Author: admin

Categories
crypto

Crypto Taxes 2022: Here’s What You Need to Know According to CoinTracking

PRESS RELEASE. Crypto changes quickly, with new tax laws and regulations coming to several countries in 2022, impacting how people need to report their crypto gains on taxes.
New regulations in the US are a hot discussion topic among crypto investors, with a bill coming to fruition severely increasing the reporting needs for crypto brokers and traders.
Beyond the increased regulation, new investment vehicles in crypto also spark doubts on traders on how to incorporate them into their local tax regimes.
CoinTracking is here to cover the top 5 crypto tax changes to be aware of in 2022 and onward:

More reporting for crypto brokers with the new 1099-B requirements

The Infrastructure Investment and Jobs Act of 2021 (IIJA) of Nov. 15, 2021, requires cryptocurrency exchanges to report crypto transactions on form 1099 starting in 2023. This change requires crypto brokers to issue a tax report with all the individual trades that users conducted, including information such as sales proceeds and costs basis for each trade.
The level of complexity for crypto brokers to comply with the measure is immense and could cause a lack of reporting ability for both brokers and traders, resulting in unfair penalties.
If you have a 1099-B with wrong information from a crypto exchange, you’ll have to correct it and report the actual trades you conducted and their full information. You’ll have to search for a professional tax accountant with crypto experience to help you solve these issues.

More crypto reporting for traders under Section 60501 of the US tax code

More reporting for crypto traders is coming with Section 60501, requiring people who receive more than $10,000 in cash and equivalents in the form of digital assets to file a report with the IRS.
There are two main challenges for traders with this expansion in Section 60501:

The difficulty in determining the Fair Market Value (in USD) of transacted crypto and how to determine the $10,000.
Higher burden and privacy invasion by having to provide additional details (e.g., the transfer recipient, name of the parties, social security numbers, etc.)

DAOs and DeFi 2.0 revenue increase need for crypto tax reporting

The rise of DeFi 2.0 with rebasing protocols like OlympusDAO, Wonderland, and their forks across blockchains is giving investors more opportunities. However, earning staking rewards from these protocols increases the difficulty of reporting, since you’re receiving rewards for each rebase with different underlying Fair Market Values (in USD)
In the US, each time you receive those staking rewards, you have to recognize their Fair Market Value (in USD) as ordinary income. Fortunately, CoinTracking easily tracks your staking rewards from rebasing protocols to ensure you‘re tax compliant.

The search for crypto-tax-friendly locations to cash out profits

As crypto regulation increases worldwide, countries with friendly regulatory frameworks for crypto investors and businesses are becoming a sought-after alternative.
If you have large unrealized gains and are looking to continue your crypto trading journey, moving to a low-tax or crypto-friendly regime may be an option.
Countries like Puerto Rico, El Salvador, Dubai, Portugal, Germany, and Singapore are some of the top crypto-friendly locations worldwide.

Metaverse and tokenization take center stage

Experts predict that GameFi, the Metaverse, and tokenization (NFTs) will go mainstream in 2022. In the event of a bitcoin bear market, rotation from the primary digital assets to emerging categories could even boost that trend.
From a tax perspective, converting digital assets (e.g., bitcoin or ether) for tokens in virtual ecosystems (e.g., in-game digital assets, NFTs, Metaverse tokens) is a taxable event in the US.
For example, trading bitcoin for $SAND (the Sandbox game token) or trading ether for an NFT in any marketplace is a crypto-to-crypto trade, a taxable event in the US, subject to capital gains taxes.
Determining the gain on crypto-to-crypto trades is more difficult, and it increases the need for the use of crypto tax software to easily import trades, get your gains calculated according to your preferred accounting method, and submit tax reports.
Remember to consult with a tax professional with experience in crypto to overcome these challenges and keep updated records of all of your transactions with CoinTracking.
Disclaimer: All the information provided above is for informational purposes only and should not be considered as professional investment, legal, or tax advice. You should conduct your own research or consult with a professional financial advisor when investing.
 

