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While Speculators Believe Bitcoin’s Third-Largest Wallet Is a Mystery Whale, Onchain Data Suggests It’s an Exchange Featured Bitcoin News – Bitcoin…

The price of bitcoin has dipped below the $60K zone, a number of people have been talking about the third-largest bitcoin address called 1P5ZED which has accumulated thousands of bitcoin during the last few days. Nobody knows who the owner of the wallet is but it holds more than 111,359 bitcoin, as its been steadily accruing bitcoin since the wallets first transaction on February 5, 2019. While some assume the address is a mega bitcoin whale, onchain data indicates that the wallet could be tied to an exchange.

Bitcoins fiat value has been volatile and its one of those times where everyone is looking for answers to why BTC has slid in value. For instance, on November 10, bitcoin (BTC) slid from a $69K all-time high (ATH) and five days later, it was coasting along in the mid-$65K to $66K per unit range. Since the crypto assets ATH, bitcoin is down 16% in value and slid under the $60K zone. Of course, the volatility sparked whale watchers and people talking about bitcoin whale transactions happening in real-time.

Bitcoin whales are individuals or organizations with large sums of BTC and the whale can also be of various sizes. Depending on who you ask, BTC whales can be individuals or organizations that own 1,000, 10,000, 50,000, and 100,000+ bitcoin. An entity that holds more than 100,000 BTC would be considered a mega-whale, and there are only three bitcoin addresses in existence with 100,000 BTC or more. The top five largest BTC wallets hold anywhere between 84K to 288K BTC, and three of those wallets are marked or tagged as exchanges.

Lately, crypto publications and a slew of individuals on social media and forums, have been speculating about the actions of the third-largest bitcoin wallet. The conversation has been trending and many people believe that a large whale bought the dip, while the price of BTC slipped. Bitcoin.com News has seen a few large whale sightings as well amid BTC hitting fresh new price highs nine days ago. Although the whales our news team discovered stemmed from mined bitcoin block rewards from over a decade ago.

The third-largest bitcoin (BTC) address was first created on February 5, 2019, when it received a small fraction of BTC. Seven days later, onchain data shows the wallet obtained 1,119 BTC on February 12, 2019. The wallet address 1P5ZED doesnt look like an individual bitcoin holder and the transactions 1P5ZED has processed look more like exchange activity from a crypto trading platform. As mentioned above, three out of the top five BTC addresses are flagged as being associated with cold wallets belonging to Binance, Bitfinex, and Okex.

1P5ZED has all the tell-tale signs of being associated with an exchange and its not known for sure, but its been flagged on a few occasions. The address has received a lot of BTC during the last two years and occasionally it spends BTC as well. 1P5ZEDs transactions have very little privacy according to statistics from blockchair.com, as the block explorers privacy tool indicates most of its transactions are done with a very low preference for privacy. Most of 1P5ZEDs transactions have a critical to low privacy rating in terms of the level of traceability. The transactions suffer from vulnerabilities such as matched addresses and inputs and outputs that are often similar.

On the block explorer oxt.me, the address 1P5ZED has notes associated with it, which explain that the address could be tied to an exchange. The first annotation on oxt.me about 1P5ZED says it was submitted by a person named TEJAS on November 22, 2020. The individual writes it could be Bittrex and also leaves a link in the annotation as well. The article linked references a 717 BTC transfer that was allegedly carried out between Bittrex and 1P5ZED.

The second annotation on the block explorer oxt.me was added by ERGOBTC on July 14, 2020. The note says the address source suggests Gemini or Coinbase. This led our investigation down to parsing 1P5ZEDs transactions during the last two months. Blockchain parsing data shows that 1P5ZED transacts quite a bit with the BTC wallet address known as 1FzWLk. While 1FzWLk transacts with 1P5ZED a lot, 1FzWLk is also flagged with a note on oxt.me about the address being associated with an exchange.

The 1FzWLk annotation was also submitted by ERGOBTC, on the same day the second annotation was applied to 1P5ZED. [1FzWLk] annotated as Okex by Whale Alerts. Though source and cluster spending suggest closer ties to Coinbase and Gemini, annotation details. While its not certain 1P5ZED (which acts like an exchange cold wallet) and 1FzWLk (which acts more like a hot wallet) belong to a trading platform, theres a lot more supporting evidence that shows 1P5ZED is likely owned by an exchange.

Do you think 1P5ZED is a random whale address or do you think it belongs to an exchange? Let us know what you think about this subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, oxt.me, bitinfocharts.com,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 this article.

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While Speculators Believe Bitcoin's Third-Largest Wallet Is a Mystery Whale, Onchain Data Suggests It's an Exchange Featured Bitcoin News - Bitcoin...

