Category Archives: Bitcoin
Can Bitcoin rally in December? | Tune in now to The Market Report w/ Gareth Soloway – Cointelegraph
Join Cointelegraph host and analyst Benton Yaun alongside resident market experts Jordan Finneseth and Marcel Pechman as they break down the latest news in the markets this week. Heres what to expect in this weeks markets news breakdown:
After the market news update, the hosts chat with special guest Gareth Soloway about the current Bitcoin market cycle, inflation and how the S&P 500 would affect cryptocurrencies in the event it crashes.
Using insights from Cointelegraph Markets Pro, a platform for crypto traders who want to stay one step ahead of the market, the Cointelegraph experts identify two altcoins that stood out this week: Shiba Inu (SHIB) and Terras LUNA.
Finally, Cointelegraph Markets analyst Pechman discusses why regulatory uncertainty might have caused Bitcoins latest correction. Both United States Secretary Janet Yellen and Federal Reserve Chair Jerome Powell have expressed the need to urgently create a regulatory framework, and on Nov. 12, the SEC rejected VanEcks spot Bitcoin exchange-traded fund proposal. Is there any hope for regulatory clarity in the next six months?
Do you have a question about a coin or topic not covered here? Dont worry! Join the YouTube chat room and write your questions there. The person with the most interesting comment or question will be given a free month of Cointelegraph Markets Pro, worth $100!
The Market Report streams live every Thursday at 12:00 pm ET (5:00 pm UTC), so be sure to head on over to Cointelegraphs YouTube page and smash that like and subscribe button for all our future videos and updates.
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Can Bitcoin rally in December? | Tune in now to The Market Report w/ Gareth Soloway - Cointelegraph
The Invisible Incentives Of Bitcoin – Bitcoin Magazine
What incentives does Bitcoin offer? Money accumulation, or is there any greater purpose and incentive for miners securing the network? Mining is a most important process of the Bitcoin network, yet relatively few actually understand it.
I recently had the pleasure of speaking with Marty Bent, the laid-back Philadelphian with a penchant for Bitcoin mining and founder of Tales From The Crypt podcast. We talked about my journey and how I came about writing my book From Bars To Bitcoin, a coming-of-age story in which prison ushered Bitcoin into my life for the better. I did not need a halfway house when I came home from incarceration because Bitcoin gave me the necessary skills to reintegrate into society at a pace only a book could highlight. During the podcast, a revelation hit me on the real reason behind Bitcoins incentives; you know, the tangible things that keep plebs and investors up at night.
What incentives does fiat money give society that may sway so many members of society to push morality to the side, even to the extent that they may even commit a crime to obtain it? Looking at the staggering numbers of incarceration in America, its easy to see that this happens with regularity. Crime pays, and it delivers in fiat at greater levels than bitcoin. The media may uphold bitcoins few cases of cybercrime and its shadowy super-coder founder as something that threatens the security of the reserve currency. That truth is that crimes committed with bitcoin are few and far between. Bitcoin, in my opinion, gives a more peaceful, inclusive, and better return of honest money as an incentive than anything man has ever seen before.
The initial idea ran through my mind at an earlier date while reading Mastering Bitcoin but conversing with Marty brought renewed feelings on the topic. Mining is one of those many Bitcoin incentives. To the misinformed, mining may seem like an energy-dependent money grab. A well-run series of S9 miners toiling at mathematical problems hashing away for a solution seems to result from acquiring Bitcoin with a high price tag. Even my granddaddy tried his hand at mining by buying an old AntMiner, to no avail. Thats how powerful Bitcoin is; no matter what, if you are attached to Bitcoin, if it goes up, you go up with it. That is why Bitcoin is the only thing I hold.
For the record, I am not some hardcore Bitcoin miner. I am merely posing a question to the Bitcoin community about their incentives to acquire. What is the real motivation for mining Bitcoin? That one question can quickly peel back many other layers of hidden incentives. What I mean by hidden is that a lot of people believe these incentives solely revolve around money. The overall price of Bitcoin goes up, then people get overly excited; thats what messes up newbies during the orange-pill process because they have no idea what mining entails. At the surface level, it is hard to understand that mining bitcoin keeps the network decentralized, and it is way bigger than just earning bitcoin as a monetary reward. It is also about creating a new financial structure on the Earth that treats all fairly, as equals, which cannot be manipulated to the benefit of the few at the top. Bitcoin is sound money. Bitcoin saves the world while you tweet, while you surf the internet, and so many are not paying attention. Here is how.