This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Categories
crypto

Europe’s MiCA Crypto Rules Submitted, ECON Committee to Vote in Mid-March

The European Union’s regulatory proposal for crypto markets, MiCA, has been filed with the European Parliament. The latest version of the draft framework does not feature a controversial provision that could have effectively prohibited cryptocurrencies like bitcoin that rely on proof-of-work mining.
Economic and Monetary Affairs Committee to Vote on Latest MiCA Draft on March 14
The EU’s Markets in Crypto Assets (MiCA) regulations have been submitted to the European Parliament’s Economic and Monetary Affairs Committee (ECON), the rapporteur for the regulatory package, Stefan Berger, announced on Twitter. Members of the committee will vote on the legislation on March 14, 2022, he revealed.

Heute habe ich den finalen MiCA-Entwurf eingereicht. Der ECON-Ausschuss wird am 14. März 2022 hierüber abstimmen
➡️ Thread #MiCA
— Stefan Berger (@DrStefanBerger) March 7, 2022
The filed package is missing a text banning companies from providing services for cryptocurrencies based on the proof-of-work mining algorithm (PoW) such as BTC, the coin with the largest market capitalization. The rule was proposed by the factions of the Left, Greens, and Social Democrats, but later removed after sparking a backlash from the crypto industry and community.
Officials and regulators from several EU member states have called for a Union-wide ban on PoW mining which requires more energy than other methods. Sweden insisted on such a measure, citing bitcoin mining’s increasing use of renewable energy at the expense of climate neutrality goals in other sectors of the economy. German representatives have also supported the idea.
“In view of the controversial discussions surrounding the energy consumption of crypto assets, the #taxonomy could provide clarity and ensure a better information basis for consumers,” Berger noted in another tweet. With its taxonomy classification system, the EU is trying to direct investments towards sustainable projects.

The rapporteur further noted that with MiCA, the European Union can set global standards and called on those involved in the process to back the submitted draft. “Strong support for MiCA is a strong signal from the EU Parliament for a technology-neutral and innovation-friendly financial sector,” Stefan Berger elaborated.
The ECON member emphasized that the proposal establishes a regulatory framework that will pioneer innovation, consumer protection, and legal certainty in the crypto space while creating “reliable supervisory structures in the area of ​​crypto assets.”
Once ECON approves the package, MiCA’s implementation will be determined in dialogue between the European Parliament, the Council of the EU, and the European Commission. In February, President of the European Central Bank Christine Lagarde urged the Union to approve the regulations to prevent Russia from using cryptocurrencies to evade sanctions imposed over its invasion of Ukraine.
Do you expect the EU to quickly adopt the Markets in Crypto Assets framework? Let us know in the comments section below.

Categories
crypto

Unicef Receives $2.5 Million in Crypto for Ukraine From Binance Charity Foundation

Binance Charity is donating $2.5 million worth of cryptocurrency to support the humanitarian efforts of Unicef in Ukraine. The announcement comes as the ongoing military clash with the invading Russian forces is putting more and more children at risk.
Unicef to Fund Activities in Ukraine With Donated Cryptocurrency
The Binance Charity Foundation has announced a donation of $2.5 million in cryptocurrency for the United Nations Children’s Fund (Unicef). The money will be used to finance the organization’s efforts in Ukraine amid escalating hostilities with Russia that threaten a growing number of children and their parents.
“Humanitarian needs are increasing by the hour,” Unicef said in a statement. “Many children are profoundly traumatized by the violence all around them. Hundreds of thousands of people are on the move, and family members have been separated from their loved ones,” the organization added.
Unicef noted that the crypto donation comes at a moment when the fund needs to scale up its activities in Ukraine and neighboring countries accepting refugees. The goal is to reach every child in need of protection and Ukraine has around 7.5 million children.
The organization is currently focusing on ensuring access to safe water and healthcare, including in areas close to the line of conflict. The Children’s Fund is working with local authorities to provide immediate help to families in need as well as child protection services and psychosocial care.

