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  • ECB President Christine Lagarde Says Bitcoin Needs Regulation

    ECB President Christine Lagarde Says Bitcoin Needs Regulation

    Key highlights:

    • Christine Lagarde, the head of the European Central Bank, thinks Bitcoin is very speculative and needs regulation
    • Lagarde believes the crypto rules should be global, and the public should accept them
    • On the other hand, some politicians like Brian Brooks they favor blockchain technology

    Christine Lagarde comments on Bitcoin and central bank digital currency

    ECB President Christine Lagarde recently said that she considers BTC as a speculative asset that needs to be regulated globally. In her opinion, a lot of »funny business« has been facilitated through Bitcoin, and the asset has also been used to launder money. Lagarde called for a global approach to regulating Bitcoin, something that would be very difficult to achieve. 

    Lagarde has expressed her views about CBDCs (central bank digital currencies). She explained the digital euro at a conference and declared that they are considering public feedback about the issue.

    She pointed out that there has been significant interest from the public in response to the ECB’s consultation  regarding the digital euro. Many participants have answered their questions about the digital euro and what it should ideally look like. 

    According to Lagarde, they want to be careful about the topic, and they want to make the correct decision. Lagarde didn`t provide a timeline for launching digital euro, but said the process will likely be time-consuming. The ECB is taking a careful approach in order to ensure that the digital euro will be safe to use.

    Lagarde expects the digital euro to be made available in approximately five years, if the ECB decides to pursue the project. Even if and when the digital euro becomes a reality, it will not replace cash – bank notes will still be accepted, Lagarde explained.

    Not all official are crypto skeptics

    Not all government officials and politicians have adopted a negative stance towards Bitcoin and cryptocurrency – one of the prime examples of this is Brian Brooks, the former head of the U.S. Office of the Comptroller of the Currency. Under his leadership, the OCC has made several statements highlighting the importance of blockchain technology and its transformative potential in the financial sector.

  • Celebrities Are Promoting Cryptocurrencies Again as Lindsay Lohan Talks Bitcoin and Ethereum in Paid Video

    Celebrities Are Promoting Cryptocurrencies Again as Lindsay Lohan Talks Bitcoin and Ethereum in Paid Video

    Key highlights:

    • Bitcoin has reached new peaks, and it attracted crypto enthusiasts alongside new supporters.
    • Actress Lindsay Lohan published a paid video promoting Bitcoin and Ethereum

    As it makes new all-time highs, Bitcoin is now in the focus of the public’s attention once again. Astronomical price predictions are popping up left and right and even some celebrities are now publicly talking about cryptocurrency.

    Lindsay Lohan has made a video recently and uploaded it on Cameo, a site where users can pay celebrities to record videos. In the video, Lohan said that Bitcoin and Ethereum could increase to $100,000 and $10,000, respectively. These kinds of celebrity promotions are similar to what we saw in 2017, where many celebrities promoted ICOs.

    Many celebrities supported ICOs in 2017

    Many crypto enthusiasts remember 2017. It was an adventurous year, and it seemed like every entrepreneur on the planet was coming out with a new ICO (initial coin offering). It was difficult to distinguish between legitimate projects and those who were just after a quick cash grab at the expense of their investors. In order to attract more investors, many projects paid celebrities to promote their projects. 

    Floyd Mayweather and DJ Khaled are two celebrities that promoted the Centra ICO in 2017. Later, SEC accused Centra of fraud and faking partnerships with larger companies. Many investors lost their money in these projects, and now the investors are pursuing the mentioned celebrities via a lawsuit. 

    Lionel Messi was another superstar that promoted SRN, a project that raised capital for a particular Blockchain smartphone. Luis Suarez was another soccer player who announced a project named Stox. The project raised $33.3 million money in its ICO. Other celebrities like Ashton Kutcher and others supported different projects in 2017, and it seems that we see a similar event in 2021. 

    Bitcoin is now trading above the peak of 2017

    Bitcoin reached a new all-time high last week, and after that, it returned to around 35k. Bitcoin price is higher than the peak of 2017 right now. Ethereum, the biggest Altcoin, climbed above $1,000, a price level that was untouched since February 2018. 

