Over 160 Projects Are Launching on Terra by Early Next Year to ‘Amplify Demand for UST’ and Send it to $10 Bln

Over 160 Projects Are Launching on Terra by Early Next Year to ‘Amplify Demand for UST’ and Send it to $10 Bln, says Founder

As demand for UST rises with more projects joining the Terra ecosystem, it will accelerate “the expansion of the stablecoin supply and accruing value to LUNA holders,” said co-founder Do Kwon.

More than 160 projects will be launched on the South Korean blockchain project Terra by early next year, said co-founder Do Kwon in an interview with Asia Markets.

Terra is an algorithmically governed stablecoin platform with $8.86 billion worth of assets locked in it. According to DeFi Llama, currently, eight primary projects are running on it.

The money market project Anchor currently accounts for 39.3% of Terra’s all TVL at $3.5 billion, followed by Lido ($2.52 bln), Mirror ($1.28 bln), and TerraSwap ($1.14 bln).

But soon, the number of projects on Terra will increase significantly due to a “smooth” upgrade of the Terra network to ‘Columbus-5’ last month, he said.

“Now that Columbus-5 is live, more than 60 projects are preparing to launch in the next six to eight weeks, and more than 100 have recently announced plans (for) the end of the year or early 2022,” Kwon told the publication last week.

The launch of more projects on the platform will “amplify the demand for UST,” he added. TerraUSD (UST) is a stablecoin that attempts to maintain a value of $1 but isn’t backed by US dollars in a bank account; rather, to mint 1 UST, $1 worth of LUNA, the reserve asset of TerraUSD, is burned.

As demand for UST will rise with more projects joining the Terra ecosystem, it will accelerate “the expansion of the stablecoin supply and accruing value to LUNA holders,” Kwon said.

The native token of the protocol LUNA is currently a $14.38 billion market cap cryptocurrency which is up 5,364% YTD but still down 48% from an all-time high of $50 two weeks back.

Ambitious Targets

Columbus-5 has been the most significant upgrade ever since the launch of the Terra protocol, which has been in the works through this year and required numerous upgrades to the Terra core.

This upgrade is expected to help enhance the protocol’s scalability and interoperability. As Kwon said, Columbus-5 also updated “some of the economic mechanics of the protocol so that 100% of seigniorage generated by the expansion of the UST supply is burned, augmenting the per-unit value capture of LUNA as the demand for UST grows.”

Earlier this year, Kwon predicted UST’s market cap to exceed $10 billion by the end of this year, but currently, it stands at only $2.74 billion. Still, according to Kwon, his target is achievable.

Not only dozens of projects have been “anxiously” awaiting Columbus-5’s launch to release their mainnets, he said, adding: regulatory action against the most popular centralized stablecoins like USDC and Tether (USDT) has “reinvigorated the emphasis for a decentralized stablecoin in crypto like UST.”

The founder further pointed out that custodial stablecoin models do not scale well and “serve as hubs of risk in a decentralized financial stack,” as such, he expects the adoption of decentralized stablecoins to only increase from here on.