Mining is a complex topic at the base level, but mining secures the network and it assures the automated mathematical issuance of new bitcoin. For example, in 2021, every 10 minutes, 6.25 new bitcoin are added to the worldwide ledger and placed into a certain block. What does that look like every day? Thats 900 new bitcoin. The issuance of bitcoin and everything around that issuance encompasses that hard cap of 21 million, demanding that a certain fixed amount of bitcoin comes out every day on the path to that total of 21 million. That structures predictability is the base layer as to why bitcoin has a 200% compound annual growth for over a decade.
Mining acts as a decentralized mint for bitcoin. When miners add a new block to the blockchain, a set number of unique bitcoin is rewarded. They are also rewarded with fees from transactions, which serves as another powerful financial incentive. How do we compare that to something in the real world? Within fiat history, there has never been a form of money issuance that relied solely on following mathematical rules. Previously, money issuance was based simply on political policies, whims, and even just human emotion. We have our most significant example, with COVID-19. 20% of U.S. dollars in existence were printed in 2020 alone to save the economy or, better yet, to save Wall Street. Even the Federal Reserve Chair Jerome Powel has lost faith in the M2, saying, Right now, M2 [money supply] does not really have important implications. It is something we have to unlearn. This should raise some eyebrows.
However, while governments worldwide increased their money printing, the Bitcoin network still kept mining the same consistent amount it was programmed to do, which helped to stabilize the world. That decentralized set issuance of mining, coupled with the built-in halving concept, is a trustable incentive and the real reason why you mine bitcoin. In the face of a pandemic, bitcoins issuance amount was cut in half and still served as a valuable store of wealth, when the fiat system did not. A halving of the amount of new bitcoin issued occurs every 210,000 blocks (about every four years). Lowering that number at a steady pace is the genius of Satoshi. Keeping the network on an issued schedule of scarcity increases the value of the coin over time, ensuring that demand exceeds supply
Another invisible incentive is that a lot of manipulation is impossible due to the fact that you cant add or decrease the block size. You cant alter the amount of bitcoin supply being created. This brings about an incentive for you to continuously hold on to it. It upholds the de-inflationary nature of bitcoin. Even the HODL method, for example, may just be the greatest invisible incentive in the Bitcoin world of all time. What is the incentive for HODLing? A lot of people believe HODLing is about increasing your fiat value, and keeping bitcoin off of the exchanges, and YES this is very important.
However, HODLing requires holding your bitcoin for a long time after converting your fiat dollars into it, trusting that the exponential increase in bitcoins value is also a fixed fact of life. It creates a recipe for destroying the fiat system; however, so many believe it is only for making money. Bitcoins actual design is to empower the people because the people in control of the money cant go against their own nature, so they keep printing money. When people used to ask, Can Bitcoin end the banks? I used to think it couldnt, but the longer you HODL, the more you strengthen Bitcoin, and that answer begins to lean more towards a definite YES. Satoshi wrote Bitcoins core code to be impregnable and aligned from top to bottom. So the more fiat dollars siphoned out the system into Bitcoin, the weaker centralized control becomes, and most people are doing this without being aware they are doing so.
In El Salvador for example, the citizens are still spending U.S. dollars, but during the recent price strike, they are slowly starting to realize the common-sense value of HODLing as the value of any bitcoin they own increases. You dont have to teach the value of saving with bitcoin; understanding bitcoin will do it for you. That time will come when you start to notice your fiat money is not working for you, and the whole monetary system is tainted with corruption. Thats when those incentives of Bitcoin take hold and are always at work. You are upholding the network you are participating in, and by doing that, you are actively increasing the role and importance of bitcoin in the world, and thereby disrupting the system of old.
