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Here’s why Bitcoin will become ‘more valuable than gold’

Bitcoin has most certainly garnered mainstream attention and this time it is in a good way. More than that, BTC’s adoption has soared through the roof, especially due to the largescale entry of institutional funds. BTC enthusiasts have always used “Bitcoin is better than gold” as a sales pitch but now, institutions have too. Sharing […]

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Bitcoin has most certainly garnered mainstream attention and this time it is in a good way. More than that, BTC’s adoption has soared through the roof, especially due to the largescale entry of institutional funds. BTC enthusiasts have always used “Bitcoin is better than gold” as a sales pitch but now, institutions have too. Sharing the same thought process is a serial entrepreneur and ex Coinbase CTO, Balaji Srinivasan who stated,

“Bitcoin is already more valuable than PayPal and will eventually be more valuable than gold.”

Srinivasan used the above as a context to explain his thesis that, “the crypto version of any product ends up being far more valuable than the original.” So far, Bitcoin has proved just that. In fact, it has surpassed not just PayPal but the likes of JP Morgan & Chase, Visa, Mastercard, Bank of America, etc.

While the reasons for this may be plenty, Srinivasan boils it down to three main reasons: better developer experience, better reach for a true protocol, and far more token hodlers than traditional shareholders.

Above and beyond that, the traditional financial system was long overdue for a major makeover. Bitcoin was launched at the right time and is yielding the fruits which is exactly why the crypto-ecosystem is seeing the initial flood of institutional investors.

As Bitcoin hits new highs, perhaps, a psychological level that will shake the beliefs of both retail and institutions to their core is when this thesis will be realized. Perhaps, that number is $100,000 or $200,000, nobody knows. But one thing is sure, by then, like bitcoin, DeFi will have gained the mainstage, for the same reasons why bitcoin is in the spotlight.

“If you can make decentralized gold, wires, lending, borrowing, interest, derivatives, cap tables, or the like work…why would you ever use the corporate version? It’d be like using Oracle over Postgres. You’d always pick the open version if you can.”

Although DeFi was compared to the ICO bubble, it isn’t. In fact, DeFi isn’t a phase like ICO, it has the potential to disrupt and provide the traditional upgrade which it so desperately needs. Moreover, the DeFi phase came to an end due to two reasons, the first being that the Ethereum blockchain couldn’t handle the demand and it clogged and the second reason is that Bitcoin stole DeFi’s spotlight right when it was at its peak.

As mentioned by Srinivasan, DeFi has the potential to systematically replace every sector of the financial system because it can make lives easier, similar to what the Internet did to pen and paper.

Source: https://ambcrypto.com/heres-why-bitcoin-will-become-more-valuable-than-gold/

Blockchain

Bitfury’s US Bitcoin mining subsidiary to go public via $2B SPAC merger

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Cipher Mining Technologies Inc. a subsidiary of blockchain development firm Bitfury has inked a $2 billion merger deal with Nasdaq-listed Good Works Acquisition Corp — a special purpose acquisition company, or SPAC. Both companies have entered into a business combination agreement.

According to a press release issued on Friday the merger will see Bitfury’s U.S. Bitcoin (BTC) mining enterprise become a publicly-listed company under the banner Cipher Mining Inc.

In addition to the combined $2 billion valuation for Cipher, investors like Morgan Stanley-backed Counterpoint Group and Fidelity Management and Research company will also lead a $425 million funding round.

This additional cash influx will proceed via a private investment in public equity, or PIPE, funding round. Bitfury will also provide a $50 million investment-in-kind to add to the $170 million left over from the October 2020 Good Works initial public offering, thus setting the combined company’s gross cash holdings at $595 million.

Commenting on the merger, Cipher Mining CEO Tyler Page remarked that the deal was a significant step in the emergence of properly capitalized Bitcoin mining enterprises, adding:

“With this transaction, we will be able to combine the formidable skill sets and technologies developed by Bitfury Group over the past 10 years with what we believe will be a leadership position on the global cost curve, and thereby create a true leader in the Bitcoin mining industry.”

With the merger expected to close in Q2 2021, Cipher is looking to achieve a 745 megawatts mining capacity by end of 2025. The company says it hopes to cross the 445 MW milestone between the end of 2021 and Q2 2022.

Cipher is the latest Bitcoin mining establishment to pursue a public listing albeit via a merger with a SPAC entity. As previously reported by Cointelegraph, Australian green energy Bitcoin mining outfit Iris Energy is set for a $39 million IPO in the summer.

With designs towards 745 MW in mining capacity, Cipher is also the latest example of the expanding Bitcoin mining outlay in North America. While China still dominates the BTC hash rate distribution, firms in the U.S. and Canada are reportedly increasing their inventory in the quest to dilute China’s control of the Bitcoin mining arena.

Meanwhile, Chinese miners are coming under significant regulatory pressure from municipal authorities. Earlier in March, reports emerged of crypto miners planning to exit Inner Mongolia amid energy consumption concerns.

