Federal Reserve Chairman Jerome Powell to Speak About Digital Currencies Today

As part of a panel on “Cross-Border Payments—A Vision for the Future,” at the International Monetary Fund’s (IMF) annual meeting, Federal Reserve Chairman Jerome Powell will speak about digital currencies Monday.

The panel will start at 8 a.m. ET on Oct. 19.

During this virtual event, while discussing the potential solutions to enhance the cross-border payments, the “benefits and risks” of digital currencies and their macro-financial implications will also be covered.

“On Monday, Jay Powell gives his input on central bank digital currencies at the IMF talk listed above. Central Bank digital currencies are coming, and they will change everything… They are coming under stealth of X-border payments but it means so much more…” said former hedge fund manager Raoul Pal, CEO of Real Vision Group.

It is, however, not mentioned if Powell would be sharing his thoughts on a digital dollar.

Other panelists include Agustín Carstens, general manager of the Bank for International Settlements (BIS); Ahmed Abdulkarim Alkholifey Governor of the Saudi Arabian Monetary Authority; and Nor Shamsiah, governor of Bank Negara Malaysia with IMF Managing Director Kristalina Georgieva as the moderator.

You can watch live here:

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Author: AnTy

Bitcoin SV (BSV) On Death Spiral As Miners Flee The Blockchain After Reward Halving

The mining of block #630,000 on the Bitcoin Satoshi Vision network, truncated to Bitcoin SV, on April 10th 0048 hours GMT, effectively cut the supply rate of the token by half. A miner mining any block from the halving time will receive 6.25 BSV – a fact that is affecting the overall state of mining on the network as miners escape to the more profitable Bitcoin blockchain.

BSV completes halving, miners in limbo

There has been a general consensus a halving is healthy for asset prices. This because of the assumption that reducing the reward would lead to a sense of scarcity for the asset. That being so, the rewards for mining each block are expected to drop by half as predicted. From 12.5BSV to 6.25BSV.

With the halving, the new daily output of BSV blocks jumps to 900. This means all of the current miners are competing for the same 900 blocks daily. At current prices, this would amount to $200k per day possible.

BSV currently trades at $191, a huge 12% dip from intraday highs shortly before the halving happened. This has raised the fears across the community and miners who have seen their profits cut by more than half –enticing most to switch coins or effectively shut down their miners.

C:UsersUSERDownloadscoin-dance-bitcoinsvprofitability.png
Source: Coin.Dance

According to Blockchair’s Bitcoin SV explorer, in the past 12 hours since the halving, only 24 blocks have been mined – a huge disparity from at least 72 blocks that should be mined. Currently its 70% more profitable to mine BTC than BSV.

Latest Bitcoin SV Blocks by Mining Pool
Source: Coin.Dance

Bitcoin Cash also halved completed halving on Wednesday

Notably, Bitcoin Cash (BCH) also underwent the halving event on Wednesday triggering a similar reaction from the miners and the market after the 630000 block was mined by Antpool. Their transaction per second rate tumbled from 116tps to 1.1tps. The mining profitability post halving also dipped to over 80% that of Bitcoin and with the mining difficulty not dropping led to a mass exodus of miners who are mainly profit-motivated.

This has spooked the community as consequently, the hash rate has dropped raising security concerns. A significant exodus of miners would leave the network vulnerable to a 51% attack meaning it wouldn’t be impossible for rogue actors to reach the 50% threshold required to fully control the network.

Bitcoin halving is expected to occur in 34 days from this writing May 13th 2020.

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Author: Lujan Odera

Former Goldman Sachs Fund Manager Suggests Allocating 25% in Bitcoin

When Raoul Pal, the former hedge-fund manager who founded Real Vision first learned the coronavirus was spreading rapidly, he thought, “The whole world’s f—ed,”.

“I said: ‘Listen, this is the biggest economic event of all of our lifetimes — and it’s coming. And that was, in retrospect, the greatest call I’ve ever had,” said Pal on the “Lindzanity” podcast while recalling how in a span of three to four days the spread hit Iran and then Itay.

Pal who quit his jobs at Goldman Sachs and GLG Partners and now writes market research for his Global Macro Investor also predicted in October that the Federal Reserve needed to cut interest rates to zero and warned of them falling into negative territory.

A crisis like no other

According to Pal, the pandemic will cause “the largest insolvency event in all history.” He added,

“I think the balance of probabilities is that this is a much longer event — in terms of economic impacts — than anybody is pricing in. I think it’s a huge societal change that’s coming from all of this.”