    After reaching last week’s peak, BTC’s market cap increased to $700 billion, making Bitcoin more valuable than many major companies including Facebook. The main difference between the bull runs of 2017 and 2020 is that the previous bull-run was primarily driven by retail investors, while there’s a much greater number of institutional investors in the market now. 

    The published video shows that retail investors are returning to space. Retail investors, alongside institutional investors, could produce a colossal bull run that eclipses previous cryptocurrency market rallies. 

    The increased demand from retail investors is already being felt by cryptocurrency exchanges. Coinbase, one of the biggest crypto exchanges around the globe, experienced technical issues last week as its platform couldn’t keep up with the massive flood of users who were trying to trade cryptocurrency. 

  • 12th January: BTC/USD Rebounds to 36,000 and Turns Back Down, ETH/USD Repeats Bitcoin’s Graphic Pattern

    12th January: BTC/USD Rebounds to 36,000 and Turns Back Down, ETH/USD Repeats Bitcoin’s Graphic Pattern

    BTC/USD

    BTC/USD began the trading on 12th January at 35,468, according to the exchange rate at CEX.IO. In the first two hours, the pair edged down to 34,000. Then, starting from 03:00 UTC BTC/USD began an ascendency, which at 08:00 UTC took the pair to the 50-period simple moving average at around 35,600. The attainment of the moving average was a signal for a renewal of bearish price action, which was quickly confirmed: moving down consistently, the pair reached 32.501 in between 14:00 and 15:00 UTC.

    But the downside move was not final, the pair took a rebound to above 35,000, but its further progress was denied by 20-period and 50-period SMAs interlacing at 35,000 at around 18:00 UTC. Later in the evening, BTC/USD continued downward from under 35,000.

    The day’s picture shows a slightly reducing volatility. The rebound to the 50-period SMA on the 4-hour timeframe and the subsequent price drop, with the picture repeating on the hourly timeframe later in the day, is a clear indication that the correction is going to be continued in the medium term.

    The closest target for BTC/USD is the 2.618 Fibonacci retracement level at 31,000. Since that level has already been reached on 11 January, it will most likely not stand a second time. However, besides the 2.618 Fibonacci retracement level, the pair will also have to break the 20-day SMA on its way to lower domains. Further down the road, the 50-day SMA will be the next major target.

    ETH/USD

    Starting 12th January at 1,087, ETH/USD slipped to 1,040 in between 00:00 – 02:00 UTC. A recovery followed between 03:00 and 07:00 UTC, taking ETH/USD to the region around 1,140. Faced with the 50-period simple moving average on the 4-hour timeframe, the pair continued down, starting from 08:00 UTC, to 1,020, briefly falling below 1,010, according to the exchange rate at CEX.IO.

    From 14:00 to 18:00 UTC, the pair was on an upward course, rising to 1,120 at the top of the upswing and slightly above the 50-period SMA on the hourly timeframe. At 18:00 UTC, the pair began trending down, falling to 1,060 between 19:00 and 20:00 UTC.

    The 50-period SMA has been crossed down by the 20-period one on the 4-hour timeframe, which is a good signal for continued downward dynamics.  However, overall Ethereum looks less bearish than Bitcoin in January 2021, which is probably due to the catching up with Bitcoin’s upside progress generated in December 2020.

    Still, the downside course presently remains the likeliest in the medium term, the closest target being the 2.618 Fibonacci retracement level at 906.4. And we will most likely see it tested until the end of the week of 11th January.

  • Ripple CEO Brad Garlinghouse Comments on Recent SEC Lawsuit

    Ripple CEO Brad Garlinghouse Comments on Recent SEC Lawsuit

    Key highlights:

    • The SEC announced a lawsuit against Ripple in December last year, accusing the company of selling unregistered securities
    • The value of the XRP cryptocurrency plummeted in response to the news
    • Ripple CEO Brad Garlinghouse recently responded to the most common questions surrounding the lawsuit

    Ripple CEO comments on the SEC’s lawsuit

    Ripple CEO Brad Garlinghouse recently discussed the SEC’s lawsuit against Ripple and also talked about the possibility of the company settling with the SEC. Ripple’s general counsel Stuart Alderoty also commented on the issue, and the two pointed to some critical problems regarding the SEC’s allegations that Ripple’s sales of XRP are an unregistered securities offering. 

