What’s Next for Bitcoin, Now that It Broke Through $20,000?

The sky’s the limit for the largest cryptocurrency. But where we go to next in the short-term, that’s the next question in everyone’s mind because now no technicals are there to guide the market.

We have already gone well above $23,000, with the ‘real’ trading volume also surging past $11 billion. Antoni Trenchev, the co-founder of crypto lender Nexo, says,

“We have a new line in the sand and the focus shifts to the next round number of $30,000.”

“This is the start of a new chapter for Bitcoin. It’s a narrative the media and retail crowd can properly latch onto because they’ve been noticeably absent from this rally.”

According to Meltem Demirors, Bitcoin breaking above $20,000 marks an important psychological milestone. She told Bloomberg,

“The biggest thing is the macroeconomic conditions — this is the perfect setup for Bitcoin”

“From here things are going to move very quickly and I wouldn’t be surprised if we touched $35,000 in the next three to six months.”

This week, Bank of America’s survey revealed Bitcoin to be the third-largest crowded trade after long tech and the short US dollar.

It might look crowded to the outsiders, but the market knows that Bitcoin has just started its new cycle. Ed Campbell, managing director at QMA, said,

“People tend to pile into momentum trades, so Bitcoin could have more upside from here.”

As we have been reporting, institutions lead this uptrend with the retail “out of this rally,” which, according to Kay Van-Petersen, global macro strategist at Saxo Capital Markets, means the “price will now go from linear to parabolic.”

Interestingly, despite bitcoin’s big moves, implied volatility remains muted. The crypto market’s low volatility is expected to sustain the largest digital asset’s performance next year.

Not to mention, interest rates will remain at zero and sub-zero while the Federal Reserve announces that they will continue to keep up with its massive stimulus measures.

All of this has Bitcoin’s top in this bull rally anywhere between $100k to $500k and $1 million in an even larger scheme of things.

However, in the short-term, “testing $36,000 will be the next real objective,” if BTC sustains its momentum, said Dan Gunsberg, CEO of crypto trading platform Hxro, adding that a significant break below $13,800 would bring a much weaker period.

Read Original/a>
Author: AnTy

EU Draft Proposal Seeks to Access Data from End-to-end Encryption Platforms

The European Union (EU) could soon limit end-to-end encryption according to a draft leaked by the German Presidency, which seeks to increase the monitoring efficiency by Intelligence authorities and police.

This development comes in the wake of Vienna’s terrorist attack that took 4 lives and left 23 others with injuries. The news, which was initially reported by an Austrian media dubbed ‘FM4’, noted concerns on the accessibility of data from encrypted platforms like WhatsApp and Signal.

According to a draft deciphered by the Associated Press, this proposed piece will harmonize the process of accessing encrypted data,

“Competent authorities must be able to access data in a lawful and targeted manner, in full respect of fundamental rights and the data protection regime, while upholding cybersecurity.”

The draft, which is dated Nov 6, goes on to highlight those technical solutions to enable data access in encrypted platforms must be in line ‘with the principles of legality, transparency, necessity, and proportionality.’ However, it is quite noteworthy that the draft proposal does not call for total encryption; instead, it is set to initiate an exploratory phase that will guide stakeholders, including the EU, towards adopting favorable legislation in matters of end-to-end encryption.

Activists Decry the Move

As expected, the draft has already been met with opposition from rights activists who place fundamental importance on privacy and security. In fact, a German lawmaker Anke Domscheit-Berg, a left-wing politician, has voiced their concerns about the proposed draft. The lawmaker accused EU governments of masking under the extremism narrative to introduce higher surveillance within their jurisdictions.

According to Anke, the logic of accessing end-to-end encryption platforms does not make sense. He gave this example to support the argument,

“Anyone who finds an open back door into my house can enter it; the same is true for back doors in software …

The proposed EU regulation is an attack on the integrity of digital infrastructure and, therefore, hazardous.”

