Stimulus checks helped millions of Americans make ends meet earlier this year, but Democrats and Republicans have struggled to agree on terms for a second stimulus checkand there may not be one at all.

When the first stimulus checks were sent out in April, some appeared to invest it in the cryptocurrency bitcoin, a risky gamble, with a Twitter account set up to track how the value of the $1,200 stimulus check would have changed.

Now, with the debate around the possibility of a second stimulus check raging on, a prominent bitcoin analyst has examined what would happen if people invested their stimulus checks into bitcoin en massewarning it could be a "disaster."

Some have suggested people should invest future stimulus checks in bitcoin, but if many people did ... [+] the bitcoin network might not be able to cope.

"The bottom line is that bitcoin is simply not ready for something like this," Jason Deane, bitcoin writer and analyst for money advisory firm Quantum Economics wrote via Medium in what he described as a "theoretical study" into what would happen if millions of Americans decided to put future stimulus checks into bitcoin.

"The network is the most secure in the world, but it is nowhere near ready to handle the transaction level that would be required to operate properly on a global scale, and too few people currently use and work with it."

There are currently millions of people using bitcoin, as well as other cryptocurrencies, around the world, with Blockchain.com reporting 45 million users at the beginning of 2020up 41% year-on-year, but Deane warned that if there was a sudden influx of new users on a very large scale, it would cause the bitcoin network to buckle.

"The net result of a mass buying of bitcoin at a rate faster than the underlying infrastructure is growing and developing could actually be a disaster not just for economies, but for bitcoin and all cryptocurrencies," Deane wrote.

Deane does, however, remain confident "global adoption" of bitcoin in coming years "is a real possibility," predicting bitcoin will eventually "be an excellent store of value and global currency."

The bitcoin price has bounced around $10,000 per bitcoin over recent days.

Meanwhile, some bitcoin and cryptocurrency exchanges did report a surge of people making deposits worth exactly $1,200 in April this year, just as the first round of stimulus checks were sent out.

The bitcoin price has climbed so far this year, up around 40% since the beginning of 2020 but has recently fallen back, moving lower along with the U.S. stock market last week.

If a second stimulus check is approved by the Federal government, it's thought it could cause an uptick in the bitcoin price.

"A second stimulus check might increase the [bitcoin] price," Brandon Mintz, chief executive of bitcoin ATM network Bitcoin Depot, said via email.

"With shifting attitudes towards traditional banking amidst the global pandemic, and increasing bitcoin value, we could see more people than ever putting their new stimulus check into crypto. Take a look at how much it has increased since most people got their last stimulus check. I think a lot of people see this and hope to maximize their funds while the price is still increasing."

More:
If A Second Stimulus Check Is Coming, Using It To Buy Bitcoin Could Be A Disaster - Forbes

Bitcoins price action is undoubtedly impressive this year, but theres more to the story with the largest digital currency, and investors considering exposure to the asset should educate themselves on bitcoin mechanics.

Bitcoin has sometimes been referred to as digital gold with supporters suggesting it could be a good safe-haven investment. However, bitcoin has tended to trade closer to equity markets in recent times and has been plagued by massive volatility, which has either made investors fortunes or crushed them.

Instead of relying on centralized intermediaries to enforce its rules, Bitcoin relies on a distributed network of computers, writes ARK cryptocurrency analyst Yassine Elmandjra. This architecture enables it not only to function outside the purview of legacy systems but also to challenge them. While the full ramifications of Bitcoins creation are not well understood, we believe that it will contribute more dramatically and profoundly to the evolution of monetary and financial systems than any other breakthrough in history.

Bitcoin, the largest digital currency by market capitalization, has its share of critics and supporters. Integral to the case of expanded acceptance and use of the digital asset is conveying to investors that bitcoin has a store of value properties, whether it be by measuring intrinsic or monetary value. Moreover, bitcoin represents freedom at a time when so many governments are actively increasing capital controls.

