Bitcoin Becoming A “Currency of Choice” Will Push BTC Price Up 2,500% – Tim Draper

  • Bitcoin correction may end up being more than that but we’re in for an interesting ride
  • Tim Draper still holding to his prediction of BTC at $250,000 in 2023 beginning
  • When the time to make the switch comes, “Bitcoin is going to be the big winner”
  • Warren Buffett is a critic because Bitcoin is a “huge threat” to his holdings

Bitcoin has been extremely volatile for the past two weeks, trying to stay above the important psychological level $10,000 but unable to as yesterday we went down below $9,500.

Bitcoin might be in correction but according to venture capitalist Tim Draper, we are in for an “interesting ride.” Draper, the founder of Draper Associates, in an interview with CNBC said,

“I have been out of the market for about six months, it felt pretty lofty for me and I kind of moved most of my stuff to crypto and Bitcoin. It’s kind of a safe haven now and I think this correction may end up being more than that… we’re in for a kind of an interesting ride.”

Bitcoin – A “Currency of Choice”

Draper reiterated his Bitcoin price prediction for Bitcoin that sees the digital asset hitting $250,000 in the next three years.

“I’m still holding to my prediction I think Bitcoin in 2022, Or at the beginning of 2023, will hit $250,000 and that is a big move from where it is here.”

The reason behind such a bold prediction is Bitcoin becoming a “currency of choice.” Draper explains that currently bitcoin isn’t as easy to move around but eventually it will be and then people will have a choice.

And then, they won’t choose to pay the banks two and a half to four percent every time one swipes their credit card. The choice will be the currency that’s “frictionless, open, transparent, global, and not tied to any political force,” he said.

At some point, Draper feels people are going to make that switch and at that time, “bitcoin is going to be the big winner.”

Enormous Risk

Although he didn’t reveal how much of his net worth is in bitcoin and crypto, he did say, “a lot of it.”

“It’s a lot, it is a lot a lot and it is just better in the long term,” said Draper.

But what kind of risk endemic to other holdings if we see an increment of over 2,500 percent in Bitcoin by 2023.

“Enormous risk, I wouldn’t hold a bank if you paid me to own the bag. I wouldn’t hold an insurance company right now. I mean that they are not in good shape going for the next 10 years, things are going to change. very big.”

He also points out how the millennials prefer bitcoin over dollars as it’s a better currency to hold.

Bitcoin a “Huge Threat” to Crypto Critic Warren Buffett’s Holdings

Draper also commented on long term crypto critic Warren Buffett reinstating his dislike for crypto by saying that they don’t have any value and he doesn’t own any crypto and neither will he ever.

“That is hilarious, he owns 50% of his holdings are banks and insurance companies, they are not going to do well in this new decentralized economy, of course, he’s not going to like it.”

Draper said Buffett sees bitcoin and cryptos as a “huge threat to his holdings.” Draper said,

“Clearly he’s not gonna want this new currency that is completely, everyone knows, is so much better than what we have out there and these currencies that are tied to fiat government. I think they’re just gonna be a relic of the past, it’ll be like holding drachmas and Frank’s.”

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Author: AnTy

BRD Expands Into Enterprise With Blockset Blockchain Service, BTC And XRP Chains Supported

  • BRD set to offer corporate partners a cheaper and more efficient way of deploying their apps with Blockset
  • Currently, it only supports BTC and XRP chains and has already reeled in major partners in the financial world

After using the digital wallets that were currency available and seeing the poor user experience as well as losing $1000 in BTC and Aaron Voisine, BRD co-founder envisioned a digital wallet that would be secure and easy to use.

BRD is a simple and secure onramp to bitcoin, ethereum, and other digital currencies according to their website. They have currently grown their presence to 170 countries and servicing a clientele of close to 3 million, handling over $6 billion in digital assets.