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Tesla And Elon Musk Devotee Cathie Wood Issued A Serious Bitcoin And Ethereum Fed WarningBut Held Her Huge $500,000 Price Prediction – Forbes

Bitcoin, ethereum and other major cryptocurrencies have swung wildly this weekbouncing around after a closely-watched bitcoin upgrade.

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The bitcoin price has rallied back toward $60,000 per bitcoin after crashing towards $55,000 earlier this week. Ethereum, the second-largest cryptocurrency by value, has meanwhile soared back toward its all-time highs.

Now, as traders and investors watch for news of who will be the next chair of the U.S. Federal Reserve, Ark Investment Management chief executive Cathie Wood has renewed her huge bitcoin price predictionbut warned over the increasing likelihood of the Fed raising interest rates.

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Cathie Wood, the chief executive of Ark Invest, is a long-time supporter of Tesla CEO Elon Musk as ... [+] has made a name for herself as a bitcoin, ethereum and crypto bullwith her bold bitcoin and etheruem price predictions making headlines.

"There has been a lot of fear," Wood said this week, speaking on a call with finance magazine Barron's. "It was partly behind the correction in May. There was a shiver associated with the end of quantitative easing and then ultimately raising."

The bitcoin price crashed in May this year following a huge rally, with the crash largely put down to China's latest bitcoin and crypto crackdown. The bitcoin price lost around 50% of its value in a matter of weeks in May but has since climbed back to a fresh all-time high of almost $70,000.

This week, analysts at JPMorgan reeled in their prediction of when the Fed will act to curtail inflation, now putting their rate hike prediction at September next year, bringing it forward from 2023. JPMorgan now expects the Fed to raise rates by 0.25% from the third quarter of next year and keep raising them by 25 basis points every quarter "at least until real rates are at zero," it was reported by Reuters.

"I don't think the Fed is going to do anything very quickly and this has been part of the wall of worry in the stock market as well and yet the stock market has continued to go up," said Wood, who's made a name for herself with big bets on bitcoin and Elon Musk's electric car company Tesla.

"You will have corrections for sure if the crypto market continues to scale as dramatically as it has recently, you'll have those fears grip the market from time to time as people simply take profits because the profits have been enormous in the past year."

However, despite raising concerns over short-term price volatility, Wood remains bullish on both bitcoin and ethereum.

"The reason we've used the $500,000 mark for a bitcoin price target is that if institutional investors move into bitcoin and allocate 5% of their portfolios to it, by our estimates bitcoin will go up by $500,000," said Wood. "We can tell this is happening by looking at on-chain analytics," referring to bitcoin's transactions being visible to anyone via its public blockchain.

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Bitcoin's huge price rally this year could mean investors look to take profits if they predict the ... [+] bitcoin price bull run could be coming to an end.

"We can see who's moving in and it looks like strong, institutional holders are moving in [to bitcoin]," she said, asking: "Why are they moving in? Because the correlation of returns among crypto, especially bitcoin, and other assetsstocks, bonds, currencies, commoditiesare very low. Studies tell us that if there's a low correlation of returns among assets, [buying] that asset with the low correlation, you will be raising returns and lowering risk over time."

Wood named a report by Cambridge Associates from 2019 that advised institutional investors to look into bitcoin and crypto.

"What we didn't expect when we did our own study on bitcoin, we didn't expect institutions, mainly corporations, to begin diversifying their cash on the balance sheet into bitcoin," said Wood. Tesla, run by bitcoin and crypto fan Elon Musk, has popularized the idea companies could add bitcoin to their balance sheet, following in the footsteps of business sofware company Microstrategy.

"[Company, corporate and institution interest] will be another source of demand going forward, especially if the Financial Accounting Standards Board changes the accounting rules and shifts away from treating bitcoin as an intangible asset," said Wood.

Wood said she's also still upbeat about etherum's prospects, after the ethereum price has leaped over the last year amid a surge of interest in blockchain-based decentralized finance (DeFi) and non-fungible tokens (NFTs)both largely built on top of ethereum's network.

"We've become just as bullish on [ethereum]," Wood said. "We see DeFi and NFTs taking off on the ethereum network."

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If bitcoin is ‘digital gold,’ it should be taxed like gold | TheHill – The Hill

As the U.S. government seeks ways to fund its swellingdebt anddeficits and seemingly ever increasing spending, a puzzling anomalyexists.Investorshave flocked to bitcoin and othercryptocurrencies yet receive a preferred tax rate on long-term profits as compared to gold bullion.This makes no sense if, as its advocates like to say, bitcoin is digital gold.

