For the tech world, 2021 has started off on a rather strong and unusual note.
Perhaps it was a long time in coming, but the world seems to have suddenly taken a turn toward personal accountability and control over their data.
The updates effectively allowed Facebook to have direct access to data from messages that private users send and receive from businesses through the platform. Although the update doesn’t affect the privacy of messages that users exchange with friends and family, distrust over Facebook’s handling of personal data seems to have hit an all-time high.
Therefore, when Elon Musk recommended users switch from WhatsApp to Signal, downloads of the app exploded. Downloads of Telegram, another privacy-focused messaging app, similarly skyrocketed.
— Elon Musk (@elonmusk) January 7, 2021
The WhatsApp-Musk debacle also closely coincided with major concerns over the power that big tech companies have over the distribution of information on the internet. Citing concerns of further violence, a number of social media platforms made the decision to unilaterally ban US President Donald J. Trump from their platforms.
While it may be that deplatforming Trump did help to quell further violent protests in the United States, citizens and politicians on both sides of the aisle are concerned that power over the American narrative has become too centralized–and too privatized.
Desires for privacy and control in fintech present a strong case for crypto and DeFi
While neither of these incidents were directly related to the fintech world, the desire for privacy and personal control over information has never been stronger.
Therefore, the case for cryptocurrencies as an actual means of transacting value (rather than just a speculative investment) seems to be on the rise.
In a series of tweets on Twitter’s decision to ban Trump, chief executive Jack Dorsey briefly wrote about the power of Bitcoin’s decentralized model as a possible solution for concerns over Big Tech’s centralized power.
“Yes, we all need to look critically at inconsistencies of our policy and enforcement,” he said. “Yes, we need to look at how our service might incentivize distraction and harm. Yes, we need more transparency in our moderation operations. All this can’t erode a free and open global internet.”
“The reason I have so much passion for #Bitcoin is largely because of the model it demonstrates: a foundational internet technology that is not controlled or influenced by any single individual or entity. This is what the internet wants to be, and over time, more of it will be.”
Indeed, the case for decentralization is stronger than ever. However, Douglas Horn, Chief Architect at Telos Blockchain, told Finance Magnates that the road ahead may not be an easy ride.
“The most important developments in fintech will be broader adoption [of crypto], and reduced fees by moving to chains with lower transaction costs,” he said. “Pent-up frustration about rug pulls, hacks, misrepresentations about governance and other hijinks will lead to a backlash that is likely to rage for a while then move on without really changing much.”
Additionally, Horn predicts that “‘certifying agencies’ will pop up and become the next group of companies with their hands out to crypto projects for certification fees, similar to exchange listing fees. And by the end of 2021, at least one significant player in traditional finance will move into DeFi in a big way, leading the charge for more.”
The power of choice is stronger than ever
Because these themes of privacy and control are most present in the public conversation than ever, individuals may be more likely to gravitate towards fintech platforms and services that put these things at the core of their mission.
And, as Veem CEO Marwan Forzley told Finance Magnates, fintech users have more choices than ever in 2021.
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“Fintechs will provide more choice,” this year, Marwan told Finance Magnates. “Financial technology, and fintech as it relates to payments in particular, are expected to double down on the customization they extend to their users.”
“Whether it’s optionality in routing or more integrated services, fintechs are optimizing customer experiences intended to provide the most choice as possible through personalization, integrations, and user preferences to fit their needs.”
Forzley explained that The growth in the number of choices available in the fintech sphere has largely been fueled by necessity. “COVID-19 has fueled the acceleration of e-commerce and online business services as well as remote labour markets — increasing overall fintech adoption,” he said.
“This trend is not temporary, and is expected to grow even post COVID-19 as fintech reduces friction and strengthens online buying experiences. Financial technology enables small businesses to quickly hire and mobilize their remote workforce, and set up regional supply chains, through a faster and more convenient payment and payroll experience.”
As financial conditions continue to change, retail traders are entering financial markets in droves
The COVID-19 pandemic has also brought an unprecedented amount of interest in retail asset trading–a trend that many believe will continue to grow and develop in 2021 and beyond.
Indeed, Milind Mehere, CEO & Co-Founder at Yieldstreet, told Finance Magnates that “in 2020, the power of technology provided access to investments beyond the stock market, including alternative assets and digital currencies. In 2021, we believe the most important development will be the mass adoption of alternative investments by everyday investors.”
Additionally, Mehere believes that “The modern portfolio structure for retail investors could evolve after being decades of gospel.”
“Generally speaking, the traditional 60/40 portfolio no longer provides the kind of benefits it once did. Equity markets are trading at, or near, some of their highest valuations and have become increasingly more volatile with large sudden swings.”
COVID-induced changes in monetary policy could drive interest into alternative assets and fundraising models
This shift in portfolio structure conceptualization is likely in part due to the fact that monetary policy in the United States has changed considerably in response to the COVID-19 pandemic. The dollar seems to be growing increasingly weaker; many believe plans for further QE and stimulus spending could send it to its lowest point in decades.