BRD announced the launch of its new Blockchain product, Blockset which will set BRD on a new course to satisfy the robust ever-growing banking and finance industry needs. It will consolidate BRD key values of privacy and security on which BRD has built its reputation as a leader in the industry.

Blockset is a mega platform that has custom sets of tools that will offer developer teams the opportunity to build customized for sale Blockchain apps, ease data access, reducing time and transactional costs.

According to CEO and co-founder Alex Traidman Blockset is set to satisfy the need for big crypto companies and banks to hasten the delivery time of the propriety solutions globally especially with the new opportunities opened up by the increased appetite for digital assets ownership and trades. This will also reduce their development and deployment costs significantly.

“That is why we developed our own proprietary platform (Blockset) which banks, financial services, and large crypto companies will now be able to leverage to accelerate their time to market and deliver enterprise solutions to scale on a global basis for a fraction of the development costs.”

They have already received backing from quite a number of corporate leaders such as SBI Holdings, PayPal, KPMG, and Ripple’s Xpring. They are also targeting to bring onboard partners and system integrators to boost their market presence in the near future.

Blockset has been made available for the market however prioritizing mostly corporate clients. The wallet currently supports BTC and XRP and intends to offer Bitcoin Cash (BCH), Hedera (HBAR) and Ethereum (ETH) options by the end of March. Alex Traidman was confident that Blockset would open up exciting opportunities to all those who came on board.

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Author: Lujan Odera

Popular Analyst PlanB says Bitcoin will “Overshoot $100,000” by Dec. 2021

  • S2F predicts $100k May 2020-2024 average
  • $50k is a “more conservative” figure, Bitcoin price will be above and below $100k but will always go back to the S2F model line, “like the drunk and his dog”

Bitcoin is having a good year having spiked over 33% in 2020 to date. We are currently trading near $9,850, very close to touching the $10,000 level.

Arcane Research points out how the historical trend predicts $11,900 as the BTC value, meaning we are still 20% away from that. However, the popular stock-to-flow model is almost aligned with the current price.

Although the long-term growth trend targets a way lower price of around $13,000, the S2F model predicts bitcoin price at about $100,000.

$100k is May 2020-2024 average

Popular analyst PlanB who first used the Stock-to-flow model to determine BTC price says people misunderstand that the S2F model predicts BTC price at $100,000 by May 2020, the month of bitcoin reward halving.

Previously, on a podcast, PlanB said this new all-time high which will be 400% higher than the 2017 bull run at $20,000 is expected to hit by Dec. 2021.

S2F actually “predicts $100k May 2020-2024 average, like the chart shows,” clarifies PlanB.

2020-2024 will be basically on average $100k in the same way 2016-2020 was on average $8,000.

BTC price follows S2F model like the drunk and his dog

In a Tweet, he further clarified how the first article he wrote in early 2019, the price predicted was $55,000. “The original model on monthly data (Mar22) says $55k, but a new model on yearly data $100k. Your choice,” explained the analyst.

$50k is a “more conservative” figure for the price but in his personal opinion, PlanB believes “We will overshoot $100k (and undershoot after ath).” Bitcoin price will basically be above and below this level but always eventually will go back to the S2F model line, “like the drunk and his dog,” he said.

And If Bitcoin is unable to do that, the analyst said, the model will be false.

USD will be the one that will fail

If the Bitcoin price’s cointegration breaks with the S2F model, the model will be falsified, however, PlanB says it’s hard to predict when that will be the case. Dec 2021 he said, “is an estimate (for easy communication) (…) until something better comes along.”

“Eventually all models are replaced by better ones,” but the analyst believes it would be the fiat, US dollar that will fail as “it makes no sense to have Zimbabwe like debasement risk in a next gen global economy.”

“Zero flow and infinite S2F/value is in 2140 .. in 120 years. Long before that, USD will break (model is BTCUSD). Also, I would be happy if the model predict next 1, 2 maybe 3 halvings (i.e. 10 yrs),” he further explained.

So, Bitcoin is just getting started and it’s not too late to jump on the BTC train as we have a really long way to go.