In 2019, the Internal Revenue Service (IRS) published Notice 2014-21, which characterizes cryptocurrencies as property for tax purposes. Meanwhile, gold bullion and equivalent exchange traded funds (ETFs) are treated as collectibles, like coins, gems, jewelry, art, stamps, toys, comic books, sports cards, etc.

Assets are generally not taxable until the point of sale, when an investor realizes a gain or loss. If either bitcoin or gold is bought and sold within a window of 12 months, the proceeds are taxed as ordinary income at a maximum of 28 percent.

But if bitcoin is held for more than 12 months, anygains from a sale are taxed at the preferred long-term capital gains rate, up to a maximum of 20 percent. Gold bullion held for more than 12 months, however, is still taxed up to a maximum of 28 percent.

The revenue implications of this tax preference for bitcoin are significant if not enormous.If the IRS treated bitcoin like gold,additional billions in tax revenue would result. The value of cryptocurrencies globally has mushroomed from nothing to more than$3 trillionin a decade. A portion of thesemassive gains by U.S. investors would be subject to some form of highertaxation.

Investors appetite for bitcoin and gold is likely to growas inflation heats up andprices rise. As increasing demand for bitcoin drives its value higher, the tax revenue implications of treating it differently than gold will also increase.

What is the rationale for the IRS favoring bitcoin?

If gold and bitcoin are, in effect, alternative currencies, then our current tax policy is irrational.It makes no more sense than a policy that taxes profits from trading euros more lightly than profits from trading yen.

For better or worse, the tax code is a bludgeon that the government uses to influence behavior. Usually, favorable tax treatment exists if the government deems something to be a public good and wants to favor it. For example, tax policy favors home ownership by having the home mortgage interest deduction.

Yet no sound reason exists for public policy through taxation to favor investment in bitcoin and cryptocurrencies, which tend to be speculative, over gold, whichis a time-tested measure and storehouse of value.

The rationalefor taxing gold and collectibles at a higher ratethancapital gains in property like bitcoin is that collectibles were mostly owned by the wealthy and that gains from those collectibles neither motivated innovation nor stimulated economic growth.This rationale no longer makes sense, if it ever did. Regardless, this reasoning wouldapply equally to bitcoin.

The wealthy use bitcoin and other cryptocurrencies as storehouses of value just as they do gold

Billionaires such as Elon MuskElon Reeve MuskHouse Democrats push vote on social spending plan to Friday McCarthy delays swift passage of spending plan with lengthy floor speech Musk planning first orbiting SpaceX test flight in January MORE and Mark CubanMark CubanMark Cuban adamant about vaccinations: 'If you work for me, I require my employees to be vaccinated' 'Shark Tank' investor Barbara Corcoran apologizes for comments about Whoopi Goldberg on 'The View' NFL player said he'll get vaccinated if he can earn a profit from it MORE openly espouse their holdings in cryptocurrencies. They are just some of those who have gone public with their support. Ten individuals hold roughly 6 percent of the entirety of bitcoin.These are known as whales.

So bitcoin and cryptocurrencies are storehouses of wealth for the rich, in a similar manner as gold.

Bitcoin and other cryptocurrencies are no more productive than gold

While technologically innovative, it is unclear whether bitcoin stimulates economic growth compared to other productive uses. In contrast, the (physical) mining industry as a whole, exclusive of oil and gas workers, employs 182,900 in the United States. These are real jobs with real economic benefits for society.

By one account, 4 percent of Americans have quit their jobs due to gains in cryptocurrencies. Good for them, but is this what we really want as a society?

Measuring the productive impact of bitcoin and other cryptocurrencies is less clear since they are mined, or digitally uncovered, by individuals. Of the 21 million bitcoins that exist, 18.7 million, or 89 percent, have already been mined, so even if there is an economic boost from bitcoin mining, it is in theory very temporal.

Tax policy should disfavor bitcoin and deflate the bubble before it bursts

Instead, tax policy shoulddisfavorbitcoin and other cryptocurrencies rather than favor them.

Gold is easier to monitor, tax and regulate, relatively speaking. It cannot go through a metal detector without detection or entirely avoid the possibility of a random bag or cargo inspection.

Bitcoin and other cryptocurrencies, which can be stored on a thumb drive, are more shadowy and elusive, and can be used to evade creditors and to enable criminal enterprises, such as those involved in sex trafficking and money laundering.While privacy advocates may laud this, it comes at a great cost.

Further, the multi-trillion-dollar cryptocurrency market is increasingly a systemic risk to the global economy. The larger it becomes, the more levered the rest of the global economy becomes to it. A sudden drop mirroring the meteoric rise of bitcoin would bring other assets down with it, including housing and the stock market, as crypto investors are forced to sell their non-crypto holdings to cover their losses.