Additionally, the launch of IBC will enable UST to be exported to any IBC-enabled chain, particularly Cosmos chains and ThorChain, and flow freely outside of Terra. Wormhole support — a cross-chain bridge to Solana, Ethereum, and BSC — meanwhile will allow UST to be ported to the largest chains by TVL. ATOM -1.85% Cosmos / USD ATOMUSD $ 31.86
-$0.59-1.85%
Volume 313.52 m Change -$0.59 Open $31.86 Circulating 223.13 m Market Cap 7.11 b
7 h Over 160 Projects Are Launching on Terra by Early Next Year to ‘Amplify Demand for UST’ and Send it to $10 Bln, says Founder 3 d Decentralized Smart Contract Platform, Cypherium, Joins China’s BSN to Boost Blockchain Development 3 w South Korea’s Largest Crypto Exchange Operator Raises $85 Million at an $8.65 Billion Valuation
RUNE -1.39% THORChain / USD RUNEUSD $ 7.66
-$0.11-1.39%
Volume 34.42 m Change -$0.11 Open $7.66 Circulating 224.41 m Market Cap 1.72 b
7 h Over 160 Projects Are Launching on Terra by Early Next Year to ‘Amplify Demand for UST’ and Send it to $10 Bln, says Founder 5 d New Non-Custodial, Cross-Chain Browser Wallet to Compete with MetaMask by Focusing on DeFi and NFTs 1 mon DeFi Autumn after Solana Summer? Traders Still Short as Bitcoin Jumps to $48k and Ether to Nearly $3,700
SOL -2.02% Solana / USD SOLUSD $ 157.26
-$3.18-2.02%
Volume 1.68 b Change -$3.18 Open $157.26 Circulating 300.54 m Market Cap 47.26 b
7 h Over 160 Projects Are Launching on Terra by Early Next Year to ‘Amplify Demand for UST’ and Send it to $10 Bln, says Founder 11 h Over $2 Billion in New Money Has Flowed into CME Bitcoin Futures This Month 3 d Decentralized Smart Contract Platform, Cypherium, Joins China’s BSN to Boost Blockchain Development
ETH -2.74% Ethereum / USD ETHUSD $ 3,752.44
-$102.82-2.74%
Volume 17.24 b Change -$102.82 Open $3,752.44 Circulating 117.98 m Market Cap 442.72 b
7 h Over 160 Projects Are Launching on Terra by Early Next Year to ‘Amplify Demand for UST’ and Send it to $10 Bln, says Founder 11 h Over $2 Billion in New Money Has Flowed into CME Bitcoin Futures This Month 2 d Euphoria is Back Ahead of ETF Listings: Bitcoin Hits $63k and Ether Nearly $4k as NYSE Certifies “Approval for Listing”
BNB 2.94% Binance Coin / USD BNBUSD $ 484.82
$14.252.94%
Volume 2 b Change $14.25 Open $484.82 Circulating 166.8 m Market Cap 80.87 b
7 h Over 160 Projects Are Launching on Terra by Early Next Year to ‘Amplify Demand for UST’ and Send it to $10 Bln, says Founder 5 d China Update: Binance, OKEx, and Gate Kicks Out CNY & Existing Users, WeChat Blocks Searches, Mining Share Goes to Zero 6 d BSC Is Back in the Game as Binance Announces $1 Billion Incentives Program to Pump the Ecosystem

“We fully expect the demand for UST in cross-chain environments to accelerate the expansion of the UST supply further, potentially reaching the $10 billion market cap mark by year’s end.”

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Author: AnTy

Global Bitcoin ATM Installation Shoots Past 24,000 In 2021: Report

This year has seen a sharp increase in the number of crypto automated teller machines (ATMs) installed worldwide. Data from Coin ATM Radar shows that crypto ATM installation has increased by more than 70% to over 24,000 this year.

Over 10,000 Crypto ATMs Installed In 2021

No less than 10,000 new crypto ATMs have been installed this year alone, surpassing the 7,620 added in 2020, per Coin ATM Radar. These crypto ATMs are being installed at a speed of roughly 52.3 ATMs per day.

At press time, the crypto ATM tracker reported a total of 24,004 crypto ATMs globally. This represents a 71.73% growth from the 13,993 crypto machines earlier this year.

The US takes the lead for the country with the most installations, according to the report. There are over 21,161 ATMs in the US alone. Canada closely follows the US with 1,698 locations and the UK with 174 locations.

In terms of the manufacturers of the mahines, Genesis Coin tops the list with a total of 9,813 machines installed. This is closely followed by General Bytes with 5,720, Bitaccess with 2,766, and Coinsource with 1,684 machines.

The ATMs are operated by more than 600 different companies. Bitcoin Depot controls the market with about 15.8% market share.