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Author: AnTy

5 Chinese-Based Entities Control 49.9% of Bitcoin (BTC) Hash Rate: TokenAnalyst Report

According to the latest report of TokenAnalyst, Bitcoin is more centralized than ever before.

Bitcoin a decentralized and nearly trustless system to transfer and safely store value. But in 2020, it has started to

“become a highly centralized system that places an increasing amount of trust in a small number of large entities.”

The report states that just like a few large cryptocurrency exchanges dominate the crypto landscape, the mining sector is now also dominated by a small number of entities with a power base in China.

The metric the firm uses is calculated by identifying the addresses controlled by mining entities and then identifying the block they mined.

As awareness and adoption increase, so does the competition which has many smaller participants become unprofitable and exiting the market. The individual and small miners have been replaced by large operations that created groups by forming partnerships.

One entity to rule ‘em all

Today, five mining entities viz. BTC.com, AntPool, F2Pool, BTC.top, and ViaBTC — all of which are based in China and available via BirDeer — controls 49.9% of all computing power on the network. BitDeer lets consumers rent mining power without buying or setting up mining hardware.

“On 27th January 2020 these 5 mining entities controlled 49.9% of the hashrate of the bitcoin network,” states the report.

5-miners-control

5-miners-control

It basically acts as the connective link between to pull their resources and share freshly mined bitcoin as rewards.

“Once a consumer has paid BitDeer for a plan, they can assign that hashrate to any partnership mining pool,” TokenAnalyst said in the report. “Does it really make a difference anymore? What is to stop the entities merging into a single large entity that maintains a degree of separation” only through address structure.

Eroding the trustless model of the network

Over the decade, mining has changed dramatically, earlier GPU rigs were used that shifted to FPGA and ASIC miners. Eventually, miners formed mining pools as mining a block became difficult.

And now today’s large-scale cloud mining operations have lowered the barriers to entry that allows an individual to purchase hash rate plans without the need to expand on capital, complicated set-up, or maintenance.

Although a good thing, the centralization of bitcoin network hash power is a concerning point as “it erodes the trustless model of the network.”

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Author: AnTy

Ripple Critic Compliments its “Impressive Tech” & XRP Seeing “Real Traction”

  • Messari founder Ryan Selkis says Ripple has built “one of the more impressive tech stacks”
  • Ripple is the “Jekyll and Hyde of crypto” that is doing great work and a phenomenal team while coming up with transparency reports that obfuscate things

Ryan Selkis doesn’t hate Ripple or XRP, clarified the Messari Founder in his latest newsletter. Earlier last year, Selkis released a report contesting the market capitalization of the digital asset XRP and received a lot of backlash from the “XRP Army.”

Then in November, he published a report accusing the company of using RippleWorks charity foundation as a tax shelter, findings that coincided with Elliptic’s report tying $400 million of illicit activity in XRP.

“Yes, I’ve called out the company leadership for lack of transparency, and yes, I’ve compared the company to Dr. Jekkyl and Mr. Hyde because of its strange business model. But I actually think Ripple’s tech is interesting, and the asset could prove successful under a certain set of (admittedly unlikely) scenarios,” said Selkis Thursday.

Recently, he appeared on Abra’s Money 3.0 podcast where when asked about Ripple, Selkis shared much positive views on the software company that he said has built “one of the more impressive tech stacks.”

According to him, Ripple’s tech solutions are also much closer to “product fit” than any other (99%) projects in the crypto space.

The issue, however, has always been what he called the “Jekyll and Hyde of crypto.”

Jekyll and Hyde of Crypto

Ripple’s development in the space can’t be denied, having crossed over 300 in its partners’ list that involves some of the world’s top banks and financial institutions.

“On the one hand, you’ve got Dr. Jekyll who’s trying to dis-intermediate SWIFT and working with all these banks and got this phenomenal team and board and advisory members and they are creating interesting tech, solving real problems, and were very early as pioneers in the industry,” explained Selkis.

