Crypto Exchanges: Bridging The Gap Between Sovereignty And Performance

As per the number being used by leading crisis critic, Nouriel Roubini, 99% of crypto-asset transactions were reported in 2019 on centralized exchanges. For the near future, CEXs will most probably continue to be a core component of the crypto world. CEXs are fast and convenient, and yet traders typically need to deposit their money into an exchange-controlled account. Sadly, research by signalscv.com shows that such a loss of sovereignty over the digital assets of the user can constitute a severe and expensive compromise.

Crypto Custody: Control over Confidence –

The nightmare of CEX investors is that they can be hacked or fraud-filled and end up losing their deposit accounts. Although the decline of Mt. Gox in 2014 took seven years, its post remains comparable with the risk of fraud in crypto-monetary terms. Once the biggest exchange in the global economy, BTC, filed bankruptcy in 2014, where approximately 650,000 Bitcoin consumers were missing. Victims continue in the process of obtaining partial remuneration in 2021.

This kind of counterparty risk, unfortunately, is still today a threat. Turkish bursar Thodex fled in April with $2 billion of uncounted investor money. China’s FCoin and also Australia’s ACX shuttered without notifying a year before. It does not make a logical difference to speculators that are out of their pockets whether these failures are caused by hacks, fraud, or problems of a business model. In an idealistic situation, the ability to transfer client funds quietly between accounts must be denied to an interchange operator.

Risk Management –

There are different ways to minimize these risks for well-capitalized or well-connected traders, although the solutions have their disadvantages.

Credits are a way of keeping an account from being pre-funded. Yes, if you are prepared to pay a large premium to a courier or if you can set up yourself as the top consumer and receive a loan line for a specific exchange. In any case, it is costly, and that only the biggest donors can establish so good relations with various currencies. 

Prospect for better DEX –

Can the interests of traders be safeguarded without the inconveniences of existing DEXs?

Cryptocurrency as a source of trust could be used and combined with highly classified computing hardware to manage order mapping. For example, Trusted Execution Environments, which operates separately from the default operating system not available to the network administrator, can configure a special category in a computer processor.

A longer-term perspective can be used to accomplish similar outcomes through the combined effect of other new techniques such as computational multiples or zero-knowledge shreds of evidence, but these strategies are less advanced and applied to real-world situations. It would be hard to implement.

Conclusion –

The pre-financing necessity on cryptocurrency exchange brings problems and risks which pose a major barrier to technology platform adoption. While DEXs offer the investor an inventive option to control the financial resources, they are also subject to significant compensation. Cryptocurrency exchanges have to find methods to increase sovereignty without compromise on accomplishing the mainstream adoption and competitiveness of digital assets.

Bringing Bitcoin Innovation Home to America

In a conference session that took place on 4th and 5th June in Miami, US Senators named Cynthia Lummis and Warren Davidson shared their views and ideas of bringing advanced technologies or innovations to America. The topic was discussed on the first day of the conference at Bitcoin 2021. The two policymakers discussed their opinions to attract investors towards America and also protect investments following the right to privacy fiercely.

In the Bitcoin 2021 conference session, the two US government officials, Rep. Warren Davidson and Senator Cynthia Lummis, were welcomed by other officials. The topic of discussion was “Bringing Bitcoin Innovation Home to America” and the ideas or ways in which they can attract entrepreneurs and investors to invest and protect their bitcoin investments. Rep. Davidson said, “It is important to protect private wallets as if we don’t, someone will attempt to ban them.” He added, “I wish people were important in protecting their privacy seriously as they took the second amendment seriously where the citizens were given the right to have and carry guns.” This was a warning to make people learn about the right to privacy.

After Davidson, Senator Lummis mentioned that a reserve country should back Bitcoin. She said, “Bitcoin should now focus on underpinning the US dollar as a store of value, as gold used to be in early times.” They mean that bitcoin should be a centralized currency and the US dollar should back bitcoin.