“We rely on the generosity and support of the global business community to help Unicef and our partners reach those children and their families whose lives and futures hang in the balance,” said Carla Hadid Mardini, Director of Unicef’s Private Fundraising and Partnerships Division in Geneva. She thanked Binance Charity for its support.
Binance, the world’s largest crypto exchange, announced last week a series of humanitarian activities and the donation of $10 million for the Ukrainian people. Binance Charity has been working with Unicef through its Luxembourg Committee.
Binance founder and CEO Changpeng Zhao commented that the rate at which the conflict in Ukraine is escalating has shocked the world. He also praised the collaboration between the Binance community and Unicef.
In 2019, Unicef launched a crypto fund, becoming the first U.N. organization to not only accept but also disperse cryptocurrency to support projects for children around the world. In 2020, it also provided crypto investment funding of startups.
Ukraine itself has been raising funds in various cryptocurrencies since Russia launched its military assault in February. Authorities in Kyiv and non-government organizations have used crypto donations to support defense efforts and address humanitarian needs.
You can support Ukrainian families, children, refugees, and displaced people by donating BTC, ETH, and BNB to Binance Charity’s Ukraine Emergency Relief Fund.
Do you expect Unicef to receive more crypto donations in support of its humanitarian activities in and around Ukraine? Tell us in the comments section below.

Categories
crypto

Bitcoin Miner Hive to Purchase Intel Mining Chips, Firm Reveals a 100 MW Deployment Deal in Texas

On March 7, the publicly-listed mining firm Hive Blockchain Technologies announced the company inked a deal with Intel to purchase new ASIC mining chips. Additionally, Hive has formed an agreement with an original design manufacturer (ODM) and a non-binding letter of intent with Compute North. Hive said the company plans to deploy 100 MW of mining capacity to Compute North’s renewable energy facilities in Texas.
Hive to Purchase ASIC Chips From Intel, Aims to Deploy 100 MW in Texas
The blockchain company and mining operation Hive (TSX.V: HIVE) (Nasdaq: HIVE) has revealed it has entered a supply agreement with Intel Corporation (Nasdaq: INTC). Hive will obtain Intel’s new ASIC mining chips that will be leveraged in custom-built equipment made for the company. The blockchain firm says it has a manufacturing agreement with an ODM that specializes in “electronics manufacturing.”
“Hive’s engineering team will draw on its expertise in hardware and software implementation and will work closely with Intel and the ODM partner on the systems integration,” Hive’s announcement notes. “These miners are expected to be delivered over a period of one year starting in the second half of calendar 2022, the effect of which, if they are all installed, would be an expected increase of up to 95% in our aggregate Bitcoin mining hashrate from 1.9 exahash per second.”
In addition to the deal with Intel, Hive detailed it closed another agreement with Compute North in order to deploy a 100 MW mining center in Texas. Frank Holmes, Hive’s executive chairman, said the Compute North team “shares the same commitment to using renewable energy that Hive has adhered to since its listing as the world’s first publicly traded crypto-miner.”

Mining Company Holds 2,374 Bitcoin, Hive Joins a Slew of Firms Acquiring Intel Chips
Hive says that further details about the 100 MW facility will be announced in the future. Last year, Hive purchased a great deal of mining rigs from Canaan and in mid-October it expanded its data center campus in New Brunswick, Canada, with 40 MW of capacity. The same month, Hive acquired another 6,500 mining rigs from Canaan. Hive holds a balance of 2,374 bitcoin (BTC) as of February 28, 2022, and the company produced 244.4 BTC last month.
Moreover, Hive joins firms like Griid, Argo Blockchain, and Jack Dorsey’s Block (formerly Square) that have plans to acquire Intel’s ASIC chips. Intel revealed its new mining chips in mid-February and claimed the circuits will deliver 1,000x better performance than current competitors. Later, at the International Solid-State Circuits Conference (ISSCC) last month, Intel gave the event attendees a sneak peak at the ‘Bonanza Mine BMZ1’ blockchain accelerator mining chip and the ‘Bonanza Mine BMZ2’ as well.
What do you think about Hive’s plans to purchase Intel ASIC chips and the 100 MW facility in Texas with Compute North? Let us know what you think about this subject in the comments section below.

