Michael Saylor Forecasts Bitcoin’s Market Cap Hitting $100 Trillion

Michael Saylor Forecasts Bitcoin’s Market Cap Hitting $100 Trillion

In a recent interview, MicroStrategy CEO Michael Saylor predicted a $100 trillion market cap for Bitcoin fueled by increased adoption. The asset’s growth depends on regulatory stability – an area where many expect clarity on soon.

Michael Saylor, the chief executive of business intelligence firm MicroStrategy, is continuing with his bullish approach to cryptocurrencies, even despite the market downturn.

In a recent interview, the Bitcoin bull explained that developments in the market show Bitcoin’s increasing attraction to investors and that things will only get better from here.

Stability for Global Finance

On Tuesday, Saylor sat down for an interview with CNBC’s Squawk Box, where he gave his outlook of Bitcoin’s fundamentals. Among other things, the CEO explained that the asset would eventually hit a $100 trillion market cap as more investors get into the market and hold the asset.

Saylor’s comments came following Bitcoin’s significant rise over the weekend that saw the asset eclipse the $1 trillion market cap for the first time. However, since then, its price and market cap have fallen sharply as a market correction fueled by profit-taking has hit it hard.

Despite the pullback, Saylor remained unfazed. The CEO told CNBC that Bitcoin’s value would continue to grow as the asset gradually becomes a “stabilizing influence” for the global financial market. Eventually, the leading cryptocurrency should hit $100 trillion in market value. Saylor said,

“There’s a $500 trillion monetary planet, and the outer layer is currency, then you’ve got stocks, bonds, real estate. There’s $10 trillion worth of gold in there, $1 trillion of bitcoin in there. Bitcoin is going to flip gold, and it’s going to subsume the entire gold market cap.”

Regulatory Concerns Threaten Expected Growing Adoption

Saylor also shared his belief that billions of people worldwide will soon flood the Bitcoin market as they look to the asset to become more stable than other investment vehicles. The CEO explained that Bitcoin is “egalitarian, progressive technology,” adding that the asset has managed to reach a trillion-dollar market cap faster than several of the world’s most valuable companies today.

He explained that the world needs Bitcoin and that up to a billion people will store portions of their life savings in the leading cryptocurrency over the next five years.

The debate about whether this is possible can rage on, but Saylor has kept up with his Bitcoin evangelism for the past few months now. Since MicroStrategy purchased over a billion dollars in Bitcoin, the CEO has continued pumping the leading cryptocurrency every chance he gets.

Earlier this month, he said in an interview that Bitcoin is “a masterpiece of monetary engineering” that will go down as the world’s first engineered monetary network. Saylor has also continued to pump Bitcoin as a better alternative to fiat currency, which he describes as a “melting ice cube.”

While Saylor believes that Bitcoin’s profile will continue to rise, the asset will need a great deal of regulatory clarity to achieve escape velocity truly. A lot of hope is currently being placed on Janet Yellen and the other Biden administration members, many of whom appear to be focused on policy implementations and defeating the coronavirus.

At the same time, some of Yellen’s recent comments have given some cause for concern. At a New York Times DealBook conference earlier this week, the Treasury Secretary bashed Bitcoin for being a tool for illicit finance while also criticizing its inefficiency in transactions and the environmental impacts of mining.

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Author: Jimmy Aki

Genesis Report Shows Investors’ Varying Views on Bitcoin’s Value By 2030

Much has been said about Bitcoin and its recent price rally. The asset’s performance has drawn praise and criticism alike, with multiple speculations floating around on what could happen soon.

While proponents believe this is the beginning of a march towards a six-figure valuation, detractors claim that it is just another bubble waiting to drag investors down. However, a new report shows that many investors are feeling more conservative in their outlook towards it.

A Great Year for Investors

Genesis Mining published its Bitcoin Investor Prediction for 2020. The report shows a varying view of what investors expect to happen to BTC. While some investors are bullish on Bitcoin’s long-term potential, others remain conservative with their predictions.

Genesis Mining started on an explanatory note, giving reasons why Bitcoin has rallied so much in 2020 despite the pandemic. The firm highlighted three reasons: investors’ desire for a safe haven asset, increased institutional adoption, and the decentralized finance (DeFi) market growth.

Genesis Mining also sought the opinion of other Bitcoin investors. The goal was to gain insights into why and how these investors think. Questions asked included their investment level, when they decided to join the Bitcoin market, and why they chose to take the plunge.

Not So Bullish on Long-Term Price

While these questions provided different insights into who the investors were, their price predictions were quite startling. Despite the optimism surrounding Bitcoin’s ability to blitz through alternative assets in the coming years, only 17 percent of surveyed investors expect BTC to surpass $50,000 in value by 2030.

