♙♙♙♙♙♙♙♙ The pistol is raised. A single shot cracks through the air and the hunters burst across the field. Each with one singular goal: The Bounty – 25,000 Moons. The game has started, and the rules are simple. To claim the bounty, find your prey. Take the only possession it has for yourself. Hunters may…
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The advantages of holding bitcoin over gold have been publicized and debated countless times. These two digital assets, one a physical asset and the other referred to as the “digital gold”, have both gone head-to-head when it comes to which one is the better store of value. As the bitcoin crash raged on last week, the discussion is once again being had about the merits of holding a relatively stable asset such as gold compared to a volatile one such as bitcoin. Gold Provides Cover Over the past week, the price of bitcoin had declined more than 30%. This had led to a sea of red in the market as the rest of the cryptocurrencies followed suit. During this time, the year-to-date value of bitcoin had dumped significantly. This put the digital asset which had been outperforming its physical counterpart for quite a while behind it once more. Related Reading | Over $250 Million In Liquidations As Bitcoin Recovers Above $20,000 Despite the year-over-year returns of gold being gown, it remained in the positive while that of bitcoin has declined into the red. As of Tuesday, gold is up 0.6% year-to-date, putting it in the green territory. As for bitcoin, the cryptocurrency is now down a whopping 55% on a year-to-date basis. The volatility of bitcoin has been a cause for concern for those in the traditional finance market. However, it has also been one of the biggest pulls for those invested in the asset. It had grown more than 50% last year to an all-time high of $69,000 before declining over the next six months to a low of $17,600. BTC price trading below $21,000 | Source: BTCUSD on TradingView.com While the sell-offs have rocked bitcoin, gold has not been as unfortunate. So when it comes to the argument of which of these digital assets serves as the better inflation hedge, gold has now come ahead of the cryptocurrency. Bitcoin Going Down? Bitcoin’s recovery streak has been encouraging over the past couple of days. After hitting a low in the $17,000 territory, the recovery has been steady ever since, save a few dips here and there. With this has come a recovery above the 5-day moving average for the first time in the last week. Despite this, the selling pressure has remained high and more sell-offs are rocking the market. However, support is beginning to form above the $18,000. Related Reading | Bitcoin Recovery Wades Off Celsius Liquidation, But For How Long? There are also the implications of the price of the digital asset falling below the previous cycle high for the first time ever. It has given credence to the school of thought that the digital asset has not reached its bear market bottom. Coupled with the fact that bitcoin has previously fallen at least 80% in all its previous markets, the bottom is likely to come in at around $13,000. Additionally, the bottom is expected to happen about 15 months after the previous halving which puts the bottom at some time in the 4th quarter of 2022. Bitcoin is trading at $21,313 at the time of this writing. It is up 1.93% in the last 24 hours with a market cap of $405.8 billion. Featured image from Kinesis Money, chart from TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
Is FTX saving the crypto industry or taking control of it? The derivatives-focused cryptocurrency exchange has been on the sidelines, watching everything around them collapse, and finally decided to take action. That or, as the rumor says, FTX created this whole situation in their labs and is now buying assets on the cheap. There’s only circumstantial evidence of that, though. The bailout, on the other hand, is completely real. The proceeds of the credit facility are intended to be contractually subordinate to all client balances across all account types (BIA, BPY & loan collateral) and will be used as needed. — Zac Prince (@BlockFiZac) June 21, 2022 Earlier, BlockFi CEO Zac Prince tweeted, “today BlockFi signed a term sheet with FTX to secure a $250M revolving credit facility providing us with access to capital that further bolsters our balance sheet and platform strength.” For his part, FTX CEO Sam Bankman-Fried replied “today we’re injecting $250m into BlockFi and partnering with them so they can navigate the market from a position of strength.” Sources tell me that it is common knowledge within the #Crypto industry right now that Alameda (FTX) & SBF are 100% trying to push the #Bitcoin price down right now to liquidate a number of market participants including, but not limited to #Celsius. pic.twitter.com/u4o8s60m2S — N (@NickNew41532832) June 21, 2022 Over the last few weeks, the crypto market has been trending down. The contagion effect of the Terra/ Luna extinction event rocked every company out there, most of all those who offered yield on cryptocurrency deposits like BlockFi and Celsius and hedge funds like Three Arrows Capital. These companies’ problems and possible liquidation of assets, in turn, sent the crypto market into even more turmoil. Related Reading | Crypto Exchange FTX US Sees Growth: Trading Volume Surged 512% In Q3 What Is FTX ‘s Endgame? We wouldn’t know, but the exchange put itself in a position of power with all of these movements. According to Bankman-Fried, BlockFi “successfully removed at-risk counterparties preemptively,” and the company acted decisively by “removing troublesome counterparties before they become a problem, and adding cash before it was necessary.” And yes, by “troublesome counterparties” he means Celsius and 3AC. 3) Sometimes leadership means acting decisively and that’s what BlockFi did: removing troublesome counterparties _before_ they become a problem, and adding cash _before_ it was necessary. — SBF (@SBF_FTX) June 21, 2022 For his part, Zac Prince frames it as a victory all