This is a guest post by BitcoinVegan and Dawdu Amantanah. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
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The Invisible Incentives Of Bitcoin - Bitcoin Magazine
The future is Bitcoin according to South Park creators – Cointelegraph
South Park, the animated TV series that often tackles topical issues with a comedic twist, showed Bitcoin being used as a mainstream means of payment in the not too distant future.
In the Post COVID episode of its 24th season which aired Thursday, South Park depicted one of the shows protagonists, Stan Marsh, paying for a stay in a cheap motel using Bitcoin (BTC) roughly 40 years from now, when the pandemic is jokingly about to end for good. The fictional Super 12 Motel Plus in a future where nearly all brand names have plus and maxx included only accepts Bitcoin and other cryptocurrency, with the show having Marsh pay using a plastic card with the BTC logo and a QR code.
Its the future weve all decided centralized banking is rigged so we trust more in fly-by-night Ponzi schemes, said the motel clerk.
Many in the crypto space know South Park for its criticism of the United States governments and banks response following the 2008 financial crisis, popularized by the meme aaaand... its gone referring to Marsh losing money immediately after depositing it in a bank. Among the other future predictions in the recent episode are autonomous vehicles, holographic digital assistants and stand-up comedy becoming a shadow of itself amid woke culture.
Though referencing cryptocurrency and blockchain in mainstream media is somewhat commonplace now, this wasnt always the case. The first TV series to feature BTC was The Good Wife in January 2012, but others have gone on to use the emerging technology and financial tool for both comedy and drama. This year, James Spaders character in The Blacklist claimed to know the true identity of Satoshi, and The Simpsons showed the BTC price moving to infinity on an animated stock ticker feed.
Related: Reality show is casting crypto users locked out of their wallets
Bitcoin's appearance on the popular animated series comes as the price of the crypto asset has stayed mostly under $60,000 for more than a week. According to data from Cointelegraph Markets Pro, the BTC price is $59,237 at the time of publication, having fallen more than 14% since reaching an all-time high of $69,000 on Nov. 10.
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The future is Bitcoin according to South Park creators - Cointelegraph
Pokmon GO Creator’s AR Platform Is Now Being Used To Hunt Bitcoin, Not Pocket Monsters – Nintendo Life
Image: Fold
Niantic, the studio being the smartphone hit Pokmon GO, has lent its AR platform to payments company Fold to create a new kind of 'catch 'em all' adventure but this time, players are hunting for the cryptocurrency Bitcoin rather than monsters.
Payments company Fold has leveraged Niantic's AR platform to create an in-app experience where users can earn Bitcoin by exploring a virtual environment based on their immediate surroundings, described by the firm as a "real-world metaverse".
Users will be able to discover and collect Bitcoin and other prizes around them using the app. Every 10 minutes, a new block containing a fresh prize is dropped in the vicinity of a player. By claiming the block, the user earns 'Satoshis', the smallest unit of Bitcoin, alongside other rewards. However, if you collect a 's**tcoins' or 'Poison Pills', you could end up losing all of the Bitcoin you've collected.
Here's how Fold describes the experience on its blog it's even cheeky enough to use a gif of Mario collecting coins in Super Mario World:
The AR experience acts as a natural extension of the Fold App which already gives you the ability to earn bitcoin going about your daily life: buying coffee, going shopping, paying bills, and even paying your taxes. While the experience is open to anyone, Fold Cardholders can collect extra spins and rewards boosts to increase their rewards on the Fold Card.
The complete experience will drop next year and will enable individuals to find, trade, and hide bitcoin and other rewards throughout the world IRL, and will also give merchants the ability to engage the community with incentives and offers. It all started with someone saying lets make PokemonGo but for bitcoin and ended with lets build a new way to exchange and share bitcoin with others.
Fold CEO Will Reeves also had this to say:
This is the easiest, most fun way to get your first piece of Bitcoin. Anyone can use our [Fold] app to earn Bitcoin and other rewards by exploring the world around them. For us, it's always been important to make participating in the Bitcoin economy easy for anyone, regardless of education or technical expertise.
What do you make of this venture? Let us know with a comment.