“The 10-year United States Treasury rate is at, or near, its lowest point and becoming increasingly more correlated to equities, suggesting its benefit of being a counterbalance to equity risk may be diminishing,” Mehere said.
In addition to increased concerns about privacy and control, disillusionment with traditional assets could also be a driving force for cryptocurrencies and other alternative assets: “we believe we will see an increase in the adoption of alternatives, which offer returns typically uncorrelated to equities and bonds and can help mitigate overall risk in portfolios,” Mehere said.
Douglas Horn also believes that blockchain-based fundraising options could become more popular as a result of changing monetary policy.
“If past patterns hold, there will be a lot of stimulus money, but much of it will be distributed through banks which will fail to deliver the amounts intended to the intended recipients,” he said. “Small businesses will be in serious financial trouble and unable to get traditional loans.”
Therefore, “for survival, a number of them will turn to new funding structures like tokenization. It won’t be a large number in terms of total businesses, but from the blockchain adoption and normalization standpoint it will be enormous.”
“This will further drive adoption and reduce the drive towards harsh regulation since it will likely save many businesses where the government programs will have failed.”
As fintech takes over traditional finance, VCs could pour big money into small companies
At the same time, however, VC funding could save the day for many small fintech companies.
Veem CEO Marwan Forzley told Finance Magnates that “I think fintech funding in both the public and private markets will continue to trend upwards in 2021.”
“The IPO market is poised to dominate in the first half of 2021, with anticipated IPOs from Affirm, Robinhood, Better.com, SoFi, and Marquette,” he said. “In addition, venture capital funding trends will likely accelerate, given the dry powder and capital raised in 2020.”
“Political and economic uncertainty weigh on the minds of many. Equity markets trading at their highest valuations raise concern for a 2000’s-like bubble burst. If that event does take place, the public markets may experience a correction, and we’ll see valuations come back closer to earth.”
“However, I would not expect private funding to be affected by a burst for 12-18 months, and we should continue to see the current deal flow trends we experienced in 2020.”
Bitcoin Proponents Against Elon Musk Following Heated Dogecoin vs Bitcoin Tweets
Last week, Elon Musk and Tesla shocked the entire crypto industry following an announcement that the electric car company will no longer accept bitcoin payments for “environmental reasons.”
A Hard Pill For Bitcoin Maximalists
Giving its reasons, Tesla argued that Bitcoin mining operation requires massive energy consumption, which is generated from fossil fuel, especially coal, and as such, causes environmental pollution.
The announcement caused a market dip which saw over $4 billion of both short and long positions liquidated as the entire capitalization lost almost $400 billion in a day.
For Bitcoin maximalists and proponents, Tesla’s decision was a hard pill to swallow, and that was evident in their responses to the electric car company and its CEO.
While the likes of Max Keiser lambasted Musk for his company’s move, noting that it was due to political pressure, others like popular YouTuber Chris Dunn were seen canceling their Tesla Cybertruck orders.
Adding more fuel to the fire, Musk also responded to a long Twitter thread by Peter McCormack, implying that Bitcoin is not actually decentralized.
Bitcoin is actually highly centralized, with supermajority controlled by handful of big mining (aka hashing) companies.
A single coal mine in Xinjiang flooded, almost killing miners, and Bitcoin hash rate dropped 35%. Sound “decentralized” to you?https://t.co/Oom8yzGRNQ
— Elon Musk (@elonmusk) May 16, 2021
Musk Working With Dogecoin Devs
Elon Musk, who named himself the “Dogefather” on SNL, created a Twitter poll, asking his nearly 55 million followers if they want Tesla to integrate DOGE as a payment option.
The poll, which had almost 4 million votes, was favorable for Dogecoin, as more than 75% of the community voted “Yes.”
Following Tesla’s announcement, the billionaire tweeted that he is working closely with Dogecoin developers to improve transaction efficiency, saying that it is “potentially promising.”
Tesla dropping bitcoin as a payment instrument over energy concerns, with the possibility of integrating dogecoin payments, comes as a surprise to bitcoiners since the two cryptocurrencies use a Proof-of-Work (PoW) consensus algorithm and, as such, face the same underlying energy problem.
Elon Musk: Dogecoin Wins Bitcoin
Despite using a PoW algorithm, Elon Musk continues to favor Dogecoin over Bitcoin. Responding to a tweet that covered some of the reasons why Musk easily chose DOGE over BTC, the billionaire CEO agreed that Dogecoin wins Bitcoin in many ways.
Comparing DOGE to BTC, Musk noted that “DOGE speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down.”
Ideally, Doge speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down.
— Elon Musk (@elonmusk) May 16, 2021
Max Keiser: Who’s The Bigger Idiot?
As Elon Musk continues his lovey-dovey affair with Dogecoin, Bitcoin proponents continue to criticize the Dogefather.
Following Musk’s comments on Dogecoin today, popular Bitcoin advocate Max Keiser took to his Twitter page to ridicule the Tesla boss while recalling when gold bug Peter Schiff described Bitcoin as “intrinsically worthless” after he lost access to his BTC wallet.
“Who’s the bigger idiot?” Keiser asked.