Cryptocurrency minings energy and environmental impacts are also widespread. Digital mining is extremely energy intensive to the point of straining power grids, and therefore a source of environmental concern. Crypto mining operations, by one estimate, consume more energy than the entire country of Argentina. Tax policy should disfavor this.

Fixing the tax anomaly

Taxes on cryptocurrencies should be on par with gold and collectibles. Congress could accomplish this through legislation, or the IRS could simply issue a revised notice and ruling concerning the tax treatment of bitcoin and other cryptocurrencies.

As the old saying goes, If you want to be treated like a lady, act like one.In tax terms, this could be translated as: If bitcoin and other cryptocurrencies are to be valued as digital gold, they ought to be taxed like they are really gold.

Chad Bayse is an attorney and Navy judge advocate. He was a counselor to Attorney General Jeff SessionsJefferson (Jeff) Beauregard SessionsThe metaverse is coming society should be wary Trump criticizes Justice for restoring McCabe's benefits McCabe wins back full FBI pension after being fired under Trump MORE and attorney-advisor at the National Security Agency. He holds stock positions in Barrick Gold (GOLD), Kinross Gold (KGC) and Sibanye Stillwater (SBSW). He holds no bitcoin or other cryptocurrencies. The views expressed in this article are his own and not those of the Department of the Defense or the Navy.

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Bitcoin ETFs and Corporate Adoption Are 2 Key Crypto Catalysts to Watch – Motley Fool

Crypto-enthusiast Chris MacDonald discusses with The Motley Fool's Eric Bleeker why he believes Bitcoin(CRYPTO:BTC) ETFs and rising adoption of crypto by corporations could be key drivers to watch for over the longer-term, on this episode of "The Crypto Show" from Backstage Pass, recorded onNov. 10.

Eric Bleeker:Tim Cook said he has been interested in crypto for a while. He is personally invested in the space.

Now, here's what I think is going to be interesting. We had MicroStrategy (NASDAQ:MSTR) [laughs] reporting last night, I think they're up past 9,000 Bitcoin in their treasury. One of the bull cases for Bitcoin is if you have treasury adoption across large S&P companies, that's going to put a lot of positive pressure on the price of Bitcoin.

Tim Cook says, for now, his investment is personal. It's not something Apple (NASDAQ:AAPL) is considering on its balance sheet. But Chris, I would note. The fact that someone of Tim Cook's stature is saying that he personally owns this is just another positive sign of the luminaries of Silicon Valley, really being interested in crypto in general.

Chris MacDonald: Tim Cook is someone people listen to for sure. I think Apple is a company in general that people look at as to where they're putting their excess cash, because, whether it's Apple or Berkshire Hathaway (NYSE:BRK.A), companies with 100 billion plus in cash just sitting there -- where are they going to put it?

Most of the time, it's in marketable securities or short-term paper. But there are companies, whether it's Tesla (NASDAQ:TSLA), that is high-profile cases of corporations putting up their cash as Bitcoin and deciding to diversify a little bit into crypto to get those returns. I think that is an interesting thesis that there could be more adoption from the corporate side.

I think you're going to show some more data too on the venture capital space and how much capital is flowing into Bitcoin a little bit later on, so there'll be more on that. But I do think that in terms for Bitcoin or for Ethereum (CRYPTO:ETH), some of the bigger names, that's likely to continue to be a big driver.

Bleeker: Yeah. Here is one such driver. We look at inflows into Bitcoin, and the reality is right now, there's a lot of, we're, being something that is decentralized and deregulated by nature, there has been a lot of factors holding investment into things like Bitcoin back.

We saw recently the launch of the first Bitcoin ETF. This week though, there is another opportunity that many investors might mess because it's not from America, so you're not going to see a lot of coverage, which is Australian regulators at the end of October gave the green light to crypto exchange-traded funds, which could see Bitcoin and Ether ETFs trending on the country's stock markets in the coming months.

Now, two points I want to make on this and why I highlighted this among all of the potential news this week. Number 1, what we have right below. Australia might be a small country. I believe it's only a population of 25 million, but has the fifth biggest pool of pension assets in the world, which is an incredible figure.

Second, I know very well Australia has an investor nature. The Motley Fool has been in Australia for a long time. It's an incredibly successful market for us, in part because they have a lot of regulations driving people toward investing and making it an advantaged space.

Let's see a quote here what you're going to see is literally every month, another 50 million or 100 million will go into crypto ETFs in Australia. It doesn't take very long before it becomes a big number, and that's from a local, we'll just say, expert in the space. And as one reminder, when we're looking at a potential catalyst in the future, the US has only allowed Bitcoin futures ETFs to launch and that might sound like a trivial point, but it definitely means that there is a lot less capital flowing into the space and there could be.

