledge we’ve gained from building a Bitcoin mine powered by renewable energy,” he said,…

Here’s a live update of the biggest movers and shakers of Day 2

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Some of crypto’s most influential people headlined the second day of Bitcoin 2021 Miami, offering words of wisdom about the future of decentralization, privacy and financial inclusion. Day 2 began with a panel discussion centered around Bitcoin’s macro landscape, where Morgan Creek Digital founder Mark Yusko drew attention to the destruction of the dollar caused by the Federal Reserve’s endless money printing. “Thirty-nine percent of all dollars were created in the last 12 months,” he said, adding that the U.S. dollar is “the biggest shitcoin of them all.”  The heavy…

No, Musk, don’t blame Bitcoin for dirty energy — The problem lies deeper

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Elon Musk is definitely interested in digital currency, but it seems that he doesn’t want to understand it. At least, I worry that he doesn’t have a deep enough understanding of Bitcoin (BTC) and decentralized systems in general. A decentralized system has to be secure, and proof-of-work (PoW) is the solution for Bitcoin to secure its digital asset. The more successful Bitcoin is, the more energy is required for PoW to secure the network. In other words, the reason that Bitcoin uses up so much more electricity than Dogecoin (DOGE),…

Forecasting Bitcoin price using quantitative models, Part 3

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This is Part Three of a multipart series that aims to answer the following question: What is the “fundamental value” of Bitcoin? Part One is about the value of scarcity, Part Two — the market moves in bubbles, Part Three — the rate of adoption, and Part Four — the hash rate and the estimated price of Bitcoin. The rate of adoption If more and more people desire a certain good, and the same amount of units are in circulation, the price will obviously have a tendency to rise. It’s…

Growing pains? DeFi exploits plunder BSC, which calls for reinforcements

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Several decentralized finance (DeFi) protocols running on Binance Smart Chain (BSC) have fallen victim to major exploits in recent months as the sector continues to see substantial growth in 2021. Binance’s very own smart contract blockchain platform has seen a surge in demand since its launch in September 2021, due to its low fees and high throughput. This has allowed the Binance Smart Chain to appropriate a percentage of the DeFi market as platforms looked for an alternative to Ethereum’s high gas fees. While Ethereum still commands the lion’s share…

These Bitcoin tweets were way ahead of their time

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Bitcoin came to life in 2009. More than a decade later, the present day looks back on an enormous amount of development that has built a surrounding industry, complete with other blockchains, assets and solutions. Some folks knew about Bitcoin (BTC) in its early years, while others have jumped on the train in varying droves since then. Looking back through Twitter’s history reveals a few tweets that were far ahead of their time.  In 2010, one Twitter user saw Bitcoin’s potential, yet expressed skepticism regarding its future. Little did they…

Bitcoin drops below $36K as century-old financial model predicts big BTC crash

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Overconfident Bitcoin (BTC) bulls would need to battle more than just Elon Musk as a price prediction model — created by technical analyst pioneer Richard Wyckoff more than 100 years ago — also goes against their wild upside predictions. Dubbed as Wyckoff Method, the model involves a five-phase approach to determine price trends that majorly involve investors’ psychological reaction to an asset’s supply and demand. For example, in the case of accumulation, when an asset tends to bottom out following sharp price moves downhill, the five phases in order include…