Archive December 2020

How the Halving Impacted Bitcoin?


Bitcoin halving is undeniably a huge event for the entire crypto comminute and one that has had great consequences, not just on Bitcoin. As the year comes to an end, we can really see the real consequences of the halving that occurred on May 11, 2020. In this article, we take a look at the halving and how it impacted Bitcoin over the course of 2020.

The role that miners have in the blockchain network is a good introduction to Bitcoin in general and how it is different from other cryptocurrencies and fiat currencies.  Otherwise, they have an indispensable position because they have to solve computational problems in order to validate a new block of transactions in the network. Thus, their work not only ensures that the blockchain network is safe but also without the miners, it would be impossible for new BTC to enter into circulation.

It goes without saying that it is a tedious job that requires an investment in good equipment, computer hardware, energy, and time. The halving is an event set to happen after 210,000 are mined, and it occurs roughly every four years. The purpose of the halving is to cut the inflation in half, as the reward of miners is also split in half, with each halving. More specifically, the reward was 50 BTC before the first halving in 2012, then it got reduced to 25 BTC, and in 2020, it is 6.25 BTC.

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XRP Hangs While SEC Officially Files Charges Against Ripple


XRP ( XRP-USD ), the third largest cryptocurrency in the world, lost nearly a third of its value on Wednesday, when investors responded to official accusations from the United States Securities and Exchange Commission (SEC) alleging that the token is an unlicensed bond.

The SEC filed lawsuits on Tuesday against U.S. company Ripple, whose founders created XRP. Two Ripple executives also face charges.

The SEC alleged that Ripple and its executives sold unlicensed securities, violating the rights of investors in the lawsuit. The watchdog said the group had illegally raised $1.3bn (£968m) since 2013 by selling XRP tokens without SEC authorization.

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Tokens And Accounts In The Context Of Digital Currencies


Understanding the context in which tokens are referred is important for understanding digital currencies. The purpose of this note is not to propose new terminology or definitions, but to provide guidance that can help prevent potential confusion or lack of communication in the use of the terms 'token' and 'account'.

The first section of this note explains how the cryptocurrency community addressed the concepts of tokens and tokenization. The second section examines the domains of the payment economy and central banks, and discusses tokens in the context of CBDC. The note concludes by highlighting some problems with the dichotomy 'tokens vs. accounts' and the potential challenges that may arise as a result of the continued use of these ambiguous terms.

The broad adoption of the ERC-20 standard probably helped shape the notion of a 'cryptocurrency token' as a custom asset issued on top of a blockchain through the use of smart contracts. Other blockchain platforms that followed Ethereum's example by offering flexible programming capability, such as Eos, Cardano, Tezos and Stellar, allow the issuance of custom assets that the cryptocurrency community calls tokens.

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DeFi Is The Only Start Of a Much Bigger Change: Interview With Ilia Maksimenka


Maksimenka PlasmaPay uses blockchain to allow users to store, buy, exchange, send and receive currency (cryptographic and fiduciary). They are also working on solutions across chains, stimulating development and keeping rates low. In Maksimenka's opinion, The DeFi this year is the only start of a much bigger change: Banking 3.0.

Recently, we have seen more engagement in cryptography by governments , both negative and positive. Government regulation in particular has been a controversial issue. Maksimenka thinks there's a golden way to be nice to governments.

"The second round of stimulus financing, the CARES Act and the Fed's bond-buying programs, have added $3 trillion to this year's balance sheet. That equates to about three-quarters of the amount of money previously created in the Fed's 100-year existence. This increases the abundance of money available to invest, and bitcoin is one of the assets through which funds are flowing. The case of bitcoin is therefore optimistic," Maksimenka said.

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The Biden Administration May Change The World With New Encryption Regulations


Devoid of any regulatory framework in the last four years, we have been operating in limbo when it comes to developing and advancing encryption products. Innovators in the fintech and blockchain industries have the ability and vision to create products that solve real problems for everyone, from individuals to big banks and governments, but without a clear path forward, these products cannot grow and scale to their full potential.

Regulation should not be a guessing game. Since 2019, when the Securities and Exchange Commission declared that neither Bitcoin (BTC) nor Ethereum (ETH) are securities, the sector is stagnant. Without clarity, blockchain innovation will be limited to just two currencies - the industry is much bigger than that. The lack of regulation stifles the immense potential that encryption and blockchain provide.

A new administration presents a new opportunity for elected officials across the political spectrum to develop clear policies and regulations that allow banks, fintechs and corporations to custody and use encryption to improve efficiency and provide a better customer experience.