The first Bitcoin futures ETF launched and got $550 million in funds on its first day of trading, which again, that's a number without context, but here's the context that matters. The ETF that has the largest amount inflows is a Vanguard ETF and what that added in that first day is about five-fold the level that Vanguard ETF, which I might note is larger, the scale of order of magnitude larger than even the 10th largest ETF. That launch was truly historic.

Chris, when you look at this, what are you thinking is reasonable to expect ETFs as a major catalyst for Bitcoin in 2022?

MacDonald: I think the US is obviously the biggest market in the world for ETFs. But when you look around the world and look at where other countries are headed, so Australia is a great example. I know Canada has launched a Bitcoin ETF that is actually tied to spot Bitcoin.

There are markets where these ETFs have been launched. There's a precedent for it. That suggests that regulators may not have that difficult of a time doing it in the US if it's already being done let's say in Canada or Australia, which are smaller markets by population but have quite a bit of capital like you mentioned. It's significant news in that these markets opening themselves up to the innovation that ETF companies are trying to provide. That just lends itself well for this happening in the US as well. It's an important thing to keep an eye on for sure.

Bleeker: Yeah, I think that's a great point, that precedent is going to make it easier for regulators.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Does the Bitcoin, Ethereum, Solana, and Cardano Price Crash Signal Another Crypto Winter? – Motley Fool

Prices of leading cryptocurrencies, including Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO:ETH), Solana (CRYPTO:SOL), and Cardano (CRYPTO:ADA) are down more than 10% in the last week and some have fallen 20% or more from their highs.

Unlike a company with a management team and financial figures, getting to the bottom of why crypto prices are moving sharply to the upside or downside takes a little more digging. Here are five reasons why crypto prices are moving lower -- and what to do about it.

Image source: Getty Images.

President Biden signed the $1 trillion bipartisan infrastructure bill into law on Monday. Certain crypto-related provisions offer some of the ways the Administration hopes to bolster tax revenue to fund both this bill and the proposed $1.75 trillion Build Back Better plan. The bill's loose definition of what exactly it means to be a crypto broker also encompasses small and large miners and other individuals or entities that aren't exactly brokers in the traditional sense.This issue circles back to regulatory fears of the U.S. government cracking down on the industry, making it less profitable and just more of a hassle overall.

There's also a provision related to transactions of $10,000 or more where social security numbers must be verified and the transaction reported to the government. This is yet another deterrent challenging decentralized finance and the crypto market overall.

Bitcoin Price data by YCharts

On Tuesday, news came in that China's National Development and Reform Commission is continuing its pursuit of a crypto crackdown. The lion's share of crypto mining currently comes from China, where crypto is seen as a direct threat to the country's fiat currency and economy. The second-largest economy's negative stance on crypto isn't exactly a positive sign for the market.

On Nov. 10, Bitcoin and Ethereum both reached all-time highs of $69,000 and over $4,800, respectively. The same day, the U.S. Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 6.2% over the last 12 months, representing the highest yearly increase in three decades. Since then, the dollar has been showing some strength thanks to higher-than-expected American spending across the retail sector. A stronger dollar means less inflation, which reduces the argument to invest in inflation-resistant asset classes.

Gold and high-yield dividend stocks have long been great ways to combat inflation. But cryptocurrency, especially Bitcoin, also has inflation-resistant characteristics due to a fixed maximum supply and independence from any one economy. If inflation starts heading in the other direction, then it would be a great thing for stocks and the U.S. economy, but a bad thing for crypto.

Riddled with speculation, the crypto market is also home to a lot of borrowed funds. Using margin magnifies potential gains and losses. Companies like BlockFi and Coinbase are willing to pay their users high interest rates for holding stablecoins, big-cap cryptos, and even altcoins on their platforms because they can lend out those same assets for a higher interest rate and make money on the spread. However, when prices crash and investors lack the equity to keep their accounts solvent, then the broker can forcibly issue a margin call. If the user can't add new funds into the account to bolster their equity, they may need to sell crypto at lower prices to raise cash to cover the deficit.

In the last 24 hours alone, $609 million were liquidated from over 147,600 traders, which is an average of over $4,100 per trader. That's a lot of money, gone in a hurry. Although the crypto market is still up a lot year-to-date, there have been many occurrences where liquidations caused steep sell-offs, including in the May crash which spilled into a June sell-off, and even the brief pullback in September. Simply put, the widespread use of debt by crypto traders adds fuel to the fire of a crash, but can also accelerate a boom on the upside.

The crypto market is no stranger to volatility. But few phrases evoke more fear than the threat of impending crypto winter.

