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How to Buy Bitcoin with Credit Card in 2020

Bitcoin is widely recommended as an investment. We will look at how to buy Bitcoin with a credit card in 2020, SEPA bank transfer or Skrill.

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Clever idea and what many popular cryptocurrency educators say is that you should start investing in bitcoin every month, it should be like adding to your savings account. Eventually, your strategy would be to unlock that savings account and spend these digital assets. For example, 30% of saving to unlock in 20 years, 40% more in 30 years, and then leaving at least 30% to your kids. That strategy would make you and your family better off.

Obviously, the high growth of Bitcoin may not happen. But what if the amount you would be putting away every month is as small as $20 or $50 of fiat currency, would you struggle? For some people, putting aside even $1000 every month won’t make a huge difference. So, it is generally up to every individual to decide on the amount that he or she would be happy to invest in a bright future. Potential gain can be so high that the risk is probably worth it. However, it depends on many factors and may not be that easy:

  • Do you really need to understand what bitcoin is?
  • You have to understand how it all technically works.

In this article, we’ll look at what is bitcoin and what you should know to get more advanced. And then we’ll look at more practical issues of bitcoin: how to buy one and how to do it in a clever way.

Should You Invest In Bitcoin In 2020?

Opinions of crypto pioneers on whether you should invest in bitcoin right now that we’ve asked at the Baltic Honeybadger 2019 vary. Most bitcoin users simply say yes, but some answers were not that simple.

Jimmy Song (author of “The Little Bitcoin Book” commented on the question if you should consider investing in Bitcoin – “It depends if you really understand it and you’re willing to hold it for the long term, then absolutely. There is a fixed supply and increasing demand, it is a hedge against central banking cartels and things of that nature, it is very good for the long term investment, but for a large number of people it is a speculative asset, its gamble, online poker, something like that, in which case I say – No, in 6 months you probably going to sell it when it doubles”.

Should I Buy Bitcoin Now?

Most people who haven’t bought bitcoin earlier ask “Isn’t it too late? The price of bitcoin is high at this moment.”

If you have previously bought a bitcoin or read a book/article about it, you probably already own a bitcoin wallet. In this case, buying a bitcoin with a Coinbase is not the best option for you as it is more expensive than with other services.

In order to buy bitcoin to an online wallet, you can turn to an exchanger service – Wunderbit. Once the purchase is completed, the funds are sent to your bitcoin wallet. Further, in this article, you can find details on how to purchase a bitcoin in our step-by-step guides.

If you plan to start cryptocurrency trading, then buying crypto with the smallest commission should be your first step to showing profits on trading activity.

What Is The Fastest Way To Buy Bitcoin?

There are plenty of options to buy bitcoin these days. Some of them are cheaper, some are more expensive, some are more/less trusted, safe, etc. However, sometimes, you may need a bitcoin fast. For example, to pay for some online services like hosting or VPN. There are a number of “it depends” if we look into details, but we’ll try to keep it short.

In case you do not have an account at a cryptocurrency exchange yet, the fastest way to buy bitcoin is to use a brokerage service like Wunderbit and to buy BTC with a credit card.

Buying a bitcoin with credit/debit card will take only 10 minutes, and you’ll receive the bitcoin in the next 20 minutes. This makes this option the fastest.

What Is The Cheapest Way To Buy Bitcoin In 2020?

To buy Bitcoin with the lowest fees you have to compare not only cryptocurrency exchanges but also dive into the payment methods’ fees. For example, at trading platform Wunderbit if you buy a bitcoins with a credit card it’ll cost you about 6% on top of the exchange rate. The fee includes 5% of payment processor and 1% of Wunderbit. 

However, if you buy a bitcoin with SEPA bank account transfer, then the cost will be only 1% – a fee of Wunderbit. This is probably the best offer to buy bitcoin on the market.

Apart from the payment method commission, you should bear in mind that some exchanges may include their commission in the exchange rate, thus to lower visible fee and to enhance their marketing offers.