It appears he is not the only one who has called out the draft proposal; other stakeholders that have voiced their opinions against it include the executive director of Open Privacy Sarah Jamie Lewis and the director of Cybersecurity at Electronic Frontier Foundation, Eva Galperin. With the document set for presentation to the EU council on Nov 19, only time will tell if this draft will be adopted into law by member countries.

Read Original/a>
Author: Edwin Munyui

SEC Raises the Crowdfunding Limit; A Better Alternative to ICO, IEO, & Venture Capital

The US Securities and Exchange Commission raised the limit on crowdfunding from $1.07 million to $5 million, making it easier for startups to raise money from non-accredited investors.

With a 3-2 vote on Monday, several exemptions were made to federal securities legal guidelines that require issuers to register with the SEC and publish monetary statements.

Many financial instruments are categorized as securities, and to offer security, one is either required to register, which is a time-consuming and expensive process, or fall under the exemption such as Reg A, Reg D, which now also involves Reg CF or Reg Crowdfunding.

With this rule change, companies are now provided with more flexibility.

“This means entrepreneurs can raise more money and do so more easily,” said Bruce Fenton, CEO of CEO Chainstone Labs. Adding,

“This is huge – $5 million is significant enough to attract much larger and more high quality issuers. The small business sector will be rebuilt — this is a step to accelerate that. Reg CF also sidesteps the accredited requirement- an antiquated thorn in the side of innovation.”

The change in the rules is the newest assistance to small and medium-size corporations following the expansion of accredited investors’ definition in August.

SEC Chairman Jay Clayton said the rule would “improve effectivity and facilitate capital formation,” and that it might cut back regulatory prices and burdens for corporations.

“Huge for companies from non-tech hub cities, underrepresented founders, and less sexy industries,” said Ryan Selkis of Messari.

Meanwhile, Shehan Chandrasekera, Head of Tax Strategy CoinTracker, says this brings a better alternative for crypto companies that usually goes the route of Initial Coin Offering (ICI), Initial Exchange Offering (IEO), and venture capital.

“REG Crowdfunding limit went up to 5M from 1M per SEC. A better alternative to an ICO or IEO,” he said.

Read Original/a>
Author: AnTy

Ethereum Core Developer Concerned about Network Health as Miners Raising Gas Limit by 25%

In the light of increasing network utilization, Ethereum miners have decided to increase the gas limit of the network from 10,000,000 to 12,500,000.

Gas fees are paid by users to make transactions and transfer smart contract data. The block size of the network is limited by the amount of gas that can be sent per block.

As such, Ethereum’s block size varies depending on the gas limit, which its protocol allows miners to adjust a bit by about 0.1% in each new block, unlike Bitcoin, which has a fixed block size.

Now, Ethereum miners are in process to increase the network’s capacity by 25% to increase the number of transactions the network can process per second, making it run faster.

“In theory, this means that the Ethereum network now has the capabilities to handle ~44 transactions per second, instead of ~35,” said Bitfly, the parent company of Ethermine, an Ethereum mining pool. “Another huge milestone for the community.”

The last time a significant gas limit was increased by miners happened in Sept. 2019, from 8 million to 10 million.

Gas usage has jumped 81% YTD and nearly 10% within a day, as per Glassnode.

Block size has already started rising, with miners voting to increase the limit. Currently, it hovers around 12,000,000. The issue with this increment is that it would make the blockchain bigger as such, making it more difficult and costly to sync and run a full node along with causing some DoS concerns as well.

Ethereum core developer Péter Szilágyi had some harsh words to share about this development, which he is against.

“TL;DR: The Ethereum miners don’t give a fuck about the long term health of the network nor about DoS attacks,” said Szilágyi.

“Ethereum miners and devs should really learn a bit of complexity analysis from Bitcoin devs. They at least figured out that math is a bitch that you don’t screw with,” Szilágyi said.

Ethereum co-founder Vitalik Buterin also chimed with “high txfees *are* making the chain much less useful for people.”

Buterin also shared that Sparkpool reached out to him about it over a month ago, and he opposed the decision to increase the fees limit because Szilágyi did. But “the last 6 weeks of high txfees have put genuine pressure on people so I don’t blame them for this decision,” he added.