    Garlinghouse and Alderoty say that Ripple is actively working to defend itself against the allegations put forth in the lawsuit, and plans to provide a detailed response in the coming weeks.  Ripple is planning to break the silence and clarify the allegations around the company. 

    Garlinghouse touched on five critical questions on his Twitter, including the potential for a settlement and the allegations that Ripple paid businesses entities to utilize XRP. According to Garlinghouse, it’s normal for a payments network like Ripple to pay incentives to its customers, citing Mastercard and Visa as examples. 

    The Ripple CEO didn’t say anything about Ripple’s attempts in persuading platforms to list XRP, but he said that XRP is decentralized, and they have no control over which venues list or delist the asset. He also explained the recent issue involving investment company Tetragon. Tetragon invested in Ripple’s 2019 Series C and now wants Ripple to redeem its shares following the SEC lawsuit. Garlinghouse says that Tetragon only owns around 1.5% of Ripple, and that he is disappointed Tetragon is trying to take advantage of the SEC’s lawsuit against the company. 

    Before we can learn more about the case between Ripple and the SEC, we should wait until February. The two parties will discuss the case in a pre-trial conference on February 22. Ripple and the SEC may be able to find a solution regarding the issue that appeases both parties. Meanwhile, holders of the XRP cryptocurrency saw the value of their holdings plummet after the SEC announced legal action against Ripple.

  • Cryptocurrency Derivatives Ban Comes Into Effect in the UK

    Cryptocurrency Derivatives Ban Comes Into Effect in the UK

    Key highlights:

    • The UK announced the prohibition of cryptocurrency derivatives in October, and it came into effect recently
    • Crypto enthusiasts have criticized the decision, and they think it will be harmful

    Cryptocurrency derivatives were prohibited in the UK starting from January 6. The Financial Conduct Authority (FCA) first announced the news in October, following extensive discussions around the issue. The ban prohibits companies from offering crypto derivatives, including options, futures, and other similar instruments to customers in the United Kingdom.

    The FCA says the ban is designed to protect  retail investors, but the critics believe the decision will just  make the situation worse. Some argue that retail investors will simply move to unlicensed and unregulated platforms outside the UK to resume their trade. 

    Some critics like Dermot O`Riordan believe the  FCA doesn’t have enough knowledge to regulate the issue. He says there are good players like Coinshares for crypto derivatives in the UK, and the ban will force the users to go to other platforms that can`t protect them as well. Crypto derivatives fans will continue their trades in unlicensed places or some foreign venues, which will ultimately expose them to more risks.

    UK companies have started to abide by the ban

    Firms like CoinShares and eToro will suffer the most from the decision. They manage many crypto assets, and under the new rule, they will not be able to offer the same products as before. 

    IG is one of the other companies were forced to stop offering their cryptocurrency derivatives products. The company has CFD products that will discontinued so that the company can abide by the new rules. Coinshares believes these actions won`t have a big impact on its business, as their operations are diversified. The company believes in its user base and thinks it can manage the situation very quickly. 

    Final thoughts

    Crypto is a new field, and it can’t be regulated by using the traditional rules standard in finance or stocks. Many governments don’t yet have enough expertise to regulate the space in the best interests of the public. The governments need the cooperation of the crypto community in the area of rules. Without this cooperation, newly-introduced rules could make the situation worse for both investors and businesses instead of improving it.

  • Online Casinos Adapt to Decentralized Digital Currencies

    Online Casinos Adapt to Decentralized Digital Currencies

    The gambling industry faces unique challenges other industries usually aren’t subject to resolving. During 2020, online casino operators took on unprecedented hurdles they never expected or were prepared to tackle. One of the things that makes the online gambling sector so impressive is its ability to adjust and adapt without substantially faltering. Tech advances spun online casinos upside down by continually releasing gaming and software updates that enhanced players’ experiences. For example, mobile casino gaming platforms raged in popularity and value through the improvement of mobile devices.