To summarise, when buying a bitcoin you must be careful and look at not only exchange fees but also at the exchange rate and compare it to the most popular and trusted exchanges like Bitstamp or Kraken. The quickest way to compare which exchange offers better conditions is to compare the final amount of cryptocurrency that you’re going to get.

How To Choose The Best Bitcoin Exchange?

There are a number of popular cryptocurrency exchanges on the market, some of them allow you to store crypto, some do not. When it comes to buying Bitcoin you always want to make sure that the exchange rate will be the best on the market. However, as we looked at this issue in the section above, it is not that simple. 

So we prepared a checklist for you to buy the Bitcoin at the best exchange rate and with the lowest fees and get the maximum amount worth of bitcoin.

Checklist: what to prepare to buy bitcoins online?

Prerequisite: What you need to have?
1. Find a trusted exchange, ask for friends for reviews, look for exchange aggregators
2. Prepare personal documents (National ID, Passport or Driver’s License)
3. Determine how you want to pay, choose the appropriate payment option
4. Get the cryptocurrency wallet and prepare the address of the cryptocurrency you want to buy (check out our review of the best online wallet, mobile wallet and hardware crypto wallets)

Notes on what to look for when choosing an exchange?
1. Exchange rate
2. Exchange commission of the exchange/broker
3. Commissions of the service partners, for example, for a payment card processing, it may be hidden

Notes
1. The fastest way to buy bitcoin or other crypto is by using a payment card, it is not the cheapest way, but a proven and fastest for sure. For example, at Changelly the commission is 5% of the broker + 5% of the card processing provider. Exactly the same service can be obtained at Wunderbit, where the commission is 1% + 5%, being 4% cheaper.

2. The cheapest way to buy bitcoin is by using a wire transfer (bank transfer). It is clear because in this case there is no intermediary in the form of a payment service processor that allows accepting credit/debit cards or electronic money, only the broker’s commission remains.

3. Buying bitcoin is still an investment for many, a good idea is to purchase bitcoin worth at least $50 or $100 every month and accumulate it. Bitcoin’s macroeconomic model is built to make it more valuable over time.

Sign up now or become a partner, spread the word about Wunderbit and get paid for each successful transaction!

How To Buy Bitcoin Without Verification (buying bitcoin anonymously)?

Buying Bitcoin with a credit card without verification is not possible. At least none of the regulated exchanges will allow it. However, some services allow you to buy a prepaid voucher that can be turned into bitcoin. Such a method allows merchants to skip identity verification. However, the amount of cryptocurrency that can be bought is insignificant in most cases.

What Bitcoin Wallet Should You Use?

There is no perfect solution right now on the market that everyone would agree to be the one and only crypto wallet. You can find more about most widely known, most secure and most trusted bitcoin wallets on the market in our review of best bitcoin wallets.

However, the best wallet may not necessarily be the most used. So we made a summary from Bitrefill’s report which was presented at Baltic Honeybadger.

How To Buy Bitcoin With Credit or Debit Card Instantly At Wunderbit?

Time: 10 minutes

At Wunderbit you can buy Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH) Ripple (XRP), Binance Coin (BNB) and XLM (Stellar) with your credit or debit card instantly. You’ll receive cryptocurrency to your crypto wallet in 10 minutes in usual circumstances. Registration is not mandatory, but you will need to verify your phone number, your email and submit your ID card.

User can choose one of the 17 fiat currencies, full list of supported fiat currencies include:

AUD – Australian Dollar
CAD – Canadian Dollar
CHF – Swiss Franc
CZK – Czech Koruna
DKK – Danish Krone
GBP – Pound sterling
HUF – Hungarian Forint 
ILS – Israeli New Shekel
JPY – Japanese Yen
KRW – South Korean won
NOK – Norwegian Krone 
NZD – New Zealand Dollar 
PLN – Poland złoty
RUB – Russian Ruble 
SEK – Swedish Krona
TRY – Turkish lira
ZAR – South African Rand

Following guide will explain how to buy crypto with a payment card Visa or MasterCard at Wunderbit. First purchase with a credit card at Wunderbit may take up to 10 minutes due to contact details verification. Further purchases will require even less time.