However, this idea discussed by Rep. Davidson and Senator Lummis didn’t impress people much, and most things aren’t accepted by bitcoin owners who can never work according to the government. Bitcoiners mentioned that it was interesting to hear the views of two policymakers. You can also get all-time updates on Bitcoin 2021 and the talk of central authorities or policymakers on joining their conversation. It is important to be aware of all the happenings and news of Bitcoin 2021 as it majorly impacts its market and price.

Well, it is highly important for every citizen or bitcoin user to know about their right to privacy and must protect the private crypto wallets using the right security measures. Still, there might be many changes in the laws and regulations, so you must keep yourself updated about current news.

Regardless of the type of wallet you choose, you must use the right security measures to protect your wallet. Know which wallet will be safe according to your needs by reading about different types of wallets.

Bitcoin Bulls Are Confident Even As A Key Btc Price Metric Hits A New Low in May

Lending or margining money is an option in the crypto world. What does this mean? Let us explain you all in a simple way. If you want to increase the capital amount that you want to invest in BTC, you can leverage USDT and put it on BTC. This will increase the capital amount and on other hand increase the profit gain. But is that it, what about the interest that will put on the leverage amount? It will be compensated from the BTC’s price appreciation and compensate itself. 

 This might be a new concept for traders who entered the crypto world recently, but for the old traders and the ones who are willing to take the risk even in the volatile situation, this is an opportunity to grow the percentage of their profits. They observe the leverages and margins that are been taken up in the market of BTC and tether to predict if the market is going to go bearish or bullish. But in spite of this theory, BTC reached its All-time high even though the BTC/USDT borrow metrics showed that it reached the lowest since November 20, 2020. At the current moment, even though this figure favors all the bulls of the market, it is to think for the next move of catalysts who worked upon the current situation.

The theory was simple, whenever bitcoin revolution app traders and people in the market borrow USDT or any other stable coin they use it to trade other costly cryptocurrencies for the long run. But, if they borrow BTC in the same pair, it is mainly for short positioning and exiting. Theoretical meaning is whenever USDT/BTC leverage or lending ratio goes up, the market price of BTC is likely to touch new heights and the same goes vice versa with the falling. But the current data is quite opposite to the prediction were looking at the OKEx charts they have been holding eight times larger USDT loans than BTC-denomination loans. Albeit explains while been on the bullish side that this is near the lowest level since November 17, 2020. 

If we look at the current charts, the analytics is favored more towards the bulls. But why is there a great drop in the price of $60k (stable) to $50k (current price)? Around this time, there was a massive spike in lending of USDT rate in the mid of March as BTC surpassed the $60k milestone. The leverages were long and reverted a conversion rate of almost 13% decrease over the following days. This made people stop utilizing the leverages on stable coins to look at a decrease or a dip in the market overall.

A small 1% fee on the leverages that the traders take was not enough to stop them from longing on BTC. The point is that this fact may remain a positive indicator until the demand for BTC or any other stable coins once again emerges in the market. Which may increase the annualized fees by a few more percent and affect the leverage cycle of traders.

Bitcoin Bulls Are Confident Even As A Key Btc Price Metric Hits A New Low

The long-to-short ratio of bitcoins has been dropped in the last five months. However, this is not considered as bait anymore. The bitcoin holders still have confidence that the price of these coins would hit high in the coming months. The bulls are still under the control of bitcoin pricing. The margin trading will enable the investors to take money or cryptocurrency to improve their trading position and boost its size to get huge returns. For instance, when you borrow Tether (USDT) you can also borrow bitcoin, which would increase the exposure of cryptocurrencies. There will be an interest rate you must pay for borrowing the cryptocurrency, but this price must be appreciated so that the losses can be compensated.