    Online operators’ primary goal targets improving a player’s gaming experience to entice loyalty. Much like any other profitable business, online casinos take extra measures to funnel players into devoted VIPs. Virtual casinos are improving mobile casino gaming’s cross-platform experience by creating interactive elements to increase participation. The most crucial tech advancement to hit the gambling world is undoubtedly cryptocurrency’s introduction.

    Examples of How Cryptocurrency and Blockchain Ledgers Rocked Online Betting

    The majority of online players placing bets have heard about or used cryptocurrencies, such as Bitcoin or Litecoin. Cryptocurrencies function similarly to traditional monetary transactions. The essential difference between the two financial options is the currency’s decentralization from regulated platforms. Regular money gets regulated by third parties using a central platform controlled by institutions.  Rather than dealing with processing times and transaction fees, cryptocurrency allows players to skip the middle man’s involvement, which generally would be centralized institutional platforms.

    Online casinos quickly pounced on digital currency’s potential by introducing crypto casinos. Crypto casinos don’t accept other currencies other than digital currencies on blockchain ledgers. The exclusive use of digital currencies eliminates unbalanced conversions that take advantage of online gamers. Players at crypto exclusive casinos rarely face the same financial frustrations that plague traditional monetary platforms.

    In the past, most crypto casinos only accepted Bitcoin because it was the most well-known out of the growing selection of digital currencies. More virtual casinos began taking varying cryptocurrencies after the industry suffered a severe hit from the 2020 pandemic. Sportsbook operators mimicked online casinos by also implementing cryptocurrency transactions and support. Cryptocurrency correlates with online gambling accordingly to positively engage with consumers using alternative spending and gambling practices. A lot of the major bitcoin sports betting sites now accept at least 3 cryptocurrencies.

    Making Room for New Digital Currencies and Casinos

    Blockchain technology created a decentralized ledger platform that consequently set the internet gambling world ablaze. Thanks to blockchain technology’s protective and anonymous ledger, players began trusting digital currencies besides Bitcoin. CryptoCasinos maintains an updated menu of prestigious casinos that cater to sportsbook players using the most popular digital currencies. Sportsbook players instantly switched to digital currencies to utilize total anonymity, mainly because of the stigmas related to sports betting.

    Bitcoin busted open the casino and sportsbook markets and worked hard to gain players’ trust. Several cryptocurrencies launched after Bitcoin became an instant hit with casino operators and players alike. XRP, Litecoin, and Ethereum became accepted by a plethora of casino operations that catered to players from around the world. Mobile casino apps recently began utilizing crypto transactions after multiple digital currencies reached all-time high values.

    Resolving Problematic Issues Relating to Responsive Gaming

    Since the launch of online gambling, players have expressed complaints regarding slow transaction times, delayed deposits, and limited withdrawal methods. Virtual casinos responded by introducing responsive transactions with cryptocurrencies and blockchain ledger transactions. Players have access to responsive, anonymous gaming platforms with multiple financial selections.

    Virtual reality casino gaming possibly could replace brick and mortar casinos entirely. Machine learning and artificial technological advances continue to bring more realistic and exciting gaming opportunities for sports betting and casino gaming. 4K resolution and live streaming table casinos meshed with secure digital currency have revamped the appearance of even the most prestigious online casinos.

  • Will the Biden Administration’s Money Injection Keep the Bitcoin Bull Run Going?

    Will the Biden Administration’s Money Injection Keep the Bitcoin Bull Run Going?

    Key highlights:

    • Joe Biden is considering a new stimulus package for Americans
    • When the Federal Reserve and the government print more money, people seek havens against inflation
    • Printing more money will weaken the dollar, and could very lead to more adoption for Bitcoin

    Now that both the United States Senate and the House of Representatives are in control of the Democratic Party, Democrats will find it a lot easier to implement their economic and monetary policies.

    A Democrat-led economic policy is likely to lead to additional stimulus packages. Reports say that Joe Biden is speculating about a stimulus package in the form of $2,000 checks.