Crypto winters are basically prolonged periods of stagnating or declining crypto prices. In the past, they've come one and a half to two years after a Bitcoin "halving." A Bitcoin halving is when the reward per block mined is cut in half. They occur roughly every four years. Given that the last halving was in May 2020, many predict that a crypto winter will set in sometime within the next six months.However, the reward per blocked mined is much less than it used to be, and nearly 90% of Bitcoin's supply is already in circulation. Given this backdrop, halvings should have less impact over time.

Quite honestly, it doesn't make sense for Bitcoin and other crypto prices to go through a fairly predictable cycle of bullish and bearish years as they did in the past. But because it happened the last few halvings, and there's widespread consensus that it could happen again, we could very well see a situation of "sell the rumor, buy the news."

The five reasons above all have one thing in common -- they are short-term challenges. The reality is that the long-term thesis for investing in top-tier cryptos like Bitcoin and Ethereum, or even high growth alternatives like Solana and Cardano, hasn't changed one bit.

Investing in cryptocurrencies requires a great deal of patience and risk tolerance. So far, the reward has been absolutely worth it. And given the rise of decentralized finance and more exciting projects in the crypto space, there's every reason to believe that crypto remains a great long-term investment even if we are approaching another crypto winter.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Dont think anybody can say Bitcoin is a joke now: Morgan Housel – Economic Times

MUMBAI: Renowned author and investor Morgan Housel has said that no one can call Bitcoin, the largest cryptocurrency in the world, a joke anymore.

Speaking at a virtual event hosted by Motilal Oswal Asset Management earlier this week, Housel said that he himself may have thought of Bitcoin as a joke five years ago but does not think so anymore.

So many of the smartest people are devoting their life to making this work, Housel said.

The father of all cryptocurrencies has seen a tremendous rise in adoption across the world over the past 18 months as institutional investors joined retail investors in seeing value in the digital currency. Several global hedge funds, pension funds and companies like MicroStrategy and Tesla have taken exposure to the cryptocurrency since the beginning of the COVID-19 pandemic.

While detractors of the cryptocurrency are many, several big names in the investment world such as Ray Dalio, Paul Tudor Jones and others have vouched for the cryptocurrencys place in the investment world.

Bitcoin today is seen as a store of value, a hedge against rapidly rising inflation and a substitute for gold even as its true followers see it as the future of money. Based on blockchain technology and cryptography, Bitcoin is a peer-to-peer cash transfer system that does away with the need for a third-party to validate a transaction.

Five years ago, I probably would have laughed at Bitcoin, but today I wont bet against it, Housel said. He, however, warned that the cryptocurrency could still destroy investor wealth as large draw downs are part and parcel of investing in Bitcoin.

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Sports Illustrated Awards Sweepstakes Sponsored by FTX to Give Away 1 Bitcoin Bitcoin News – Bitcoin News

The annual Sports Illustrated (SI) Awards have just revealed the line-up for the firms 2021 awards show that will broadcast live from the Seminole Hard Rock Hotel and Casino in Hollywood, Florida. This year, fans will be able to win a whole bitcoin from FTX as the crypto exchange has partnered with the SI Awards ultimate sports sweepstakes.

The American sports magazine owned by Authentic Brands Group, Sports Illustrated, has been a very popular magazine since its inception in 1954. Since the day SI was created, for 67 years the company has presented the Sportsman of the Year award annually. This year, the SI Awards will be hosted at the Seminole Hard Rock Hotel and Casino in Florida on Tuesday, December 7 at 8:00 p.m. (EST).

The 2021 SI Awards will also feature a sweepstakes with rewards provided by the crypto exchange FTX. Fans will have the opportunity to win a single bitcoin (BTC), tickets to the award show, hotel and airfare accommodations, and backstage passes to meet and greet with a surprise athlete. FTX has been very involved in the sports industry during the last year and sponsoring the SI Awards comes as no surprise.

FTX recently partnered with the MLB legend Shohei Ohtani, Tom Brady and Bradys supermodel wife Gisele Bndchen. The firm is an official partner of the MLB and has also acquired the naming rights to the NBA Miami Heats arena and the professional esports organization TSM. Other prominent crypto companies are also diving deep into the world of sports as Crypto.com signed a massive deal with the MMA company UFC. Crypto.com also inked a 20-year deal for the naming rights to the Staples Center, home of the Los Angeles Lakers.

FTX details in an announcement sent to Bitcoin.com News that the firm is proud to present the most prestigious award of the evening, Sportsperson of the Year. FTX further added that honoring this years winner as an athlete who best represents the spirit and ideals of sportsmanship, character, and performance. Guests that attend the event will also receive an exclusive Sports Illustrated Awards NFT through FTX US NFT Marketplace to commemorate the event.