As Genesis’ report showed, there was no visible consensus concerning where Bitcoin’s price will be in the next decade. However, about 16 percent of investors see Bitcoin oscillating around the $10,000 to $20,000 price range.

In general, only 50.2 percent of investors believe that Bitcoin will have risen above the $20,000 mark by 2030.

Those who held incredibly bearish positions gave several reasons for their views. These included the threat of stringent regulations and a possible ban on Bitcoin’s use. They also mentioned reduced market hype and the possibility of CBDCs replacing BTC.

The bulls believe increased adoption and declining trust in traditional currencies would be instrumental to Bitcoin’s rise.

Such a disparity also appears to be the distinction between this rally and the 2017 bull’s run. Investors are more realistic in their predictions than blindly thinking that the gravy train will keep moving.

While the opinions on Bitcoin’s exact value varied, there was more consensus about whether it is the best asset class.

As the Genesis report showed, 66.3 percent claimed that the asset is a better investment option than the dollar. 52.3 percent believe that the asset will bring higher returns than real estate, and 54.5 percent claim the asset beats the United States stock market.

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Author: Jimmy Aki

New Report Traces Origin of Extensive Celebrity Bitcoin Scams to Eastern Europe

Bitcoin scam ads appear to be growing as hackers are looking to capitalize on the asset’s rally.

In a recent investigation, authorities appear to have traced a Bitcoin ad-based scam operation to addresses in Russia.

Russia or Ukraine

Last weekend, The Guardian Australia reported on a significant Bitcoin ad scheme operating for about two years. The scammers use images of several famous people without their consent in articles promoting fraudulent crypto investment schemes. Many of these schemes promise vast returns on activities ranging from crypto investment to mining, hoping to catch unsuspecting victims.

The Guardian had traced five people who reportedly registered hundreds of fake websites related to the scam. All five have addresses in central Moscow, and the news source added that it had submitted the Email addresses for two of the suspects to Google.

The Guardian also reported that the scam could have also originated from Ukraine. It referenced a March 2020 report from the Organized Crime and Corruption Reporting Project (OCCRP), which discovered a call center in Kyiv that ran ads for similar Bitcoins scams.

Keeping the Lawyers Happy

The investigation into the case appears to have been self-preservatory. The company fell into troubled waters with Australian millionaire Dick Smith after his identity was used in an ad campaign to promote fraudulent crypto schemes on The Guardian.

As The Australian reported in October, Smith, who runs an electronics retail store named after himself, threatened to sue The Guardian Australia for defamation. While the ads themselves didn’t feature cryptocurrencies, they linked to fake interviews featuring successful individuals like Smith.

In these interviews, Smith reportedly boasts about making significant gains in his crypto investments. Many of the interviews also reportedly featured attractive headlines like “Get rich in a few days” and “How to make money easy.”

Smith’s lawyer, Mark O’Brien, said at the time that the business mogul was focused on ensuring that the scams come to a permanent end.

“While we acknowledge that The Guardian Australia does take the fraudulent advertisements down once notified, that does not prevent [its] Australian readers from falling victim to this prolific cryptocurrency scam.”

Hoping to avoid any legal case, the news medium appeared to have gone on an investigation spree of its own. Investigations from Google should help bring more clarity to the issue, and the news source will hope to bring the scammers to justice sooner rather than later.

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Author: Jimmy Aki

Zurich Based Sygnum Becomes First Bank to Tokenize its Shares on Ethereum

Sygnum, a Zurich-based digital currency bank, has tokenized its shares according to a recent announcement on the company’s blog post. The bank touts itself as the first of its kind to tokenize shares on a distributed ledger, hence forging a path for the future of public offerings. These shares have been tokenized on the Ethereum blockchain via Sygnum’s tokenization platform dubbed ‘Desygnate.’

This means that Sygnum’s shares can now be accounted for via a blockchain ecosystem, including the associated legal rights and obligations. The blog reads,

“Put simply; this means that digital representations of Sygnum shares, together with associated legal rights and obligations, have been created and are immutably accounted for on a distributed ledger.”

With tokenization in the picture, Sygnum’s share registry will be updated automatically any time there is a capital injection transfer. According to Sygnum, this approach minimizes the counter-party risk attributed to settlements, given the bank will be using distributed ledger tech to manage both primary and secondary market transactions.

This initiative will also eliminate the administrative burden of written share transfer requests embedded in the current market structures. Sygnum Bank co-founder, Mathias Imbach, commented on the underlying value proposition in share tokenization,

“This is an important milestone towards fulfilling our mission of creating more direct and efficient access to ownership and value. This includes new engagement models with our clients and partners, and ultimately providing liquidity for our trusted shareholders.”

