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Bitcoin and the damn electricity…..

October 5, 2021

Yesterday afternoon, a crew of workers descended upon the Arc de Triomphe– one of the most famous landmarks in Paris–to begin dismantling a piece of art.

Bitcoin and the electricity

Bitcoin and the electricity

The Arc de Triomphe has been fully wrapped in more than 250,000 square feet of silvery-blue plastic for the past three weeks, a sort of ‘life art’ first imagined decades ago by a Bulgarian-born artist named Christo Javacheff.

He called it “L’Arc de Triomphe, Wrapped.”

Now, I like art as much as the next guy. But it certainly makes me wonder how much time and how many resources went into this work.

The fabric itself had to be manufactured, which took natural resources and electricity. It had to be transported. It had to be installed. Work crews had to consume fuel going to and from the job site.

Now it will take them another three weeks of work to dismantle it. And the fabric will have to be recycled, which itself consumes a significant amount of energy.

In total that seems like quite a lot of resources expended, simply for the sake of covering a landmark with some fabric.

I raise this point as a counter-example to the constant criticism of cryptocurrency. The consensus algorithms for certain coins (including Bitcoin) require significant computing power to secure the blockchain.

And this computing power requires electricity. Lots of it.

In fact the amount of electricity consumed by Bitcoin miners is often compared to the entire electrical consumption of a small country, like Belgium or Sweden.

This is what the headlines usually say, something like “Bitcoin uses more electricity than Many Countries” (which was an actual headline from the New York Times last month).

Headlines like this are designed to spark fury and outrage by readers. But as is nearly always the case, the journalists fail to provide the full truth, or proper context.

It’s true that Bitcoin requires vast amounts of electricity. That’s the ‘cost’, so to speak. The reports never talk about the benefit. But let’s come back to that.

Think about “L’arc de Triomphe, Wrapped” again. Consider all the resources that went into creating it– the electricity, fossil fuels, etc. And then all the resources into dismantling it. All for an exhibit that was only on display for three weeks.

Was the benefit really worth the cost?

Consider bigger examples, like big tech companies. Facebook alone is responsible for more electrical consumption than 2/3 of the world’s countries.

Plus, the company boasts billions of active users averaging hours and hours each day scrolling infinitely through butt selfies laden with pithy maxims about life and success.

Try to imagine the magnitude of electricity wasted on the consumption of Instagram.

What about Netflix, and all the vast resources (including electricity) that go into delivering our evening’s entertainment?

What about pornography? Some of the larger Internet porn sites alone consume more electricity than entire countries.

It’s interesting how little criticism there is about any of these examples.

No one batted an eyelash when an artist wanted to squander a bunch of resources covering an already beautiful structure.

No one cares how much electricity these big companies consume… because so many people like the product.

And as far as I can tell, The New York Times has never published a story about how much electricity is used so that its subscribers can read The New York Times.

No. This environmental vitriol is reserved exclusively for Bitcoin.

Even Elon Musk has criticized Bitcoin because of its electrical consumption. Though just this morning he Tweeted some dog image related to the ‘Shiba Inu’ coin, whose algorithm still consumes plenty of electricity. So who knows where he stands.

It doesn’t matter that plenty of other industries, sectors, businesses, and institutions use vast amounts of resources in producing their goods and services.

There are always costs. Bitcoin has costs. But any sensible analysis should weigh the costs against the benefits. And Bitcoin (i.e. cryptocurrency in general) has vast benefits.

Crypto represents a new financial system– one that is completely transparent and available to anyone with a mobile device.

By comparison, our current financial system is dominated by central bankers who engineer (and then ignore) inflation, and by large commercial banks who routinely cheat their customers.

Think about the cost of this system. And not just the electricity cost of keeping all of those banks going; what is the human cost in terms of the economic inequality and suffering caused by our paper money system?

Cryptocurrency still has significant flaws, but it’s improving all the time (unlike our current financial system which hasn’t seen any real innovation in decades).

The cost is significant. But it’s far more beneficial than wrapping the Arc de Triomphe in 250,000 square feet of fabric… or most of the other things that gobble up natural resources and consume tons of electricity.

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So, Bitcoin in correction mode?

Again the coin sector crashed after a concerted bad mouthing action started by Elon Musk, followed by Warren Buffet, etc.

bitcoinDo not lose faith! The destruction of fiat can only lead to higher coin prices, in the long run.