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Pokmon GO Creator's AR Platform Is Now Being Used To Hunt Bitcoin, Not Pocket Monsters - Nintendo Life
Stripe says it’s open to accepting crypto for payments, three years after ending bitcoin support – CNBC
Stripe isn't ruling out accepting cryptocurrency as a method of payment in the future, according to co-founder John Collison.
The online payments company ended support for bitcoin payments in 2018, citing the digital coin's notoriety for volatile price swings and a lack of efficiency in making everyday transactions.
"Crypto obviously means a lot of different things to a lot of different people," Collison said at a CNBC-moderated panel at the Fintech Abu Dhabi festival on Tuesday.
Collison said there were some aspects to crypto such as its use as a speculative investment that are "not that relevant to what we do at Stripe."
But, he added: "There have been a lot of developments of late with an eye to making cryptocurrencies better and, in particular, scalable and acceptable cost as a payment method."
Asked whether Stripe would start accepting crypto as a method of payment again, Collison said: "We don't yet, but I think it's not implausible that we would."
The company recently formed a team dedicated to exploring crypto and "Web3," a buzzword in tech that refers to a new, decentralized version of the internet.
The effort is being led by Guillaume Poncin, Stripe's head of engineering. Earlier this month, the company appointed Matt Huang, co-founder of crypto-focused venture capital firm Paradigm, to its board of directors.
Collison said there are a number of innovations emerging in digital assets that have potential, including solana a competitor to ethereum, the world's second-biggest digital currency to "Layer 2" systems like bitcoin's Lightning Network, which aim to speed up transactions and process them at a lower cost.
Founded in 2009, Stripe has quickly become the largest privately-held fintech company in the U.S. The company was last valued at $95 billion and counts the likes of Baillie Gifford, Sequoia Capital and Andreessen Horowitz as investors.
The company, which processes payments for the likes of Google, Amazon and Uber, has expanded into a number of other areas in finance lately, including loans and tax management.
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Stripe says it's open to accepting crypto for payments, three years after ending bitcoin support - CNBC
Bitcoin Thanksgiving Gift, Why BTC Heads For Fresh Rally – NewsBTC
Bitcoin has been trading on the green side this Thanksgiving morning with a 4.1% profit in the 24-hour chart. Approaching a critical resistance level, BTCs price stands at $59,042 and could see more appreciation in the short if it manages to flip $60,000 to support.
Bitcoin has been rangebound for the past week with low volatility for the most part as the price was rejected close to $60,000 on Monday. According to QCP Capital, an institutional investor is most likely responsible for the price action and suppression of any serious momentum on BTCs price rally attempts.
Related Reading |TA: Bitcoin Breaking This Confluence Resistance Could Spark Recovery
This institutional investor has been increasing selling pressure when Bitcoin attempts to reclaim previous highs, the firm noted. QCP Capital suspects this player or players could be pushing BTCs price down to place bearish put options on Bitcoin and Ethereum.
In that sense, the general sentiment in the market has taken a dive as NewsBTC reported. Most operators have gone into fear mode but could enter extreme fear if the selling pressure causes Bitcoin to break further down. QCP Capital added:
We are betting that the market will consolidate instead of breaking lower. So we are taking the opportunity to short vols in BTC and ETH as well as take profit on our downside risk reversal position and flip to a topside skew.
As of press time, Bitcoins current rally into $60,000 seems fairly strong with support in the $55,000 to $58,500 area. According to the In/Out of the Money Around Price metric, over 3 million addresses bought 2 million BTC on these levels.
Jarvis Labs analyst Ben Lilly recently tried to answer the question that seems to be in every trader and investors mouth: has the Bitcoin bull-run ended? As seen below, BTCs price bullish momentum is valid as long as it stays above $43,000.
In support of the bullish thesis, Jarvis Labs records heavy institutional demand for Bitcoin. Historically when BTC sees these levels of an accumulation from large investors, future price action experiences a strong push to the upside.
Conversely, when BTC sees low demand from whales, it suggests a cycle has been reached. Ben Lilly added on the whale accumulation pattern for the past week:
() whales are starting to step in. And this change will likely be reflected on the 30-day chart in a couple weeks.
However, Jarvis Labs has been warning about the behavior in the Bitcoin derivatives sector during November. Funding rates across this sector have stayed highly positive and although they have decreased with the recent trend to the downside, they still suggest the market is overheated.