In the future, Sygnum plans to list its shares in Switzerland and Singapore via SIX Digital exchange and SBI digital Asset Holdings for the latter market. As reported by BEG, SIX recently completed a CBDC pilot test in collaboration with the Bank of International Settlements (BIS) and the Swiss National Bank (SNB).

It comes as no surprise that Sygnum is already eyeing a public offering in this marketplace. SIX Digital Exchange Head, Tim Grant, said that they are looking forward to the partnership,

“We are excited to partner with Sygnum on this journey and hope to facilitate a successful dual listing across Switzerland and Singapore in the future.”

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Author: Edwin Munyui

Bitcoin Adoption has Achieved Another Milestone; Primed for Additional $600B Demand

According to JPMorgan Chase, Massachusetts Mutual Life Insurance Co.’s recent investment in Bitcoin means there is potential for additional institutional demand for the largest cryptocurrency in coming years.

In its previous report, the analysts at the banking giant had said that the institutional adoption of Bitcoin has just begun.

As for the latest round of $100 million purchase by the 169-year old insurance behemoth, Bitcoin’s adoption is spreading from wealthy investors and family offices to insurance firms and pension funds, wrote the strategists including Nikolaos Panigirtzoglou.

Although pension funds and insurance firms are unlikely to make high allocations, the strategists said even a small shift could be significant for the cryptocurrency.

“MassMutual’s Bitcoin purchases represent another milestone in the Bitcoin adoption by institutional investors,” the strategists said.

“One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example.”

This bullish commentary for Bitcoin didn’t end here; the strategies went to say that if the insurance firms and pension funds in the US, UK, Japan, and Europe allocate just 1% of their assets into Bitcoin, that would see an additional $600 billion in Bitcoin demand.

Currently, the largest cryptocurrency has a market cap of $356 billion.

However, the JPMorgan strategies also wrote that the regulatory hurdles related to risk levels and liability mismatches could limit their Bitcoin allocation for these traditional investors.

Bitcoin is having a great time in 4Q20, in which it has rallied 78% while being up over 166% YTD. After the correction last week, Bitcoin started surging on the weekend, and currently, around $19,100, it is yet again ready to go for the all-time high.

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Author: AnTy

Citi Cuts MicroStrategy’s MSTR Due to CEO’s ‘Disproportionate Focus on Bitcoin’

Calling the recent rally “overextended,” Citi has downgraded MicroStrategy from neutral to sell in its latest report.

MSTR shares are up 168% over the past six months, climbing to a level not seen since 2000. These gains were made on the back of MicroStrategy’s Bitcoin bet. In August, the company first adopted Bitcoin as its primary reserve asset, and last Friday spent another $50 million on 2,574 BTC. During the time, the largest digital asset has rallied a whopping 150% YTD.

MicroStrategy’s commitment to Bitcoin turned the company and its CEO into a fully blown celebrity in cryptocurrency market participants’ eyes. This also got Citron research short on the company to say MicroStrategy is the best way to own Bitcoin in the stock market.

It also had many wondering if MicroStrategy is a software company or a Bitcoin hedge fund. This raises concerns for the company as it will raise questions from regulators who refuse to approve a Bitcoin ETF.

And now, MicroStrategy’s Bitcoin bet that has Citi getting bearish on the company, resulting in the company’s shares losing over 17% of its value in a single day.

Citi’s remarks came after MicroStrategy announced on Monday that it will be issuing $400 million convertible senior notes, proceeds of which will yet again be used to be even more BTC.

The price of Bitcoin also experienced a correction, which extended today. However, currently down around $18,000, a pullback has been expected after the recent rally from $10,000 to $20,000.

Analyst Tyler Radke sees “incremental risks to the story” following the debt issuance to buy more Bitcoin, which has been described as “aggressive” and possibly a “deal-breaker for software investors.” The analyst said,

“MSTR’s bitcoin investment has returned $250M (or worth $26/share or +20% towards stock) since August ’20. While impressive, it pales in comparison to the 172% return in the stock. At the current stock price, our analysis suggests that the market is pricing in much more optimistic valuation scenarios for the core business and Bitcoin.”

Radke further noted that the recent insider selling in MicroStrategy has been “significant and broad-based,” adding its shares may be overvalued.

The analyst also questioned Saylor’s “disproportionate focus on bitcoin.” Radke said,

“We are also concerned that the company could be losing focus on execution with CEO Saylor’s disproportionate focus on Bitcoin vs. running the business and signs of deteriorating employee sentiment.”