The isolation will make people more local and lead to complications in supply chains, he said. Bond king Jeffrey Gundlach is of a similar opinion who recently said that we are going to be “much more, less-connected to globalization.”

Last week, Kristalina Georgieva, head of the International Monetary Fund (IMF) also said that it is a “gigantic” problem and a “crisis like no other, (…).” Never in the history of the IMF have we witnessed a situation in which the world economy came to a standstill.”

“This is either zero or it’s millions”

Already, the norovirus caused the Dow and the S&P 500 to have their worst first quarter. But those projecting sharp V-shaped recovery in the last two quarters of this year, in Pal’s opinion are incorrect in their assumptions. He is expecting another 20% downside before “3- or 4-month bounce of hope.”

As coronavirus drags on without production and consumption, it heightens the risk of bankruptcy and deflation. Under these circumstances, Pal suggests allocating 25% of your portfolio to Bitcoin, gold, cash, and trading opportunities each.

While the world’s leading cryptocurrency dropped over 40% in line with the stock market, it has recovered 84% of its value since then.

Social Capital CEO Chamath Palihapitiya, an early Bitcoin investor who back in 2013 owned about 5% of the entire BTC, believes “This is either zero or it’s millions.”

A former Facebook executive, he said currently it is still a speculative investment but “the path dependence for Bitcoin is if it looks like [debasement] is likely, it will really emerge as a flight to safety,” Palihapitiya said.

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Author: AnTy

Ethereum 2.0 Is All About Scaling Says Vitalik Buterin While Sharing His Vision for ETH

Ethereum 2.0 might be not any closer to happening than it was before but co-founder Vitalik Buterin has its vision of what he wants it to be.

Ethereum is the second biggest blockchain platform after Bitcoin by market capitalization. As we recently reported, during the heightened market activity the network got congested resulting in the unconfirmed transactions spiking up along with the gas prices.

Now, Buterin took to Twitter to share what the next 5 to 10 years of ETH 2.0 and beyond might look like, with a special focus on scalability.

Over the last about two years, Buterin said there has been a solid shift from the “blue sky” research as they try to understand what exactly is possible and to optimize specific primitives that are implementable.

The focus during this time has been on maintaining compatibility and ensuring a smooth transition for applications, “making eth1.x and eth2 fit together as part of a coherent vision.”

The market is volatile and fast-paced but Buterin maintains that it will be worth it for both security and scalability. But it is subject to change as new information or technology comes into the light.

Reducing Complexity

The Ethereum 2.0 will mark the transition from proof-of-work (PoW) to proof-of-stake (PoS), which will bring fundamental changes to the network.

Buterin specifically talked about Zero-Knowledge Proofs (ZK-SNARKs) which he previously said could scale Ethereum. Privacy-based technology, ZK-SNARKs make it easier to send anonymous crypto transactions.

Sharding is another technology that has long been considered by Ethereum for scalability that splits the blockchain up, making it lighter to keep the network running. “Sharding allows massive scaling, much higher than the capacity of a single computer, and rollups give us an extra 2 orders of magnitude of scaling in top. Eth2 is all about scale,” said Buterin.

Both combined, Buterin said would accommodate more transactions and make the network cheaper to use.

All of the changes in the Ethereum network, Buterins said, are in the direction of “reducing complexity.”

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Author: AnTy

Binance Controls More than Half of Voting Power on Tron Network

  • “Decentralize the Web” is Tron’s vision but how decentralized it really is?
  • Ethereum founder Vitalik Buterin has been calling it a “centralized piece of trash” all along, however, about 62% of ETH nodes are running on centralized cloud services.

Recently, DigiByte founder Jared Tate also went ballistic on Twitter, talking about being “disgusted” with Tron – a “completely centralized” network hyping itself as “the most decentralized gift from god.”

In the blockchain and crypto industry, nothing really is decentralized, not as of yet!

When it comes to Tron, more than half, 56% of the New York voting power is controlled by the world’s leading cryptocurrency exchange Binance, according to TronScan.

“If they split their votes across 25 nodes, they’d have 499k per node and would control 25 out of 27 validating nodes. Decentralization theater. Centralized exchanges are an existential threat for crypto,” said Epicenter podcast co-host Brian Fabian Crain.

Binance became the highest-ranked Tron Super Representative in September this year with 12 billion votes while announcing support for TRX staking as well.