But in the midst of these developments, Ripple comes up with transparency reports that really doesn’t clear out things much regarding how funds are actually flowing or the actual funding model, said Selkis. The “continuous fundraise” is also treated as revenue by the company.

And the party line is the 80% of XRP that was “gifted to their balance sheet,” and has been sold but they don’t really care about the securities law aspect of it.

“What we do care about is whether the XRP currently outstanding is truly circulating or whether it’s encumbered in some way, shape or form.”

Because if XRP is encumbered, Selkis said two things would happen, either they are understating the amount to sell-pressure from insiders, which is what actually playing over the course of the last 18 months, or their market cap is overstated.

Ripple and XRP are seeing real traction

Ripple could end up doing “very well if the banks take the bait,” and Ripple continues to offer them “sweetheart deal” to buy the digital asset for “pennies on the dollar.”

“So, it’s like “fake it until you make it coin.” The revenue model and what the company actually delivers are two very, very different things, he said.

However, recently, Daniel Vogel CEO of Bitso, Mexico’s remittance company and Ripple partner revealed how the company has been utilizing XRP in remittance flows across the US-Mexico border. He said they’re aiming to capture 20% of the weekly US-Mexico remittance flow by the end of 2020.

“For now, it’s at least one example of a market where Ripple and XRP are seeing real traction. Time will tell if that recipe is replicable in other markets,” said Selkis.

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Author: AnTy

Cambodia’s CBDC Initiative, Project Bakong Payments App, Countdown Has Begun

The Phnom Penh Post reports that within the next couple or more months, Cambodia’s central bank is going to launch its own blockchain-based peer-to-peer money platform.

The system is called Project Bakong and it will be a central bank digital currency (CBDC) – backed payments app. Chea Serey, the chairman of the National Bank of Cambodia, said it’s going to be “the national payment gateway for Cambodia”. At the moment, the Bakong implementation is linked to users’ bank accounts, and it will allow the exchange between the CBDC and hard currency.

Bakong Cheaper than Debit and Credit Cards

An executive from one of the participating banks at the project said Bakong is a more convenient and cheaper alternative to debit and credit cards. It was also noted that banks are going to lose from their market share, but not in the long run.

Bakong Being Tested Since July 2019

Bakong has been undergoing tests ever since July 2019. The central bank expects it to be completely operational until this quarter ends. The system is currently supported by 11 banks, not to mention it will be rolled out in all the bank branches in the country very soon. According to a December World Economic Forum release, Bakong is looking to connect a payments economy that has been fragmented and continues to be dominated by cash.

Payments Frictions Reduced and Financial Inclusion Achieved

The National Bank of Cambodia’s new system will have merchants, commercial banks and the Cambodian people that don’t have a bank reducing payments frictions so that the country gains financial inclusion. Earlier this week, it was reported by Hard Fork that a European central banks’ raft which included the Bank of International Settlements has started to explore how CBDCs would work with international payments and how much they would help when it comes to interoperability.

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Author: Oana Ularu

Bitcoin Supply of Huobi & BitMEX Shot Up While Poloniex Crashed

  • The supply distribution for exchanges has become “significantly more distributed,” is a “positive sign for the health of the overall market”
  • Poloneix’s BTC supply dropped to its lowest levels since Jan. 2016

In 2018 Bitcoin price went through a brutal winter, losing 84% of its value. In the second half of 2019 as well, BTC went from $13,900 to $6,400. But despite the ups and downs in the price, the total amount of BTC held on the nine exchanges surged over the last five years.

While Gemini and Bittrex saw a large increase in early 2018 only to level off, Binance continued to grow after 2018. Bitstamp saw a sudden dip in their supply due to moving their cold storage back and forth between Xapo.