In the long run, institutions risk making decisions favoring those in control at the expense of customers, users, or citizens, notes Elmandjra. During the last 10 to 15 years, countries have been increasing capital controls rather than decreasing them. Since 2007, the share of countries increasing capital controls has soared 300% to 15%, while the share of countries reducing them has dropped 60% to 5%.

Bitcoins historical volatility trends, which have ebbed somewhat, have often prevented some market observers from calling the digital asset a safe-haven on par with gold, but the coronavirus headlines could be prompting some investors to revisit that thesis. Theres no denying there are some exponential growth estimates associated with bitcoin. Plus, the digital asset is all the more relevant today with the world awash in low and negative interest rates.

In the face of unpredictable changes in monetary policy, individuals typically have to grapple with the fallout. If a central bank mismanages its countrys money supply, fiat money can lose its purchasing power to inflation, if not hyperinflation, according to ARK.

ETFs with some bitcoin exposure, be it direct or indirect, including the ARK Fintech Innovation ETF (NYSEARCA: ARKF) and the ARK Web x.0 ETF (NYSEArca: ARKW).

For more alternative investing ideas, visit our Alternatives Channel.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

Excerpt from:
Bitcoin Is Taking Its Place on the Global Monetary Stage - ETF Trends

E-commerce tech company, Hustle Mobile, is set to unveil its multi-vendor market place App, Hustle, for business owners in the sales and services sectors.

Hustle, which is available for Android and iOS users, will help businesses increase their earnings.

According to Managing Partner, Hustle Mobile, David Samuel, Hustle efficiently and seamlessly connect customers through the Hustle App with sellers within geo-range through the Hustle Sellers and with partner riders through the Hustle Drivers App.

With a focus on providing easy delivery of essential products and services, the on-demand Multi-Vendor Marketplace app is useful for a range of activities including shopping, logistics and car hire, among others.

Hustle Mobile App ensures ease of buying and delivery by having fewer processes and affordable delivery option, all in one. Our map functionality allows customers orders to be delivered to their customers/clients in real-time, Samuel added.

He disclosed users are set for a good time with a dedicated team of professionals overseeing operations to ensure seamless transactions.

We have a team of experienced professionals who have demonstrated comprehensive process know-how, a proven implementation record and a team with international exposure led by an experienced entrepreneur to ensure that Hustle can respond to customers needs and create value for clients and partners.

The uniquely designed Hustle App incorporates text, embedded graphics, photo, video, audio and code that displays content and enhances user interaction.

Apart from being user friendly and customisable for different uses, Hustles upload time of between two to five seconds using a connection speed of 1GB is very fast.

Businesses are going digital for both sales and services and our design enables users to choose from a small selection of screens to visit, provide clear navigation and labels for the screens where navigation tabs take you and tell visitors where they currently are and how to get back, Samuel further explained.

The mobile platform also includes a live functionality operated live between customers and riders, and riders and sellers.

Ahead of its official unveiling, Samuel advised business owners to take advantage by signing up promptly.

Hustlers, if you have a business sign up on hustle mobile.ng. We are giving the first 50 businesses free sign up, low commission rates and free delivery.

Other features of the Hustle App include search engine optimisation, online payment integration, business intelligence and reporting, and a monthly uptime of 99.9%, thereby drastically reducing downtime.

* INVEST IN YOUR HUSTLE *

Hustlers, if you have a business sign up on hustlemobile.ng. We are giving the first 50 businesses free sign up, low commission rates and free delivery.

*Term and conditions apply

*Connect with us*

Website:Www.hustlemobile.ng

For Customers https://play.google.com/store/apps/details?id=com.ng.rush

For Sellers https://play.google.com/store/apps/details?id=com.ng.rushsellers

Instagram:https://instagram.com/hustlemobileng?igshid=1bq2vt06mvxg

Read more:
Bitcoin - The Future of Digital Currencies - Nairametrics

Bitcoin has declined sharply this week, losing over 5% in under 24 hours and causing traders to nervously eye the psychological $10,000 per bitcoin level.

The bitcoin price lost $1,000 in a matter of hours, falling under $11,000 per bitcoin on Thursday morning with the U.S. stock market posting its biggest sell-off since June by the close of play as stocks retreated from all-time highs, led lower by tech giants.