Crypto ATM Operators Sealing Partnership Deals

Earlier this year, Bitcoin Depot started its expansion plans when it launched 115 kiosks across 24 US states, including Alabama, Minnesota, Florida, and California.

Bitcoin Depot has continued to grow its reach. Just last week, the crypto ATM operator sealed a partnership with convenience store chain Circle K.

Through this collaboration, Bitcoin Depot plans to expand its ATMs by installing over 6,000 kiosks across North America by the end of 2021.The partnership has resulted in the installation of more than 700 Bitcoin ATMs in the US and Canada.

Other operators like Coin Cloud and CoinFlip have also signed partnerships with celebrities to boost their operations. Coin Cloud partnered with Oscar-winning filmmaker Spike Lee to promote cryptocurrency ATMs in an ad campaign.

The multimillion-dollar media campaign was tagged “The Currency of Currency” and was directed by Lee.

Last month, Coinflip also partnered with actor and bitcoin investor Neil Patrick Harris on a marketing campaign. The campaign titled “So Flippin’ Easy,” was aimed at promoting cryptocurrency investing.

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Author: Jimmy Aki

Crypto Custodian, Prime Trust Ends One Year Relationship with Crypto Lender, Celsius

Crypto Custodian, Prime Trust Ends One Year Relationship with Crypto Lender, Celsius

  • Crypto custodian Prime Trust is set to stop providing services to crypto-earning app Celsius in the coming month.
  • A source familiar with the matter stated the hypothecation of users’ assets as the core issue.
  • Celsius also halted its services to UK residents recently.

Prime Trust, a crypto custodian, is ending its one-year relationship with the crypto lending firm Celsius in the coming 30 days. Prime Trust, however, withheld the actual reason to stop offering custodial services to Celsius in a statement released on Thursday.

According to one spokesperson, Prime Trust noticed suspicious red flags in Celsius way of doing business and will start cutting off Celsius users from its platform. Once the 30 day notice period elapses, the custodial will lock off all APIs from Celsius, denying users access to its custodial platform.

The termination letter sent out by Prime Trust claims a “variety of business factors” caused the split – ending the successful one-year relationship between the two firms. The statement further reads,

“We won’t comment beyond that other than to wish Celsius well in its endeavors.”

Sources familiar with the matter claim that Prime Trust ended the Celsius partnership due to the latter “endlessly hypothecating users’ assets,” which deems dangerous to its business structure. Hypothecation means lenders, bankers, and brokers using users’ assets posted as collateral for their own gain. Prime Trust sees this trend as a dangerous one for its business hence the cut-off.

This is not the first time Celsius is hanging on its public image. In April, the crypto lender suffered a data breach that exposed its users’ data through a third-party mailing list.

Responding to the claims, a spokesperson from Celsius vehemently denied any hypothecation by the lender. The spokesperson explained that they are leaving the partnership with Prime Trust because the services offered to New York clients are not up to standard with Celsius. The statement reads,

“Since Celsius started offering its services to NY residents, it has never re-hypothecated their crypto assets.”

“Unfortunately, the level of service provided to our NY users through our partnership with Prime Trust was not at the level Celsius users are accustomed to, and therefore we are planning to proceed with an alternative solution for our New York state users.”

Celsius is moving out of the U.K.

Celsius recently announced it would leave the United Kingdom and withdraw its temporary registration application with the Financial Conduct Authority (FCA). The crypto lender stated uncertainty in crypto regulations as the main reason for the exodus.

Celsius will focus its efforts in other countries – especially the U.S. – by “securing licenses and registrations in the country and other jurisdictions that will ensure the long-term viability of Celsius and its community,” its statement read.

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Author: Lujan Odera

DeFi Protocol Balancer Rolls Out $2M (or 1000 ETH) Bug Bounty Program Ahead of V2 Launch

Following a tumultuous year for decentralized finance (DeFi) projects, many liquidity providers and automated market makers (AMMs) are looking for solutions to address the growing menace of cyberattacks.