We are feverishly finishing off our exchange project CME (Crypto Master Exchange), which will feature the following:

  • instant exchanges between the major crypto currencies and fiat
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  • interest bearing securities in crypto
  • loans against crypto collateral
  • visa card drawing on your coins
  • all done with license, offshore subsidiaries to keep you tax free

Please sign up here, so we can inform you once our service is available:

Waitlist CME coin buster

 

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Scan the QR code or copy the address below into your wallet to send some bitcoin

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Donate BTC or ETH to this address

Scan the QR code or copy the address below into your wallet to send some bitcoin

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What helps in Corona times? Steroids..

Cheap and readily available steroids have been found to reduce the risk of death in critically ill coronavirus patients by 35 per cent, according to a study.

An international team of researchers analysed seven trials involving three different types of anti-inflammatory corticosteroids.

These are the types of steroids used by the NHS to treat a wide range of conditions, and the same  anabolic steroids which are used by some to gain muscle mass.

You can get all you need here, super quality and reasonably priced. They even accept bitcoin as payment option.

Roidgear.net will now accept Bitcoin and Other Cryptos

Roidgear.net will now accept Bitcoin and Other Cryptos

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How You Can Spend Your Bitcoin Fortune wisely

How You Can Spend Your Bitcoin Fortune wisely

http://bargeldwillkommen.com/wp-content/uploads/2014/06/BellaVista_sample.jpgLet’s face it: Having only crypto will not make for a good life. And crypto now is high, very high. A correction is in the cards, so why not lock in the insane profits and convert it to something you can touch, see, feel and use? At  a bargain?

A friend of mine is offering this one-of-a-kind real state in the Caribbean, a true mansion, your neighbors will be Schmid from Google, and other hi-flyers. Cabarete, one of the six important surf and kite surf locations in the world is just 5 minutes by car.

He is very motivated to sell as he needs to go back to Europe to take care of his elder parents.

Go and have a look for yourself

Or here first a video:

 

Gone Crypto: Ex-Microsoft, Google Product Lead Sees Crypto Journey Through Math, Money and Freedom

Vanessa Harris
  • The speed of innovation to launch new products in the crypto space is astonishing compared to the time frame at the previous tech-giants she worked for, Harris said
  • Bitcoin and Ethereum have grown and proven their value over time and are some of the main players that will exist long-term, she said

For over 20 years, Vanessa Harris was focused on technology companies. But now she’s venturing into a new field: crypto. 

Although she is embarking on a new journey, her deep-dive into the crypto world was perhaps a lot longer than most folks, she told Blockworks in an interview. 

“I first started becoming aware of crypto when I was doing my final year college thesis and I was doing it on anonymous, digital cash and back at the time, this was before blockchain and before Satoshi (Nakamoto) and all of those things,” Harris said. 

For a while she forgot about digital assets, but when Bitcoin was founded she began to raise her eyes to the topic again but still found it to be too “shady” at the time, she said. 

But in 2019, Harris started to become more aware of some of the innovations and developments in crypto that were transpiring and a lightbulb went off in her brain, she said. “Finally, there was a clearer use case for crypto,” she said. 

Earlier this month, Harris was appointed chief product officer at Permission.io after being a lead product manager for about 9 years at Microsoft and 11 years at Google

In her previous roles, she launched more than a dozen products for billions of users like Google Domains, the first version of Office Web Apps and Google’s DoubleClick Search, to name a few. 

Harris said she feels like her journey into crypto has been centered by math, money and freedom. 

“The math for me was back in the day learning cryptographic algorithms and how we can do all of that. Then money is kind of the DeFi aspect of it and bringing utility and realizing there’s something around here changing the financial system,” she said. 

“As I spent more time in crypto, I’ve met more people who really anchor on the freedom aspect of it. I think for most, at the most basic level of financial freedom, crypto has offered opportunities for people,” she added. 

Now, she’ll be working with Permission.io, a provider of “permission-based advertising” that allows individuals to “own their data” and earn crypto and rewards through its ASK Coin. 

In her new role, she’ll lead the development of its core products and drive the use cases for ASK within the crypto community as it becomes more available for individuals to acquire. 

The speed of innovation to launch new products in the crypto space is astonishing compared to the time frame at the previous tech-giants she worked for, Harris said. “You’re talking 6, 12, 18 months to launch products,” she said. 

The crypto space has grown substantially over the past couple of years, down to the past few months, Harris noted. But while the crypto industry saw expansion through numbers of projects and funding, she expects the industry to enter a consolidation phase over the next few years. 

“I don’t think it’s sustainable necessarily to have a dozen, two dozen smart contract platforms, as an example,” she said. “I think there will be some consolidation in the space…and the main players will become kind of durable and resistant,” she added. 

With that said, Bitcoin and Ethereum have grown and proven their value over time and are some of the main players that will exist long-term, Harris thinks.