Categories
crypto

Pakistan’s Central Bank Sees Few Good Use Cases for Crypto Citing ‘a Lot of Misuses’ Worldwide

The central bank of Pakistan does not see many good use cases for crypto. However, the regulator cites “a lot of misuses” of cryptocurrency around the world, “including human rights violations, trafficking of people, money laundering, and many other things.”
Pakistani Central Bank Governor’s Stance on Crypto
The governor of the State Bank of Pakistan (SBP), Reza Baqir, talked about cryptocurrency during a panel discussion at the 13th Karachi Litera­ture Festival Sunday, Dawn newspaper reported.
Asserting that crypto lacks good use cases, the Pakistani central bank governor remarked:
When we look at the value proposition offered by crypto right now, the use cases that have been brought forward have just been exchanges.
The SBP governor proceeded to talk about the risks associated with cryptocurrencies.
Noting that “There is no way that the regulator or a law enforcement agency has visibility on who is doing transactions and for what purpose,” he opined:
Therefore, around the world there is a lot of misuses [of cryptocurrency], including human rights violations, trafficking of people, money laundering, and many other things.
Baqir also mentioned that the financial system in Pakistan has been used for money laundering and the financing of terrorism.
Nonetheless, the central bank governor explained that people want the regulator to allow bitcoin to be used, traded, and sent abroad.
He explained: “Every new thing has some benefits and some risks … It’s a policymaker’s job to make an assessment of the balance … in particular, make a judgement whether the benefits outweigh the risks with regards to the use of cryptocurrencies in Pakistan.” However, Baqir said last month that the potential risks of cryptocurrency far outweigh its benefits.

Meanwhile, he believes that distributed ledger or blockchain technology is “absolutely useful” and has the potential to solve many problems the world is facing right now.
The Pakistani government is currently evaluating whether to regulate cryptocurrency. A high-level interministerial committee constituted to make recommendations on whether cryptocurrency should be permitted under Pakistani law is against regulating cryptocurrency, however. The committee submitted its report to the Sindh High Court in January recommending a complete ban on crypto.
However, Pakistan’s minister for science and technology, Shibli Faraz, said in the same month that the government intends to “regularize” cryptocurrency in the country. He confirmed that the finance ministry, the State Bank of Pakistan, and the Securities and Exchange Commission of Pakistan are working on a plan.
What do you think about the SBP governor’s comments? Let us know in the comments section below.

Categories
crypto

AADollar – A New Generation Stablecoin For a Dynamic Market

The global cryptocurrency market is gradually moving away from the pluralist model of multi asset interaction and is starting to become more centric, revolving around an established and highly capitalized hub of recognized and applicable cryptocurrencies. With the utility token having proven its inability to act as a store of value, the coins and stablecoins are turning into the hub of investment and capital activity on the market. The likes of Bitcoin, Ethereum and USDT Tether are currently holding the position of said hub, with the multiple other altcoins acting as the spokes, revolving around the mainstays, affected by their price movements and developments.

Stablecoins have received considerable traction over the last couple of years in light of the many events that have shaken the foundation of the global economy and undermined the reliability of many global fiat currencies. With fiat devaluing and losing its qualities as a store of value against the background of mounting geopolitical tension and rising inflation, the stablecoin is taking on the mantle of a haven for storing accumulated value and savings in an immutable fashion on the blockchain.

However, the stablecoin market is considerably overheated. The main problem is the presence of a single dominating stablecoin – Tether, which is a systematic risk for the entire industry. Statistics indicate that Tether constitutes 65% of daily trading volumes of all stable tokens, standing at over $155 billion. The world’s largest stablecoin is not very stable, as a Small Taiwanese bank that is fully controlled by Tether Ltd Caribbean Bank is used to store all of its US Dollar reserves. The legal tribulations around Tether go much deeper, as Tether paid an $18 million fine to settle NYAG cryptocurrency cover-up charges. It has also been accused of having no direct connection between the custodian bank and its infrastructure and distributed ledger. With its fully manual issuance of tokens, the system is completely dependent on the reliability of its staff. The latter factor casts serious risks of fraud on Tether, as any misuse on the [art of the administrators would potentially result in the additional issuance or burning of the coins.

