Connect with us

Blockchain news

Fidelity Digital Assets Demystifies Common Misconceptions Surrounding Bitcoin

Fidelity Digital Assets, the US-based crypto arm of Fidelity, has taken it upon itself to debunk common misconceptions revolving around Bitcoin….

Published

on

Fidelity Digital Assets, the US-based crypto arm of Fidelity, has taken it upon itself to debunk common misconceptions revolving around Bitcoin.

Being a firm believer in Bitcoin as a foolproof investment as good as any, the lead research director at Fidelity, Ria Bhutoria, addressed common criticisms of the mainstream digital asset.

Popular notions of Bitcoin that have been circulating since the digital asset’s launch include critiques that it is “too volatile to be a store of value,” that it is a failed means of payment or that it is often used for illicit activities.

Bitcoin’s trade-off is volatility

Bitcoin, though it has been increasingly adopted and touted as a “safe-haven” asset amid the coronavirus pandemic, still remains a relatively new concept for many.

The fact that Bitcoin is volatile has translated to it being classified as a risky investment in many instances. Bhutoria refuted the argument. Per the lead research director of Fidelity Digital Assets, the volatility of the digital asset is merely a trade-off of holding a “rising store of value asset” that is not controlled by a centralized government. She said:

“Another way to understand bitcoin’s volatility is that it is a consequence of the asset’s perfectly inelastic supply.”

As Bitcoin’s max supply is capped at 21 million, it makes the digital asset scarce and valuable. Also, Bhutoria makes the case that the decentralized feature of Bitcoin makes it a driving point, and volatility may be one of the trade-offs. With Bitcoin, there is no centralized entity that can intervene and reduce its volatility.

In addressing Bitcoin as a failed means of payment, Bhutoria said that Bitcoin offered core properties, such as decentralization and immutability, as a trade-off. She also said:

“Bitcoin has properties that make it a viable payment tool – it is portable, fungible, and divisible.”

Bitcoin for crime – not as common as you think

Finally, though Bitcoin has often been deemed as a gateway for illicit activities, research from Chainalysis indicates that less than 1% of Bitcoin transactions are allocated towards criminal activities. As shared by Fidelity Digital Assets, US Department of Treasury executive Jennifer Fowler said:

“Although virtual currencies are used for illicit transactions, the volume is small compared to the volume of illicit activity through traditional financial services.”

Bhutoria indicated that just like cash, Bitcoin has properties that “may be valuable to good actors and bad actors.”

Diversifying your investment portfolio with Bitcoin

Fidelity Digital Assets have long been touting virtual currencies as a brand-new asset class, and in particular, Bitcoin. According to them, Bitcoin’s movement on the market is unlike any other asset such as gold or stocks, making the mainstream cryptocurrency an ideal investment. Per Fidelity’s research, investors could benefit greatly from allocating 5% of their investment portfolio into the safe-haven asset.

At the time of writing, Bitcoin has been trading at $16,007.34 on CoinMarketCap, displaying bullish behavior over the past week.

Whether 16K could be flipped into a support level remains in question, but market sentiment seems to be positive, and many market experts have affirmed that this was only the beginning of Bitcoin’s price run, as it was sure to gain more in the future.

Source: https://blockchain.news/news/fidelity-digital-assets-demystifies-common-misconceptions-surrounding-bitcoin

[ALT0]

Blockchain news

Ethereum is Expected to Undergo a 90% Daily Emission Reduction Following ETH 2.0 Upgrade

Market analyst Lark Davis believes that Ethereum 2.0 upgrade will prompt a 90% daily emission reduction from 12,800 to 1,280.

Published

on

Ethereum (ETH) was up by 9.72% in the past week to breach the psychological price of $2K during intraday trading. ETH’s price stood at $2,056 as the second-largest cryptocurrency continues to gain momentum.

Market analyst Lark Davis believes that the upgrade of Ethereum 2.0 will prompt a 90% daily emission reduction from 12,800 to 1,280. He explained:

“The other wildly important aspect of The Merger is that ETH will undergo a 90% reduction in daily emission. Basically from 12,800 a day to 1,280 a day. Yearly inflation from 4.3% down to 0.43%. This is equivalent to 3 Bitcoin halvings, and is only months away.”