“At some point, you realize that culture is the most important (aspect) of all,” she said. “If you don’t have a culture that supports your strategy, then no matter how great your strategy is, you’re not going to be able to effectively execute on it. And so that’s something where, you know, I’ve seen that shift in the last few years,” she said. 

In the coming months and years, Harris said she plans to build out the product suite for Permission so the company can help users control their data more and make the ASK coin more accessible for more people.


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The post Gone Crypto: Ex-Microsoft, Google Product Lead Sees Crypto Journey Through Math, Money and Freedom appeared first on Blockworks.

When Will the SEC Approve a Spot Bitcoin ETF?

ETF Blockworks Exclusive Art by Axel Rangel
  • Some ETF professionals do not expect a spot bitcoin ETF to hit the US market until the second half of 2022, at the earliest
  • Eventual approval of a spot bitcoin ETF is “inevitable,” Bitwise Asset Management CIO Matthew Hougan says

Though 2021 has been a year during which bitcoin hit an all-time-high price and saw increased demand from institutional investors, the expectations around when the US Securities and Exchange Commission (SEC) could approve a spot bitcoin ETF are not as bullish. 

Bloomberg Intelligence Analysts Eric Balchunas and James Seyffart wrote in a note published last week that proposed ETFs that would invest in bitcoin directly “have virtually no chance of SEC approval in the near term,” given the agency’s concerns about lack of oversight and potential for market manipulation. 

The prediction follows the SEC’s denial of VanEck’s proposed spot bitcoin ETF, which came a couple of days before its 240-day review period for the product expired.  

“The SEC’s rejection of VanEck’s proposed spot Bitcoin ETF, though not surprising to us, appears to hinge on a concern with legal technicalities that overlooks the potential benefit to investors and recent improvements in market transparency and security,” Balchunas and Seyffart explained. 

Objections to a spot bitcoin ETF

The SEC noted in a Nov. 12 letter that the Cboe BZX Exchange, on which the VanEck ETF’s shares would have traded, has not met requirements in the Securities Exchange Act of 1934. A section of the law requires that a national securities exchange be “designed to prevent fraudulent and manipulative acts and practices,” as well as to protect investors. 

Cboe also argued in the VanEck application that the bitcoin futures market is meaningfully large and regulated by the Commodity Futures Trading Commission, satisfying the SEC’s surveillance criteria.

“The SEC rejected this notion, saying actors could manipulate the spot bitcoin market without trading CME futures or affecting them,” the Bloomberg Intelligence analysts added. “Saying this so soon after approving bitcoin futures ETFs appears inconsistent to us given that the spot and futures markets are intertwined; manipulating spot prices would in turn affect futures.”

Neena Mishra, director of ETF research for Zacks Investment Research, noted that SEC Chairman Gary Gensler has mentioned the need for surveillance agreements with crypto trading platforms, which appears to be almost impossible in the near-term.

“It remains to be seen if exchanges like Cboe can secure those surveillance agreements with some of the largest crypto exchanges and if that would satisfy the SEC,” she said. “I don’t expect to see a physical bitcoin ETF anytime soon, but I hope I’m wrong.”

The SEC’s stance doesn’t make sense to many, Mishra added, given that spot bitcoin ETFs are trading successfully in other countries. Canada-based Purpose Investments launched the world’s first ETF backed by physically settled bitcoin in February on the Toronto Stock Exchange. The fund gathered $1 billion in assets during its first month.

A week after the VanEck rejection, the SEC ruled that it would need more time to consider whether to allow Global X’s proposed spot bitcoin ETF to trade. 

The SEC had last delayed its decision related to the planned offering on Sept. 29, a regulatory filing states, and the agency is choosing to “institute proceedings” to determine whether it will approve or disapprove the product. 

A spokesperson for Global X declined to comment.

“I think their denial of that was pretty firm and it really sort of solidified the SEC’s case that they are not interested in a spot ETF at this time,” Morningstar Analyst Bobby Blue said of the Global X postponement. “Market dynamics might push them to do so over time, but at this point I don’t see one on the short- to medium-term horizon.”

What are others saying?

Other ETF industry professionals that Blockworks has spoken to also do not expect the SEC to allow such a product in the next six or so months.

Gensler continues talking about the lack of regulation in crypto markets, which he believes could subject bitcoin ETF investors to fraud and manipulative acts, said Nathan Geraci, president of The ETF Store. A spot bitcoin ETF won’t come until there’s a crypto regulatory framework in place that the SEC is comfortable with, he added.