The new traders who are trading in the crypto market are not aware of this, but the investors who are borrowing BTC would bet on price downside. This is the main reason for analysts to have a close watch on the amount that is lent for bitcoins and tether. The insights that are gained will let people know whether the investment is bearish or bullish. From the gathered data, it is observed that the price of bitcoins would be high all time, but the BTC/USDT ratio has hit the lowest ratio in November 2020. Though the figures from the data still have bulls, there are many questions that are coming up regarding the catalysts that are behind this major move. If the traders are taking USDT or stable coins, these are being used as a long term cryptocurrency. On the flip side, bitcoin borrowing is happening for short positions. When the USDT/BTC ratio of borrowing is going up, the market would be angled in the bullish way. The movements that are happening opposite would demand for the bitcoin shorts.

USDT loans are eight times larger when compared to the bitcoin denominated loans. There are margin trades happening regularly in the spot markets. The trader can start to do margin trading by moving the collateral funds to their margin account. The exchanges would have 3 to 10 times of leverage based on the volatility and conditions of the market.

The BTC has hit the new high of USD 61,800 with the sustainable candle of USD 55,000 in the last 17 years. Increasing the borrowing rate of bitcoin would result in shortage of bitcoin leverage. As per the data that is given by Bitfinex, the bitcoins lending rate has increased by 1% every year. The higher costs are not due to the reduction of the borrowing rate of bitcoins. The traders who are betting on a negative price would need to borrow bitcoins to carry out trading in a short position. They have to pay the interest for the borrowed bitcoins and trade with the US dollars and stable coins. The transaction can be closed by buying the bitcoin at a low price and return to the lender by taking additional interest. There is an increase in the lending rate of bitcoins in the US and it crossed USD 60,000. The BTC dropped to 13%, which resulted in the fiat and stable coin borrowing rate to regularize. The traders who are borrowing the cryptocurrencies are paying around 15 to 23%. The annual fee of just 1% is not enough to lure the borrowers. Though the margin rate of 23% is considered to be expensive, there is always a room for leverage.

Mastercard Will Let Merchants Accept Payments in Crypto This Year

The latest news highlights that Mastercard is all set with its plan to let merchants enjoy accepting payments with an additional option that is crypto in the prevailing year.

As hinted from an acquainted source related to the news, a new option in the Mastercard client’s currency payments digitally will be available in crypto at merchants partaking it. However, no current notification is out regarding the digital currency forms that are yet to be added by the company.

A highlight put upon Michael Miebach (CEO) Q4 word of honor by the information taken for integration of payments involving digital currency ” within the network directly” as a step by the new head on 28th January was to supplement flexibility at a maximum level for merchants as well as customers alike.

In the past, Mastercard showed support for crypto involving transactions on a limited scale with its Uphold and Wirex partners. Though, the programs were suitable for payments only and no settlement was present. The conversion of coins into fiat currencies was in the process before getting credit in the merchant’s account.

The initiative pays attention to the promise for the dynamic upend among businesses and storekeepers preferred to opt-in. All of them get a chance to perform their business operations outside the fiat system boundary, considering their clients are equipped with proper cryptocurrency.

A blog post came in highlights showing that Raj Dhamodharan (Blockchain and Digital Asset Products Mastercard Executive Vice President) left some clues that it will be Stablecoins to prevail in the list of Mastercard integration’s beneficiaries at the primary level.

“We are moving ahead with a straightforward philosophy related to crypto: The whole thing is about preferences. There’s no recommendation released from Mastercard regarding crypto usage or beginning with crypto. Though, we are doing our best to help people start using digital currencies by businesses, customers, and merchants,” stated Dhamodharan.

In the current phase, it is only a small population for merchants that are starting with bitcoin. Plans released by Tesla to receive bitcoin as payments for cars is still under the hypothetical light. In reality, the cryptocurrency-rich economy is still far away.

Though, Mastercard is actively participating in building the foundation stone for the coming time with the licensing years surrounding space for digital currencies. It holds 89 patents for blockchain and is looking forward to getting approval on 285 from over the globe.

In 2013, Mastercard opted to file for a patent to handle payments involving bitcoins. Later on, in 2015, the company dropped the effort. In 2019, it started to recruit a crypto veteran and developer team. At present, it is organizing a platform that enables testing digital currencies by the central authorities.

