Your Cryptocurrency Newsletter for 28 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]( [Bitcoin Prices Steady, a Day After 17% Plunge]( Bitcoin and other digital coins steadied Friday after posting some of the biggest declines since the onset of the pandemic, a selloff that stoked fresh questions about this year’s boom in cryptocurrencies.Bitcoin climbed above $17,400, following a slide of as much as 14% to $16,227 on Thursday. Fears over tighter crypto regulations and profit-taking after a frenetic rally were among the reasons cited for the tumble.After big rallies in shares and various other assets, they are all vulnerable to a bit of a pause,” said Shane Oliver, head of investment strategy at AMP Capital Investors Ltd. in Sydney. “But Bitcoin more than most, as it surged higher far more and had become far more frothy with speculative interest. The slump pared Bitcoin’s rally this year to about 140%, a climb that’s split opinion. Crypto believers tout a broadening investor base and the search for a hedge against dollar weakness amid loose monetary policy as reasons for a durable boom. Set against that is a history of big swings, including the run up to a record three years ago that was followed by a spectacular bust. Proponents of digital assets say the current focus on cryptocurrencies compared with 2017 is different because of growing institutional interest, for instance from the likes of Fidelity Investments and JPMorgan Chase & Co.Just this week, Van Eck Associates Corp. launched a Bitcoin exchange-traded note on the Deutsche Boerse Xetra exchange. In October, PayPal Holdings Inc. said it would allow customers access to cryptocurrencies. FOMO Others see signs of retail investors piling in to chase momentum for fast gains, storing up an inevitable reckoning. The rout in Bitcoin began just hours after it rose to within $7 of its record high of $19,511 set in December 2017.Concern about potential U.S. crypto rules help explain Thursday’s price drop across most major digital assets, said Ryan Rabaglia, global head of trading at OSL brokerage in Hong Kong.It’s also not unusual to see a short-term pullback following periods of significant, accelerated gains as traders look to take profits before resetting once volatility subsides,” he said. “Once the dust settles, we’re back to business as usual with all medium to long-term bullish indicators still in play. Bitcoin was little changed at about $17,190 as of 1:26 p.m. Friday in Tokyo, while Ether advanced 2.1% and XRP — which slumped about 20% Thursday — climbed 6.5%, according to prices compiled by Bloomberg.Profit-taking was inevitable and there are still factors in favor of Bitcoin as an asset class, according to Byron Goldberg in Sydney, who runs the Australian operations for Luno, the cryptocurrency exchange and trading platform.It continues to attract both institutional and retail attention as a 21st-century substitute to the gold play,” he said. Crypto ‘Whales’ A few large holders often referred to as whales own most Bitcoin. About 2% of the anonymous ownership accounts that can be tracked on the cryptocurrency’s blockchain control 95% of the digital asset, according to researcher Flipside Crypto. That structure points to the risk of big price swings if major investors offload some of their stakes.Bitcoin may be a victim of its own success,” said Michael McCarthy, chief market strategist at CMC Markets Plc in Sydney. “Traders suggested several large holders moved to lock in gains as the cryptocurrency reached for all-time highs.” AMP Capital’s Oliver said the depth of the recent plunge shows Bitcoin is “hardly a secure store of value,” adding it may be vulnerable if Covid-19 vaccines lead to a sharp global recovery next year.Money printing and the debasement of paper currencies that Bitcoin enthusiasts are seeking to protect against may start to fade as an issue,” Oliver said. [Read Full News]( The post [Bitcoin Prices Steady, a Day After 17% Plunge]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [Bitcoin and Blockchain Topics to Discuss with the Crypto Curious this Thanksgiving]( Experts explain how to address common questions newcomers may have regarding bitcoin and the blockchain space.With Bitcoin’s (BTC) recent price movements drawing fresh attention to the blockchain industry, conversations centered around cryptocurrency have once again begun to see an uptick. Google Trends data shows that searches for the term “Bitcoin” have increased to yearly highs following the asset’s rally above $19,000. Given the current circumstances, discussion centered around