Who’s the bigger idiot? pic.twitter.com/YopCoat33W
— 🍊💊 Max Keiser (@maxkeiser) May 16, 2021
Aside from Keiser, other Bitcoin proponents such as Michael Saylor replied to Tesla’s CEO:
The world needs a decentralized, secure, deflationary store of value like #Bitcoin much more than it needs the more centralized, less secure, inflationary medium of exchange that you describe above.
— Michael Saylor (@michael_saylor) May 16, 2021
ETH Developers Calculated How To Defuse The Difficulty Bomb
ETH developers calculated how to defuse the difficulty bomb because if they leave it untreated, they will slow down the network as we can see more in our Ethereum news today.
Ethereum’s encoded difficulty bomb is set to explode this summer and James Hancock as well as Tim beiko said that the ETH developers calculated the time needed to delay the bomb and this could the last time the developers need to take that action. Ethereum developers agreed on Friday how to delay the difficulty bomb ad if that is left untreated, the entire network could be slowed down. The difficulty bomb is an old piece of code that makes mining on ETH slower and less profitable over time by increasing the lag between the production of blocks.
We just wrapped up #AllCoreDevs 113 😁
Recap below 👇🏻 https://t.co/wDU2vlNnBS
— Tim Beiko | timbeiko.eth 🦇🔊 (@TimBeiko) May 14, 2021
Ethereum 2.0 switches the network from proof of work as a way of validating transactions with powerful mining computers to Proo of Stake which rewards the ones that pledge the coins to the network. It takes an average of 13 seconds to mine a block on ETH right now and without delaying the bomb, it could take more than 20 seconds to validate the block by the end of the year. Ethereum developers agreed on how many blocks were quite necessary to delay the bomb until December. The calculation for the delay was proposed by the ETH core developers James Hancock as he said:
“The bomb’s always there, and we defuse it by turning the blocktime back just for the bomb.”
He later said that the proposal will delay the bomb by 9,700,000 blocks. Tim Beiko, the ETH core developer also said that the developers dismissed a proposal to delay the bomb next spring but that won’t be necessary. The developers expected that by December, the network will update to allow the ETH 1.0 the network that relies on PoW to communicate with ETH 2.0 as the new network relies on PoS and this is known as the Merge:
“If the Merge is ready by December, we won’t need to do anything about the bomb because we will move away from mining entirely.”
If the merge plans remain unimplemented, the Shanghai fork is expected to go live and will delay the bomb once again. The Bomb has been delayed three times so far.
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VeChain price prediction: VeChain prepares to move higher?
TL;DR Breakdown VET retests 0.618 Fib retracement level. Closest major resistance at $0.22. Closest support at $0.16. Today’s VeChain price prediction is bullish as the market continues setting higher lows over the past days in preparation for a push to the upside next week. The overall market trades in the red today as Bitcoin has […]
- VET retests 0.618 Fib retracement level.
- Closest major resistance at $0.22.
- Closest support at $0.16.
Today’s VeChain price prediction is bullish as the market continues setting higher lows over the past days in preparation for a push to the upside next week.
The overall market trades in the red today as Bitcoin has lost almost 2 percent, while Ethereum trades with a 5 percent loss. Solana (SOL) is one of the best performers as it trades with a gain of 15 percent. Alternatively, Polkadot (DOT) is among the worst performers, with a loss of almost 9 percent over the last 24 hours.
VET/USD opened at $0.172 today after a bearish push yesterday. Over the past hours, VET/USD retested the local high at $0.19, from which the market moved lower once again and currently looks to set another higher low.
VeChain price movement in the last 24 hours
The VET/USD price moved in a range of $0.1701 – $0.1925, indicating a moderate amount of volatility. 24 hour trading volume has increased by 9.5 percent, totaling $1.7 billion. The total market cap trades around $15.5 billion, resulting in a market rank of 17th.
VET/USD 4-hour chart – VET consolidates in an increasingly tighter range over the past days
On the 4-hour chart, we can see bulls picking up any further selling pressure around the $0.175 mark, indicating that another slightly higher low will be set.
Overall the market continues retracing from the $0.25 swing high set on the 7th of May. A total loss of 35 percent was seen over several days, indicating that further selling pressure is likely exhausted.
Currently, the VeChain price action builds a base from which to move higher over the next week. Both a higher low and a lower high were established over the past 24 hours, indicating an increasingly tighter range. Therefore, once VET/USD breaks above the $0.19-$0.195 mark, we expect the market to rapidly move forwards to the next major resistance target around $0.215 – $0.22. From there, bulls will likely pick up momentum and push the market towards the current all-time high resistance around $0.27-$0.28.
Alternatively, Vechain cannot move any higher and breaks below the current local swing lows around $0.17, we should see another push lower over the next 24 hours. In this scenario, VET/USD will likely continue moving lower next week towards the next major support area around $0.12-$0.13.
VeChain Price Prediction: Conclusion
VeChain price prediction is bullish as the market continues to consolidate in an increasingly tighter range after a sharp drop earlier this week. Therefore, we expect VET/USD to push higher early next week to regain some of the loss.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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