In addition to the sweepstakes, the SI Awards will also be hosted by DJ Khaled and Cari Champion. The event will also showcase music performances by 2Chainz and DJ Irie. Other SI Awards attendees that will be in Florida will include JuJu Smith-Schuster, Lamelo Ball, Logan Paul, Rob Gronkowski, Suni Lee, Tyler Herro, Udonis Haslem, Billie Jean King, Brooks Nader, Camille Kostek, Chad Johnson, Candace Parker, DJ Carnage, Haley Kalil, and Jasmine Sanders.

The SI Awards are also produced by the firm Medium Rare, an agency dedicated to sports, celebrity, and brand-focused non-fungible token (NFT) assets. Medium Rare was behind the multi-million dollar NFT drops this year that featured the Golden State Warriors and Rob Gronkowski.

What do you think about the upcoming SI Awards and the sweepstakes that will be giving away a single bitcoin? Let us know what you think about this subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 this article.

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Shakeout Or Top? Here’s What Bitcoin SOPR Says About It – NewsBTC

Bitcoin price has now declined to $56k; does that mean a top is in? Or is this just a shakeout? Heres what the SOPR indicator says about it.

The BTC Spent Output Profit Ratio (or SOPR in short) is an on-chain indicator that estimates whether investors are selling at a profit or a loss.

When the metrics value is above one, it means coins that were moved during the period were sold, on an average, at a profit.

While SOPR values less than one imply the overall market has been selling at a loss during the particular timescale.

If the indicator starts trending up, it could mean holders are now realizing their profits and a correction could soon be coming.

On the other hand, a downwards trend implies sellers are moving their coins at a loss, and holders with profitable coins may be sitting on to them in hopes of further price appreciation.

Related Reading |Bitcoin MVRV Shows Top Isnt In Yet, BTC Still Has Room To Grow

An analyst has created a chart in a CryptoQuant post that highlights the trend in the value of the indictor over the past year and a half.

As you can see, above are the graphs for a few different versions of the indicator. The STH SOPR and LTH SOPR metrics show whether short-term and long-term holders, respectively, are taking profits or not.

The separation between the two types of holders is done on the basis of coin age. Coins that havent been moved since 155 days fall into the LTH category. Anything below that is in the STH territory.

Now, looking at the above chart, it seems like all the Bitcoin SOPR metrics had high values when the early 2021 top formed.

Related Reading |Inflation fears sparks Bitcoin rally before Taproot Crypto Roundup, Nov 15, 2021

But before the run started, there was a period where the STH SOPR shot up and the other indicators also increased in value. However, there was no top formation here as it was only a pre-bull run shakeout.

A trend similar to that seems to be visible in the current time period. The STH SOPR is high right now, but long-term holders dont seem to be realizing that much profits.

This fact makes the analyst believe that the latest decline in Bitcoins price was possibly just a shakeout, and not a top formation.

Here is a chart that shows the current trend in BTCs price:

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Shakeout Or Top? Here's What Bitcoin SOPR Says About It - NewsBTC

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Aussie brothers hit Nasdaq with plan to turn Bitcoin green – The Sydney Morning Herald

An oversupply situation could actually put upward pressure on power prices, so we come in, mop up all that surplus hydro and contribute to keeping power prices low for mums and dads, he says.

Its a noble goal for Iris, which is hoping to counteract some of Bitcoins massive environmental impact, given the currency uses as much power as the entirety of Thailand on an annual basis.

But the business has some way to go before it makes any notable dent in Bitcoins energy consumption, with its British Columbia centre boasting a mining output of around 0.7 exahashes, fuelling a tiny amount of the total Bitcoin network, which has a daily average hashrate of around 168 exahashes. Hashrates refer to the total combined computational power required to fuel the Bitcoin network, with an exahash being a quintillion hashes per second.

Iris pulled in $14 million in revenue for the three months to the end of September, but made an after-tax loss for the period of $678 million. On Thursday, the business debuted on the Nasdaq to a muted response, with shares falling 12.9 per cent from their $US28 listing price, a drop that coincided with an 12 per cent fall in the price of Bitcoin over the past week.

However, the successful IPO still values Iris at about $US1.6 billion and puts the Roberts brothers respective 10 per cent stakes at around $US160 million each. Its a valuation that would have likely been unattainable if the business listed locally, with Roberts saying the tech-heavy Nasdaq was the obvious choice, given the numerous other Bitcoin miners already listed on the exchange.

The Nasdaq seems to be the logical home, particularly given the size and scale of the business and the fact that our operations are predominantly in North America and Canada, he says.

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Other crypto companies in Australia have publicly criticised the Australian Securities Exchange for causing a brain drain of Australian cryptocurrency start-ups pursuing listings in other markets due to a bias against them by the local bourse. Roberts disagrees, saying this wasnt Iris experience.