Ethereum 2.0, also known as the Beacon Chain, was launched in December 2020 and was regarded as a game-changer that seeks to transit the current proof-of-work (POW) consensus mechanism to a proof-of-stake (POS) framework.

Davis also noted that Ethereum would experience “Triple Halving” as part of the ETH 2.0 upgrade, a highly significant economic event for the asset’s price in the coming years.

Ethereum whales cumulatively hold 60.52 million ETH

According to on-chain metrics provider Santiment:

“Ethereum whales that hold between 10k and 1 million ETH in their respective wallets now own a cumulative total of 60.52m coins. This is the highest amount held by this tier since in 5 weeks, and represents a 1.65million ETH accumulation in the past 6 days.”

Image

Therefore, ETH whales continue investing in this asset, which indicates high confidence levels.

Ethereum has been making headlines based on its notable strides. For instance, ETH has had an impressive return on investment (ROI) of 171% this year compared to tech stocks like Microsoft, Facebook, and Apple. Furthermore, Davis had previously noted that Ethereum was settling three times more value on-chain than Bitcoin daily.

Image source: Shutterstock

“The other wildly important aspect of The Merger is that ETH will undergo a 90% reduction in daily emission. Basically from 12,800 a day to 1,280 a day. Yearly inflation from 4.3% down to 0.43%. This is equivalent to 3 Bitcoin halvings, and is only months away.”

Source: https://blockchain.news/analysis/ethereum-is-expected-undergo-a-90-percent-daily-emission-reduction-following-eth-2.0-upgrade

ethereum-is-expected-to-undergo-a-90%-daily-emission-reduction-following-eth-2.0-upgrade

Continue Reading

Blockchain news

South Korea Authorities Seizes $47M in Crypto from Tax Evaders

South Korean authorities have made the largest crypto seizures in the country’s history. $47 million in digital currencies have been confiscated.

Published

on

Authorities in the South Korean province of Gyeonggi have conducted the largest tax seizures ever, seizing $47 million in Bitcoin (BTC) and Ethereum (ETH).


According to the coverage reported by the Financial Times, the seizure involved about 12,000 tax evaders. The authority has called the action the largest “cryptocurrency seizure for back taxes in Korean history.”

Those “tax dodgers” committed the crime by connecting their trading or investment activities on trading platforms operating in the country with their phone numbers. The process, though rigorous, had to be done manually as crypto exchanges were unable to fully provide the Know-Your-Customer (KYC) details of the defaulting taxpayers. In addition, the FT report was unclear which digital currency trading platform was involved in the investigation.

South Korea has a robust cryptocurrency trading engagement amongst its citizens, and the country has been making moves to implement accomodating regulations. One of these is the law passed by the Korean National Assembly in March 2020. This law mandates cryptocurrency exchanges to take down customer’s details through KYC and obtain licenses to operate from banks.

While big exchanges such as UpBit have been able to comply, other smaller trading platforms have had their struggles in complying, a situation that was compounded by financial institutions dissociating from crypto exchanges. Besides these, South Korea has long been mulling enforcing a 20% capital gains tax on cryptocurrencies, all of which will be made easier with compliant crypto exchanges.

South Korea is one of the more receptive countries to blockchain and cryptocurrency-related innovations. While crypto has thrived in the country in the past decade, the government is taking bold steps to develop its own Central Bank Digital Currency, the Digital Won. Despite its soft stance, however, the nation has zero-tolerance for fraud amongst crypto entities, as showcased in the ongoing raid of Bithumb exchange amidst a broad fraud investigation.

Image source: Shutterstock

Source: https://blockchain.news/news/south-korea-authorities-seizes-47m-in-crypto-from-tax-evaders

south-korea-authorities-seizes-$47m-in-crypto-from-tax-evaders

Continue Reading

Blockchain news

MicroStrategy Acquires Extra 13,005 Bitcoins, Owning Over 100,000 BTC

MicroStrategy CEO Michael Saylor confirmed the firm acquires additional 13,005 Bitcoins, by spending roughly $489 million in cash at an average price of around $37,617 per bitcoin. The company now

Published

on

Leading American business intelligence firm MicroStrategy is not relenting in its quest of purchasing more Bitcoin, acknowledged by the firm’s CEO Michael Saylor.