Related Reading | TA: Bitcoin Continues To Struggle, Why BTC Could Dive Below $55K
Therefore, another retest of the lows and a full market reset seems to still be in the cards. This could be the final sacrifice for Bitcoin to reach a new all-time high in 2021.
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Bitcoin Thanksgiving Gift, Why BTC Heads For Fresh Rally - NewsBTC
JPMorgan Lists Ethereum As A Better Investment Than Bitcoin – NewsBTC
Ethereum has proved itself be to a force to be reckoned with and big bank JPMorgan agrees. When it comes to performance, Ethereum has outperformed rival Bitcoin, although the latter remains the most valuable cryptocurrency in the space. However, if history is any indication to go by, then Bitcoin may not be in the lead for much longer.
Analysts at JPMorgan recently released a report on cryptocurrencies and their potential. Although the note acknowledged the ability of Bitcoin, it also puts Ethereum ahead of the leading cryptocurrency in coming years. The report based its argument on the utility of both assets. While Bitcoin is good for its monetary policy, Ethereum has proven to be even better.
Related Reading |Why This Crypto Billionaire Abandoned Ethereum
The JPMorgan note outlined how Etheruem could prove to be the better bet compared to Bitcoin in the long wrong. Bitcoin may still be the most valuable cryptocurrency, but with climbing interest rates, Ethereum could end up faring better.
The rise in bond yields and the eventual normalization of monetary policy is putting downward pressure on bitcoin as a form of digital gold, the same way higher real yields have been putting downward pressure on traditional gold, said the analysts.
This is because as interest and inflation rates rise, more investors will flock towards decentralized finance (DeFi) protocols, which offer more attractive interest rates than traditional finance. Given that majority of these DeFi protocols are built on the Ethereum blockchain, it will only drive more adoption in the digital asset, providing it more room to grow than Bitcoin.
In the note, JPMorgan also points to the budding NFT, gaming, and stable coins portion of the market. This makes it a safer bet than Bitcoin when it comes to investing in cryptocurrencies, which are infamous for their volatility. As interest rates rise, its underlying utility should be able to help it maintain its value, the note reads.
With Ethereum deriving its value from its applications, ranging from DeFi to gaming to NFTs and stablecoins, it appears less susceptible than bitcoin to higher real yields.
Analysts at world-leading bank JPMorgan also put forward other reasons that Ethereum could end up being a better investment option than Bitcoin. One of these was the fact that the altcoin has consistently outperformed Bitcoin year-over-year. The numbers for 2021 alone show a wide margin when both digital assets are compared side by side in terms of performance.
Related Reading |Reddit User Calls Out KuCoin Over $50,000 Stuck On Exchange
Ethereum has grown more than 500% in the year compared to Bitcoins 96%. If the asset maintains this rate, then it could very well surpass the market cap of Bitcoin in the next five years while returning higher gains for its investors.
In five years, Ethereum has grown to about half the total market cap of Bitcoin. Sitting at over half a trillion dollars, the digital asset surpassed giants like Visa, MasterCard, and JPMorgan to claim the 15th spot as the most valuable asset in the world.
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JPMorgan Lists Ethereum As A Better Investment Than Bitcoin - NewsBTC
Buy the Dip: Bitcoin Whales Accumulated Over $2.36 Billion in $BTC After Price Drop – CryptoGlobe
Bitcoin whales, defined as addresses or clusters of addresses holding between 100 and 10,000 $BTC, have reportedly accumulated a whopping $2.36 billion worth of the flagship cryptocurrency after its price started dropping, data shows.
According to cryptocurrency analytics firm Santiment, bitcoin whales accumulated about 40,000 BTC when bitcoins price dropped to a $56,000 low last week. Considering bitcoin is now trading at around $59,000 per coin, whales have accumulated well over $2.3 billion of the cryptocurrency.
According to Santiment, whales took advantage of a price drip driven by bearish sentiment to keep on accumulating more BTC. As Daily Hodl reports, the cryptocurrency analytics firm has revealed in a recent report that BTCs supply keeps moving off of exchanges, which is seen as a positive sign for the market.