Here’s a shortlist of what you’ll be required to make a first time purchase of cryptocurrency with credit card:

  • Address of the chosen cryptocurrency that you’re going to buy: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH) Ripple (XRP), Binance Coin (BNB), Tether (USDT) and XLM (Stellar);
  • Credit or debit card issued by Visa or MasterCard;
  • Image scans of your personal ID card (both sides), driver’s license (both sides) or Passport
  • Email access to verify it;
  • Mobile phone to verify the mobile phone number.

Hint: using a debit card may be a better idea than using a credit card, such as banks are more likely to approve such transactions.

Note, some banks don’t allow their clients to buy cryptocurrencies.

Step-by-step guide on how to buy a cryptocurrency with credit card

Step 1.

Go to wunderbit.co and choose the following things: 
1) select the cryptocurrency you would like to buy
2) enter the amount of the purchase (Euro or US dollars)
3) enter your cryptocurrency wallet address
4) click Continue

wunderbit exchange

Step 2.

The order summary is available at the top of the window to check if the amounts you entered are correct.
Enter your payment card details, billing information and personal details. Make sure your billing address matches the details at your payment card issuer. 

In the section Personal details, you should enter your phone number and email address, which must be verified. It means that an email with a confirmation link will be sent to your email and a special code will be sent to your phone. Once both confirmed you’ll be able to proceed.

Note, it is important to type your email and phone number accurately, as failing to verify will not allow you to proceed.

payment checkout wunderbit

Note, your payment card will not be charged at this point. However, it’ll be checked if the balance is sufficient. Once the balance is successfully confirmed you’ll be asked to verify your identity.

Step 3.

At this point, you have to verify your phone number and email address. You’ll need to do it just once – if you have plans to make more purchases in the future, you won’t have to verify it again.

Once confirmed click Continue.

Buy bitcoins with card

Step 4.

Further, you need to get verified by following a KYC procedure.

  • Select the type of document you wish to upload (national ID, Passport or driver’s licence)
  • Upload the scan of the document you selected for verification

In some cases, you may be required to provide:

  • 3DS –  a code that your card issuer may send you to verify the transaction
  • Selfie – upload a selfie when holding your payment card. You’ll see an instruction if it’ll be required.

easy verification to buy bitcoin

Step 5.

You’ll see a message saying that your payment request is being processed. In a minute you’ll receive an email stating if your payment was approved.

crypto credit card buy

If all went well, the cryptocurrency you purchased will be in your wallet in approximately 20 minutes, depending on the blockchain. On very rare occasions, some payments may take up to 24 hours to process.

Payment card processing is done by Wunderbit’s partner – Simplex, the leading service in payments.

How To Get Verified At Wunderbit?

Time: 8 minutes

If you want to use SEPA transfers or Skrill or sell your bitcoin, you need to get verified. Also registered users get extra benefits each month, like winning a free crypto merch.

If you don’t have a verified Wunderbit account yet, here is a short guide on how to get verified at Wunderbit.

What you will need to get verified?

Level 1:

  1. Image scans of your personal ID card (both sides), driver’s license (both sides) or Passport
  2. Selfie with ID/Passport and current date written on paper
  3. Email access to verify it
  4. Mobile phone to verify the mobile phone number

Level 2:

  1. Bank statement
  2. Selfie with a bank statement and current date written on paper

If you don’t have a verified account yet, just follow the steps below. Registration and verification will only take a few minutes of your time!