around. “Throughout the market volatility of the last several weeks, I’m incredibly proud of how our team, platform and risk management protocols have performed. Today’s landmark announcement reinforces BlockFi’s commitment to serving its clients and ensuring their funds are safeguarded”. However, are $250M enough for a company this size? Let’s hope it is, for the sake of its clients. In any case, both companies seem excited to collaborate. Prince said, “this agreement also unlocks future collaboration and innovation between BlockFi & FTX as we work to accelerate prosperity worldwide through crypto financial services.” On the same subject, Bankman-Fried claims FTX is “excited to partner with BlockFi to offer industry leading products.” So, everything’s peachy on the crypto front at the moment, right? However, what happens if BlockFi keeps losing money? Does FTX get a chance to buy the whole company for peanuts? SOL price chart on FTX | Source: SOL/USD on TradingView.com BlockFi ‘s Previous Problems In an article about the subject at hand, Zerohedge reminds us of a recent episode in BlockFi’s history: “As a reminder, BlockFi was fined $100 million in February this year for its high-yield interest accounts, which were deemed as security products by the United States Securities and Exchange Commission.” And, who could forget when they gave out BTC instead of stablecoins to some lucky users? “One Reddit-user shared a screengrab of their bonus payment showing that they received 701.4 Bitcoin, which equates to more than $24 million US dollars at the time of writing. They said they believe they were owed around $700 USD and that the Bitcoin transaction had been reversed.” Related Reading | BlockFi Co-Founder Sees Huge Growth And FOMO For Crypto In 2022 To that, Zac Prince responded, “Our team is battle tested and has weathered many storms over the years, which only makes us stronger and more resilient as we navigate today’s market environment.” That’s a way of putting it. However, what could he say about the rumor that the company lost more than $285M during the bull market? @BlockFi income statement is real bad It's a mess of negative numbers, let's dig into it togetherhttps://t.co/Kr9lhiH8AS — otteroooo (@otteroooo) June 19, 2022 If the rumors are true, does that guarantee that their business model failed and they won’t be able to survive the bear market? No, it doesn’t. It suggests it, though. Featured Image by Cytonn Photography on Unsplash | Charts by TradingView
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The international bank found high technical feasibility among the projects, but significant work on legal and governance frameworks still remains to be done.
I want to stack ether and put it to use but ideally in a simple method such as staking. I am curious if someone can explain if there is a known cheapest way to buy ether and use it in defi? Previously I bought ether for cheap on loopring L2 it needs to be brought…
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Decentralized exchange Uniswap to add additional NFT functionality to its platform following the acquisition.
The inventor of Ethereum Vitalik Buterin took aim at the controversial Bitcoin price model Stock-To-Flow (S2F). Buterin believes the model is “not looking good” and openly criticized it because it gives crypto investors a “false sense of certainty”. Related Reading | Bitcoin Back At $21K After 75% Drop, Where Does It Go From Here? This creates the illusion, according to Buterin, that Bitcoin will constantly trend to the upside. As the recent price action has proven, this could lead to many people losing their initial investment and more. Buterin said via his Twitter account while presenting the following chart: I know it’s impolite to gloat and all that, but I think financial models that give people a false sense of certainty and predestination that number-will-go-up are harmful and deserve all the mockery they get. Created by pseudonym analyst Plan B, as seen in the chart, this model predicted that BTC’s price was going to reach $100,000 by the end of 2021. The model deviated as Bitcoin trended to the downside later that year, and many consider it a failure. Detractors, like Vitalik Buterin, believe the model fails to take other key variables into consideration and only projects BTC’s price to the upside for the coming future. For example, it failed to predict what would happen to Bitcoin under the current economic conditions, with a reduction in global liquidity and a U.S. Federal Reserve (Fed) raising interest rates. In response to Buterin’s comment, the inventor of the S2F Model, Plan B said: After a crash some people are looking for scapegoats for their failed projects or wrong investment decisions. Not only newbies but also “leaders” fall victim to blaming others and playing the victim. Remember those who blame others and those who stand strong after a crash. It Is Possible To Predict The Price Of Bitcoin? Plan B has made changes to its S2F model and now refers to the 2019 original version and the new S2F version. As seen below, both versions predict a BTC’s price trending to the upside in 2022 and the foreseeable future. If BTC stays on its current levels, around or below $20,000, in the coming months the analyst said the S2F model “will be less useful”. The other scenario is that BTC is “extremely undervalued and will bounce back soon”. On the effectiveness of the S2F and any other model used to predict financial performance, Plan B said: Prediction is hard, especially the future. EMH even says predicting financial markets is impossible. Related Reading | Cardano Vasil Hard Fork Launch Date Set, Time To Buy The News? Later, as the conversation around the S2F model got heated, Plan B added: So I share my analysis and charts FOR FREE. Never told anybody to buy or what/when/how/howmuch to buy. Now covid, China ban, Russia war and inflation tank all assets including bitcoin … and somehow some weeners blame their investment decisions on me? Lame.
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