Bitcoin and cryptocurrency market watchers, who have enjoyed a prolonged bull market since the March coronavirus crash, are now focused on the $10,000 line, with a bitcoin futures trading gap set in late July still open just below it.

The bitcoin price lost almost $1,000 per bitcoin in under 24 hours, sparking fears among bitcoin and ... [+] cryptocurrency traders of a wider sell-off.

Bitcoin's 2020 bull market, which has seen the bitcoin price surge from around $4,000 to $12,000, could be brought to an abrupt end if the price moves lower than $10,000 per bitcoin.

"Moving forward, it is important to keep an eye on the last zone of defense between $10,000 and $10,500," Joe DiPasquale, the chief executive of San Francisco-based bitcoin and crypto hedge fund BitBull Capital, said via email. "As long as this range is respected, bitcoin is unlikely to see a prolonged bearish spell."

The open trading gap, set on July 27, saw bitcoin futures on the Chicago Mercantile Exchange (CME) open higher after the weekend close, something some analysts think causes a disconnect with the underlying market. Technical analysis shows that 90% of such trading gaps are eventually closed, with the price sooner-or-later retracing back to the gap.

Elsewhere, bitcoin and cryptocurrency exchange data suggests there could still be "sell pressure to work through," according to Philip Gradwell, chief economist at blockchain intelligence firm Chainalysis.

"Bitcoin inflows to exchanges were 92,000 yesterday, highest in 37 days, as people rushed to sell at near $12,000 prices of September 1," Gradwell said via Twitter. "Trade intensity, how many times the inflowing bitcoin was traded, is low, suggesting there were not many buyers to match the sellers."

Meanwhile, bitcoin miners, those who secure the cryptocurrency's network in return for bitcoin rewards, "are moving unusually large amounts of bitcoin," according to analysts at data provider CryptoQuant, suggesting miners are looking to cash out their bitcoin rewards.

"The big level that everyone is watching is $10,000," Mati Greenspan, the founder of Quantum Economics, wrote in his popular daily newsletter, pointing to a U.S. dollar comeback as the reason for the recent move lower.

"The crypto market has broken a few psychological levels. When we broke above that level in late July, it was with such force that we never really got to test it as support. Well, this may just be our chance," Greenspan wrote, adding, "if things get really bad we may just get another chance to buy bitcoin below $10,000."

The bitcoin price has lost almost 6% over the last 24-hour trading period, with the bitcoin market ... [+] capitalization falling under $200 billion.

However, many in the bitcoin and cryptocurrency community remain upbeat despite the recent bitcoin price fall.

"$10,000 is the new $1,000," Charles Hayter, chief executive of bitcoin and cryptocurrency analytics platform CryptoCompare, said via email, adding: "2020 has seen leaps and bounds in terms of infrastructure, regulation and resilience across the ecosystem as it has evolved over the last three years."

The current bitcoin market is "similar to the first half of 2017," according to Hayter, who thinks "the perpetual dilution of fiat currencies is being challenged by bitcoins hard code cap" of 21 million bitcoin tokens.

Bitcoin, along with the wider cryptocurrency market and global stock markets, has been boosted this year by massive stimulus measures and unprecedented money printing that's carried out by the world's central banks, led by the U.S. Federal Reserve, in order to offset the economic damage wrought by the coronavirus pandemic.

"For most of 2020, short-term bitcoin price moves have been highly correlated to U.S. stocks," Cory Klippsten, the chief executive of bitcoin buying app Swan Bitcoin, said via Telegram, adding he expects "any dips under $10,000 to be bought up voraciously."

"Bitcoin has proven to be uncorrelated over the longer term. At a minimum it is a hedge against fiat inflation, but it also functions as a call option on a new global monetary system."

Here is the original post:
If Bitcoin Crashes Below $10,000 Its All OverHeres Why - Forbes

Youre readingFirst Mover, CoinDesks daily markets newsletter. Assembled by the CoinDesk Markets Team and edited by Bradley Keoun, First Mover starts your day with the most up-to-date sentiment around crypto markets, which of course never close, putting in context every wild swing in bitcoin and more. We follow the money so you dont have to. You cansubscribe here.