The inherent weakness of a legal status of Tether extends to the lack of rigorous KYC/AML procedures leading to a systematic risk for the stablecoin and its custodian, including risk of reserve funds blocking. So far Tether has defaulted on many promises to deliver transparent audits, as publicly available data suggests that the token is 49% backed by unspecified commercial papers.

Such risks compile and undermine both the integrity of Tether as a reliable stablecoin and result in significant risks for those relying on it as a secure store of value for their savings and as a trading instrument.

The solution lies in the creation of a truly reliable and credibly backed stablecoin that would be able to offer its holders an undisputed degree of transparency and integrity as a digital currency retaining value on the basis of the inherent qualities of the blockchain. The AAD project is creating such a solution in the form of digital cash — stable and liquid as fiat money, boundless and immutable as cryptocurrency – the world’s first digital cash built right.

The AAD project intends to maintain all of its reserves in a Swiss bank with Cryptographic Proof of Reserve backing. The merger of real-world finance and decentralization means that the coins may not be issued, or burned without the approving cryptographic signatures of AAD and the repository Bank, thus confirming that the account balance has been changed. All AAD coins will be maintained at a 1 to 1 ratio in US Dollars deposited on the reserve account and coins in circulation.

The underlying Cryptographic Proof of Intent algorithm means that the coins are issued or retired only in case of the corresponding intent registered by a customer on a public blockchain. The 1 to 1 intent-issue amount and intent-burn amount ratio is cryptographically verified, meaning that issuance without reserve and retirement without withdrawal is impossible due to cryptographic restrictions.

Application of mandatory KYC and AML procedures will add a much-needed layer of security and legality to the AAD stablecoin, as all new clients will be obliged to pass it prior to the purchase or sale of any tokens. A progressive legal framework set in Zug, Switzerland, supervised by Swiss authorities will complement the basis of the AAD infrastructure built on the Ethereum blockchain and its scaling to other major DeFi platforms.

As the world’s first digital cash built right, AAD will launch a strategic initiative aimed at achieving listing on the most prominent global exchanges, thus becoming available for the broader crypto community. AAD will move towards becoming an enabling technology for payment systems, remittance payment solutions, e-commerce platforms and other value exchange systems.

Considering that the main users of Tether are exchanges, arbitrage traders and members of the crypto community, AAD intends to develop a solution that will cater to all layers of the decentralized market audience, thus providing them with a reliable and credible stablecoin. The project will ensure that all the fundamental problems of the stablecoin market are addressed, while rapidly gaining traction and broad adoption within both the crypto and fiat domains. By combining excellent technical expertise, partnership with a Swiss bank and full transparency on the basis of impeccable Swiss regulation, AAD intends to become the go-to stablecoin solution on the market.

The tokenomic model of the AAD project is based on the mechanism of generating revenue from commissions for each transaction carried out with the use of the AAD token. The commission is paid in AAD tokens at a fixed rate of 0.2% per transaction. The AAD project’s business development team will be fully focused on promoting the token as a means of payments in the e-commerce retail sector, while attracting active market traders who are currently largely exposed to Tether. With the annual turnover of stablecoins in 2021 on-chain standing at $2.5 trillion, AAD foresees that the introduction of its solution and its integration into such off-ramp systems of Visa and Mastercard as a means of payment will result in an immediately addressable market of around $20 trillion.

The AAD project development team also foresees considerable demand from groups that perform arbitrage trades between exchanges. The basis of AAD as a secure, transparent and liquid means of payment shall attract more retail users and new entrants into the decentralized assets market seeking reliable value storage instruments.

The ultimate goal of AAD is to become a means of exchange for payment systems, empowering developers from across the globe to build their payment solutions with AAD at its core.

There is immense verifiable demand for stablecoins, however, related projects currently operating on the market have provable design flaws, which have led to explicit technical and credibility issues, including investigations, legal actions, over issuance of coins, and others. A true stablecoin has to consist of a combination of unique blockchain characteristics, such as immutability, a lack of intermediaries, instant settlements, and fiat stability, while maintaining the functionality of a store value and a means of payment.