3 Misinterpretations about Cryptocurrency and Refutations to Them

The bitcoin industry has risen substantially in the last era. But, The rate of absorption is still quite low for cryptocurrencies around the globe. Many people on this planet are still not ready to give them a chance, considering the various advantages and tremendous success of virtual currencies relative to fiat currency. Nearly 60% of online consumers are conscious of Bitcoin, however, bitcoins are currently used by just fewer than 5% of the worldwide people.

Although there are several explanations why much of the global population does not want to offer cryptocurrencies a shot, there is a significant part to be played by inaccurate assumptions and myths regarding crypto currencies. A few of these misconceptions are responsible for the lack of adequate evidence on crypto, and some are mere misinformation and misinformation toward cryptos. Here are the top 3 myths and counterarguments regarding cryptocurrency.

1.  A sphere some people expect to burst: Cryptocurrency

Several individuals remain hesitant to participate in or utilise crypto in their everyday lives. The instability of crypto currencies is among the factors behind such a perception. One day, cryptocurrency will see a dramatic valuation increase and plunge the very next day. It causes many individuals to think that virtual currencies are just here for a brief amount of time until the collapse of the bubble leads them to be worthless.

Refutation: Cryptocurrencies will Stay

Bitcoins are all here to remain, and thus no real soon will the bubble break. It would expose the true underlying worth of crypto if the crypto bubble was to ever collapse and then the participants who are legitimately involved in the currency will still be hanging on to the properties. Players lacking great value perceptions will avoid the improvement in consumer exchange by gobbling up cryptocurrencies. For bitcoins, it would be a good development and would allow them to enhance even more.

2.  Cryptocurrencies Have No Intrinsic Value

Slightly earlier in 2020, Warren Buffet asserted, since they have no inherent value, cryptocurrency offers very little. Bitcoin does not even have a spot in the real world, as per Warren, as it wouldn’t provide a special approach to real financial difficulties. For that purpose, he said that no crypto will ever be his business.

Refutation: Cryptocurrencies Have Intrinsic Value

  • Interchangeability – One could exchange one crypto or exchange this against fiat money with some other.
  • Longevity – On open public blockchains, which are here to remain, cryptos live. They would still remain, and there is no means for them all to be killed or forced to vanish.
  • Cryptocurrencies are scarce – There is a small availability of crypto assets such as Bitcoin. As there would still be interest for the money, the small availability brings Bitcoin worth. Shortage also suggests that centralized institutions can never increase or control the economy.

3.  Cryptocurrencies Grant Confidentiality to Attackers

A common misconception remains that cryptocurrency is the currency of traffickers. When discussing cryptocurrency, the word anonymity is thoughtlessly tossed throughout and this has led several individuals thinking that offenders would get away with monetary offences by merely turning their earnings into cryptocurrency. A lot of individuals assume that exchanges with bitcoins are completely undetectable. This helps them keep away from the coins because, without their awareness, they might engage themselves in violence.

Refutation: Cryptocurrencies Are Pseudonymous

While when searching for a bitcoin wallet, you shouldn’t provide your information, it is not difficult to connect a bitcoin wallet to a consumer. Both legacy cryptocurrency exchanges still have a mechanism of individual authentication, so evidence should be submitted for anyone who wants to use cryptocurrencies. Also it is important to note that each and every crypto currency payment is recorded on the blockchain. This ensures that to pursue their offences, police will track irregular payments and arrest suspects utilizing cryptocurrency. The strategy can become more complicated than the standard banking scheme, but the effect is that the poor teams wind up in jail.

Concluding Note

Bitcoins have immense ability to change the environment, but many people are being held back by myths and mistaken opinions. The planet needs freedom from all kinds of centralised control and we can be helped by cryptocurrency. It is vital to teach the public about the true meaning of cryptocurrency and why they are the globe’s prosperity.