Price Point

Bitcoin was down early Thursday to about $11,250, extending Wednesdays sell-off and falling to its lowest price since early August.[Update: At press time prices had slumped further to around $10,850.]

The cryptocurrency tumbled 4.4% on Wednesday, the most in a month, leading to a heightened level of margin calls and position liquidations. Prices appeared to fall in sync withgold and silver prices, which tumbled as the dollar reboundedfollowing a recent slide.

Failure to hold at the $12,000 level has turned the milksour, the crypto trading firm Diginex wrote in a note to clients. Leveraged longs have been forced to drink it.

Market Moves

With stocks soaring to new records after a decade-long climb, traders in traditional markets are asking how much higher theycango in the midst of a global pandemic, openly discussing whether the market is justpropped up by government stimulus checks and Federal Reserve money injections.

The conversation around bitcoin is very different. The assumption among many digital-asset investors is the cryptocurrencys price will definitely, inevitably go higher, much higher. Its only a matter of time.

Cameron and Tyler Winklevoss, who run the cryptocurrency exchange Gemini, wrote last week thatbitcoin prices could reach $500,000, in an extensive analysis that somehow relates to adatabase of 600,000 asteroids.

Nobody really knows if any of that will pan out, of course. Whats clear is a lot of investors have bought bitcoin because they see it as a deep out-of-the-money option (with no expiration date) on financial Armageddon, severe currency debasement or at the very least an inflation rate well above the Federal Reserves 2% annual target. According toCoinDesk Researchs monthly review published this week, bitcoins price appears to be rising whenever the dollar falls in foreign-exchange markets.

Bitcoin costs $11,200 now, and it might be possible to lose it all, but it also might be worth $500,000 at some point. Thats the general gambit anyway.

Invented just 11 years ago, bitcoin is exceedingly difficult to value partly because it has such a short track record. Similar to gold and many other commodities, the cryptocurrency offers no yield,so bond math wont work. Bitcoin has no earnings or dividend, so stock analysis wont work either.

Philip Bonello, director of research for the money manager Grayscale (owned by CoinDesk parent Digital Currency Group), says his favorite chart for thinking about bitcoins price trajectory might be one showing holders versus speculators. A holder in this case is defined as a bitcoin that has not moved for one to three years, while a speculator coin has moved in the past 90 days.

An increase in holders is considered likely bullish, while an increase in speculators is likely bearish, according to arecent Grayscale report. The idea is that its positive for the market if more investorsappear to be holding the cryptocurrency for the long term, versus those who merely appear to be in it for a quick volatility ride.

Right now, the chart shows holders increasing and speculators decreasing. According to Grayscale, its a similar structure to that of early 2016, just before bitcoin went on a bull run toward its all-time high around $20,000.

Its reassuring, Bonello said Wednesday in a phone interview, that the sentiment of the investor base is growing day by day. The holders appear to have been unfazed by the volatility witnessed in March, when the spread of the coronavirus quickly sent bitcoin prices swooning from above $9,000 to below $5,000. Its probably unlikely that theyre going to sell right now at $11,000, Bonello said.

All of this might mean nothing for the future price of bitcoin. It just shows that a growing number of investors are holding onto their tokens in a bet that the cryptocurrencys price will or even that it might eventually go up. By a lot.

Bitcoin Watch

Token Watch

Ether (ETH):Open positions in Deribits ether options hitrecord high above $500 million.

Bitcoin Cash (BCH):Proposed changes by development team couldreduce rewards for miners, splitting community support.

OKB (OKB):OKEx CEO says foundation burned 3.8 million of its utility tokens, just over 1% of total supply, deepening commitment to deflation at time when central banks around the world are ceaselessly printing money.

Theta Network (THETA):Decentralized streaming network says DeFi could be used to pay content providers who arejust starting out, with few followers.

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First Mover: As Bitcoin Falls for Second Day, Long-Term Holders Probably Won't Care - CoinDesk - CoinDesk