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Source: https://cointelegraph.com/news/bitfury-s-us-bitcoin-mining-subsidiary-to-go-public-via-2b-spac-merger

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Yearn Finance, Cover Protocol announce termination of merger process

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Yearn Finance and Cover Protocol have parted ways, according to an announcement made earlier today.

Yearn Finance announced the end of the merger process between the two, clarifying that yVault depositors who have already purchased Cover protection would be unaffected by this.

The aforementioned merger was initially announced in November 2020, with Cover intended to be the backstop coverage provider for the Yearn product suite. Developers from the two protocols had been working together since inception, with Yearn Finance at the time stating that collaboration between the two parties came naturally for both.

While many anticipated that the synergies of this merger would be beneficial to users of both protocols and the DeFi ecosystem at large, the Cover hack brought an end to most of this optimism.

The Cover Protocol was hacked on 28 December, with an infinite printing scheme contributing to the price of COVER falling significantly on the charts. Later, a “white hat” hacker named Grap.Finance claimed responsibility for the exploit and returned all the stolen funds, which amounted to over $3 million at the time.

After the incident, however, many users lost faith in Cover Protocol, with Yearn Finance speculated to be one of them. In fact, while the project did not explicitly state what the reason for the de-merger was, Yearn’s founder Andre Cronje took to Twitter to make the following statement,

“Personally, this was very sad to see. I had very high regard, trust, and faith in the Cover team. Lesson learned. Won’t trust them again.”

Source: Coingecko

Cover protocol’s native token $COVER dropped in value by over 28% in the 30 minutes that followed the announcement. At press time, $COVER was trading at $587.49.

It is also worth noting that most users in the community have backed Yearn Finance’s decision.


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Source: https://ambcrypto.com/yearn-finance-cover-protocol-announce-termination-of-merger-process

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Bitcoin Bearish Correction Pauses: Focus Remains on Dollar and Yields

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  • Bitcoin prices extended losses on Friday as the US dollar gained alongside the long-term Treasury yields.
  • Downside pressure on cryptocurrency remains amid expectations of modest job growth in the US.
  • The technical support offered by the 20-period moving average on the four-hour chart maintains Bitcoin’s medium-term bullish outlook.

Bitcoin dropped Friday, suggesting that the benchmark cryptocurrency may decline further into the week, followed by an equally depressive weekend session in the wake of the rising US dollar and a recent spike in the US Treasury yields.

Bitcoin Short-Term Targets

The spot BTC/USD exchange rate plunged 2.43 percent into the daily session. On the other hand, the pair was trading in a positive area on a week-to-date basis, up more than 4.5 percent ahead of the weekend session. The price action was choppy nonetheless, giving no clues about its direction in the coming sessions ahead.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin looks trapped between two moving averages. Source: BTCUSD on TradingView.com

Technically, Bitcoin appeared trapped inside a range defined by two of its crucial moving averages. In doing so, the cryptocurrency tested the 50-period moving average as resistance and the 200-period moving average as support.

A bounce from the 200-MA on Friday pushed BTC/USD towards 50-MA for a bullish breakout attempt. Nevertheless, higher selling pressure near the latter wave kept prices from flourishing upward. That showed traders’ resilience, which may have to do with unfavorable macroeconomic climate.

Jobs Data, Bond Yields, US Dollar

Traders limited their bids near the local BTC/USD tops as Bitcoin formed a positive correction with the US stock market against the prospect of rising US Treasury yields. Both the markets tumbled last week as a bond market sell-off raised questions about whether low-interest rates, which propelled both Bitcoin and US equities last year, can continue for any longer.

Yields, which rise as bond fall, have rallied as a response to expectations of faster US economic growth, led by a speedier vaccination program and inflation expectations.

The yield on the US 10-year Treasury was flat on Friday but surged in the previous session to 1.547 percent.

That marked the highest close for the benchmark borrowing cost since February last year. Its climb on Thursday came as Federal Reserve Jerome Powell provided no signs that the central bank would intervene to limit the ongoing sell-off in the US government debt market.

The US dollar benefited from the global market uncertainty, with its value against a basket of foreign currencies—known as the US dollar index—rising by 0.75 percent on Thursday. The index surged 0.31 percent on Friday.

US Dollar Index, US dollar, DXY, bitcoin
US dollar index rallies higher on global market uncertainty. Source: DXY on TradingView.com

More tailwinds for the US dollar growth came from early estimations that the US labor market would log recovery in February.

“As we reopen the economy, inch-by-inch, that will unleash consumer spending and drive job growth, especially industries that have been most severely affected by the pandemic,” said Nela Richardson, a Ph.D. economist at human-resources software firm Automatic Data Processing Inc.

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Source: https://www.newsbtc.com/news/bitcoin/bitcoin-bearish-correction-pauses-focus-remains-on-dollar-and-yields/

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