“Gensler was crystal clear in messaging that the SEC would be open to bitcoin futures ETFs under certain parameters and he then followed through by approving those exact products,” Geraci told Blockworks. “Until we see similar messaging regarding spot bitcoin ETFs, I’m not holding my breath on approval.”

The ProShares Bitcoin Strategy ETF (BITO), which launched on Oct. 19, was the first bitcoin futures-based product in the US and has grown to $1.4 billion. Similar funds launched later on by Valkyrie Investments and VanEck have about $70 million in combined assets, according to ETF.com.

Grant Engelbart, a senior portfolio manager at Brinker Capital, said he wonders if the lack of asset growth in the bitcoin futures ETFs – aside from BITO – could affect the SEC’s thinking about demand for a spot vehicle. 

“My guess would be late 2022 at the earliest,“ Engelbart said about a spot bitcoin ETF approval. “Issuers will continue to put forth strong evidence for the need for spot and market efficiency and eventually gain the confidence of the SEC, but I’m just not sure there is much of a rush from the SEC’s standpoint, especially after the wave of recent futures-based approvals.”

Dave Nadig, CIO and director of research for ETF Trends and ETF Database, said he predicts a spot bitcoin ETF approval “post-midterms at the earliest.”

While Bitwise Asset Management CIO Matthew Hougan did not share a specific timeline for when he expects such a product to be permitted, he said it will happen eventually.

Bitwise reapplied to launch an ETF last month that would invest directly in bitcoin. The San Francisco-based crypto fund group had previously filed for a physically-backed bitcoin ETF in 2019, but withdrew its request in January 2020 amid SEC concerns.

Since 2013, when the first bitcoin ETF application was filed, the SEC has asked good questions about the nature of the bitcoin spot market, Hougan said, adding that he hopes Bitwise’s latest research – published with its most recent filing – answers those questions.

“Every day brings us closer to the inevitable eventual approval of a spot bitcoin ETF,” Hougan told Blockworks. “Nothing from the VanEck disapproval or other recent action changes this.”


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Podcast: Lessons From Selling Hundreds of NFTs | Jack Butcher

Jack Butcher

In the latest episode of Blockworks’ podcast “Empire,” Jason is joined by Jack Butcher, a designer, entrepreneur and the Founder of Visualize Value.

After spending 10 years working in Fortune 100 advertising in NYC as a creative director for multi-billion dollar brands, Jack took the decision to start Visualize Value, allowing him to focus on highly-specialized consulting, and a product business that scales infinitely.

Jason & Jack discuss how to monetize personal brands, the transition from web 2.0 to web 3.0, the advantages of NFTs and how large brands should be thinking about NFTs.

They also discuss:

  • Traditional art versus NFTs
  • Creating NFT contracts
  • and so much more!

Check out what they had to say in the video below. 👇

On “Empire,” once a week, Jason interviews individuals that have built the crypto industry to talk about their struggles, bold moves and tough decisions. For any NPR or Guy Raz fans out there, you can think of “Empire” like a “How I Built This” for the bitcoin and crypto industry.

Episodes are released every Thursday morning. 

Subscribe to Empire today on Apple or Spotify. Watch episodes on YouTube.


Are you a UK or EU reader that can’t get enough investor-focused content on digital assets? Join us in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket. Buy it now.


The post Podcast: Lessons From Selling Hundreds of NFTs | Jack Butcher appeared first on Blockworks.

Crypto CPA: NFT Tax Reporting is a ‘Gray Area’

NFT and taxation
  • Shehan Chandrasekera, CPA, and head of tax strategy at CoinTracker, says currently most people are reporting art-based NFTs as collectibles
  • People should track their cost basis, meaning how much they pay [for their NFTs] and how much they sell for it, according to Chandrasekera

With non-fungible token (NFT) sales sky-rocketing this year and the end of 2021 approaching, NFT holders could find themselves in a bit of a quandary when it comes to tax season. 

To get an idea of what collectors need to do to prepare, I spoke with Shehan Chandrasekera, a certified public accountant (CPA) and head of tax strategy at CoinTracker. 

Chittum: How have owners had to categorize their NFTs when reporting their assets? Are NFTs usually categorized as intangible assets and have to pay according to capital gains taxes? 

Chandrasekera: It’s kind of a gray area right now. For tax purposes, most people are reporting them as collectibles. When you create collectibles, and you make money that results in capital gain taxes.

Chittum: Can you clarify what processes are currently in place to report NFTs? It seems like it’s a multi-step and murky process. For example, holding an NFT is one thing to report but since you’re using cryptocurrency to buy the NFT that, in itself, is a taxable event because crypto is considered property in the eyes of the IRS, right?

