Your Cryptocurrency Newsletter for 04 November,2020

If you are interested in cryptocurrencies, this newsletter is for you. [img]  [Learn more about RevenueStripe...](   [Learn more about RevenueStripe...]( [img]( [FeedBinary Newsletter]( [The 2020 Elections Are Boosting Crypto Prediction Markets]( In just over three weeks, the trading volume on decentralized betting platform Polymarket went from zero to almost $3 million. As of Monday, Polymarket’s “Will Trump win the 2020 U.S. presidential election?” had over $2.8 million worth of bets placed, with each bet (for possible answers “yes” or “no”) costing less than a dollar. The platform allows users to place crypto bets on highly-debated current events and public topics including politics, pop culture, business and health, according to its website. Polymarket is a non-custodial platform, meaning it does not hold or store user-funds, and bets can be placed in the dollar-backed stablecoin USDC. Prediction markets, where users can bet on the outcome of future events, are a key application of decentralized finance (DeFi), which allows users to conduct financial transactions on a blockchain without a middleman.Elections and political debates attract high numbers of traders to these platforms; decentralized prediction platform Augur launched five years ago, but struggled to take off until U.S. midterm election betting gave it a modest push in 2018. “To me, the presidential election is the Super Bowl for prediction markets. Every single one is experiencing a massive uptick in volume. It’s only natural that crypto follows suit,” David Liebowitz, vice president of business development at decentralized encyclopedia Everipedia, told CoinDesk via Telegram.  There are people who are using it, who aren’t even crypto native users. They don’t even fully understand crypto but they’re still using Polymarket,” said Shayne Coplan, founder of Polymarket.Just over a week ago, Polymarket announced it had secured $4 million in its latest round of funding, attracting high profile investors from the industry. Augur launched its new and improved Version 2 in July of this year. After Elections Users are looking at a number of betting and prediction markets in the runup to Tuesday’s election. Anonymous crypto betting platform YieldWars launched its election battle last night and has since attracted over $50,000 in bets. Users can stake either the platform’s native $WAR token or $ETH. YieldWars’ co-founder, who goes by Owl, told CoinDesk via Telegram that the sudden rise in volume is far from shocking given the scale and importance of the election. Crypto-based prediction markets should be flourishing on blockchain right now but have failed to deliver up to this point. The election has breathed life into prediction markets but what is going to happen when it ends? Are people going to be as enthusiastic about them?” Owl said. Owl also said YieldWars may have found the “secret sauce” to keep people interested in betting, by creating Battle Royale-style tournaments for betting, ideal for sporting events. The election face-off is a one-time battle, where two pools are running simultaneously, one in each currency. The platform has partnered with Everipedia to use Associated Press (AP) election data for resolving its election betting market.In October 2020, the reputed wire-service AP, in a first, partnered with Everipedia to create Oracle, an immutable record of 2020 election results on a blockchain.  I don’t think there could be a more trusted source than the AP and seeing that the Oracle was built using Chainlink infrastructure, it was only logical to go with this option,” Owl said.  According to Liebowitz, blockchain has long been viewed as the best platform for prediction markets to thrive. But centralized betting platforms like PredictIt are still leading the game.PredictIt has 214 “markets” or betting scenarios compared to the new-kid-on-the-block Polymarket’s 19 markets. As of Monday, PredictIt’s top event “2020 Presidential Election Winner?” had 116.7 million shares traded. Coplan declined to say how that compared to Polymarket, calling it a “bizarre metric” adding his platform only tracked dollar-trading volumes, and it did not have an equivalent.Then, there is the expectation that elections will boost betting volumes. It’s only going to get bigger from here, especially four years from now when the next election comes around,” Liebowitz said. According to Coplan, the demand for blockchain-based betting markets has always been there. It was just clear that there was a lot of demand for this. I would say, the past week or two, the demand has actually materialized. Still, these are just the very early days,” Coplan said. [Read Full News]( The post [The 2020 Elections Are Boosting Crypto Prediction Markets]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [Is Bitcoin Worth Investing In?]( The price per bitcoin reached a new 52-week high on the news that digital payments giant PayPal Holdings (ticker: PYPL) would allow customers to trade bitcoins and other cryptocurrencies.According to Ian Balina, founder of cryptocurrency intelligence company Token Metrics, Bitcoin is the greatest investment opportunity of our generation. Other major businesses such as Microsoft Corp. (MSFT), Overstock.com (OSTK) and AT&T (T) accept bitcoin as payment, demonstrating a sign of broader adoption. If Bitcoin is indeed here to stay, investors should know if it’s worth jumping on the bandwagon now. Below you’ll find the history, supply and demand, and other factors that influence current and future bitcoin price movements: - The history of Bitcoin. - Bitcoin versus other assets. - Understanding the cryptocurrency market. - Reasons to consider buying. - The bottom line: Investing in Bitcoin. The History of Bitcoin Bitcoin began on a computer in 2008 during the last financial crisis.Satoshi Nakamoto, a pseudonym, is regarded as the founder of Bitcoin. It was developed as a