The MicroStrategy CEO said:

“MicroStrategy has purchased an additional 13,005 Bitcoins for ~$489 million in cash at an average price of ~$37,617 per bitcoin. As of 6/21/21 we hodl ~105,085 bitcoins acquired for ~$2.741 billion at an average price of ~$26,080 per bitcoin.”

MicroStrategy has set a precedent in the institutional investment space because its BTC holding is one of the highest.

Previously, Saylor had indicated that the firm was embracing Bitcoin for the long term.

MicroStrategy, therefore, seems to be taking advantage of the current ranging BTC market because it has spent the last two months consolidating between $30,000 and $40,000.

Bitcoin is back at the range low

Bitcoin plunged to lows of $32k amid intensified FUD (fear, uncertainty, and doubt) sentiment from China triggered by a nationwide BTC mining crackdown.

For instance, China’s third-largest bank, the Agricultural Bank of China, issued an announcement prohibiting bitcoin and other cryptocurrency transactions through Agricultural Bank’s banking system.

These restrictions imposed by Chinese banks on cryptocurrencies caused a large-scale sell-off of the Bitcoin bearish side.

Therefore, market analyst Michale van de Poppe noted that Bitcoin was back at the range low, and the leading cryptocurrency needed to hold this area to avoid a further drop to $24k.

Image

On-chain analyst Ali Martinez echoed these sentiments. He stated:

“On-chain data from IntoTheBlock shows that the most significant support zone underneath Bitcoin sits between $31.7K and $33.5K where roughly 573K addresses bought 487K BTC. Losing this area as support could push BTC to the next critical demand barrier at $23.4K.”

Image

With retail momentum on the Bitcoin network slowing down amid sinking social sentiment, it remains to be seen whether renewed institutional interest from firms like MicroStrategy will give BTC the much-needed upward momentum.

Image source: Shutterstock

Previously, Saylor had indicated that the firm was embracing Bitcoin for the long term.

Source: https://blockchain.news/news/microstrategy-acquires-extra-13-005-bitcoins-owning-100000-btc

microstrategy-acquires-extra-13,005-bitcoins,-owning-over-100,000-btc

Continue Reading

Title

Bioengineer14 hours ago

Reduced microbial stability linked to soil carbon loss in active layer under alpine permafrost degra

Credit: NIEER Chinese researchers have recently discovered links between reduction in microbial stability and soil carbon loss in the active

Reuters2 days ago

Chipmaker TSMC says too early to say on Germany expansion

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (2330.TW) said on Monday that it was too early to say whether it will...

Bioengineer3 days ago

SNMMI Image of the Year: PET imaging measures cognitive impairment in COVID-19 patients

Credit: G Blazhenets et al., Department of Nuclear Medicine, Medical Center - University of Freiburg, Faculty of Medicine, University of

Techcrunch4 days ago

The DL on CockroachDB – TechCrunch

As college students at Berkeley, Spencer Kimball and Peter Mattis created a successful open-source graphics program, GIMP, which got the...

CNBC4 days ago

International: Top News And Analysis

CNBC International is the world leader for news on business, technology, China, trade, oil prices, the Middle East and markets.

Blockchain news5 days ago

Ethereum is Expected to Undergo a 90% Daily Emission Reduction Following ETH 2.0 Upgrade

Market analyst Lark Davis believes that Ethereum 2.0 upgrade will prompt a 90% daily emission reduction from 12,800 to 1,280.

Reuters6 days ago

EXCLUSIVE India watchdog accuses Amazon of concealing facts in deal for Future Group unit

India's antitrust regulator has accused Amazon.com Inc (AMZN.O) of concealing facts and making false submissions when it sought approval for...

Bioengineer1 week ago

Scientists demonstrate promising new approach for treating cystic fibrosis

Scientists led by UNC School of Medicine researchers Silvia Kreda, Ph.D., and Rudolph Juliano, Ph.D., created an improved oligonucleotide therapy

CNBC1 week ago

Earnings

Corporate Company Earnings, Find Earnings Per Share and Earnings History Online

Entrepreneur2 weeks ago

How Success Happened for Josh Harris, Co-Founder of Apollo Global Management and Co-Founder of Harris Blitzer Sports & Entertainment

Harris has a knack for building and growing forward-thinking ventures.

Review

    Select language

    Trending