Bitcoin, general questions about blockchain and cryptocurrencies may come up at the Thanksgiving table. Yet while the crypto community has a lot to be thankful for this year, newcomers and the crypto curious may want to know more about the space than just the price of Bitcoin. With this in mind, leading experts shared some ways to explain certain Bitcoin and blockchain topics to friends and family this holiday. Explaining Bitcoin as a currency If you’ve ever ventured down the crypto rabbit hole, there is a good chance that your friends and family will ask you about Bitcoin and its function as a currency.Tim Draper – the famous venture capitalist and legendary Bitcoin investor – told Cointelegraph that it’s best to let crypto newcomers know that Bitcoin is a trusted currency that isn’t subject to government control. “Bitcoin isn’t subject to the whims of a government that will freely flood the market with 13 trillion of them, diluting yours,” he said. Draper further mentioned that retailers who accept Bitcoin don’t have to pay between 2% to 4% each time a debit card is swiped. Lower transaction fees are indeed one of the main benefits for retailers that accept cryptocurrency. According to findings from research firm Forrester and BitPay – a Bitcoin payment service provider – retailers that accept cryptocurrencies via BitPay only pay a 1% fee on purchases. The report states, “The composite merchant avoids 2.25% in transaction fees (based on primarily US rates) for every transaction completed using BitPay.” Additionally, Draper mentioned how important it is that Bitcoin is borderless: Bitcoin can travel without restrictions from country-to-country. It’s also easier to send money quickly from anywhere in the world with Bitcoin. And with Bitcoin wallets and smart contracts, all the right people will be paid the right amount for their participation in a Hollywood movie, for example, even if the payments are worth fractions of a penny.The borderless nature of Bitcoin is extremely important, especially in countries suffering from high inflation rates and economic turmoil. For example, in countries like Argentina the demand for Bitcoin is on the rise as foreign debt accumulates. Explaining why the price of Bitcoin is rising While Bitcoin and other cryptocurrencies are volatile by nature, many tend to think that crypto market prices are based purely on supply and demand. However, this is only part of the equation.Bill Barhydt, the CEO of Abra — a peer-to-peer payments platform that supports over 70 cryptocurrencies — told Cointelegraph that the price of Bitcoin is currently going up because the supply is being outpaced by demand. However, Barhydt noted that Bitcoin’s price is also being influenced by institutional interest:On the institutional side we have Grayscale that is taking in insane amounts of capital. Not to mention major hedge fund players announcing exposure to Bitcoin in their portfolios. This is something I said would happen this year. Barhydt further noted that retail interest is growing and therefore the price of Bitcoin is increasing. For example, one of the most notable wins for crypto this year has been PayPal’s announcement of support for the technology. “The bottom line is that this combination of retail and institutional buying is eating up the supply of Bitcoin at an accelerating rate,” Barhydt said. Explaining the difference between blockchain and cryptocurrencies Oftentimes there is confusion regarding the differences between blockchain and cryptocurrencies when discussing the topic with newcomers.Alistair Rennie, IBM Blockchain’s general manager, told Cointelegraph that the main difference between blockchain and cryptocurrency is that blockchain is a technology underpinning cryptocurrency, while cryptocurrency is a monetary asset. Rennie further mentioned that blockchain as a technology enables trust to be established and maintained among different parties. According to Rennie, this is possible due to the unique capabilities of blockchain to independently verify data for everyone involved with a transaction. As such, this makes blockchain useful for solving business problems outside of the cryptocurrency realm. Rennie explained:Blockchain acts as an immutable record-keeping system to store information such as a user’s account balance. Unlike traditional databases though, multiple (encrypted) copies of the database are shared among users so that any changes are immediately apparent. This makes it incredibly hard for someone with malicious intent to tamper with the data. Due to blockchain’s unique capabilities, Rennie