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2020 Was The Year That Bitcoin Financing Came True


This has been a year that none of us will soon forget. While the world seems like a chaotic place, Bitcoin continues to find its footing and remain stable, constantly proving critics wrong over and over again.

Funding the development of FOSS has always been a rather complicated situation. We all know the importance of the software, but due to its open and free nature, there is not much incentive to fund it. After all, there is nothing to sell, Bitcoin is free for anyone to use.

Anyone who understands the importance of this has participated in developer funding in the past, but something has changed this year. In the past, most of the funding came from small groups or organizations (such as Blockstream, Chaincode, MIT, etc.) hiring developers directly.

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After Incredible Gains In December, Traders Pulled Out Of Bitcoin Mining Stocks Today


Bitcoin is the most popular cryptocurrency in the world and bitcoin mining operations keep tokens flowing. Some mining companies have chosen to list their companies on the stock exchange, allowing investors the chance to own a share of those companies. And December 2020 is a month that bitcoin mining investors should remember for a while.

Today, HIVE Blockchain Technologies has given a business update that highlights a general truth for bitcoin miners recently. The company mainly extracts Ether, the native token of the Ethereum blockchain. But it also extracts bitcoins. Since October 1, HIVE has mined more than 19,000 Ether and 140 bitcoin.

In the last two months alone, the price of bitcoin has more than doubled and Ether has gone up 80%. Each miner has a different equilibrium price for mining cryptocurrencies based on the unique cost structure of each company. However, the cost to mine bitcoin and Ether does not fluctuate with token prices. Although HIVE did not provide financial information in its business update, bitcoin miners have a greater chance of profiting from rising cryptocurrency prices.

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Curve Finance Wants To Promote Euro Stablecoins In DeFi


As announced in a tweet on Sunday, Curve now has a liquidity pool to switch between Stablecoin Stasis Euro (EURS) and a synthetic euro, SEUR, on the Synthetix derivatives platform. Currently, the stable currency market is dominated by currencies tied to the U.S. dollar, which means that European and Asian users often have no option but to assume some exposure to the U.S. dollar, either they wish or not.

Curve expects the new pool to develop the euro markets on the platform, assess interest in other currency options in Ethereum, and ultimately represent a step toward opening curve's foreign exchange markets. A governance proposal was approved to enable curve DAO token, CRV, rewards for liquidity providers in the pool. However, this did not seem to have been enacted until the time of this publication.

The platform's token and governance agreement were prematurely deployed by a community member in August. After the developers frantically verified that the contracts and parameters were legitimate, it was decided to adopt the deployment as the official release. The following month, Curve was one of 10 new members who joined Huobi's Global DeFi Alliance.

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The Euro Is The Best Of The Worst In Reserve Currencies


Record levels of central bank liquidity and government stimulus during the global pandemic have expanded currency supply, which weighs on the purchasing power of fiat currencies. A fiat currency has only the faith and full credit of the countries that print the currency with legal course as collateral. The foreign exchange market measures the value of one currency in relation to others. Therefore, it is a challenge to see the overall impact of the devaluation on the fiat currency. The moves against gold, Bitcoin and other tangible assets provide some insights.

We saw the U.S. dollar, the world reserve currency, fall from its highest level since 2002 in March to the lowest since 2018 in December. The euro is also a reserve currency. As we move towards 2021, the outlook for the value of the euro against the US dollar looks optimistic. The Currency Invesco shares the Euro Currency Trust (NYSEARCA: FXE) moves up and down based on the value of the euro against the US dollar.

It is not uncommon for governments to manage currency levels through a coordinated intervention process. When a currency falls for technical or fundamental reasons, intervention to facilitate the fall provides stability. Foreign exchange markets tend to trend for long periods, and price spikes are a rare exception. Therefore, the level of price manipulation is high because governments can justify intervention. Meanwhile, all signs point to a general erosion in the value of the asset class.

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Bitcoin (BTC) Is Less Volatile Than Tesla (TSLA), Says CoinShares Analyst


Making an interesting comparison, CoinShares' chief strategy officer explains the volatility analogy by comparing Bitcoin (BTC) shares with Tesla's (TSLA). Both asset classes were the best performing this year and the favorites among the investor community.

Bitcoin's accumulated returns for the year are currently above 200%. In addition, the world's largest cryptocurrency also increased more than 400% from March 2020 lows. On the other hand, Tesla had a spectacular run on Wall Street, becoming the most valuable auto company with a market capitalization of more than $600 billion.

TSLA's share price rose massively 650% in the year to date at Monday's close. Speaking about the sharp rise in TSLA shares and the stock market, Demirors adds that bitcoin's price rise doesn't actually "seem so wild."

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