Generalized AMM protocol Balancer Labs, which previously lost $500,000 worth of tokens through a security breach, has opened the floor for ethical hackers to test its newly released V2 single-vault security protocol.

$2 Million For The Best Hacker

Balance Labs is looking to secure its network from malicious attacks with what it has termed the “biggest bug bounty” in DeFi’s history.

According to the non-custodial portfolio manager, it will be giving away 1,000 ETH or $2 million to any white-hat hacker that discovers vulnerabilities within its V2 smart contracts vault.

The DeFi protocol said that this prize is meant to reward ethical hackers who can discover backdoors through which malicious actors may infiltrate its newly launched V2 smart contracts architecture.

This open-source platform is scheduled to be available on the testnet starting on Tuesday.

According to the bug bounty website, these vulnerabilities are classified into critical, high, medium, and low, with critical vulnerabilities receiving the top prize of 1,000 ETH. Solutions for low-level defects will only attract 5 ETH or $10,000.

It also went further to state that critical vulnerabilities lead to the draining of investor funds from the vault or permanent locking of these funds in the vault.

High exposures would prompt severe rounding errors where a bad actor can steal funds over any gas costs or swap fees, while medium defects would be minor rounding errors that allow an attacker to gradually doctor balances to their advantage.

Low-level vulnerabilities are those that are mainly information and code quality-based disclosures. The liquidity provider also stated that vulnerabilities previously discovered during formal audits would not be eligible for the rewards.

Speaking on the latest development, company CEO Fernando Martinelli noted that the bug bounty program is meant to build a developer community that will help to create a better Balancer platform for all investors.

DeFi Security Breaches Growing Unchecked

In a report published by blockchain analytics firm CipherTrace in November 2020, in the first half of 2020, DeFi projects were major targets of criminals with a 45% success rate.

This saw over $51.5 million lost to cyber criminals during the period. In the closing months of 2020, DeFi hacks rose to 50%, with the affected crypto projects losing over $47.7 million in the process.

It also said that DeFi hacks made up 21% of all crypto-related crimes. This, according to the document, is because cryptocurrencies have continued to boom as more investors are coming into the crypto space.

And this has not ceased even with the growing prosecution of crypto criminals. In a statement posted last month, decentralized exchange platform DODO DEX said that it lost $3.8 million to a cyberattack. Even though the company has said it expects $1.88 million to be recovered, crypto thefts have continued to boom unhindered.

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Author: Jimmy Aki

Privacy-Focused Messaging App, Signal Launches Crypto Payments Through MobileCoin

  • Signal, the private messaging app, launches a mobile payment system.

Following an impressive year in the messaging industry, Signal, the popular private messaging app, is launching mobile payments system, mobilecoin (MOB). According to a statement by Signal founder Moxie Marlinspike, who has been an adviser to the project for the past three years, the new payment system aims to provide a simple and private platform to send payments. The platform is built on Stellar blockchain leveraging the blockchain’s scalability and instant payments network.

The platform will launch a beta project first before rolling out the full product, a blog post confirmed on Tuesday. At launch, the beta phase of Signal’s payment service will only be available to U.K. customers enabling them “to send and receive privacy-focused payments as easily as sending or receiving a message.”

Users will send funds, receive funds, keep track of their balances, and review their transaction history directly from the Signal app. MobileCoin aims to improve privacy in financial transactions; hence the app will not have access “to your balance, full transaction history, or funds.” The app also allows users to transfer funds when they switch to another app or service.

The coin will be available to eligible users only on FTX exchange.

However, some analysts look at this as a step back for Signal, who have made their name in enhancing privacy via encrypted messages. “Signal as an encrypted messaging product is really valuable,” Matthew Green, a member of the Zcash Foundation board, said.

“Speaking solely as a person who is really into encrypted messaging, it terrifies me that they’re going to take this really clean story of an encrypted messenger and mix it up with the nightmare of laws and regulations and vulnerability that is cryptocurrency.”