Poloniex BTC Supplies Dropped to Lowest Levels since Jan. 2016

The biggest hit was taken by Tron founder Justin Sun who invested Poloniex. Launched in 2014, Poloniex thrived in the unregulated market becoming one of the largest exchanges in the world. But coming to the end of the 2017 bull market, it suffered from scaling and support issues.

After acquired by Circle in February 2018, in less than two years, the company announced they were spinning out Poloniex. Things continued to get worse for the exchange as one month after that in Nov. 2019, it ended support for US customers. All of this sent Poloniex on-chain supplies to their lowest levels since Jan. 2016.

2019 Recorded a Surge in Exchanges’ BTC Supply

Crypto derivatives exchange BitMEX that offers leveraged trading of up to 100x has been only growing steadily over the last few years. Founded in 2014 as well, the Seychelles-registered platform increased its BTC supply during the 2018 bear market.

Despite being under investigation by the US CFTC, its “insurance fund” of BTC grew by more than 63% in 2019.

The exchange that emerged as the winner is Huobi which had moderate success over its first five years of operations. It was during the second half of 2019 that the exchange saw a large increase in both BTC and ETH supply.

Huobi was also the platform that received large quantities of BTC and ETH from China-based Ponzi scheme $3 billion PlusToken scam.

During the last five years, supply distribution for exchanges has become “significantly more distributed, which is a positive sign for the health of the overall market.”

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Author: AnTy

Big Shift in Workforce and Inheritance Boom Will Make Bitcoin a Multi-Trillion Dollar Asset Class

  • “The more familiar people are, the harder the FOMO will kick in” – Misir Mahmudov
  • Even 1% of the wealth transfer goes into Bitcoin, it will be a multi-trillion-dollar asset class

Since falling from $9,200 on the weekend, Bitcoin price has now got stuck around $8,600. The world’s leading cryptocurrency is up over 18% YTD but down 0.17% in the past 24 hours.

Trading at $8,636 as per Coincodex, it is currently managing the daily trading volume of $473 million as per Messari, down from $1 billion on the weekend.

However, the Bitcoin forward curve paints a bullish picture. The forward curve is a graph that defines the price at which a contract for future delivery can be made today.

Trader Avi Felman shared a Twitter thread where he explains that generally the futures curve slope positively, meaning as expiries go further out prices get higher which is called Contango and the opposite is Backwardation where prices get lower.

Historically, Bitcoin futures trade at a premium to spot prices i.e. Contango. It allows one to “short the future, and go long spot, and collect the spread.” There are desks in the crypto industry dedicated to this trade alone.

The more awareness, the harder the FOMO kicks in

Currently, Bitcoin is down 57% from its all-time high of $20,000 in 2017 while its awareness in the US grew from 77% in fall 2017 to 89% in the Spring of 2019 despite 2018 being the bear market, notes analyst Misir Mahmudov.

“The more familiar people are, the harder the FOMO will kick in. Wait until they start hearing about BTC reaching a new all-time high this bull run,” Mahmudov said.

What’s even more interesting and bullish for BTC is the millennials and $68 trillion wealth transfer.

A Big Shift in the WorkForce & Wealth

Cameron Winklevoss, Gemini co-founder points out,

Though it won’t be 70%, but much closer to 40% and over 50% in Africa, a shift would be happening.

Studies have shown that these Millennials will be holding five times the wealth they hold today. The group is anticipated to inherit more than $68 trillion from their Baby Boomer parents by 2030, marking the greatest wealth transfers in modern times.

Many of the Baby Boomers have been the beneficiaries of a great economy that offered well-paying safe jobs, the meteoric rise in the stock market and substantial gains in real estate. On the other hand, post-Boomer generation has been wrestling with college debt, costly real estate, procuring a well-paying job, and the high cost of insurance.

But this unprecedented hand-off of wealth will change the fortunes of many millennials that are expected to have some ripple effects on the economy.

Bullish for Bitcoin

According to crypto industry experts, it will be bullish for Bitcoin. As Ryan Selkis of Messari points out, “If 1% of that goes into cryptocurrencies, crypto will be a multi-trillion-dollar asset class,” putting a conservative case for $50k+ bitcoin.