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Author: AnTy

China Stance on Crypto Remains The Same; Blockchain, Not Bitcoin

In a recent report by Chinese state media Xinhuanet, the Chinese government wants its citizens to stop paying attention to cryptocurrency but concentrate more on blockchain technology, the technology behind the cryptocurrencies.

China is emphasizing that the current rise of almost all crypto coins could seem very attractive to investors, which may not be permanent.

According to the media report, the warning is to protect the Chinese citizens and residents from making life-damaging investment decisions. However, it encourages citizens to invest more time and resources in Blockchain technology since it can be applied in various industries.

The past few weeks had seen the upsurge of Bitcoin price, as it moved above its previous all-time high achieved in 2017 when it reached $20,000 per Bitcoin. The same story goes for other cryptocurrencies. Some even tripled in price, representing massive investment profits for the crypto holder.

Bitcoin’s direction is uncertain

Various market analysts have predicted on the recent Bull Run and where the market is headed next. Some have even predicted that Bitcoin’s price could reach $100,000 soon, as market indices show.

However, China is advising its citizens not to throw their entire investment bag into Bitcoin because the market is highly volatile. Generally, the country is known to be a strong supporter and advocate of advanced technology. But this time, the government is making a distinction between blockchain and cryptocurrency.

Based on the publication, one of the reasons for the advice against cryptocurrency investment is that no one knows why Bitcoin is rising fast. As a result, the fall can be dramatic and very volatile for some investors to bear.

The Chinese government has always been very protective of its citizens when it comes to investments. In the shared post, the government described Bitcoin’s price as a “hype,” and the risk f trading on the top cryptocurrency is very high, according to the post.

Different views about blockchain and cryptocurrency

But when it comes to the technology behind Bitcoin, China is well known to be an ardent optimist. It has made concerted efforts to develop its blockchain industry and has gone a long way towards developing it’s Digital Currency Electronic Payment (DCEP) system.

The country has already passed the first stage of its DCEP testing. Additionally, China is in the process of developing its blockchain-based network service. Several public chains have already integrated into the network, including EOS, NEO, Tezos, and Ethereum. But it’s the negative stance of Bitcoin and cryptocurrency remains unchanged.

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Author: Ali Raza

IOTA to Launch A New Wallet; Firefly Was Built from the Ground Up for the Chrysalis

IOTA has announced a new wallet dubbed ‘Firefly’ according to a recent tweet by the IoT-focused blockchain foundation. The tweet sent out yesterday revealed that Firefly would replace IOTA’s infamous wallet, Trinity, which was hacked earlier this year.

Dominik Schiener, the co-founder of IOTA, quoted this tweet announcement noting that the chrysalis upgrade will feature many upgrades as the platform prepares to go fully decentralized in the awaited 2.0 upgrade.

“With Chrysalis, we are fundamentally upgrading the entire IOTA stack.

Over the coming weeks, everyone will participate in this new IOTA future and try our new Firefly wallet and Testnet. This will be an exciting new chapter for IOTA and the entire ecosystem!”

The Chrysalis upgrade marked the commencement towards ‘coordicide’ where IOTA’s coordinator will be removed to usher in complete decentralization. As we reported earlier, the chrysalis is the final testnet before the coordinator is removed.

IOTA’s developer, Charlie Varley, who commented on the ‘Firefly’ announcement, further expounded that the prospective wallet has been a work in progress. He added that the new wallet is redesigned from scratch based on the experiences learned from Trinity, with the first alpha expected in the course of 2020,

“Firefly is our new wallet. We are aiming for a first alpha this year. Taking everything we learned from Trinity, we redesigned it from the ground up.

In 2021 we will add additional features like contacts and chat. Firefly will set a benchmark for user-facing apps in crypto.”

In February, the Trinity wallet had been compromised, an attack that resulted in the loss of $1.6 million user funds, although this was later reimbursed by IOTA’s co-founder David Sonstebo. IOTA is now looking to improve its ecosystem’s security with the 2.0 launch, which is anticipated to take place in Q1, 2021 when the coordinator is replaced by coordicide.

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Author: Edwin Munyui

GoDaddy’s DNS Hack Is at the Center of Several Crypto Domains Being Compromised: Report

  • Several cryptocurrency companies were targeted in the recent hack on GoDaddy.com, the largest global domain manager, including Japan-based crypto exchange Liquid.com and crypto mining service, NiceHash.

Earlier this month, BEG reported that Japan-based cryptocurrency exchange, Liquid.com, experienced a data breach hack, affecting the users’ Know your Customer (KYC) information. The attack follows GoDaddy’s, the world’s largest domain registrar, an incursion that saw hackers trick the firm’s employees into transferring ownership and control over targeted domains.