    The new stimulus and printing of more money will attract people to assets like Bitcoin. Bitcoin started a bull-run after March 2020, and one of the underlying factors that helped provide fuel to the Bitcoin rocket was the accelerated money printing by the US government. When there is more liquidity in the market, Bitcoin’s ascending movement is likely to accelerate.

    The constant money printing will increase the inflation rate, and both individuals and institutions will be looking for safe havens against inflations in order to protect their purchasing power.

    Bitcoin price increased from $10,000 to more than $40,000 in around 4 months. Institutional investors like MicroStrategy entered the BTC market, getting rid of their USD reserves to protect themselves against inflation.

    Biden’s measures in the future might accelerate the BTC surge, allowing the Bitcoin price to touch new peaks. The interest rate in the United States is barely above 0% right now, and it is another factor that forces people to take out their money from the bank accounts.

    Experts expect unprecedented inflation in the coming years

    The United States government printed $3 trillion in 2020. The influx of this massive amount of money has serious consequences, and it will inevitably lead to an increase in the inflation rate. Quantitative easing policies will make scarce assets like Bitcoin more attractive. We already saw many institutions joining the BTC market in 2020, creating an unprecedented capital inflow to the Bitcoin market.

    The bond market can predict future inflation, and the recent increase in the rate of bonds that is the all-time high in the past two years shows a more massive inflation rate in the long term.

    The current money printing activities have weakened the dollar, and a tsunami of inflation is on the way. The weakening process is likely to continue due to the new stimulus packages.

    Bitcoin reacted well to the measures of the US government after the pandemic. Bitcoin has touched new all-time highs recently, and traders expect more growth in the long-term. We might see corrections on the way, but many indicators suggest that the BTC rally is poised to continue.

  • Top 3 Coins to Watch – Week 2

    Top 3 Coins to Watch – Week 2

    As usual, several projects are deploying important mainnet upgrades and launching new features this week. Our this week’s selection consists of three coins that we think will benefit from the increased attention. Will this be enough to end what it appears to be a significantly bearish week in the green?

    1. Blockstack (STX)

    Blockstack is the project behind the Stacks blockchain, an open-source and developer-friendly network for building decentralized apps and smart contracts on Bitcoin blockchain. The network makes use of the Clarity smart contract language and offers new ways to earn BTC.

    Buy/Sell STX

    The Stacks 2.0 Mainnet Goes Live on January 14

    The highly anticipated Stacks 2.0 Mainnet launch is scheduled to occur on January 14. The mainnet will support smart contracts and decentralized applications (dApps) deployment on the Bitcoin network. Furthermore, users will soon be able to lock the platform’s native currency – STX to earn BTC rewards. Blockstack team calls this novel function “Stacking”. The important milestone for the platform will be celebrated at a Virtual Mainnet Launch Event, which will take place on January 14 from 10:00 to 18:00 EST. In addition, one of the bigger cryptocurrency exchanges OKCoin has already revealed its plans to list STX as well as intent to offer a seamless for the users to participate in stacking.

    2. Matic Network’s (MATIC)

    Matic Network is an Ethereum Layer 2 scaling solution that aims to provides major scalability improvements. The Matic protocol plans to deliver supersonic speeds and throughput by utilizing a modified version of Plasma. Its Layer 2 solution consists of several simultaneously run Proof-of-Stake sidechains that regularly push the data to Ethereum, creating network checkpoints.

    Buy/Sell MATIC

    A Wave of DeFi Integration Caused MATIC to more than Double its Price

    The Matic team deployed several improvements throughout 2020, such as a Matic-Ethereum proof-of-stake token bridge that facilitates faster transfers between the networks and the final version of MATIC staking, that will allow the project to further prosper and perhaps survive even when Ethereum concludes the migration to its improved 2.0 variant. In addition, several notable projects, including the virtual world game Decentraland and DeFi protocol Maker have already integrated Matic.

    As a result, the MATIC, the network’s native currency delivered an amazing price performance in the first few days of 2021. Driven by the congested Ethereum network (and consequently high fees on the mainnet) and several DeFi integrations, MATIC surged from $0.0175 to almost $0.04 in the first seven days of this year. Although MATIC lost some of its value in Monday’s correction that affected pretty much every cryptocurrency the token is still up by more than 36% YTD. If the Ethereum network stays congested and more projects announce Matic integration, the MATIC token could easily outperform ETH this week.