Chandrasekera: In 2014, the IRS came in and said, cryptocurrencies are treated as property so that’s the guidance that we have around crypto taxation. However this year, NFTs have really skyrocketed. Right now, we don’t have NFT specific tax guidance, and I don’t think there will be any NFT specific tax guidance coming out soon.

I believe most art-based NFTs should be treated as collectibles. If this is the case, high-net-worth individuals may be subject to a maximum 28% long-term capital gains tax rate compared to the 20% maximum rate that regular cryptocurrencies are subject to. 

The collectible rule makes the most sense. It’s very similar to selling a classic car that’d be just a collectible.

Chittum: As the NFT space expands into more than just works of art, what obstacles do you think owners, creators and marketplaces will face?

Chandrasekera: I think there are some challenges. Some people might be thinking, “I’m just trading my art, [to make] money, that’s not taxable, because I never realized that in cash.” But unfortunately, that’s not the case. And, it’s really hard for people to calculate NFT taxes, because they have to keep good records, meaning how much they spent on their NFTs because this cost basis is required for you to calculate the capital gains and losses when you later sell the NFTs.

Chittum: How can NFT holders and creators adapt until clear tax reporting guidance for their assets if/when they are given?

Chandrasekera: In the interim, what people should do is track their cost basis, meaning how much they pay [for their NFTs] and how much they sell for it. They can use tools such as CoinTracker to do this.

This interview has been edited for length and clarity.


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The post Crypto CPA: NFT Tax Reporting is a ‘Gray Area’ appeared first on Blockworks.

Macro Factors Driving Koreans to Crypto Lending

Seoul skyline
  • Crypto lending in Korea is taking off because of two major macro changes to the economy
  • Surging real estate prices and monthly rents means the government is curbing loans to the sector, while a proposed capital gains tax for crypto is accelerating interest in the crypto loan industry

What do you get when you mix a unique system of apartment rentals involving fronting the landlord sometimes tens or hundreds of thousands of dollars for a term loan called ‘Jeonse, a crypto capital gains tax, and a government looking to tax crypto while restricting ‘Jeonse’ loans? A fertile ground for the development of crypto loans. 

In Korea many people do not pay rent every month. No, this doesn’t mean that it’s a nation of freeloading squatters, but rather tenants deposit a sum of money equivalent to 50-70% of the property’s value into the landlord’s account for the term of the lease. When the tenants move out, that money is returned. Effectively, this gives the landlord interest-free liquidity to expand their holdings while the tenant lives rent-free. 

The problem, however, is that property value in urban Korea, particularly Seoul, is soaring. This means that for many, the amount of money required to get into the rental market via the Jeonse system is out of reach. Banks have stepped in as lenders to tenants, and given historically low interest rates this has made it affordable to access a higher and higher amount for the Jeonse payment. 

But with real estate in a bubble and loan sizes growing larger and larger, the government intervened to place certain restrictions on loan eligibility, thereby tightening supply. Given that there’s an election scheduled for the spring, however, and loan restrictions would disproportionately impact young and low-income borrowers, as Bank of Korea Governor Lee Ju-yeol explained at a recent hearing, that the restrictions have been eased — for now — banks and regulators are keeping an eye on how things are going, and still tightening credit in anticipation for an upcoming interest rate hike. 

“[The Jeonse loans] have been temporarily eased last month, but there is high probability they might return next year, so we took it into account,” Oleg Smagin, Head Of Strategy at Delio, a Korea-based digital assets software company, told Blockworks in an interview. “We see a lot of demand from our users, especially amid home rental loan restrictions set by the current Korean government last year.”

Loans, not capital gains

Korean crypto traders are also facing a hefty capital gains tax as of 2022, creating a demand for avenues to avoid the tax penalty when transferring capital from crypto to fiat. 

Smagin explains that Delio’s Blue service allows users to borrow up to 75% of the value of their coins at an interest rate between 12-16%. While this might seem expensive compared to offerings from the likes of Celsius and BlockFi. But a key difference is Korean traders want fiat, not stablecoins, which adds to the bottom line for the lender.

“There’s a low level of stablecoin adoption in Korea.”

“Stablecoin pairs are almost extinct in the local exchanges, users trade against Korean Won as users will prefer to borrow fiat rather than stablecoins,” said Smagin, explaining how this collision was unique to Korea. 

“In Korea, we also have a low percentage of unbanked population and low interest rates, but the explosive surge of prices in the real estate market forced the government to put restrictions on mortgages and home rental loans [Jeonse], making people go elsewhere to look for money,” he explained.

“That’s why we thought it’s the right time to start lending fiat against crypto.”