In an analysis of the recent intrusions, Krebs on Security, a cybersecurity website, reported four more cryptocurrency firms were target to phishing and “vishing” attempts, similar to Liquid exchange.

In a letter shared to crypto traders on its exchange, Liquid.com CEO Mike Kayamori stated that several customers’ data, including email addresses and passwords, were compromised following malicious attacks on their domain registrar, GoDaddy. Mike stated,

“A domain hosting provider ‘GoDaddy’ that manages one of our core domain names incorrectly transferred control of the account and domain to a malicious actor.”

This allowed the attacker to control and change the domain name system (DNS) and control some email accounts at Liquid exchange. This allowed the attacker to compromise some of the exchange data and gain access to the firm’s document storage.

NiceHash, a cryptocurrency mining service, was also compromised from GoDaddy’s malicious attack, the report stated. Five days after Liquid noticed the attack, NiceHash also found out that its domain registration records were being changed without authorization. To secure the customers’ funds, the crypto mining service shut down their website for 24 hours, resuming operations a day later. A blog post from the company reads,

“In the early morning (UTC) hours of November 18, 2020, the NiceHash domain was not reachable. The domain registrar GoDaddy had technical issues, and as a result of unauthorized access to the domain settings, the DNS records for the NiceHash.com domain were changed”.

An analysis of the hackers’ accounts showed that the affected domains were redirected to set email addresses and websites. Further research shows three other crypto firms, including Bitbox, Celsius.network, and Wirex.app, could also have been affected.

GoDaddy’s spokesperson, Dan Race, confirmed the attack affected its employees’ details through phishing and voice phishing hacks. His statement further reads,

“As threat actors become increasingly sophisticated and aggressive in their attacks, we are constantly educating employees about new tactics that might be used against them and adopting new security measures to prevent future attacks.”

This attack is similar to the recent Twitter hack in July, whereby hackers compromised over 130+ high-profile accounts in an established cryptocurrency scam. The firm’s employees were tricked using social engineering to take over the company’s administrative tools.

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Author: Lujan Odera

SEC Chairman: Bitcoin Will Be Subject To ‘More Regulation’ As It Matures Into A Payment System

SEC Chairman Jay Clayton reiterated in his recent interview with CNBC that Bitcoin is not a security. However, more regulation could still be on the way from other government agencies, he added.

According to him, the leading digital asset resembles a store of value and a payment method. And it has been the “inefficiencies” in the traditional payment mechanisms that are boosting Bitcoin’s growth.

But if BTC becomes famous as a payment method, it can be subject to more regulation. Clayton told CNBC,

“I think we will see this maturation, and I think there will be more regulation in the payments (for bitcoin) area.”

“This is why Bitcoin should be neither a currency nor a payment network. The principles of humility & harmony dictate that we should allow technology partners to provide for payments & defer to governments on currency matters. BTC is a purely engineered Store of Value,” commented the CEO of MicroStrategy, Michael Saylor, who has emerged as a leading vocal Bitcoin proponent ever since his company replaced cash with BTC as a reserve asset.

Clayton will be stepping down from his position as the SEC Chairman by the end of this year, and the crypto community is excited, expecting the Bitcoin ETF to get the approval finally.

According to analyst Mati Greenspan, Clayton has been “single-handedly” responsible for holding back the progress of a Bitcoin ETF, and “him leaving is really good for Bitcoin & crypto.”

In his interview with CNBC on Thursday, Clayton further elaborated on why the SEC isn’t regulating Bitcoins currently.

“We do not regulate Bitcoin as a security. When people use crypto assets as securities to raise capital for a venture, the SEC regulates that.

And what was happening in the ICO craze was people were using ICOs and essentially making public offerings of securities without registering them with the SEC.”

Very clearly, Clayton has said that the SEC determined “Bitcoin was not a security” but “much more a payment mechanism and store of value,” adding “the government does regulate payments.”

Clayton has been in conversation with Squawk Box host Andrew Ross Sorkin who recently hosted Jamie Dimon, the CEO of JPMorgan, who still has no love lost for Bitcoin.

Dimon said Bitcoin is “not (his) cup of tea,” and if it continues to get bigger and bigger, it will be “regulated.” “My experience with the government is they can regulate whatever they want whenever they feel like it,” coped Dimon.

This may sound like Ray Dalio, who is also concerned about the government outlawing it. Still, the founder of the world’s largest hedge fund Bridgewater Associates recently came out and said that he might be missing something about Bitcoin and “would love to be corrected.”

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Author: AnTy