Crypto Remains Unregulated In Russia — Lots Of Talks But No Action

In November end, news came up that crypto users from Russia under the grey zone for the operation could stand at a risk stage since the nation’s financial authorities had contacted the forces to perform an outlaw over the digital asset used instrument payments.

After that, the country’s interior ministry shows a confirmation upon the rumors regarding the track to come up with a legally operated framework over digital assets confiscation that could be released within 2021. Apart from that, Russia’s Federal Financial Monitoring Service agency head also spoke in front of the parliament regarding the legalizing prospects related to cryptocurrencies’ usage.

Are these moves an indicator that the government is putting a thought over the digital asset, and is it perceived to be a threat for the Russian community of crypto users?

No legal status upon the tender:

As per a local Izvestia report, it was out that the Federal Financial Monitoring Service and Russian Central Bank are drafting legislation over the crypto asset usage ban to buy any goods or services online. Any details regarding the draft were not out regarding the potential mechanism, or one did not disclose any information regarding violation punishment. As per the updates, any comment hasn’t been made officially by the Finance Ministry and Federal Financial Monitoring Service. 

Seeing other jurisdictions, legislators from Russia face a struggle in defining a legal or illegal status for the usage of digital assets from 2017. As per the notes from yahoo Bitcoin Revolution, several petitions came from the trade associations regarding legislation of crypto. At present, any official statement over the mining of crypto is not present by the Russian government.

The community of Crypto in Russia: “Make it a harness, not a banned one!”

Among several crypto entrepreneurs in Russia, it is rumored that much would want to see a well-defined set of regulations than any limbo prevailing over it wherein the industry is operating currently. They doubt that any such ban with a blanket on payment involving cryptocurrency would be enough to solve the regulator’s problems. 

The prohibitive series of measures under the working process in different Russian government departments predict the product’s individualistic role players that are not interested in defining the new asset class. Even due to mechanisms lacking a defined and detailed enforcement, the initiatives may consume a reasonable amount of time to enter the materializing state or even not stand at the fruition stage.

Bitcoin Speculators Hit All-time Lows As Grayscale Says Btc Like 2016

The growth of cryptocurrency is just the beginning, as the bitcoin holders are gradually betaing out the speculators. The recent bitcoin report shows a pretty optimistic divergence in the Hodler vs. Speculator index. Let’s read a bit more about it.

Structure repetition of 2016

The HSI usually measures the bitcoin activity from the wallets in order to provide an impression of how exactly the network participants are utilizing Bitcoin. This can result in market sentiment as well. According to the on-chain analytics of coin metrics, they label coins as ‘holder coins’ which have not moved much in the past one to three years. And on the other hand, speculator coins are the ones that have been moved in the last 90 days.

And as a result, according to their research, they have seen the hike of holder coins. They have even observed the gradual reduction of speculator coins. They have even stated the fact that the current state of Bitcoin resembles the scenario of 2016. It was roughly 18 months before it had its all-time highs as of $20,000. Thus, growth is undoubtedly evident and is, to a significant extent.

BTC beats record

Now the Grayscale provides better insight regarding the strengths of Bitcoin investors as of 2020. Thus, we will consider their statistics regarding this issue for better knowledge.

Even though there has been such a hike in price variation in the last twelve months, there is undoubtedly a keen desire among the investors to continue their investment in bitcoins. They do not prefer to trade or sell it off at any price less than the current yearly high of $12,000. Thus, there has been a significant level of bitcoin owned in a single year.

The metric even indicates the fact that there is undoubtedly a strong conviction in bitcoin as per the current base of investors in this market. It also clearly suggests the hike of demand among the investors and uses it as a store of value rather than trading it. This is undoubtedly a great option that appeared to the investors since they are more interested in holding up the Bitcoin irrespective of its volatility.

The store-of-value proposition this month clearly gains much more publicity and popularity this month as Microstrategy. This was purchased over 21,000 BTC during the mid-august. It is total confirmed news that it had holdings that were equivalent to over $400 million. Thus, it was pretty precious and important.