Investors moving their BTC off of trading platforms implies they are looking to custody their own funds and arent looking to sell in the short term. This reduces selling pressure on the market and lowers the risk of a continued sell-off.
Santiment has also added that social sentiment for the flagship cryptocurrency is at its most bearish level in seven weeks. The firms weighed social sentiment tracker analyzes commentary on specific cryptocurrencies to determine whether investors are bearish or bullish. Per the firm, prices tend to top when sentiment is too high, and bottom out when it gets too bearish. It wrote that the FUD [Fear, Uncertainty, and Doubt] is a good sign of capitulation.
Looking at funding rates on Binance, Santiment noted that when BTC was trading above $60,000 these were in positive territory, which is indicative of trader over-confidence. Often, it added, prices overcorrect when this happens. Now, the firm wrote, things look far more neutral.
As CryptoGlobe reported, bitcoins third-largest whale address has added a total of 6,665 BTC to its stash over the last 11 days when the price of the flagship cryptocurrency started dropping. Blockchaindatashows the whale currently has 113,863.56 BTC in its wallet.
DISCLAIMERThe views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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Buy the Dip: Bitcoin Whales Accumulated Over $2.36 Billion in $BTC After Price Drop - CryptoGlobe
How The Latest Macroeconomic News Is Impacting Bitcoin – Bitcoin Magazine
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After a week off due to illness, were back with a new episode of Bitcoin Magazines Fed Watch'' podcast. In this one, Christian Keroles and I sat down to talk about the mysterious competitive world of central banking. Topics include Federal Reserve Chairman Jerome Powells reappointment and, funnily enough, what it means for the European Central Bank (ECB). There is an epic pivot in loyalties happening right now, as the Fed takes to heart its role as the U.S. central bank and distances itself from a responsibility to Europe.
We started the episode with our first trivia winner. I wanted people to answer the question: If central bank balance sheets matter, why are the ECB and Bank of Japans (BOJ) inflation rates lower and balance sheets higher relative to GDP than the U.S.s? Mitch (@wittyusername30) had the best answer. Congratulations. To paraphrase: Central banks dont print money, they swap inert reserves for useful collateral. This has a deflationary pressure on the economy.
Powell was renominated by President Biden as the Fed chairman, winning out over his primary competition, Lael Brainard. Several reasons were cited, like the fact that Powell's path through Senate confirmation is much easier while Lael might meet with a split vote along partisan lines in a 50/50 Senate. Also, officials said Powell was being rewarded with another term for successfully shepherding the economy through the 2020 COVID-19 recession.
I view this appointment as having a deeper meaning:
One, Weve talked at length on this show about Powells refusal to go along with the central bank digital currency (CBDC) hype. Other central banks are pushing hard for CBDCs, and Powell continuously splashes cold water on that idea. This symbolizes a break with globalist interests in favor of American banking interests.
Two, Powell has faced rising progressive opposition from Congress. Crazies, like Senator Elizabeth Warren, have attacked him because he is not dovish enough and not buying into the Feds role in climate policy. His reappointment is a repudiation of sorts against progressives and their toxic ESG initiatives.
Three, Lael is the more globalist-friendly choice. Powell symbolizes a break with globalists to a more America-centric policy.
Next, we jumped right into ECB news. This week, it released a new regulatory framework for electronic payments:
The Eurosystem will use the new framework to oversee companies enabling or supporting the use of payment cards, credit transfers, direct debits, e-money transfers and digital payment tokens, including electronic wallets. The PISA framework will also cover crypto-asset-related services, such as the acceptance of crypto-assets by merchants within a card payment scheme and the option to send, receive or pay with crypto-assets via an electronic wallet.
ECB Press Release
This stands in stark contrast to the U.S., where the White House and Treasury tried to carve out a bitcoin exception in the recent infrastructure bill, which ironically was thwarted by altcoiners wanting to protect scams that are decentralized in name only (DINO).
The ECB is scared that the euro will lose market share in the years to come, whittling away its monetary sovereignty. It wants to block competition from dollar stablecoins and bitcoin, while at the same time provide the market with a digital euro a digital euro the market hasnt seen fit to provide itself, by the way.