Tron has the top 27 Super Representatives among the 127 candidates that are voted on once every 6 hours. These Super Representatives play a key role in governing the Tron ecosystem as they ensure basic functions like block generation, bookkeeping, and package transactions while also having the right to participate in the voting of TRON network parameters proposals.

These 27 SRs are awarded a total of 336,384,000 TRX annually.

Although for Binance, Crain says, it “makes perfect sense from the point of view of delivering a better product for their users (…) even if it undermines the long-term viability of crypto.”

Tron founder and CEO Justin Sun also has “a huge bag” of Binance’s native token BNB along with other native tokens of crypto exchanges where TRX is listed, revealed Sun last month.

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Author: AnTy

Is There A Point In Running Your Own Ethereum Node Now?

  • “If we don’t stop relying on Infura, the vision of ethereum failed.”
  • This was Afri Schoedon, former Ethereum Core developer who quit the project in early 2019, describing the technology in October 2018.

As of last year, Infura was reportedly handling around 13 billion code requests per day and underpinning the majority of decentralized applications (dapps) in the Ethereum ecosystem.

However, Infura has been operated by a single provider, ConsenSys. As such, there were concerns about a single point of failure for the entire network.

Also, Joseph Lubin, the co-founder of Ethereum who also founded ConsenSys is an investor in Infura.

Now, on Oct. 4, ConsenSys fully acquired Infura announcing,

“…We’ve decided that a future inside ConsenSys is the best future for our team, our users and this rapidly emerging ecosystem.”

Back in 2018, Michael Wuehler, the co-founder of Infura, told CoinDesk,

“If every single dapp in the world is pointed to Infura, and we decided to turn that off, then we could, and the dapps would stop working. That’s the concern and that’s a valid concern.”

He further stated at that time that any dapp that uses Metamask is also “inherently” dependent on Infura, as a matter of fact, “nearly all dapps potentially depend on Infura.”

And this raises the bigger concern, decentralization applications are basically built on centralized services.

Centralization Issues Go Deeper

Moreover, more than 60% of the Ethereum nodes are running on the cloud, with the majority of them on Amazon Web Services (AWS). It operates almost 25 percent of all Ethereum nodes.

Comprised of 8,933 nodes, only just over 34 percent are hosted independently while the top 10 cloud hosting providers amount to over 57% of all Ethereum nodes. Furthermore, Alibaba Cloud, Google Cloud Platform, DigitalOcean, and Hetzner together host a major chunk of the network.

In such a case, if one day Amazon wants Infura no more, 25% of the network will be suddenly working no more. And if the rest of the cloud provider were to do the same, over half of the network will go dark.

Recently, cryptocurrency exchanges like Binance had problems with withdrawals due to AWS failures. Last year as well, South Korean exchanges were forced offline after AWS servers suffered nationwide failure.

This is certainly a real risk for a blockchain that is supposed to be decentralized but only seems to be making a move to centralization.

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Author: AnTy

Calvin Ayre Claimed The Court Ruled Craig Wright Is Satoshi, Invented Bitcoin But Was Wrong

The controversial duo responsible for Bitcoin Satoshi Vision (BSV) has come under the fire of the crypto community once more. Calvin Ayre has claimed that his business partner Craig Wright has been proved in court to be Satoshi Nakamoto, the creator of Bitcoin. He lied.

This is just the most recent of the duo’s controversies. Craig has been on the spotlight since he affirmed that he was the creator of Bitcoin, which almost no one believed. Ayre is somewhat less controversial, but this time he made a mistake when he claimed that the judge ruled that Craig was Satoshi.

According to him, during the case in which Craig is being accused of stealing $10 billion worth of BTC from his late partner, the judge understood that Craig invented BTC. However, the judge has absolutely not said that in any moment of the judgment.

Crypto Twitter promptly attacked Ayre by affirming that this was not the truth. At the moment, it is unknown how Ayre came to this conclusion despite all the proof that this is not what happened.

The Bitcoin SV Fiasco

The reputation of both Ayre and Wright took a hit last year when they decided to hard fork from Bitcoin Cash (BCH) back in November and create their own token. BSV had a pretty rocky history since then and several problems.

At the moment, the token is considerably less valuable than BCH. BCH is the 4th largest token by market cap with the price of $294 per token and BSV is only the 9th largest one, with the price of $126 USD.

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Author: Nirmala Velupillai