The AAD project has combined all the necessary elements to build a true stablecoin relying on a recognized legal framework, a competent team with extensive professional experience, a Swiss banking partner, and legal supervision. The given factors, and the existing market makeup give the AAD project the necessary bedrock to develop and scale in an aggressive fashion that will attract investor involvement and bootstrap user engagement.

LINK:

Site: https://aadollar.ch/

Twitter: https://twitter.com/aad_token
Telegram channel: https://t.me/aad_official
Telegram community: https://t.me/aadtoken_channel

 

Categories
crypto

The Ultimate Evolution of the Fantasy Role-Playing Game, The Wasted Lands, Get Listed on Kucoin

According to a report by wax, 75% of online gamers want to exchange virtual assets for a currency that they can use on other platforms and in real life.

In the past, players could only play online games for the fun of it; there was no way for them to convert that thrill to ‘earnings.’ The virtual world (that includes games) was utterly distant from the physical world.

Cryptocurrency has become a ‘game changer’ in recent years, creating an avenue for players to collect and trade the collectibles they’ve earned while playing games, and has ushered in a new era in the gaming industry widely referred to as GameFi. In this article, we would look at The Wasted Lands, a blockchain-based metaverse game set in the post-apocalyptic world,and how it intends to propel the GameFi industry with its recent listing on Kucoin amongst other things.

The Wasted Lands Gaming Metaverse

The Wasted Lands is a pioneer sci-fi game to integrate multiple exciting gaming elements into its role-playing gameplay within a post-apocalyptic metaverse, The Wasted-Verse. With distinctive gaming features revolving around its metaverse ecosystem such as Match 3 Puzzle RPG, Racing and Shelter Building game, The Wasted Lands is fully equipped to provide an engaging player experience.

The Wasted-verse’s avatar NFTs collection allows players to morph into their own unique game personas and start exploring this fantasy world, which further enhances their immersion in the game.

The Wasted Lands will be one of the first blockchain games to be listed on Apple App Store and Google Play Store. The game will be made available for download on these platforms starting from around mid-March.

$WAL, Native Token Of The Wasted Lands Gets Listed On Kucoin

The Wasted Lands announces its Kucoin listing after raising $3 million in Funding Rounds and reaching over $2 million in NFT Sales. Its gaming $WAL token is now available to trade on one of the world’s top cryptocurrency exchanges, KuCoin, as of 7 Mar 2022, 10:00 UTC.  KuCoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies. Launched in September 2017, KuCoin has grown to become one of the most popular crypto exchanges with over 10 million users active across 207 countries. The exchange houses over 600 digital assets and 1100+ trading pairs. Currently, the platform offers P2P fiat trading, staking, spot trading, lending, crypto derivatives and margin trading.

The launch of the $WAL token on Kucoin is an important step in The Wasted Lands’ effort to boost the game’s visibility among the GameFi community and Play-to-earn enthusiasts.

Alpha Testing Program

After a successful Alpha Testing with over 2,000 players, The Wasted Lands team has improved the game, creating a more seamless game play experience, all thanks to user contributions. To show the team’s gratitude and appreciation, a total prize worth of $60K was awarded to 1,000 of their valued contributors.  The Wasted Lands’ presence continues to resonate among major gaming guilds in the community, including YGGSEA, GGG, MGG, AGU, Avocado and Polkastarter Gaming, etc. The game is also getting positive reviews from various gamers from the West like BHS, Coin Muhn, Crypto Knowledge Tamil, Crypto Rank,… to the East like GTA, Crypto Ryan, AnhReview, Modern Mulan,… To date, more than 15,000 scholars have registered to play the game, while the trade volume warrior on the marketplace has surpassed 1,000 BNB.

Its first ever PvP season is expected to take place on March 15. Soon enough, players will be able to join the official version of the game on iOS, Android and Desktop with the chance to win a total prize of $500.000 from this first PvP season.

Being a highly anticipated and promising project, The Wasted Lands differs from other conventional games by its captivating world and story of the post-apocalypse coupled with the exciting and diverse gameplay. Through the partnership with Kucoin and their other trusted partners, The Wasted Lands is set to position itself as one of the leading metaverse games.