    3. Loom Network (LOOM)

    Loom Network allows developers to build highly scalable games and social apps on the blockchain. The platform utilizes an independent blockchain called DAppChain, which uses Relay as a connection to Ethereum smart contracts. The network’s native currency LOOM token functions as a membership pass to access all Loom Network-ran DApps.

    Buy/Sell LOOM

    LOOM Token Swap on January 15

    The Loom team is looking to integrate zkRollups Ethereum Layer 2 solution in its next instance of the protocol. This will create zkLoom protocol, which will rely on the security guarantees provided by Ethereum itself rather than placing the trust into the hands of LOOM validators. However, the existing LOOM token contract is not upgradable or compatible with zkLoom, so LOOM holders will have to swap their existing tokens for new ones through a new LOOM token contract that will be deployed on the Ethereum mainnet. The token swap is set to take place on January 15. Tokens held on exchanges will be processed automatically, LOOM held in user’s private wallets, however, will have to be converted using the Basechain dashboard. In either case, you can find more information about the tokens swap process here.

  • Countries and Digital Currencies in the Next Year

    Countries and Digital Currencies in the Next Year

    Bitcoin rocked the world with its release in 2009, and in the subsequent decade, the concept of cryptocurrency gained real traction in the market. Although it’s still very much on the periphery, this new format has slowly become a more widely accepted method of payment.

    The process of acceptance does have a similar feeling to the fears over potential effects on the future spread betting, which never materialized. And this is exactly what we see happening now, as cryptocurrency starts to integrate into mainstream financial markets.

    Always volatile, digital currencies received a blow when China opted to outlaw them in 2017. Many predicted the trend would swiftly come to an end, but there was more to the story than met the eye. The objection from China seemed to be less about the concept of a digital currency, and more about who had control as it worked hard to release the digital yuan.

    China wasn’t the only country who had a digital form of money in its sights; here’s a closer look at developments.

    Digital Currencies: an Oversight

    For years, Bitcoin and its peers such as Ethereum have been known generically as cryptocurrency. They are a type of e-currency which shares similarities with digital currencies, without being exactly the same.

    The critical difference is that cryptocurrencies are decentralized with regulation being provided by the community. In stark contrast, a digital version is centralized, making it no more than a digital version of money already in circulation.

    This has been the major criticism of digital currencies. Rather than offering real innovation, they’re simply a move to making people use the existing money in digital form.

    Where to Find Digital Currencies

    Digital currencies are still very much in their infancy with few countries launching publicly so far. However, there are many in the pipeline, and there is a real global appetite for digital currencies to become a success.

    Part of the reason for this is organic; there has been a shift away from paper and coin currency, so a more sophisticated electronic option seems inevitable.

    The countries which have launched their own digital currency so far (or are about to) include China, Ecuador, Tunisia, Singapore and Senegal. Others who are following hot on their heels include Sweden, Russia, Japan and Estonia.

    For some of these nations, the end goal is to replace fiat money completely, relying entirely on the new digital currency. For others, the digital format is only intended to supplement continued use of traditional cash.

    So far, the US and the Eurozone have resisted the urge to join the throng but will be watching closely. As numbers swell, it’s expected there will be growing pressure for even more countries to join in with the digital revolution.

    Not Without Risk

    While digital cash is still in the very early stages, concerns have already been raised about what this could mean, especially in authoritarian countries. Relying entirely on digital money as China plans to do means that every transaction and purchase can be tracked, something that many feel apprehensive about.

    It could also spell the end for Bitcoin and crypto, or at the very least halt its move into broader use. More central banks could follow the example of China and ban decentralized currency, forcing users to move to their digital cash and abandoning Bitcoin and co.

    It’s too early to predict how events will unfold, but it’s clear that as a centralized currency, a digital currency does not offer the same benefits as cryptocurrency. Whether the two can exist in tandem remains to be seen.