I havent spoken to the ASX in six months or so, but they were always very constructive and very friendly in all their interactions. Theyve obviously got their own policies and objectives as a business, but we made the decision a little while ago to go offshore and havent looked back, Roberts says.

Right now, Iris operations are firmly focused on international markets across Canada, the US and parts of Asia where the business can find renewable energy providers to fuel its power-hungry plants.

Roberts says Iris sights are likely to stay international, despite a recent proposal from the government to give Australian Bitcoin miners a 10 per cent cut in the company tax rate if they use renewable energy for their operations.

Well certainly look at [that policy], absolutely, he says. Political and regulatory support is important for our business, but equally, we want to ensure when we enter a market, were solving problems and delivering positive externalities to that market.

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The Benefits and Challenges of Setting Up a Private Cloud | ITBE – IT Business Edge

There was a time when servers were just called servers, before the marketing branches of tech companies rebranded their servers as the public cloud, and long before IT fought back by rebranding their servers as the private cloud. Way back when, most of a businesss data used to be stored on-premises in servers managed by company IT professionals. As a greater share of that data moves into the public cloud, it begs the question: When is it better to just manage your own cloud? To determine that, lets first look at what a private cloud actually is.

Although early public usages of the term cloud computing are often sourced to Googles Eric Schmidt, the National Institute of Standards and Technology (NIST) in 2011 defined a private cloud as cloud infrastructure provisioned for exclusive use by a single organization comprising multiple consumers (e.g. business units). In other words, a private cloud doesnt even have to be on company premises or managed by that company to be considered private, so long as it is exclusively used by members of that company. On a public cloud, your data is private and protected, but it is hosted in a shared location amongst other clients. In a private cloud, your data is hosted on hardware typically owned and operated by a cloud provider, but the infrastructure is exclusive to your company.

And who better to determine the companys needs than the company itself? By leveraging a private cloud, these companies can customize their servers, improve performance, and possibly reduce costsat least on paper anyway. But early private clouds struggled to meet these goals, and more mature market offerings pulled data away, whereas public cloud providers offered laser-focused experience, improved scalability and elasticity, and a rolling commitment to hardware upgrades.

Also read: Successful Cloud Migration with Automated Discovery Tools

Private clouds are often employed in highly regulated fields where data is sensitive and security requirements are tight. U.S. government agencies, research institutions, and many financial organizations run private clouds to maintain compliance with data privacy requirements. This is particularly true for companies facing HIPAA compliance issues.

Costs are also a factor. The total cost of ownership of a private cloud may be found to be advantageous when weighed against a public cloud, particularly when factoring in for hidden charges such as network bandwidth usage. Research firm 451 Research found in a 2017 survey that more than 40% of respondents saved money by pursuing a private cloud versus a public one. These respondents identified automation, capacity-planning tools, and flexible licensing arrangements as the key drivers of those cost savings.

Private cloud allows a large number of users to share resources without any performance issues; thus, it contributes to the cost savings as users become more efficient in their work. This impact is the most valuable because it is a continuous saving, one IT director said in the study.

But costs were not the predominant decision-making factor for many of these enterprises. Data protection and asset ownership and integration with business processes were the highest-ranking decision points for companies that chose to operate a private cloud.

Owning a private cloud is a lot like owning a house. You keep the gutters clean, you mow the lawn, you fix a burst pipe in the freezing cold. You pay taxes, you pay the bank, you pay for replacement AC filters and fix broken windows and on and on and on. When you rent an apartment, you pay rent, and all your other problems are handled by someone else.

That peace of mind is why so many companies have chosen the public cloud route, where no matter how quickly their data usage grows, theyll never hit the ceiling of their providers capacity. Contrast that with a private cloud, where additional hardware needs must be meticulously planned to match the demands of data growth. This is a classic CapEx versus OpEx problem, where private clouds carry outsized capital expenditures to get up and running. Those costs are completely avoided on the public cloud side of the equation, where operating expenditures are incurred on an ongoing basis.

Private clouds can also put a higher demand on an enterprises IT department, as their skills are depended on to ensure smooth transitions between hardware, maintain uptimes, or properly configure security protocols.

Hybrid clouds attempt to mitigate many of these challenges by playing to the strengths of a private cloud and a public cloud at the same time. In a hybrid cloud model, large volumes of data are delivered to the public cloud, where economies of scale and the limitless storage ceiling provide a best-fit home for that information. Mission critical information, or data that must meet certain privacy requirements can be stored on a private cloud, under an added layer of security.

There is no one-size-fits-all solution here, and each method of cloud storage should be evaluated in the context of an enterprises needs and desires.

Read next: 5 Emerging Cloud Computing Trends for 2022

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