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Got coronavirus stimulus? Buying Bitcoin has already offered 12% returns

The $600 stimulus check invested in BTC last week would have made you $75 better off already, data shows.

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Americans who received their second coronavirus stimulus checks on Dec. 29 have already gained 12% — if they invested it in Bitcoin (BTC).

As the United States government rolls out another round of “free” money to eligible residents, attention is fixed on how many will choose to invest their $600 in cryptocurrencies.

April stimulus recipients now have $5,600

The handouts began last week and are expected to be completed by Jan. 15. According to a dedicated monitoring resource, those who received the money on the first day and who immediately swapped their U.S. dollars for BTC are already up around $75.

Bitcoin, Ether performance in 2021. Source: Digital Assets Data

Bitcoin and Ether (ETH), the largest altcoin by market capitalization, have outstripped practically all competition in the first week of 2021 when it comes to returns on investment.

As mainstream media overflows with tales of how stimulus recipients plan to invest in stocks and consumer goods, notionally with the goal of “stimulating the economy,” those who bought Bitcoin with the previous cash gift in April 2020 are now sitting on $5,600.

At the time, the stimulus check was worth $1,200 — twice the amount of the second round — meaning Bitcoin has supplied gains of 370% if you “hodled” until now. 

The figures underscore the curious way in which the average taxpayer can benefit from the bizarre financial environment that characterizes 2020 and 2021. By simply buying and holding Bitcoin, anyone can outpace even the most seasoned equities trader.

“Maybe we should be sending out the stimulus money in Bitcoin. The $600 will turn to $2,000 in a week anyways,” fund manager Austin Rief summarized in a tongue-in-cheek tweet over the weekend.

Monthly chart shows Bitcoin is not done at $32,000

While 233% gains in a week have yet to come true, many are already confident of Bitcoin’s prospects to match or even beat last year’s performance in 2021.

The year after a block subsidy halving has historically been the cryptocurrency’s best, and under that logic, a correction will only be due in 2022.

Difference between BTC/USD price highs across halving cycles. Source: Twitter

Added to this is data showing longer-term behavior following a price top in each four-year halving cycle. With $20,000 as the previous top, history suggests that BTC/USD will not dip below that level again.

What’s more, between 2017 and 2020, the difference between Bitcoin’s two tops was 1,600%. Between the 2013 and 2017 tops, it gained 3,500%. Since May 2020, Bitcoin is up by a comparatively modest 75%.

Source: https://cointelegraph.com/news/got-coronavirus-stimulus-buying-bitcoin-has-already-offered-12-returns

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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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