A step-by-step guide to getting verified at Wunderbit

1. Create an account. Registering a Wunderbit account only takes a few seconds. All you need to do is to provide an email address and create a password. Sign up now.
2. Confirm your email address. Click the link in the email you receive from us to confirm your email.
3. Verify your account. Verifying your identity helps ensure you’re the rightful owner of your account. This aids us in protecting you against fraud and credit card theft. The verification process will only take a couple of minutes of your time.

  • Log in and go to your Profile.
  • Fill out the Personal details form.
  • Scroll down to the Personal identity document section. Use the drop-down menu to choose the type of personal identity document you wish to provide. Below the menu, you’ll see three boxes:
    • In the first box, click Choose File and upload a scan/photo of your document. The document should be opened on the page containing your information and photographs.
    • In the second box, click Choose File and upload a scan/photo of the backside of your document.
    • In the third box, click Choose File and upload a photo of yourself holding the document.
  • Click Save.

How To Buy Bitcoin With SEPA Bank Transfer At Wunderbit?

Time: 3 minutes
Commission: 1%

Bank transfer over SEPA is the cheapest way to buy Bitcoin at Wunderbit and across most other cryptocurrency exchanges. The only disadvantage of that method is that you must have a bank account in Europe and the wait time can be up to two days. Further, we have prepared a step-by-step guide on how to buy bitcoin with SEPA transfer.

Following guide considers that you have already created an account at Wunderbit and verified it. Unless you have not, please see the section “How to get verified at Wunderbit” of this article.

A step-by-step guide to buying bitcoin with SEPA bank transfer

  1. Log into your cabinet at Wunderbit
  2. Navigate to Exchange tab of the cabinet
  3. Enter the amount of euro you would like to spend to buy Bitcoin
  4. Enter the Bitcoin address where you would like to receive cryptocurrency in column 3. Overview
  5. Click on the captcha and agree to the terms to proceed wunderbit cabinet
  6. Click the blue Exchange button
  7. If all went well you’ll get a pop-up window with details, where you should make a SEPA bank account transfer bank payment
  8.  At this point, you should have received an email with the order summary
  9. Once your order will be completed you’ll be notified by email

How To Buy Bitcoin With Skrill At Wunderbit?

Time: 9 minutes
Commission: 5.95%

Skrill is a very popular online payment system. If you have a Skrill account it is very fast and convenient for you to buy Bitcoin with it. Further, we prepared a short step-by-step guide for your convenience.

Step-by-step guide to buy bitcoin with SEPA transfer

  1. Log into your cabinet at Wunderbit
  2. Navigate to Exchange tab of the cabinet
  3. Enter the amount of euro you would like to spend to buy Bitcoin
  4. Enter the Bitcoin address where you would like to receive cryptocurrency in column 3. Overview
  5. Click on captcha and agree to the terms to proceed
  6. You’ll now be forwarded to the Skrill page where you need to log in with your Skrill account and verify your intention to buy bitcoin.

How To Sell Bitcoin With Sepa Transfer At Wunderbit?

Time: 6 minutes
Commission: 1%

Selling your Bitcoin at Wunderbit is easy:

  • Sell Bitcoin at the current exchange rate
  • Get paid as soon as Wunderbit receives your Bitcoin
  • Receive your payment in euro via bank transfer over SEPA

Note, you must obtain verification level 2 in order to be able to sell the Bitcoin. 

Remember, as an alternative, you can buy with bitcoin various goods, thus it would be similar to selling your bitcoin and then buying something with fiat.

What you will need to sell bitcoin?

Proof of previous purchase/trading activity/merchant activity/mining. In other words, you have to prove the fact of how you obtained the bitcoin.

Many customers don’t care about the exchange when they buy bitcoin, but when there is a need to sell one, it appears that not many allow selling bitcoin. Those who do are very accurate, such as to avoid dirty bitcoin.

This is why we recommend Wunderbit – a government-licensed provider of exchange services between virtual and fiat currencies (license number FVR000332). Enjoy safety and security by working with an accredited, regulation-compliant financial institution when entering or exiting the cryptocurrency market!