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The post Macro Factors Driving Koreans to Crypto Lending appeared first on Blockworks.

Major Estonian Bank LHV Starts Offering Cryptocurrency Trading via Bitstamp

One of the largest banks in Estonia, LHV, is now offering cryptocurrency trading directly from its app through crypto exchange Bitstamp. The bank says it is the “first bank in the Baltics to start offering crypto trading.”

Large Estonian Bank Now Offers Crypto Trading

LHV announced this week that it has become “the first bank in Estonia to offer its clients the opportunity to trade in crypto assets.”

Starting Monday, LHV customers can trade major crypto assets directly on its mobile app. Transactions are carried out on the cryptocurrency exchange Bitstamp. Clients’ crypto assets are held on the Bitgo platform, which is part of the Toronto Stock Exchange-listed Galaxy Digital Group.

The bank started experimenting with blockchain technology in 2015. Since then, “We have been waiting for the regulatory environment to evolve, for the market to become organized, and for professional market players to emerge,” the bank noted.

Madis Toomsalu, chairman of the management board of LHV Group, commented: “By today, crypto assets have become a large field in terms of both market value as well as turnovers based on decentralized financial services.” Toomsalu elaborated:

We will be the first bank in the Baltics to start offering crypto trading to our clients – as the first step, they will be able to buy and sell crypto assets on the LHV mobile app.

Martin Mets, LHV’s head of investment services in retail banking, said: “Considering the increasingly mature level of development of crypto assets and their rapidly growing popularity as a new asset class, we are ready to add this asset class to the range of products offered to LHV bank clients.” LHV added: “This is clearly a very volatile and high-risk asset class, but for a risk-conscious client, crypto assets can play an important role in the portfolio.”

Initially, customers can now buy and sell eight selected major cryptocurrencies at market prices: bitcoin (BTC), ether (ETH), litecoin (LTC), uniswap (UNI), chainlink (LINK), stellar lumens (XLM), polygon (MATIC), and aave (AAVE).

Mets detailed:

In the near future, we plan to add new instruments, order types and other solutions for more convenient trading.

What do you think about LHV bank offering cryptocurrency trading? Let us know in the comments section below.

2021 Crypto Literacy Report Suggests 96% of Americans Fail to Comprehend Basic Crypto Knowledge

2021 Crypto Literacy Report Suggests 96% of Americans Fail to Comprehend Basic Crypto Knowledge

A recent study suggests that 99% of people from Mexico and Brazil and 96% of Americans fail to grasp the basic concepts of cryptocurrencies. Out of all the survey respondents aware of bitcoin, 17% in the U.S., 15% in Brazil, and 14% in Mexico own the crypto asset. The report published by cryptoliteracy.org further explains that 9 out of 10 survey respondents did not know that Bitcoin’s supply is capped off at 21 million.

Despite the Bull Run in 2021, Study Shows Crypto Knowledge Is Lacking in the US, Mexico, Brazil

According to a study published by cryptoliteracy.org comprehension of cryptocurrency fundamentals is low in 2021. The researchers leveraged a Yougov survey to sample roughly 1,000 participants who are aware of cryptocurrencies from each country. The study consisted of 17 questions pertaining to cryptocurrency, bitcoin, decentralized finance (defi), non-fungible tokens (NFTs), and general sentiment. One of the key findings in the survey notes that “ownership is the best teacher,” which meant that survey participants that owned a digital currency, were twice as likely to answer the 17-question quiz correctly.

The cryptoliteracy.org report explains that only 33% of the respondents thought that purchasing crypto assets was easy today. Furthermore, the survey believes “crypto is failing its mission of financial inclusion.” Ownership tends to point to wealthy and highly educated users at this point in time, according to the survey’s results. Additionally, older generations are “left behind,” in regard to cryptocurrency comprehension, as 67% of U.S. ‘Baby Boomers’ had a “lack of crypto knowledge.”

Survey Shows Youth More Likely to Spend Cryptocurrencies, While Older Generations See Them as an Investment

Other key findings from the survey say that Mexicans and Brazilians are more likely to buy and sell crypto in the next six months. Meanwhile, use cases can vary by geography and generation, the study details.

“25% of Brazilians and one-third of Mexican respondents would use crypto to pay for goods and services. Just 13% of American respondents advised they would do so,” the cryptoliteracy.org study highlights. The survey adds:

50% of Americans advised they would utilize crypto as a way to save for the future. Younger generations are nearly three times more likely to use crypto as a means of payment than older generations who see it more as an investment.

