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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

‘Bitcoin maxis’ like Solana, but is there sound logic to that

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Recent changes in cryptocurrency market dynamics have fueled the popularity of altcoins like Solana [SOL]. It recently became one of the most trending blockchain platforms around on the back of its surging price.

The cryptocurrency, in fact, had a 1-year ROI of over 4,200%, despite dropping by 34% since its peak in early September. Despite the latest hiccup in value, however, market observers believe the project has managed “winning over a significant number of Bitcoin Maxis or near-maxis.”

Ikigai Funds’ Travis Kling offered this observation on Twitter when he said,

“After talking to a bunch of folks over the last couple months, it’s pretty clear that SOL is successfully winning over a significant number of BTC Maxis or near-maxis, which have previously owned zero ETH or very little ETH.”

While the crypto-space is competitive, the tech-twist to the age-old saying – “competition of your competition is your ally” also holds true. Solana is not competing with Bitcoin. Instead, it is competing with Ethereum’s position in decentralized finance, NFTs, and smart contract offerings. Given the fact that transacting on Ethereum is still a pain for some users, Solana’s cheap and fast transactions provide a better alternative to many.

Solana’s DeFi projects recently crossed $3 billion, despite Ethereum hosting the maximum number of DeFi and NFT projects. While Bitcoin “maxis” are also opting-in for smart contracts, they prefer SOL over ETH, according to Kling.

Why? According to the exec,

“I think maxis look at ETH vs SOL and think –

Well as long as its not going to be all that decentralized, might as well have a smart contract platform that can actually handle enough throughput with cheap enough fees where it can really scale, instead getting choked up like ETH.”

However, not everyone agrees with Kling’s opinions. Many believe the decentralization narrative to be wrongly used by Kling, with another Twitter user @mikemcg0 noting that Ethereum is “more decentralized than BTC.” Anyone can run an Ethereum validator,” he said, “but only a select few oligopolies can mine BTC.”

Even so, Bitcoin mining has spread out even more after the recent China crackdown. Although the process is extensive in terms of effort, time, and money, according to another user, “anyone can” mine BTC “if they have the entrepreneurial mindset.”

Now, the latest outage faced by Solana did raise questions about the level of centralization. However, that has not really discouraged those who want to indulge in DeFi, NFTs, and smart contracts. As Solana forges new contracts with Hacken Foundation and Gate.io, others institutions like Osprey Funds and Grayscale are in a race to include Solana in their respective bouquet of products.

In fact, Osprey Funds has already registered Osprey Solana Trust with the SEC.

‘Ethereum killer’ or not, Solana is en route to gaining more interest from the booming crypto-market. Even turning so-called BTC maxis in the process.

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Source: https://ambcrypto.com/bitcoin-maxis-like-solana-but-is-there-sound-logic-to-that

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Blockchain

Europe Now World’s Biggest Crypto Economy: Boasts Over $1T Worth of Transactions

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Central, Northern, and Western Europe (CNWE) has grown into the world’s largest cryptocurrency economy since July 2020. The region experienced a massive increase in trading activity since then– particularly in the DeFi space.

The European DeFi Boom

Data from Chainalysis shows that CNWE received over $1 trillion in cryptocurrency over the last year alone. This represents 25% of global trading activity. Furthermore, it is responsible for at least 25% of all crypto value received by other regions, including 34% of the value received in North America.

This makes the EU the most concentrated in the world in terms of cryptocurrency trading volume. This is partially due to increases in all forms of trading activity over the past year, coming mostly from institutional investors.

Large institutional transaction value grew from $1.4B in July 2020 to $46.3B in June 2021, coming to take up half of all CNWE trading activity. The most pronounced increases were seen on DeFi protocols, where over 80% of these large institutional transactions were sent in June.

The impact of DeFi is further established when ranking coins in terms of transaction activity in the region. Despite being the largest cryptocurrency by market cap, Bitcoin heavily trails Ethereum in transaction volume among large institutional investors. Additionally, DeFi protocols took up a majority share of funds received by cryptocurrency services in CNWE in June 2021.


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The Decline in Eastern Asia

CNWE has seen significant absolute increases in its crypto trading volume. However, its new place as the world’s largest trading hub is partly due to a sharp decline in market share held by Eastern Asia– the previous world leader.

In early 2019 the region held over 30% of global transaction volume. This figure has since fallen sharply to about 15% – less than CNWE, North America, and even Central and Southern Asia.

This may be related to China’s continued push to prevent and discourage crypto trading within its borders. China re-announced their ban on crypto trading in the country days ago, and have been moving to prevent all access to exchanges within the country.

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Source: https://cryptopotato.com/europe-now-worlds-biggest-crypto-economy-boasts-over-1t-worth-of-transactions/

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Blockchain

Here’s why a multi-CBDC bridge is being tested on Ethereum

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The race to launch the first CBDC is one the world is following intently. While most have their eyes fixed on China’s digital yuan pilot, a group of countries has come together to take CBDCs a step further.

Phase 3 of Project Inthanon-LionRock saw BIS Innovation Hub Hong Kong Centre, the Digital Currency Institute of the People’s Bank of China, and the Central Bank of the United Arab Emirates experiment with a multi-CBDC bridge or an mBridge.

What does this mean?

The mBridge initiative would ideally allow central banks in different countries to issue and redeem their own CBDCs across borders on a common platform – without having to depend on correspondent banks.

Meanwhile, commercial banks would be able to “submit peer-to-peer CBDC push payments.”

The BIS September 2021 report stated,

“If successful, an efficient, low cost, compliant and scalable multi-currency, multi-jurisdiction arrangement can provide a network of direct central bank collaboration, greatly increasing the potential for international trade flows and cross-border business at large.”

The report further clarified,

“The prototype demonstrates a substantial improvement in cross-border transfer speed from multiple days to seconds, as well as the potential to reduce several of the core cost components of correspondent banking.”

Here, it is also interesting to note that the project’s Phase 2 prototype was built on Ethereum. This was because the core layer of the prototype contained the blockchain ledger and smart contracts.

Notes on features

As a multiple CBDC project, regulation and compliance were functional requirements. Central banks would be able to monitor transactions in real-time, set balance limits, control the balance held by their commercial banks, and use data for surveillance.

Scalability was also part of the design to later onboard more participants and jurisdictions.

However, one complication was the wide difference in remittance charges across countries. While the global average was calculated to be 6.38% of the remitted sum, the report observed that even a percentage as low as 1% would be costly for payments in the millions of dollars.

An update from China

Alongside the mBridge project, China has also been steamrolling ahead with its CBDC program.

Changchun Mu, Director-General of the DCI of the People’s Bank of China. confirmed that e-CNY pilots have been taking place in 10 areas.

Mu added,

“Payment methods such as QR code and tap-and- go have been well-supported and innovative services such as dual-offline payment and wearable device payment have been tested for safety and efficiency.”

Meanwhile, Howard Lee, Deputy Chief Executive of the Hong Kong Monetary Authority, suggested that an e-HKD could also be in the works.

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Source: https://ambcrypto.com/heres-why-a-multi-cbdc-bridge-is-being-tested-on-ethereum

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