A step-by-step guide to sell bitcoin

Once you got verified, sign in and go to the Exchange tab of the cabinet.

1. Choose Bitcoin in the You Send tab and enter the amount of Bitcoin you wish to sell. Alternatively, you can enter the amount of EUR you wish to receive in the You Receive box. Wunderbit will pay you in euro via a SEPA transfer. The minimum transaction amount is €50.
2. In the Overview box, you’ll see the current Bitcoin exchange rate. The box also contains a full breakdown of the transaction fee, incl. the bitcoin network fee for bitcoin transactions.

  • Enter the name of your bank, it’s Swift code and your bank account number.
  • Press I am not a robot.
  • Check the box below to certify that you’re over 18 years old and that you agree to our Terms of Use, AML Policy, and our Privacy Policy.

3. Receive the money. Wunderbit will transfer you the funds as soon as we receive your Bitcoin. The time it’ll take for your bank to process Wunderbit’s payment will vary depending on your bank and country of residence. In the vast majority of cases, you should receive the funds within a couple of days.

Source: https://wunderbit.co/en/blog/how-to-buy-bitcoin-in-2020

Blockchain

China aims to let foreigners use digital yuan at Winter Olympics in 2022

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China’s central bank is looking to enable foreign athletes and visitors to use the country’s digital currency during the Beijing Winter Olympics in 2022, according to a top central bank official.

Li Bo, deputy governor of the People’s Bank of China, said that the upcoming Winter Olympics could potentially become the first test of China’s central bank digital currency, or CBDC, by foreign users.

“For the upcoming Beijing Winter Olympics, we were trying to make e-CNY available not only to domestic users, but also to international athletes and like visitors,” Li said Sunday at a CNBC panel at the Boao Forum for Asia. The bank previously announced its plans on testing the digital yuan at the event in August 2020.

The official said that the PBoC doesn’t intend to replace the United States dollar’s dominance as the world’s reserve currency. Li reportedly noted that the central bank is focused on the domestic use of the digital yuan.

“For the internationalization of renminbi, we have said many times that it’s a natural process and our goal is not to replace the U.S. dollar or any other international currency. I think our goal is to allow the market to choose and to facilitate international trade and investment,” he stated.

Despite the PBoC’s focus on the domestic digital yuan, China’s central bank is still exploring cross-border CBDC use. “At the same time, working with our international partners. Hopefully, in the long term, we have a cross border solution as well,” Li said. At the forum, Li also said that China’s central bank now views the major cryptocurrency Bitcoin (BTC) as an “investment alternative.”

After launching its first domestic digital yuan tests in 2020, China started cross-border CBDC pilots in collaboration with central banks in Hong Kong, Thailand and the United Arab Emirates in February 2021. On April 1, PBoC director of research bureau Wang Xin announced that China’s central bank completed the first cross-border pilots of the digital yuan with the Hong Kong Monetary Authority.

Chinese authorities have stressed multiple times that the government is not seeking to replace existing fiat currencies including the U.S. dollar with the digital yuan. “We are not like Libra and we don’t have an ambition to replace existing currencies,” Zhou Xiaochuan, the president of the Chinese Finance Association and former PBoC governor, said in late 2020.

As previously reported by Cointelegraph, the U.S. has taken a careful approach toward CBDCs due to the U.S. dollar’s status of the world’s reserve currency and other CBDC-related challenges like privacy. The European Central Bank is also still deciding whether Europe needs a digital euro, with ECB President Christine Lagarde expecting the digital currency to be adopted in four years, at the earliest.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/china-aims-to-let-foreigners-use-digital-yuan-at-winter-olympics-in-2022

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Blockchain

UK government establishes central bank digital currency task force

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Her Majesty’s Treasury and the Bank of England have begun preliminary central bank digital currency studies that could result in the creation of a national digital currency.