Basic bitcoin knowledge about the protocol’s supply cap also lacks a great deal among the survey’s participants. “Bitcoin’s computer code-based issuance schedule is what makes it so unique and different from central banks controlled by politicians,” the study’s authors explain. Yet 9 out of 10 survey respondents lacked understanding of the basic concepts of bitcoin supply and demand (like the capped supply of 21 million).

What do you think about the 2021 State of Crypto Literacy report? Let us know what you think about this subject in the comments section below.

Nigerian Crypto Exchange Raises Over $4 Million in Latest Funding Round

A Nigerian crypto exchange, Busha, recently raised over $4 million in a funding round led by Jump Capital.

Busha, a Nigerian cryptocurrency exchange, is reported to have raised a $4.2 million seed funding round recently. These funds, according to the exchange, will be used to expand its operations across Africa.

Financial Freedom

According to a report by Disrupt Africa, Jump Capital led the funding round that also featured Cadenza Ventures, Blockwall Capital, CMT Digital, Greenhouse Capital, Raba Capital, and other investors.

In his comments following the announcement, Busha co-founder and CEO Michael Adeyeri is quoted explaining the exchange’s key objective and how the latest funding round helps the company. He said:

Our immediate mission is to onboard the next one million Africans into the crypto economy. We have seen the significant difference in financial freedom that crypto can make in the lives of our over 200,000 users, and we are very motivated to extend this to more people on the continent.

The announcement of the capital raise comes after Busha had just launched a revamped version of its app which now enables minimum purchases of as low as 50 cents for a more inclusive offering, one-click limit orders, and automated recurring buys.

Most Promising Place for Crypto

Meanwhile, the report quotes another Busha co-founder, Moyo Sodipo, who lauds the cryptocurrency exchange’s pioneering innovations such as instant payouts and 24/7 customer support. Concerning the latest capital raise, Sodipo said: “This funding will empower us to do more faster, improve our security, and take a definitive leadership position in our target markets.”

Peter Johnson, who is a partner at Jump Capital, said his firm was excited to work with Busha which operates in what he called the “most promising places for crypto to make a significant impact in offering financial freedom to millions of individuals.”

What are your thoughts about Busha’s latest capital raise? Tell us what you think in the comments section below.

Stablecoin Economy Surges Past $150B, Stablecoins Command Over 50% of Global Crypto Trade Volume

Stablecoin Economy Surges Past $150B, Stablecoins Command Over 50% of Global Crypto Trade Volume

A great number of digital currencies have swelled in value this year and as the end of 2021 approaches, the market capitalization of all 11,000+ crypto assets in existence is roughly $2.6 trillion. These days, it’s safe to say that dollar-pegged tokens, otherwise known as stablecoins, have a strong presence in the crypto market. Today the market capitalization of all the stablecoins in the world is more than $152 billion or 5.84% of the crypto economy’s USD value.

Stablecoins Have Seen Massive Growth Within the Crypto Economy

Stablecoins have been a hot topic in the cryptocurrency world as the growth of these dollar-pegged tokens in 2021 has been quite significant. Basically, a stablecoin is a type of cryptocurrency that leverages the value of an external reference such as the U.S. dollar or another fiat currency.

The largest stablecoin today in terms of market capitalization is tether (USDT) as its current market valuation is $73.95 billion. During the last 30 days, USDT’s market valuation has increased by 3.9%. The second-largest stablecoin in terms of market capitalization is usd coin (USDC) with $37.6 billion, increasing by 15.2% in 30 days.

2 Dollar-Pegged Tokens Represent 73% of Stablecoin Economy, Stablecoin Trading Pairs Dominate

While the stablecoin market valuation is $152 billion, USDT and USDC combined command $111.55 billion or 73.38% of the stablecoin economy. While USDC’s market cap jumped more than USDT’s, it wasn’t the biggest increase last month within the top ten stablecoin standings. The stablecoin terra usd (UST) saw its market cap jump by 164.1% and frax (FRAX) increased by 119%. The stablecoin magic internet money (MIM) swelled by 56.8% and liquity usd (LUSD) increased by 49%.

The presence of stablecoins is strong and during the last 24 hours, stablecoin trade volume was more than 50% of the crypto economy’s global trade volume. Bitcoin (BTC) markets alone show tether (USDT) represents 52.63% of all BTC swaps today and the stablecoin issued by Binance called BUSD commands 7.05% of BTC’s trade volume. USDC is the seventh-largest trading pair with BTC and captures 1.75% of all BTC swaps.