decentralized, digital currency free from governmental oversight. The cryptocurrency is stored on a computer and sent between users across a network without the need for an institution or government intermediary.During its first year, miners or computers involved in cryptocurrency creation traded bitcoins for fun. The first bitcoin payment occurred in Florida on May 22, 2010, when a man bought two Papa John’s pizzas worth $25 for 10,000 bitcoins. At that point, four bitcoins equaled one penny. As of November 3, 2020, one bitcoin is worth around $13,688.70 – which means the bitcoins used to buy those two pizzas would now be worth nearly $137 million.Since then, many types of cryptocurrencies have been created, all with varying degrees of success. This expanded the code behind Bitcoin’s blockchain – a digital ledger for recording transactions – and enabled other uses for the technology.Bitcoin’s price has exploded during the past six years from $333.60 on November 3, 2014 to a peak value of around $19,140.80 on December 17, 2017. Of course, the cryptocurrency has fallen far from its peak to where it is today. This price volatility, along with increasing competition and limited adoption, raises the question of whether Bitcoin is worth investing in. Bitcoin vs. Other Assets There is an abundance of positive sentiment around Bitcoin right now.Some investors compare Bitcoin to gold as a potential store of value as it increases in relative worth against both the U.S. dollar and gold.Unlike fiat currencies, Bitcoin cannot be hyperinflated. Its blockchain is coded so that there will never be more than 21 million bitcoins in existence, and there are approximately 2.8 million left to mine,” says Steve Ehrlich, CEO and co-founder at Voyager Digital in Stamford, Connecticut. The price of this crypto asset should rise as demand outstrips supply, and total supply is capped. The allure of investing in Bitcoin is underscored by well-known firms buying and accepting digital assets. At the beginning of October, Square (SQ) bought 4,709 bitcoins for $50 million, or $10,617.97 per coin, while PayPal announced its intention to integrate the cryptocurrency into its platform in 2021 later that month. Understanding the Cryptocurrency Market Just because bigger players are joining the Bitcoin party doesn’t mean that ordinary investors should buy in. Knowing the risks of any investment is as important as grasping potential gains.Ulrik Lykke, executive director at cryptocurrency hedge fund ARK36, echoes a well-known mantra: “Invest in assets that you understand.” Before investing, Lykke recommends performing your due diligence and understanding how Bitcoin works. The internet is replete with cryptocurrency educational resources. Reasons Why Bitcoin Is Worth Investing In There are many reasons to invest in Bitcoin after understanding the market and risks.Anthony Denier, CEO of Webull Financial, considers digital assets like bitcoins to be useful for portfolio diversification. Specifically, less correlated assets are known to help overall investment returns.In the case of Bitcoin, Denier joins the ranks of those who consider this crypto asset to be a hedge against inflation and geopolitical uncertainty. He calls it “this generation’s liquid gold.” As Bitcoin becomes more widely accepted as a method of payment, it gains acceptance as a legitimate asset class. High-net-worth investors are dipping their toes into cryptocurrency investing, says Sathvik Vishwanath, CEO at Unocoin, an open-source, decentralized digital currency and payment network. With low interest rates and global macroeconomic uncertainty along weighed against cryptocurrency outperformance, the wealthy are becoming more comfortable with the asset.Brian Estes, chief investment officer at Off the Chain Capital, adds another reason to buy Bitcoin now. Estes claims that the best time to own this crypto asset is in the 12 to 18 months after a bitcoin halving – when the pace of bitcoin creation is cut in half. Since the most recent halving was in May 2020, he believes that now is a good time to invest. Bottom Line: Bitcoin Investing Bitcoin evangelists are on board with the cryptocurrency’s benefits, but like any investment, there are also risks.Bitcoin might have a rosy future, but imagine if you had purchased it on December 17, 2017 for $19,140.80 per bitcoin. Your investment would have lost money during the subsequent three years. At the recent price of $13,688.70 per coin, your three-year investment declined by 28.48%. When investing, it’s wise to buy low and sell high – but Bitcoin is difficult to value. It’s volatile and lacks the dividend payments of many stocks and bonds. Actually, supply and demand may be among the major factors in its valuation.If you think Bitcoin is a good investment for you, consider its risk-to-reward profile and do your homework before investing. [Read Full News]( The post [Is Bitcoin Worth Investing In?]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [Bitcoin Whales Tread Water and Hodl Despite Recent BTC Price Drop]( Various on-chain data shows that Bitcoin whales are holding onto their funds and have little interest in selling in the short term.The price of Bitcoin (BTC) is experiencing a volatile time. After achieving $14,100 for the first time since 2017, a sharp pullback followed. Yet, key on-chain data and whale clusters show that high-net-worth individual investors are holding onto their positions.This trend shows that whales are not expecting a major pullback in the near term. A low level of activity from whales is a positive metric following a large uptrend. It shows that whales are not interested in selling BTC just yet and are likely anticipating a broader rally.In the near term, the support areas of Bitcoin are found at $12,900 and $13,300. The stability of the dominant cryptocurrency above the two levels despite various macro factors is an optimistic trend. The United States election is ongoing, and while