In a document published by HM Treasury, the exchequer announced the creation of a CBDC taskforce in collaboration with the U.K.’s central bank.

Jon Cunliffe, deputy governor of the Bank of England and Katharine Braddick, director general of financial services at HM Treasury will co-chair the task force.

According to the terms of reference document, the task force will synergize the efforts of all relevant statutory bodies in the U.K. regarding CBDC development.

As part of its duties, the task force will explore preliminary issues associated with the design, implementation, and operation of a CBDC in the U.K. The task force will also interface with stakeholders across academia, fintech and other relevant industries to identify the technological hurdles involved in creating a sovereign digital currency.

The joint HM Treasury and BoE task force will also monitor CBDC-related developments on the international scene especially as other nations are actively exploring their own central bank digital currency projects.

According to a BoE press release issued on Monday, the central bank will also run its own internal CBDC unit headed by Jon Cunliffe.

The establishment of the task force is yet another indication of the U.K. government’s focus on digital currencies and fintech in the aftermath of Brexit. In November 2020, Rishi Sunak, chancellor of the Exchequer said that Brexit offered an opportunity for the U.K. to revamp its financial services sector.

Since Brexit, Sunak has overseen a significant policy shift towards harnessing novel fintech innovations like CBDC and stablecoins. As previously reported by Cointelegraph, U.K. financial services minister John Glen has identified stablecoin regulations as the major focus of the government in the area of cryptocurrency regulations.

According to a report by Reuters, the U.K.’s financial market focus is also extending towards distributed ledger technology firms. Speaking during a financial industry conference on Monday, Sunak announced that the government plans to establish a fintech sandbox for blockchain startups.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/uk-government-establishes-central-bank-digital-currency-task-force

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Blockchain

China ‘endorses’ BTC investment: 5 things to watch in Bitcoin this week

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Bitcoin (BTC) is beginning a new week grinding back to $60,000 as the shock of a weekend price crash settles.

After dropping to as low as $52,000 in a snap sell-off event, Bitcoin has spent the past two days slowly recovering its losses. What’s next?

Cointelegraph presents five factors to consider as a new trading week gets underway and cryptocurrency holders across the board nurse their wounds.

Stocks primed for “up only” short term 

The macro picture is fairly stable in Asia and Europe, with United States markets yet to open.

A mixed picture greeted investors at the open, but volatility has been broadly absent, with only oil showing signs of more pronounced weakness.

As such, little impact on Bitcoin is to be expected from equities moves, these forecast to continue building on record highs in the coming weeks.

Russel Chesler, head of investments and capital markets at the Australian branch of crypto-friendly investment manager VanEck, captured the mood in a note quoted by Bloomberg.

“Our current view is that with short-term interest rates set to remain low for the medium term and our expectation that earnings will continue to increase, it is unlikely that the increase in long-term interest rates will trigger an equity market fall,” he wrote.

Coronavirus concerns still linger despite stocks’ relentless surge higher, with more reported official cases last week than ever before worldwide.

Economic responses continue to vary, with a patchwork of openings and closings characterizing countries’ latest attempts to control the outbreak.

Bitcoin recovers from $52,000 crash

In Bitcoin circles, the main talking point naturally remains the weekend’s events, which saw a sudden cascade of selling send BTC/USD down by $7,000 in a matter of minutes.

Bouncing at just above $52,000, the crash echoed several similar events this year, and Bitcoin managed to regain around 50% of its lost ground within hours.

BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview

Responses, however, are split between those who consider the volatility “business as usual” and more conservative voices calling time on the latest bull run.

As Cointelegraph reported, suspicions are focusing on a Chinese power blackout hitting hash rate, as well as rumored legal action by U.S. regulators against unnamed financial institutions related to money laundering.

In his own breakdown of what happened, popular statistician Willy Woo highlighted both China and skittish moves by futures investors as contributing to the losses.