Millennials are already buying Bitcoin, as evident from the survey of adults familiar with cryptocurrency, 20% of millennials purchase Bitcoin in the last year.

Also, GBTC is already among the top 5 holdings of Charles Schwab for Millennials ahead of Netflix and Microsoft.

So, as millennials take up the largest percentage of the workforce and a huge amount of wealth gets transferred, Bitcoin will be reaching the moon.

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Author: AnTy

Decentralized Finance (DeFi) Grew To $668 Million In 2019, How Will Taxes Be Calculated?

2019’s decentralized finance (DeFi) boom that has led to more than $785 million being locked in crypto assets is giving accountants serious headaches.

Antoine Scalie, the CEO of accounting startup Cryptio says complex assets and transactions make it for the accounting to be more difficult. For this reason, Winklevoss Capital and Dragonfly Capital have invested millions in accounting startups like TaxBit. Alex Pack, the co-founder of DragonFly Capital thinks there are many blockchain attacks around pseudonymity and anonymity, and that the IRS doesn’t really know how to stack DeFi products, since clear categories for experimental assets don’t exist.

TaxBit Working on Tax Optimization

It seems DeFi users who used financial products not offered by exchanges and MakerDAO loans have to enter details about their transaction manually, so they pretty much rely on the help of the Certified Public Accountants and tax attorneys working for TaxBit’s support line.

The Requirements Are Unclear

Both Cryptio and TaxBit are making efforts to make their systems capable of automatically flagging the events in the DeFi ecosystem that have potential to be taxed. Cryptio doesn’t provide retail users a Turbo Tax option like TaxBit does. However, it helps its DeFi clients record information on smart contracts that have been “touched” by the asset.

Since the accounting requirements aren’t at all clear, Credit Karma has conducted a survey and discovered only 0.04% of Americans have reported their crypto transactions for the 2018 taxation, whereas 4% of the population in the country reported they used crypto that time.

This had the IRS issuing an update on the crypto-oriented guidance, back in 2019. Crypto and TaxBit representatives agree the complexity of tax reporting is impeding the crypto adoption. People have no idea how the technology for this works without filling in paperwork. The startups’ role is to make the usage more compliant and mainstream.

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Author: Oana Ularu

Ziglu Crypto Bank To Launch In 2020 By Former Starling Co-Founder and Barclays Tech Exec

After being head of technology at Barclays for more than 10 years, plus the co-founder and the former CTO at Challenger Bank Starling, Mark Hipperson wants to launch the digital bank Ziglu account, in the first quarter of 2020.

Expected to be the future when it comes to the challenger bank concept, Ziglu will allow many digital and fiat currencies to be held in only one account. More than this, it will hold currencies funds that can be freely exchanged in between them. When it comes to foreign currencies, these will be available for buying and selling at Interbank rates, whereas crypto sales and exchanges will have the best prices set by multiple exchanges.

Ziglu Available Only in the UK for Now

The Ziglu website says that any currency from the account is going to be made available for international spending with a Mastercard debit card, cryptocurrencies included and instantly converted at the point of sale. Hipperson has been Ziglu’s CEO ever since September 2018. He managed to make the company an electronic money issuer approved by the UK’s Financial Conduct Authority (FCA). At the moment, Ziglu is running pre-launch applications for its UK users, but Hipperson is planning to expand Ziglu in the future:

“While we intend to expand our offerings to other countries in due course, currently only UK-residents who are at least 18 years of age may use our services and are eligible to apply for a Ziglu account.”

Bitwala Launched a Similar Account in August

Ziglu isn’t the first company to launch an account that combines fiat and crypto. Back in August 2019, Bitwala came with its Bitcoin wallet account to which it added the Ethereum. The crypto-backed card offering isn’t a first either, but the United Kingdom surely needs it.

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Author: Oana Ularu