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Bitcoin market Analysis

The bitcoin market in the first half of this year was a bit speechless. On the whole, there are ups and downs. The bitcoin price has…

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Sajjad Hussain

The bitcoin market in the first half of this year was a bit speechless. On the whole, there are ups and downs. The bitcoin price has dropped from around 8000 to 3800, and then it has been drawn back and then touched 10,000 points. It has dropped to about 9000–10000 points and hovered. The market situation is unthinkable. Many people are very depressed this year. Why do everyone say that Bitcoin will hit the 20,000 mark after hitting 10,000 points? Everyone is optimistic about this market, but it is not going well. The reason is tangled, how to say, it is very complicated, let’s sort it out.

First of all, although Bitcoin has a certain degree of hedging and hedging, there is an important issue: the official will not be used as a value reserve because of the existence of Bitcoin. At least at present, the central bank rarely makes Bitcoin reserves. Not only Bitcoin, but all digital currencies are not favored by the authorities. You may say that gold is also a “commodity attribute”, and bitcoin is not a “commodity attribute”. Why can gold be stored by the central bank, but bitcoin is not stored by the central bank? It’s simple: the current blockchain security performance is completely unable to meet the storage requirements of the central bank, and the stability of the blockchain network is far less than gold.

What I said is valid. Security, for example, an An account is frequently stolen. Okay, this question is perfectly explained. Uh uh

Stability needs to be detailed. First, if you leave the Bitcoin network, the central bank’s storage of Bitcoin will become meaningless. We assume that bitcoin has monetary attributes, then bitcoin will be regarded as gold and become the basis of value. So, how does Bitcoin guarantee value? Rely on mining? If the value can be guaranteed in this way, then there is no need to develop financial services. Only the open mining of the Bitcoin network can create a lot of wealth value for the central bank, which is unrealistic. At this time, bitcoin and gold are one of the credit foundations of paper money, so the result of guaranteeing value is that both bitcoin and gold will serve the price of paper money, and both bitcoin and gold will open futures hedging at the same time. Gold does not have a network, at least to ensure that the market circulation of physical goods can be delayed delivery, Bitcoin without network support is nothing… like an isolated blockchain, no proof of work, no proof of equity, how to explain What value does this bitcoin have? Assuming that Satoshi’s 980,000 currency account is active, there is still a chance for the currency price to surge. But the problem is that the 980,000 coins are locked in a block account, which is equivalent to the account offline. Once the block is upgraded, is it necessary to engage in a hard fork? After the fork, is this bitcoin still bitcoin? The Bitcoin network has been hard-forked so many times, and it’s not a long memory yet? Therefore, for security reasons, it is impossible for the central bank to allow Bitcoin storage institutions to connect to the block network, but Bitcoin can only prove its value by connecting to the block network. That being said, according to this point, even if Bitcoin becomes the basis of value, the central bank will not dare to save.

Furthermore, the cost of bitcoin’s network services is also very alarming. In order to store bitcoin, the central bank needs to build a dedicated digital currency storage server, server site, power supply, dedicated network, and full-time staff guards. Speaking of which, everyone will find that the cost of Bitcoin storage actually exceeds the cost of gold storage? ? ? What the hell is this? The chemical properties of gold ensure that loss-free storage is possible as long as the environment is not extremely harsh, and security professionals do not need a high cost. The cost of the same bitcoin server + venue has already skyrocketed. The storage security personnel needed are high-end talents in the IT industry. Think about how much a person needs to cost. And not only these, but also with other security personnel to ensure the safety of these people, but also to prevent the transfer of Bitcoin from the network. Wait a minute, when it comes to this, it’s already starting to get bigger. This does not count the daily loss of water and electricity. And there is one more important thing: the server is regularly upgraded, regardless of hardware and software, which upgrade cost is acceptable. Moreover, IT electronics also needs special certifications, etc., which is very complicated. and so:

Okay, go on. We do not talk about these cost issues. As I said just now, Bitcoin will leave the blockchain network worthless. Here is another question: How dare you guarantee that more than 51% of the network will not be destroyed? Can you guarantee that the network will not be completely paralyzed under the global nuclear war? Can you guarantee that the network stays alive when the carrier is paralyzed? Can you guarantee that the network will not be paralyzed when the root server fails? There are too many cases of network paralysis, even if the Sino-US submarine optical cable is cut off with a knife, it is also a major event to paralyze the network. So looking at gold, unless a nuclear bomb comes to evaporate gold into air, no matter how much you toss about it, gold is these golds, and there will be no change.

In addition to the fundamentals of Bitcoin, there is another major reason, which is the common problem that digital currencies currently have: the mark of zhuangzhuang is too serious, and the orientation of value investment is unknown. Most people shouted: “Consensus” and “Faith”, but most of the things they do are arrogant things like spread arbitrage. False consensus and false beliefs are very serious in the currency circle. The most typical case is: radar coin. As we approach the timetable for radar currency cash out, there will be more eye-catching events.

So, what I want to say here is, don’t have illusions about the impact of Bitcoin on 20,000. Let’s first see if we can stand on it.

Source: https://medium.com/@sajjadhussain_11869/bitcoin-market-analysis-9696815f60c9?source=rss——-8—————–cryptocurrency

Blockchain

Aave hits record $288 high as demand for flash loans and staking increases

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Aave (AAVE) price has been on an absolute tear for weeks and today the DeFi-token rallied to a new all-time high at $288.90. 