noted that all users can look towards the blockchain as a single source of truth. In addition, he pointed out that blockchains never rely on third-parties to mediate transactions, giving users more control over their data and who is allowed to see it. “Blockchain has numerous uses beyond cryptocurrency where trust and data accuracy are important,” he remarked. In regards to cryptocurrency, Barhydt of Abra told Cointelegraph that it’s best to explain cryptocurrencies as the idea of decentralized software based systems for storing and moving value between people or entities. “Decentralized means that no one owns it, there is no centralized or trusted third party required in the middle of any transaction and there is no off switch except for the Internet itself,” he said.In the case of Bitcoin and its blockchain network, Barhydt noted that blockchain helps address the double spend problem, ensuring that individuals cannot spend or send the same Bitcoin more than once. “A blockchain represents an immutable database of transactions throughout a cyrpotcurrency’s history,” he elaborated. Crypto is slowly but surely gaining traction A key thing worth mentioning this Thanksgiving is that cryptocurrency appears to be headed towards mainstream adoption. Recent statistics show that over 55 million crypto wallets have been created. It’s also been reported that millions of dollars have been spent using crypto debit cards. Moreover, PayPal’s recent support for cryptocurrency could help bring digital currencies to the masses. PayPal chief executive Dan Schulman stated during an interview with CNBC that cryptocurrencies will eventually go mainstream as businesses and consumers flock to digital payments and digital forms of currency. Schulman also pointed out that the COVID19 pandemic has led to a decline in cash payments, noting that “40 to 70% of consumers no longer want to handle cash. [Read Full News]( The post [Bitcoin and Blockchain Topics to Discuss with the Crypto Curious this Thanksgiving]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [Bitcoin’s Record Run Over Seven Weeks Makes a Sharp U-turn but Experts Call it a Healthy Correction]( Just as Bitcoin fans were gunning for a record-breaking high, the cryptocurrency came tumbling down. The cryptocurrency fell nearly $3000 on Thursday, a day after hitting $19,300 and was inches away from its 2017 high of $19,783.Bitcoin prices have been on a tear in 2020, with a record run for 119 days. It has surged over 293% since March 2020. On Thursday, Bitcoin’s worth crashed to $16,277 and has seen some recovery. It currently stands at $17,309. The rally was triggered as institutional investors gained faith in the cryptocurrency asset as it garnered interest from marquee investors as well as PayPal accepting cryptocurrency on its platform. Bitcoin’s bull run had also resulted in overbought level conditions with other top cryptocurrencies as well. However, bitcoin experts have called it a healthy correction. “A few days back, Bitcoin broke through $19,000 after posting seven weeks of consecutive gains. This resulted in the need for a correction, and we witnessed a healthy pullback in the crypto market, including Bitcoin. This pullback is important for the overall health of the market, and I am expecting Bitcoin to consolidate from here over the next few weeks, and we are likely to see Bitcoin testing the support of around $14000,” Sumit Gupta, CEO and Co-founder CoinDCX told Business Insider. Even before the fall in prices, experts had said it would be foolish to believe that there would be no correction. When Bitcoin touched $19,000, Vikram Rangala, Chief Marketing Officer at ZebPay, had said that no one could predict how far a rally can go, so short-term speculation is very risky. “However, there is one smart investment strategy: cost averaging for the long term. Buy small amounts of bitcoin daily or weekly, hold it long-term through the ups and downs, and stick to your buying plan for years, not months. It’s like an SIP for bitcoin. No one knows how far this rally will go, but at some point, there is always a correction. Anyone who pretends to know more than this is fooling himself or others,” said Rangala. Rangala said that along with periodic corrections, Bitcoin could easily hit ₹1 crore by 2030, and investors should plan their bitcoin investments by years and not months. [Read Full News]( The post [Bitcoin’s Record Run Over Seven Weeks Makes a Sharp U-turn but Experts Call it a Healthy Correction]( first appeared on [Feed Binary](. 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