BTC saw a 4% drop, it has been relatively resilient. Investors seem confident Two key on-chain indicators show that whales and retail investors, in general, are not actively selling Bitcoin. First, the BTC estimated leverage ratio shows that trades in the derivatives market are not decreasing. This shows that investors are not proactively closing their positions or trades amid the uncertainty around the U.S. presidential election.However, after the election results come out, the high BTC estimated leverage ratio poses a risk of increased volatility. Ki Young Ju, CEO of CryptoQuant, told Cointelegraph: “The BTC Estimated Leverage Ratio on derivative exchanges is increasing till the election day. It might cause high volatility on BTC price due to cascade liquidations.” The term “cascading liquidations” refers to a situation where futures contracts get liquidated consecutively in a short period. As an example, if short-sellers are increasingly betting against Bitcoin, yet BTC price increases, it can cause shorts to be liquidated one after another. When that happens, it causes cascading liquidations, causing volatility to surge. Second, there are fewer whales selling on exchanges in the U.S. that are typically used by whales, such as Coinbase Pro and Gemini. According to data from CryptoQuant, there is a low inflow of Bitcoin into exchanges in the U.S., meaning there is a lower risk of short-term selling from whales in the foreseeable future. Ju explained:Whales in US spot exchanges are not active for now. Spot Exchanges’ Inflow Mean is the average amount of bitcoin deposited on the spot exchanges, including US exchanges such as Coinbase Pro, Gemini, Bittrex, and others. It’s helpful to see the short-term dumping risk of whales.inflows into U.S. exchanges suddenly spiked over the danger zone. As soon as they did, Bitcoin fell steeply in a short period. Throughout the past two weeks, exchange inflows have been considerably below the danger zone. This decreases the probability of an abrupt correction in the near term. Whale clusters show that Bitcoin is oversold Whalemap found that there are two technical levels in the near term that serve as important areas. Based on whale clusters, the $12,987 and $13,650 levels are critical. Whale clusters form when newly purchased BTC stays in place. Clusters show areas where whales bought Bitcoin previously and are often considered to be support levels. Because the price of Bitcoin is hovering below $13,650 as of Nov. 3, reclaiming $13,650 and staying above it would confirm it as a support level. Hence, in the short term, rising past $13,650 is important for buyers to continue the rally. Bitcoin has established a positive technical trend in the past week by defending the $13,000 macro support area. As long as BTC remains above the $13,000–$13,500 range, the short-term bull trend is intact. In technical terms, Whalemap explained that the daily chart of Bitcoin indicates the cryptocurrency is oversold. The relative strength index, or RSI, is an indicator that measures the momentum of Bitcoin and whether it’s overbought or oversold. On the daily candle log chart, the RSI shows BTC is currently oversold, Whalemap said. “Monthly candle sweeped 2019’s high and closed below it. Blue areas [$16,000] signify important macro fibs. I am expecting big guys to be taking profits there.” Based on the daily chart, the $13,000–$14,000 range is an area of interest to sellers. As such, if Bitcoin remains stable above $13,000 and reclaims $14,000, the next resistance level is $16,000. For the short-term bull case of BTC to strengthen, the daily chart marking a close above $14,000 is critical in the month of November. If that occurs, as in December 2017, BTC could hit a new all-time high in December. Two major variables to the short-term price trend of Bitcoin Since mid-October, Bitcoin miners have increasingly sold large amounts of Bitcoin. During the rainy season in northern China, which usually begins during the fall, miners increase their capacity to take advantage of cheaper electricity. Because areas like Sichuan rely on hydropower, the rainy season results in lower electricity costs. But when the rainy season comes to an end, many miners abruptly stop mining BTC. miners have sold a lot of Bitcoin in the past week. In the last seven days, there was a miner net-inventory change of negative 1,060 BTC, meaning miners have sold 1,060 BTC more than they have mined, placing significant selling pressure on the market. Consequently, Bitcoin saw its second-biggest negative mining difficulty adjustment change in history as miners stopped mining BTC en masse. Glassnode wrote:We just observed the 2nd largest negative #Bitcoin mining difficulty adjustment in history: -16%. It topped the -15.9% change in March this year. The only other time difficulty saw a larger downwards adjustment (-18%) was over 9 years ago, in Oct 2011. There is a possibility that the lower selling pressure coming from miners could allow the momentum of Bitcoin to strengthen. Atop the likely drop in miners selling BTC, the U.S. election will start having more of an impact. Analysts, including Alex Krüger, have said that a Democratic sweep of Congress or the election of Joe Biden would likely buoy the sentiment around Bitcoin. If Biden is elected, Krüger said that gold, Bitcoin and safe-haven assets would likely increase in value on the back of significant uncertainty in the stock market, which would brace for additional regulation and potentially higher tax rates.If President Donald Trump gets reelected, it would cause risk-on assets to rally, which might cause BTC to surge in tandem as well. Barry Silbert, CEO of Grayscale — a cryptocurrency investment firm — said that both a Trump or a Biden win would benefit Bitcoin. [Read Full News]( The post [Bitcoin Whales Tread Water and Hodl Despite Recent BTC Price Drop]( first appeared on [Feed Binary](. 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