For more information on The Wasted Lands, visit

  • Website: https://thewastedlands.io
  • White-paper: https://thewastedlands.io/white-paper
  • Discord: https://discord.com/invite/thewastedlands
  • Twitter: https://twitter.com/thewastedlands
  • Telegram: https://t.me/TheWastedLands
Categories
crypto

Why Is Bitcoin So Volatile, Anyway? Fidelity Digital Assets Explains

Let Fidelity take the wheel and drive you through the wonderful world of volatility. Bitcoin critics wield one of the asset’s main characteristics as an unsolvable failure, but, is it? According to Fidelity, “bitcoin is fundamentally volatile.” That doesn’t deter it from fulfilling “its ultimate investment objective of preserving wealth over long time periods.” 

Related Reading | Fidelity Says What We’ve Been Thinking: Countries & Central Banks Will Buy BTC

The company said all of that in Fidelity ‘s latest edition of “The Research Round-Up.” In their much longer analysis, they use oil and gold as examples to explain the whole volatility process. We’re in the summarizing business, though. Here at NewsBTC, we will distill their article, state the main points, and briefly comment on them.

Fidelity Explains Bitcoin’s Fixed Supply

  • “Bitcoin is unique in that it is a good whose supply is completely inelastic to changes in price. In other words, supply does not (and cannot) change in response to price.”

There will only ever be 21 million bitcoin and that’s that. With other goods, there’s a cycle. “Going back to economic principles, we know that when demand increases for a good, in the short-term the price will rise. However, the higher price then incentivizes suppliers to produce more. More supply will then bring down the price.” This doesn’t happen in bitcoin. 

  • “With bitcoin, supply cannot change regardless of what price does. Therefore, any change in demand, short-term as well as long-term, will have to be reflected by changes in price.”

It’s only logical. The laws of supply and demand can only affect the price, and so they do. “There is no change in supply to dampen the effect of price moves, even over the longer-term.” Mix that with an ever-decreasing supply of new coins, due to the halvings, and you have a perfect recipe for what bitcoiners call “number go up technology.”

Fidelity summarizes the phenomenon with a quote from Parker Lewis: 

“Bitcoin is valuable because it has a fixed supply and it is also volatile for the same reason.”

Those two characteristics come in the same package. 

BTC price chart for 03/09/2022 on FX | Source: BTC/USD on TradingView.com
Bitcoin As A Store Of Value

  • “Something that has low volatility is not necessarily a good store of value in the long run, while something that has high volatility does not mean that it can’t be a good store of value in the long run.”

It’s easy to get scared by volatility. Investors, traders, and even true believers let their feeling get in the way and exit the market with every little bump in the road. However, there’s no one that has holded bitcoin for more than four years and is in the red. Literally no one. 

Related Reading | Bitcoin Volatility Drops To 15 Month Low; What This Could Mean

Let’s get an obvious example from Fidelity, “The U.S. dollar is not volatile but has also not been a good store of value in terms of purchasing power, while bitcoin is considered very volatile, but has been a much better store of value over the past ten and even five years.”

  • “Volatility is a byproduct of price discovery, and there is no other way for price discovery to happen in a free market.”

Even though bitcoin is 13 years old, it’s still going through a price discovery process. How much is bitcoin really worth? We won’t know for years, even decades. “This process of individuals all coming to adopt bitcoin in different ways and timeframes necessarily must produce volatility,” completes Fidelity. 

Fidelity Thinks Bitcoin’s Volatility Is Decreasing

  • “The limited historical evidence we do have so far appears to be showing volatility declining over the long-term.”

Bitcoin Volatility decreasing | Source: Fidelity

The graph clearly shows that volatility is slowly fading. This is only logical. Fidelity explains, “as gold went through a major price discovery process in the 70’s, which then resulted in amassing a larger base of investors, volatility naturally declined.” We’re still early, though. This is not financial advice, but, for now, you should learn how to ride volatility and use it in your favor.