Raising the gas limit means reducing the transaction fees, making the network cheaper to use. Buterin shared how he recently spent $40 just to transfer to three people. In 2020, mean gas price has increased 237%, and as we saw, two transactions spent over $5 million in fees.

Read Original/a>
Author: AnTy

ConsenSys Codefi’s Activate To Launch Its “Proof-Of-Use” Token Platform With SKALE

  • Activate to limit partnering projects based on a maturity level gauge and how ready partners are to launch
  • Tokens to be issued to only dedicated users as they implement proof of use

Activate, a Consensys backed token platform, has announced making its maiden token launch with the SKALE mainnet. Built by the ConsenSys Codefi, it is set to allow the users inputs in the sales of the tokens.

SKALE supported by Ethereum is a secure and decentralized network built for the Decentralized App (DApp)Developers. Their protocol of sharing computational load among different chains is largely based on proposed Ethereum shard system.

The platform’s main objective is enabling parties to securely host the tokenized networks among active users. It would effectively allow individuals to directly take part in of trading tokens while staking in the network as explained by ConsenSys’ Global Lead of Token Architecture Ejaaz Ahamadeen.

“Activate is a platform that allows anyone to engage and participate in decentralized networks. That’s kind of like a statement as a whole. And the best way to think about it is it equips you with the means to purchase, manage or use your utility tokens through its entire existence.”

With current projections from the Activate team suggesting that the Token sales would occur as soon as mid-year. According to the Strategy Lead for ConsenSys Codefi, Mara Schmiedt, Activate seeks to instantly assign tokens to active participants in the Network as soon as Activate’s partners have launched.

However, Activate follows various criteria while choosing partners. They intend to focus on the maturity of the project in that they should be ready to launch their network as soon as they come onboard. She said,

“We are very limited to the projects that we can work with due to many factors, the primary one being maturity of the technology. We’re not going to support a project who’s not going to mainnet soon.”

Proof of Use

The tokens will be distributed on a proof of use basis. This ensures that participants actually purpose to use the token. This requires the users to give a timeline of when they want to use the tokens before you actually get to use them meaning that they have to surrender up to 50% of their tokens to the mainnet for at least 3 months as was further explained by Mara Schmiedt.

While Skale’s CEO, Jack O’Holleran was adamant that money was not their top priority at the moment. They want to focus on first adding participants on their mainnet.

Read Original/a>
Author: Lujan Odera

Rakuten’s Super Points Can Now Become Crypto Assets with Wallet Launch

  • Diamond members have a higher limit on how many Rakuten Super Points they can convert for each transaction and for each month.
  • The only points that users can convert are Rakuten Super Points, and partner service company points are not eligible.

Rakuten is getting involved in the cryptocurrency world with their own loyalty points. A press release from Rakuten directly states that the new services launched through their wallet will allow users to transfer their Super Points into a selection of cryptocurrencies. The app for Rakuten Wallet allows consumers to participate in spot trading.

In Japan, users with a Rakuten Wallet and Super Points have the ability to trade for Bitcoin, Ethereum, and Bitcoin Cash, as long as they have at least 100 Rakuten Super Points. Every Super Point is worth one yen during crypto conversion, and the transaction will be recorded in the smartphone app.

Ultimately, the creators of the Rakuten Wallet aim to reduce the difficulty that some consumers face with entering the crypto space, allowing even novice users to get involve with trading. The new service allows customers to also use the Rakuten Super Points for a broader use cases, which makes their loyalty membership program more appealing to consumers.

With the new service, the only points eligible are from Rakuten directly, not their partner service companies. The user can only exchange for amounts over 100 Super Points, though the company has certain restrictions on how many points can be exchanged each month and for each transaction, depending on the current membership.

Diamond members can convert up to 50,000 Rakuten Super Points at once, with a limit of 500,000 Rakuten Super Points per month. Other members have a maximum of 30,000 Rakuten Super Points for each transaction, and a limit of 100,000 Rakuten Super Points per month.

The service will be available starting today.

Read Original/a>
Author: Krystle M