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Author: Lujan Odera

Fortress Investment Offering an Early But Discounted Payout to Mt. Gox Creditors

Fortress Investment Offering an Early But Discounted Payout to Mt. Gox Creditors

Instead of waiting another year and a half, the SoftBank Group-owned company offers a liquidity option for creditors now.

Fortress Investment Group LLC is offering the creditor of the now-defunct cryptocurrency exchange Mt. Gox an earlier payout. Since 2017, Fortress has been owned by SoftBank Group.

However, this will be a discounted payout to what the creditors would get under a trustee-backed proposal set for a vote in October. According to Bloomberg, this is the highest value that a private equity and hedge fund firm has ever offered creditors.

The Civil Rehabilitation plan from Mt. Gox’s trustee set for an October vote would refund credits about 90% of their claim value while Fortress is offering about 80%. Fortress is using a calculator constructed by Mt. Gox creditor Kim Nilsson to determine the payout value of a claim.

However, the rehabilitation plan payments are not likely to occur until mid-2022, unlike Fortress, which offers liquidity now.

While there is no certainty that creditors will approve the plan, Fortress figures investors don’t want to wait and may choose to cash out now; as such, they have been now sending out thousands of letters to Mt. Gox creators.

“Rather than waiting another 1 to 1.5 years, we are offering a liquidity option for creditors who want to receive cash or BTC now,” said Michael Hourigan, managing director at Fortress.

Creditors would get the amount owed in either cash, Bitcoin (BTC), or Bitcoin Cash (BCH) based on their deposits, under the Fortress proposal.

For years, Fortress has been buying up Mt. Gox claims, offering as little as $600 per BTC and as much as $1,300 per BTC. Bitcoin price, meanwhile, has risen to a record nearly $62k.

Japan-based Mt. Gox that was launched in 2010, was once the world’s biggest Bitcoin exchange, handling more than 70% of all BTC transactions worldwide in 2013. That is until it lost thousands of customers’ bitcoin in a hack.

Some of the holdings were found, and the trustee is working to reimburse creditors for years now as the process gets delayed by lawsuits.

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Author: AnTy

Chinese New Year, the Year of Ox (Bull), is Finally Here as Crypto Market Aims for the .5 Trillion Mark

Chinese New Year, the Year of Ox (Bull), is Finally Here as Crypto Market Aims for the $1.5 Trillion Mark

The bullish tailwinds for the Bitcoin market hold strong with negative rates, bond purchases, fiscal stimulus, a weaker dollar, mainstream adoption in this year of bull.

Chinese New Year is finally here. The festival celebrated around the world on Friday marks the beginning of the Lunar New year. The Chinese New Year is also called the Spring Festival.

Each year has an animal sign in the Chinese Zodiac, and this is the year of Ox. As an analyst, Mati Greenspan says, “The qualities of this particular four-legged animal are not so different from those of bitcoin itself,” very slow and steady paced but moves only forward and with a sense of purpose.

The crypto market has already been enjoying an uptrend ever since last year, with the overall market cap ready to hit $1.5 trillion, as per CoinMarketCap.

While Bitcoin seems primed for $50k, the fully diluted market cap of the leading cryptocurrency has already surged past the $1 trillion mark. The reported market cap still has a way to go, as the highest level was hit on Friday at $898 billion.

Going forward, Bitcoin is “quickly approaching the two-year MA multiplier upper resistance, currently at $56k,” as per trader Josh Olszewicz. “Ideally, we tap somewhere near $56k, slow down a bit, reconsolidate at the midline, then make the move past the resistance (ala 2017),” he said.

Bullish Tailwinds

Bitcoin hit a new ATH at $49,000 this week as the institutional adoption of the market continues to grow with more and more people and companies embracing cryptocurrencies.

With the names like Tesla, BNY Mellon getting in, it is expected to lay down the groundwork for even more mainstream adoption of cryptos.