The decentralized finance protocol is one of the most popular in the market and the recent rally in the DeFi sector is one of the driving forces behind AAVE’s rally.

AAVE/USDT 4-hour chart. Source: TradingView

At the start of 2021, AAVE price was trading at $83 and the recent rally appears to have bolstered the protocol’s surging total value locked, increasing buy volume on spot and derivatives exchanges and the continued development of Aave’s lending platform and flash loan issuance.

TVL soars to a new high

Data from DeFi Pulse shows that Aave’s TVL rose from $2.03 billion on Jan. 1 and as (BTC) and Ether (ETH) price went parabolic Aave’s TVL also surged.

Total value locked on AAVE. Source: DeFi Pulse

Currently, Aave’s TVL sits at a new all-time high of $3.75 billion, making the platform the second-largest DeFi platform by TVL behind Maker (MKR).

The steady addition of new tokens to the lending and borrowing protocol increases the likelihood that its TVL will continue to rise and help AAVE retain its standing as one of the top DeFi projects in the cryptocurrency space.

Staking drives demand for AAVE token

AAVE’s trading volume also surged at the beginning of 2021, increasing from $200 million on Jan. 3 to a high of $928 million on Jan. 16.

AAVE price vs. Reported trading volume. Source: TheTIE

As AAVE price reached a new high, it’s 24-hour trading volume notched a record $1.06 billion. This volume surge is partially driven by investors acquiring more tokens for staking, with 26.8% of the total supply of AAVE currently staked on the platform earning an APY of 6.1%

Flash loans attract investors

Another reason for AAVE’s recent surge is the growth of its flash loans.

Flash loans allow cryptocurrency holders to collatoralize their portfolio to fund other purchases or new crypto purchases. The loans also help investors utilize the value in their tokens without the need to sell see them and create a taxable event.

Since launching flash loans less than 12 months ago, more than $1.7 billion have been issued and it’s expected that this figure will increse as the crypto bull market progresses.

Total flash loan issuance to date on AAVE. Source: Messari

As can be seen in the chart above, the most dominant token requested for flash loans is the DAI stablecoin, followed by USDC and ETH. Data from Messari shows that Aave issued $25 million in loans in the first half of 2020, $500 million in Q3, and nearly $1 billion in Q4, including $450 million in December.

The expansion of the flash loan concept will likely attract more users to Aave, especially since they can be used for arbitrage opportunities between DEXs, collateral swaps, self-liquidations and a variety of other applications within the DeFi sector.

Source: https://cointelegraph.com/news/aave-hits-record-288-high-as-demand-for-flash-loans-and-staking-increases

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Blockchain-based-video-game

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Ethereum and the broader cryptocurrency market have seen mixed price action over the past few days and weeks. Ethereum Price is Surging Despite the selling pressure it has experienced at $1,200, ETH beat all odds and surged beyond $1,400, recording a new all-time high at $1,423.38.  At press time, the…

Source: https://btcmanager.com/Blockchain-based%20video%20game%20community%20and%20development%20platform,%20Enjin%20(ENJ)%20witnesses%20the%20launch%20of%20the%20highly-anticipated%20dark%20sci-fi%20action-adventure%20game,%20Age%20of%20Rust./

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Cryptocurrency makes World Economic Forum’s Davos Agenda

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The World Economic Forum’s upcoming Davos Agenda will feature two separate sessions on cryptocurrency, offering another compelling sign that digital assets have permeated mainstream consciousness. 

The sessions, titled Resetting Digital Currencies, will be held on Monday and Thursday. The first session will feature five public speakers, including Bank of England Governor Andrew Bailey and Hikmet Ersek, president and CEO of Western Union.

Thursday’s group features four speakers, including Tharman Shanmugaratnam, a senior minister for the government of Singapore, and Zhu Min, chairman of the Beijing-based National Institute of Financial Research.

“COVID-19 has accelerated the long-term shift from cash,” reads the prospectus for both sessions. “Meanwhile, central bank digital currencies are emerging, potentially transforming how people use money worldwide.”

It continues:

“What policies, practices and partnerships are needed to leverage the opportunities posed by the rise of digital currencies?”

Davos Agenda is a five-day summit featuring some of the world’s leading figures in finance and government. The cryptocurrency series falls under the summit’s “Fairer Economies” theme. Other themes include “Tech for Good,” “How to Save the Planet” and “Healthy Futures.”

The World Economic Forum is devoting more resources to understanding blockchain technology and cryptocurrency. The Geneva-based organization has even created a cryptocurrency working group, which only last month published its inaugural review focusing on the various use cases for digital assets “beyond price and speculation.”

The Forum’s research has cited blockchain technology as a key driver of “sustainable digital finance.” Blockchain and smart contract capability, the Forum’s researchers argue, can unlock “hidden values of legacy digital systems.”

Central bank digital currencies, or CBDCs, are one area of research the Forum has delved into over the past 18 months. In Jan 2020, the Forum announced it had developed a framework to help banks “evaluate, design and potentially deploy CBDC.” The framework was developed in conjunction with over 40 central banks, financial institutions and academic researchers.

Source: https://cointelegraph.com/news/cryptocurrency-makes-world-economic-forum-s-davos-agenda

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