We went into depth on the many headwinds facing Europe right now. Of course, it has inflation, but it also is facing the Fed turning its back; supply chain disruptions and trade volumes shrinking; a rising case count of COVID-19, despite the authoritarians forcing shots under duress, new lockdowns and restrictions in many countries; and an escalating energy crisis that places Europe in the palm of Russia, right at the time Russia is massing troops on the border of Ukraine. Its a perfect storm that is resulting in capital fleeing Europe for the dollar and hopefully for bitcoin.
This week, the dollar broke out decisively to new highs, signaling building stress in the global financial system. It looks like the collateral shortage that weve talked about for the last six to 12 months is turning rapidly into a dollar shortage.
The collateral shortage is coming.
Bitcoin is a neutral asset that is ready and willing to welcome capital fleeing Europe and China. It also offers a place for capital to flee to, that wont unbalance debt elsewhere in the economy.
Investors know that a rising dollar hurts the global economy. Most debts are denominated in dollars, as the dollar rises it becomes much harder to service those debts. The world does better when the dollar is weakening, but is pulled into recession as the dollar strengthens. Bitcoin offers an alternative escape for that value, that might be able to short circuit the back and forth with the dollar.
For this thesis to be correct, we should see the dollar and bitcoin rising together, and that is exactly what weve seen this year; a very tight correlation. This is not a cause and effect, they are both benefiting from the same market conditions.
As you can see in the chart below, the dollar rose first in June 2021, followed a month later by bitcoin. Then again in September 2021, followed a month later by bitcoin. Most recently, the dollar began surging in the first days of November, if bitcoin is to follow in the correlation, it should begin to rally again right at the beginning of December.
The dollar's recent strength indicates an upcoming price rally for bitcoin.
The first European Debt Crisis (EDC1) directly followed the Great Financial Crisis, and peaked in 2010 to 2012. It is looking more likely that the current situation could culminate in a European Debt Crisis 2.0.
It was during the peak of EDC1 that bitcoin first established itself and rallied in the bitcoin bubble of 2011 to $30. Could we see a repeat 30x rally this time? Probably not that much, but a massive rally is in the cards in the coming year.
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How The Latest Macroeconomic News Is Impacting Bitcoin - Bitcoin Magazine
Macro Guru Raoul Pal Says Millennials Migrating to Bitcoin From Gold and Traditional Finance Heres Why – The Daily Hodl
Macro guru Raoul Pal is saying that millennial investors are opting to invest in Bitcoin (BTC) instead of traditional assets like gold.
In a new interview with Parallax Digital CEO Robert Breedlove, Pal says that the traditional answer to currency debasement was gold, but that is no longer the case with a new generation of investors.
The traditional answer was gold. It hasnt done great. Its done okay. Its done its job, but the problem is, the millennials cant generate wealth if gold defends your wealth [theres] nothing to defend. So, it becomes incredibly difficult to generate wealth. Bitcoin comes along and changes the equation.
The Real Vision CEO says that investors will gradually see the value of crypto and migrate to this new asset class.
It takes a long time for people to see it. This adoption takes a while, but people realize here is a technological construct that has ubiquitous global scarcity and, therefore, if we all perceive it to have value, then it shall be so. So, the migration begins and I think of it as a migration to this parallel financial system thats being built in front of your eyes.
He adds that the same thing happens with decentralized finance (DeFi) many do not yet fully understand the concept, but the space is bound to grow.
The rise of DeFi was the other huge thing that happened. People havent got their heads around what this means yet, but it is gigantic because, basically, people dont trust financial intermediaries any longer.
Pal clarifies, though, that peoples mistrust of financial intermediaries is not these institutions fault.
They want to blame somebody, so [they] blame the banks. It wasnt the banks fault. They just did the rational thing.
The result of the CNBC Millionaire Survey released in June shows that nearly half of millennials with at least $1 million in investable assets allocate at least a quarter of their wealth in crypto. In contrast, only 10% of older millionaires have more than a tenth of their wealth in digital assets.
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Macro Guru Raoul Pal Says Millennials Migrating to Bitcoin From Gold and Traditional Finance Heres Why - The Daily Hodl