The weakness in the dollar also helps the markets, currently around two-week lows after the release of weaker-than-expected weekly US jobless claims data, which is denting investors’ expectations about the pace of the economic recovery. Westpac strategists wrote,

“The U.S. economy will outperform most thanks to fiscal stimulus and faster vaccine deployment, but ongoing reflationary fiscal and monetary policy will leave DXY on a sustained medium-term bear trend.”

This week, as we reported, the Bank of Japan has been signaling its readiness to take interest rates deeper into the negative territory. European Central Bank is also planning to keep the fiscal spending going in 2022.

Federal Reserve Chairman, Jerome Powell, also said on Wednesday that continued aggressive policy support is needed to fix the issues like the dour state of the US employment. Powell said in a speech to the Economic Club of New York,

“Despite the surprising speed of recovery early on, we are still very far from a strong labor market whose benefits are broadly shared.”

The Fed has signaled that it expects to hold rates near zero at least through 2023, and Powell repeated that the central bank’s $120 billion monthly paces of bond purchases commitment would also continue until “substantial further progress” is recorded on employment and inflation.

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Author: AnTy

47% of Nocoiner Brits Plan to Invest in Bitcoin This Year: Survey

47% of Nocoiner Brits Plan to Invest in Bitcoin This Year: Survey

While those invested, 74% plan to further increase. Also, 30% of coiners expect the BTC price to exceed $100,000 this year.

Brits remain bullish on Bitcoin, with 61% of respondents of the new survey saying they expect the value of BTC to rise above $60,000 this year.

The survey was conducted by uk.Investing.com with approximately 800 respondents, 58% of who invest in Bitcoin while 42% do not. 17% of the respondents believe $42,000 hit on Jan. 8 was the top of this bull cycle.

However, those who have invested in Bitcoin are particularly optimistic as the survey revealed 30% of them believe BTC price will exceed $100,000 per coin this year.

“After a record-breaking year in 2020 that saw it jump more than 300%, Bitcoin looks to stay strong in 2021 as more retail – and big-name institutional buyers – enter the market,” said Jesse Cohen, senior analyst at uk.Investing.com. “For those already in, the strategy in place remains to HODL.”

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According to Cohen, besides the first-time investors, the ultra-cheap money that is being pumped into the global financial system by the central banks all over the world has found its way into Bitcoin as well.

When it comes to other cryptocurrencies, 83% of investors expect the value of Ethereum (ETH) to rise this year, followed by Litecoin (LTC) by 35%, Bitcoin Cash (BCH) by 28%, and XRP by 25%.

Among the surveyed Bitcoin investors, 74% are planning to increase their HODLings this year, with the majority of them having only entered within the last three months.

As for those who do not currently invest in the cryptocurrency, 47% of them plan to do so this year — 26% plan to make a £1-£1,000 investment while 21% planning a £1,000 – £10,000 investment, reveals the survey.

For the majority of Brits, 53%, the new regulatory restrictions is the biggest threat to Bitcoin in 2021, followed by a pullback leading to a large off, at 26%.

However, 46% of the respondents trust Bitcoin and other cryptocurrencies “to some extent” while 18% do so “fully.”

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Author: AnTy

Hackers Have Been Stealing Crypto From Wallets for Over a Year with a New Malware

Hackers Have Been Stealing Crypto From Wallets for Over a Year with a New Malware Dubbed ‘ElectroRAT’

A new malware, dubbed ElectroRAT has been discovered by cybersecurity researchers at Intezer Labs; the remote access Trojan (RAT) targets crypto wallet users and has been operational for the past year according to the report published on Jan 5.

With crypto prices on a bullish trend, the market continues to be exposed to malicious attackers looking to drain funds from users’ wallets. This latest malware is said to have been embedded in three crypto apps built on Electron hence the pseudo ‘ElectroRAT’.

Under the Hood

Per the report, the apps in which the malware was hidden include Jamm, eTrade/Kintum, and DaoPoker. All these are crypto-oriented applications with the first two being trading apps, while DaoPoker was fronted as a gambling platform. Notably, the three applications were deployed for Linux, Mac, and Windows versions.