Conclusion

This clearly states that there has been a significant rise in the demand of holder coins after looking at Grayscale’s statistics. This took up the interest of investors to a large extent and made them shift to better options. They have apparently gained such an affinity towards BTC that they might even hold on to them as per the reports. This amount of growth is clearly insane. Furthermore, the 2016 scenario played a major role in the market for various reasons, as discussed above.

BitMex awards its last developer grant to a Bitcoin scalability solution from MIT

One can find a variety of cryptocurrencies in different countries. To monitor the same is much needed now, and that is why there are experts who come forward to offer various solutions for its scalability. One more such expert has been rewarded for his effort and perfect solution. The BitMex’s 100x Group has been awarded to Calvin Kim for the Boitcoin development with scalability solution. He gets $40000 as rewards for his solution Utreexo. This protocol is unique when it comes to handling security concerns of transactions. It checks that the sender has enough coins before processing the request. If the user has any unspent BTC, it will be saved as UTXO. This will be beneficial when the user has to send any data about the availability of funds in the account.

The entire Bitcoin blockchain is around 300GB, and the UTXO is around 4GB. Researchers from MIT are of the opinion that as the network grows in the future, this may present a bottleneck situation.

How does it work?

In this case, the sender maintains the data of UTXO with himself, and this is proof that there are enough funds in the account for a particular transaction. If any evidence is required to show the balance in the account, the validity can be presented in the form of a hash, which takes up less space when compared to the complete data. In this way, better security can be achieved, and it can be scaled to any level in the long run.

What are experts saying?

However, experts believe that any sort of scalable solutions that work by replacing full nodes with hashes can lead to problems in the long run. They fear that it may cause instability due to some reasons, and they feel it is better to avoid such concepts. The general belief is that all data should be sent during the transaction so that they can be validated from any end in the future if it is required.

As the Blockchain technology itself is still new, such options to speed up the process may not be accepted in the initial stages itself. However, considering the benefits it can offer to improve transaction speed in the long run, it may be useful in the future. It would be interesting to see how other market players react to such innovative concepts in the blockchain domain.

The Bad Crypto Updates Of The Week: Mining, Bull Runs, And Tor Attacks

The last week has been pretty rough for the Crypto environment as Bitcoin just ended the week approximately 11000 USD. This is a drop of nearly 2.7% over the preceding 7 days. If calculated, this drop reveals that each day there was a fall of 700 USD. So, this makes everyone curious about one thing – has there something wrong with the bullish moment or will Bitcoin (BTC) make headway to 15000 USD?

The very first mission here is to collapse the stand at 12000 USD even though BTC has shown utter failure to accomplish that two times in 10 days. However, it integrated after every failure. Some specialists have a belief that it is proof of an ongoing bull run.

Monahar’s Advice to MicroStrategy

There is a business intelligence firm known as MicroStrategy and it hopes the same certainly. The company bought 21454 BTC by spending around 250 million USD to make the use of it as its leading reserve asset. Taylor Monahar, who is the co-founder of both MyEtherWallet and MyCrypto, has put some advice to MicroStrategy and to the others looking for how to have control over the amount they are investing at the time of a bull run.

She has to say that one should pick a few long term coins and one should not take the risk of putting 5% of your entire worth. She also added that in case he or she loses it completely, he or she should never ever go for giving a try to get back or recover the sum he or she lost.

Threats on Crypto Investors

The superiority of China is one aspect of the blockchain for fresh investors to keep in their minds. China could easily take power with a 51 percent attack as the nation possesses the maximum portion of the BTC mining capability. Casa’s chief technical officer and co-founder Jameson Lopp is not concerned. He made a statement saying that the attackers are not capable of stealing Bitcoins and he added that any attack would also reduce the worth of their own possessions.

However, China is not the only nation to send threats. Do you know that India is the leading country having call center scams? And, the bigger problem is that they are now after the crypto investors.

Anyways, the recycling industry can be benefiting from the blockchain and companies are turning their faces to public blockchains as there is a visible maturity of the technology.