“We just saw the single largest 1-day drop in mining hash rate since Nov 2017. The hash rate on the network essentially halved, causing mayhem in BTC price as it crashed,” he told Twitter followers.

In a sign that the future could see fresh sustained upside, Woo reiterated the “reset” in an on-chain metric, the spent transaction output ratio (SOPR), showing that long-term investors will likely soon stop selling altogether.

“The on-chain SOPR metric near a full reset. A classic buy the dip signal,” he added.

“In simple terms, profit taking by longer term investors is completing, very little sell power left unless investors want to sell at a loss from their entry price. Unlikely in a bull market.”

Fundamentals point higher

It’s not just SOPR — a whole range of Bitcoin network indicators and fundamentals are buoying bulls’ cause, even as BTC/USD remains below even February’s high of $58,300.

For Woo and others, particularly important are the transfer of funds to investors who have traditionally hodled, not sold — another classic trait of Bitcoin’s rise in recent months.

Bitcoin liquid supply change chart showing transfers to strong hands. Source: Willy Woo/ Twitter

“Serious strong-handed holders are buying this dip. In the last 24 hours, over 200,000 Bitcoin became illiquid, a 3-year record,” fellow analyst William Clemente added Sunday.

“This illiquid supply increase is not only just dip buyers with no history of selling, but partially accumulation from 5-6 months ago of which those wallets have just crossed the ‘illiquid’ threshold for this metric.”

Lastly, around 13.5% of the total available Bitcoin supply has been active above $53,000, something which Woo says is confirming its status as a trillion-dollar asset. At around $53,800, Bitcoin’s market cap becomes a solid $1 trillion.

“This dip happened while unprecedented numbers of new users are arriving onto the network per day. There’s been a retail influx in the last 2-3 weeks,” Woo additionally noted, with total wallet numbers nearing 10 million.

Difficulty takes care of miner woes

A closer look at hash rate, which at one point dipped by almost half, shows that a recovery in line with price is underway.

According to rough estimates from on-chain monitoring resource Blockchain, Bitcoin network hash rate is already back above 150 exahashes per second (EH/s), having broken through the 200 EH/s barrier for the first time in history last week.

Bitcoin hash rate chart. Source: Blockchain

Miners leaving the network due to power problems leads to Bitcoin’s network difficulty decreasing to incentivize more to come online.

Further confirmation that the weekend’s issue was firmly temporary comes from difficulty forecasts — in two weeks’ time, when it next adjusts, difficulty will only drop by around 4%, a modest move which could yet be cancelled out altogether as miners return.

This balance between hash rate and difficulty is arguably the most important aspect of Bitcoin, one which allows it to govern itself and preserve security and functionality regardless of sudden events impacting network participants.

Chinese central bank praises Bitcoin and stablecoins

In another unanticipated event which is arguably yet to be fully appreciated by the market, China has given an unprecedented stamp of approval to cryptocurrency as an “investment alternative.”

Speaking at a conference organized by CNBC, Li Bo, deputy governor of China’s central bank, the People’s Bank of China (PBoC), broke ranks to validate both Bitcoin and stablecoins.

“We regard Bitcoin and stablecoin as crypto assets… These are investment alternatives,” he said.

The comments are surprising as despite being a center for Bitcoin mining activity, China has had a blanket ban in place on trading and transacting in cryptocurrencies since September 2017.

“Every country that bans Bitcoin eventually reverses that ban. You simply cannot be competitive in the 21st century economy without it,” Charles Edwards, founder of investment firm Capriole, responded.

“China is playing 4D chess. The last 3 days have made very clear they still dominate global mining. Slowly, slowly then all at once.”

The market barely reacted to this high-level affirmation of Bitcoin’s long-term potential. At the time of writing, Bitcoin is still hovering at $57,000, as yet failing to see an attack of familiar resistance levels.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/china-endorses-btc-investment-5-things-to-watch-in-bitcoin-this-week

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