Intezer Labs researchers highlighted that the malware took longer to be detected since the apps were built from scratch, concealing the actual intention, which was to breach users’ crypto-wallets. The report describes ElectroRAT as extremely intrusive given its embedded functionalities. ElectroRAT has,

“Various capabilities such as keylogging, taking screenshots, uploading files from disk, downloading files, and executing commands on the victim’s console.”

This malware was written on the Golang programming language which made it even more difficult for malicious malware to be detected. Golang has become a favorite amongst malware authors given the complexity of analyzing projects written in this language; they tend to be more sophisticated than malware written in C#, C++, and C.

Level of Exposure

Intezer Labs estimated that thousands of users may have already been affected by the malware, although they might not be aware. According to additional evidence from the report, some of the victims are Metamask wallet users. This comes as no surprise given that the three apps sourced for marketing support and were able to advertise on popular crypto portals such as SteemCoinPan and Bitcointalk.

Cyber sec stakeholders who have commented on this development include Casa crypto custody CTO, Jameson Lopp, who said that such novel malware is to be expected in a bull market. He went on to caution crypto users against using wallets that store private keys on one’s desktop/laptop; instead, the ‘private keys should be stored on dedicated hardware devices’.

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Author: Edwin Munyui

With So Much Liquidity on the Sidelines, Bitcoin could Hit $100k This Year: Mike Novogratz

With So Much Liquidity on the Sidelines, Bitcoin could Hit $100k This Year: Mike Novogratz

Both Bitcoin and gold will go higher, said billionaire Mike Novogratz, the chief executive officer at Galaxy Investment.

Amidst the ongoing inflation expectations and other uncertainties in this market, “both gold and Bitcoin are going a lot higher, but gold could easily go up 30% this year,” said Novogratz in his interview with Bloomberg.

With things moving too fast in the market, Bitcoin has seen an uptrend of 113% since Dec. 11 to hit a new ATH at $37,700, it is difficult to pick a top. But these manias also means that Bitcoin could easily be “20% of gold,” Novogratz said adding,

“There is so much liquidity on the sidelines that a lot of people were hoping for a pullback on this. And you saw it lasted for about two hours and put right up. It’s why Bitcoin continues to go up every day.”

This is because “the Fed has made a commitment to keep rates at zero and to continue to buy quantitative easing for three years. And so it’s creating a bubble,” he said.

According to him, everything that keeps Chairman Powell keeping the money supply running as fast as it is is good for the markets which involve Democrats taking more seats in the Senate that comes with one of the big expectations of inflation.

As for Bitcoin hitting $100,000, Novogratz feels we can get there this year, “if we continue to see this kind of momentum.”

The Supply Crunch

With Bitcoin, the unique thing about it is that in most assets and commodities if the price goes up there’s a supply response. In the case of oil, if its price goes up we start drilling for oil all over the world, even in gold which has a limited supply if the price goes up, we spend more money on mining, explained Novogratz.

However, in the case of Bitcoin, there never will be more than 21 million BTC, no matter how high the price goes. He said,

“So we have this giant supply-demand imbalance where now institutions say dammit I can’t believe I don’t own Bitcoin yet. Insurance companies are buying it. Asset managers are buying it. High net worth people are buying it. And there’s not a lot of supply.”

But Novogratz believes “gold is going higher.”

The yellow metal is currently trading around $1,920 after reversing the downtrend on Nov. 30 that started once the bullion hit ATH at $2,050 in August last year.

And this is because “we are certainly in an acceleration of the worry about the basing of fiat currencies,” — it’s central banks printing money with 75% of all the dollars in circulation printed in the last 10 years, he said adding,

“That’s an incredible statistic. It broadly means that you know four times as many dollars as we did 10 years ago. That’s driving asset prices. And so this has hit this acceleration point.”

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Author: AnTy