Ethereum (ETH) markets are not much different as USDT represents 45.11% of today’s ether trading pairs. BUSD represents 9.60% of all BTC swaps on Friday and USDC commands 1.68%. Whether crypto markets are bearish or bullish, stablecoins like USDT, BUSD, and USDC have been BTC’s and ETH’s top trading pairs in 2021, alongside fiat currencies like USD, JPY, and EUR. The same can be said for a great majority of the top coins in the crypto economy, as stablecoin pairs represent a large portion of trades these days.

What do you think about the swelling stablecoin economy? Let us know what you think about this subject in the comments section below.

Crypto Economy Slides 8% in Value Shaking Out Billions, Blame Placed on New Covid Variant

During the last 24 hours, the crypto economy has lost 8% in value as a great number of crypto asset prices dropped significantly during the overnight trading sessions. Crypto markets lost more than $22 billion in value as the leading digital currencies in the top 20 standings lost anywhere between 6% to 20%.

Global Markets Lurch in Fear Over B.1.1.529 Variant

Global markets are shaken today as headlines declare that a new Covid-19 variant called B.1.1.529 is spreading beyond South Africa where it was discovered. The B.1.1.529 variant is said to be more contagious than the Delta variant and it is said to have around 30 mutations. As soon as the headlines broke, markets in nearly every nation worldwide started to tank, and investments tied to the oil and gas sector dive-bombed. For instance, the international benchmark for a barrel of Brent crude slipped in value by 5.3%.

On Friday, the economist and bitcoin advocate Alex Krüger tweeted about how the new variant has roiled global markets. “Global markets spooked today on this new Covid variant,” Krüger said. “Big moves across global markets. Growth stocks trashed, crude oil lower, rates down, rotation back to tech. Traders’ pricing in higher odds of renewed lockdowns on low liquidity conditions. It’s OK, no Covid in the metaverse,” the economist added.

$22 Billion in Value Exits Crypto Economy Leading to an Accumulation of ‘Downtrend Momentum’

The crypto economy lost 8% in value during the overnight sessions on Thursday and into Friday’s mornings trading sessions. At 11:00 p.m. (EST) on Thursday, bitcoin (BTC) was swapping for over $58K per unit but by Friday morning, BTC changed hands for just over $54K per unit. Bitcoin is down 7.9% during the last 24 hours and its market cap is just above the $1 trillion mark. Ethereum (ETH) lost 9.4% during the last day and each ether is changing hands for just above $4K per unit on Friday.

The 11,000+ crypto coins in existence lost more than $22 billion in value and there’s around $200 billion in global trade volume today. Stablecoin trades command more than half of the recorded volume with $115.1 billion in 24-hour stablecoin trade volume. On Friday, Du Jun from Huobi Global shared some market insights tied to bitcoin’s (BTC) current state.

“According to data from Huobi Global, BTC has continued to fall since the morning, and its momentum has increased sharply in the afternoon, and it quickly fell to 54,500,” the Huobi Global analyst said. “The daily decline has exceeded 4,000, and it is still falling. The current position has broken through the minimum point of 55500 in the last round of decline. From a long-term perspective, the downward trend of BTC prices has not changed, and a new round of downward adjustment has arrived,” the analyst added. Du Jun’s market outlook further noted:

Judging from the 4h k-line, the transaction volume increased sharply, which intensified the changes in bitcoin’s price. The price crossed to the lower rail of the Bollinger Band, EMA lines turned down, and DIF crossed DEA downward significantly, which formed a sell signal. It can be expected that the downtrend will weaken and even adjust horizontally in the short term, but the long-term downtrend remains unchanged. From the daily perspective, today’s bitcoin price jumped out of the horizontal adjustment in the past week, and formed a clear linear response to the downtrend one week ago, which means that the adjustment of bitcoin’s price last week is only accumulating the downtrend momentum. In the short term, pay attention to the magnitude of the price correction.

Insititutional and Coronavirus Fears

Alex Kuptsikevich, the Fxpro senior market analyst, also explained how the lurch in global markets put pressure on crypto markets. “Because of the institutional love affair, bitcoin is substantially vulnerable to moments of exit from risky assets when it sells off everything, regardless of the outlook,” Kuptsikevich explained to Bitcoin.com News in a markets update note sent on Friday. “[Bitcoin’s] severe sell-off risks dragging the entire cryptocurrency down with it. From a different perspective, retail investors have developed a reflex to buy crypto on coronavirus fears, with WHO discussing new virus variants and restrictions on air travel,” Kuptsikevich added. The Fxpro analyst concluded:

This means that real crypto-enthusiasts and long-term investors in cryptos may consider buying it out of the severe downturn on the exit of traditional financial institutions.

What do you think about the current state of bitcoin prices and the crypto economy? Let us know what you think about this subject in the comments section below.