Featured Image by Chris de Tempe on Unsplash | Charts by TradingView and Fidelity

Categories
crypto

The Nightly Mint: Daily NFT Recap

NFTs continue to stay a relatively cool market, but the Mint is here to keep you tuned in with a daily dose of NFTs. Each weekday, we tune in to some of the biggest stories from the day around NFTs, and a fresh take to hopefully leave you with something to chew on.

Let’s dive in.

The Nightly Mint
BAYC Donates $1M To Ukraine

Bored Ape Yacht Club announced a 389 ETH donation, just over $1M, to the official Ukrainian ETH wallet address. Bored Apes have seen a substantial decline in volume on the thirty day to sixty day comparison, but nonetheless still second in volume according to CryptoSlam, and still coming close to $100M in volume during that time.

Latest Mint: Solana NFTs On Adobe Behance

The latest mint is courtesy of Adobe and it’s product, Behance, which will now integrate Solana NFTs. NFTs on Ethereum were supported as of October last year, and other Adobe products have added NFT integration through a variety of means – such as Photoshop’s ‘Prepare As NFT’ feature.

Related Reading | Why Fantom Fell 22% Following Key Personnel Exit

Avalanche is the latest protocol to show major investment in the NFT space. | Source: AVAX-USD on TradingView.com
Avalanche’s Latest Financial Commitment Includes NFTs

Avalanche is committing over a quarter of a billion dollars through it’s latest ‘Multiverse’ incentive fund towards GameFi, DeFi, and NFT subnets. Subnets are a major pillar of Avalanche’s unique value-add, and one that the protocol continues to emphasize through it’s partnerships and dealings. Subnets allow Avalanche to avoid a critical Ethereum pitfall in streamlining consensus validation.

The ‘Minty Fresh’ Take

As premier auction houses list NFTs and more projects continue to evolve and grow, it’s important to keep it all in perspective. A lot of times it’s just jpegs – don’t take it too serious.

I just acquired one of the most important NFTs in my collection but also what is an iconic pieces of crypto art per my research. Excited to write about it, but for now just letting it all sink in… this is what I joined the space for and it feels really special. ✨

— Farokh.eth (🎙, 🎙) (@farokh) March 8, 2022

Related Reading | Bitcoin Slips Back To $38K, Further Downside Incoming?

Featured image from Pexels, Charts from TradingView.com
The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.

Categories
crypto

TA: Ethereum Breaks Barrier, A Strengthening Case for More Upsides

Ethereum started a decent increase above the $2,600 resistance against the US Dollar. ETH price is gaining pace and could even rally above the $2,720 zone.

  • Ethereum formed a base above $2,500 and started a fresh increase above $2,600.
  • The price is now trading above $2,600 and the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $2,580 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could accelerate higher above the $2,720 and $2,750 levels in the near term.

Ethereum Price Gains Pace

Ethereum remained well bid above the $2,450 level. ETH stared a decent increase and formed a base above the $2,500 level. There was a break above the $2,550 resistance zone and $2,580.

There was also a break above a major bearish trend line with resistance near $2,580 on the hourly chart of ETH/USD. Ether price settled above the $2,600 level and the 100 hourly simple moving average. The bulls pushed the price above $2,700 and a high is formed near $2,728.

The price is now consolidating gains near the $2,700 level. It is also trading well above the 23.6% Fib retracement level of the upward move from the $2,445 swing low to $2,728 high.

Source: ETHUSD on TradingView.com

On the upside, an initial resistance is near the $2,725 zone. The first major resistance is seen near the $2,750 level. The next major resistance might be near the $2,800 level, above which the price could accelerate higher. In the stated case, the price might rise towards the $2,880 level.

Fresh Decline in ETH?

If ethereum fails to continue higher above the $2,725 level, it could a downside correction. An initial support on the downside is near the $2,660 level.

The next major support is near the $2,640 level and the 100 hourly simple moving average. The main support is now forming near the $2,580 level. It is near the 50% Fib retracement level of the upward move from the $2,445 swing low to $2,728 high. Any more losses might call for a move towards the $2,500 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 60 level.

Major Support Level – $2,580

Major Resistance Level – $2,725